# EDGAR Filing Document

**Accession Number:** 0002052053
**File Stem:** 0001213900-26-013864
**Filing Date:** 2026-2
**Character Count:** 1044442
**Document Hash:** 172f71edd2ca9d558fd1518f9625b459
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-013864.hdr.sgml**: 20260210

**ACCESSION NUMBER**: 0001213900-26-013864

**CONFORMED SUBMISSION TYPE**: N-2/A

**PUBLIC DOCUMENT COUNT**: 28

**FILED AS OF DATE**: 20260210

**DATE AS OF CHANGE**: 20260209

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Powerlaw Corp.
- **CENTRAL INDEX KEY:** 0002052053

**ORGANIZATION NAME:**
- **EIN:** 995014073
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-2/A
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-24121
- **FILM NUMBER:** 26613150

**BUSINESS ADDRESS:**
- **STREET 1:** 6635 S DAYTON STREET
- **STREET 2:** SUITE 310
- **CITY:** GREENWOOD VILLAGE
- **STATE:** CO
- **ZIP:** 80111
- **BUSINESS PHONE:** 707-653-6892

**MAIL ADDRESS:**
- **STREET 1:** 6635 S DAYTON STREET
- **STREET 2:** SUITE 310
- **CITY:** GREENWOOD VILLAGE
- **STATE:** CO
- **ZIP:** 80111

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PowerLaw10, LLC
- **DATE OF NAME CHANGE:** 20250114
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Powerlaw Corp.
- **CENTRAL INDEX KEY:** 0002052053

**ORGANIZATION NAME:**
- **EIN:** 995014073
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-2/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290337
- **FILM NUMBER:** 26613149

**BUSINESS ADDRESS:**
- **STREET 1:** 6635 S DAYTON STREET
- **STREET 2:** SUITE 310
- **CITY:** GREENWOOD VILLAGE
- **STATE:** CO
- **ZIP:** 80111
- **BUSINESS PHONE:** 707-653-6892

**MAIL ADDRESS:**
- **STREET 1:** 6635 S DAYTON STREET
- **STREET 2:** SUITE 310
- **CITY:** GREENWOOD VILLAGE
- **STATE:** CO
- **ZIP:** 80111

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PowerLaw10, LLC
- **DATE OF NAME CHANGE:** 20250114

?xml version='1.0' encoding='ASCII'?

**As filed with the Securities and Exchange Commission on February 10, 2026**

**Securities Act File No. 333-290337**

**Investment Company Act File No. 811-24121**

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM N-2**

**REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ☒**

**Pre-Effective Amendment No. 2 ☒**

**Post-Effective Amendment No. ___ ☐**

**And**

**REGISTRATION STATEMENT UNDER THE**

**INVESTMENT COMPANY ACT OF 1940 ☒**

**Amendment No. 2 ☒**

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**Powerlaw Corp.**

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**631 Folsom Street Ste A & B**

**San Francisco, California, 94107-3850**

**(Address of Principal Executive Offices)**

**(707) 653-6892**

**(Registrant's Telephone Number, including Area Code)**

**Michael Dinsdale 631 Folsom Street Ste A & B**

**San Francisco, California, 94107-3850 (Name and Address of Agent for Service)**

 ****

***WITH COPIES TO:* Steven B. Boehm, Esq. Owen J. Pinkerton, Esq. Krisztina Nadasdy, Esq. Eversheds Sutherland (US) LLP 700 Sixth Street, NW Washington, DC 20001 Tel: (202) 383-0100 Fax: (202) 637-3593**

**THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE U.S. SECURITIES AND EXCHANGE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(A), MAY DETERMINE.**

**Approximate date of proposed public offering:** As soon as practicable after the effective date of this Registration Statement.

Check box if the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans. ☐

Check box if any securities being registered on this Form will be offered on a delayed or continuous basis in reliance on Rule 415 under the Securities Act of 1933 (the "Securities Act"), other than securities offered in connection with dividend or interest reinvestment plans. ☒

Check box if this Form is a registration statement pursuant to General Instruction A.2 or a post-effective amendment thereto. ☐

Check box if this Form is a registration statement pursuant to General Instruction B or a post-effective amendment thereto that will become effective upon filing with the Commission pursuant to Rule 462(c) under the Securities Act. ☐

Check box if this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction B to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act. ☐

It is proposed that this filing will become effective (check appropriate box):

☐&nbsp;&nbsp;&nbsp;&nbsp; when declared effective pursuant to section 8(c) of the Securities Act.

Check each box that appropriately characterizes the Registrant:

☒&nbsp;&nbsp;&nbsp;&nbsp; Registered Closed-End Fund (closed-end company that is registered under the Investment Company Act of 1940 (the "Investment Company Act")).

☐&nbsp;&nbsp;&nbsp;&nbsp; Business Development Company (closed-end company that intends or has elected to be regulated as a business development company under the Investment Company Act).

☐&nbsp;&nbsp;&nbsp;&nbsp; Interval Fund (Registered Closed-End Fund or a Business Development Company that makes periodic repurchase offers under Rule 23c-3 under the Investment Company Act).

☐&nbsp;&nbsp;&nbsp;&nbsp; A.2 Qualified (qualified to register securities pursuant to General Instruction A.2 of this Form).

☐&nbsp;&nbsp;&nbsp;&nbsp; Well-Known Seasoned Issuer (as defined by Rule 405 under the Securities Act).

☐&nbsp;&nbsp;&nbsp;&nbsp; Emerging Growth Company (as defined by Rule 12b-2 under the Securities Exchange Act of 1934).

☐&nbsp;&nbsp;&nbsp;&nbsp; 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.

☒&nbsp;&nbsp;&nbsp;&nbsp; New Registrant (registered or regulated under the Investment Company Act for less than 12 calendar months preceding this filing).

**The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the U.S. Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

**SUBJECT TO COMPLETION, DATED FEBRUARY 9, 2026**

**PRELIMINARY PROSPECTUS**

**Powerlaw Corp.**

43,242,931 Shares of Common Stock

This prospectus (the "Prospectus") relates to the registration of the resale of up to 43,242,931 shares of common stock of Powerlaw Corp. (the "Fund") by the stockholders identified in this Prospectus (the "Selling Stockholders"). We have applied to list our common stock on The Nasdaq Global Market (the "Exchange") under the symbol "PWRL." The listing of our shares must be approved by the Exchange prior to any trading of our shares on the Exchange. Unlike an IPO, the resale by the Selling Stockholders is not being underwritten by an investment bank. A Selling Stockholder may, or may not, elect to sell its shares of common stock covered by this Prospectus, as and to the extent such Selling Stockholder may determine. Sales made by the Selling Stockholders, if any, will be made through brokerage transactions on the Exchange at prevailing market prices. See "Plan of Distribution." If a Selling Stockholder chooses to sell its shares of common stock, we will not receive any proceeds from the sale of shares of common stock by the Selling Stockholder.

No established public trading market for our common stock currently exists and shares of our common stock have no history of trading in private transactions.

On the day that our shares of common stock are initially listed on the Exchange, the Nasdaq Stock Market LLC ("Nasdaq") will begin accepting, but not executing, pre-opening buy and sell orders and will begin to continuously generate the indicative Current Reference Price (as defined below) on the basis of such accepted orders. During a 10-minute "Display Only" period, market participants may enter quotes and orders in shares of our common stock in Nasdaq's systems and such information is disseminated, along with other indicative imbalance information, to Stifel, Nicolaus & Company, Incorporated ("Stifel"), and other market participants (including the other financial advisors) by Nasdaq on its NOII and BookViewer tools. Following the "Display Only" period, a "Pre-Launch" period begins, during which Stifel, in its capacity as our designated financial advisor to perform the functions under Nasdaq Rule 4120(c)(8), must notify Nasdaq that our shares are "ready to trade." Once Stifel has notified Nasdaq that our shares of common stock are ready to trade, Nasdaq will calculate the Current Reference Price (as defined below) for our shares of common stock, in accordance with the Nasdaq's rules. If Stifel then approves proceeding at the Current Reference Price, Nasdaq will conduct price validation checks in accordance with Nasdaq rules. As part of conducting its price validation checks, Nasdaq may consult with Stifel and other market participants (including the other financial advisors). Upon completion of such price validation checks, the applicable orders that have been entered will then be executed at such price and regular trading of our shares of common stock on the Nasdaq Global Market will commence. Under the Nasdaq rules, the "Current Reference Price" means: (i) the single price at which the maximum number of orders to buy or sell our shares of common stock can be matched; (ii) if more than one price exists under clause (i), then the price that minimizes the number of our shares of common stock for which orders cannot be matched; (iii) if more than one price exists under clause (ii), then the entered price (i.e. the specified price entered in an order by a customer to buy or sell) at which our shares of common stock will remain unmatched (i.e. will not be bought or sold); and (iv) if more than one price exists under clause (iii), a price determined by Nasdaq after consultation with Stifel, Stifel will exercise any consultation rights only to the extent that it may do so consistent with the anti-manipulation provisions of the federal securities laws, including Regulation M (to the extent applicable), or applicable relief granted thereunder. The registered stockholders will not be involved in Nasdaq's price-setting mechanism, including any decision to delay or proceed with trading, nor will they control or influence Stifel in carrying out their roles as financial advisors. Stifel will determine when our shares of common stock are ready to trade and approve proceeding at the Current Reference Price primarily based on consideration of volume, timing, and price. In particular, Stifel will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to open trading at the Current Reference Price. For more information, see the section titled "Plan of Distribution."

We were organized as PowerLaw10, LLC, a Delaware limited liability company, on September 9, 2024. Effective September 5, 2025, we converted from a Delaware limited liability company to a Maryland corporation under the name Powerlaw Corp. Akkadian CEF Manager, LLC, a Delaware limited liability company is our investment adviser (the "Adviser") and manages our investments subject to the supervision of our board of directors (the "Board" and each member a "Director"). On December 23, 2025, after obtaining the approval of stockholders, the Board approved and executed a reverse stock split whereby every twelve shares of common stock was changed into one share of common stock (the "Reverse Stock Split"). After the completion of the Reverse Stock Split, there were 43,242,931 shares of common stock outstanding.

We are a newly organized, externally managed, non-diversified closed-end management investment company that is registered as an investment company under the Investment Company Act of 1940, as amended (the "1940 Act"). We intend to elect to be treated, and to qualify annually, as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code"), for U.S. federal income tax purposes beginning with our taxable year ending September 30, 2026. As a registered investment company and a RIC, we will be required to comply with certain regulatory requirements.

Our investment objective is long-term capital appreciation. We seek to achieve our investment objective by investing in a concentrated portfolio of approximately 15 late-stage technology companies (our "Portfolio Companies"). In order to achieve exposure to Portfolio Companies, we will take a structure-agnostic approach to investing, and invest directly in the equity securities of Portfolio Companies, or invest indirectly through "equity-linked securities" such as forward contracts for future delivery of stock, swaps or other synthetic equity agreements, and purchases of units or other ownership of limited liability companies, limited partnerships, or other special purpose vehicles ("SPVs") that serve to provide us with financial exposure to the equity of a Portfolio Company. Our indirect financial exposure will (a) rely upon the Fund's contractual rights to the underlying Portfolio Companies' securities or the Fund's indirect ownership of the underlying Portfolio Companies' securities via an interest in an SPV and (b) not provide for the direct ownership of the Portfolio Companies' securities via their issuance directly to the Fund. In addition, we may purchase units or shares of private funds, including venture funds and private equity funds (each, a "Private Fund"), to gain direct and indirect economic exposure to private companies in the technology sector. We will seek to deploy capital primarily in the form of non-controlling equity and equity-linked investments in Portfolio Companies. See "Prospectus Summary – Investment Strategy and Types of Investments."

**Investing in our common stock involves a high degree of risk and is highly speculative. Before buying any shares of our common stock, you should read the discussion of the material risks of investing in our common stock in the "Risk Factors" section beginning on page 19 of the Prospectus. In addition, investors should observe the following:**

● **Shares of closed-end investment companies frequently trade at a discount to their net asset values ("NAV").** 

● **If shares of our common stock trade at a discount to our NAV, investors will face increased risk of loss.** 

● **We do not anticipate that we will pay distributions on a quarterly basis or become a predictable distributor of distributions, and we expect that our distributions, if any, will be less consistent than the distributions of other registered investment companies that primarily make debt investments.** 

● **There are significant potential risks associated with investing in late-stage technology companies that have complex capital structures, including limited financial resources, limited operating histories, limited publicly available information, dependence on management and talent efforts of a small group of people and the increased likelihood of unexpected problems in areas of product development, manufacturing, marketing, financial and general management. See "Risk Factors – Risks Associated with Our Investments. *"*** 

● **As part of our business strategy, we may borrow from and issue senior debt securities to banks, insurance companies and other lenders or investors. This constitutes leverage and may magnify the potential for gain or loss and may increase the risk of investment in our common stock. See "Risk Factors – Risks Related to Leverage."** 

This Prospectus contains important information you should know before investing in our common stock. Please read this Prospectus before investing and keep it for future reference. We will also file periodic and current reports, proxy statements and other information about us with the U.S. Securities and Exchange Commission (the "SEC"). This information is available free of charge by contacting us at c/o Powerlaw Corp., 631 Folsom Street Ste A & B, San Francisco, California, 94107-3850, calling us at (707) 653-6892 or visiting our website located at www.pwrl.com. Information on our website is not incorporated into or a part of this Prospectus. The SEC also maintains a website at http://www.sec.gov that contains this information.

**Neither the SEC nor any state securities commission has approved or disapproved of these securities or determined if this Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

The date of this Prospectus is _________, 2026

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| **Page** |  |
| [PROSPECTUS SUMMARY](#KJ_001) | 4 |
| [FEES AND EXPENSES](#KJ_002) | 14 |
| [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#KJ_003) | 15 |
| [THE FUND AND OUR CURRENT PORTFOLIO](#KJ_004) | 15 |
| [USE OF PROCEEDS](#KJ_005) | 19 |
| [RISK FACTORS](#KJ_006) | 19 |
| [DISTRIBUTIONS](#KJ_007) | 37 |
| [THE FUND'S INVESTMENTS](#KJ_008) | 38 |
| [MANAGEMENT OF THE FUND](#KJ_009) | 45 |
| [DETERMINATION OF NET ASSET VALUE](#KJ_010) | 48 |
| [DISTRIBUTION REINVESTMENT PLAN](#KJ_011) | 51 |
| [CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS](#KJ_012) | 52 |
| [SELLING STOCKHOLDERS](#KJ_013) | 59 |
| [PLAN OF DISTRIBUTION](#KJ_014) | 73 |
| [DESCRIPTION OF OUR CAPITAL STOCK](#KJ_015) | 76 |
| [REGULATION AS A CLOSED-END FUND](#KJ_016) | 82 |
| [CUSTODIAN, TRANSFER AND DIVIDEND PAYING AGENT AND REGISTRAR](#KJ_017) | 84 |
| [LEGAL MATTERS](#KJ_018) | 84 |
| [INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#KJ_019) | 84 |
| [AVAILABLE INFORMATION](#KJ_020) | 84 |
| [NOTICE OF PRIVACY POLICY AND PRACTICES](#KJ_021) | 84 |
| [PRIVACY NOTICE](#KJ_022) | 84 |

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We have not, and the Selling Stockholders have not, authorized anyone to give you any information other than in this Prospectus, and we take no responsibility for any other information that others may give you. We are not, and the Selling Stockholders are not, making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information appearing in this Prospectus is accurate only as of the date on the front cover of this Prospectus. Our business, financial condition, results of operations and prospects may have changed since that date. We will update these documents to reflect material changes only as required by law.

**PROSPECTUS SUMMARY**

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|:---|:---|
| The Fund | &nbsp;&nbsp;The Fund is a recently-formed, externally managed, non-diversified, closed-end management investment company with limited operating history. Throughout this Prospectus, the Fund is referred to as the "Fund," "we," "us," or "our." |
|  | &nbsp;&nbsp;We were organized as PowerLaw10, LLC, a Delaware limited liability company, on September 9, 2024. Effective September 5, 2025, we converted from a Delaware limited liability company to a Maryland corporation under the name Powerlaw Corp. |
|  | &nbsp;&nbsp;On December 23, 2025, after obtaining the approval of stockholders, the Board approved and executed the Reverse Stock Split whereby every twelve shares of common stock was changed into one share of common stock. After the completion of the Reverse Stock Split, there were 43,242,931 shares of common stock outstanding. |
| Investment Adviser | &nbsp;&nbsp;The Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"), and serves as the Fund's investment adviser pursuant to an investment advisory agreement between the fund and the Adviser (the "Investment Advisory Agreement"). The Adviser is owned and controlled by Michael Dinsdale, its Chief Executive Officer, Peter Smith, its President and Chief Compliance Officer, and Benjamin Black, its Chief Investment Officer. |
|  | &nbsp;&nbsp;The Adviser is under common control with Akkadian Ventures, Inc. ("Akkadian"). Akkadian is controlled by its officers, Benjamin Black, Michael Dinsdale, and Peter Smith. Akkadian is an experienced venture capital and secondary investment firm with a proven 15-year track record of high-conviction investing, underpinned by a deep commitment to its investors and broader community. Akkadian is a recognized pioneer in direct secondary investments, option exercise loans, and company liquidity programs, with extensive experience in the private markets. The firm's strategic evolution includes managing five growth-stage venture direct secondary strategies since 2011, most recently through Akkadian Ventures VI, LP ($276 million), as well as a seed-stage fund-of-funds strategy through RAISE.ai Ventures, LP ($55 million). Akkadian is the founder of the RAISE Global Conference, established in 2016, which maintains a curated network of over 3,000 general partners and 2,000 limited partners. Akkadian has 12 employees and is located in San Francisco, CA. As of September 30, 2025, Akkadian and its affiliates had over $1.2 billion in assets under management, which includes the Fund's total assets of $417 million. |
|  | &nbsp;&nbsp;The Fund reflects Akkadian's mission to democratize access to Silicon Valley's premier technology investments. The Fund was built to provide investors with access to a carefully curated portfolio of what the Adviser believes to be leading private technology companies. The Fund enables investors to have exposure to what the Adviser believes are the leading private venture backed technology businesses, while having daily liquidity and quarterly transparency. |
|  | &nbsp;&nbsp;Because of Akkadian's history, the Adviser's management team has established relationships within the secondary ecosystem, and it intends to use those relationships to position the Fund as a preferred buyer for secondary market transactions (i.e., transactions in securities of private companies that are acquired other than from the issuer), which may give the Fund access to optimal terms and opportunities. By strategically targeting what the Adviser believes are transformative technology companies that are remaining private longer, the Fund serves as the critical bridge between private innovation and public capital, placing its investors at the forefront of market evolution and enabling them to participate in industry trends and opportunities for substantial value creation. |
|  | &nbsp;&nbsp;Akkadian and the Adviser's personnel possess extensive expertise executing investments through various structures, including purchases of common and preferred equity securities, option exercise loans, forward contracts, and SPVs. Since inception, Akkadian's experienced in-house team has successfully executed over 750 individual secondary transactions employing these methods. As of September 30, 2025, Akkadian manages five blind pool funds, one fund-of-funds, and many SPVs representing approximately $802 million in regulatory assets under management, which excludes the Fund's total assets of $417 million as of that date. Across these vehicles (and excluding the Fund), Akkadian has deployed capital into 111 distinct portfolio investments, resulting in 52 exits, both fully and partially realized. Importantly, throughout its history, Akkadian has never experienced a counterparty default or failure to honor transactional commitments. |

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|:---|:---|
|  | &nbsp;&nbsp;Under the Investment Advisory Agreement, commencing upon the date that this registration statement is declared effective by the SEC (the "Effective Date"), we will pay the Adviser a management fee, payable quarterly, in an amount equal to 2.50% of the Fund's average gross assets at the end of the two most recently completed calendar quarters (the "Management Fee"). For purposes of the Investment Advisory Agreement, the term "gross assets" includes assets purchased with borrowed funds. Prior to the Effective Date, the Adviser will not charge a Management Fee. |
|  | &nbsp;&nbsp;The Adviser's investment committee (the "Investment Committee") is currently comprised of Benjamin Black and Michael Dinsdale and is supported by members of the Adviser's senior executive team. The Investment Committee is responsible for selecting and evaluating all investment opportunities on behalf of the Fund. The Investment Committee's members may change from time to time as designated by the Adviser. |
| Investment Objective | &nbsp;&nbsp;The Fund's investment objective is long-term capital appreciation. The Adviser believes that a select number of technology companies possess the potential to become generational leaders, significantly shaping global markets and economies over extended periods. These companies are creating new markets, such as Space or Artificial Intelligence, or are disrupting existing markets such as FinTech or Software. Emerging technologies, such as artificial intelligence, are accelerating transformative changes across industries. These companies have reached scale once reserved for the public markets. They are led by strong founders who are building these businesses for the long term. However, due to evolving dynamics within the global capital markets, these high-potential companies are increasingly electing to remain private for longer durations, limiting access for most investors around the globe. |
|  | &nbsp;&nbsp;The Adviser believes there are only a limited number of vehicles for investors seeking exposure to these select private generational technology companies today, and none that bring the Fund's unique blend of size, exposure to proven and tenured leaders in key and emerging technology sectors, and the Adviser's knowledge of and access to investment opportunities that fit with the Fund. The Fund will further differentiate itself from other private technology investment vehicles by strategically concentrating its holdings in the smallest number of generational companies permitted by applicable regulations. By maintaining a highly concentrated portfolio, typically consisting of approximately 15 material positions that create exposure to significant late-stage private technology companies, the Adviser seeks to optimize the Fund's potential for outsized investment returns. A material position is a position that comprises more than 1.5% of the Fund's total investment cost, excluding cash and cash equivalents (including U.S. Treasury bills and similar instruments). |
|  | &nbsp;&nbsp;The Adviser believes that the Fund is ideally positioned to deliver on its investment objective for several key reasons: |

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● Access to private technology markets through an investment vehicle providing public market liquidity for private market exposure;

● Curated portfolio of late-stage, next-generation private technology leaders previously inaccessible to most investors;

● Portfolio constructed and managed by seasoned venture capital investors with 15-year track record successfully accessing secondary investment opportunities; and

● Focused strategy and analytical approach leveraging the Adviser's expertise to target the most validated, high-potential companies.

There can be no assurance that our investment objective will be achieved or that our investment program will be successful. Our investment objective may be changed by our Board without prior stockholder approval.

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| | |
|:---|:---|
| Investment Strategy and Types of Investments | &nbsp;&nbsp;In the venture capital asset class, returns are characterized by a "power law" distribution, in which a small number of portfolio companies, comprising approximately 10% of portfolio investments, generate a disproportionate share of overall investment gains. While many early- and growth-stage companies may fail or deliver modest returns, this limited subset—often referred to as "outliers"—can achieve exceptional outcomes and materially impact the performance of a portfolio. The Fund's strategy is designed to identify companies that have demonstrated their outlier potential and concentrate exposure in them, as the Adviser believes that meaningful participation in a small number of transformative private technology companies offers the most compelling opportunity for long-term capital appreciation. The name of the Fund - Powerlaw - emphasizes this well documented fact about venture capital returns. |
|  | &nbsp;&nbsp;Our core investment themes specifically target sectors that the Adviser believes are poised for transformative growth, including next-generation dominant enterprise SaaS platforms, leading consumer platforms, modern aerospace and defense technologies, and companies at the forefront of artificial intelligence innovation. This thematic and concentrated approach positions the Fund to capitalize on substantial growth opportunities in these rapidly evolving sectors. |
|  | &nbsp;&nbsp;**Investment Criteria** |
|  | &nbsp;&nbsp;The Fund's investment strategy focuses on identifying and investing in select outlier companies by leveraging the extensive experience of the Adviser's personnel and Akkadian's position in the venture capital ecosystem. We specifically will target a small group of companies characterized by: |

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● Exceptional revenue scale within the venture capital ecosystem, typically generating annual revenues exceeding $500 million, although in limited circumstances we will consider companies at all stages of development.

● Market capitalization surpassing $5 billion, with a focus on companies with more than $10 billion of market capitalization.

● Globally recognized and respected brand identities.

● Significant and durable competitive advantages with the potential to compound growth for many years.

● A track record of raising substantial capital, typically in excess of $500 million, from highly regarded venture capital institutions.

● Consistent and sustained annual revenue growth exceeding 20% in large and growing addressable markets.

● Demonstrated robust investor demand in the top decile of companies within secondary market marketplaces.

● Potential to be durable, high-performance public companies.

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|:---|
| &nbsp;&nbsp;The aforementioned criteria represent desired targets. We cannot guarantee that all of the Fund's Portfolio Companies will meet the desired targets. |
| &nbsp;&nbsp;Late-stage technology companies are increasingly choosing to delay initial public offerings ("IPOs") and remain private for extended periods. This shift is driven by several key factors, including abundant private market capital, allowing these companies to raise significant funds without the regulatory scrutiny and public reporting requirements that accompany an IPO. Remaining private enables them to focus more strategically on long-term growth initiatives without the pressure to meet short-term earnings targets. Additionally, private companies can maintain greater confidentiality regarding proprietary technology and business strategies, thereby protecting their competitive advantages. Furthermore, liquidity solutions such as secondary market transactions provide early investors and employees with partial liquidity, reducing the urgency of public market access. Collectively, these factors encourage leading technology companies to delay public listings, resulting in prolonged periods of private operation and larger valuations before entering public markets. The Fund is designed to provide access to these companies at a relatively early stage of their growth and value creation trajectory. |

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|:---|
| &nbsp;&nbsp;Once the Adviser identifies the outlier companies, the Adviser then conducts a rigorous due diligence process. The Adviser analyzes financial performance using publicly available information, secondary market pricing, interviews with industry experts and former employees, reviews of capitalization structures and analyses of the company's addressable market and competitive threats. |
| &nbsp;&nbsp;This disciplined selection approach positions the Fund to capture value from companies that the Adviser believes are poised to deliver substantial, long-term returns to our investors. |
| &nbsp;&nbsp;**Investment Structures** |
| &nbsp;&nbsp;As certain companies grow and experience significant increased value while remaining private, employees and other stockholders may seek liquidity by selling shares directly to a third party or to a third party via a secondary marketplace. Sales of shares in private companies are typically governed by contractual transfer restrictions and may be further restricted by provisions in company charter documents, investor rights of first refusal and co-sale and company employment and trading policies. The Adviser believes that the reputation of its investment professionals within the industry and established track record of secondary investing affords it a favorable position when seeking approval for a purchase of shares subject to such limitations. |
| &nbsp;&nbsp;*Direct equity investments*. We will seek direct investments in private companies. There is a large market among emerging private companies for equity capital investments. We will seek to be a source of such equity capital as a means of investing in these companies and look for opportunities to invest alongside other venture capital and private equity investors with whom we have established relationships. |
| &nbsp;&nbsp;*Private secondary marketplaces and direct share purchases.* Over the past 15 years, Akkadian has developed relationships with over 40 brokers who provide it and its affiliated entities access to various opportunities. In addition, the Adviser may use private secondary marketplaces such as Hiive Markets Limited, Forge Securities LLC, NPM Securities, LLC, and Zanbato Securities LLC, which have registered with the SEC's Alternative Trading System by filing a Form ATS with the SEC and which are registered broker-dealers and FINRA members as reported by FINRA's Brokercheck online service. Such private secondary marketplaces are used to source introductions to potential sellers of (i) equity and equity-related interests in privately held companies that meet the Adviser's investment criteria and (ii) equity interests in SPVs that provide indirect access to equity and equity-related interests in privately held companies that meet the Adviser's investment criteria. Upon receiving such introductions via the private secondary marketplaces, the Adviser (a) negotiates, documents, and closes the transactions directly with the sellers or via the corresponding private secondary marketplace and (b) if applicable pays a commission to the private secondary marketplace. The Fund will also purchase shares directly from stockholders, including current or former employees, of privately-held companies that meet the Adviser's investment criteria, by leveraging Akkadian's relationships at the target companies in the broader venture capital community. |
| &nbsp;&nbsp;The Fund will seek to deploy capital primarily in the form of non-controlling equity and equity-linked investments in Portfolio Companies. The term "equity" includes common shares, preferred shares, and convertible securities. The term "equity-linked security" includes securities, the returns on which are linked to the performance of an equity security. |
| &nbsp;&nbsp;The Fund seeks to invest directly in the equity securities of Portfolio Companies, however, in order to increase its access to Portfolio Companies, the Fund may also invest in (i) SPVs and similar investment structures, (ii) forward contracts for future delivery of stock, swaps or other synthetic equity agreements, and (ii) Private Funds to gain diversified exposure to Portfolio Companies or to obtain co-investment opportunities from Private Fund managers. In addition, the Fund may purchase equity interests in SPVs in secondary transactions. The Fund may invest in Portfolio Companies through secondary purchases and exchanges from selling stockholders of such companies and direct purchases from such Portfolio Companies. |
| &nbsp;&nbsp;The Fund may make certain investments through one or more SPVs typically organized as limited liability companies or limited partnerships. Certain SPVs in which the Fund may invest are wholly-owned and solely controlled by the Fund and were (or in the future may be) formed to manage investments with increased flexibility, simplify transfers of economic interests, and mitigate investment-specific risks. Wholly-owned SPVs are consolidated with the Fund for purposes of financial reporting, and, on a consolidated basis with the Fund, will be compliant with Section 8, Section 17 and Section 18 of the 1940 Act. The Fund has (and may in the future) invest in SPVs, which are controlled by an external manager, but for which the Fund has special rights, such as information rights, rights to approve purchases or dispositions of assets, and rights to approve the admission of additional investors, pursuant to the SPV's governing documents. The Fund has (and may in the future) invest in SPVs that are controlled by an external manager and for which the Fund has no such special rights. |

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|:---|
| &nbsp;&nbsp;See "Current Portfolio" for the percentage of the Fund held in each type of SPV. |
| &nbsp;&nbsp;Investors in the Fund gain economic participation in underlying SPV investments indirectly through their investment in the Fund. The Fund is subject to the governing documents and the terms specific to each SPV. |
| &nbsp;&nbsp;Investors should be aware that the use of SPVs introduces additional layers of structural complexity, and potential risks related to liquidity, transparency, and valuation may exist. Investments through SPVs may also result in layered fees and additional indirect costs for stockholders. See "Risk Factors - There are risks associated with investing in SPVs or similar investment structures, including that the Fund will bear its pro rata portion of expenses on investments in SPVs and will have no direct claim against underlying Portfolio Companies." |
| &nbsp;&nbsp;In limited circumstances, certain investments of the Fund may be structured through a multi-layer special purpose vehicle ("Multi-Layer SPV"). Under this arrangement, the Fund initially invests in an intermediary vehicle, typically organized as a limited liability company or limited partnership. That intermediary vehicle may invest directly in a single-tier special purpose entity (the "Primary SPV"), which directly owns securities of the underlying portfolio company or may invest in additional intermediary vehicles, which ultimately invest directly in a Primary SPV. |
| &nbsp;&nbsp;The Multi-Layer structure facilitates efficient management of investment terms, eases compliance with transfer restrictions and regulatory requirements, and tax optimization. Specifically, it provides the Fund with increased flexibility to participate in complex secondary market transactions, manage liquidity events, accommodate investor-specific regulatory constraints, and optimize capital calls and distributions. |
| &nbsp;&nbsp;The Fund retains economic exposure to the underlying portfolio investments through its ownership of interests in the Primary SPV, subject to the terms and agreements governing the respective SPVs. Investors in the Fund should carefully consider the additional structural complexity and potential risks arising from such arrangements. See "Risk Factors." |
| &nbsp;&nbsp;To the extent that the Fund invests in Private Funds, investors should be aware that investing in Private Funds introduces additional layers of structural complexity, and potential risks related to liquidity, transparency and valuation. Investments in Private Funds also may result in additional indirect costs for stockholders. See "Risk Factors – Investments in Private Funds may involve significant risks, including that the Adviser will have no control over the investments of the Private Fund and the Fund will bear its pro rata portion of expenses on investments in Private Funds." |
| &nbsp;&nbsp;See "Current Portfolio" for the percentage of the Fund held in each type of investment. |
| &nbsp;&nbsp;**Portfolio Construction** |
| &nbsp;&nbsp;The Fund is designed to provide access to what the Adviser believes are the highest quality and highest-potential privately held technology companies. To optimize for our long-term capital appreciation objective, we intend to construct our portfolio to achieve maximum allowable concentration consistent with the diversification requirements applicable to regulated investment companies ("RICs") for U.S. federal income tax purposes. We anticipate allocating our largest positions to the two companies that we believe possess the strongest long-term growth potential, with these two holdings each representing up to 25% of the Fund's assets. Our remaining positions are expected to individually range from approximately 1% to 10% of the portfolio. |
| &nbsp;&nbsp;These allocations are based on our assessments of our Portfolio Companies and the availability of exposure to them. We cannot guarantee that we will be able to maintain such allocations. |
| &nbsp;&nbsp;Once we have established an initial position in a Portfolio Company, we may choose to increase our stake through subsequent purchases, to the extent permitted by RIC diversification rules. Maintaining a concentrated portfolio is a key to our success, and as a result we constantly evaluate the composition of our investments and our pipeline to ensure we are exposed to the strongest companies within our target segments. |

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|  | &nbsp;&nbsp;The Adviser's primary strategy is to invest in the equity securities of Portfolio Companies and to hold such securities until a liquidity event with respect to such Portfolio Company occurs, such as an IPO or a merger or acquisition transaction. Notwithstanding the foregoing, if the Adviser believes it to be in the best interest of the Fund, the Fund may (i) continue to hold securities of a Portfolio Company following a liquidity event and any subsequent lockup period until such time that the Adviser determines to sell the securities, or (ii) sell such securities prior to the occurrence of a liquidity event. The late-stage Portfolio Companies in which the Fund invests are generally expected to have a liquidity event within one to six years of such securities purchase by the Fund, and the Adviser takes the expected timing of any such event into consideration when it is making investment decisions on behalf of the Fund. The timing of liquidity events, however, is difficult, if not impossible, to predict with accuracy. |
|  | &nbsp;&nbsp;The Fund expects that most of its investments will be made in U.S. domestic Portfolio Companies (i.e., companies organized in the United States), but it is not prohibited from investing in Portfolio Companies organized in foreign jurisdictions, including those organized in emerging market countries. The Fund defines emerging market countries to mean countries included in the MSCI Emerging Markets Index. |
|  | &nbsp;&nbsp;The Fund primarily invests in securities of issuers involved primarily in technology, software, artificial intelligence, digital media, internet services, semiconductor manufacturing, communications equipment, information technology, and related industries. The Fund's policy of concentrating in the groups of industries in the technology sector increases its exposure to the economic, regulatory, and competitive risks associated with this sector. |
|  | &nbsp;&nbsp;The Adviser expects that the Fund's holdings of equity securities may require several years to appreciate in value, and there can be no assurance that such appreciation will occur. Due to the illiquid nature of most of the Fund's investments and transfer restrictions that equity securities are typically subject to, the Fund may not be able to sell these securities at times when the Fund deems it necessary to do so, or at all. The equity securities in which the Fund invests will often be subject to drag-along rights, which permit a majority stockholder in the company to force minority stockholders to join a company sale (which may be at a price per share lower than our initial purchase price). In addition, the Fund will often be subject to lock-up provisions that prohibit the Fund from selling its equity investments into the public market for specified periods of time after an IPO of a Portfolio Company, typically 180 days. As a result, the market price of securities that the Fund holds may decline substantially before the Fund is able to sell these securities following an IPO. In addition, many of our investments are made in SPVs that require the approval of an external manager to transfer our interests or obtain stock following an IPO. We do not control the timing of cash or stock distributions from all of the external managers. |
|  | &nbsp;&nbsp;For a complete discussion of the risks involved with the Fund's investments, please read the section entitled "Risk Factors." |
| Current Portfolio | &nbsp;&nbsp;As of December 31, 2025, our investment portfolio consists of approximately $355 million (at cost) in 18 portfolio companies of which 15 are material, and 99% of our investments provide direct and indirect exposure to private issuers engaged in the broader technology industry. With respect to the investment structures as of December 31, 2025, 13% of dollars invested are direct purchases of common or preferred shares, 21% are in SPVs, which are solely controlled by the Fund, 35% are in SPVs, which are controlled by an external manager and in which the Fund has special governance rights pursuant to the SPV's governing documents, 30% are in SPVs, which are controlled by an external manager and in which the Fund has no such special governance rights, less than 1% are invested in option exercise loans, and 1% are in forward contracts that involve the future delivery of shares of a portfolio company upon such securities becoming freely transferable or upon the removal of restrictions on transfer. Approximately 54% of our portfolio was acquired through secondary purchases. |

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|:---|:---|
| Investment Process | &nbsp;&nbsp;The Adviser uses its own extensive network, internal research and analysis to identify Portfolio Companies that satisfy its investment criteria. The Adviser's internal research and analysis leverages insights from diverse sources, including external research and industry relationships to identify and take advantage of trends that have ramifications for individual companies or entire industries. |
|  | &nbsp;&nbsp;Once a Portfolio Company is identified, the Adviser performs extensive due diligence on that company. The Adviser assesses key indicators of each company's health and growth among several other factors. Indicators that will be used include the company's total addressable market, market growth rate, recent financing rounds, company growth rate, competitive positioning, business model, network effects and economies of scale, any regulatory and legal concerns, as well as other indicators that may be strongly correlated with higher or lower valuations. |
|  | &nbsp;&nbsp;As part of the due diligence process, the Adviser will also review the transparency of financial disclosures, structure of contemplated transactions (including class of stock being purchased), recent and historical secondary market transaction pricing, and other investment-specific due diligence. |
|  | &nbsp;&nbsp;For each potential transaction, the Adviser conducts a comprehensive counterparty diligence process designed to mitigate risks and ensure clarity of ownership. Leveraging Akkadian's 15 years of industry experience, the Adviser prioritizes sourcing opportunities from trusted and well-established channels. When evaluating investments involving SPVs or other external entities, the Adviser's due diligence includes an in-depth review of all legal and transaction-related documentation, an assessment of the general partner's management capabilities and track record, thorough reference checks, and verification of ownership. For transactions directly involving individuals, the Adviser's process further incorporates background and credit checks, reviews of all relevant option documents—including option grant agreements, proof of exercise, and share certificates—and, where possible, personal reference checks. The objective of the Adviser's rigorous diligence approach is to fully understand the Fund's counterparties and proactively mitigate any potential issues related to future share redemption or ownership disputes. This process is managed by Peter Smith, who acts as the Adviser's general counsel. He is also a co-founder of Akkadian and has been in this role for 15 years. |
|  | &nbsp;&nbsp;After making an investment, the Adviser will monitor the financial trends of the Portfolio Company to assess the Fund's exposure to individual companies as well as to evaluate overall portfolio quality. The Adviser will establish valuation targets at the portfolio level and for gross and net exposures with respect to specific companies and industries within the Fund's overall portfolio. If a company is underperforming, the Adviser may decide to sell the Fund's interest in the private markets, and may realize a loss. If such a sale occurs, the Adviser will, in a reasonable period of time, add a new company to the portfolio. |
| Proposed Ticker Symbol on Exchange | &nbsp;&nbsp;"PWRL" |
| Distributions | &nbsp;&nbsp;The timing and amount of our distributions, if any, will be determined by our Board. Any distributions to our stockholders will be declared out of assets legally available for distribution. As we primarily focus on making investments in equity securities that provide opportunity for capital gains, we do not anticipate that we will pay distributions on a quarterly or other basis or become a predictable distributor of distributions, and we expect that our distributions, if any, will be less consistent than the distributions of registered investment companies that primarily make debt investments. The specific tax characteristics of our distributions will be reported to stockholders after the end of the calendar year. See "Distributions." To qualify as a RIC, we must make certain distributions. See "Certain U.S. Federal Income Tax Considerations — Taxation as a Regulated Investment Company." |
| Taxation | &nbsp;&nbsp;We intend to elect to be treated as a RIC for U.S. federal income tax purposes beginning with our taxable year ending September 30, 2026, and we intend to operate in a manner so as to continue to qualify for the tax treatment applicable to RICs. Our tax treatment as a RIC will enable us to deduct qualifying distributions to our stockholders, so that we will be subject to U.S. federal income tax only in respect of earnings that we retain and do not distribute. |

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To maintain our status as a RIC, we must, among other things:

● derive in each taxable year at least 90% of our gross income from dividends, interest, gains from the sale or other disposition of stock or securities and other specified categories of investment income; and

● maintain diversified holdings.

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|:---|:---|
|  | &nbsp;&nbsp;In addition, to receive tax treatment as a RIC, we generally must timely distribute (or be treated as distributing) in each taxable year dividends for U.S. federal income tax purposes equal to at least the sum of (i) 90% of our investment company taxable income and (ii) 90% of our net tax-exempt income for that taxable year. |
|  | &nbsp;&nbsp;As a RIC, we generally will not be subject to U.S. federal income tax on our investment company taxable income and net capital gains that we timely distribute to stockholders. We will be subject to U.S. federal income tax imposed at corporate rates on our investment company taxable income and net capital gains that we do not distribute to stockholders. If we fail to distribute a sufficient amount of our investment company taxable income or net capital gains on a timely basis, we may be subject to a nondeductible 4% U.S. federal excise tax. We may choose to retain all or a portion of our net capital gains or a portion of our income and pay the resulting U.S. federal income tax on such income or gains. See "Distributions" and "Certain U.S. Federal Income Tax Considerations." |
| Leverage | &nbsp;&nbsp;We may use leverage to the extent permitted by the 1940 Act. We are permitted to obtain leverage using any form of financial leverage instruments, including funds borrowed from banks or other financial institutions, margin facilities, notes or preferred stock and leverage attributable to reverse repurchase agreements or similar transactions. We may further increase our leverage through entry into a credit facility or other leveraging instruments. Instruments that create leverage are generally considered to be senior securities under the 1940 Act. With respect to senior securities that are stocks (i.e., shares of preferred stock), we are required to have an asset coverage of at least 200%, as measured at the time of the issuance of any such shares of preferred stock and calculated as the ratio of our total assets (less all liabilities and indebtedness not represented by senior securities) over the aggregate amount of our outstanding senior securities representing indebtedness plus the aggregate liquidation preference of any outstanding shares of preferred stock. With respect to senior securities representing indebtedness (i.e., borrowing or deemed borrowing), other than temporary borrowings as defined under the 1940 Act, we are required to have an asset coverage of at least 300%, as measured at the time of borrowing and calculated as the ratio of our total assets (less all liabilities and indebtedness not represented by senior securities) over the aggregate amount of our outstanding senior securities representing indebtedness. |
|  | &nbsp;&nbsp;On December 31, 2025, the Fund entered into a senior secured credit agreement (the "Credit Agreement") with Stifel Bank ("Stifel Bank"), which will expire on December 31, 2027. Subject to the terms of the Credit Agreement, the Fund may borrow up to an aggregate amount of $20,000,000 (the "Credit Facility"). Interest accrues on principal drawn under the Credit Facility, which is payable on each loan maturity date. The interest rate is the Prime Rate, as of the date of funding (6.75% at December 31, 2025) plus 1.00%. The Fund will pay a 0.25% commitment fee on the maturity date equal to the difference between the average commitment amount and the average daily balance of the principal borrowed. The Fund intends to use the Credit Facility for short term borrowing needs, and does not intend to make investments using funds borrowed under the Credit Facility. As of February 9, 2026 the Fund had $20,000,000 available to be borrowed and $0 outstanding borrowings under the Credit Facility. |
| Distribution Reinvestment Plan | &nbsp;&nbsp;We have adopted an "opt out" distribution reinvestment plan for our stockholders. As a result, if we declare a cash distribution or other distribution, each stockholder that has not "opted out" of our distribution reinvestment plan will have their distributions or distributions automatically reinvested in additional shares of our common stock rather than receiving cash distributions. |
|  | &nbsp;&nbsp;Stockholders who receive distributions and other distributions in the form of shares of common stock generally are subject to the same U.S. federal tax consequences as stockholders who elect to receive their distributions in cash; however, since their cash distributions will be reinvested, those stockholders will not receive cash with which to pay any applicable taxes on reinvested distributions. See "Distribution Reinvestment Plan." |
| Administrator | &nbsp;&nbsp;Paralel Technologies LLC serves as the administrator of the Fund pursuant to a fund administration services agreement. |
| Custodian, Transfer and Dividend Paying Agent and Registrar | &nbsp;&nbsp;U.S. Bank National Association serves as our custodian. Continental Stock Transfer & Trust Company serves as our transfer and dividend paying agent and registrar. See "Custodian, Transfer and Dividend Paying Agent and Registrar." |

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|:---|:---|
| Summary Risk Factors | &nbsp;&nbsp;There is no assurance that the Fund will meet its investment objective. The value of your investment in the Fund, as well as the amount of return you receive on your investment in the Fund, may fluctuate significantly. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. Therefore, you should consider carefully the following risks before investing in the Fund. Please refer to the section of the Prospectus titled "Risk Factors" for a more detailed discussion of the principal risk factors related to the Fund. |
|  | &nbsp;&nbsp;**Risks Related to Our Business and Our Structure** |

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● The Fund is a newly formed entity with limited operating history as a closed-end management investment company.

● The Fund may lack investment diversification and is subject to greater risk than a broadly diversified fund.

● Adverse market conditions may have a material adverse impact on the Fund's Portfolio Companies and the Fund's returns.

● Political, social and economic uncertainty risks could have a material adverse effect on the Fund.

● A cyber-attack could have a material adverse effect on the Fund.

● The U.S. has recently enacted and proposed to enact significant new tariffs, which may adversely affect the business of the Fund's Portfolio Companies.

● The loss of the services of any key personnel could have a material adverse effect on the Adviser and materially adversely affect the Fund's financial condition and results of operations.

● The Adviser is newly formed and does not have experience managing a registered investment company.

● The Fund's financial condition and results of operations depend on its ability to achieve its investment objective.

● The Fund will likely experience fluctuations in its quarterly results, and it may be unable to replicate past investment opportunities or make the types of investments it has made to date in future periods.

● The Fund operates in a highly competitive market for direct equity investment opportunities. If the Fund is unable to make investments, it may have an adverse effect on its performance.

● There are significant potential conflicts of interest which could impact the Fund's investment returns and limit the flexibility of its investment policies.

● In the event the value of your investment declines, the Management Fee will still be payable.

● Changes in laws or regulations governing the Fund's operations may adversely affect its business.

● The transparency of the Fund's performance reporting may indirectly increase the difficulty of investing in certain Portfolio Companies.

● The Adviser has full discretion over the Fund's portfolio, and the Fund's stockholders are not involved in investment decisions.

● Our investment portfolio will be recorded at fair value as determined in good faith in accordance with procedures established by our Board and, as a result, there is and will be uncertainty as to the value of our portfolio investments.

● Our ability to enter into transactions with our affiliates is restricted.

● Our Board may change our non-fundamental investment policies and our investment strategies without prior notice or stockholder approval, the effects of which may be adverse.

● The Fund has indemnification obligations.

&nbsp;&nbsp;**Risks Related to Our Investments**

● There are risks inherent in investing in venture-backed companies.

● The Fund's investments in Portfolio Companies may be extremely risky, and the Fund could lose all or part of its investments.

● There are risks associated with investing in SPVs or similar investment structures, including that the Fund will bear its pro rata portion of expenses on investments in SPVs and will have no direct claim against underlying Portfolio Companies.

● Investments in Private Funds may involve significant risks, including that the Adviser will have no control over the investments of the Private Fund and the Fund will bear its pro rata portion of expenses on investments in Private Funds.

● The Fund may invest in forward contracts, which involve certain risks.

● Indirect investments in Portfolio Companies involve substantial risks, including that the Portfolio Company may not recognize our investment, and actively seek to obstruct it.

● There are significant potential risks relating to investing in securities traded on private secondary marketplaces.

● Secondary investments purchased at a negotiated discount may result in unrealized gains.

● The Fund may not realize gains from its investments, may be compelled to liquidate its investments at a loss as a result of the actions of majority stockholders and, because certain of the Portfolio Companies may incur substantial debt to finance their operations, the Fund may experience a complete loss on its investment in the event of a bankruptcy or liquidation of any of the Portfolio Companies.

● Because the Fund's investments are generally not in publicly traded securities, there will be uncertainty regarding the fair market value of its investments, which could adversely affect the determination of the Fund's NAV.

● The lack of liquidity in, and potentially extended holding period of, many of the Fund's investments may adversely affect its business and will delay any distributions of any gains.

● Technology-focused companies in which the Fund invests are subject to many risks, including volatility, intense competition, decreasing life cycles, product obsolescence, changing consumer preferences, and periodic downturns.

● Due to transfer restrictions and the illiquid nature of the Fund's investments, the Fund may not be able to purchase or sell its investments when it determines to do so.

● The Fund may be subject to lock-up provisions or agreements that could prohibit it from selling its investments for a specified period of time.

● There are significant potential risks relating to holding Portfolio Company securities following an IPO.

● There are uncertainties regarding the tax treatment of certain of the Fund's investments.

● The Fund will generally not hold a controlling interest in any of its Portfolio Companies.

● Investments in foreign companies may involve significant risks in addition to the risks inherent in U.S. investments.

● The Fund's ability to make follow-on investments may be limited.

&nbsp;&nbsp;**Tax Risks**

● We will be subject to U.S. federal income tax imposed at corporate rates on our income and gains if we are unable to qualify as a RIC.

● We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.

● If we are not treated as a "publicly offered regulated investment company," certain stockholders will be treated as having received certain income and their allocable share of expenses, which may not be deductible.

● We cannot predict how new tax legislation will affect us, our investments, or our stockholders, and any such legislation could adversely affect our business.

&nbsp;&nbsp;**Risks Related to Leverage**

● We may borrow money, which may magnify the potential for loss and may increase the risk of investing in us.

● Regulations governing our operation as a registered closed-end management investment company affect our ability to raise additional capital and the way in which we do so. The raising of debt capital may expose us to risks, including the typical risks associated with leverage.

&nbsp;&nbsp;**Risks Related to the Listing of Our Shares**

● Our direct listing differs significantly from listings arising from an underwritten IPO.

● Our stock price may be volatile, and could decline significantly and rapidly.

● An active, liquid, and orderly market for our common stock may not develop or be sustained. You may be unable to sell your shares of common stock at or above the price at which you purchased them.

&nbsp;&nbsp;**Risks Related to Our Securities and This Offering**

● Common stock of closed-end management investment companies has in the past frequently traded at discounts to their NAVs, and we cannot assure you that the market price of our shares will not decline below our NAV per share.

&nbsp;&nbsp;**See "*Risk Factors*" section beginning on page 19 of this Prospectus and other information included in this Prospectus for additional discussion of factors you should consider before deciding to invest in our securities.**

**FEES AND EXPENSES**

The following table is intended to assist you in understanding the costs and expenses that you will bear directly or indirectly. We caution you that some of the percentages indicated in the table below are estimates and may vary. The expenses shown in the table under "Annual expenses" are based on estimated amounts for our current fiscal year. The following table should not be considered a representation of our future expenses. Actual expenses may be greater or less than shown. Except where the context suggests otherwise, whenever this Prospectus contains a reference to fees or expenses paid by "us" or "the Fund" or that "we" will pay fees or expenses, you will indirectly bear these fees or expenses as an investor in the Fund.

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| Annual expenses | Percentage of <br> Net Assets<br> Attributable to <br> Common Stock |
| Management Fee | 2.50%<sup>(1)</sup> |
| Interest Payments on Borrowed Funds | 0.00%<sup>(2)</sup> |
| Acquired Fund Fees and Expenses | 0.00%<sup>(3)</sup> |
| Other Expenses | 1.13%<sup>(4)</sup> |
| Total Annual Expenses | 3.63%<sup>(4)</sup> |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Under the Investment Advisory Agreement, commencing upon the Effective Date, we will pay the Adviser a Management Fee, payable quarterly, in an amount equal to 2.50% of our average gross assets at the end of the two most recently completed calendar quarters. For purposes of the Investment Advisory Agreement, the term "gross assets" excludes cash and cash equivalents but includes assets purchased with borrowed funds. Prior to the Effective Date, the Adviser will not charge a Management Fee. The Management Fee reflected in the table is estimated for the Fund's first year of operations following the Effective Date. Additionally, this estimate is calculated by determining the ratio that the Management Fee bears to our net assets attributable to common stock (rather than our gross assets).

&nbsp;&nbsp;&nbsp;&nbsp;(2) The Fund may borrow funds to make investments or for other purposes. The costs associated with any borrowings will be indirectly borne
by stockholders. The Fund currently has a Credit Facility with Stifel Bank. The Fund intends to use the Credit Facility for short term
borrowing needs, and does not intend to make investments using funds borrowed under the Credit Facility. The Fund estimates that interest
payments on the Credit Facility for the Fund's current fiscal year will be less than one basis point based on anticipated usage of the Credit Facility
throughout the year.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Acquired Fund Fees and Expenses are the indirect costs of investing in other investment companies. The amounts under this line item are estimated for the current fiscal year and estimated to be less than 1 basis point. Therefore, any such estimated amounts are included in other expenses.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Other expenses include, but are not limited to, accounting, legal and auditing fees of the Fund, organizational costs, expenses related to the Fund's distribution reinvestment plan, as well as fees paid to the Administrator, the transfer agent, the custodian and the Directors. We based these expenses on estimated amounts for the Fund's first fiscal year of operations.

**Example**

The following example demonstrates the projected dollar amount of total cumulative expenses over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we have assumed we would have no additional leverage and that our annual operating expenses would remain at the levels set forth in the table above. Transaction expenses are included in the following example.

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|:---|:---|:---|:---|:---|
| Example | 1 Year | 3 Year | 5 Years | 10 Years |
| You would pay the following expenses on a $1,000 investment, assuming a 5% annual return | $36 | $113 | $195 | $427 |

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The foregoing table is to assist you in understanding the various costs and expenses that an investor in our common stock will bear directly or indirectly. While the example assumes, as required by the SEC, a 5% annual return, our performance will vary and may result in a return greater or less than 5%. In addition, while the example assumes reinvestment of all dividends and distributions at NAV, if our Board authorizes and we declare a cash dividend, participants in our distribution reinvestment plan who have not otherwise elected to receive cash will receive a number of shares of our common stock, determined by dividing the total dollar amount of the distribution payable to a participant by the market price per share of our common stock at the close of trading on the valuation date for the distribution. See "Distribution Reinvestment Plan" for additional information regarding our distribution reinvestment plan.

**This example and the expenses in the table above should not be considered a representation of our future expenses, and actual expenses (including the cost of debt, if any, and other expenses) may be greater or less than those shown.**

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Prospectus, including the documents we incorporate by reference herein, contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about the Fund, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," and variations of these words and similar expressions are intended to identify forward-looking statements.

The forward-looking statements contained in this Prospectus involve risks and uncertainties, including statements as to:

● our future operating results, including our ability to achieve objectives;

● our business prospects and the prospects of our Portfolio Companies;

● the impact of investments that we expect to make;

● our contractual arrangements and relationships with third parties;

● the dependence of our future success on the general economy and its impact on the industries in which we invest;

● market conditions and our ability to access capital;

● the ability of our Portfolio Companies to achieve their objectives;

● the valuation of our Portfolio Companies, particularly those having no liquid trading market;

● our expected financings and investments;

● the adequacy of our cash resources and working capital; and

● the timing of cash flows, if any, from our investments.

These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

● a contraction of available credit and/or an inability to access the equity markets could impair our investment activities;

● interest rate volatility could adversely affect our results, particularly if we elect to use leverage as part of our investment strategy;

● currency fluctuations could adversely affect the results of our investments in foreign companies, particularly to the extent that we receive payments denominated in foreign currency rather than U.S. dollars;

● the impact of information technology system failures, data security breaches, data privacy compliance, network disruptions and cybersecurity attacks; and

● the risks, uncertainties and other factors we identify in "Risk Factors" and elsewhere in this Prospectus and in our filings with the SEC.

**THE FUND AND OUR CURRENT PORTFOLIO**

We are a recently-formed, externally managed, non-diversified, closed-end management investment company registered under the 1940 Act. We were organized as PowerLaw10, LLC, a Delaware limited liability company, on September 9, 2024. Effective September 5, 2025, we converted from a Delaware limited liability company to a Maryland corporation under the name Powerlaw Corp. On December 23, 2025, after obtaining the approval of stockholders, the Board approved and executed the Reverse Stock Split whereby every twelve shares of common stock was changed into one share of common stock. After the completion of the Reverse Stock Split, there were 43,242,931 shares of common stock outstanding.

Our principal office is located at 631 Folsom Street Ste A & B, San Francisco, California, 94107-3850, and our telephone number is (707) 653-6892.

The following table sets forth information as of December 31, 2025. As of December 31, 2025, our investment portfolio consists of approximately $355 million (at cost) in 18 portfolio companies of which 15 are material, and 99% of our investments provide direct and indirect exposure to private issuers engaged in the broader technology industry. With respect to the investment structures as of December 31, 2025, 13% of dollars invested are direct purchases of common or preferred shares, 21% are in SPVs, which are solely controlled by the Fund, 35% are in SPVs, which are controlled by an external manager and in which the Fund has special governance rights pursuant to the SPV's governing documents, 30% are in SPVs, which are controlled by an external manager and in which the Fund has no such special governance rights, less than 1% are invested in option exercise loans, and 1% are in forward contracts that involve the future delivery of shares of a portfolio company upon such securities becoming freely transferable or upon the removal of restrictions on transfer. Approximately 54% of our portfolio was acquired through secondary purchases.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Shares /<br> Units /<br> Principal<br> Amount** | **Portfolio Company** | **Nature of Principal<br> Business** | **Investment <br> Structure(s)** | **Cost of<br> Investment** | **FV of<br> Investment<sup>1</sup>** |
| 167232 | Anduril Industries, Inc. | Defense Products Technology | Forward Contract<sup>2</sup>, Option Exercise Loan<sup>3</sup>, SPV<sup>4</sup> | $6861549 | $6847538 |
| 110023 | Anthropic, PBC | Artificial Intelligence (AI) | SPV<sup>4</sup> | $9210600 | $29233259 |
| 3848 | Canva, Inc. | Software | SPV<sup>4</sup> | $6782818 | $6626666 |
| 1339584 | Colossal Biosciences Inc. | Biotechnology and Genetic Engineering | Direct Purchase | $19999989 | $19999989 |
| 108541 | Databricks, Inc. | Software | Direct Purchase, SPV<sup>4</sup> | $14501737 | $20816767 |
| 513919 | Deel, Inc. | Financial Technology | Direct Purchase, SPV<sup>4</sup> | $20224975 | $19999975 |
| 64500 | Figma, Inc. | Software | Direct Purchase | $2064000 | $2410365 |
| 572140 | Groq, Inc. | Artificial Intelligence (AI) | Direct Purchase, SPV<sup>4</sup> | $19002023 | $18400022 |
| 62350 | Kalshi Inc. | Financial Technology | Direct Purchase, SPV<sup>4</sup> | $20624260 | $20153427 |
| 28020 | Mercor.io Corporation | Artificial Intelligence (AI) | SPV<sup>4</sup> | $21000000 | $19999723 |
| 301584 | OpenAI Group PBC | Artificial Intelligence (AI) | SPV<sup>4</sup> | $114374999 | $110808724 |
| 473178 | Payward, Inc. (aka Kraken) | Financial Technology | Direct Purchase, SPV<sup>4</sup> | $20891077 | $20106198 |
| 90826 | People Center Inc. d/b/a Rippling | Software | SPV<sup>4</sup> | $4968400 | $4967872 |
| 11504 | Perplexity AI, Inc. | Artificial Intelligence (AI) | SPV<sup>4</sup> | $8240207 | $8000201 |
| 60685 | Space Exploration Technologies Corp. | Aviation/Aerospace | SPV<sup>4</sup> | $39825000 | $77858868 |
| 401850 | Stripe, Inc. | Financial Technology | Direct Purchase | $15005029 | $16644627 |
| 4000 | Waymo LLC | Mobility Technology | Forward Contract<sup>2</sup> | $360000 | $360000 |
| 273523 | X.AI Corp | Artificial Intelligence (AI) | SPV<sup>4</sup> | $10900000 | $21178555 |
|  |  |  |  | $354836663 | $424412776 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) The values presented in this column reflect the unaudited fair value of such investments as of December 31, 2025, in accordance with the Fund's valuation policies and procedures.

(2) All or a portion of this investment is held through forward contracts.
 Forward contracts involve the future delivery of securities of the portfolio company upon such securities becoming freely
 transferable or upon the removal of legends that restrict the transfer of such securities. The counterparties to the forward
 contracts are the direct holders of the restricted securities of the portfolio company.

&nbsp;&nbsp;&nbsp;&nbsp;(3) All or a portion of this investment is held through loans with call rights. The proceeds of the loans have been used by the borrowers to acquire certain equity interests and/or provide liquidity. The corresponding call right agreements grant the right to purchase shares of the Portfolio Company's stock held by the borrowers, and the loan can be repaid upon the exercise of such call rights.

&nbsp;&nbsp;&nbsp;&nbsp;(4) All or a portion of this investment is held in one or more SPVs in which the Fund has a direct investment. The SPVs have either directly invested in the portfolio company or indirectly invested in the portfolio company through an SPV. The number of units presented, if applicable, are the units in the SPV owned by the Fund, which represents the equivalent number of securities of the underlying portfolio company for which the investment has economic exposure.

Set forth below is a brief description of each of our Portfolio Companies or the underlying companies to which we have exposure, in situations where investments are made through SPVs:

***Anduril Industries, Inc.***

Anduril Industries, Inc. ("Anduril") is a defense technology company that builds AI-powered, software-defined military systems, ranging from autonomous drones to surveillance towers, to modernize national security infrastructure. Its vertically integrated approach combines hardware, sensor fusion, and proprietary operating systems like Lattice to deliver real-time battlefield intelligence and autonomous decision-making at scale. With a dual advantage of Silicon Valley engineering speed and deep government relationships, Anduril is emerging as a generational defense prime in a $1T+ market ripe for disruption.

 ****

***Anthropic, PBC***

Anthropic, PBC ("Anthropic") is an AI safety and research company building Claude, a family of advanced language models designed to be steerable, interpretable, and aligned with human intent. Founded by former OpenAI researchers, the company takes a principled approach to model development, emphasizing constitutional AI and scalable oversight to ensure safe deployment. Anthropic has expanded its enterprise customer base from fewer than 1,000 to over 300,000 in two years. With strong adoption across enterprises and cloud partnerships with Amazon, Google, and Salesforce, Anthropic is a frontrunner in the race to build foundational AI models with long-term safety and commercial impact.

***Canva, Inc.***

***Colossal Biosciences Inc.***

Colossal Biosciences Inc. ("Colossal") is a biotechnology company pioneering the field of de-extinction and species restoration, with the goal of advancing genetic engineering to both revive extinct species and preserve biodiversity. Founded by serial entrepreneurs and scientists, Colossal leverages breakthroughs in CRISPR gene-editing, synthetic biology, and reproductive technologies to address critical ecological and climate challenges. The company's platform has broad applications across genomics, conservation, and human health, positioning Colossal at the forefront of the emerging intersection between biotech innovation and environmental sustainability.

***Databricks, Inc.***

Databricks, Inc. ("Databricks") is a unified data and AI platform that enables enterprises to manage, analyze, and build on massive datasets using its open-sourced Lakehouse architecture, which merges data lake flexibility with data warehouse structure and performance. The platform serves over 20,000 customers globally, including more than 60% of Fortune 500 companies, for everything from ETL and BI to advanced machine learning and generative AI applications. With a central role in the enterprise AI stack, Databricks is positioned as a foundational layer for the next era of data-driven innovation.

***Deel, Inc.***

Deel, Inc. ("Deel") is a global payroll and compliance platform that enables companies to hire, onboard, and pay employees and contractors in more than 150 countries. The company serves over 35,000 businesses and 1.25 million workers globally, providing infrastructure for international employment, including localized contracts, tax compliance, benefits administration, and global payroll management. Its platform integrates with major HR and finance systems and helps organizations manage distributed teams while complying with local labor and regulatory requirements. Deel serves businesses of all sizes, from startups to large enterprises, and continues to expand its product suite to support global workforce operations.

***Figma, Inc.***

Figma, Inc. ("Figma") is a collaborative design platform that enables teams to build user interfaces, prototypes, and design systems entirely in the browser with real-time multiplayer editing. Its seamless collaboration features have made it the go-to tool for designers and product teams at companies like Microsoft, Airbnb, and Uber. With viral bottoms-up adoption, rapid expansion into developer workflows, and strong network effects, Figma is redefining how digital products are designed and built—and sits at the center of the modern product development stack.

***Groq, Inc.***

 ****

Groq, Inc. ("Groq") is a semiconductor and artificial intelligence infrastructure company developing ultra-high-performance chips and systems designed to accelerate large language models and AI workloads. Founded by former Google engineer Jonathan Ross, who helped design the original TPU, Groq has built a proprietary Language Processing Unit (LPU) architecture that delivers deterministic, low-latency performance for AI inference at scale. The company's GroqCloud platform allows developers to access this computing power on demand, making Groq a key player in the race to build efficient, scalable AI infrastructure for enterprises, research institutions, and government applications.

***Kalshi, Inc.***

Kalshi, Inc. ("Kalshi") operates a regulated event-contracts exchange in the United States, allowing participants to trade on the outcomes of future events across categories such as economics, finance, and public policy. Kalshi is designated as a contract market regulated by the U.S. Commodity Futures Trading Commission (CFTC) and seeks to provide a transparent, centralized marketplace for event-based derivatives. The platform processes over $1 billion in weekly trading volume.

***Mercor.io Corporation***

Mercor.io Corporation ("Mercor") is an artificial intelligence company that operates a marketplace connecting specialized experts with frontier AI labs. Founded in 2022 Mercor focuses on providing human expertise for AI model training through reinforcement learning from human feedback. The platform uses AI technology to vet and match 30,000 professionals–including doctors, scientists, engineers, lawyers, and other domain experts– with leading AI companies like OpenAI, Google, Amazon, Anthropic, Nvidia. Mercor leverages AI-driven vetting and matching algorithms to streamline the process of sourcing expert knowledge for AI development, enabling AI labs to access specialized human judgment at scale.

***OpenAI Group, PBC***

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OpenAI Group, PBC ("OpenAI") is a U.S.-based artificial intelligence research and deployment organization focused on advancing artificial intelligence with the goal of developing "safe and beneficial" artificial general intelligence. The company develops and commercializes large-scale AI models, including its GPT series of language models, which powers ChatGPT with over 800 million weekly users. OpenAI's tools are used by more than 1 million businesses across industries such as software development, customer service, education, and creative tools. The company continues to invest heavily in compute infrastructure and foundational model research to support future AGI-aligned systems.

***Payward, Inc. d/b/a Kraken***

Kraken is a leading global cryptocurrency exchange and financial technology company providing secure access to digital assets and blockchain-based financial services. Founded in 2011, Kraken offers trading and custody solutions for retail, institutional, and government clients, with a focus on regulatory compliance, transparency, and security. The company operates one of the longest-running and most trusted digital asset platforms in the world, supporting over 200 cryptocurrencies and multiple fiat currencies, while also expanding into futures, derivatives, and on-chain infrastructure services to power the next generation of decentralized finance.

***People Center Inc. d/b/a Rippling***

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Rippling is a leading workforce management and HR technology platform that unifies a company's people, payroll, IT, and finance operations into a single system. Founded in 2016, the company enables organizations to automate employee onboarding, payroll, benefits, device management, and expense processing through an integrated data model that eliminates manual workflows and system fragmentation. By combining HR and IT infrastructure in one cloud platform, Rippling allows businesses to manage global workforces efficiently, maintain compliance, and scale operations seamlessly across employees, contractors, and locations worldwide.

***Perplexity AI, Inc.***

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Perplexity AI, Inc. ("Perplexity") is an artificial intelligence company developing an advanced conversational search and answer engine that combines large language models with real-time web search to provide answers with source citations, allowing users to verify the underlying information. Founded in 2022 by former researchers and engineers from OpenAI, DeepMind, and Meta, Perplexity aims to redefine how users interact with knowledge by providing trusted, explainable AI responses instead of traditional search results. The platform serves over 30 million active users, processes over 300 million queries weekly, and is actively expanding its suite of AI-native productivity tools for both consumers and enterprises.

***Space Exploration Technologies Corp.***

Space Exploration Technologies Corp. ("SpaceX") is a space launch, exploration, and services business founded by serial entrepreneur Elon Musk. Today, the company operates Falcon 9, a two-stage reusable rocket with over 400 successful launches since 2010, and Starlink, a satellite-internet service that began in 2020. In addition to its ongoing expansion of Starlink, SpaceX has also developed Starship, a fully reusable rocket designed for rapid refueling and orbital-class missions. Starship has completed 11 test flights as of 2025 and, if successful, could dramatically expand global launch capacity. SpaceX announced on February 2, 2026 that SpaceX has acquired xAI.

***Stripe, Inc.***

 ****

Stripe, Inc. ("Stripe") is a global technology company that provides payment processing infrastructure and related software tools for internet businesses. Its platform enables companies of all sizes to accept and manage online payments, prevent fraud, handle billing and subscriptions, and integrate financial services into their products. Stripe serves millions of businesses worldwide across a broad range of industries.

***Waymo LLC***

***X.AI Corp.***

X.AI Corp. ("xAI") is an artificial intelligence company founded by Elon Musk with the mission to build AI systems that advance human understanding of the universe. The company develops large-scale foundation models designed for reasoning, truthfulness, and transparency, and integrates its technology with Musk's broader ecosystem. xAI's flagship model, Grok, powers conversational and search experiences across these platforms, positioning the company at the forefront of efforts to create safe, interpretable, and broadly accessible artificial intelligence. SpaceX announced on February 2, 2026 that SpaceX has acquired xAI.

**USE OF PROCEEDS**

We will not receive any proceeds from the sales of shares of our common stock by the Selling Stockholders.

**RISK FACTORS**

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***Investing in our common stock involves a number of significant risks. Before you invest in our common stock, you should be aware of various risks associated with the investment, including those described below. You should carefully consider these risk factors, together with all of the other information included in this Prospectus, before you decide whether to make an investment in our common stock. If any of the following events occur, our business, financial condition and results of operations could be materially and adversely affected. In such case, you may lose all or part of your investment.***

**Risks Related to Our Business and Our Structure**

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***The Fund is a newly formed entity with limited operating history as a closed-end management investment company.***

The Fund is a newly formed entity with limited operating history as a closed-end management investment company. As such, there is a very limited basis upon which a potential investor can evaluate the Fund's ability to achieve its stated investment objective. Additionally, the Fund is subject to all of the business risks and uncertainties associated with any new business, including the risk that the Fund will not achieve its investment objective and that the value of your investment could decline substantially or become worthless.

The past investment performance of any entities with which the principals have been associated may not be indicative of the future results of an investment in the Fund. In other words, considering the prior performance information contained herein and contained in other materials provided, all prospective investors should bear in mind that past performance is not necessarily indicative of future results, and there can be no assurance that the company will achieve comparable results. Actual results could differ materially from those realized in the prior funds.

 ****

***The Fund may lack investment diversification and is subject to greater risk than a broadly diversified fund.***

We are classified as "non-diversified" under the 1940 Act. As a result, we will be able to invest a greater portion of our assets in obligations of a single issuer than a "diversified" fund. We may therefore be more susceptible than a diversified fund to being adversely affected by any single corporate, economic, political or regulatory occurrence.

The Fund will not have any specific size limits on holdings in securities of issuers, or in any one industry or size of issuer except as described in this Prospectus. Accordingly, the equity and equity-linked securities in which the Fund invests is not expected to be diversified across multiple sectors and may also be concentrated in specific regions or countries, such as the United States. The Fund may also have a significant portion of investments in the securities of a single issuer.

A relatively high concentration of assets could result in a portfolio that may be more vulnerable to fluctuations in value resulting from adverse conditions that may affect the economy, a particular industry, or a segment of issuers than would otherwise be the case if the Fund were required to maintain wide diversification. Consequently, significant declines in the fair value of the Fund's larger investments will produce a material decline in the Fund's NAV.

To the extent we limit our number of investments, the aggregate returns we realize may be significantly adversely affected if a small number of investments perform poorly or if we need to write down the value of any one investment. Subject to our RIC asset diversification requirements, our requirements as a diversified investment company, our investments could be focused on relatively few issuers. As a result, a downturn in any particular industry in which a significant number of our Portfolio Companies operate could materially adversely affect us.

The Fund's strategy of maintaining a highly concentrated portfolio is designed to offer substantial benefits but also entails significant risks. Concentration allows the Fund to focus its investments on a select number of high-conviction companies, optimizing the potential for outsized returns and maximizing the beneficial impact of successful portfolio outcomes. Furthermore, this approach facilitates deeper due diligence, enhanced strategic oversight, and dedicated resources per investment, supporting informed decision-making and effective monitoring. Additionally, investors benefit from clarity and transparency regarding the Fund's targeted investment thesis and specific exposure to industry-leading companies.

However, maintaining a concentrated portfolio increases certain risks. A limited number of investments heightens the potential impact of individual company underperformance or adverse developments, increasing overall portfolio volatility. Moreover, reduced diversification amplifies the Fund's exposure to sector-specific, company-specific, and systemic risks, potentially magnifying negative outcomes during market downturns or disruptions. Additionally, concentrated portfolios may face liquidity challenges, particularly when holding privately held companies, potentially complicating exit strategies or the ability to realize investments at desired valuations. Lastly, concentration can elevate regulatory, valuation, and market risks, especially when the Fund invests primarily in companies within a single industry or sector.

 ****

***Adverse market conditions may have a material adverse impact on the Fund's Portfolio Companies and the Fund's returns.***

The value of, and the income generated by, the securities in which the Fund invests may decline, sometimes rapidly or unpredictably, due to factors affecting certain issuers, particular industries or sectors, or the overall markets, such as inflation (or expectations for inflation), deflation (or expectations for deflation), interest rate changes, global demand for particular products or resources, market instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers, regulatory events, other governmental trade or market control programs, and related geopolitical events. In addition, the value of the Fund's investments may be negatively affected by the occurrence of global events such as war, terrorism, environmental disasters, natural disasters or events, exchange trading suspensions and closures, infectious disease outbreaks, or pandemics. Rapid or unexpected changes in market conditions could cause the Fund to liquidate its holdings at inopportune times or at a loss or depressed value. The value of a particular holding may decrease due to developments related to that issuer, but also due to general market conditions, including real or perceived economic developments such as changes in interest rates, credit quality, inflation or currency rates, or generally adverse investor sentiment. The value of a holding may also decline due to factors that negatively affect a particular industry or sector, such as labor shortages, increased production costs, or competitive conditions.

Governmental and quasi-governmental authorities may take a number of actions designed to support local and global economies and the financial markets in response to economic disruptions. Such actions may include a variety of significant fiscal and monetary policy changes, including, for example, direct capital infusions into companies, new monetary programs, and significantly lower interest rates. These actions may result in significant expansion of public debt and greater market risk. Additionally, an unexpected or quick reversal of these policies, or the ineffectiveness of these policies, could negatively impact overall investor sentiment and further increase volatility in securities markets.

 ****

***Political, social and economic uncertainty risks could have a material adverse effect on the Fund.***

Social, political, economic, and other conditions and events (such as natural disasters, epidemics and pandemics, terrorism, conflicts, and social unrest) that occur from time to time will create uncertainty and may have significant impacts on issuers, industries, governments, and other systems, including the financial markets, to which the Fund and the issuers in which it invests are exposed. As global systems, economies, and financial markets are increasingly interconnected, events that once had only local impacts are now more likely to have regional or even global effects. Events that occur in one country, region, or financial market will, more frequently, adversely impact issuers in other countries, regions, or markets, including in established markets such as the United States. These impacts can be exacerbated by failures of governments and societies to adequately respond to an emerging event or threat.

Uncertainty can result in or coincide with: increased volatility in the global financial markets, including those related to equity and debt securities, loans, credit, derivatives, and currency; a decrease in the reliability of market prices and difficulty in valuing assets; greater fluctuations in currency exchange rates; increased risk of default (by both government and private issuers); further social, economic, and political instability; nationalization of private enterprises; greater governmental involvement in the economy or in social factors that impact the economy; greater, less, or different governmental regulation and supervision of the securities markets and market participants and increased, decreased, or different processes for and approaches to monitoring markets and enforcing rules and regulations by governments or self-regulatory organizations; limited, or limitations on the, activities of investors in such markets; controls or restrictions on foreign investment, capital controls, and limitations on repatriation of invested capital; inability to purchase and sell assets or otherwise settle transactions (*i.e.*, a market freeze); unavailability of currency hedging techniques; substantial, and in some periods extremely high, rates of inflation, which can last many years and have substantial negative effects on markets as well as the economy as a whole; recessions; and difficulties in obtaining and/or enforcing legal judgments.

Recent examples of the above include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel and Iran and Israel in the Middle East. Russia's invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict have increased and may continue to increase volatility and uncertainty in financial markets worldwide. The United States and other countries have imposed broad-ranging economic sanctions on Russia and Russian entities and individuals and may impose additional sanctions, including on other countries that provide military or economic support to Russia. These sanctions, among other things, restrict companies from doing business with Russia and Russian issuers and may adversely affect companies with economic or financial exposure to Russia and Russian issuers. The extent and duration of Russia's military actions and the repercussions of such actions are not known. The invasion may widen beyond Ukraine and may escalate, including through retaliatory actions and cyberattacks by Russia and even other countries. Additionally, the ongoing armed conflict between Israel and Hamas and other militant groups in the Middle East and the hostilities between Israel and Iran and related events may cause significant market disruptions and volatility. These events may adversely affect regional and global economies, including those of Europe and the United States. Certain industries and markets, such as those involving oil, natural gas, and other commodities, as well as global supply chains, may be particularly adversely affected. Whether or not the Fund invests in securities of issuers located in Russia, Ukraine, Israel, and adjacent countries or with significant exposure to issuers in these countries, these events could negatively affect the value and liquidity of the Fund's investments.

U.S. and global markets have experienced increased volatility, including as a result of failures of certain U.S. and non-U.S. banks, which could be harmful to the Fund and companies in which it invests. For example, if a bank in which the Fund or a Portfolio Company has an account fails, any cash or other assets in bank accounts may be temporarily inaccessible or permanently lost by the Fund or Portfolio Company. If a bank that provides a subscription line credit facility, asset-based facility, other credit facility, and/or other services to a Portfolio Company fails, the Portfolio Company could be unable to draw funds under its credit facilities or obtain replacement credit facilities or other services from other lending institutions with similar terms. Even if banks used by Portfolio Companies remain solvent, continued volatility in the banking sector could cause or intensify an economic recession, increase the costs of banking services, or result in the Portfolio Companies being unable to obtain or refinance indebtedness at all or on as favorable terms as could otherwise have been obtained. Conditions in the banking sector are evolving, and the scope of any potential impacts to the Fund and Portfolio Companies, both from market conditions and potential legislative or regulatory responses, are uncertain. Continued market volatility and uncertainty and/or a downturn in market and economic and financial conditions, due to developments in the banking industry or otherwise (including because of delayed access to cash or credit facilities), could have an adverse impact on the Fund and its Portfolio Companies.

Although it is impossible to predict the precise nature and consequences of these events, or of any political or policy decisions and regulatory changes occasioned by emerging events or uncertainty on applicable laws or regulations that impact the Fund's investments, it is clear that these types of events will impact the Fund and the issuers in which it invests. The issuers in which the Fund invests could be significantly impacted by emerging events and uncertainty of this type, and the Fund will be negatively impacted if the value of its portfolio holdings decreases as a result of such events and the uncertainty they cause. There can be no assurance that emerging events will not cause the Fund to suffer a loss of any or all of its investments or interest thereon. The Fund will also be negatively affected if the operations and effectiveness of the Adviser, its affiliates, the issuers in which the Fund invests, or their key service providers are compromised or if necessary or beneficial systems and processes are disrupted.

 ****

***A cyber-attack could have a material adverse effect on the Fund.***

Like other business enterprises, the use of the internet and other electronic media and technology exposes the Fund and its service providers to potential operational and information security risks from cyber-security incidents, including cyber-attacks. Cyber-attacks include, among other behaviors, stealing or corrupting data maintained online or digitally, denial of service attacks on websites, the unauthorized release or misuse of confidential information, or various other forms of cybersecurity breaches. Cyber-attacks affecting the Fund or the Adviser, custodian, transfer agent, intermediaries, and other third-party service providers may adversely impact the Fund. For instance, cyber-attacks may interfere with the processing of stockholder transactions, impact the Fund's ability to calculate its NAV, cause the release of private stockholder information or confidential (including proprietary) company information, impede trading, subject the Fund to regulatory fines or financial losses, cause reputational damage, and/or otherwise disrupt normal business operations. The Fund may also incur additional costs for cybersecurity risk management purposes. Similar types of cybersecurity risks are also present for trading counterparties and issuers of securities in which the Fund invests, which could result in material adverse consequences for such issuers and may cause the Fund's investment in such Portfolio Companies to lose value. The Adviser has established business continuity plans and risk management systems reasonably designed to seek to reduce the risks associated with cyber-attacks, but there is no guarantee the Adviser's efforts will succeed either entirely or partially because, among other reasons: the nature of malicious cyber-attacks is becoming increasingly sophisticated; the Adviser cannot control the cyber-security systems of issuers or third-party service providers; and there are inherent limitations to risk management plans and systems, including that certain current risks may not have been identified and additional unknown threats may emerge in the future. There is also a risk that cybersecurity breaches may not be detected.

 ****

***The U.S. has recently enacted and proposed to enact significant new tariffs, which may adversely affect the business of the Fund's Portfolio Companies.***

The U.S. has recently enacted, and proposed to enact, significant new tariffs. Additionally, the new presidential administration has directed various federal agencies to further evaluate key aspects of U.S. trade policy and there has been ongoing discussion and commentary regarding potential significant changes to U.S. trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the U.S. Any of these factors could depress economic activity and restrict the Fund's Portfolio Companies' access to suppliers or customers and have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact the Fund's business.

 ****

***The loss of the services of any key personnel or data could have a material adverse effect on the Adviser and materially adversely affect the Fund's financial condition and results of operations.***

The management and governance of the Fund depends on the services of certain key personnel of the Adviser. The loss of the services of any key personnel could have a material adverse effect on the Adviser and materially adversely affect the Fund's financial condition and results of operations.

The Fund will rely on the Adviser to manage the Fund's investments, including sourcing and due diligence. Consequently, the Fund's ability to achieve its investment objectives depends in large part on the Adviser and its ability to identify and advise the Fund on attractive investment opportunities. This means that the Fund's investments are dependent upon the Adviser business contacts, its ability to successfully hire, train, supervise, manage and retain its personnel and its ability to maintain its operating systems. If the Fund were to lose the services provided by the Adviser or its key personnel or if the Adviser fails to satisfactorily perform its obligations under the Investment Advisory Agreement, the Fund's investments and growth prospects may decline.

In addition to key personnel, the Adviser relies extensively on third-party information and data sources to make investment decisions. Errors or inaccuracies in such third-party information could lead to flawed investment decisions and negatively impact the Fund's performance.

 

***The Adviser is newly formed and does not have experience managing a registered investment company.***

 ****

While members of the Adviser's experienced executive team have significant experience investing in the Fund's target investments, the Adviser has no investment advisory experience managing a registered management investment company. Therefore, the Adviser may not be able to successfully operate the Fund's business or achieve its investment objectives. As a result, an investment in the shares may entail more risk than the shares of a comparable company with a substantial operating history. The 1940 Act imposes numerous constraints on the operations of registered management investment companies that do not apply to the other types of investment vehicles.

 ****

***The Fund's financial condition and results of operations depend on its ability to achieve its investment objective.***

The Fund's ability to achieve its investment objective depends on the Adviser's ability to identify, analyze, and invest in Portfolio Companies that meet its investment criteria. Accomplishing this result on a cost-effective basis is largely a function of the Adviser's structuring of the investment process and its ability to provide competent, attentive, and efficient services to the Fund. There can be no assurance that the Adviser will be successful in investing in Portfolio Companies that meet the Fund's investment criteria, or that the Fund will achieve its investment objective. It may be difficult to implement the Fund's strategy unless the Fund maintains a meaningful amount of assets. The success of the Fund will depend in part upon the skill and expertise of the Adviser. Even if the Fund is able to grow and build upon its investment operations, any failure to manage growth effectively could have a material adverse effect on the Fund's business, financial condition, results of operations and prospects. The Fund's results depend on many factors, including the availability of opportunities for investment, readily accessible short and long-term funding alternatives in the financial markets, and economic conditions. Furthermore, if the Fund cannot successfully operate its business or implement the Fund's investment policies and strategies as described herein, it could negatively impact the ability to make distributions.

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***The Fund will likely experience fluctuations in its quarterly results, and it may be unable to replicate past investment opportunities or make the types of investments it has made to date in future periods.***

The Fund will likely experience fluctuations in its quarterly operating results due to a number of factors, including the rate at which it makes new investments, the level of its expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which it encounters competition in the markets, and general economic and market conditions. These fluctuations may, in certain cases, be exaggerated as a result of the Fund's focus on realizing capital gains rather than current income from its investments. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

 

***The Fund operates in a highly competitive market for direct equity investment opportunities. If the Fund is unable to make investments, it may have an adverse effect on its performance.***

A large number of entities compete with the Fund to make the types of direct equity investments that the Fund targets as part of its business strategy. The Fund competes for such investments with a large number of private equity and venture capital funds, secondary market funds, other equity and non-equity-based investment funds, investment banks, and other sources of financing, including traditional financial services companies such as commercial banks and specialty finance companies. Many of the Fund's competitors are substantially larger than the Fund and have considerably greater financial, technical, and marketing resources than the Fund does. For example, some competitors may have a lower cost of funds and access to funding sources that are not available to the Fund. In addition, some of the Fund's competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. There can be no assurance that the competitive pressures the Fund faces will not have a material adverse effect on its business, financial condition, and results of operations. Also, as a result of this competition, the Fund may not be able to take advantage of attractive investment opportunities from time to time, and the Fund can offer no assurance that the Adviser will be able to identify and make direct equity investments that are consistent with the Fund's investment objective. To the extent the Fund is unable to make investments in Portfolio Companies, an over-allocation of its assets in cash could have an adverse effect on the overall performance of the Fund, as investments in cash and cash equivalents may not earn significant returns.

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***There are significant potential conflicts of interest which could impact the Fund's investment returns and limit the flexibility of its investment policies.***

Certain members of the Adviser's team may serve as officers or director of entities that operate in a line of business similar to the Fund's, including new entities that may be formed in the future. Accordingly, they may have obligations to investors in those entities, the fulfillment of which might not be in the best interests of the Fund or the Fund's stockholders.

While the investment focus of each of these entities may be different from the Fund's investment objective, it is likely that new investment opportunities that meet the Fund's investment objective will come to the attention of one of these entities, or new entities that will likely be formed in the future in connection with another investment advisory client or program, and, if so, such opportunity might not be offered, or otherwise made available, to the Adviser or the Fund. However, the Fund's executive officers and Adviser intend to treat the Fund in a fair and equitable manner consistent with their applicable duties under law so that the Fund will not be disadvantaged in relation to any other particular client. In addition, while the Adviser anticipates that it will from time to time identify investment opportunities that are appropriate for both the Fund and the other funds or accounts that in the future may be managed by the Adviser or an affiliate of the Adviser, to the extent it does identify such opportunities, the Adviser will establish a written allocation policy to ensure that the Fund is not disadvantaged with respect to the allocation of investment opportunities among the Fund and such other funds and accounts. The Adviser and its affiliates, as applicable, will allocate investment opportunities among its managed funds and accounts, including the Fund, in accordance with its fiduciary duties to all the funds and accounts managed by the Adviser or its affiliates.

***In the event the value of your investment declines, the Management Fee will still be payable.***

The Management Fee is payable regardless of whether the NAV of the Fund or your investment declines. As a result, the Fund will owe the Adviser a Management Fee regardless of whether it incurred significant realized capital losses and unrealized capital depreciation (losses) during the fiscal period for which the Management Fee is paid.

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***Changes in laws or regulations governing the Fund's operations may adversely affect its business.***

The Fund and its Portfolio Companies are subject to regulation by laws at the local, state, and federal levels. These laws and regulations, as well as their interpretations, may be changed from time to time. Any change in these laws or regulations could have a material adverse effect on the Fund's business and the value of your investment. Changes in tax laws or interpretations by regulatory bodies such as the IRS could negatively affect the Fund's qualification as a RIC or alter the tax consequences of our investment transactions.

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***The transparency of the Fund's performance reporting may indirectly increase the difficulty of investing in certain Portfolio Companies.***

Although the Adviser will not report on the performance of individual Portfolio Companies, the Adviser will report on the Adviser's website the valuation of securities owned by the Fund and the aggregate Fund-level performance. As a result, some Portfolio Companies might be concerned that their performance could be derived from such figures. Such concern might be heightened in reverse proportion to the number of Portfolio Companies existing in the Fund's portfolio. These concerns might lead Portfolio Companies to oppose the sale of their securities to the Fund and might make it more difficult for the Fund to execute its investment strategy.

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***The Adviser has full discretion over the Fund's portfolio, and the Fund's stockholders are not involved in investment decisions.***

Subject to the implementation of the investment limitations described herein, the Adviser has complete discretion in managing the Fund's portfolio. The Fund's stockholders will not make decisions with respect to the management, disposition, or other realization of any investment made by the Fund, or other decisions regarding the Fund's business and affairs. The Adviser's incentive compensation structures for its personnel, including performance fees or carried interest arrangements in affiliated entities, may incentivize risk-taking behaviors, potentially influencing investment decisions in ways that could adversely impact the Fund. Failures in the Adviser's internal controls, compliance systems, technology platforms, or operational infrastructure could result in losses, regulatory penalties, or other adverse consequences for the Fund.

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***Our investment portfolio will be recorded at fair value as determined in good faith in accordance with procedures established by our Board and, as a result, there is and will be uncertainty as to the value of our portfolio investments.***

Under the 1940 Act, we are required to carry our portfolio investments at market value or, if there is no readily available market value, at fair value as determined in accordance with procedures established by our Board. There may not be a public market or active secondary market for certain of the types of investments that we hold and intend to make. Our investments may not be publicly traded or actively traded on a secondary market but, instead, may be traded on a privately negotiated over-the-counter secondary market for institutional investors, if at all. As a result, we will value these investments quarterly at fair value as determined in good faith in accordance with valuation policies and procedures approved by our Board.

The determination of fair value, and thus the amount of unrealized appreciation or depreciation we may recognize in any reporting period, is to a degree subjective. Additionally, our Adviser has a conflict of interest in making recommendations of fair value because its management fee is calculated based on the value of the assets in the Fund. We will value our investments quarterly at fair value in accordance with valuation policies and procedures approved by our Board, based on, among other things, input of the Adviser and independent third-party valuation firm(s) engaged at the direction of the Board. The types of factors that may be considered in determining the fair values of our investments include the nature and realizable value of any collateral, the Portfolio Company's ability to make payments and its earnings, the markets in which the Portfolio Company does business, comparison to publicly traded companies, discounted cash flow, current market interest rates and other relevant factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, the valuations may fluctuate significantly over short periods of time due to changes in current market conditions. The determinations of fair value in accordance with procedures established by our Board may differ materially from the values that would have been used if an active market and market quotations existed for such investments. The methodologies used to determine fair value involve significant subjective judgments and estimates, which may differ materially from values that could ultimately be realized upon a liquidity event or other disposition. Our NAV could be adversely affected if the determinations regarding the fair value of the investments were materially higher than the values that we ultimately realize upon the disposal of such investments.

***Our ability to enter into transactions with our affiliates is restricted.***

We are prohibited under the 1940 Act from participating in certain transactions with our affiliates without the prior approval of the SEC. Any person that owns, directly or indirectly, 5% or more of our outstanding voting securities will be our affiliate for purposes of the 1940 Act and we are generally prohibited from buying or selling any securities from or to such affiliate. The 1940 Act also prohibits certain "joint" transactions with certain of our affiliates, which could include investments in the same Portfolio Company without prior approval of the SEC. If a person acquires more than 25% of our voting securities, we will be prohibited from buying or selling any security from or to such person or certain of that person's affiliates, or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC. Similar restrictions limit our ability to transact business with our officers or directors or their affiliates. As a result of these restrictions, we may be prohibited from buying or selling any security from or to any investment fund managed by our Adviser or its affiliates without the prior approval of the SEC, which may limit the scope of investment opportunities that would otherwise be available to us. We may co-invest with our Adviser or our officers and directors in a manner consistent with guidance promulgated under the no-action position of the SEC set forth in Mass Mutual Life Ins. Co. (SEC No-Action Letter, June 7, 2000), on which similarly situated funds like us rely in order to co-invest in a single class of privately placed securities so long as certain conditions are met, including that our investment adviser or an affiliate, acting on our behalf and on behalf of other clients, negotiates no term other than price.

The Fund intends to seek exemptive relief from the SEC to permit it to co-invest with certain affiliates and other funds managed by the Adviser. This relief would permit the Fund to participate alongside affiliated entities in investment opportunities, subject to conditions designed to ensure fairness and equitable treatment, including Board oversight, allocation procedures, and compliance monitoring. There is no guarantee that such relief will be granted.

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***Our Board may change our non-fundamental investment policies and our investment strategies without prior notice or stockholder approval, the effects of which may be adverse.***

Our Board has the authority to modify or waive our non-fundamental investment policies, and our investment criteria and strategies without stockholder approval and without prior notice. We cannot predict the effect any changes to our current non-fundamental operating policies, investment criteria and strategies would have on our business, NAV of the Fund and operating results. However, the effects might be adverse, which could negatively impact our ability to make distributions to stockholders and cause you to lose all or part of your investment.

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***The Fund has indemnification obligations.***

We have indemnification obligations that would be payable from our assets, and such indemnification obligations will survive the winding-up and dissolution of the Fund. These include obligations with respect to certain SPVs and Private Funds in which we may invest. For example, the SPV's or Private Fund's assets may be used to indemnify the respective entity's managers. In such circumstances, the SPV or Private Fund may need to sell its securities or use investor cash to fund such indemnification obligations, thereby negatively impacting the investors of the SPV or Private Fund (such as the Fund). Such liabilities may be material and have an adverse effect on the returns to investors.

**Risks Related to Our Investments**

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***There are risks inherent in investing in venture-backed companies.***

The types of investments that the Fund anticipates making involve a high degree of risk. In general, financial and operating risks confronting Portfolio Companies can be significant. While targeted returns should reflect the perceived level of risk in any investment situation, there can be no assurance that the Fund will be adequately compensated for risks taken. A loss of an investor's entire investment is possible. The timing of profit realization is highly uncertain. Losses are likely to occur early in the Fund's term, while successes often require a long maturation.

Early-stage and development-stage companies often experience unexpected problems in the areas of product development, manufacturing, marketing, financing and general management, which, in some cases, cannot be adequately solved. In addition, such companies may require substantial amounts of financing which may not be available through institutional private placements or the public markets. In addition, the markets that such companies target are highly competitive and in many cases the competition consists of larger companies with access to greater resources. The percentage of companies that survive and prosper can be small.

Investments in more mature companies in the expansion or profitable stage involve substantial risks. Such companies typically have obtained capital in the form of debt and/or equity to expand rapidly, reorganize operations, acquire other businesses, or develop new products and markets. These activities by definition involve a significant amount of change in a company and could give rise to significant problems in product or service development, marketing, sales, manufacturing, and general management of these activities.

***The Fund's investments in Portfolio Companies may be extremely risky, and the Fund could lose all or part of its investments.***

Investment in Portfolio Companies involves a number of significant risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;● these Portfolio Companies may have limited financial resources and may be unable to meet their obligations with their existing working capital, which may lead to equity financings, possibly at discounted valuations, in which the Fund's holdings could be substantially diluted if the Fund does not or cannot participate, bankruptcy or liquidation, and the reduction or loss of the Fund's investment;

&nbsp;&nbsp;&nbsp;&nbsp;● these Portfolio Companies typically have limited operating histories, less-established and comprehensive product lines, and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors' actions, market conditions, and consumer sentiment in respect of their products or services, as well as general economic downturns;

&nbsp;&nbsp;&nbsp;&nbsp;● because the Portfolio Companies are privately owned, there is usually little publicly available information about these businesses; therefore, although the Adviser and its agents perform due diligence on these Portfolio Companies, their operations, and their prospects, including review of independent research reports and market valuations of securities of such companies on alternative trading systems and other private secondary markets, the Adviser may not be able to obtain all of the material information that would be generally available for public company investments, including financial or other information regarding the Portfolio Companies in which the Fund invests. Furthermore, there can be no assurance that the information that the Adviser does obtain with respect to any investment is reliable. The Fund will invest in Portfolio Companies for which current, up-to-date financial information is not available if the Adviser determines, based on the results of its due diligence review, that such investment is in the best interests of the Fund and its stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;● Portfolio companies are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation, or termination of one or more of these persons could have a material adverse impact on a Portfolio Company and, in turn, on the Fund; and

&nbsp;&nbsp;&nbsp;&nbsp;● Portfolio companies generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion, or maintain their competitive position.

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***There are risks associated with investing in SPVs or similar investment structures, including that the Fund will bear its pro rata portion of expenses on investments in SPVs and will have no direct claim against underlying Portfolio Companies.***

The Adviser may invest in Portfolio Companies indirectly through investing in SPVs. Investors should be aware that the use of SPVs introduces additional layers of structural complexity, and additional risks related to liquidity, transparency, and valuation may exist.

The Fund, as a holder of securities issued by an SPV or similar investment structure, will bear its pro rata portion of such SPV or investment structure's expenses. Investment in a Multi-Layer SPV introduces additional levels of expenses because the Fund must bear its pro-rata portion of the expenses of any intermediary vehicle and the Primary SPV. The fees we pay to invest in an SPV may be higher than if we invested in the underlying Portfolio Company directly. These acquired fund fee expenses are in addition to the direct expenses of the Fund's own operations, thereby increasing costs and/or potentially reducing returns to investors.

Investments in SPVs are generally illiquid, and the Fund may invest in SPVs managed by external managers. When investing in an SPV managed by an unaffiliated manager, the Adviser will not have any control over the management of the SPV. In addition, the Fund's investments in SPVs may be subject to investment lock-up periods or other transfer restrictions and may require the approval of an external manager to transfer our interests or obtain stock following an IPO. As such, the Fund may not be able to withdraw or transfer its investment at a desirable time. Even if the Fund is able to withdraw from an SPV, it may take a considerable amount of time for the SPV to redeem or liquidate the Fund's position. An SPV's withdrawal limitations may also restrict the Adviser's ability to reallocate or terminate investments in SPVs that are poorly performing or have otherwise had adverse changes. We do not control the timing of cash or stock distributions from all of the external managers. The Fund will have no direct claims against any Portfolio Company held by an SPV.

SPVs may also present valuation and transparency challenges. For SPVs managed by unaffiliated entities, the Fund may have little to no transparency regarding the SPVs financial position or holdings. Information provided by the SPV may be minimal, and may not be provided in a timely manner. For information about the value of the Fund's investment in an SPV managed by an unaffiliated entity, the Adviser will be dependent on information provided by the manager of the SPV, including unaudited financial statements, which, if inaccurate, could adversely affect the Adviser's ability to accurately value the Fund's Shares and to manage the Fund's investment portfolio in accordance with its investment objective. Moreover, the Adviser's due diligence efforts may not necessarily detect fraud, malfeasance, inadequate back-office systems, or other flaws or problems with respect to the SPV manager. Stockholders have no individual right to receive information about the SPVs or their managers, will not be stockholders in the SPVs, and will have no rights with respect to or standing or recourse against the SPVs, their managers, or any of their respective affiliates. Stockholders should recognize that valuations of illiquid assets, including interests in SPVs, involve various judgments and consideration of factors that may be subjective.

 

***Investments in Private Funds may involve significant risks, including that the Adviser will have no control over the investments of the Private Fund and the Fund will bear its pro rata portion of expenses on investments in Private Funds.***

The Fund's investments in Private Funds subject it to the risks associated with direct ownership of the securities in which the underlying funds invest. Private Funds are also subject to operational risks, such as the Private Fund manager's ability to maintain operations, including back-office functions, property management, accounting, administration, risk management, valuation services, and reporting. The Fund may be required to indemnify certain of the Private Funds and/or their service providers from liability, damages, costs, or expenses. In addition, the Fund, as a holder of securities issued by the Private Funds, will bear its pro rata portion of such Private Fund's expenses. The fees we pay to invest in a Private Fund may be higher than if the manager of the Private Fund managed our assets directly. Incentive fees charged by certain Private Funds may incentivize its manager to make investments that are riskier and/or more speculative than those it might have made in the absence of an incentive fee. These acquired fund fee expenses are in addition to the direct expenses of the Fund's own operations, thereby increasing costs and/or potentially reducing returns to investors.

Private Funds are not registered as investment companies under the 1940 Act and, therefore, the Fund will not be afforded the protections of the 1940 Act with respect to its Private Fund investments. For example, Private Funds may employ higher and/or more complex fee structures, may not have independent boards, may not require stockholder approval of advisory contracts, may employ leverage higher than other investment vehicles such as mutual funds, may engage in joint transactions with affiliates, and are not obligated to file financial reports with the SEC.

Although the Adviser will evaluate each Private Fund and its manager to determine whether its investment programs are consistent with the Fund's investment objective and whether the Private Fund's investment performance is satisfactory, the Adviser will not have any control over the investments made by a Private Fund. In addition, the Fund's investments in Private Funds may be subject to investment lock-up periods, during which the Fund may not be able to withdraw its investment. Even if the Fund's investment in a Private Fund is not subject to lock-up, it will take a significant amount of time to redeem or otherwise liquidate such a position. Such withdrawal limitations may also restrict the Adviser's ability to reallocate or terminate investments in Private Funds that are poorly performing or have otherwise had adverse changes. No market for the interests in a Private Fund exists or is expected to develop, and it may be difficult or impossible to transfer the interests in such Private Fund, even in an emergency.

For information about the value of the Fund's investment in Private Funds, the Adviser will be dependent on information provided by the Private Funds, including unaudited financial statements, which, if inaccurate, could adversely affect the Adviser's ability to accurately value the Fund's Shares and to manage the Fund's investment portfolio in accordance with its investment objective. A Private Fund may not provide us audited financials, and, in the absence of such audited financials, we will not have an independent third party verifying financial reports. Moreover, the Adviser's due diligence efforts may not necessarily detect fraud, malfeasance, inadequate back-office systems, or other flaws or problems with respect to the underlying Private Fund managers. In purchasing a Private Fund interest, we entrust all aspects of the management of the Private Fund to its manager, and are subject to the risks inherent in relying on a third party manager. Stockholders have no individual right to receive information about the Private Funds or their managers, will not be stockholders in the Private Funds, and will have no rights with respect to or standing or recourse against the Private Funds, their managers, or any of their respective affiliates. Stockholders should recognize that valuations of illiquid assets, including interests in Private Funds, involve various judgments and consideration of factors that may be subjective. Private Fund valuations are subject to adjustment or revisions.

Each Private Fund will be subject to a variety of litigation risks. A Private Fund's assets, including any investments made by the Private Fund and the Portfolio Companies held by the Private Fund, are available to satisfy all liabilities and other obligations of the Private Fund and we could find our interest in the Private Fund's assets adversely affected by a liability arising out of an investment of the Private Fund.

 

***The Fund may invest in forward contracts, which involve certain risks.***

We may invest in "forward contracts" where a holder of a Portfolio Company's securities (the "counterparty") agrees to deliver Portfolio Company securities upon the removal of transferability and other restrictions from the Portfolio Company securities. Forward contracts may involve counterparty promises of future performances, including among other things, transferring shares to us in the future, paying costs and fees associated with maintaining and transferring the shares, not transferring or encumbering their shares, and participating in further acts required of stockholders by the counterparty and their agreement with us. Should counterparties breach their agreement inadvertently, by operation of law, intentionally, or fraudulently, it could affect our performance. Our ability and right to enforce transfer and payment obligations, and other obligations, against counterparties could be limited by acts of fraud or breach on the part of counterparties, operation of law, or actions of third parties. Measures we take to mitigate these risks, including powers of attorney, specific performance and damages provisions, any insurance policy, and legal enforcement steps, may prove ineffective, unenforceable, or economically impractical to enact.

Should a counterparty to a forward transaction die, become bankrupt, disabled, or no longer have legal capacity, it may not honor its contractual obligations with respect to its shares, and in some cases, may be relieved of such obligations. Due to divorce, bankruptcy, or for other reasons, counterparties may be subject to court orders or other legal requirements affecting their shares that are inconsistent with their obligations to us. In the event of a public offering, sale, or other corporate event affecting the underlying Portfolio Company to a forward contract, our investment could become more complicated and our rights could become uncertain. After such an event, we may be required to engage in further legal review of the investment and negotiation with brokers, transfer agents, and representatives of the Portfolio Company, its potential acquirer, and other parties.

In cases where we purchase a forward contract, because each underlying portfolio company may not have necessarily approved or endorsed the transaction, it offers no warranties or other promises as to the validity or value thereof, and no promise that it will agree with, approve, or facilitate transfer of shares to us. The portfolio company may not be a party to and may not have approved or been informed of the counterparty's transactions with us, and, should the portfolio company object to the existence of the forward contract, it may take any number of steps to discourage or obstruct the transactions.

As of the date hereof, we have not purchased insurance policies related to our investments in forward contracts, however to mitigate some of the risks inherent in purchasing forward contracts, we may purchase insurance (at additional cost to us), which may be inadequate, and coverage limited or denied due to (among other things) liability limits, exclusions, the scope and limitations of coverage, the good faith and compliance of the insurer in honoring claims, the performance of the pool in making claims, among other things.

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***Indirect investments in Portfolio Companies through SPVs and forward contracts involve substantial risks, including that the Portfolio Company may not recognize our investment and actively seek to obstruct it.***

The Fund may obtain exposure to Portfolio Company's indirectly by investing through SPVs, forward contracts or other such instruments. The underlying Portfolio Company may not be a party to and may not have approved or been informed of the counterparty's or SPV's transactions with us, unless otherwise disclosed. The Portfolio Company may, upon learning of the counterparty's or SPV's transactions, take steps to invalidate or frustrate them, demand that we stop purchasing Portfolio Company's securities, or seek redress or retaliation against counterparties, us, or others. Should the Portfolio Company object to the existence of the forward contract, or the creation of the SPV, it may take any number of steps to discourage or obstruct the transactions, including claiming that the counterparty transactions or SPV transactions violate the Portfolio Company's agreements, claiming causes of action against counterparties or SPV sponsors or us, defensive measures intended to discourage counterparties or SPV sponsors from selling the Portfolio Company's securities to us, refusing to accept or process securities transfers, or claiming rights to rescind our transactions or trigger rights of refusal to purchase the Portfolio Company's securities involved in our transactions. Should a Portfolio Company wish to prospectively discourage secondary transactions by us, it may adopt policies or securities-related documents that makes such transactions impractical. A Portfolio Company may also object to use of its name, intellectual property, or public or non-public information about it. A Portfolio Company may be under no obligation to approve or recognize transactions involving the Portfolio Company's securities that occur as a result of forward transactions or through SPVs. Conversely, a Portfolio Company that does wish to endorse, approve, or participate in the transactions may face complex and costly regulatory requirements and exposure to risk for doing so, which could discourage it from approving or participating in the transaction.

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***There are significant potential risks relating to investing in securities traded on private secondary marketplaces.***

The Fund may utilize alternative trading systems and other private secondary markets to acquire equity securities of Portfolio Companies. The Fund generally has little or no direct access to financial or other information from the Portfolio Companies in which it invests through such private secondary marketplaces. As a result, the Fund is dependent upon the relationships and contacts of the Adviser to perform research and due diligence, and to monitor the Fund's investments after they are made. However, there can be no assurance that the Adviser will be able to acquire adequate information on which to make an investment decision with respect to any private secondary marketplace purchases, or that the information the Adviser is able to obtain is accurate or complete. Any failure to obtain full and complete information regarding the Portfolio Companies in which the Fund invests could cause the Fund to lose part or all of its investment in such companies, which would have a material and adverse effect on its NAV and results of operations.

In addition, there can be no assurance that Portfolio Companies in which the Fund invests through private secondary marketplaces will have or maintain active trading markets, and the prices of those securities may be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods. Wide swings in market prices, which are typical of irregularly traded securities, could cause significant and unexpected declines in the value of our portfolio investments. Further, prices on alternative trading systems and other private secondary markets, where limited information is available, may not accurately reflect the true value of a Portfolio Company, and may in certain cases overstate a Portfolio Company's actual value, which may cause the Fund to realize future capital losses on its investment in that Portfolio Company. If any of the foregoing were to occur, it would likely have a material and adverse effect on the Fund's NAV and results of operations.

Investments in private companies, including through private secondary marketplaces, also entail additional legal and regulatory risks which expose participants to the risk of liability due to the imbalance of information among participants and participant qualification and other transactional requirements applicable to private securities transactions. Failure to comply with such requirements could result in rescission rights and monetary and other sanctions. The application of these laws within the context of private secondary marketplaces and related market practices are still evolving, and, despite the Fund's efforts to comply with applicable laws, the Fund could be exposed to liability. The regulation of private secondary marketplaces is also evolving. Additional state or federal regulation of these markets could result in limits on the operation of or activity on those markets. Conversely, deregulation of these markets could make it easier for investors to invest directly in private companies and affect the attractiveness of the Fund as an access vehicle for investment in private shares. Private companies may also increasingly seek to limit secondary trading in their stock, through such methods as contractual transfer restrictions and employment policies. To the extent that these or other developments result in reduced trading activity and/or availability of private company shares, the Fund's ability to find investment opportunities and to liquidate its investments could be adversely affected.

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***Secondary investments purchased at a negotiated discount may result in unrealized gains.***

Secondary investments purchased at a discount will be marked up to the most recent NAV reported by the applicable third-party fund manager when the Fund next determines its NAV, resulting in an unrealized gain. Such unrealized gains will increase the Fund's NAV and performance by the difference between the most recent NAV reported by the third-party fund manager and the negotiated purchase price. To the extent any gains on the secondary investment, including the gains resulting from negotiated purchases at a discount, are realized, the tax impact to stockholders is disclosed in "Certain U.S. Federal Income Tax Considerations."

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***The Fund may not realize gains from its investments, may be compelled to liquidate its investments at a loss as a result of the actions of majority stockholders and, because certain of the Portfolio Companies may incur substantial debt to finance their operations, the Fund may experience a complete loss on its investment in the event of a bankruptcy or liquidation of any of the Portfolio Companies.***

The Fund invests (i) in the equity securities (common and/or preferred stock, or equity-linked securities convertible into such equity securities) of operating private companies or (ii) in the equity securities of SPVs, which invest in the equity securities (common and/or preferred stock, or equity-linked securities convertible into such equity securities) of operating private companies. However, the securities the Fund acquires may not appreciate in value and, in fact, may decline in value. In addition, the private company securities the Fund acquires (or into which they are convertible) are often subject to drag-along rights. Drag-along rights are rights granted to a majority stockholder in a particular company that enable such stockholder to force minority stockholders to join in the sale of a company on the same price, terms, and conditions as any other seller in the sale. Such drag-along rights could permit other stockholders, under certain circumstances, to force the Fund to liquidate its position in a Portfolio Company at a specified price, which could be, in the Adviser's opinion, inadequate or undesirable or even below the Fund's cost basis. In this event, the Fund could realize a loss or fail to realize gain in an amount that the Adviser deems appropriate on the Fund's investment. Further, capital market volatility and the overall market environment may preclude the Portfolio Companies from realizing liquidity events and impede the Fund's exit from these investments. The Portfolio Companies may make business decisions to forego or delay potential liquidity events, such as an IPO, which could delay the Fund's realization of value. Accordingly, the Fund may not be able to realize gains from its investments, and any gains that it does realize on the disposition of any investments may not be sufficient to offset any other losses it experiences. The Fund will generally have little, if any, control over the timing of any gains it may realize from its investments. In addition, the Portfolio Companies in which the Fund invests may have substantial debt loads. In such cases, the Fund would typically be last in line behind any creditors in a bankruptcy or liquidation and would likely experience a complete loss on its investment.

***Because the Fund's investments are generally not in publicly traded securities, there will be uncertainty regarding the fair market value of its investments, which could adversely affect the determination of the Fund's NAV.***

The Fund's portfolio investments are generally not in publicly traded securities (unless one of the Portfolio Companies goes public, and then only to the extent the Fund has not yet liquidated its securities holdings therein). The Adviser prepares Portfolio Company valuations using the most recent Portfolio Company financial statements and forecasts, if available. The Adviser may utilize the services of an independent valuation firm, which, if engaged, may prepare or review valuations for all or some of the Fund's portfolio investments that are not publicly traded or for which the Adviser does not have readily available market quotations. The types of factors that the Adviser will take into account in providing its fair value determination with respect to such Portfolio Company valuation will include, as relevant and, to the extent available, the Portfolio Company's earnings, the markets in which the Portfolio Company does business, comparison to valuations of publicly traded companies in the Portfolio Company's industry, comparisons to recent sales of comparable companies, the discounted value of the cash flows of the Portfolio Company, and other relevant factors. It is difficult to obtain financial and other information with respect to private companies, and even where the Adviser is able to obtain such information, there can be no assurance that it is complete or accurate. Because such valuations are inherently uncertain and may be based on estimates, the Adviser's determinations of fair market value may differ materially from the values that would be assessed if a readily available market for these securities existed. Due to this uncertainty, the Adviser's fair market value determinations with respect to any non-publicly traded Portfolio Company investment the Fund holds may cause the Fund's NAV on a given date to materially understate or overstate the value that the Fund may ultimately realize on one or more of its investments. As a result, investors purchasing the Fund's Shares based on an overstated NAV would pay a higher price than the value of its investments might warrant.

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***The lack of liquidity in, and potentially extended holding period of, many of the Fund's investments may adversely affect its business and will delay any distributions of any gains.***

The Fund's investments are generally in non-publicly traded securities (unless one of the Portfolio Companies goes public, and then only to the extent the Fund has not yet liquidated its securities holdings therein).

Although the Adviser expects that most of the Fund's equity investments will trade on private secondary marketplaces, certain of the securities held may be subject to legal and other restrictions on resale or may otherwise be less liquid than publicly traded securities. In addition, while some Portfolio Companies may trade on private secondary marketplaces, the Fund can provide no assurance that such a trading market will continue or remain active, or that the Fund will be able to sell its position in any Portfolio Company at the time the Adviser desires to do so and at the price the Adviser anticipates. The illiquidity of the Fund's investments, including those that are traded on private secondary marketplaces, may make it difficult for it to sell such investments if the need arises. Also, if the Fund is required to liquidate all or a portion of its portfolio quickly, it may realize significantly less than the carrying value of its investments. There is no limitation on the portion of the Fund's portfolio that may be invested in illiquid securities, and a substantial portion or all of its portfolio may be invested in such illiquid securities from time to time.

In addition, because the Fund deploys its capital to invest primarily in equity securities of private companies (or equity-linked securities convertible into such equity securities), realization events, if any, are unlikely to occur in the near term with respect to the majority of the Portfolio Companies. The Fund expects that its holdings of securities may require several years to appreciate in value and can offer no assurance that such appreciation will occur. Even if such appreciation does occur, it is likely that the Fund's stockholders could wait for an extended period of time before any appreciation or sale of the Fund's investments, and any attendant distributions of gains, may be realized.

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***Technology-focused companies in which the Fund invests are subject to many risks, including volatility, intense competition, decreasing life cycles, product obsolescence, changing consumer preferences, and periodic downturns.***

The Adviser intends to focus its investments on Portfolio Companies that are technology focused. The revenues, income (or losses), and valuations of technology-related companies can and often do fluctuate suddenly and dramatically. In addition, because of rapid technological change, the average selling prices of products and some services provided by technology-focused companies have historically decreased over their productive lives. As a result, the average selling prices of products and services offered by the Portfolio Companies that are technology-focused companies may decrease over time, which could adversely affect their operating results and, correspondingly, the value of any equity securities that the Fund may hold. This could, in turn, materially adversely affect the Fund's business, financial condition, and results of operations. The Fund's technology focused Portfolio Companies may face significant regulatory risks related to data privacy, cybersecurity, consumer protection laws, and antitrust concerns. New regulations or enforcement actions could adversely impact the operations, profitability, or valuation of these technology companies.

Because of the Fund's focus in technology and technology-related companies, the value of the Fund's interests may be susceptible to greater risk than an investment in a fund that invests in a broader range of securities. The specific risks faced by such companies include: rapidly changing science, technologies and consumer preferences; new competing products and improvements in existing products which may quickly render existing products or technologies obsolete; exposure, in certain circumstances, to a high degree of government regulation, making these companies susceptible to changes in government policy and failures to secure, or unanticipated delays in securing, regulatory approvals; scarcity of management, technical, scientific, research and marketing personnel with appropriate training; the possibility of lawsuits related to patents and intellectual property; and rapidly changing investor sentiments and preferences with regard to technology-related investments (which are generally perceived as risky).

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***Due to transfer restrictions and the illiquid nature of the Fund's investments, the Fund may not be able to purchase or sell its investments when it determines to do so.***

The Fund's investments are, and are expected to continue to be, (i) in equity securities (*e.g.*, common and/or preferred stock, or equity-linked securities convertible into such equity securities) of privately held companies and (ii) in equity securities SPVs, which invest in the equity securities (*e.g.*, common and/or preferred stock, or equity-linked securities convertible into such equity securities) of privately held companies. Such equity securities are typically subject to contractual transfer limitations, which may include prohibitions on transfer without the company's consent. In order to complete a purchase of shares, the Fund may need to, among other things, give the issuer or its stockholders a particular period of time, often 30 days, in which to exercise a veto right, or a right of first refusal over, the sale of such securities. The Fund may be unable to complete a purchase transaction if the subject company or its stockholders chooses to exercise a veto right or right of first refusal. When the Fund completes an investment (or upon conversion of equity-linked securities), it generally becomes bound to the contractual transfer limitations imposed on the subject company's stockholders as well as other contractual obligations, such as tag-along rights (*i.e.*, rights of a company's minority stockholders to participate in a sale of such company's shares on the same terms and conditions as a company's majority stockholder, if the majority stockholder sell its shares of the company). These obligations generally expire only upon an IPO by the subject company. As a result, prior to an IPO of a particular Portfolio Company, the Fund's ability to liquidate such securities may be constrained. Transfer restrictions could limit the Fund's ability to liquidate its positions in these securities if it is unable to find buyers acceptable to its Portfolio Companies, or, where applicable, their stockholders. Such buyers may not be willing to purchase the Fund's investments at adequate prices or in volumes sufficient to liquidate its position, and even where they are willing, other stockholders could exercise their tag-along rights to participate in the sale, thereby reducing the number of shares sellable by the Fund. Furthermore, prospective buyers may be deterred from entering into purchase transactions with the Fund due to the delay and uncertainty that these transfer and other limitations create.

The Fund intends to adhere to its primary investment strategy to "buy and hold" the Portfolio Company securities. However, although the Adviser believes alternative trading systems and other private secondary markets may offer an opportunity to liquidate the Fund's private company investments, in the event the Fund needs to liquidate such securities prior to a Portfolio Company's liquidity event (i.e., IPO or merger or acquisition transaction), there can be no assurance that a trading market will develop for the securities that it liquidates or that the subject companies will permit their shares to be sold through such platforms.

Due to the illiquid nature of most of the Fund's investments, the Fund may not be able to sell these securities at times when the Adviser deems it necessary to do so or at all. Due to the difficulty of assessing the Fund's NAV, the NAV for the Fund's shares may not fully reflect the illiquidity of the Fund's portfolio, which may change on a daily basis, depending on many factors, including the status of the alternative trading systems and other private secondary markets on which the Fund's portfolio securities may trade and the Fund's particular portfolio at any given time.

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***The Fund may be subject to lock-up provisions or agreements that could prohibit it from selling its investments for a specified period of time.***

Even if some of the Portfolio Companies complete IPOs, the Fund will often be subject to lock-up provisions that prohibit it from selling its investments into the public market for specified periods of time after an IPO, typically 180 days. As a result, the market price of securities that the Fund holds may decline substantially before it is able to sell these securities following an IPO.

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***There are significant potential risks relating to holding Portfolio Company securities following an IPO.***

The value of shares of a Portfolio Company following an IPO may and likely will fluctuate considerably more than during the private phase of their offering. Additionally, due to factors such as the absence of a prior public market, unseasoned trading, the small number of shares available for trading, and limited information about a company's business model, quality of management, earnings growth potential, and other criteria used to evaluate its investment prospects, the shares of Portfolio Companies following an IPO may experience high amounts of volatility generally. Investments in companies that have recently sold securities through an IPO involve greater risks than investments in shares of companies that have traded publicly on an exchange for extended periods of time. In addition, the market for IPO shares can be speculative and/or inactive for extended periods of time. The limited number of shares available for trading in some IPOs may make it more difficult for the Fund to sell significant amounts of shares without an unfavorable impact on prevailing prices. As a result, the market price of securities that the Fund holds may decline substantially before the Adviser is able to sell these securities following an IPO. In addition, issuers frequently impose lock-ups that prohibit sales of their shares for a period of time after an IPO.

***There are uncertainties regarding the tax treatment of certain of the Fund's investments.***

In certain circumstances the Adviser may structure investments other than as a direct acquisition of Portfolio Company securities. In this regard the Adviser may structure transactions as put options, call options, participation agreements (treated as debt or equity for income tax purposes), or novel transaction structures. The tax treatment of these transactions is not always a matter of settled law and the income therefrom may be characterized as capital gain, interest income, or other ordinary income.

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***The Fund will generally not hold a controlling interest in any of its Portfolio Companies.***

It is expected that all of the Fund's investments (directly or indirectly) will represent minority stakes in privately held companies. As is the case with minority holdings in general, such minority stakes that the Fund may hold will have neither the control characteristics of majority stakes nor the valuation premiums accorded majority or controlling stakes. The Fund expects to invest in the securities of companies for which the Fund has no right to appoint a director or otherwise exert any significant influence. In such cases, the Fund will be reliant on the existing management and board of directors of such companies, which may include representatives of other financial investors with whom the Fund is not affiliated and whose interests may conflict with the interests of the Fund. Additionally, the Fund may have limited ability to protect its position in such portfolio holdings.

The Adviser expects to make investments in companies that have incurred or are permitted to incur indebtedness, or that may issue equity securities that rank senior to the Fund's investment. By their terms, such instruments may provide that their holders are entitled to receive payments of dividends, interest or principal on or before the dates on which payments are to be made in respect of the Fund's investment. In the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a company in which an investment is made, creditors or holders of securities ranking senior to the Fund's investment in such Portfolio Company typically would be entitled to receive payment in full before distributions could be made in respect of the Fund's investment. After repaying creditors and senior security holders, the company's remaining assets may not be sufficient for repayment of amounts owed in respect of the Fund's investment. To the extent that any assets remain, holders of claims that rank equally with the Fund's investment would be entitled to share on an equal and ratable basis in distributions that are made out of those assets.

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***Investments in foreign companies may involve significant risks in addition to the risks inherent in U.S. investments.***

While the Fund intends to invest primarily in U.S. companies, it may invest on an opportunistic basis in certain non-U.S. companies, including those located in emerging markets, that otherwise meet its investment criteria. Investing in foreign companies, and particularly those in emerging markets, may expose the Fund to additional risks not typically associated with investing in U.S. issuers. These risks include changes in exchange control regulations; political and social instability; expropriation; nationalization of companies by foreign governments; imposition of foreign taxes (including withholding taxes) at potentially confiscatory levels; less liquid markets and less available information than is generally the case in the United States; higher transaction costs; less government supervision of exchanges, brokers, and issuers; less developed bankruptcy laws; difficulty in enforcing contractual obligations; lack of uniform accounting and auditing standards; and greater price volatility. Further, the Fund may have difficulty enforcing its rights as an equity holder in foreign jurisdictions. In addition, to the extent the Fund invests in non-U.S. companies, it may face greater exposure to foreign economic developments.

International trade tensions may arise from time to time which could result in trade tariffs, embargos or other restrictions or limitations on trade. The imposition of any actions on trade could trigger a significant reduction in international trade, an oversupply of certain manufactured goods, substantial price reductions of goods, and possible failure of individual companies or industries which could have a negative impact on the Fund's performance. Events such as these are difficult to predict and may or may not occur in the future.

In addition, the Fund's investments in foreign companies may be subject to economic sanctions or other government restrictions. The type and severity of sanctions and other similar measures, including counter sanctions and other retaliatory actions, that may be imposed could vary broadly in scope, and their impact is difficult to ascertain. These types of measures may include, but are not limited to, banning a sanctioned country or certain persons or entities associated with such country from global payment systems that facilitate cross-border payments, restricting the settlement of securities transactions by certain investors, and freezing the assets of particular countries, entities, or persons. The imposition of sanctions and other similar measures could, among other things, result in a decline in the value and/or liquidity of securities issued by the sanctioned country or companies located in or economically tied to the sanctioned country, downgrades in the credit ratings of the sanctioned country's securities or those of companies located in or economically tied to the sanctioned country, currency devaluation or volatility, and increased market volatility and disruption in the sanctioned country and throughout the world. Sanctions and other similar measures could directly or indirectly limit or prevent the Fund from buying and selling securities (in the sanctioned country and other markets), significantly delay or prevent the settlement of securities transactions, and adversely impact the Fund's liquidity and performance.

Although the Fund expects that most of its investments will be U.S. dollar-denominated, any investments denominated in a foreign currency will be subject to the risk that the value of a particular currency will change in relation to one or more other currencies. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation, and political developments.

 

***The Fund's ability to make follow-on investments may be limited.***

Following an initial investment in a Portfolio Company, the Fund may make additional investments in that Portfolio Company as "follow-on" investments, in order to: (1) increase or maintain in whole or in part the Fund's equity ownership percentage; (2) exercise warrants, options or convertible securities that were acquired in the original or subsequent financing; or (3) attempt to preserve or enhance the value of the Fund's investment.

The Fund may elect not to make follow-on investments or may otherwise lack sufficient funds to make those investments or lack access to desired follow-on investment opportunities. The Fund has the discretion to make any follow-on investments, subject to the availability of capital resources and of the investment opportunity. The failure to make follow-on investments may, in some circumstances, jeopardize the continued viability of a Portfolio Company and the Fund's initial investment, or may result in a missed opportunity for the Fund to increase the Fund's participation in a successful operation. Even if the Fund has sufficient capital to make a desired follow-on investment, the Fund may elect not to make a follow-on investment because it may not want to increase its concentration of risk, because it prefers other opportunities, or because the Fund is inhibited by compliance with the desire to qualify to maintain the Fund's status as a RIC or lack access to the desired follow-on investment opportunity.

In addition, the Fund may be unable to complete follow-on investments in its Portfolio Companies that have conducted an IPO as a result of regulatory or financial restrictions.

**Tax Risks**

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***We will be subject to U.S. federal income tax imposed at corporate rates on our income and gains if we are unable to qualify as a RIC.***

We intend to elect to be treated as a RIC and intend to operate in a manner so as to continue to qualify for the U.S. federal income tax treatment applicable to RICs. As a RIC, we generally will not be subject to U.S. federal income tax on our income and gain that we timely distribute (or are deemed to distribute) to our stockholders as dividends. We will be subject to U.S. federal income tax imposed at corporate rates on any income or gains that we do not timely distribute (or are deemed to distribute) to our stockholders. To qualify as a RIC, we must meet several requirements, including certain source of income, asset diversification and annual distribution requirements. In addition, we may also be subject to certain U.S. federal excise taxes, as well as state, local and foreign taxes (including withholding taxes).

We will satisfy the source of income requirement if we obtain at least 90% of our annual gross income from dividends, interest, payments with respect to securities loans, gains from the sale of stock or securities, net income from an interest in a qualified publicly traded partnership, or other income derived from the business of investing in stock or securities.

We will satisfy the annual distribution requirement if we distribute to our stockholders on a timely basis generally an amount equal to at least 90% of our investment company taxable income for each year. Under certain circumstances, we may be restricted from making distributions necessary to qualify as a RIC. If we are unable to obtain cash from other sources, we may fail to qualify as a RIC. Because we must make distributions to our stockholders as described above, such amounts, to the extent a stockholder is not participating in our dividend reinvestment option, will not be available to us to make investments.

We will satisfy the asset diversification requirement if, at the end of each quarter of our taxable year:

● At least 50% of the value of our total assets consists of cash, cash equivalents (including receivables), U.S. government securities, securities of other RICs, and other securities, provided that such other securities or any one issuer do not represent more than 5% of the value of our total assets or more than 10% of the outstanding voting securities of the issuer; and

● No more than 25% of the value of our assets can be invested in (i) the securities, other than U.S. government securities or securities of other RICs, of one issuer, (ii) the securities, other than securities of other RICs, of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses, or (iii) the securities of certain "qualified publicly traded partnerships" (as defined in the Code).

Failure to meet these tests may result in our having to (a) dispose of certain investments quickly or (b) raise additional capital to prevent the loss of RIC status. Because most of our investments are in private companies and are generally illiquid, any such dispositions may be at disadvantageous prices and may result in losses. Also, the rules applicable to our qualification as a RIC are complex with many areas of uncertainty. Accordingly, no assurance can be given that we will continue to qualify as a RIC. If we fail to qualify as a RIC for any reason and become subject to regular "C" corporation income tax, we will be subject to U.S. federal income tax on our income and gains imposed at corporate rates. The resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions. Such a failure would have a material adverse effect on us and our stockholders. The Code provides some relief from RIC disqualification due to failures to satisfy these requirements, although there may be additional taxes due in such cases. We cannot assure you that we would qualify for any such relief should we fail these requirements.

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***We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.***

For U.S. federal income tax purposes, we may be required to recognize taxable income in circumstances in which we do not receive a corresponding payment in cash. We may also have to include in income other amounts that we have not yet received in cash, such as unrealized appreciation for foreign currency forward contracts and deferred loan origination fees that are paid after origination of the loan or are paid in non-cash compensation such as warrants or stock. Furthermore, we may invest in non-U.S. corporations (or other non-U.S. entities treated as corporations for U.S. federal income tax purposes) that could be treated under the Code and U.S. Treasury regulations as "passive foreign investment companies" or "controlled foreign corporations." The rules relating to investment in these types of non-U.S. entities are designed to limit deferral and generally require the current inclusion of income derived by the entity. In certain circumstances, this could require us to recognize income where we do not receive a corresponding payment in cash.

We anticipate that a portion of our income may constitute income required to be included in taxable income prior to receipt of cash. Because such amounts accrued will be included in our investment company taxable income for the year of the accrual, we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution Requirement (defined below), even if we will not have received any corresponding cash amount. As a result, we may have difficulty meeting the Annual Distribution Requirement necessary to maintain RIC tax treatment under the Code. We may have to sell some of our investments at times and/or at prices we would not consider advantageous, raise additional debt or equity capital, make a partial share distribution, or forgo new investment opportunities for this purpose. If we are not able to obtain cash from other sources, and choose not to make a qualifying share distribution, we may fail to qualify for RIC tax treatment and thus become subject to U.S. federal income tax.

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***If we are not treated as a "publicly offered regulated investment company," certain stockholders will be treated as having received certain income and their allocable share of expenses, which may not be deductible.***

A "publicly offered regulated investment company" is a RIC whose shares are either (i) continuously offered pursuant to a public offering within the meaning of Section 4 of the Securities Act, (ii) regularly traded on an established securities market or (iii) held by at least 500 persons at all times during the taxable year. While we anticipate that we will constitute a publicly offered RIC, there can be no assurance that we will in fact so qualify for any of our taxable years. If we are not treated as a publicly offered regulated investment company for any calendar year, each U.S. shareholder that is an individual, trust or estate will be treated as having received a dividend from us in the amount of such U.S. shareholder's allocable share of certain of our expenses for the calendar year, and these fees and expenses will be treated as miscellaneous itemized deductions of such U.S. shareholder. For taxable years beginning after 2017, miscellaneous itemized deductions generally are not deductible by a U.S. shareholder that is an individual, trust or estate.

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***We cannot predict how new tax legislation will affect us, our investments, or our stockholders, and any such legislation could adversely affect our business.***

Legislative or other actions relating to taxes could have a negative effect on us. The laws pertaining to U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Treasury Department. The likelihood of any such legislation being enacted is uncertain. New legislation and any U.S. Treasury regulations, administrative interpretations or court decisions interpreting such legislation could have adverse tax consequences, such as significantly and negatively affecting our ability to qualify for tax treatment as a RIC or negatively affecting the U.S. federal income tax consequences.

**Risks Related to Leverage**

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***We may borrow money, which may magnify the potential for loss and may increase the risk of investing in us.***

As part of our business strategy, we may borrow from and issue senior debt securities to banks, insurance companies and other lenders or investors. Holders of these senior securities will have fixed-dollar claims on our assets that are superior to the claims of our stockholders. If the value of our assets decreases, leverage would cause our NAV to decline more sharply than it otherwise would have if we did not employ leverage. Similarly, any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to make common stock dividend payments.

Our ability to service any borrowings that we incur will depend largely on our financial performance and will be subject to prevailing economic conditions and competitive pressures. Moreover, the Management Fee will be payable based on our average gross assets including assets purchased with borrowed funds, if any, which may give our Adviser an incentive to use leverage to make additional investments. The amount of leverage that we employ will depend on our Adviser's and our Board's assessment of market and other factors at the time of any proposed borrowing. We cannot assure you that we will be able to obtain credit at all or on terms acceptable to us, which could affect our return on capital.

In addition to having fixed-dollar claims on our assets that are superior to the claims of our common stockholders, obligations to lenders may be secured by a first priority security interest in our portfolio of investments and cash.

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***Regulations governing our operation as a registered closed-end management investment company affect our ability to raise additional capital and the way in which we do so. The raising of debt capital may expose us to risks, including the typical risks associated with leverage.***

We may in the future issue debt securities or additional preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as "senior securities," up to the maximum amount permitted by the 1940 Act. Under the provisions of the 1940 Act, we are permitted, as a registered closed-end management investment company, to issue senior securities provided we meet certain asset coverage ratios (i.e., 300% for senior securities representing indebtedness and 200% in the case of the issuance of preferred stock). If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. Also, any amounts that we use to service our indebtedness would not be available for distributions to our stockholders. Furthermore, if we issue senior securities, we will be exposed to typical risks associated with leverage, including an increased risk of loss. If we issue preferred stock, such stock would rank "senior" to our shares of common stock, preferred stockholders would have separate voting rights on certain matters and have other rights, preferences and privileges more favorable than those of our stockholders, and we could be required to delay, defer or prevent a transaction or a change of control that might involve a premium price for holders of our common stock or otherwise be in your best interest.

On December 31, 2025, the Fund entered into a Credit Agreement with Stifel Bank, which will expire on December 31, 2027. Subject to the terms of the Credit Agreement, the Fund may borrow up to an aggregate amount of $20,000,000. Interest accrues on principal drawn under the Credit Facility, which is payable on each loan maturity date. The interest rate is the Prime Rate, as of the date of funding (6.75% at December 31, 2025) plus 1.00%. The Fund will pay a 0.25% commitment fee on the maturity date equal to the difference between the average commitment amount and the average daily balance of the principal borrowed. The Fund intends to use the Credit Facility for short term borrowing needs, and does not intend to make investments using funds borrowed under the Credit Facility. As of February 9, 2026, the Fund had $20,000,000 available to be borrowed and $0 outstanding borrowings under the Credit Facility. The Fund estimates that interest payments on the Credit Facility for the Fund's current fiscal year will be less than one basis point, based on anticipated usage of the Credit Facility throughout the year.

We are not generally able to issue and sell our common stock at a price below the then current NAV per share (exclusive of any distributing commission or discount). We may, however, sell our common stock at a price below the then current NAV per share if the Board determines that such sale is in our best interests and a majority of our stockholders approves such sale. In addition, we may generally issue additional shares of common stock at a price below NAV in rights offerings to existing stockholders, in payment of dividends and in certain other limited circumstances. If we raise additional funds by issuing more common stock, then the percentage ownership of our stockholders at that time will decrease, and you may experience dilution.

**Risks Related to the Listing of Our Shares**

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***Our direct listing differs significantly from listings arising from an underwritten IPO.***

Prior to the opening of trading of our shares of common stock on the Exchange, there will be no book-building process and no price at which underwriters initially sell shares to the public to help inform efficient and sufficient price discovery with respect to the opening trades on the Exchange. The direct listing of our shares of common stock on the Exchange differs from the listing of shares arising from an underwritten IPO in several significant ways, which include, but are not limited to, the following:

● <u>There are no underwriters</u>. Therefore, buy and sell orders submitted prior to and at the opening of trading of our common stock on the Exchange will not have the benefit of being informed by a published price range or a price at which the underwriters initially sell shares to the public, as would be the case in an underwritten IPO. Moreover, there will be no underwriters assuming risk in connection with the initial resale of shares of our common stock. Unlike in a traditional underwritten offering, this registration statement does not include the registration of additional shares that may be used at the option of the underwriters in connection with overallotment activity. Moreover, we will not engage in, and have not and will not, directly or indirectly, engage in any special selling efforts or stabilization or price support activities in connection with any sales made pursuant to this registration statement. In an underwritten IPO, the underwriters may engage in "covered" short sales in an amount of shares representing the underwriters' option to purchase additional shares. To close a covered short position, the underwriters purchase shares in the open market or exercise the underwriters' option to purchase additional shares. In determining the source of shares to close the covered short position, the underwriters typically consider, among other things, the price of shares available for purchase in the open market as compared to the price at which they may purchase shares through the underwriters' option to purchase additional shares. Purchases in the open market to cover short positions, as well as other purchases underwriters may undertake for their own accounts, may have the effect of preventing a decline in the trading price of shares of common stock following the underwritten offering. Given that there will be no underwriters' option to purchase additional shares and no underwriters engaging in stabilizing transactions with respect to the trading of our common stock on the Exchange, there could be greater volatility in the trading price of our common stock during the period immediately following the listing.

● <u>There is not a fixed or determined number of shares of common stock available for sale in connection with the registration and the listing of our shares of common stock</u>. Therefore, there can be no assurance that the Selling Stockholders or other existing stockholders that may seek to sell their shares pursuant to Rule 144 of the Securities Act of 1933, as amended (the "Securities Act") will sell any of their shares of common stock, and there may initially be a lack of supply of, or demand for, shares of our common stock on the Exchange. Alternatively, the Selling Stockholders or existing stockholders may choose to sell a large number of shares of common stock in the near term, resulting in potential oversupply of our common stock, which could adversely impact the trading price of our common stock once listed on the Exchange and thereafter.

● <u>We will not conduct a traditional "roadshow" with underwriters or host an "investor day" prior to the opening of trading of our common stock on the Exchange</u>. Unlike firm commitment underwritten offerings, we do not intend to conduct a traditional roadshow to potential investors, and unlike other direct listings of shares, we do not intend to host an "investor day" or engage in investor education meetings that may aid in determining the appropriate price at which our shares are initially offered on the Exchange when they begin trading. We will instead rely on one or more designated market makers to determine the appropriate price at which our shares will initially trade. As a result, there may not be efficient or sufficient price discovery with respect to our common stock or sufficient demand among potential investors immediately after our listing, which could result in a more volatile trading price of our common stock.

Such differences from an underwritten IPO could result in a volatile trading price for our common stock and uncertain trading volume, which may adversely affect your ability to sell any shares of common stock that you may purchase.

 

***Our stock price may be volatile, and could decline significantly and rapidly.***

The listing of our common stock and the registration of the Selling Stockholders' shares of common stock is a novel process that is not an underwritten IPO.

Prior to the opening trade, there will not be a price at which underwriters initially sell shares of common stock to the public as there would be in an underwritten IPO. The absence of a predetermined IPO price could impact the range of buy and sell orders collected by the Exchange from various broker-dealers. Consequently, upon listing on the Exchange, the trading price of our common stock may be more volatile than in an underwritten IPO and could decline significantly and rapidly.

Further, if the trading price of our common stock is above the level that investors determine is reasonable for our common stock, some investors may attempt to short our common stock after trading begins, which would create additional downward pressure on the trading price of our common stock, and there will be more ability for such investors to short our common stock in early trading than is typical for an underwritten public offering given the limited amount of contractual lock-up agreements or other restrictions on transfer.

The trading price of our common stock following the listing also could be subject to wide fluctuations in response to numerous factors in addition to the ones described in the preceding risk factors, many of which are beyond our control, including:

● actual or anticipated fluctuations in our financial condition, results of operations, or operating metrics and those of our competitors;

● the number of shares of our common stock made available for trading;

● failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company, or variance in our financial performance from expectations of securities analysts;

● changes in our projected operating and financial results;

● future sales of our common stock by us or our stockholders;

● changes in our Board, senior management, or key personnel;

● the trading volume of our common stock;

● general economic and market conditions; and

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

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***An active, liquid, and orderly market for our common stock may not develop or be sustained. You may be unable to sell your shares of common stock at or above the price at which you purchased them.***

We currently expect our common stock to be listed and traded on the Exchange within 10 business days following the effectiveness of this Registration Statement on Form N-2. Prior to listing on the Exchange, there has been no public market for our common stock. Moreover, consistent with Regulation M and other federal securities laws applicable to our listing, the Selling Stockholders have no specific plans to sell shares in the public market following the listing, and we have not discussed with potential investors their intentions to buy our common stock in the open market. While our common stock may be sold after our listing on the Exchange by the Selling Stockholders pursuant to this Prospectus or by our other existing stockholders in accordance with Rule 144 of the Securities Act, unlike an underwritten IPO, there can be no assurance that the Selling Stockholders or other existing stockholders will sell any of their shares of common stock, and there may initially be a lack of supply of, or demand for, common stock on the Exchange. Conversely, there can be no assurance that the Selling Stockholders and other existing stockholders will not sell all of their shares of common stock, resulting in an oversupply of our common stock on the Exchange. In the case of a lack of supply of our common stock, the trading price of our common stock may rise to an unsustainable level. Further, institutional investors may be discouraged from purchasing our common stock if they are unable to purchase a block of our common stock in the open market in a sufficient size for their investment objectives due to a potential unwillingness of our existing stockholders to sell a sufficient amount of common stock at the price offered by such institutional investors and the greater influence individual investors have in setting the trading price. If institutional investors are unable to purchase our common stock in a sufficient amount for their investment objectives, the market for our common stock may be more volatile without the influence of long-term institutional investors holding significant amounts of our common stock. In the case of a lack of demand for our common stock, the trading price of our common stock could decline significantly and rapidly after our listing. Therefore, an active, liquid, and orderly trading market for our common stock may not initially develop or be sustained, which could significantly depress the trading price of our common stock and/or result in significant volatility, which could affect your ability to sell your shares of common stock.

**Risks Related to Our Securities and This Offering**

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***Common stock of closed-end management investment companies has in the past frequently traded at discounts to their NAVs, and we cannot assure you that the market price of our shares will not decline below our NAV per share.***

Common stock of closed-end management investment companies have in the past frequently traded at discounts to their respective NAVs and our common stock may also be discounted in the market. This characteristic of closed-end management investment companies is separate and distinct from the risk that our NAV per share may decline. We cannot predict whether shares of our common stock will trade above, at or below our NAV per share. In addition, if our common stock trades below our NAV per share, we will generally not be able to sell additional common stock to the public at market price except (1) in connection with a rights offering to our existing stockholders, (2) with the consent of the majority of our common stockholders, (3) upon the conversion of a convertible security in accordance with its terms or (4) under such circumstances as the SEC may permit.

**DISTRIBUTIONS**

The timing and amount of our distributions, if any, will be determined by our Board. Any distributions to our stockholders will be declared out of assets legally available for distribution. We intend to focus on making investments that provide the opportunity for capital gains. As a consequence, we do not anticipate that we will pay distributions on a quarterly or other basis or become a predictable distributor of distributions, and we expect that our distributions, if any, will be much less consistent than the distributions of registered investment companies that primarily make debt investments. The specific tax characteristics of our distributions will be reported to stockholders after the end of the calendar year.

To qualify as a RIC, we must timely distribute (or be treated as distributing) in each taxable year an amount equal to at least the sum of (i) 90% of our investment company taxable income (which includes, among other items, dividends, interest, the excess of any net short-term capital gains over net long-term capital losses, as well as other taxable income, excluding any net capital gains reduced by deductible expenses) and (ii) 90% of our net tax-exempt income for that taxable year. As a RIC, we generally will not be subject to U.S. federal income tax on our investment company taxable income and net capital gains that we timely distribute to stockholders. In addition, to avoid the imposition of a nondeductible 4% U.S. federal excise tax, we must distribute (or be treated as distributing) in each calendar year an amount at least equal to the sum of:

● 98% of our net ordinary income, excluding certain ordinary gains and losses, recognized during a calendar year;

● 98.2% of our capital gain net income, adjusted for certain ordinary gains and losses, recognized for the twelve-month period ending on October 31 of such calendar year; and

● 100% of any ordinary income and capital gain net income that we recognized in preceding years, but were not distributed in such years, and on which we paid no U.S. federal income tax.

We may incur in the future such excise tax on a portion of our income and gains. While we intend to distribute income and capital gains to minimize exposure to the 4% U.S. federal excise tax, we may not be able to, or may not choose to, distribute amounts sufficient to avoid the imposition of the tax entirely. In that event, we will be liable for the tax only on the amount by which we do not meet the foregoing distribution requirement.

**THE FUND'S INVESTMENTS**

**Investment Objective**

The Fund's investment objective is long-term capital appreciation. The Adviser believes that a select number of technology companies possess the potential to become generational leaders, significantly shaping global markets and economies over extended periods. These companies are creating new markets, such as Space or Artificial Intelligence, or are disrupting existing markets such as FinTech or Software. Emerging technologies, such as artificial intelligence, are accelerating transformative changes across industries. These companies have reached scale once reserved for the public markets. They are led by strong founders who are building these businesses for the long term. However, due to evolving dynamics within the global capital markets, these high-potential companies are increasingly electing to remain private for longer durations, limiting access for most investors around the globe.

The Fund seeks to provide investors with access to these select, privately-held generational technology companies that are anticipated to achieve sustained growth and create enduring value for stockholders. The Fund will differentiate from other private technology investment vehicles by strategically concentrating its holdings in the smallest number of generational companies permitted by applicable regulations. By maintaining a highly concentrated portfolio, typically consisting of approximately 15 material positions that create exposure to significant late-stage private technology companies, the Adviser seeks to optimize the Fund's potential for outsized investment returns.

The Adviser believes that the Fund is ideally positioned to deliver on its investment objective for several key reasons:

● Access to private technology markets through an investment vehicle providing public market liquidity for private market exposure.

● Curated portfolio of late-stage, next-generation private tech leaders previously inaccessible to most investors.

● Portfolio constructed and managed by seasoned venture capital investors with 15-year track record successfully accessing secondary investment opportunities.

● Focused strategy and analytical approach leverages the Adviser's expertise to target the most validated, high-potential companies.

There can be no assurance that our investment objective will be achieved or that our investment program will be successful. Our investment objective may be changed by our Board without prior stockholder approval.

**Investment Strategy and Types of Investments**

In the venture capital asset class, returns are characterized by a "power law" distribution, in which a small number of portfolio companies, comprising approximately 10% of portfolio investments, generate a disproportionate share of overall investment gains. While many early- and growth-stage companies may fail or deliver modest returns, this limited subset—often referred to as "outliers"—can achieve exceptional outcomes and materially impact the performance of a portfolio. The Fund's strategy is designed to identify companies that have demonstrated their outlier potential and concentrate exposure in them, as the Adviser believes that meaningful participation in a small number of transformative private technology companies offers the most compelling opportunity for long-term capital appreciation. The name of the Fund - Powerlaw - emphasizes this well documented fact about venture capital returns.

Our core investment themes specifically target sectors that the Adviser believes are poised for transformative growth, including next-generation dominant enterprise SaaS platforms, leading consumer platforms, modern aerospace and defense technologies, and companies at the forefront of artificial intelligence innovation. This thematic and concentrated approach positions the Fund to capitalize on substantial growth opportunities in these rapidly evolving sectors.

**Investment Criteria**

The Fund's investment strategy focuses on identifying and investing in select outlier companies by leveraging the extensive experience of the Adviser's personnel and Akkadian's position in the venture capital ecosystem. We specifically will target a small group of companies characterized by:

● Exceptional revenue scale within the venture capital ecosystem, typically generating annual revenues exceeding $500 million, although in exceptional and limited circumstances we will consider companies at all level of development.

● Market capitalization surpassing $5 billion, with a focus on companies with more than $10 billion of market capitalization.

● Globally recognized and respected brand identities.

● Significant and durable competitive advantages with the potential to compound growth for many years.

● A track record of raising substantial capital, typically in excess of $500 million, from highly regarded venture capital institutions.

● Consistent and sustained annual revenue growth exceeding 20% in large and growing addressable markets.

● Demonstrated robust investor demand in the top decile of companies within secondary market marketplaces.

● Potential to be durable, high-performance public companies.

The aforementioned criteria represent desired targets. We cannot guarantee that all of the Fund's Portfolio Companies will meet the desired targets.

Late-stage technology companies are increasingly choosing to delay IPOs and remain private for extended periods. This shift is driven by several key factors, including abundant private market capital, allowing these companies to raise significant funds without the regulatory scrutiny and public reporting requirements that accompany an IPO. Remaining private enables them to focus more strategically on long-term growth initiatives without the pressure to meet short-term earnings targets. Additionally, private companies can maintain greater confidentiality regarding proprietary technology and business strategies, thereby protecting their competitive advantages. Furthermore, liquidity solutions such as secondary market transactions provide early investors and employees with partial liquidity, reducing the urgency of public market access. Collectively, these factors encourage leading technology companies to delay public listings, resulting in prolonged periods of private operation and larger valuations before entering public markets. The Fund is designed to provide access to these companies at a relatively early stage of their growth and value creation trajectory.

Once the Adviser identifies the outlier companies, the Adviser then conducts a rigorous due diligence process. The Adviser analyzes financial performance using publicly available information, secondary market pricing, interviews with industry experts and former employees, reviews of capitalization structures and analyses of the company's addressable market and competitive threats.

This disciplined selection approach positions the Fund to capture value from companies that the Adviser believes are poised to deliver substantial, long-term returns to our investors.

**Investment Structures**

As certain companies grow and experience significant increased value while remaining private, employees and other stockholders may seek liquidity by selling shares directly to a third party or to a third party via a secondary marketplace. Sales of shares in private companies are typically governed by contractual transfer restrictions and may be further restricted by provisions in company charter documents, investor rights of first refusal and co-sale and company employment and trading policies. The Adviser believes that the reputation of its investment professionals within the industry and established track record of secondary investing affords it a favorable position when seeking approval for a purchase of shares subject to such limitations.

 

*Direct equity investments.* We will seek direct investments in private companies. There is a large market among emerging private companies for equity capital investments. We will seek to be a source of such equity capital as a means of investing in these companies and look for opportunities to invest alongside other venture capital and private equity investors with whom we have established relationships.

*Private secondary marketplaces and direct share purchases.* Over the past 15 years, Akkadian has developed relationships with over 40 brokers who provide it and its affiliated entities access to various opportunities. In addition, the Adviser may use private secondary marketplaces such as Hiive Markets Limited, Forge Securities LLC, NPM Securities, LLC, and Zanbato Securities LLC, which have registered with the SEC's Alternative Trading System by filing a Form ATS with the SEC and which are registered broker-dealers and FINRA members as reported by FINRA's Brokercheck online service. Such private secondary marketplaces are used to source introductions to potential sellers of (i) equity and equity-related interests in privately held companies that meet the Adviser's investment criteria and (ii) equity interests in SPVs that provide indirect access to equity and equity-related interests in privately held companies that meet the Adviser's investment criteria. Upon receiving such introductions via the private secondary marketplaces, the Adviser (a) negotiates, documents, and closes the transactions directly with the sellers or via the corresponding private secondary marketplace and (b) if applicable pays a commission to the private secondary marketplace. The Fund will also purchase shares directly from stockholders, including current or former employees, of privately-held companies that meet the Adviser's investment criteria, by leveraging Akkadian's relationships at the target companies in the broader venture capital community.

The Fund will seek to deploy capital primarily in the form of non-controlling equity and equity-linked investments in Portfolio Companies. The term "equity" includes common shares, preferred shares, and convertible securities. The term "equity-linked security" includes securities, the returns on which are linked to the performance of an equity security.

The Fund seeks to invest directly in the equity securities of Portfolio Companies, however, in order to increase its access to Portfolio Companies, the Fund may also invest in (i) SPVs and similar investment structures, (ii) forward contracts for future delivery of stock, swaps or other synthetic equity agreements, and (ii) Private Funds to gain diversified exposure to Portfolio Companies or to obtain co-investment opportunities from Private Fund managers. In addition, the Fund may purchase equity interests in SPVs in secondary transactions. The Fund may invest in Portfolio Companies through secondary purchases and exchanges from selling stockholders of such companies and direct purchases from such Portfolio Companies.

The Fund may make certain investments through one or more SPVs typically organized as limited liability companies or limited partnerships. Certain SPVs in which the Fund may invest are wholly-owned and solely controlled by the Fund and were (or in the future may be) formed to manage investments with increased flexibility, simplify transfers of economic interests, and mitigate investment-specific risks. Wholly-owned SPVs are consolidated with the Fund for purposes of financial reporting, and, on a consolidated basis with the Fund, will be compliant with Section 8, Section 17 and Section 18 of the 1940 Act. The Fund has (and may in the future) invest in SPVs, which are controlled by an external manager, but for which the Fund has special rights, such as information rights, rights to approve purchases or dispositions of assets, and rights to approve the admission of additional investors, pursuant to the SPV's governing documents. The Fund has (and may in the future) invest in SPVs that are controlled by an external manager and for which the Fund has no such special rights.

Investors in the Fund gain economic participation in underlying SPV investments indirectly through their investment in the Fund. The Fund is subject to the governing documents and the terms specific to each SPV.

Investors should be aware that the use of SPVs introduces additional layers of structural complexity, and potential risks related to liquidity, transparency, and valuation may exist. These risks are outlined in greater detail within the risk disclosures of this registration statement.

In limited circumstances, certain investments of the Fund may be structured through a Multi-Layer SPV. Under this arrangement, the Fund initially invests in an intermediary vehicle typically organized as a limited liability company or limited partnership. That intermediary vehicle may invest directly in a Primary SPV, which directly owns securities of the underlying Portfolio Company or may invest in additional intermediary vehicles, which ultimately invest directly in a Primary SPV.

This Multi-Layer structure facilitates efficient management of investment terms, eases compliance with transfer restrictions and regulatory requirements, and tax optimization. Specifically, it provides the Fund with increased flexibility to participate in complex secondary market transactions, manage liquidity events, accommodate investor-specific regulatory constraints, and optimize capital calls and distributions.

The Fund retains economic exposure to the underlying portfolio investments through its ownership of interests in the Primary SPV, subject to the terms and agreements governing the respective SPVs. Investors in the Fund should carefully consider the additional structural complexity and potential risks arising from such arrangements.

**Portfolio Construction**

The Fund is designed to provide access to what the Adviser believes are the highest quality and highest-potential privately held technology companies. To optimize for our long-term capital appreciation objective, we intend to construct our portfolio to achieve maximum allowable concentration consistent with the diversification requirements applicable to regulated investment companies ("RICs") for U.S. federal income tax purposes. We anticipate allocating our largest positions to the two companies that we believe possess the strongest long-term growth potential, with these two holdings each representing up to 25% of the Fund's assets. Our remaining positions are expected to individually range from approximately 1% to 10% of the portfolio.

These allocations are based on our assessments of our Portfolio Companies and the availability of exposure to them. We cannot guarantee that we will be able to maintain such allocations.

Once we have established an initial position in a Portfolio Company, we may choose to increase our stake through subsequent purchases. Maintaining a concentrated portfolio is a key to our success, and as a result we constantly evaluate the composition of our investments and our pipeline to ensure we are exposed to the strongest companies within our target segments.

The Adviser's primary strategy is to invest in the equity securities of Portfolio Companies and to hold such securities until a liquidity event with respect to such Portfolio Company occurs, such as an IPO or a merger or acquisition transaction. Notwithstanding the foregoing, if the Adviser believes it to be in the best interest of the Fund, the Fund may (i) continue to hold securities of a Portfolio Company following a liquidity event until such time that the Adviser determines to sell the securities, or (ii) sell such securities prior to the occurrence of a liquidity event. The late-stage Portfolio Companies in which the Fund invests are generally expected to have a liquidity event within one to six years of such securities purchase by the Fund, and the Adviser takes the expected timing of any such event into consideration when it is making investment decisions on behalf of the Fund. The timing of liquidity events, however, is difficult if not impossible, to predict with accuracy.

The Fund expects that most of its investments will be made in U.S. domestic Portfolio Companies (i.e., companies organized in the United States), but it is not prohibited from investing in Portfolio Companies organized in foreign jurisdictions, including those organized in emerging market countries. The Fund defines emerging market countries to mean countries included in the MSCI Emerging Markets Index.

The Fund primarily invests in securities of issuers involved primarily in technology, software, artificial intelligence, digital media, internet services, semiconductor manufacturing, communications equipment, information technology, and related industries. The Fund's policy of concentrating in the groups of industries in the technology sector increases its exposure to the economic, regulatory, and competitive risks associated with this sector.

The Adviser expects that the Fund's holdings of equity securities may require several years to appreciate in value, and there can be no assurance that such appreciation will occur. Due to the illiquid nature of most of the Fund's investments and transfer restrictions that equity securities are typically subject to, the Fund may not be able to sell these securities at times when the Fund deems it necessary to do so, or at all. The equity securities in which the Fund invests will often be subject to drag-along rights, which permit a majority stockholder in the company to force minority stockholders to join a company sale (which may be at a price per share lower than our initial purchase price). In addition, the Fund will often be subject to lock-up provisions that prohibit the Fund from selling its equity investments into the public market for specified periods of time after an IPO of a Portfolio Company, typically 180 days. As a result, the market price of securities that the Fund holds may decline substantially before the Fund is able to sell these securities following an IPO. In addition, many of our investments are made in SPVs that require the approval of an external manager to transfer our interests or obtain stock following an IPO. We do not control the timing of cash or stock distributions from all of the external managers.

**Investment Process**

The Adviser uses its own extensive network, internal research and analysis to identify Portfolio Companies that satisfy its investment criteria. The Adviser's internal research and analysis leverages insights from diverse sources, including external research and industry relationships to identify and take advantage of trends that have ramifications for individual companies or entire industries.

Once a Portfolio Company is identified, the Adviser performs extensive due diligence on that company. The Adviser assesses key indicators of each company's health and growth among several other factors. Indicators that will be used include the company's total addressable market, market growth rate, recent financing rounds, company growth rate, competitive positioning, business model, network effects and economies of scale, any regulatory and legal concerns, as well as other indicators that may be strongly correlated with higher or lower valuations.

As part of the due diligence process, the Adviser will also review the transparency of financial disclosures, structure of contemplated transactions (including class of stock being purchased), recent and historical secondary market transaction pricing, and other investment-specific due diligence.

For each potential transaction, the Adviser conducts a comprehensive counterparty diligence process designed to mitigate risks and ensure clarity of ownership. Leveraging Akkadian's 15 years of industry experience, the Adviser prioritizes sourcing opportunities from trusted and well-established channels. When evaluating investments involving SPVs or other external entities, the Adviser's due diligence includes an in-depth review of all legal and transaction-related documentation, an assessment of the general partner's management capabilities and track record, thorough reference checks, and verification of ownership. For transactions directly involving individuals, the Adviser's process further incorporates background and credit checks, reviews of all relevant option documents—including option grant agreements, proof of exercise, and share certificates—and, where possible, personal reference checks. The objective of the Adviser's rigorous diligence approach is to fully understand the Fund's counterparties and proactively mitigate any potential issues related to future share redemption or ownership disputes. This process is managed by Peter Smith, who acts as the Adviser's general counsel. He is also a co-founder of Akkadian and has been in this role for 15 years.

After making an investment, the Adviser will monitor the financial trends of the Portfolio Company to assess the Fund's exposure to individual companies as well as to evaluate overall portfolio quality. The Adviser will establish valuation targets at the portfolio level and for gross and net exposures with respect to specific companies and industries within the Fund's overall portfolio. If a company is underperforming, the Adviser may decide to sell the Fund's interest in the private markets, and may realize a loss. If such a sale occurs, the Adviser will, in a reasonable period of time, add a new company to the portfolio.

**Additional Information Regarding Types of Investments**

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***Equity Securities***

We invests (i) in the equity securities (common and/or preferred stock, or equity-linked securities convertible into such equity securities) of operating private companies or (ii) in the equity securities of SPVs, which invest in the equity securities (common and/or preferred stock, or equity-linked securities convertible into such equity securities) of operating private companies. Common stock represents an equity ownership interest in a company. We may directly hold or have exposure via an SPV to stocks of issuers of any size, provided such issuers have a market capitalization greater than $1 billion. Because we will ordinarily have exposure to stocks, historical trends would indicate that our portfolio and investment returns will be subject at times, and over time, to higher levels of volatility and market and issuer-specific risk than if it invested exclusively in debt securities.

Some of our investments in equity securities may be held through SPVs, which are private investment vehicles designed to provide investors access to securities of private companies. SPVs may be organized by us, or an affiliate, or organized by managers unaffiliated with us and offer investors the opportunity to pool their collective capital to invest in a private company's securities. SPVs are generally organized as limited liability companies, and the investors are members of the limited liability company, and, for that reason, the rights of SPV investors are documented in the individual SPV's operating agreement, subject to the terms of any side letters entered into between an SPV investor and the manager.

SPV offerings are private placements conducted pursuant to Regulation D under the Securities Act to a limited number of accredited investors. In connection with an investment in an SPV, we would be one of many investors and not privy to the identity of other investors. The underlying assets of an SPV are the securities of the private company the SPV was formed to invest in, and, consequently, the value of an SPV investment generally equals the fair value of those underlying securities, after discounting to take into account any fees paid to the SPV. SPV investors typically pay fees to the SPV manager to cover necessary operating and offering-related costs; however, as a result of our Adviser's relationships with a number of SPV sponsors, we have often been able to negotiate favorable fee terms in side letters, which, in some cases, entirely eliminates the fees that we would otherwise pay.

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***Restricted and Illiquid Investments***

We may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. Liquidity of an investment relates to the ability to dispose easily of the investment and the price to be obtained upon disposition of the investment, which may be less than would be obtained for a comparable more liquid investment.

Illiquid investments may trade at a discount from comparable, more liquid investments. Illiquid investments are subject to legal or contractual restrictions on disposition or lack an established secondary trading market. Investment of our assets in illiquid investments may restrict our ability to dispose of our investments in a timely fashion and for a fair price as well as our ability to take advantage of market opportunities.

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***Private Company Investments***

We anticipate making significant investments in late-stage private companies. Late stage companies are those that have demonstrated sustainable business operations and generally have a well-known product or service with a strong market presence. Late-stage private companies have generally had large cash flows from their core business operations and are expanding into new markets with their products or services. Late-stage private companies may also be referred to as "pre-IPO companies." We may invest in equity securities or debt securities, including debt securities issued with warrants to purchase equity securities or that are convertible into equity securities, of private companies. We may enter into private company investments identified by the Adviser or may co-invest in private company investment opportunities owned or identified by other third party investors, such as private equity firms, with which neither we nor the Adviser is affiliated.

 

***Traditional Preferred Equity Securities***

Traditional preferred securities generally pay fixed or adjustable rate dividends to investors and generally have a "preference" over common stock in the payment of dividends and the liquidation of a company's assets. This means that a company must pay dividends on preferred stock before paying any dividends on its common stock. In order to be payable, distributions on such preferred securities must be declared by the issuer's board of directors. Income payments on typical preferred securities currently outstanding are cumulative, causing dividends and distributions to accumulate even if not declared by the board of directors or otherwise made payable. In such a case all accumulated dividends must be paid before any dividend on the common stock can be paid. However, some traditional preferred stocks are non-cumulative, in which case dividends do not accumulate and need not ever be paid. A portion of the portfolio may include investments in non-cumulative preferred securities, whereby the issuer does not have an obligation to make up any arrearages to its stockholders. Should an issuer of a non-cumulative preferred stock held by us determine not to pay dividends on such stock, the amount of dividends we pay may be adversely affected. There is no assurance that dividends or distributions on the preferred securities in which we invest will be declared or otherwise made payable.

Preferred stockholders usually have no right to vote for corporate directors or on other matters. Shares of preferred stock have a liquidation value that generally equals the original purchase price at the date of issuance. The market value of preferred securities may be affected by favorable and unfavorable changes impacting companies in the utilities and financial services sectors, which are prominent issuers of preferred securities, and by actual and anticipated changes in tax laws, such as changes in corporate income tax rates or the "Dividends Received Deduction." Because the claim on an issuer's earnings represented by preferred securities may become onerous when interest rates fall below the rate payable on such securities, the issuer may redeem the securities. Thus, in declining interest rate environments in particular, our holdings, if any, of higher rate-paying fixed rate preferred securities may be reduced and we may be unable to acquire securities of comparable credit quality paying comparable rates with the redemption proceeds.

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***Private Investment Funds***

Investments in Private Funds are subject to additional risks beyond the securities held by such funds. For example, no market for the interests in a Private Fund exists or is expected to develop, and it may be difficult or impossible to transfer the interests in such Private Fund, even in an emergency. In addition, we will not have the right to withdraw or transfer any amount of our investment in a Private Fund without the prior consent of its manager, which consent may be withheld for any or no reason. As a result, we may need to hold the Private Fund interest indefinitely.

A Private Fund may also not provide audited financials to us. In the absence of audited financials, we will not have an independent third party verifying financial reports. We will have no right or power to take part in the management of a Private Fund. Accordingly, we will have no opportunity to control the day-to-day operations, including investment and disposition decisions, of the underlying Private Fund. We will not receive the detailed financial information issued by the Portfolio Company that may be available to the manager of the fund. Accordingly, in purchasing a Private Fund interest, we entrust all aspects of the management of the Private Fund to its manager.

In addition, the manager of a Private Fund may make decisions, which result in a loss for the Private Fund. There can be no assurance that a Private Fund's manager will make decisions that improve the Private Fund's performance or lead to a profitable outcome for us.

Each Private Fund will be subject to a variety of litigation risks. In the event of a dispute arising from any activities relating to the operation of the Private Fund, it is possible that the Private Fund, its manager, the Private Fund's members, and persons associated or affiliated with such parties may be named as defendants. Under most circumstances, the Private Fund will indemnify its manager and their personnel against any costs they incur in connection with such disputes. Beyond direct costs, such disputes may adversely affect a Private Fund in a variety of ways, including by distracting the manager and harming relationships between the Private Fund and its Portfolio Company or other investors in the Portfolio Company.

A Private Fund's assets, including any investments made by the Private Fund and the Portfolio Companies held by the Private Fund, are available to satisfy all liabilities and other obligations of the Private Fund. If the Private Fund becomes subject to a liability, parties seeking to have the liability satisfied may have recourse to the Private Fund's assets generally and will not be limited to any particular assets, such as the asset representing the investment giving rise to the liability. Accordingly, we could find our interest in the Private Fund's assets adversely affected by a liability arising out of an investment of the Private Fund.

 

***Forward contracts***

We may invest in "forward contracts" that involve stockholders (each a "counterparty") of a potential Portfolio Company, whereby such counterparties promise future delivery of equity securities upon transferability or other removal of restrictions. These may involve counterparty promises of future performances, including among other things transferring shares to us in the future, paying costs and fees associated with maintaining and transferring the shares, not transferring or encumbering their shares, and participating in further acts required of stockholders by the counterparty and their agreement with us. Should counterparties breach their agreement inadvertently, by operation of law, intentionally, or fraudulently, it could affect our performance. Our ability and right to enforce transfer and payment obligations, and other obligations, against counterparties could be limited by acts of fraud or breach on the part of counterparties, operation of law, or actions of third parties. Measures we take to mitigate these risks, including powers of attorney, specific performance and damages provisions, any insurance policy, and legal enforcement steps, may prove ineffective, unenforceable, or economically impractical to enact.

In cases where we purchase a forward contract, because each underlying Portfolio Company may not have necessarily approved or endorsed the transaction, it offers no warranties or other promises as to the validity or value thereof, and no promise that it will agree with, approve, or facilitate transfer of shares to us.

In cases where we purchase a forward contract, in the event of a public offering, sale, or other corporate event affecting a Portfolio Company, it could be complicated, uncertain, and require further legal review, negotiation, and other acts for us to work with brokers, transfer agents, and representatives of the Portfolio Company, its potential acquirer, and other parties.

 

***Swaps***

Swaps are a type of derivative. Swap agreements involve the risk that the party with which we have entered into the swap will default on its obligation to pay us and the risk that we will not be able to meet our obligations to pay the other party to the agreement. In order to seek to hedge the value of our portfolio, to hedge against increases in our cost associated with interest payments on any outstanding borrowings or to seek to increase our return, we may enter into swaps, including interest rate swap, total return swap (sometimes referred to as a "contract for difference") and/or credit default swap transactions. In interest rate swap transactions, there is a risk that yields will move in the direction opposite of the direction anticipated by us, which would cause us to make payments to our counterparty in the transaction that could adversely affect our performance. In addition to the risks applicable to swaps generally (including counterparty risk, high volatility, illiquidity risk and credit risk), credit default swap transactions involve special risks because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty).

Historically, swap transactions have been individually negotiated non-standardized transactions entered into in over the counter ("OTC") markets and have not been subject to the same type of government regulation as exchange-traded instruments. However, since the global financial crisis, the OTC derivatives markets have become subject to comprehensive statutes and regulations. In particular, in the United States, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act"), signed into law by President Obama on July 21, 2010, requires that certain derivatives with U.S. persons must be executed on a regulated market and a substantial portion of OTC derivatives must be submitted for clearing to regulated clearinghouses. As a result, swap transactions entered into by us may become subject to various requirements applicable to swaps under the Dodd-Frank Act, including clearing, exchange-execution, reporting and recordkeeping requirements, which may make it more difficult and costly for us to enter into swap transactions, and may also render certain strategies in which we might otherwise engage impossible or so costly that they will no longer be economical to implement. Furthermore, the number of counterparties that may be willing to enter into swap transactions with us may also be limited if the swap transactions with us are subject to the swap regulation under the Dodd-Frank Act.

We rely on the "limited derivatives user" exception in Rule 18f-4 under the 1940 Act to enter into derivatives transactions, such as forward contracts and swaps, and certain other transactions, notwithstanding the restrictions on the issuance of "senior securities" under Section 18 of the 1940 Act. To maintain our qualification as a limited derivatives user, our "derivatives exposure" is limited to 10% of our net assets subject to exclusions for certain currency or interest rate hedging transactions (as calculated in accordance with Rule 18f-4). If we fail to maintain our qualification as a "limited derivatives user" as defined in Rule 18f-4 and seek to enter into derivatives transactions, we will be required to establish a comprehensive derivatives risk management program, to comply with certain value-at-risk based leverage limits, to appoint a derivatives risk manager and to provide additional disclosure both publicly and to the SEC regarding our derivatives positions.

 

***Convertible Securities***

A convertible security is a bond, debenture, note, preferred stock or other security that may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. The credit standing of the issuer and other factors also may have an effect on the convertible security's investment value. Convertible securities rank senior to common stock in a corporation's capital structure but are usually subordinated to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the issuer at a price established in the convertible security's governing instrument.

**MANAGEMENT OF THE FUND**

**The Board of Directors**

The Board has overall responsibility for monitoring the Fund's investment program and its management and operations. At least a majority of the Board is comprised of persons who are not "interested persons" of the Fund or the Adviser (as such term is defined in Section 2(a)(19) of the 1940 Act, each, an "Independent Director" and, collectively, the "Independent Directors"). Any vacancy on the Board may be filled by the remaining Directors, except to the extent the 1940 Act requires the election of Directors by stockholders. Subject to the provisions of Maryland law, the Directors will have all powers necessary and convenient to carry out this responsibility. The name and business address of the Directors and officers of the Fund and their principal occupations and other affiliations during the past five years, as well as a description of committees of the Board, are set forth under "Management" in the SAI.

**The Investment Adviser**

We are managed by the Adviser. The Adviser is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The principal address of the Adviser is 631 Folsom Street, Ste A & B, San Francisco, California, 94107-3850. Subject to the overall supervision of our Board, the Adviser manages our day-to-day operations and provides investment advisory and management services to us. The Adviser or its affiliates may engage in certain origination activities, including sourcing investment opportunities, conducting research, performing diligence on potential investments, structuring our investments, and monitoring our Portfolio Companies on an ongoing basis through a team of investment professionals.

The Adviser is owned and controlled by Michael Dinsdale, its Chief Executive Officer, Peter Smith, its President and Chief Compliance Officer, and Benjamin Black, its Chief Investment Officer.

The Adviser is under common control with Akkadian Ventures, Inc. ("Akkadian"). Akkadian is controlled by its officers, Benjamin Black, Michael Dinsdale, and Peter Smith. Akkadian is an experienced venture capital and secondary investment firm with a proven 15-year track record of high-conviction investing, underpinned by a deep commitment to its investors and broader community. Akkadian is a recognized pioneer in direct secondary investments, option exercise loans, and company liquidity programs, with extensive experience in the private markets. The firm's strategic evolution includes managing five growth-stage venture direct secondary strategies since 2011, most recently through Akkadian Ventures VI, LP ($276 million), as well as a seed-stage fund-of-funds strategy through RAISE.ai Ventures, LP ($55 million). Akkadian is the founder of the RAISE Global Conference, established in 2016, which maintains a curated network of over 3,000 general partners and 2,000 limited partners. Akkadian has 12 employees and is located in San Francisco, CA. As of September 30, 2025, Akkadian and its affiliates had over $1.2 billion in assets under management, which includes the Fund's total assets of $417 million.

The Fund reflects Akkadian's mission to democratize access to Silicon Valley's premier technology investments. The Fund was built to provide investors with access to a carefully curated portfolio of what the Adviser believes to be leading private technology companies. The Fund enables investors to have exposure to what the Adviser believes are the leading private venture backed technology businesses, while having daily liquidity and quarterly transparency.

Because of Akkadian's history, the Adviser's management team has established relationships within the secondary ecosystem, and it intends to use those relationships to position the Fund as a preferred buyer for secondary market transactions (i.e., transactions in securities of private companies that are acquired other than from the issuer), which may give the Fund access to optimal terms and opportunities. By strategically targeting what the Adviser believes are transformative technology companies that are remaining private longer, the Fund serves as the critical bridge between private innovation and public capital, placing its investors at the forefront of market evolution and enabling them to participate in industry trends and opportunities for substantial value creation.

Akkadian and the Adviser's personnel possess extensive expertise executing investments through various structures, including purchases of common and preferred equity securities, option exercise loans, forward contracts, and SPVs. Since inception, Akkadian's experienced in-house team has successfully executed over 750 individual secondary transactions employing these methods. As of September 30, 2025, Akkadian manages five blind pool funds, one fund-of-funds, and many SPVs representing approximately $802 million in regulatory assets under management, which excludes the Fund's total assets of $417 million as of that date. Across these vehicles (and excluding the Fund), Akkadian has deployed capital into 111 distinct portfolio investments, resulting in 52 exits, both fully and partially realized. Importantly, throughout its history, Akkadian has never experienced a counterparty default or failure to honor transactional commitments.

The Adviser's investment committee (the "Investment Committee") is currently comprised of Benjamin Black and Michael Dinsdale and is supported by members of the Adviser's senior executive team. The Investment Committee is responsible for selecting and evaluating all investment opportunities on behalf of the Fund. The Investment Committee's members may change from time to time as designated by the Adviser.

The Adviser is registered as an investment adviser under the Advisers Act and serves as our investment adviser pursuant to the Investment Advisory Agreement between us and the Adviser. Under the terms of the Investment Advisory Agreement, the Adviser is responsible for managing the investment and reinvestment of the Fund's assets.

Unless earlier terminated as described below, the Investment Advisory Agreement will remain in effect for an initial two-year term and then from year-to-year if approved annually by a majority of the Board or by the holders of a majority of our outstanding voting securities and, in each case, a majority of the Independent Directors.

The Investment Advisory Agreement will automatically terminate within the meaning of the 1940 Act and related SEC guidance and interpretations in the event of its assignment. In accordance with the 1940 Act, without payment of penalty, we may terminate the Investment Advisory Agreement with the Adviser upon 60 days' written notice. The decision to terminate the agreement may be made by a majority of the Board or the stockholders holding a majority of the outstanding Shares of our common stock (which is defined under the 1940 Act as the lesser of: (a) 67% or more of such company's voting securities present at a meeting if more than 50% of the outstanding voting securities of such company are present or represented by proxy, or (b) more than 50% of the outstanding voting securities of such company). In addition, without payment of penalty, the Adviser may generally terminate the Investment Advisory Agreement upon 60 days' written notice.

Under the Investment Advisory Agreement, commencing upon the Effective Date, we will pay the Adviser a Management Fee, payable quarterly, in an amount equal to 2.50% of our average gross assets at the end of the two most recently completed calendar quarters. For purposes of the Investment Advisory Agreement, the term "gross assets" includes assets purchased with borrowed funds. Prior to the Effective Date, the Adviser will not charge a Management Fee.

A discussion regarding the basis of the Board's approval of the Investment Advisory Agreement is included in the Fund's annual report to stockholders for the period ended September 30, 2025.

**Payment of Our Expenses under the Investment Advisory Agreement**

The Adviser bears all of its own costs incurred in providing investment advisory services to the Fund. As described below, however, the Fund bears all other expenses incurred in the business and operation of the Fund.

Expenses borne directly by the Fund include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the organization of the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) calculating NAV (including the cost and expenses of any independent valuation firm);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) expenses, including travel, entertainment, lodging and meal expenses, incurred by the Adviser, or members of the investment teams, or payable to third parties, in evaluating, developing, negotiating, structuring and performing due diligence on prospective Portfolio Companies, including such expenses related to potential investments that were not consummated, and, if necessary, enforcing the Fund's rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) fees and expenses incurred by the Adviser (and its affiliates) or the administrator (or its affiliates) payable to third parties, including agents, consultants or other advisors, in monitoring financial and legal affairs for the Fund and in conducting research and due diligence on prospective investments and equity sponsors, analyzing investment opportunities, structuring the Fund's investments and monitoring investments and Portfolio Companies on an ongoing basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any and all fees, costs and expenses incurred in connection with the incurrence of leverage and indebtedness of the Fund, including borrowings, dollar rolls, reverse purchase agreements, credit facilities, securitizations, margin financing and derivatives and swaps, and including any principal or interest on the Fund's borrowings and indebtedness (including, without limitation, any fees, costs, and expenses incurred in obtaining lines of credit, loan commitments, and letters of credit for the Fund's account and in making, carrying, funding and/or otherwise resolving investment guarantees);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) offerings, sales, and repurchases of the shares and other securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) fees and expenses payable under any underwriting, dealer manager or placement agent agreements, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) investment advisory fees payable under the advisory agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) fees and expenses, if any, payable under the administration agreement;

&nbsp;&nbsp;&nbsp;&nbsp;(x) the Fund's allocable portion of the cost of the Fund's chief financial officer, treasurer, chief compliance officer, and their respective staffs;

&nbsp;&nbsp;&nbsp;&nbsp;(xi) any applicable administrative agent fees or loan arranging fees incurred with respect to the Fund's portfolio investments by the Adviser, the administrator or an affiliate thereof;

&nbsp;&nbsp;&nbsp;&nbsp;(xii) any and all fees, costs and expenses incurred in implementing or maintaining third-party or proprietary software tools, programs or other technology for the Fund's benefit (including, without limitation, any and all fees, costs and expenses of any investment, books and records, portfolio compliance and reporting systems, general ledger or portfolio accounting systems and similar systems and services, including, without limitation, consultant, software licensing, data management and recovery services fees and expenses);

&nbsp;&nbsp;&nbsp;&nbsp;(xiii) costs incurred in connection with investor relations, Board relations, and with preparing for and effectuating a listing of the shares on any securities exchange;

&nbsp;&nbsp;&nbsp;&nbsp;(xiv) transfer agent, dividend agent and custodial fees and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;(xv) federal and state registration fees;

&nbsp;&nbsp;&nbsp;&nbsp;(xvi) all costs of registration and listing the shares on any securities exchange;

&nbsp;&nbsp;&nbsp;&nbsp;(xvii) U.S. federal, state and local taxes;

&nbsp;&nbsp;&nbsp;&nbsp;(xviii) fees and expenses of the Independent Directors, including reasonable travel, entertainment, lodging and meal expenses, and any legal counsel or other advisors retained by, or at the discretion or for the benefit of, the Independent Directors;

&nbsp;&nbsp;&nbsp;&nbsp;(xix) costs of preparing and filing reports or other documents required by the SEC or other regulators, and all fees, costs and expenses related to compliance-related matters (such as developing and implementing specific policies and procedures in order to comply with certain regulatory requirements) and regulatory filings related to the Fund's activities and/or other regulatory filings, notices or disclosures of the Adviser and its affiliates relating to the Fund and its activities;

&nbsp;&nbsp;&nbsp;&nbsp;(xx) costs of any reports, proxy statements or other notices to stockholders including printing costs;

&nbsp;&nbsp;&nbsp;&nbsp;(xxi) fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums;

&nbsp;&nbsp;&nbsp;&nbsp;(xxii) direct costs and expenses of administration, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors, tax preparers and outside legal costs;

&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) proxy voting expenses;

&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) all expenses relating to payments of dividends or interest or distributions in cash or any other form made or caused to be made by the Board to or on account of holders of the securities of the Fund, including in connection with any distribution reinvestment plan or direct stock purchase plan;

&nbsp;&nbsp;&nbsp;&nbsp;(xxv) costs incurred in connection with the formation or maintenance of entities or vehicles to hold the Fund's assets for tax or other purposes;

&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) allocable fees and expenses associated with marketing efforts on behalf of the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) all fees, costs and expenses of any litigation involving the Fund or its Portfolio Companies and the amount of any judgments or settlements paid in connection therewith, directors and officers, liability or other insurance (including costs of title insurance) and indemnification (including advancement of any fees, costs or expenses to persons entitled to indemnification) or extraordinary expense or liability relating to Company's affairs;

&nbsp;&nbsp;&nbsp;&nbsp;(xxviii) fees, costs and expenses of winding up and liquidating the Fund's assets; and

&nbsp;&nbsp;&nbsp;&nbsp;(xxix) all other expenses incurred by the Fund, the Adviser or the administrator in connection with administering the Fund's business.

Except as otherwise provided above, the Adviser will bear all compensation expense (including health insurance, pension benefits, payroll taxes and other compensation related matters) of its employees and shall bear the costs of any salaries of any officers or Directors of the Fund who are affiliated persons (as defined in the 1940 Act) of the Adviser.

**Portfolio Managers**

The portfolio managers who are primarily responsible for the day-to-day management of our portfolio are as follows:

**Benjamin Black**

Benjamin Black is the Co-Founder and Managing Director of Akkadian and a 20-year private equity veteran.

In addition, Mr. Black is the Co-Founder of the RAISE Global Summit, which has grown into a premier launchpad for emerging venture capital funds.

Prior to Akkadian, Mr. Black co-founded New Cycle Capital to bring socially responsible investing to sectors like clean energy and social finance. He started his private equity career on the investment teams at Maveron and Rosewood Capital, where he focused on branded consumer products and services. Prior to his private equity career, Mr. Black was a member of the founding team of Harris Interactive.

Mr. Black holds a BA and JD from Cornell University.

**Michael Dinsdale**

Michael Dinsdale is a Managing Director at Akkadian. For over 20 years, Mr. Dinsdale has embodied the "modern unicorn" CFO, with strategic expertise in building high-growth international companies that consistently exceed growth targets.

Prior to Akkadian, Mr. Dinsdale was the Chief Financial Officer of three market-leading software companies that generated an aggregate of over $80 billion in value and for which he successfully secured an aggregate of over $2 billion in financing. He previously served on the Board of Directors for WildAid (non-profit).

Mr. Dinsdale holds a BS in engineering from the University of Western Ontario, an MBA from McMaster University, and the CFA designation. He competed on the Canadian National Sailing Team in the 1996 Olympic trials.

The SAI provides additional information about our portfolio managers' compensation, other accounts managed and ownership of our shares.

**License Agreement**

We entered into a license agreement (the "License Agreement") with Akkadian Ventures LLC and the Adviser, pursuant to which Akkadian Ventures LLC granted us (and the Adviser) a non-exclusive license to use the name "Powerlaw." Under the License Agreement, we will have a right to use the Powerlaw name for so long as the Adviser or one of its affiliates remains our investment adviser. Other than with respect to this limited license, we have no legal right to the "PowerLaw" name.

**Administrator**

Paralel Technologies LLC serves as the administrator of the Fund. Pursuant to an administration and fund accounting agreement, the administrator provides certain administrative services to the Fund. The administrator receives a monthly fee equal to the greater of an annual minimum fee or a fee equal to a percentage of the Fund's net assets, which percentage is subject to breakpoints at increasing levels of net assets. The Fund also reimburses the administrator for certain out-of-pocket expenses. Paralel Technologies LLC's principal business address is 1700 Broadway, Suite 1850, Denver, Colorado 80290.

**DETERMINATION OF NET ASSET VALUE**

The NAV of our shares of common stock will be computed based upon the value of our portfolio securities and other assets on a quarterly basis. We calculate NAV per share by subtracting our liabilities (including accrued expenses, dividends payable and any borrowings) from our total assets (the value of the securities we hold plus cash or other assets, including interest accrued but not yet received) and dividing the result by the total number of shares of our common stock outstanding.

The 1940 Act requires the Fund to determine the value of its portfolio securities using market quotations when "readily available," and when market quotations are not readily available, portfolio securities must be valued at fair value, as determined in good faith by the Fund's Board. As stated in Rule 2a-5 under the 1940 Act, determining fair value in good faith requires (i) assessment and management of risks, (ii) establishment of fair value methodologies, (iii) testing of fair value methodologies, and (iv) evaluation of pricing services. Under Rule 2a-5, a fund's board may designate the fund's adviser as "valuation designee" to perform fair value determinations. The Board, including a majority of the Directors who are not "interested persons" of the Fund, as such term is defined in the 1940 Act, has designated the Adviser to perform fair value determinations and act as "valuation designee" for the Fund's investments.

Valuation of our securities is as follows:

 

*Equity Investments.* Equity securities traded on a recognized securities exchange (e.g., NYSE), separate trading boards of a securities exchange or through a market system that provides contemporaneous transaction pricing information are valued via independent pricing services generally at an exchange closing price or if an exchange closing price is not available, the last traded price on that exchange prior to the time as of which the assets or liabilities are valued; however, under certain circumstances other means of determining current market value may be used. If an equity security is traded on more than one exchange, the current market value of the security where it is primarily traded generally will be used. In the event that there are no sales involving an equity security held by us on a day on which we value such security, the last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If we hold both long and short positions in the same security, the last bid price will be applied to securities held long and the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which we value such security, the prior day's price will be used, unless the Adviser determines that such prior day's price no longer reflects the fair value of the security, in which case such asset would be treated as a fair value asset.

 

*Fixed-Income Investments.* Fixed-income securities for which market quotations are readily available are generally valued using such securities' current market value. We value fixed-income portfolio securities and non-exchange traded derivatives using the last available bid prices or current market quotations provided by dealers or prices (including evaluated prices) supplied by our approved independent third-party pricing services, each in accordance with valuation procedures approved by the Board. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), credit quality information, perceived market movements, news, and other relevant information and by other methods, which may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; general market conditions; and other factors and assumptions. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but we may hold or transact in such securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Adviser determines such method does not represent fair value. Loan participation notes are generally valued at the mean of the last available bid prices from one or more brokers or dealers as obtained from independent third-party pricing services. Certain fixed-income investments including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche.

 

*Options, Futures, Swaps and Other Derivatives.* Exchange-traded equity options for which market quotations are readily available are valued at the mean of the last bid and ask prices as quoted on an Exchange or the board of trade on which such options are traded. In the event that there is no mean price available for an exchange traded equity option held by us on a day on which we value such option, the last bid (long positions) or ask (short positions) price, if available, will be used as the value of such option. If no bid or ask price is available on a day on which we value such option, the prior day's price will be used, unless the Adviser determines that such prior day's price no longer reflects the fair value of the option in which case such option will be treated as a fair value asset. OTC derivatives may be valued using a mathematical model, which may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in accordance with the valuation procedures approved by the Board.

Investments for which market quotations are readily available are typically valued at the bid price of those market quotations. To validate market quotations, we will utilize a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations. Securities that are publicly-traded are generally valued at the close price on the valuation date; however, if they remain subject to lock-up restrictions, they are discounted accordingly. Securities that are not publicly-traded or whose market quotations are not readily available are valued at fair value as determined in good faith by the Board, based on, among other things, the input of the Adviser, the Audit Committee and independent third-party valuation firm(s) engaged at the direction of the Board.

In determining the market value of portfolio investments, we may employ independent third party pricing services, which may use, without limitation, a matrix or formula method that takes into consideration market indexes, matrices, yield curves and other specific adjustments. This may result in the securities being valued at a price different from the price that would have been determined had the matrix or formula method not been used. All cash, receivables and current payables are carried on our books at their face value. The price we could receive upon the sale of any particular portfolio investment may differ from our valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an investment may be less than the value ascribed by us, and we could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. Our ability to value our investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

Prices obtained from independent third party pricing services, broker-dealers or market makers to value our securities and other assets and liabilities are based on information available at the time we value our assets and liabilities. In the event that a pricing service quotation is revised or updated subsequent to the day on which we valued such security, the revised pricing service quotation generally will be applied prospectively. Such determination shall be made considering pertinent facts and circumstances surrounding such revision.

In the event that application of the methods of valuation discussed above result in a price for a security which is deemed not to be representative of the fair market value of such security, the security will be valued by, under the direction of or in accordance with a method specified by the Board as reflecting fair value. All other assets and liabilities (including securities for which market quotations are not readily available) held by us (including restricted securities) are valued at fair value as determined in good faith by the Board or by the Adviser (its delegate). Any assets and liabilities that are denominated in a foreign currency are translated into U.S. dollars at the prevailing rates of exchange.

Certain of the securities that we acquire may be traded on foreign exchanges or OTC markets on days on which our NAV is not calculated and our shares are not traded. In such cases, the NAV of our shares may be significantly affected on days when investors can neither purchase nor sell our shares.

 

*Fair Value.* When market quotations are not readily available or are believed by the Adviser to be unreliable, our investments are valued at fair value ("Fair Value Assets") in accordance with ASC 820 and Rule 2a-5 under the 1940 Act. Fair Value Assets are valued by the Adviser in accordance with procedures approved by the Board. The Adviser may conclude that a market quotation is not readily available or is unreliable if a security or other asset or liability does not have a price source due to its complete lack of trading, if the Adviser believes a market quotation from a broker-dealer or other source is unreliable (e.g., where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset or liability subsequent to the most recent market quotation), where the security or other asset or liability is only thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this purpose, a "significant event" is deemed to occur if the Adviser determines, in its business judgment prior to or at the time of pricing our assets or liabilities, that it is likely that the event will cause a material change to the last exchange closing price or closing market price of one or more assets or liabilities held by us. On any date the NYSE is open and the primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using the prior day's price, provided that the Adviser is not aware of any significant event or other information that would cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would be treated as a Fair Value Asset. For certain foreign securities, a third-party vendor supplies evaluated, systematic fair value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign securities following the close of the local markets to the price that might have prevailed as of our pricing time. The Adviser may engage the services of third-party valuation firms to assist in fair value determinations.

 

*Interests in Special Purpose Vehicles.* As a practical expedient, investments in SPVs may be valued per the reported NAV as reported by the corresponding SPV's managers. Adjustments to such NAV would be considered if (a) such NAV was not as of the applicable SPV's measurement date; (b) it was probable that the applicable SPV would be sold at a value materially different from such NAV; or (c) it was determined in accordance with the Fund's valuation procedures that the applicable investment company is not being reported at fair value. Investments in SPVs are generally valued based on the fair value of the SPV's underlying investment(s), adjusted as necessary to reflect the SPV's capital structure, expenses, fees, carried interest, liquidity characteristics, and any other factors the Adviser determines are relevant to estimating the fair value of the Fund's interest in such SPV.

 

*Forward Contracts.* Forward contracts are valued based on the Adviser's estimate of the fair value of the underlying equity securities subject to the forward, taking into account recently observed transactions in the issuer's securities, adjusted for contractual terms and structural features of the forward arrangement, which may include the forward price, share ratio, expected settlement mechanics, counterparty credit risk, time to settlement, and any applicable fees or costs.

*Secondary Purchases Subject to Transfer Restrictions.* When valuing secondary purchases that are subject to transfer restrictions, the Adviser considers the impact of the transfer restrictions as part of its fair value determination in accordance with ASC 820 and Rule 2a-5 under the 1940 Act. The Adviser evaluates the nature and duration of the transfer restrictions, the expected timing and likelihood of obtaining any required issuer consents or waivers, and the effect of the transfer restrictions on liquidity and marketability. In many cases, the Adviser uses pricing indications derived from recent arm's-length financing rounds or secondary transactions involving the issuer's securities. Because such transactions typically involve securities that are subject to substantially similar transfer restrictions, the observed transaction prices are generally understood to already reflect the market's assessment of those restrictions. Accordingly, when the Adviser determines that the transfer restrictions applicable to the Fund's investment are consistent with those applicable to the securities underlying the observed transaction, no separate or incremental adjustment may be required solely to reflect the transfer restrictions. Where the Adviser determines that the transfer restrictions applicable to the Fund's investment are more restrictive, longer in duration, or otherwise materially different from those reflected in observable transactions, the Adviser may apply additional valuation adjustments to reflect the reduced liquidity or increased uncertainty associated with the transfer restrictions. The determination of whether, and to what extent, such adjustments are appropriate is made based on the Adviser's reasonable judgment, taking into account all relevant facts and circumstances as of the valuation date.

Fair value represents a good faith approximation of the value of an asset or liability. The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the period in which the particular fair values were used in determining our NAV. As a result, our sale or repurchase of our shares at NAV, at a time when a holding or holdings are valued at fair value, may have the effect of diluting or increasing the economic interest of existing stockholders.

Our annual audited financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"), follow the requirements for valuation set forth in Financial Accounting Standards Board Accounting Standards Codification Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820"), which defines and establishes a framework for measuring fair value under US GAAP and expands financial statement disclosure requirements relating to fair value measurements.

Generally, ASC 820 and other accounting rules applicable to investment companies and various assets in which they invest are evolving. Such changes may adversely affect us. For example, the evolution of rules governing the determination of the fair market value of assets or liabilities to the extent such rules become more stringent would tend to increase the cost and/or reduce the availability of third-party determinations of fair market value.

**DISTRIBUTION REINVESTMENT PLAN**

Unless the registered owner of our shares of common stock elects to receive cash by contacting Continental Stock Transfer & Trust Company (the "Plan Administrator"), all dividends, capital gain distributions and returns of capital, if any, declared on our shares will be automatically reinvested by the Plan Administrator for stockholders in the Fund's Distribution Reinvestment Plan (the "Plan") in additional shares of common stock. Stockholders who elect not to participate in the Plan will receive all dividends and other distributions payable in cash directly to the stockholder of record (or, if the shares are held in street or other nominee name, then to such nominee) by the Plan Administrator as dividend disbursing agent. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by providing notice in writing to the Plan Administrator at least five business days prior to any dividend/distribution record date; otherwise, such termination or resumption will not be effective until the next declared dividend or other distribution.

Whenever we declare a distribution payable either in shares or cash, non-participants in the Plan will receive cash and participants in the Plan will receive a number of our shares of common stock, determined in accordance with the following provisions. The shares will be acquired by the Plan Administrator for the participants' accounts, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized shares of our common stock ("Newly Issued Common Shares") or (ii) by purchase of outstanding shares of our common stock on the open market ("Open-Market Purchases") on the Exchange or elsewhere. If, on the payment date for any distribution, the market price per share plus estimated brokerage trading fees is equal to or greater than the NAV per share (such condition is referred to here as "market premium"), the Plan Administrator shall receive Newly Issued Common Shares, including fractions of shares from the Fund for each Plan participant's account. The number of Newly Issued Common Shares to be credited to each participant's account will be determined by dividing the dollar amount of the distribution by the NAV per share on the date of issuance; provided that, if the NAV per share is less than or equal to 95% of the then current market price per share on the date of issuance, the dollar amount of the distribution will be divided by 95% of the market price on the date of issuance for purposes of determining the number of shares issuable under the Plan. If, on the payment date for any distribution, the NAV per share is greater than the market value plus estimated brokerage trading fees (such condition being referred to here as a "market discount"), the Plan Administrator will invest the distribution amount in our shares of common stock acquired on behalf of the Plan participants in Open-Market Purchases.

In the event of a market discount on the payment date for any distribution, the Plan Administrator will have until the last business day before the next date on which our shares trade on an "ex-dividend" basis or in no event more than 30 days after the record date for such distribution, whichever is sooner (the "Last Purchase Date"), to invest the distribution amount in our shares of common stock acquired in Open-Market Purchases. If, before the Plan Administrator has completed its Open-Market Purchases, the market price per share exceeds the NAV per share, the average per share purchase price paid by the Plan Administrator may exceed the NAV of the shares, resulting in the acquisition of fewer shares than if the distribution had been paid in Newly Issued Common Shares on the distribution payment date. If the Plan Administrator is unable to invest the full distribution amount in Open-Market Purchases during the purchase period or if the market discount shifts to a market premium during the purchase period, the Plan Administrator may cease making Open-Market Purchases and may instead receive the Newly Issued Common Shares from the Fund for each participant's account, in respect of the uninvested portion of the distribution, at the NAV per share at the close of business on the Last Purchase Date provided that, if the NAV is less than or equal to 95% of the then current market price per share, the dollar amount of the distribution will be divided by 95% of the market price on the date of issuance for purposes of determining the number of shares issuable under the Plan.

The Plan Administrator maintains all registered stockholders' accounts in the Plan and furnishes written confirmation of all transactions in the accounts, including information needed by stockholders for tax records. Shares of our common stock in the account of each Plan participant will be held by the Plan Administrator in non-certificated form in the name of the Plan participant, and each stockholder proxy will include those shares purchased or received pursuant to the Plan. The Plan Administrator will forward all proxy solicitation materials to participants and vote proxies for shares held under the Plan in accordance with the instructions of the participants.

In the case of our shares of common stock owned by a beneficial owner but registered with the Plan Administrator in the name of a nominee, such as a bank, a broker or other financial intermediary (each, a "Nominee"), the Plan Administrator may accept instructions from such Nominee to reinvest distributions with respect to less than all of the shares registered in the name of such Nominee, in order to reflect differing reinvestment elections of the Nominee's underlying beneficial owners, as certified from time to time by the Nominee.

Registered stockholders whose shares are registered directly in their own name may elect either full participation or full non-participation in the Plan and may not elect partial participation.

The Administrator will administer the Plan on the basis of the number of our shares certified from time to time by the Nominee as participating in the Plan including certifications reflecting partial participation pursuant to the elections of underlying beneficial owners. The Plan Administrator will not take instructions or elections from a beneficial owner whose shares are registered with the Plan Administrator in the name of a Nominee. If a beneficial owner's shares are held through a Nominee and are not registered with the Plan Administrator as participating in the Plan, neither the beneficial owner nor the Nominee will be participants in or have distributions reinvested under the Plan with respect to those shares. If a beneficial owner of our shares of common stock held in the name of a Nominee wishes to participate in the Plan, and the Stockholder's Nominee is unable or unwilling to become a registered stockholder and a Plan participant with respect to those shares on the beneficial owner's behalf, the beneficial owner may request that the Nominee arrange to have all or a portion of his or her shares registered with the Plan Administrator in the beneficial owner's name so that the beneficial owner may be enrolled as a participant in the Plan with respect to those shares. Participants whose shares are registered with the Plan Administrator in the name of one Nominee may not be able to transfer the shares to another firm or Nominee and continue to participate in the Plan.

There will be no brokerage charges with respect to our shares of common stock issued directly by us as a result of distributions payable either in shares or in cash. However, each participant will pay a pro rata share of brokerage trading fees incurred in connection with Open-Market Purchases in connection with the reinvestment of distributions. For additional discussion regarding the tax implications of participation in the Plan, see "Certain U.S. Federal Income Tax Considerations." Participants that request a sale of our shares of common stock through the Plan Administrator are subject to brokerage commissions.

The Fund reserves the right to amend or terminate the Plan. There is no direct service charge to participants with regard to purchases in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants by written notice provided directly or in the next report to stockholders.

All correspondence, questions, or requests for additional information concerning the Plan should be directed to the Plan Administrator by writing to the Plan Administrator at 1 State Street, Floor 30, New York, New York 10004-1561. Be sure to include your name, address, daytime phone number, Social Security or tax I.D. number and a reference to Powerlaw Corp. on all correspondence.

**CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS**

The following discussion is a general summary of certain U.S. federal income tax considerations applicable to us and to an investment in our common stock. This discussion does not purport to be a complete description of the income tax considerations applicable to such an investment. For example, this discussion does not describe tax consequences that we have assumed to be generally known by investors or certain considerations that may be relevant to certain types of holders subject to special treatment under U.S. federal income tax laws, including persons who hold our common stock as part of a straddle or a hedging, integrated or constructive sale transaction, persons subject to the alternative minimum tax, tax-exempt organizations, insurance companies, brokers or dealers in securities, pension plans and trusts, persons whose functional currency is not the U.S. dollar, certain former citizens and long-term residents of the United States, regulated investment companies, real estate investment trusts, personal holding companies, persons who acquire an interest in the Fund in connection with the performance of services, persons required to accelerate the recognition of any item of gross income as a result of such income being taken into account on an applicable financial statement, and financial institutions. Such persons should consult with their own tax advisors as to the U.S. federal income tax consequences of an investment in our common stock, which may differ substantially from those described herein. This discussion assumes that stockholders hold our common stock as capital assets (within the meaning of the Code).

The discussion is based upon the Code, Treasury regulations, and administrative and judicial interpretations, each as of the date of this Registration Statement and all of which are subject to change, possibly retroactively, which could affect the continuing validity of this discussion. We have not sought and will not seek any ruling from the Internal Revenue Service ("IRS") regarding any matter discussed herein. Prospective investors should be aware that, although we intend to adopt positions we believe are in accord with current interpretations of the U.S. federal income tax laws, the IRS may not agree with the tax positions taken by us and that, if challenged by the IRS, our tax positions might not be sustained by the courts. This summary does not discuss any aspects of U.S. estate, alternative minimum, or gift tax or non-U.S., state or local tax. It also does not discuss the special treatment under U.S. federal income tax laws that could result if we invested in tax-exempt securities or certain other investment assets.

For purposes of this discussion, a "U.S. Shareholder" is a beneficial owner of our common stock that is for U.S. federal income tax purposes:

● a citizen or individual resident of the United States;

● a corporation (or other entity treated as a corporation) organized in or under the laws of the United States, any state thereof) or the District of Columbia;

● a trust that (i) is subject to the primary supervision of a court within the U.S. and one or more U.S. persons have the authority to control all substantial decisions of the trust, or (ii) has a valid election in effect under applicable U.S. Treasury Regulations to be treated as a U.S. person; or

● an estate, the income of which is subject to U.S. federal income taxation regardless of its source.

A "Non-U.S. Shareholder" is a beneficial owner of our common stock that is neither a U.S. Shareholder nor a partnership for U.S. tax purposes.

If a partnership (including an entity or arrangement treated as a partnership for U.S. federal income tax purposes) holds our common stock, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. Any partner of a partnership holding our common stock should consult its tax advisors with respect to the purchase, ownership and disposition of such shares.

Tax matters are very complicated and the tax consequences to an investor of an investment in our common stock will depend on the facts of his, her or its particular situation.

 

*Taxation as a Regulated Investment Company*

We intend to elect to be treated, and intend to qualify each year, as a RIC beginning with our taxable year ending September 30, 2026; however, no assurance can be given that we will be able to maintain our RIC tax treatment. As a RIC, we generally will not be subject to U.S. federal income tax on any ordinary income or capital gains that we timely distribute to our stockholders as dividends. To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements (as described below). In addition, in order to obtain RIC tax benefits, we generally must timely distribute to our stockholders, for each taxable year, at least 90% of our "investment company taxable income," which is generally our ordinary income plus the excess of realized net short-term capital gains over realized net long-term capital losses (the "Annual Distribution Requirement").

If we:

● qualify as a RIC; and

● satisfy the Annual Distribution Requirement, then we will not be subject to U.S. federal income tax on the portion of our income and capital gains that we timely distribute (or are deemed to distribute) to our stockholders. We will be subject to U.S. federal income tax imposed at the regular corporate rates on any income or capital gains not distributed (or deemed distributed) to our stockholders.

We will be subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless we distribute in a timely manner an amount at least equal to the sum of (i) 98% of our net ordinary income for each calendar year, (ii) 98.2% of the amount by which our capital gains exceed our capital losses (adjusted for certain ordinary losses) for the one-year period ending October 31 in that calendar year and (iii) any ordinary income and net capital gain income that we recognized in preceding years, but were not distributed during such years, and on which we paid no U.S. federal income tax (the "Excise Tax Avoidance Requirement"). While we intend to distribute sufficient income and capital gains in order to avoid imposition of this 4% U.S. federal excise tax, we may not be successful in avoiding entirely the imposition of this tax.

In order to qualify as a RIC for U.S. federal income tax purposes, we must, among other things:

● derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to loans of certain securities, gains from the sale of stock or other securities or foreign currencies, net income from certain "qualified publicly traded partnerships" (as defined in the Code) or other income derived with respect to our business of investing in such stock or securities (the "90% Income Test"); and

● diversify our holdings so that at the end of each quarter of the taxable year:

○ at least 50% of the value of our assets consists of cash, cash equivalents, U.S. Government securities, securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and

○ no more than 25% of the value of our assets is invested in the (i) securities, other than U.S. government securities or securities of other RICs, of one issuer, (ii) securities, other than securities of other RICs, of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or (iii) securities of one or more "qualified publicly traded partnerships" (the "Diversification Tests").

To the extent that we invest in entities treated as partnerships for U.S. federal income tax purposes (other than a "qualified publicly traded partnership"), we generally must include the items of gross income derived by the partnerships for purposes of the 90% Income Test, and the income that is derived from a partnership (other than a "qualified publicly traded partnership") will be treated as qualifying income for purposes of the 90% Income Test only to the extent that such income is attributable to items of income of the partnership which would be qualifying income if realized by us directly. In addition, we generally must take into account our proportionate share of the assets held by partnerships (other than a "qualified publicly traded partnership") in which we are a partner for purposes of the Diversification Tests.

We may be required to recognize taxable income in circumstances in which we do not receive cash. For example, if we hold debt obligations that are treated under applicable tax rules as having original issue discount (such as debt instruments with paid-in-kind ("PIK") interest or, in certain cases, increasing interest rates or issued with warrants), we must include in income each year a portion of the original issue discount that accrues over the life of the obligation, regardless of whether cash representing such income is received by us in the same taxable year. We may also have to include in our taxable income other amounts that we have not yet received in cash, such as PIK interest and deferred loan origination fees that are paid after origination of the loan. Because any original issue discount or other amounts accrued will be included in our investment company taxable income for the year of accrual, we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution Requirement, even though we will not have received the corresponding cash amount.

Although we do not presently expect to do so, we are authorized to borrow funds, to sell assets, and to make taxable distributions of our stock and debt securities in order to satisfy distribution requirements. Our ability to dispose of assets to meet our distribution requirements may be limited by (i) the illiquid nature of our portfolio and/or (ii) other requirements relating to our status as a RIC, including the Diversification Tests. If we dispose of assets in order to meet the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, we may make such dispositions at times that, from an investment standpoint, are not advantageous. If we are unable to obtain cash from other sources to satisfy the Annual Distribution Requirement, we may fail to qualify for tax treatment as a RIC and become subject to U.S. federal income tax.

Under the 1940 Act, we are not permitted to make distributions to our stockholders while our debt obligations and other senior securities are outstanding unless certain "asset coverage" tests are met. If we are prohibited from making distributions, we may fail to qualify for tax treatment as a RIC and become subject to U.S. federal income tax.

Certain of our investment practices may be subject to special and complex U.S. federal income tax provisions that may, among other things: (i) disallow, suspend or otherwise limit the allowance of certain losses or deductions; (ii) convert lower taxed long-term capital gain into higher taxed short-term capital gain or ordinary income; (iii) convert an ordinary loss or a deduction into a capital loss (the deductibility of which is more limited); (iv) cause us to recognize income or gain without a corresponding receipt of cash; (v) adversely affect the time as to when a purchase or sale of securities is deemed to occur; (vi) adversely alter the characterization of certain complex financial transactions; and (vii) produce income that will not be qualifying income for purposes of the 90% Income Test described above. We will monitor our transactions and may make certain tax decisions in order to mitigate the potential adverse effect of these provisions.

A RIC is limited in its ability to deduct expenses in excess of its "investment company taxable income" (which is, generally, ordinary income plus the excess of net short-term capital gains over net long-term capital losses). If our expenses in a given year exceed investment company taxable income, we would experience a net operating loss for that year. However, a RIC is not permitted to carry forward net operating losses to subsequent years. In addition, expenses can be used only to offset investment company taxable income, not net capital gain. A RIC may not use any net capital losses (that is, realized capital losses in excess of realized capital gains) to offset the RIC's investment company taxable income, but may carry forward such losses indefinitely and use them to offset capital gains. Due to these limits on the deductibility of expenses, over the course of one or more taxable years, we may have, for U.S. federal income tax purposes, taxable income that we are required to distribute and that is taxable to our stockholders even if such income is greater than the aggregate net income we actually earned during those years. Such required distributions may be made from our cash assets or by liquidation of investments, if necessary. We may realize gains or losses from such liquidations. In the event we realize net capital gains from such transactions, a stockholder may receive a larger capital gain distribution than it would have received in the absence of such transactions.

Investment income received from sources within foreign countries, or capital gains earned by investing in securities of foreign issuers, may be subject to foreign income taxes withheld at the source. In this regard, withholding tax rates in countries with which the United States does not have a tax treaty may be 35% or more. The United States has entered into tax treaties with many foreign countries that may entitle us to a reduced rate of tax or exemption from tax on this related income and gains. The effective rate of foreign tax cannot be determined at this time since the amount of our assets to be invested within various countries is not now known. We do not anticipate being eligible for the special election that allows a RIC to treat foreign income taxes paid by such RIC as paid by its stockholders.

If we purchase shares in a "passive foreign investment company," or PFIC, we may be subject to U.S. federal income tax on any "excess distribution" received on, or any gain from the disposition of such shares. Additional charges in the nature of interest generally will be imposed on us in respect of deferred taxes arising from any such excess distributions or gains. This additional tax and interest may apply even if we make a distribution as a taxable dividend by us to our stockholders in an amount equal to (1) any excess distribution, or (2) the gain from the dispositions of such shares. If we invest in a PFIC and elect to treat the PFIC as a "qualified electing fund", or QEF, in lieu of the foregoing requirements, we will be required to include in income each year our proportionate share of the ordinary earnings and net capital gain of the QEF, even if such income is not distributed by the QEF. Alternatively, we may able to elect to mark-to-market at the end of each taxable year our shares in a PFIC; in this case, we will recognize as ordinary income any increase in the value of such shares and as ordinary loss any decrease in such value to the extent that any such decrease does not exceed prior increases included in our income. Under either election, we may be required to recognize income in excess of distributions from PFICs and our proceeds from dispositions of PFIC stock during that year, and such income will nevertheless be subject to the Annual Distribution Requirement and will be taken into account for purposes of the 4% U.S. federal excise tax. We intend to limit and/or manage our holdings in PFICs to minimize our liability for any taxes and related interest charges.

If we are a U.S. Shareholder (as defined below) of a foreign corporation that is treated as a controlled foreign corporation ("CFC"), we may be treated as receiving a deemed distribution (taxable as ordinary income) each year from such foreign corporation in an amount equal to our pro rata share of the corporation's income for the tax year (including both ordinary earnings and capital gains), whether or not the corporation makes an actual distribution during such year. In general, a foreign corporation will be classified as a CFC if more than 50% of the shares of the corporation, measured by reference to combined voting power or value, is owned (directly, indirectly, or by attribution) by U.S. Shareholders. A "U.S. Shareholder," for this purpose, is any U.S. person that possesses (actually or constructively) 10% or more of the combined voting power of all classes of shares of a corporation or 10% or more of the total value of shares of all classes of shares of such corporation. If we are treated as receiving a deemed distribution from a CFC, we will be required to include such distribution in our investment company taxable income regardless of whether we receive any actual distributions from such CFC, and we must distribute such income to satisfy the Annual Distribution Requirement and the Excise Tax Avoidance Requirement.

Income inclusions from a QEF or CFC will be "good income" for purposes of the 90% Income Test provided that they are derived in connection with our business of investing in stocks and securities or the QEF or the CFC distributes such income to us in the same taxable year to which the income is included in our income.

Foreign exchange gains and losses realized by us in connection with certain transactions involving non-dollar debt securities, certain foreign currency futures contracts, foreign currency option contracts, foreign currency forward contracts, foreign currencies, or payables or receivables denominated in a foreign currency are subject to Code provisions that generally treat such gains and losses as ordinary income and losses and may affect the amount, timing and character of distributions to our stockholders. Any such transactions that are not directly related to our investment in securities (possibly including speculative currency positions or currency derivatives not used for hedging purposes) could, under future Treasury regulations, produce income not among the types of "qualifying income" from which a RIC must derive at least 90% of its annual gross income.

In accordance with certain applicable Treasury regulations and guidance published by the IRS, a RIC that is publicly offered may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC, subject to a limitation that the aggregate amount of cash to be distributed to all stockholders must be at least 20% of the aggregate declared distribution. If too many stockholders elect to receive cash, the cash available for distribution must be allocated among stockholders electing to receive cash (with the balance of the distribution paid in stock). In no event will any stockholder, electing to receive cash, receive less than the lesser of (a) the portion of the distribution such stockholder elected to receive in cash, or (b) an amount equal to his or her entire distribution times the percentage limitation on cash available for distribution. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock. We have no current intention of paying dividends in shares of our stock in accordance with these Treasury regulations or published guidance.

 

*Failure to Qualify as a RIC*

If we fail to qualify for treatment as a RIC, and certain cure provisions are not applicable, we would be subject to U.S. federal tax on all of our taxable income (including our net capital gains) imposed at corporate rates. We would not be able to deduct distributions to our stockholders, nor would they be required to be made. Distributions, including distributions of net long-term capital gain, would generally be taxable to our stockholders as ordinary dividend income to the extent of our current and accumulated earnings and profits. Subject to certain holding period and other limitations under the Code, our corporate stockholders would be eligible to claim a dividend received deduction with respect to such dividend, and our non-corporate stockholders would generally be able to treat such dividends as "qualified dividend income," which is subject to reduced rates of U.S. federal income tax. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder's adjusted tax basis, and any remaining distributions would be treated as a capital gain. In order to requalify as a RIC, in addition to the other requirements discussed above, we would be required to distribute all of our previously undistributed earnings attributable to the period we failed to qualify as a RIC by the end of the first year that we intend to requalify as a RIC. If we fail to requalify as a RIC for a period greater than two taxable years, we may be subject to U.S. federal income tax imposed at corporate tax rates on any net built-in gains with respect to certain of our assets (i.e., the excess of the aggregate gains, including items of income, over aggregate losses that would have been realized with respect to such assets if we had been liquidated) that we elect to recognize on requalification or when recognized over the next five years.

The remainder of this discussion assumes that we qualify for RIC tax treatment for each taxable year.

 

*Taxation of U.S. Shareholders*

Distributions by us generally are taxable to U.S. Shareholders as ordinary income or capital gains. Distributions of our "investment company taxable income" (which is, generally, our net ordinary income plus realized net short-term capital gains in excess of realized net long-term capital losses) will be taxable as ordinary income to U.S. Shareholders to the extent of our current or accumulated earnings and profits, whether paid in cash or reinvested in additional shares of our common stock. To the extent such distributions paid by us to our stockholders taxed at individual rates are attributable to dividends from U.S. corporations and certain qualified foreign corporations, such distributions ("Qualifying Dividends") may be eligible for a current maximum tax rate of 20%. In this regard, it is anticipated that distributions paid by us will generally not be attributable to dividends and, therefore, generally will not qualify for the 20% maximum rate applicable to Qualifying Dividends. Distributions of our net capital gains (which are generally our realized net long-term capital gains in excess of realized net short-term capital losses) properly reported by us as "capital gain dividends" will be taxable to a U.S. Shareholder as long-term capital gains that are currently taxable at a maximum rate of 20% in the case of our stockholders taxed at individual rates, regardless of the U.S. Shareholder's holding period for his, her or its shares of our common stock and regardless of whether paid in cash or reinvested in additional common stock. Distributions in excess of our earnings and profits first will reduce a U.S. Shareholder's adjusted tax basis in such stockholder's shares of our common stock and, after the adjusted basis is reduced to zero, will constitute capital gains to such U.S. Shareholder.

We may retain some or all of our realized net long-term capital gains in excess of realized net short-term capital losses, but designate the retained net capital gain as a "deemed distribution." In that case, among other consequences, we will pay tax on the retained amount, each U.S. Shareholder will be required to include his, her or its share of the deemed distribution in income as if it had been actually distributed to the U.S. Shareholder, and the U.S. Shareholder will be entitled to claim a credit equal to his, her or its allocable share of the tax paid thereon by us. If the amount of tax that a U.S. Shareholder is treated as having paid exceeds the tax such stockholder owes on the capital gain distribution, such excess generally may be refunded or claimed as a credit against the U.S. Shareholder's other U.S. federal income tax obligations. The amount of the deemed distribution net of such tax will be added to the U.S. Shareholder's adjusted tax basis for his, her or its shares of our common stock. In order to utilize the deemed distribution approach, we must provide written notice to our stockholders prior to the expiration of 60 days after the close of the relevant taxable year. We cannot treat any of our investment company taxable income as a deemed distribution.

For purposes of determining (i) whether the Annual Distribution Requirement is satisfied for any year and (ii) the amount of capital gain dividends paid for that year, we may, under certain circumstances, elect to treat a dividend that is paid during the following taxable year as if it had been paid during the taxable year in question. If we make such an election, the U.S. Shareholder will still be treated as receiving the dividend in the taxable year in which the distribution is made. However, any dividend declared by us in October, November or December of any calendar year, payable to our stockholders of record on a specified date in such a month and actually paid during January of the following year, will be treated as if it had been received by our U.S. Shareholders on December 31 of the year in which the dividend was declared.

With respect to the reinvestment of dividends, if a U.S. Shareholder owns shares of our common stock registered in its own name, the U.S. Shareholder will have all cash distributions automatically reinvested in additional shares of our common stock unless the U.S. Shareholder opts out of the reinvestment of dividends by delivering a written notice to our dividend paying agent prior to the record date of the next dividend or distribution. Any distributions reinvested will nevertheless remain taxable to the U.S. Shareholder. The U.S. Shareholder will have an adjusted tax basis in the additional shares of our common stock purchased through the reinvestment equal to the amount of the reinvested distribution. The additional shares will have a new holding period commencing on the day following the day on which the shares are credited to the U.S. Shareholder's account.

If an investor purchases shares of our common stock after a dividend has been declared and shortly before the record date of a distribution, the price of the shares will include the value of the distribution. However, the stockholder will be taxed on the distribution as described above, despite the fact that, economically, it may represent a return of his, her or its investment.

A U.S. Shareholder generally will recognize taxable gain or loss if the U.S. Shareholder sells or otherwise disposes of his, her or its shares of our common stock. The amount of gain or loss will be measured by the difference between such U.S. Shareholder's adjusted tax basis in our common stock sold and the amount of the proceeds received in exchange. Any gain arising from such sale or disposition generally will be treated as long-term capital gain or loss if the U.S. Shareholder has held his, her or its shares for more than one year. Otherwise, it will be classified as short-term capital gain or loss. However, any capital loss arising from the sale or disposition of shares of our common stock held for six months or less will be treated as long-term capital loss to the extent of the amount of capital gain dividends received, or undistributed capital gain deemed received, with respect to such shares. In addition, all or a portion of any loss recognized upon a disposition of shares of our common stock may be disallowed if other shares of our common stock are purchased (whether through reinvestment of distributions or otherwise) within 30 days before or after the disposition.

In general, U.S. Shareholders taxed at individual rates currently are subject to a maximum U.S. federal income tax rate of 20% on their recognized net capital gain (i.e., the excess of recognized net long-term capital gains over recognized net short-term capital losses, subject to certain adjustments), including any long-term capital gain derived from an investment in our shares. Such rate is lower than the maximum rate on ordinary income currently payable by such U.S. Shareholders. In addition, individuals with modified adjusted gross incomes in excess of $200,000 ($250,000 in the case of married individuals filing jointly and $125,000 in the case of married individuals filing separately) and certain estates and trusts are subject to an additional 3.8% tax on their "net investment income," which generally includes gross income from interest, dividends, annuities, royalties, and rents, and net capital gains (other than certain amounts earned from trades or businesses), reduced by certain deductions allocable to such income. Corporate U.S. Shareholders currently are subject to U.S. federal income tax on net capital gain at the maximum 21% rate also applied to ordinary income. Non-corporate U.S. Shareholders with net capital losses for a year (i.e., capital losses in excess of capital gains) generally may deduct up to $3,000 of such losses against their ordinary income each year. Any net capital losses of a non-corporate U.S. Shareholder in excess of $3,000 generally may be carried forward and used in subsequent years as provided in the Code. Corporate U.S. Shareholders generally may not deduct any net capital losses for a year, but may carry back such losses for three years or carry forward such losses for five years.

Under applicable Treasury regulations, if a U.S. Shareholder recognizes a loss with respect to shares of $2 million or more for a non-corporate U.S. Shareholder or $10 million or more for a corporate U.S. Shareholder in any single taxable year (or a greater loss over a combination of years), the U.S. Shareholder must file with the IRS a disclosure statement on Form 8886. Direct U.S. Shareholders of portfolio securities are in many cases excepted from this reporting requirement, but under current guidance, U.S. Shareholders of a RIC are not excepted. Future guidance may extend the current exception from this reporting requirement to U.S. Shareholders of most or all RICs. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer's treatment of the loss is proper. U.S. Shareholders should consult their own tax advisors to determine the applicability of these regulations in light of their individual circumstances.

We (or the applicable withholding agent) will send to each of our U.S. Shareholders, as promptly as possible after the end of each calendar year, a notice reporting the amounts includible in such U.S. Shareholder's taxable income for such year as ordinary income and as long-term capital gain. In addition, the U.S. federal tax status of each year's distributions generally will be reported to the IRS (including the amount of dividends, if any, eligible for the 20% maximum rate). Dividends paid by us generally will not be eligible for the dividends-received deduction or the preferential tax rate applicable to Qualifying Dividends because our income generally will not consist of dividends.

We may be required to withhold U.S. federal income tax ("backup withholding") from all distributions to certain U.S. Shareholders (i) who fail to furnish us with a correct taxpayer identification number or a certificate that such stockholder is exempt from backup withholding or (ii) with respect to whom the IRS notifies us that such stockholder furnished an incorrect taxpayer identification number or failed to properly report certain interest and dividend income to the IRS and to respond to notices to that effect. An individual's taxpayer identification number generally is his or her social security number. Any amount withheld under backup withholding is allowed as a credit against the U.S. Shareholder's federal income tax liability, provided that proper information is provided to the IRS.

U.S. Shareholders that hold their common stock through foreign accounts or intermediaries will be subject to U.S. withholding tax at a rate of 30% on dividends if certain disclosure requirements related to U.S. accounts are not satisfied.

If we are not a "publicly offered regulated investment company" for any period, a non-corporate U.S. Shareholder's pro rata portion of certain of our expenses will be treated as an additional dividend to the shareholder and will not be deductible for non-corporate U.S. taxpayers. A "publicly offered regulated investment company" is a RIC whose shares are either (i) continuously offered pursuant to a public offering, (ii) regularly traded on an established securities market or (iii) held by at least 500 persons at all times during the taxable year. While we anticipate that we will qualify as a publicly offered RIC, we may not qualify as a publicly offered RIC for future taxable years. A U.S. Shareholder that is a tax-exempt organization for U.S. federal income tax purposes and therefore generally exempt from U.S. federal income taxation may nevertheless be subject to taxation to the extent that it is considered to derive unrelated business taxable income ("UBTI").

The direct conduct by a tax-exempt U.S. Shareholder of the activities we propose to conduct could give rise to UBTI. However, a RIC is a corporation for U.S. federal income tax purposes and its business activities generally will not be attributed to its stockholders for purposes of determining their treatment under current law. Therefore, a tax-exempt U.S. Shareholder generally should not be subject to U.S. taxation solely as a result of the shareholder's ownership of our common stock and receipt of dividends with respect to such common stock. Moreover, under current law, if we incur indebtedness, such indebtedness will not be attributed to a tax-exempt U.S. Shareholder. Therefore, a tax-exempt U.S. Shareholder should not be treated as earning income from "debt-financed property" and dividends we pay should not be treated as "unrelated debt-financed income" solely as a result of indebtedness that we incur. Legislation has been introduced in Congress in the past, and may be introduced again in the future, which would change the treatment of "blocker" investment vehicles interposed between tax-exempt investors and non-qualifying investments if enacted. In the event that any such proposals were to be adopted and applied to RICs, the treatment of dividends payable to tax-exempt investors could be adversely affected. In addition, special rules would apply if we were to invest in certain real estate mortgage investment conduits or taxable mortgage pools, which we do not currently plan to do, that could result in a tax-exempt U.S. Shareholder recognizing income that would be treated as UBTI.

 

*Taxation of Non-U.S. Shareholders*

The following discussion only applies to certain Non-U.S. Shareholders. Whether an investment in our common stock is appropriate for a Non-U.S. Shareholder will depend upon that person's particular circumstances. An investment in our common stock by a Non-U.S. Shareholder may have adverse tax consequences. Non-U.S. Shareholders should consult their tax advisors before investing in our common stock.

Distributions of our "investment company taxable income" to Non-U.S. Shareholders (including interest income and realized net short-term capital gains in excess of realized long-term capital losses) will be subject to withholding of U.S. federal tax at a 30% rate (or lower rate provided by an applicable treaty) to the extent of our current and accumulated earnings and profits unless an applicable exception applies. No withholding is required with respect to certain distributions if (i) the distributions are properly reported as "interest-related dividends" or "short-term capital gain dividends," (ii) the distributions are derived from sources specified in the Code for such dividends and (iii) certain other requirements are satisfied. No assurance can be provided as to whether any of our distributions will be reported as eligible for this exemption. If the distributions are effectively connected with the conduct of a trade or business in the United States (a "U.S. trade or business") by the Non-U.S. Shareholder (and if an income tax treaty applies, such distributions are attributable to a permanent establishment maintained by the Non-U.S. Shareholder within the United States), we will not be required to withhold U.S. federal tax if the Non-U.S. Shareholder complies with applicable certification and disclosure requirements, although the distributions will be subject to U.S. federal income tax at the rates applicable to U.S. persons. (Special certification requirements apply to a Non-U.S. Shareholder that is a foreign trust, and to a foreign partnership and such entities are urged to consult their own tax advisors.)

Actual or deemed distributions of our net capital gains to a Non-U.S. Shareholder, and gains realized by a Non-U.S. Shareholder upon the sale of our common stock, will generally not be subject to U.S. federal withholding tax and generally will not be subject to U.S. federal income tax unless the distributions or gains, as the case may be, are effectively connected with a U.S. trade or business of the Non-U. S. Shareholder (and if an income tax treaty applies, such distributions or gains, as applicable, are attributable to a permanent establishment maintained by the Non-U.S. Shareholder within the United States).

Under our reinvestment of dividends policy, if a Non-U.S. Shareholder owns shares of our common stock registered in its own name, the Non-U.S. Shareholder will have all cash distributions automatically reinvested in additional shares of our common stock unless the Non-U.S. Shareholder opts out of the reinvestment of dividends by delivering a written notice to our dividend paying agent prior to the record date of the next dividend or distribution. If the distribution is a distribution of our investment company taxable income, is not reported by us as a short-term capital gains dividend or interest-related dividend and it is not effectively connected with a U.S. trade or business of the Non-U.S. Shareholder (or, if required by an applicable income tax treaty, is not attributable to a U.S. permanent establishment of the Non-U.S. Shareholder), the amount distributed (to the extent of our current or accumulated earnings and profits) will be subject to withholding of U.S. federal income tax at a 30% rate (or lower rate provided by an applicable income tax treaty) and only the net after-tax amount will be reinvested in our common stock. The Non-U.S. Shareholder will have an adjusted tax basis in the additional shares of common stock purchased through the reinvestment equal to the amount reinvested. The additional shares will have a new holding period commencing on the day following the day on which the shares are credited to the Non-U.S. Shareholder's account.

The tax consequences to Non-U.S. Shareholders entitled to claim the benefits of an applicable tax treaty or that are individuals that are present in the U.S. for 183 days or more during a taxable year may be different from those described herein. Non-U.S. Shareholders are urged to consult their tax advisors with respect to the procedure for claiming the benefit of a lower treaty rate and the applicability of foreign taxes.

If we distribute our net capital gains in the form of deemed rather than actual distributions, a Non-U.S. Shareholder will be entitled to a U.S. federal income tax credit or tax refund equal to the stockholder's allocable share of the tax we pay on the capital gains deemed to have been distributed. In order to obtain the refund, the Non-U.S. Shareholder must obtain a U.S. taxpayer identification number and file a refund claim even if the Non-U.S. Shareholder would not otherwise be required to obtain a U.S. taxpayer identification number or file a U.S. federal income tax return. For a corporate Non-U.S. Shareholder, distributions (both actual and deemed), and gains realized upon the sale of our common stock that are effectively connected to a U.S. trade or business may, under certain circumstances, be subject to an additional "branch profits tax" at a 30% rate (or at a lower rate if provided for by an applicable treaty). Accordingly, investment in the shares may not be advisable for a Non-U.S. Shareholder.

We must generally report to our documented Non-U. S. Shareholders and the IRS the amount of dividends paid during each calendar year and the amount of any tax withheld. Information reporting requirements may apply even if no withholding was required because the distributions were effectively connected with the Non-U.S. Shareholder's conduct of a United States trade or business or withholding was reduced or eliminated by an applicable income tax treaty. This information also may be made available under a specific treaty or agreement with the tax authorities in the country in which the Non-U.S. Shareholder resides or is established. Under U.S. federal income tax law, interest, dividends and other reportable payments may, under certain circumstances, be subject to "backup withholding" at the then applicable rate (currently 24%). Backup withholding, however, generally will not apply to distributions to a Non-U.S. Shareholder of our common stock, provided the Non-U.S. Shareholder furnishes to us the required certification as to its non-U.S. status, such as by providing a valid IRS Form W-8BEN, IRS Form W-8BEN-E, or IRS Form W-8ECI, or certain other requirements are met. Backup withholding is not an additional tax but can be credited against a Non-U.S. Shareholder's federal income tax, and may be refunded to the extent it results in an overpayment of tax and the appropriate information is timely supplied to the IRS.

 

*FATCA*

Legislation commonly referred to as the "Foreign Account Tax Compliance Act," or "FATCA," generally imposes a 30% withholding tax on payments of certain types of income to foreign financial institutions ("FFIs") unless such FFIs either (i) enter into an agreement with the U.S. Treasury to report certain required information with respect to accounts held by certain specified U.S. persons (or held by foreign entities that have certain specified U.S. persons as substantial owners) or (ii) reside in a jurisdiction that has entered into an intergovernmental agreement ("IGA") with the United States to collect and share such information and are in compliance with the terms of such IGA and any related laws or regulations implementing such IGA. The types of income subject to the tax include U.S. source interest and dividends. While the Code would also require withholding on payments of the gross proceeds from the sale of any property that could produce U.S. source interest or dividends, the U.S. Treasury Department has indicated its intent to eliminate this requirement in subsequent proposed regulations, which state that taxpayers may rely on the proposed regulations until final regulations on issued. The information required to be reported includes the identity and taxpayer identification number of each account holder that is a U.S. person and certain financial information associated with the holder's account. In addition, subject to certain exceptions, this legislation also imposes a 30% withholding on certain payments to certain foreign entities that are not FFIs unless the foreign entity certifies that it does not have a greater than 10% owner that is a specified U.S. person or provides the withholding agent with identifying information on each greater than 10% owner that is a specified U.S. person. Depending on the status of a Non-U.S. Shareholder and the status of the intermediaries through which they hold their shares, Non-U.S. Shareholders could be subject to this 30% withholding tax with respect to distributions on their shares. Under certain circumstances, a Non-U.S. Shareholder might be eligible for refunds or credits of such taxes.

Non-U.S. Shareholders should consult their own tax advisors with respect to the U.S. federal income tax and withholding tax, and state, local and foreign tax consequences of an investment in the shares.

**SELLING STOCKHOLDERS**

This Prospectus covers the resale by the Selling Stockholders of up to an aggregate of 43,242,931 shares of common stock.

The private offering by which the Selling Stockholders acquired their securities from us was exempt from the registration provisions of the Securities Act.

The Selling Stockholders may sell some, all or none of their shares. We do not know how long the Selling Stockholders will hold the shares before selling them, and we currently have no agreements, arrangements or understandings with the Selling Stockholders regarding the sale of any of the shares.

The following table sets forth the shares beneficially owned, as of February 2, 2026, by the Selling Stockholders prior to the offering contemplated by this prospectus, the number of shares that the Selling Stockholders may offer and sell from time to time under this prospectus and the number of shares which the Selling Stockholders would own beneficially if all such offered shares are sold. Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act. The percentage of shares beneficially owned prior to and after the offering is based on 43,242,931 shares of our common stock outstanding as of February 2, 2026.

Each Selling Stockholder acquired its shares solely for investment purposes and not with a view to or for resale or distribution of such securities.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Selling Stockholder** | **Beneficial<br> Ownership<br> Before the<br> Offering** | **Number of<br> Shares<br> Being <br> Offered** | **Beneficial<br> Ownership<br> After the<br> Offering** | **Percentage<br> of <br> Ownership<br> After the<br> Offering** |
| 111 Investors LLC | 46000 | 46000 | &nbsp;&nbsp;&nbsp;&nbsp; 0 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| 1997 Reddy Family Trust | 23000 | 23000 | 0 | 0% |
| 2020 Laluyaux Family Trust | 92000 | 92000 | 0 | 0% |
| 3 Chetzim LLC<sup>1</sup> | 49817 | 49817 | 0 | 0% |
| Aaron Peck Revocable Trust | 27600 | 27600 | 0 | 0% |
| Aarti Grover | 92000 | 92000 | 0 | 0% |
| Aayush Phumbhra | 20833 | 20833 | 0 | 0% |
| Abdulaziz Al-Usaimi Son's Gen. Trading & Cont. Co. | 101200 | 101200 | 0 | 0% |
| Adam Marchick | 74 | 74 | 0 | 0% |
| Adam Usdan 2006 Dynasty Trust | 50000 | 50000 | 0 | 0% |
| Adam Usdan 2012 C.L.A.T. | 40000 | 40000 | 0 | 0% |
| Afreen Lakhani | 13800 | 13800 | 0 | 0% |
| Ahmed Abdulrahman I Alireza | 9200 | 9200 | 0 | 0% |
| Aidan Smith | 91 | 91 | 0 | 0% |
| AIG Denver SPV01, LLC | 92000 | 92000 | 0 | 0% |
| Akalya Fund Ltd. | 207657 | 207657 | 0 | 0% |
| AKJ I SCA SICAV-RAIF - Sub-Fund: NOIA Long Term Fundamental Growth | 368000 | 368000 | 0 | 0% |
| Corient Private Access, LP<sup>11</sup> | 10689829 | 10689829 | 0 | 0% |
| Alexander Doucette | 4600 | 4600 | 0 | 0% |
| Alexander Rotter | 46000 | 46000 | 0 | 0% |
| Alexander Taaffe | 9200 | 9200 | 0 | 0% |
| Alexandra Bendheim | 9200 | 9200 | 0 | 0% |
| Ali Abdullah A Al Khodari and Racha Mhd Samir Tiba | 9200 | 9200 | 0 | 0% |
| Ali Athar | 930 | 930 | 0 | 0% |
| Allegis 401k Roth Profit Sharing Plan FBO Peter G. Bodine | 4600 | 4600 | 0 | 0% |
| Alpenglow Total Return LP | 23000 | 23000 | 0 | 0% |
| AltoIRA Custodian FBO Igor Taber SEP IRA | 9200 | 9200 | 0 | 0% |
| Alvin A Bennati Jr | 18400 | 18400 | 0 | 0% |
| Ambwani-Bellofatto Family Trust | 27600 | 27600 | 0 | 0% |
| American Investment Return Opportunity Fund LP | 184000 | 184000 | 0 | 0% |
| Amir Rozwadowski | 23000 | 23000 | 0 | 0% |
| Amy Rosse 2012 Trust | 15000 | 15000 | 0 | 0% |

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| | | |
|:---|:---|:---|
| Andrew and Jessica Beebe Living Trust | 6900 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| Andrew Bonito | 9200 | 0% |
| Andrew Poklepovic and Tammy R. Spring | 9200 | 0% |
| Andrew Rodriguez | 5000 | 0% |
| Angela Stanley<sup>2</sup> | 118278 | 0% |
| Angry Teens LP | 103828 | 0% |
| Aniruddha Gadre | 9344 | 0% |
| Anna Chau | 9200 | 0% |
| Ansley J Masters Revocable Trust | 184000 | 0% |
| Anthony Frascella | 23000 | 0% |
| Anthony Thomas Guaraldi | 9200 | 0% |
| Antoni and Lidia Baranski | 23000 | 0% |
| Antoni Baranski | 957 | 0% |
| AR Family Trust | 46000 | 0% |
| ARB Holdings I LLC | 23000 | 0% |
| AREA Three Daughters SC, LLC | 4600 | 0% |
| Ari Segal | 6900 | 0% |
| Aria Khalili | 27600 | 0% |
| Arjun Chopra | 6900 | 0% |
| Armen Salbashian | 6900 | 0% |
| Art Cummings | 4600 | 0% |
| Arthur Marc Magun | 4600 | 0% |
| Aryeh Aslan | 23000 | 0% |
| Asad Zahur | 32200 | 0% |
| Athanasios Bouzoubardis | 18400 | 0% |
| Autumn Ventures LLC | 13800 | 0% |
| Avi Stein | 9200 | 0% |
| AWM Venture Fund V LP | 200000 | 0% |
| AWM Venture Fund VI, LP | 384511 | 0% |
| Belay On Group, LLC | 9200 | 0% |
| Ben and Beth Wilson Family Trust | 46000 | 0% |
| Benjamin D Black<sup>1,2</sup> | 439478 | 0% |
| Benjamin Hadary<sup>1</sup> | 1276 | 0% |
| Benjamin Krugman | 4600 | 0% |
| Benjamin Smith | 91 | 0% |
| Benstar Investments | 13800 | 0% |
| Beyond Moon 2, LLC | 239200 | 0% |
| Bi-Directional Disequilibrium Fund, L.P. | 46000 | 0% |
| Blu NH Insurance Group Inc | 92000 | 0% |
| Blu-B Nevada Par Equity LLC | 46000 | 0% |
| Blue Summit Investments LLC | 69000 | 0% |
| Blu-G Nevada Par Equity LLC | 184000 | 0% |
| Bobby Lo | 13800 | 0% |
| Bonnie L Peavy Trust | 23000 | 0% |
| Bradley Burgtorf | 920 | 0% |
| Bradley White | 9200 | 0% |
| Brian and Gean Ann Frack | 5000 | 0% |
| Brown Dog Capital, LLC | 27775 | 0% |

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| | | |
|:---|:---|:---|
| Bruce Bendheim | 4600 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| Bruce Jay Isackson | 184000 | 0% |
| BTA Finance Limited | 41400 | 0% |
| Buckley Atluru Generation Skipping Trust | 92000 | 0% |
| C2H2 LLC | 9200 | 0% |
| Cabral Family Trust, Dated April 17, 2001 | 69000 | 0% |
| Carmel Capital, LLC | 18400 | 0% |
| Casey E Adolfsson | 9200 | 0% |
| Catapult PL10 LLC | 300000 | 0% |
| CEM Alts, LP | 368000 | 0% |
| Chakradhar Reddy | 9200 | 0% |
| Chan, Hoi Lai Carman | 23051 | 0% |
| Chandrakant P Desai and Chandravati C Desai Revocable Trust DTD 07/13/1992 | 9200 | 0% |
| Charles Bradford Green Raymond | 9200 | 0% |
| Charles K. Woodworth | 4600 | 0% |
| Chestnut Management, LLC | 1000 | 0% |
| Chetan Tailor | 25300 | 0% |
| Chih-Hsiang Li and Chou-Chi Li | 5000 | 0% |
| Chow Lip Ming Juliette | 9200 | 0% |
| Chris Harrington | 4600 | 0% |
| Christophe Bach | 23000 | 0% |
| Christopher A. Tarr Revocable Trust Dated October 15, 2001 | 16468 | 0% |
| Christopher and Tammy Long | 5000 | 0% |
| Christopher C Tsui | 46000 | 0% |
| Christopher Crownover | 23000 | 0% |
| Christopher Mark Sinkey | 87273 | 0% |
| Chumma LLC | 6900 | 0% |
| Claudio Cornali | 11500 | 0% |
| Click VC Segregated Portfolio Company Limited - OPP5 Segregated Portfolio | 100000 | 0% |
| Connor Whitman | 2300 | 0% |
| Cornali/Choi 2012 Irrevocable Descendant Trust | 23000 | 0% |
| Craig Grube | 23000 | 0% |
| Craig Nolan<sup>1</sup> | 101114 | 0% |
| CSGA Living Trust | 27600 | 0% |
| Cullen Lee | 9200 | 0% |
| Cynthia Halper | 18400 | 0% |
| DAAANG Ventures II LLC | 2917 | 0% |
| Daaang Ventures, LLC | 1500 | 0% |
| Daniel Kennedy<sup>1</sup> | 103727 | 0% |
| Daniel Krul | 9200 | 0% |
| Darren Littman | 4600 | 0% |
| David and Ann Tillotson Community Property | 20000 | 0% |
| David Bastian | 9200 | 0% |
| David Dunford | 2300 | 0% |
| David G Kennedy Trust dtd 8/6/1993<sup>4</sup> | 18400 | 0% |
| David J Karp Revocable Trust | 23000 | 0% |
| David Jaffe | 23000 | 0% |
| David Katz | 9200 | 0% |
| David Rendina 2012 Irrevocable Trust | 23000 | 0% |
| David Robert Johnson | 9200 | 0% |
| David Shim | 18400 | 0% |

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| | | |
|:---|:---|:---|
| David Wolf | 23000 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| DCB Investments LLC | 5000 | 0% |
| DCLJ Partners LLC | 50000 | 0% |
| Deborah Cipriano | 32200 | 0% |
| Debra A. Somberg | 9200 | 0% |
| Debra L Romanello Family Lmtd Ptnshp Lllp | 9200 | 0% |
| Denee Holdings, LLC<sup>3</sup> | 381413 | 0% |
| Digital Trust Custodian FBO Inna Kassatkina Traditional IRA | 4600 | 0% |
| Digital Trust Custodian FBO Norman Fraser Jones SEP-IRA | 4600 | 0% |
| Dinsdale 2025 Irrevocable Trust FBO Orion Dinsdale<sup>4</sup> | 85913 | 0% |
| Disrupt Investments Limited | 46000 | 0% |
| DM Development Partners 401k Trust | 4600 | 0% |
| Donald & Mary Ross Family Trust 2007 | 23000 | 0% |
| Donald Riggs 2020 Insurance Trust | 23000 | 0% |
| Donna Riggs 2021 Irrev Trust U/A DTD 12-16-2021 | 23000 | 0% |
| Douglas Ian Loizeaux | 18400 | 0% |
| East West Capital Inc | 46000 | 0% |
| Edward and Amy Q Laderer | 184000 | 0% |
| Edward Grafton Chiles Rev Trust | 46000 | 0% |
| Edward L Helvey | 46000 | 0% |
| Edwin R Scheigert Irrevocable Trust | 9200 | 0% |
| Edwin Russell Scheigert Rev Trust | 23000 | 0% |
| Elevation, LLC | 24363 | 0% |
| Elham GH H H Alomani | 9200 | 0% |
| Eli Ben-Joseph | 4600 | 0% |
| Elisa Shelley<sup>1, 4</sup> | 57275 | 0% |
| Elizabeth Mily | 23000 | 0% |
| Ellsworth Holdings LLC | 23820 | 0% |
| Ely Lai | 13800 | 0% |
| Emily Nikoloudis | 2300 | 0% |
| Endeavor Partners, LP | 9200 | 0% |
| EpiGnosis, LLC | 1840 | 0% |
| Eric Chen | 27600 | 0% |
| Eric Johnson | 1000 | 0% |
| Eric Schulman 2012 Trust | 4600 | 0% |
| Eric Thaller Revocable Trust | 13800 | 0% |
| ERL Capital LLC | 6900 | 0% |
| Erwyn Naidoo | 4600 | 0% |
| ETS Risk Management | 9200 | 0% |
| Evan Mittman | 23000 | 0% |
| Fargo Investment (BVI) Limited | 1094 | 0% |
| Fergs Sports Bar and Grill Inc | 9200 | 0% |
| Fiduciary Trust International Private Equity Access Program LP | 80000 | 0% |
| Foundation for Opioid Response Efforts | 100000 | 0% |
| Fu Jou Chen | 13800 | 0% |
| Gabriel Nell & Xia Chen Family Trust | 27600 | 0% |
| Gannott Smith<sup>4</sup> | 53449 | 0% |
| Gary Hsueh | 20842 | 0% |
| Gecco Capital LLC | 460000 | 0% |
| Geoffrey Valentino | 13800 | 0% |
| George and Susan Frack | 5000 | 0% |

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| | | |
|:---|:---|:---|
| George S Beal | 46000 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| Georgia Ann Snell Dynasty Trust U/A Dtd 7/27/2021 | 18400 | 0% |
| Gerald and Margaret Keightley | 5000 | 0% |
| Gerald Shelley<sup>4</sup> | 9200 | 0% |
| Gin Mill Nevada Trust<sup>3</sup> | 355745 | 0% |
| GJT Group, LLC | 9200 | 0% |
| Glen Ikeda | 92000 | 0% |
| Gloria Gennaro<sup>1</sup> | 15307 | 0% |
| Goldhorse Securities Limited - Client Account | 50000 | 0% |
| Gordon Greenwood | 23000 | 0% |
| Gramercy Ventures | 13800 | 0% |
| Grasshopper Corp. | 23000 | 0% |
| Greg Delmonte | 18400 | 0% |
| Gregory Alan Crown | 18400 | 0% |
| GS Asset Management, LLLP | 9200 | 0% |
| Guy and Melissa Gryspeerdt | 9200 | 0% |
| Hamad A KH H AlSumait | 16100 | 0% |
| Hanna and Matthew Foundation | 50000 | 0% |
| Hanover Capital, LLC | 18400 | 0% |
| Harper Bdit Trust | 18400 | 0% |
| Harrison Miller and Clare McCamy Family Trust | 300000 | 0% |
| Hashem Shehabi | 13800 | 0% |
| HCC Management LP | 23000 | 0% |
| Heavy Rotation Management DMCC | 46000 | 0% |
| Henry W Boyce III Revocable Trust UAD 08-05-2011 | 25000 | 0% |
| Henry Worth Boyce IV | 5000 | 0% |
| Heritage Holding Limited Partnership | 23000 | 0% |
| HHM Investments, LLC | 9200 | 0% |
| Hollencrest Bayview Partners, LP | 138000 | 0% |
| HPJ Ventures, LLC | 184000 | 0% |
| Hsiao Min Jesse Tsui-Huang | 4600 | 0% |
| Huang Ruan 2020 Trust | 92000 | 0% |
| I2BF KEYSTONE LLC | 184000 | 0% |
| Ian Patrick Sobieski Revocable Trust | 9200 | 0% |
| Imagine Holdings LLC | 18400 | 0% |
| Inderdeep Huja | 13800 | 0% |
| INPA Capital Group, LLC | 80500 | 0% |
| Intervis Partners LLC | 25000 | 0% |
| Intracoastal Capital LLC | 23000 | 0% |
| Inversiones AMAQ S.A. | 50000 | 0% |
| IRA Financial Trust Company CFBO Bryan Jacobson | 46000 | 0% |
| IRA Financial Trust Company CFBO Albert Hu | 9200 | 0% |
| IRA Financial Trust Company CFBO Anton Schirmang Sr | 27600 | 0% |
| IRA Financial Trust Company CFBO Kenneth Tran | 23000 | 0% |
| IRA Financial Trust Company CFBO Michael Williams | 4600 | 0% |
| IRA Financial Trust Company CFBO Michael Wong | 46000 | 0% |
| IRA Financial Trust Company CFBO Tiffani Renard | 18400 | 0% |
| IRAR Trust FBO Gary M Rabkin, Account #3605291 | 9200 | 0% |
| Iroquois Capital Investment Group LLC | 46000 | 0% |
| Iroquois Master Fund Ltd. | 46000 | 0% |
| Isaac Hazan | 23000 | 0% |

---

---

| | | |
|:---|:---|:---|
| Isackson Family Trust | 46000 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| Jack Dinsdale<sup>4</sup> | 46000 | 0% |
| Jacob Philpotts | 920 | 0% |
| Jacob Roach | 10000 | 0% |
| Jacqueline Xu | 9200 | 0% |
| Jacques Youssefmir | 27600 | 0% |
| Jahanshah John Bral | 4600 | 0% |
| James E. Gerber | 9200 | 0% |
| James Gilmore III | 10000 | 0% |
| James Ryan Jetton | 4600 | 0% |
| Janet Leahy | 46000 | 0% |
| Jason Whitman | 2300 | 0% |
| Jayesh Desai | 13800 | 0% |
| JDA Family Trust | 200000 | 0% |
| Jeffrey and Carolyn Elgin | 5000 | 0% |
| Jeffrey Goldblum Trust | 9200 | 0% |
| Jeffrey Hoffman | 4600 | 0% |
| Jennifer Lo Chan | 9200 | 0% |
| Jennifer white Kelly | 9200 | 0% |
| Jesus Take the Wheel LLC | 2300 | 0% |
| JL2M Holdings, LLC | 18400 | 0% |
| John Bendheim | 13800 | 0% |
| John Goller | 2760 | 0% |
| John Parsons Rev Trust DTD May 15, 2023 | 9200 | 0% |
| John Spinale | 32133 | 0% |
| John W. Mitchell | 4600 | 0% |
| Johnston Brothers, LLC | 11500 | 0% |
| Jon Sopher | 9200 | 0% |
| Jonathan Auerbach Revocable Trust dated 12/23/2009, as amended and restated on July 6, 2016 | 50000 | 0% |
| Jonathan Godin | 9200 | 0% |
| Jonathan Harris | 23000 | 0% |
| Jonathan Pusey | 920 | 0% |
| Jordan Michael Williams | 2917 | 0% |
| Jordan Waxman | 9200 | 0% |
| Jose Vazquez | 4600 | 0% |
| Joseph Lord | 13800 | 0% |
| Joseph Puthussery and Kiran Pala Trust | 40000 | 0% |
| Joshua Piuma | 6900 | 0% |
| Julie A. Choi | 11500 | 0% |
| June M. Sabina Living Trust | 40000 | 0% |
| Justin Roach | 10000 | 0% |
| Justin Szlasa | 4600 | 0% |
| JYSW Trust | 23000 | 0% |
| Karches 2009 Descendants Trust U/A DTD 10/13/2009 | 92000 | 0% |
| Kathryn Smith | 181 | 0% |
| KCT SL Holdings LLC | 184000 | 0% |
| Kenneth B. Shulman | 4600 | 0% |
| Kenneth Tran | 23000 | 0% |
| Kenneth W Coffey | 9200 | 0% |
| Kerrigan Bryant | 2300 | 0% |
| Kevin Kunkel | 12880 | 0% |

---

---

| | | |
|:---|:---|:---|
| Kevin Taguchi, Inc. | 32200 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| KFP Private, LLC | 138000 | 0% |
| KidZ, LLC | 23000 | 0% |
| Kim Bendheim | 4600 | 0% |
| Klinger Living Trust | 4600 | 0% |
| Ko Family Trust | 46000 | 0% |
| Konrad Investments, LLC | 92000 | 0% |
| Kopin Family Trust | 23000 | 0% |
| Kyle and Danielle Kupchak | 5000 | 0% |
| Kyle Asher | 23000 | 0% |
| Kyle M Shea | 23000 | 0% |
| La Plata Trust | 46000 | 0% |
| Lansing Tyler Scriven | 9200 | 0% |
| Lassen Street LLC | 6900 | 0% |
| Laure A Blume Exemption Trust | 92000 | 0% |
| Lawson Family Trust | 9200 | 0% |
| LBCW Holdings, LP | 92000 | 0% |
| Leckie Family Trust<sup>5</sup> | 29313 | 0% |
| Lemberg Foundation, Inc. | 75000 | 0% |
| Lemrac Trust | 9200 | 0% |
| Lester Sutphin Jr. and Anne Sutphin | 5000 | 0% |
| Limitless Ventures II, LLC | 2917 | 0% |
| Lori and Michael Amoroso | 4600 | 0% |
| LOTTIEQ, LLC<sup>6</sup> | 99285 | 0% |
| Lucifer Properties I LLC<sup>7</sup> | 637469 | 0% |
| Luis Carlos Pena | 1840 | 0% |
| Luna Holdings II LLC | 2917 | 0% |
| Lung-Sang G Lam | 4600 | 0% |
| LV Business Consulting Inc. (d/b/a LVBC Inc.) | 4600 | 0% |
| M Summit, S.A. DE C.V. | 46000 | 0% |
| Madeleine Black<sup>4</sup> | 57275 | 0% |
| Madison Mussatt | 4600 | 0% |
| Madison Trust Company FBO Matthew Stevens M25012366 | 6900 | 0% |
| Marcia Morris | 4600 | 0% |
| Margao II, LP | 90167 | 0% |
| Margao, LP | 50000 | 0% |
| Maria Stone | 91 | 0% |
| Marilyn Rodriguez | 5000 | 0% |
| Marino Family Dynasty Trust Exempt - FBO Michael J. Marino | 23000 | 0% |
| Marino Family Dynasty Trust Exempt - FBO Nicole Herrmann | 23000 | 0% |
| Marino Family Dynasty Trust Exempt - FBO Steven G. Marino | 23000 | 0% |
| Mariposa Grove Partners, LLC | 23000 | 0% |
| Mark Alan Sinkey and Marian Reed Sinkey, Trustees of the Sinkey Family Living Trust | 27600 | 0% |
| Mark and Tara Deane | 4600 | 0% |
| Mark F Overstreet Revocable Trust | 9200 | 0% |
| Mark J. Jenness and Ann D. Jenness JTWROS | 34200 | 0% |
| Mark O'Shea | 36800 | 0% |
| Mark Perutz | 23000 | 0% |
| Mark Stevenson | 9200 | 0% |
| Martin H Kanipe Jr | 32200 | 0% |
| Martin Neill Kon | 4167 | 0% |

---

---

| | | |
|:---|:---|:---|
| Mary Sue Bennati | 9200 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| Marzouq F H AlMutairi | 46000 | 0% |
| Mataya Family Trust Dated August 10, 2016 | 10000 | 0% |
| Mathew Zaheri | 184000 | 0% |
| Matthew Hiatt | 4600 | 0% |
| Matthew McDavid | 2300 | 0% |
| Matthew Mountford | 4600 | 0% |
| Maxwell Christiansen | 9200 | 0% |
| Mayra I. Lozano | 2917 | 0% |
| MEC ECC Exempt Trust | 92000 | 0% |
| Melzer Fund I, LLC | 27600 | 0% |
| Mezistrano Legacy Trust | 10000 | 0% |
| MHC Partners LLC | 92000 | 0% |
| Michael Allan Vincent Mountford | 9200 | 0% |
| Michael and Cynthia Joyce | 25000 | 0% |
| Michael and Elizabeth Martin | 25000 | 0% |
| Michael and Terri Long | 5000 | 0% |
| Michael Campbell | 18400 | 0% |
| Michael Charles Freedman | 4600 | 0% |
| Michael D. Rendina 2012 Irrevocable Trust | 23000 | 0% |
| Michael Dennis | 46000 | 0% |
| Michael Dulgarian | 18400 | 0% |
| Michael E Rodriguez | 9200 | 0% |
| Michael G Wiener Revocable Trust | 9200 | 0% |
| Michael Ghaffary | 9200 | 0% |
| Michael Gordon | 4600 | 0% |
| Michael Gore | 9200 | 0% |
| Michael John Dinsdale 2015 Trust<sup>8</sup> | 670836 | 0% |
| Michael Joseph Ferrara | 23000 | 0% |
| Michael L. Stoppelman Revocable Trust U/A/D 4/28/2016 | 9200 | 0% |
| Michael Lousteau | 18400 | 0% |
| Michael Robinson | 5000 | 0% |
| Michael Rosenfeld | 920 | 0% |
| Michael Simonsen | 9200 | 0% |
| Michael Smith, Jr. | 9200 | 0% |
| Michael Tanne Roth IRA | 4600 | 0% |
| Michael W Dufresne Revocable Trust | 13800 | 0% |
| Michael W. Galvin, Jr. Revocable Trust | 5000 | 0% |
| Michael Walsh | 4600 | 0% |
| Michelle Kleytman<sup>1</sup> | 2917 | 0% |
| Michelle Littman | 4600 | 0% |
| Minh Tri Bui | 46000 | 0% |
| Mirabeau 2 LLC | 9200 | 0% |
| Mogli Alpine Ventures LLC | 1000 | 0% |
| Mohammad Reza Navid | 9200 | 0% |
| Moishe Ziv 2023 Family Trust U/A DTD 11/29/23 | 23000 | 0% |
| Morad Zahabian | 46000 | 0% |
| Morgan Mussatt | 4600 | 0% |
| Moritz Jonathan Hieronymus Hill | 9200 | 0% |
| Moshe Greenwald | 23000 | 0% |
| Motive Science LLC | 46000 | 0% |

---

---

| | | |
|:---|:---|:---|
| Muhammed Taha Yesilhark | 8334 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| Nader Afshar | 107407 | 0% |
| Narender Singh | 92000 | 0% |
| NAS Family Trust | 11500 | 0% |
| Nenita Panizales | 4600 | 0% |
| Newpath LLC | 23000 | 0% |
| Nicholas Jones | 13800 | 0% |
| Nicholas Mountford | 4600 | 0% |
| Nicholas P Earl Revocable Trust<sup>9</sup> | 129313 | 0% |
| Niraj Patel | 9200 | 0% |
| NO10 SP | 1334000 | 0% |
| OGTM Holdings LLC | 18400 | 0% |
| Olaf Neubert | 13800 | 0% |
| Olentangy Holdings, LLC | 4565 | 0% |
| Orange Zebra 1, LLC | 62060 | 0% |
| Orions Belt 1 LLC<sup>8</sup> | 572749 | 0% |
| Ostrich Development Co. LLC | 23000 | 0% |
| OxGoldrush Ventures II LLC - Series 2 | 78292 | 0% |
| Pacific Premier Trust Custodian FBO Howard Rosenfeld IRA | 9200 | 0% |
| Pacific Premier Trust FBO Jeffrey Bazar Traditional IRA | 9200 | 0% |
| Pamela Schulman 2012 Trust | 4600 | 0% |
| Parham Partielli | 46000 | 0% |
| Partner Ventures Investments LLC | 18400 | 0% |
| Patrice Giami | 23000 | 0% |
| Paula Abdul Inc | 9200 | 0% |
| Peggy Ann Crews Family Trust | 9200 | 0% |
| Perennial Group LLC | 9200 | 0% |
| Perry Metviner & Karen Asher | 50600 | 0% |
| Peter Embiricos | 46000 | 0% |
| Peter Soderling | 9200 | 0% |
| Petrillo 2021 Irrevocable Grantor Trust | 23000 | 0% |
| Pezold Family Foundation | 92000 | 0% |
| Philip Galligan | 5000 | 0% |
| Phillimore Group, LLC | 184000 | 0% |
| Pola-Karr Family Trust Agreement | 2760 | 0% |
| Raban Freiherr Spiegel von und zu Peckelsheim | 9200 | 0% |
| Rainier Capital LLC | 184000 | 0% |
| Randall Rose Family Trust | 92000 | 0% |
| Rania Al Khalifa | 9200 | 0% |
| Rashid Saad Al Rashid & Sons | 46000 | 0% |
| Red Earth Investments, LLC | 18400 | 0% |
| Redesdale Partners, LLC | 10000 | 0% |

| Reza Afshar | 13800 | 0% |
| Richard and Karen Gullotti | 5000 | 0% |
| Richard Farber | 36800 | 0% |
| Richard Friedenheim and Chauheung Leung | 5000 | 0% |
| Richard G Marini, Jr | 27775 | 0% |
| Richard Giroux | 23000 | 0% |
| Richard Schulman 2012 Trust | 4600 | 0% |
| Richard Slaten and Katharine Latimer | 20000 | 0% |

---

---

| | | |
|:---|:---|:---|
| Ricky Ray Riggs 2020 Irrevocable Trust U/A DTD 3-5-2020 | 23000 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| Riposte Global Opportunity Master Fund, LP | 920000 | 0% |
| RJ Gill Family 2021 NG Dynasty Trust | 23000 | 0% |
| RLR Irrevocable Trust | 23000 | 0% |
| Robb Monkman | 18400 | 0% |
| Robert Abballe | 10000 | 0% |
| Robert and Gabrielle Mellon | 46358 | 0% |
| Robert Carter | 49200 | 0% |
| Robert Cleary | 27600 | 0% |
| Robert E Miller Revocable Trust | 18400 | 0% |
| Robert J Grant III | 4600 | 0% |
| Robert Mashaal | 138000 | 0% |
| Robert Matza | 92000 | 0% |
| Robert Matza 2011 GST Exempt Irrevocable Trust | 92000 | 0% |
| Robert Walters | 9200 | 0% |
| Rochelle Nadhiri | 12500 | 0% |
| Rodrick Rinker | 156400 | 0% |
| Ronald Kaplan | 23000 | 0% |
| Rony Ledany | 23000 | 0% |
| Rosell III, LLC | 23000 | 0% |
| Rosewood Capital, LLC | 5000 | 0% |
| RRADAM, LLC | 92000 | 0% |
| Ruan Revocable Trust | 276000 | 0% |
| Ruppen Consultants Ltd | 138000 | 0% |
| Ryan Geoffrey Halper | 13800 | 0% |
| Ryan McDermott | 11217 | 0% |
| Sager SH M A M Madouh | 11040 | 0% |
| Salauat Khissimov | 92000 | 0% |
| Salma Rashed S AlRashed | 23000 | 0% |
| Salvador V Campisi Rev Trust | 23000 | 0% |
| Samuel Kazarnovsky | 23000 | 0% |
| Samuel Logan White | 2300 | 0% |
| Samuel Sullivan | 46000 | 0% |
| Sarlo Family Living Trust | 9200 | 0% |
| SBG Irrevocable Trust | 23000 | 0% |
| Scacco Trust uad 02/08/2000 | 23000 | 0% |
| Schwartz Family 2021 Irrevocable Trust | 9200 | 0% |
| Schwartz Family Revocable Trust | 4600 | 0% |
| Scott Dubin<sup>1</sup> | 49 | 0% |
| Scott Jeremy Kehoe | 1840 | 0% |
| Scott Sullinger | 1840 | 0% |
| Sean Hester | 23000 | 0% |
| Selborne Capital LLC | 6942 | 0% |
| Senvest Global (KY), LP | 345000 | 0% |
| Senvest Master Fund, LP | 690000 | 0% |
| Senvest Technology Partners Master Fund, LP | 345000 | 0% |
| Shadek Family Trust | 138000 | 0% |
| Shahram Soroudi | 18400 | 0% |
| Shaina Dinsdale<sup>4</sup> | 13800 | 0% |
| Shaker M A M Madouh | 27600 | 0% |
| Shogun LLC | 18400 | 0% |
| SMIP1, Inc | 46000 | 0% |

---

---

| | | |
|:---|:---|:---|
| Southeastern University, Inc | 92000 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| SouthFork Ventures, LLC | 18400 | 0% |
| Spencer Charles Tall | 18400 | 0% |
| Stacey K Bolger Management Trust | 10000 | 0% |
| Stanley Razny I Ingrid M Razny | 46000 | 0% |
| Stanley Shashoua | 23000 | 0% |
| Stansbury Partners, LP | 75000 | 0% |
| Steen W. Simonsen Revocable Trust dated 4/25/2013 | 9200 | 0% |
| Stephen Conlin | 4600 | 0% |
| Stephen M. Fisher 2022 Separate Property Trust | 75000 | 0% |
| Stephen Swiatkiewicz | 36800 | 0% |
| Stifel, Nicolaus & Company, Incorporated<sup>12</sup> | 250238 | 0% |
| Summerdale Management LLC | 23000 | 0% |
| Syed Adil Rehman | 25300 | 0% |
| Syon Capital Partners I, LP | 513672 | 0% |
| Syon Capital PL10, LP | 513672 | 0% |
| Tal Shachar | 4600 | 0% |
| Tanya Mathews and Patrick Chambers | 16100 | 0% |
| Tar Trust Restated 9-6-2012 | 5000 | 0% |
| Tenex Investments Ltd. | 276000 | 0% |
| Terrence O'Brien | 9200 | 0% |
| Tharwa Investment Company | 92000 | 0% |
| The A1HP 2021 Delaware Dynasty Trust | 27600 | 0% |
| The A2HP 2021 Delaware Dynasty Trust | 27600 | 0% |
| The A3HP 2021 Delaware Dynasty Trust | 27600 | 0% |
| The Albright Family Trust dated August 9, 2018 | 9200 | 0% |
| The Andrew Flannery Westergren Revocable Living Trust | 50000 | 0% |
| The Attard Family Trust 8/12/15 | 750 | 0% |
| The Bana Family Trust dated January 26, 2024 | 230000 | 0% |
| The Beckett Crawford Lynch 2016 Irrevocable Trust | 18400 | 0% |
| The Boeding Family Trust | 46000 | 0% |
| The Borenstein Living Trust | 13800 | 0% |
| The Brennan Family Trust | 250000 | 0% |
| The Bromberg Family Trust | 92000 | 0% |
| The Butters 16-Year Charitable Trust<sup>4</sup> | 9200 | 0% |
| The Butters Xmas Charitable Trust<sup>4</sup> | 9200 | 0% |
| The Claire Mercer Bastian Revocable Trust | 9200 | 0% |
| The EAT-2 Irrevocable GST Trust | 9200 | 0% |
| The Edwin L Hall Revocable Living Trust | 9200 | 0% |
| The Eric and Susan Luhrs Living Trust | 20000 | 0% |
| The Falsetti-Searfoss 1998 Trust | 25000 | 0% |
| The Franklyn Chien Living Trust | 13800 | 0% |
| The Gino Tarantino 2000 Trust U/A DTD 06/01/2000 | 23000 | 0% |
| The GMA 2020 Descendants Trust | 13800 | 0% |
| The Gordon S. Black and Annika F. Van Wambeke 2020 Revocable Trust, dated February 12, 2020<sup>4</sup> | 20000 | 0% |
| The Grant and Shawna Sisler Living Trust | 9200 | 0% |
| The Headley Trust Dated 5/4/2001 | 18400 | 0% |
| The Hirson Family Living Trust | 23000 | 0% |
| The Hsueh - Lampsa Family Trust | 23000 | 0% |
| The Ignacio Raul Rodriguez Revocable Trust | 5000 | 0% |
| The Itamar Novick and Shira Mor Novick Living Trust | 18400 | 0% |

---

---

| | | |
|:---|:---|:---|
| The Joan Stiefel Rodriguez Revocable Trust | 60000 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| The Jon Staenberg Trust | 20000 | 0% |
| The Kyle Crawford Lynch 2016 Irrevocable Trust | 18400 | 0% |
| The Marcus Family Trust | 10000 | 0% |
| The Matthew Kilgroe Trust | 9200 | 0% |
| The Mutant Shark Pond Trust | 103828 | 0% |
| The NKD Family Trust | 230000 | 0% |
| The Parker MBA Trust | 9200 | 0% |
| The Peltz 2020 Irrevocable Grantor Trust | 10120 | 0% |
| The Peter Detkin and Michelle Oates Trust | 50000 | 0% |
| The Phelps Family Revocable Trust Dated 08.08.2008 | 98377 | 0% |
| The Phumbrha Living Trust | 46000 | 0% |
| The Poncetta Living Trust | 50000 | 0% |
| The Rajiv & Krutika Patel 2006 Trust | 230000 | 0% |
| The Ronald Yen Trust | 92000 | 0% |
| The Roy M Korins Revocable Trust U/A DTD 12/21/2022 | 23000 | 0% |
| The Rubin Family Trust | 9200 | 0% |
| The San Remo Trust | 138000 | 0% |
| The Scott M. Faber Trust u/d/d August 18, 2015, as amended | 73600 | 0% |
| The Shawn Harold Owen Separate Property Revocable Trust | 25000 | 0% |
| The Simon and Maral Ahdoot Family Trust | 9200 | 0% |
| The Sylvia G Walker Revocable Trust | 7500 | 0% |
| The Thomas Everett Perkins, JR. and Elizabeth King Perkins Trust Dated July 19, 2004 | 5000 | 0% |
| The Walters Group | 230000 | 0% |
| The William Paul Galloway Trust | 9200 | 0% |
| The Wilson Westergren Living Trust | 50000 | 0% |
| The Zachary and Casey Lynch Living Trust dated February 24, 2009 | 36800 | 0% |
| Third Lemco Family Partners | 67500 | 0% |
| Thomas A Rosse Marital Trust | 30000 | 0% |
| Thomas Kaufman 2019 Irrevocable Trust | 13800 | 0% |
| Thomas S Gay Revocable Trust | 5000 | 0% |
| Thomas W. Lamb Revocable Living Trust | 9200 | 0% |
| ThreeStone, L.P. | 12500 | 0% |
| Tibidabo Revocable Trust | 46000 | 0% |
| Timothy Christopher Dinsdale<sup>4</sup> | 26220 | 0% |
| Todd Goldman | 10000 | 0% |
| Tomi Kovanen | 6900 | 0% |
| Travis Smith | 91 | 0% |
| Trellus Partners, LP | 50000 | 0% |
| Trellus Small Cap Opportunity Fund, LP | 50000 | 0% |
| Trent E Tucker Revocable Trust | 368000 | 0% |
| UBS financial Services FBO Glen Ikeda IRA | 46000 | 0% |
| UBS Financial Services FBO Grace A. Ikeda | 46000 | 0% |
| United Family General Trading Company | 46000 | 0% |
| Utmost Luxembourg S.A. | 143743 | 0% |
| Vayam Revocable Trust | 368000 | 0% |
| Velpar Investments, Inc. | 23000 | 0% |
| Velvet Rope Management LLC | 6900 | 0% |
| Veneto Imperium LLC | 11500 | 0% |
| Vesper Road, LLC 401k Plan | 23800 | 0% |
| Victory Spectacular Fund SPC - Pioneer Unicorn Fund Segregated Portfolio | 190878 | 0% |
| Victory Spectacular Fund SPC - Spectacular Opportunity Fund Segregated Portfolio | 100000 | 0% |

---

---

| | | |
|:---|:---|:---|
| Viewpoint Strategic Partners, LLC | 46000 | &nbsp;&nbsp;&nbsp;&nbsp; 0% |
| Vishal Grover | 62060 | 0% |
| Vivian Chow<sup>2</sup> | 26188 | 0% |
| Vivify Finance Consulting LLC<sup>10</sup> | 26188 | 0% |
| VSC Ventures PL10, LLC. | 1219046 | 0% |
| Warren H Phillips 2015 Trust | 20000 | 0% |
| Wayne Chang Revocable Trust | 13800 | 0% |
| William A. Pusey Family Trust | 9200 | 0% |
| William Blake Winchell 401(k) Profit Sharing Plan | 27600 | 0% |
| William Burge Charles Schwab & Co Inc Cust IRA Contributory | 4600 | 0% |
| William G Wysong III and Jenna M Wysong as JTWROS | 5000 | 0% |
| William Greene Jr | 69000 | 0% |
| William H Porter 2010 Irrevocable Trust, Hatcher Porter TTEE | 9200 | 0% |
| William H Porter 2010 Irrevocable Trust, Martha H Porter TTEE | 9200 | 0% |
| William H Porter Spousal Lifetime Access Trust, Martha Haley Porter TTEE | 9200 | 0% |
| William Joseph Brennan IV | 20000 | 0% |
| William L. Wu Separate Property Revocable Trust | 9200 | 0% |
| William P Reilly Jr. Family Trust | 4600 | 0% |
| William Papariella Separate Property Trust | 46000 | 0% |
| William Patrick Reilly III | 4600 | 0% |
| William Wu and Yon Soo Cho, Community Property with Right of Survivorship (CPWROS) | 13800 | 0% |
| Willowleaf III LLC | 2917 | 0% |
| Wilson 2021 Trust | 46000 | 0% |
| Windham Ventures LLC | 23000 | 0% |
| WMTA Investors, G.P. | 46000 | 0% |
| Wolf River Opportunity Series, LLC - Series Q | 294400 | 0% |
| Woodland Corporation, LLC | 46000 | 0% |
| Xenia Indemnity, Inc. | 92000 | 0% |
| Yang Tran | 2300 | 0% |
| Yi Lin | 30360 | 0% |
| Yoel Braver | 23000 | 0% |
| Youngbloods1, LLC | 46000 | 0% |
| Youngbloods2, LLC | 46000 | 0% |
| Yousef Rashed S AlRashid | 18400 | 0% |
| YSG Family Trust | 92000 | 0% |
| Zachary Charlse | 2300 | 0% |
| Zack S Cherry and Ashlee L Cherry JTWROS | 36800 | 0% |
| **Total** | **43242931** | **0%** |

---

&nbsp;&nbsp;&nbsp;&nbsp;1. These stockholders are employees of Akkadian, an affiliate of the
 Adviser, or entities owned and/or controlled by such employees.

&nbsp;&nbsp;&nbsp;&nbsp;2. These stockholders are officers and/or directors of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;3. This entity is owned and/or controlled by Peter Smith, an officer of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;4. These are stockholders who are immediate family members of officers
 and/or directors of the Fund or entities for which the beneficiary is an immediate family member of an officer and/or director of
 the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;5. This entity is owned and/or controlled by Lars Leckie, a director of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;6. This entity is owned and/or controlled by Angela Stanley, an officer of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;7. This entity is owned and/or controlled by Benjamin Black, a director
 and executive officer of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;8. This entity is owned and/or controlled by Michael Dinsdale, a director
 and executive officer of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;9. This entity is owned and/or controlled by Nicholas Earl, a director of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;10. This entity is owned and/or controlled by Vivian Chow, a director of the Fund.

11. As of February 2, 2026, this stockholder held more than 5% of the outstanding shares of the Fund.

12. This entity is acting as the Fund's financial advisor in connection with the Fund's direct listing, as described in the section "Plan
of Distribution." This entity is also affiliated with Stifel Bank.

Shares of our common stock sold by the Selling Stockholders will generally be freely tradable. Sales of substantial amounts of our common stock, including by the Selling Stockholders, or the availability of such common stock for sale, whether or not sold, could adversely affect the prevailing market prices for our common stock.

**PLAN OF DISTRIBUTION**

The Selling Stockholders may, from time to time, sell any or all of their securities covered hereby on the Exchange or any other trading market, stock exchange or other trading facility on which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices. The Selling Stockholders may use any one or more of the following methods when selling securities:

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● distribution to employees, members, limited partners or stockholders of the Selling Stockholders;

● in transactions through broker-dealers that agree with a Selling Stockholder to sell a specified number of such securities at a stipulated price per security;

● through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

● a combination of any such methods of sale; or

● any other method permitted pursuant to applicable law.

In addition, a Selling Stockholder that is an entity may elect to make a pro rata in-kind distribution of securities to its members, partners or stockholders pursuant to the registration statement of which this prospectus is a part by delivering a prospectus with a plan of distribution. Such members, partners or stockholders would thereby receive freely tradeable securities pursuant to the distribution through a registration statement. To the extent a distributee is an affiliate of ours (or to the extent otherwise required by law), we may, at our option, file a prospectus supplement in order to permit the distributees to use the prospectus to resell the securities acquired in the distribution.

Broker-dealers engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM-2440.

The Selling Stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. We are requesting that the Selling Stockholders inform us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the securities. We will pay certain fees and expenses incurred by us incident to the registration of the securities.

If a Selling Stockholder is deemed to be an "underwriter" within the meaning of the Securities Act, it will be subject to the Prospectus delivery requirements of the Securities Act, including Rule 172 thereunder. In addition, any securities covered by this Prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this Prospectus. We are requesting that Selling Stockholders confirm that there is no underwriter or coordinating broker acting in connection with their proposed sale of the resale securities.

We intend to keep this Prospectus effective until all of the securities have been sold pursuant to this Prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market making activities with respect to the Fund's common stock for the applicable restricted period, as defined in Regulation M under the Exchange Act, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of our common stock by the Selling Stockholders or any other person. We will make copies of this Prospectus available to the Selling Stockholders and are informing the Selling Stockholders of the need to deliver a copy of this Prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

We have engaged Stifel as our financial advisor to advise and assist us with respect to certain matters relating to our listing. These matters include assisting us in defining our objectives with respect to the filing of the registration statement of which this prospectus forms a part, our preparation of the registration statement of which this prospectus forms a part, our preparation of investor communications and presentations in connection with investor education, and being available to consult with Nasdaq, including on the day that our shares of common stock are initially listed on the Nasdaq Global Market.

In addition, Stifel will determine when our shares of common stock are ready to trade and to approve proceeding with the opening of trading at the Current Reference Price (as defined below). However, the financial advisor has not been engaged to participate in investor meetings or to otherwise facilitate or coordinate price discovery activities or sales of our common stock in consultation with us, except as described herein.

On the day that our shares of common stock are initially listed on the Nasdaq Global Market, Nasdaq will begin accepting, but not executing, pre-opening buy and sell orders and will begin to continuously generate the indicative Current Reference Price on the basis of such accepted orders. During a 10-minute "Display Only" period, market participants may enter quotes and orders in common stock in Nasdaq's systems and such information is disseminated, along with other indicative imbalance information, to Stifel and other market participants (including the other financial advisors) by Nasdaq on its NOII and BookViewer tools. Following the "Display Only" period, a "Pre-Launch" period begins, during which Stifel, in its capacity as our designated financial advisor to perform the functions under Nasdaq Rule 4120(c)(8), must notify Nasdaq that our shares are "ready to trade." Once Stifel has notified Nasdaq that our shares of common stock are ready to trade, Nasdaq will calculate the Current Reference Price (as defined below) for our shares of common stock, in accordance with Nasdaq's rules. If Stifel then approves proceeding at the Current Reference Price, Nasdaq will conduct price validation checks in accordance with Nasdaq rules. As part of conducting its price validation checks, Nasdaq may consult with Stifel and other market participants (including the other financial advisors). Upon completion of such price validation checks the applicable orders that have been entered will then be executed at such price and regular trading of our shares of common stock on the Nasdaq Global Market will commence.

Under Nasdaq's rules, the "Current Reference Price" means: (i) the single price at which the maximum number of orders to buy or sell our shares of common stock can be matched; (ii) if more than one price exists under clause (i), then the price that minimizes the number of our shares of common stock for which orders cannot be matched; (iii) if more than one price exists under clause (ii), then the entered price (i.e. the specified price entered in an order by a customer to buy or sell) at which our shares of common stock will remain unmatched (i.e. will not be bought or sold); and (iv) if more than one price exists under clause (iii), a price determined by Nasdaq after consultation with Stifel. Stifel will exercise any consultation rights only to the extent that it may do so consistent with the anti-manipulation provisions of the federal securities laws, including Regulation M (to the extent applicable), or applicable relief granted thereunder. In determining the Current Reference Price, Nasdaq's algorithms will match orders that have been entered into and accepted by Nasdaq's system. This occurs with respect to a potential Current Reference Price when orders to buy shares of common stock at an entered bid price that is greater than or equal to such potential Current Reference Price are matched with orders to sell a like number of shares of common stock at an entered asking price that is less than or equal to such potential Current Reference Price.

To illustrate, as a hypothetical example of the calculation of the Current Reference Price, if Nasdaq's algorithms matched all accepted orders as described above, and two limit orders remained — a limit order to buy 500 shares of common stock at an entered bid price of $10.01 per share and a limit order to sell 200 shares of common stock at an entered asking price of $10.00 per share — the Current Reference Price would be determined as follows:

● Under clause (i), if the Current Reference Price is $10.00, then the maximum number of additional shares that can be matched is 200. If the Current Reference Price is $10.01, then the maximum number of additional shares that can be matched is also 200, which means that the same maximum number of additional shares would be matched at the price of either $10.00 or $10.01.

● Because more than one price under clause (i) exists, under clause (ii), the Current Reference Price would be the price that minimizes the imbalance between orders to buy or sell (i.e. minimizes the number of shares that would remain unmatched at such price). Selecting either $10.00 or $10.01 as the Current Reference Price would create the same imbalance in the limit orders that cannot be matched, because at either price 300 shares would not be matched.

● Because more than one price under clause (ii) exists, then under clause (iii), the Current Reference Price would be the entered price at which orders for shares of common stock at such entered price will remain unmatched. In such case, choosing $10.01 would cause 300 shares of the 500 share limit order with the entered price of $10.01 to remain unmatched, compared to choosing $10.00, where all 200 shares of the limit order with the entered price of $10.00 would be matched, and no shares at such entered price remain unmatched. Thus, Nasdaq would select $10.01 as the Current Reference Price because orders for shares at such entered price will remain unmatched.

The above example (including the prices) is provided solely by way of illustration.

Stifel, as the designated financial advisor under Nasdaq Rule 4120(c)(8), will determine when our shares of common stock are ready to trade and approve proceeding at the Current Reference Price primarily based on consideration of volume, timing, and price. In particular, Stifel will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to open trading at the Current Reference Price. If Stifel does not approve proceeding at the Current Reference Price (for example, due to the absence of adequate pre-opening buy and sell interest), Stifel will request that Nasdaq delay the open until such a time that sufficient price discovery has been made to ensure a reasonable amount of volume crosses on the opening trade.

Similar to a Nasdaq-listed underwritten initial public offering, in connection with the listing of our shares of common stock, the financial advisors and buyers and sellers (or their brokers) who have subscribed will have access to the Nasdaq Stock Market's Order Imbalance Indicator (sometimes referred to as the Net Order Imbalance Indicator), a widely available, subscription-based data feed, prior to submitting buy or sell orders. Nasdaq's electronic trading platform simulates auctions every second to calculate a Current Reference Price, the number of shares that can be paired off the Current Reference Price, the number of shares that would remain unexecuted at the Current Reference Price and whether a buy-side or sell-side imbalance exists, or whether there is no imbalance, in order to disseminate that information continuously to buyers and sellers via the Order Imbalance Indicator data feed.

However, because this is not an underwritten initial public offering, there will be no "book building" process (i.e., an organized process pursuant to which buy and sell interest is coordinated in advance to some prescribed level – the "book"). Moreover, prior to the opening trade, there will not be a price at which underwriters initially sold shares of our common stock to the public as there would be in an underwritten initial public offering. This lack of an initial public offering price could impact the range of buy and sell orders collected by the Nasdaq Global Market from various broker-dealers. Consequently, the public price of our shares of common stock may be more volatile than in an underwritten initial public offering and could, upon listing on the Nasdaq Global Market, decline significantly and rapidly. See the section titled "Risk Factors—Risks Related to the Listing of Our Shares— Our stock price may be volatile, and could decline significantly and rapidly."

In addition, in order to list on the Nasdaq Global Market, we are also required to have at least three registered and active market makers. We understand that any market-making, if commenced, may be discontinued at any time. Further, our financial advisors may assist interested registered stockholders with the establishment of brokerage accounts.

**Lock-Up Provisions**

In connection with the Fund's direct listing on Nasdaq, each of the Fund's stockholders have entered into lock-up agreements with the Fund pursuant to which the stockholders have agreed, subject to certain customary exceptions, not to sell, transfer, assign, pledge, hypothecate, or otherwise dispose of any shares of the Fund's common stock (collectively, the "Lock-Up Shares") for a period commencing on the date of commencement of trading of the Fund's shares on Nasdaq (the "Listing Date") and ending on the 180th calendar day following the Listing Date (the "Lock-Up Period"). The restrictions describe above are referred to as the "Lock-Up Restrictions".

The Lock-Up Restrictions will be released in four tranches on the following dates after the Listing Date:

Day 0 (Listing Date): 25% of the Lock-Up Shares will be released from the Lock-Up Restrictions;

Day 30: an additional 20% of the Lock-Up Shares (for a cumulative total of 45% of the Lock-Up Shares) will be released from the Lock-Up Restrictions, subject to adjustment as described below;

Day 90: an additional 25% of the Lock-Up Shares (for a cumulative total of 70% of the Lock-Up Shares) will be released from the Lock-Up Restrictions, subject to adjustment as described below; and

Day 180: the remaining 30% of the Lock-Up Shares (for a cumulative total of 100% of the Lock-Up Shares) will be released from the Lock-Up Restrictions, and all Lock-Up Restrictions under this agreement will terminate.

The releases on Day 30 and Day 90 are subject to adjustment pursuant to the following objective, pre-determined, market-based formulas:

If the average of the official Nasdaq closing price per share of the Shares for the 10 consecutive trading days ending five trading days prior to the scheduled Day 30 release or Day 90 release, as applicable, exceeds 400% of the Fund's most recently published net asset value ("NAV") per Share, then the (a) applicable Day 30 release or Day 90 release will be increased by 5% of the Lock-Up Shares and (b) subsequent applicable release dates will be reduced by the same number of Shares.

If the average of the official Nasdaq closing price per share of the Shares for the 10 consecutive trading days ending five trading days prior to the scheduled Day 30 release or Day 90 release, as applicable, is less than or equal to 200% of the Fund's most recently published NAV per share, then the (a) applicable Day 30 release or Day 90 release will be reduced by 5% of the Lock-Up Shares and (b) subsequent applicable release dates will be increased by the same number of shares.

In addition, if at any time between the Listing Date and Day 30, the Fund's market capitalization (calculated as the official Nasdaq closing price multiplied by the number of Shares outstanding) equals or exceeds 400% of NAV for five consecutive trading days, an additional 5% of the Lock-Up Shares will be released from the Lock-Up Restrictions on the fifth trading day after such threshold is met.

All adjustments will be calculated automatically by the Fund based on publicly available market and NAV data, without discretionary modification.

In addition to the lock-up provisions noted above, certain stockholders of the Fund who are employees of the Adviser or its affiliates have entered into additional lock up agreements that prohibit those individuals from (1) selling any shares before Day 90, and (2) selling more than 10% of their shares between Day 91 and Day 180.

The Lock-Up Restrictions shall not apply to (i) transfers of Lock-Up Shares to affiliates of the stockholders and (ii) transfers of Lock-Up Shares for bona fide estate planning purposes; provided that in each case the transferee or pledgee agrees in writing with the Fund to be bound by the terms of this agreement for the remainder of the Lock-Up Period.

**DESCRIPTION OF OUR CAPITAL STOCK**

 ****

***The following description is based on relevant portions of the Maryland General Corporation Law (the "MGCL") and on our Articles of Incorporation (the "Charter") and our Bylaws ("Bylaws"). This summary may not contain all of the information that is important to you, and we refer you to the MGCL and our Charter and Bylaws for a more detailed description of the provisions summarized below.***

**General**

Under the terms of our Charter, our authorized capital stock consists of 950,000,000 shares of common stock, par value $0.001 per share, and no shares of preferred stock. There are no outstanding options or warrants to purchase our stock. Under Maryland law, our stockholders generally are not personally liable for our debts or obligations. Under our Charter, the Board is authorized to classify and reclassify any unissued shares of stock into other classes or series of stock and authorize the issuance of the shares of stock without obtaining stockholder approval. As permitted by the MGCL, our Charter provides that the Board, without any action by our stockholders, may amend the Charter from time to time to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that we have authority to issue.

The following presents our outstanding classes of securities as of February 2, 2026:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Title of Class** | **Amount<br> Authorized** | **Amount<br> Authorized** | **Amount<br> Held by<br> Us or for Our<br> Account** | **Amount<br> Outstanding<br> Exclusive of<br> Amount<br> Held by<br> Us or for Our<br> Account** | **Amount<br> Outstanding<br> Exclusive of<br> Amount<br> Held by<br> Us or for Our<br> Account** |
| Common Stock |  | 950000000 |  |  | 43242931 |

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**Common Stock**

All shares of our common stock will have equal rights as to earnings, assets, voting, and distributions and other distributions and, when they are issued, will be duly authorized, validly issued, fully paid and nonassessable. Distributions may be paid to the holders of our common stock if, as and when authorized by the Board and declared by us out of funds legally available therefor. The shares of our common stock have no preemptive, exchange, conversion or redemption rights and are freely transferable, except where their transfer is restricted by federal and state securities laws or by contract. In the event of our liquidation, dissolution or winding up, each share of our common stock would be entitled to share ratably in all of our assets that are legally available for distribution after we pay all debts and other liabilities and subject to any preferential rights of holders of our preferred stock, if any preferred stock is outstanding at such time. Each share of our common stock is entitled to one vote on all matters submitted to a vote of stockholders, including the election of Directors. Except as provided with respect to any other class or series of stock, the holders of our common stock possess exclusive voting power.

**Preferred Stock**

Our charter authorizes our Board to classify and reclassify any unissued shares of stock into other classes or series of stock, including preferred stock. The cost of any such reclassification would be borne by our existing common stockholders. Prior to issuance of shares of each class or series, our Board is required by Maryland law and by our charter to set the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms or conditions of redemption for each class or series. Thus, our Board could authorize the issuance of shares of preferred stock with terms and conditions which could have the effect of delaying, deferring or preventing a transaction or a change in control that might involve a premium price for holders of our common stock or otherwise be in their best interest. You should note, however, that any issuance of preferred stock must comply with the requirements of the 1940 Act. The 1940 Act requires, among other things, that (1) immediately after issuance and before any dividend or other distribution is made with respect to our common stock and before any purchase of common stock is made, such preferred stock together with all other senior securities must not exceed an amount equal to 50% of our gross assets after deducting the amount of such dividend, distribution or purchase price, as the case may be, and (2) the holders of shares of preferred stock, if any are issued, must be entitled as a class to elect two directors at all times and to elect a majority of the directors if dividends on such preferred stock are in arrears by two full years or more. Certain matters under the 1940 Act require the separate vote of the holders of any issued and outstanding preferred stock. We believe that the availability for issuance of preferred stock will provide us with increased flexibility in structuring future financings and acquisitions. However, we do not currently have any plans to issue preferred stock.

**Limitation on Liability of Directors and Officers; Indemnification and Advance of Expenses**

Maryland law permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the corporation and its stockholders for money damages except for liability resulting from (a) actual receipt of an improper benefit or profit in money, property or services or (b) active and deliberate dishonesty established by a final judgment as being material to the cause of action. Our Charter contains such a provision which eliminates Directors' and officers' liability to the maximum extent permitted by Maryland law, subject to the requirements of the 1940 Act.

Our Charter authorizes us, to the maximum extent permitted by Maryland law and subject to the requirements of the 1940 Act, to indemnify any present or former Director or officer or any individual who, while serving as our Director or officer and at our request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner or trustee, from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her service in any such capacity and to pay or reimburse their reasonable expenses in advance of final disposition of a proceeding. Our Bylaws obligate us, to the maximum extent permitted by Maryland law and subject to the requirements of the 1940 Act, to indemnify any present or former Director or officer or any individual who, while serving as our Director or officer and at our request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner or trustee and who is made, or threatened to be made, a party to the proceeding by reason of his or her service in that capacity from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her service in any such capacity and to pay or reimburse his or her reasonable expenses in advance of final disposition of a proceeding. Our Bylaws also provide that, to the maximum extent permitted by Maryland law, with the approval of the Board and provided that certain conditions described in our Bylaws are met, we may pay certain expenses incurred by any such indemnified person in advance of the final disposition of a proceeding upon receipt of an undertaking by or on behalf of such indemnified person to repay amounts we have so paid if it is ultimately determined that indemnification of such expenses is not authorized under our Bylaws. In accordance with the 1940 Act, we will not indemnify any person for any liability to which such person would be subject by reason of such person's willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office.

Maryland law requires a corporation (unless its charter provides otherwise, which our Charter does not) to indemnify a director or officer who has been successful, on the merits or otherwise, in the defense of any proceeding to which he or she is made, or threatened to be made, a party by reason of his or her service in that capacity. Maryland law permits a corporation to indemnify its present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made, or threatened to be made, a party by reason of their service in those or other capacities unless it is established that (a) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (1) was committed in bad faith or (2) was the result of active and deliberate dishonesty, (b) the director or officer actually received an improper personal benefit in money, property or services or (c) in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. However, under Maryland law, a Maryland corporation may not indemnify for an adverse judgment in a suit by or in the right of the corporation or for a judgment of liability on the basis that a personal benefit was improperly received unless, in either, case a court orders indemnification, and then only for expenses. In addition, Maryland law permits a corporation to advance reasonable expenses to a director or officer in advance of final disposition of a proceeding upon the corporation's receipt of (a) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification by the corporation and (b) a written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed by the corporation if it is ultimately determined that the standard of conduct was not met.

Our insurance policy does not currently provide coverage for claims, liabilities and expenses that may arise out of activities that our present or former Directors or officers have performed for another entity at our request. There is no assurance that such entities will in fact carry such insurance. However, we note that we do not expect to request our present or former Directors or officers to serve another entity as a director, officer, partner or trustee unless we can obtain insurance providing coverage for such persons for any claims, liabilities or expenses that may arise out of their activities while serving in such capacities.

**Certain Provisions of the MGCL and Our Charter and Bylaws; Anti-Takeover Measures**

The MGCL and our Charter and Bylaws contain provisions that could make it more difficult for a potential acquirer to acquire us by means of a tender offer, proxy contest or otherwise. These provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to negotiate first with the Board. These measures may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders. These provisions could have the effect of depriving stockholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control over us. Such attempts could have the effect of increasing our expenses and disrupting our normal operations. We believe that the benefits of these provisions outweigh the potential disadvantages of discouraging any such acquisition proposals because, among other things, the negotiation of such proposals may improve their terms. Our Board has considered these provisions and has determined that the provisions are in the best interests of us and our stockholders generally.

 

*Classified Board of Directors*

The Board is divided into three classes of Directors serving staggered three-year terms. Directors of each class are elected to serve for three-year terms and until their successors are duly elected and qualify and each year one class of Directors is elected by the stockholders. A classified board may render a change in control of us or removal of our incumbent management more difficult. We believe, however, that the longer time required to elect a majority of a classified Board will help to ensure the continuity and stability of our management and policies.

 

*Election of Directors*

Our Bylaws provide that, subject to the special rights of the holders of any class or series of preferred stock to elect directors, each Director is elected by a plurality of the votes cast with respect to such Director's election. There is no cumulative voting in the election of Directors. Pursuant to our Charter, the Board may amend the Bylaws to alter the vote required to elect Directors.

 

*Number of Directors; Vacancies; Removal*

Our Charter provides that the number of Directors will be set by the Board in accordance with our Bylaws. Our Bylaws provide that a majority of our entire Board may at any time increase or decrease the number of Directors, provided however, that the number of Directors may never be less than one nor more than nine. Our Bylaws provide that, except as may be provided by the Board in setting the terms of any class or series of preferred stock, any and all vacancies on the Board may be filled only by the affirmative vote of a majority of the remaining Directors in office, even if the remaining Directors do not constitute a quorum, and any Director elected to fill a vacancy will serve for the remainder of the full term of the class in which the vacancy occurred and until a successor is elected and qualifies, subject to any applicable requirements of the 1940 Act.

Our Charter provides that a Director may be removed only for cause, as defined in our Charter, and then only by the affirmative vote of at least two-thirds of the votes entitled to be cast in the election of Directors.

 

*Action by Stockholders*

Under the MGCL, stockholder action can be taken only at an annual or special meeting of stockholders or by unanimous written consent in lieu of a meeting (unless the charter provides for stockholder action by less than unanimous written consent, which our Charter does not). These provisions, combined with the requirements of our Bylaws regarding the calling of a stockholder-requested special meeting of stockholders discussed below, may have the effect of delaying consideration of a stockholder proposal indefinitely.

The presence in person or by proxy of the holders of one-third of the votes entitled to be cast (without regard to class) shall constitute a quorum at any meeting of stockholders, except with respect to any such matter that, under applicable statutes or regulatory requirements or the Charter, requires approval by a separate vote of one or more classes or series of stock, in which case the presence in person or by proxy of the holders of shares entitled to cast a majority of the votes entitled to be cast by such classes or series on such a matter shall constitute a quorum.

 

*Advance Notice Provisions for Stockholder Nominations and Stockholder Proposals*

Our Bylaws provide that with respect to an annual meeting of stockholders, nominations of persons for election to the Board and the proposal of business to be considered by stockholders may be made only (1) pursuant to our notice of the meeting, (2) by the Board or (3) by a stockholder who is entitled to vote at the meeting, who has complied with the advance notice procedures of our Bylaws and who is a stockholder of record at the time of the annual meeting and at the time of giving notice pursuant to the advance notice procedures of our Bylaws. With respect to special meetings of stockholders, only the business specified in our notice of the meeting may be brought before the meeting. Nominations of persons for election to the Board at a special meeting may be made only (1) pursuant to our notice of the meeting, (2) by the Board or (3) provided that the Board has determined that Directors will be elected at the meeting, by a stockholder who is entitled to vote at the meeting, who has complied with the advance notice provisions of the Bylaws and who is a stockholder of record at the time of the special meeting and at the time of giving notice pursuant to the advance notice procedures of our Bylaws.

The purpose of requiring stockholders to give us advance notice of nominations and other business is to afford the Board a meaningful opportunity to consider the qualifications of the proposed nominees and the advisability of any other proposed business and, to the extent deemed necessary or desirable by the Board, to inform stockholders and make recommendations about such qualifications or business, as well as to provide a more orderly procedure for conducting meetings of stockholders. Although our Bylaws do not give the Board any power to disapprove stockholder nominations for the election of Directors or proposals recommending certain action, they may have the effect of precluding a contest for the election of Directors or the consideration of stockholder proposals if proper procedures are not followed and of discouraging or deterring a third-party from conducting a solicitation of proxies to elect its own slate of Directors or to approve its own proposal without regard to whether consideration of such nominees or proposals might be harmful or beneficial to us and our stockholders.

 

*Calling of Special Meetings of Stockholders*

Our Bylaws provide that special meetings of stockholders may be called by the Board and certain of our officers. Additionally, our Bylaws provide that, subject to the satisfaction of certain procedural and informational requirements by the stockholders requesting the meeting, a special meeting of stockholders will be called by the secretary of the corporation upon the written request of stockholders entitled to cast not less than a majority of all the votes entitled to be cast at such meeting.

 

*Approval of Extraordinary Corporate Action; Amendment of Charter and Bylaws*

Under Maryland law, a Maryland corporation generally cannot dissolve, amend its charter, merge, sell all or substantially all of its assets, engage in a share exchange or engage in similar transactions outside the ordinary course of business, unless approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter. However, a Maryland corporation may provide in its charter for approval of these matters by a lesser percentage, but not less than a majority of all of the votes entitled to be cast on the matter. Our Charter generally provides for approval of charter amendments and extraordinary transactions by the stockholders entitled to cast at least a majority of the votes entitled to be cast on the matter. Our Charter also provides that certain charter amendments, any proposal for our conversion, whether by charter amendment, merger or otherwise, from a closed-end company to an open-end company and any proposal for our liquidation or dissolution requires the approval of the stockholders entitled to cast at least 80% of the votes entitled to be cast on such matter. However, if such amendment or proposal is approved by a majority or more of our continuing directors (in addition to approval by the Board), such amendment or proposal may be approved by a majority of the votes entitled to be cast on such a matter. The "continuing directors" are defined in our Charter as (1) our current Directors, (2) those Directors whose nomination for election by the stockholders or whose election by the Directors to fill vacancies is approved by a majority of our current Directors then on the Board or (3) any successor Directors whose nomination for election by the stockholders or whose election by the Directors to fill vacancies is approved by a majority of continuing directors or the successor continuing directors then in office.

Our Charter and Bylaws provide that the Board will have the exclusive power to adopt, alter, amend or repeal any provision of our Bylaws and to make new Bylaws.

 

*No Appraisal Rights*

Except with respect to appraisal rights arising in connection with the Maryland Control Share Acquisition Act discussed below, as permitted by the MGCL, our Charter provides that stockholders will not be entitled to exercise appraisal rights unless a majority of the Board determines such rights apply.

 

*Control Share Acquisitions*

The MGCL allows closed-end funds to opt into the Maryland's control share statute (the "Control Share Acquisition Act"), which allows a corporation to limit the voting rights of shares acquired by certain large stockholders. We have not opted into, and do not expect to opt into, the Control Share Acquisition Act unless the Board determines (which it presently has not) that doing so is not inconsistent with the 1940 Act. However, the Board may adopt a resolution at any time choosing to opt into and make us subject to, the Control Share Acquisition Act. Important provisions of the Control Share Acquisition Act, which would apply if the Fund opted to be subject to the act, are described below.

The Control Share Acquisition Act provides that control shares of a Maryland corporation acquired in a control share acquisition have no voting rights except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter. Shares owned by the acquiror, by officers or by directors who are employees of the corporation are excluded from shares entitled to vote on the matter. Control shares are voting shares of stock which, if aggregated with all other shares of stock owned by the acquiror or in respect of which the acquiror is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquiror to exercise voting power in electing directors within one of the following ranges of voting power:

● one-tenth or more but less than one-third;

● one-third or more but less than a majority; or

● a majority or more of all voting power.

The requisite stockholder approval must be obtained each time an acquiror crosses one of the thresholds of voting power set forth above. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A control share acquisition means the acquisition of control shares, subject to certain exceptions.

A person who has made or proposes to make a control share acquisition may compel the board of directors of the corporation to call a special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the shares. The right to compel the calling of a special meeting is subject to the satisfaction of certain conditions, including an undertaking to pay the expenses of the meeting. If no request for a meeting is made, the corporation may itself present the question at any stockholders meeting.

If voting rights are not approved at the meeting or if the acquiring person does not deliver an acquiring person statement as required by the statute, then the corporation may redeem for fair value any or all of the control shares, except those for which voting rights have previously been approved. The right of the corporation to redeem control shares is subject to certain conditions and limitations. Fair value is determined, without regard to the absence of voting rights for the control shares, as of the date of the last control share acquisition by the acquirer or of any meeting of stockholders at which the voting rights of the shares are considered and not approved. If voting rights for control shares are approved at a stockholders meeting and the acquirer becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of appraisal rights may not be less than the highest price per share paid by the acquirer in the control share acquisition.

Potentially inhibiting a closed-end investment company's ability to utilize the Control Share Acquisition Act is Section 18(i) of the 1940 Act which provides that "every share of stock . . . issued by a registered management company . . . shall be a voting stock and have equal voting rights with every other outstanding voting stock," thereby preventing the Fund from issuing a class of shares with voting rights that vary within that class. There are currently different views, however, on whether or not the Control Share Acquisition Act conflicts with Section 18(i) of the 1940 Act. One view is that implementation of the Control Share Acquisition Act would conflict with the 1940 Act because it would deprive certain shares of their voting rights. Another view is that implementation of the Control Share Acquisition Act would not conflict with the 1940 Act because it would limit the voting rights of shareholders who choose to acquire shares of stock that put them within the specified percentages of ownership rather than limiting the voting rights of the shares themselves. The Control Share Acquisition Act does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation.

A November 15, 2010 letter from the staff of the SEC's Division of Investment Management took the position that a closed-end fund, by opting in to the Control Share Acquisition Act, would be acting in a manner inconsistent with Section 18(i) of the 1940 Act. However, on May 27, 2020, the staff of the SEC's Division of Investment Management published an updated statement (the "2020 Control Share Statute Relief") withdrawing the November 15, 2010 letter and replacing it with a new no-action position allowing a closed-end fund under Section 18(i) to opt-in to the Control Share Acquisition Act, provided that the decision to do so was taken with reasonable care in light of (1) the board's fiduciary duties, (2) applicable federal and state law, and (3) the particular facts and circumstances surrounding the action. The 2020 Control Share Statute Relief reflects only the enforcement position of the Staff and is not binding on the SEC or any court. Recent federal court decisions, however, have found that an opt into the Maryland Control Share Acquisition Act violates the 1940 Act.

 

*Business Combinations*

Under Maryland law, "business combinations" between a corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder (the "Business Combination Act"). These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:

● any person who beneficially owns 10% or more of the voting power of the corporation's outstanding voting stock; or

● an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation.

A person is not an interested stockholder under this statute if the Board approved in advance the transaction by which the stockholder otherwise would have become an interested stockholder. However, in approving a transaction, the Board may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the Board.

After the five-year prohibition, any business combination between the corporation and an interested stockholder generally must be recommended by the Board of the corporation and approved by the affirmative vote of at least:

● 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and

● two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.

These super-majority vote requirements do not apply if the corporation's common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares.

The statute permits various exemptions from its provisions, including business combinations that are exempted by the Board before the time that the interested stockholder becomes an interested stockholder. The Board has adopted a resolution that any business combination between us and any other person is exempted from the provisions of the Business Combination Act, provided that the business combination is first approved by the Board, including a majority of the Directors who are not interested persons as defined in the 1940 Act. This resolution may be altered or repealed in whole or in part at any time. However, the Board will adopt resolutions so as to make us subject to the provisions of the Business Combination Act only if the Board determines that it would be in our best interests and if the SEC staff does not object to our determination that our being subject to the Business Combination Act does not conflict with the 1940 Act. If this resolution is repealed, or the Board does not otherwise approve a business combination, the statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer.

 

 

*Conflict with the 1940 Act*

If and to the extent that any provision of the MGCL, including the Control Share Acquisition Act (if we amend our Bylaws to be subject to such Act) and the Business Combination Act, or any provision of our Charter or Bylaws conflicts with any provision of the 1940 Act, the applicable provision of the 1940 Act will control.

 

*Exclusive Forum*

Our Charter requires that, unless we consent in writing to the selection of an alternative forum, the Circuit Court for Baltimore City (or, if that Court does not have jurisdiction, the United States District Court for the District of Maryland, Northern Division) shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Fund (ii) any action asserting a claim of breach of any standard of conduct or legal duty owed by any of the Fund's Director, officer or other agent to the Fund or to its stockholders, (iii) any action asserting a claim arising pursuant to any provision of the MGCL or the Charter or the Bylaws (as either may be amended from time to time), or (iv) any action asserting a claim governed by the internal affairs doctrine. This exclusive forum selection provision in our Charter does not apply to claims arising under the federal securities laws, including the Securities Act and the Exchange Act.

There is uncertainty as to whether a court would enforce such a provision, and investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. In addition, this provision may increase costs for stockholders in bringing a claim against us or our Directors, officers or other agents. Any investor purchasing or otherwise acquiring our shares is deemed to have notice of and consented to the foregoing provision.

The exclusive forum selection provision in our Charter may limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our Directors, officers or other agents, which may discourage lawsuits against us and such persons. It is also possible that, notwithstanding such exclusive forum selection provision, a court could rule that such provision is inapplicable or unenforceable.

**REGULATION AS A CLOSED-END FUND**

We are a non-diversified, closed-end management investment company that has registered as an investment company under the 1940 Act. As a registered closed-end management investment company, we are subject to regulation under the 1940 Act. Under the 1940 Act, unless authorized by vote of a majority of the outstanding voting securities, we may not:

● change our classification to an open-end management investment company;

● except in each case in accordance with our policies with respect thereto set forth in the SAI and the Prospectus, borrow funds, issue senior securities, underwrite securities issued by other persons, purchase or sell real estate or commodities or make loans to other persons;

● deviate from any policy in respect of concentration of investments in any particular industry or group of industries as recited in the SAI and the Prospectus, deviate from any investment policy which is changeable only if authorized by stockholder vote under the 1940 Act, or deviate from any fundamental policy recited in its registration statement in accordance with the requirements of the 1940 Act; or

● change the nature of our business so as to cease to be an investment company.

A majority of the outstanding voting securities of a company is defined under the 1940 Act as the lesser of: (a) 67% or more of such company's voting securities present at a meeting if more than 50% of the outstanding voting securities of such company are present or represented by proxy, or (b) more than 50% of the outstanding voting securities of such company.

A majority of our Directors must be persons who are not interested persons, as that term is defined in the 1940 Act. Additionally, we are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect the closed-end management investment company. Furthermore, as a registered closed-end management investment company, we are prohibited from protecting any Director or officer against any liability to us or our stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person's office. We are also prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of the SEC.

As a registered closed-end management investment company, we are generally required to meet an asset coverage ratio with respect to our outstanding senior securities representing indebtedness, defined under the 1940 Act as the ratio of our gross assets (less all liabilities and indebtedness not represented by senior securities) to our outstanding senior securities representing indebtedness, of at least 300% after each issuance of senior securities representing indebtedness. In addition, we are generally required to meet an asset coverage ratio with respect to our outstanding preferred shares, as defined under the 1940 Act as the ratio of our gross assets (less all liabilities and indebtedness not represented by senior securities) to our outstanding senior securities representing indebtedness, plus the aggregate involuntary liquidation preference of our outstanding preferred shares, of at least 200% immediately after each issuance of such preferred shares. We are also prohibited from issuing or selling any senior security if, immediately after such issuance, we would have outstanding more than (i) one class of senior security representing indebtedness, exclusive of any promissory notes or other evidences of indebtedness issued in consideration of any loan, extension, or renewal thereof, made by a bank or other person and privately arranged, and not intended to be publicly distributed, or (ii) one class of senior security which is equity, except that in each case any such class of indebtedness or equity may be issued in one or more series.

We are generally not able to issue and sell our shares at a price below the then-current NAV per share. We may, however, sell our shares at a price below the then-current NAV of our shares if the Board determines that such sale is in our best interests and the best interests of our stockholders, and our stockholders approve such sale. In addition, we may generally issue new shares at a price below NAV in rights offerings to existing stockholders, in payment of distributions and in certain other limited circumstances.

As a registered closed-end management investment company, we are subject to certain risks and uncertainties. See "Risk Factors — Risks Related to Our Business and Structure."

**Senior Securities**

We may borrow funds to make investments. Although we do not expect to do so, we may also borrow funds, consistent with the limitations of the 1940 Act, in order to make the distributions required to maintain our status as a RIC under Subchapter M of the Code. We are permitted, under specified conditions, to issue one class of indebtedness and one class of equity senior to the shares offered hereby if our asset coverage with respect thereto, as defined in the 1940 Act, is at least equal to 300% immediately after such issuance of senior securities representing indebtedness, and 200% immediately after each issuance of senior securities which are shares of beneficial interest. We are also permitted to issue promissory notes or other evidences of indebtedness in consideration of a loan, extension, or renewal thereof, made by a bank or other person and privately arranged, and not intended to be publicly distributed, provided that our asset coverage with respect to our outstanding senior securities representing indebtedness is at least equal to 300% immediately thereafter. In addition, while any senior securities remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our gross assets for temporary or emergency purposes without regard to asset coverage.

**Compliance Policies and Procedures**

We and our Adviser have adopted and implemented written policies and procedures reasonably designed to prevent violation of the federal securities laws and are required to review these compliance policies and procedures annually for their adequacy and the effectiveness of their implementation. Our chief compliance officer is responsible for administering these policies and procedures.

**Other**

We will be periodically examined by the SEC for compliance with the 1940 Act.

We are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement. We are prohibited from protecting any Director or officer against any liability to us or our stockholders arising from willful misconduct, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person's office.

**Sarbanes-Oxley Act of 2002**

The Sarbanes-Oxley Act of 2002 imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. Many of these requirements affect us. For example:

● pursuant to Rule 30a-2 of the 1940 Act, our chief executive officer and chief financial officer must certify the accuracy of the financial statements contained in our periodic reports;

● pursuant to Item 16 of Form N-CSR, our periodic reports must disclose our conclusions about the effectiveness of our disclosure controls and procedures; and

● pursuant to Item 16 of Form N-CSR, our periodic reports must disclose whether there were significant changes in our internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

The Sarbanes-Oxley Act requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley Act and the regulations promulgated thereunder. We will continue to monitor our compliance with all regulations that are adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure that we are in compliance therewith.

**CUSTODIAN, TRANSFER AND DIVIDEND PAYING AGENT AND REGISTRAR**

Our securities, including those held by any of our wholly-owned subsidiaries, are held by U.S. Bank National Association pursuant to a custodian agreement. The principal business address of U.S. Bank National Association is 5065 Wooster Road, Cincinnati, Ohio 45226. Continental Stock Transfer & Trust Company serves as our transfer agent, distribution paying agent and registrar. The principal business address of Continental Stock Transfer and Trust Company is 1 State Street, Floor 30, New York, New York 10004-1561.

**LEGAL MATTERS**

Eversheds Sutherland (US) LLP, located at 700 Sixth Street, N.W., Suite 700, Washington, DC 20001, serves as our legal counsel. Certain legal matters regarding the validity of the shares offered hereby will be passed upon for us by Miles & Stockbridge, located at 100 Light Street, Baltimore, MD 21202.

**INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

KPMG LLP, whose principal business address is located at Aon Center, Suite 5500, 200 E. Randolph Street, Chicago, IL 60601-6436, serves as the Fund's independent registered public accounting firm, providing audit services and review of certain documents to be filed with the SEC.

**AVAILABLE INFORMATION**

We have filed with the SEC a registration statement on Form N-2, together with all amendments and related exhibits, under the Securities Act, with respect to the shares of our common stock offered by this Prospectus. The registration statement contains additional information about us and the shares of our common stock being offered by this Prospectus.

We file with or submit to the SEC annual, semi-annual, and monthly reports, proxy statements and other information meeting the informational requirements of the Exchange Act and the 1940 Act. The SEC maintains an internet site that contains reports, proxy and information statements and other information filed electronically by us with the SEC which are available on the SEC's website at http://www.sec.gov. This information will also be available free of charge by contacting us by telephone at (707) 653-6892, or on our website at www.pwrl.com.

**NOTICE OF PRIVACY POLICY AND PRACTICES**

**PRIVACY NOTICE**

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| | |
|:---|:---|
| **FACTS** | **WHAT DOES POWERLAW CORP. (THE "FUND") DO WITH YOUR PERSONAL INFORMATION?** |
| **WHY?** | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| **WHAT?** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The types of personal information we collect and share depend on the product or service you have with us. This information can include:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Social security number<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Income<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Assets<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Risk tolerance<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Wire transfer instructions<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Transaction history<br>When you are no longer our customer, we continue to share information about you as described in this notice. |

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| | |
|:---|:---|
| &nbsp;&nbsp;**HOW?** | &nbsp;&nbsp;All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons the Fund chooses to share; and whether you can limit this sharing. |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Reasons we can share your personal information** | &nbsp;&nbsp;**Does the Fund Share?** | &nbsp;&nbsp;**Can you limit this sharing?** |
| &nbsp;&nbsp;**For our everyday business purposes** - such as to process your transactions, maintain your accounts(s) or respond to court orders and legal investigations. | &nbsp;&nbsp;Yes | &nbsp;&nbsp;No |
| &nbsp;&nbsp;**For our marketing purposes** - to offer our products and services to you | &nbsp;&nbsp;No | &nbsp;&nbsp;We don't share |
| &nbsp;&nbsp;**For joint marketing with other financial companies** | &nbsp;&nbsp;No | &nbsp;&nbsp;We don't share |
| &nbsp;&nbsp;**For our affiliates' everyday business purposes** - information about your transactions and experiences | &nbsp;&nbsp;Yes | &nbsp;&nbsp;No |
| &nbsp;&nbsp;**For our affiliates' everyday business purposes** – information about your creditworthiness | &nbsp;&nbsp;No | &nbsp;&nbsp;We don't share |
| &nbsp;&nbsp;**For our affiliates to market to you** | &nbsp;&nbsp;No | &nbsp;&nbsp;We don't share |
| &nbsp;&nbsp;**For non-affiliates to market to you** | &nbsp;&nbsp;No | &nbsp;&nbsp;We don't share |
| &nbsp;&nbsp;**Questions?** | &nbsp;&nbsp;Call: (707) 653-6892 or go to www.pwrl.com | &nbsp;&nbsp;Call: (707) 653-6892 or go to www.pwrl.com |

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| | |
|:---|:---|
| &nbsp;&nbsp;**Page 2** |  |
| &nbsp;&nbsp;**Who we are** | &nbsp;&nbsp;**Who we are** |
| &nbsp;&nbsp;**Who is providing this notice?** | &nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Powerlaw Corp. |
| &nbsp;&nbsp;**What we do** | &nbsp;&nbsp;**What we do** |
| &nbsp;&nbsp;**How does the Fund protect my personal information?** | &nbsp;&nbsp;To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. |
| &nbsp;&nbsp;**How does the Fund collect my personal information?** | &nbsp;&nbsp; We collect your personal information, for example, when you<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp; Enter into an investment advisory contract<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp; Seek financial advice<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp; Make deposits or withdrawals from your account<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp; Tell us about your investment or retirement portfolio<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp; Give us your employment history<br>We may also collect your personal information from others, such as credit bureaus, affiliates or other companies. |

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| | |
|:---|:---|
| &nbsp;&nbsp;**Why can't I limit all sharing?** | &nbsp;&nbsp; Federal law gives you the right to limit only<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp; sharing for affiliates' everyday business purposes—information about your creditworthiness<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp; affiliates from using your information to market to you<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp; sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. |
| &nbsp;&nbsp;**What happens when I limit sharing for an account I hold jointly with someone else?** | &nbsp;&nbsp;Your choices will apply to everyone on your account - unless you tell us otherwise. |
| &nbsp;&nbsp;**Definitions** | &nbsp;&nbsp;**Definitions** |
| &nbsp;&nbsp;**Affiliates** | &nbsp;&nbsp; Companies related by common ownership or control. They can be financial and nonfinancial companies.<br>●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Our affiliates include companies with a common corporate identity.* |
| &nbsp;&nbsp;**Non-affiliates** | &nbsp;&nbsp; Companies not related by common ownership or control. They can be financial and nonfinancial companies.<br>●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *The Fund does not share with non-affiliates so they can market to you* |
| &nbsp;&nbsp;**Joint Marketing** | &nbsp;&nbsp; A formal agreement between nonaffiliated financial companies that together market financial products or services to you.<br>●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *The Fund does not jointly market.* |

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**Powerlaw Corp.**

**43,242,931 Shares of Common Stock**

**_________, 2026**

**PRELIMINARY PROSPECTUS**

**All dealers that buy, sell or trade the Fund's shares, whether or not participating in this offering, may be required to deliver a Prospectus when acting on behalf of the Fund.**

**You should rely only on the information contained in or incorporated by reference into this Prospectus. The Fund has not authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. The Fund is not making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted.**

**The information in this preliminary statement of additional information is not complete and may be changed. We may not sell these securities until the registration statement filed with the U.S. Securities and Exchange Commission is effective. This preliminary statement of additional information is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

**SUBJECT TO COMPLETION, DATED FEBRUARY 9, 2026**

**Powerlaw Corp.**

**43,242,931 Shares of Common Stock**

**STATEMENT OF ADDITIONAL INFORMATION**

**_____, 2026**

Powerlaw Corp. (the "Fund") is a non-diversified, closed-end management investment company with a limited operating history. This Statement of Additional Information ("SAI") relating to shares of common stock does not constitute a prospectus, but should be read in conjunction with the prospectus relating thereto dated _______, 2026. This SAI, which is not a prospectus, does not include all information that a prospective investor should consider before purchasing common shares, and investors should obtain and read the prospectus prior to purchasing such shares. A copy of the prospectus may be obtained without charge by calling (707) 653-6892. You may also obtain a copy of the prospectus on the Securities and Exchange Commission's (the "SEC") website (http://www.sec.gov). Capitalized terms used but not defined in this SAI have the meanings ascribed to them in the prospectus.

References to the Investment Company Act of 1940, as amended (the "1940 Act"), or other applicable law, include any rules promulgated thereunder and any guidance, interpretations or modifications by the SEC, SEC staffer or other authority with appropriate jurisdiction, including court interpretations, and exemptive, no-action or other relief or permission from the SEC, SEC staff or other authority.

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| **Page** |  |
| [INVESTMENT OBJECTIVE AND POLICIES](#KJ_023) | S-4 |
| [MANAGEMENT OF THE COMPANY](#KJ_024) | S-5 |
| [INVESTMENT ADVISORY AND OTHER SERVICES](#KJ_025) | S-11 |
| [CONFLICTS OF INTEREST](#KJ_026) | S-14 |
| [PROXY VOTING POLICIES AND PROCEDURES](#KJ_027) | S-15 |
| [CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS](#KJ_028) | S-16 |
| [PORTFOLIO TRANSACTIONS AND BROKERAGE](#KJ_029) | S-16 |
| [LEGAL MATTERS](#KJ_030) | S-17 |
| [ADMINISTRATOR, CUSTODIAN AND TRANSFER AGENT](#KJ_031) | S-17 |
| [INDEPENDENT AUDITORS](#KJ_032) | S-17 |
| [FINANCIAL STATEMENTS](#KJ_033) | S-18 |

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**INVESTMENT OBJECTIVE AND POLICIES**

**Investment Restrictions**

Our investment objective and our investment policies and strategies described in our prospectus, except for the seven investment restrictions designated as fundamental policies under this caption, are not fundamental and may be changed by the Board without stockholder approval.

As referred to above, the following seven investment restrictions are designated as fundamental policies and as such cannot be changed without the approval of the holders of a majority of our outstanding voting securities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. We may not borrow money, except as permitted by (i) the 1940 Act, or interpretations or modifications by the SEC, SEC staff or other authority with appropriate jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority with appropriate jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. We may not engage in the business of underwriting securities issued by others, except to the extent that we may be deemed to be an underwriter in connection with the disposition of portfolio securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. We may not purchase or sell physical commodities or contracts for the purchase or sale of physical commodities. Physical commodities do not include futures contracts with respect to securities, securities indices, currency or other financial instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. We may not purchase or sell real estate, which term does not include securities of companies which deal in real estate or mortgages or investments secured by real estate or interests therein, except that we reserve freedom of action to hold and to sell real estate acquired as a result of our ownership of securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. We may not make loans, except to the extent permitted by (i) the 1940 Act, or interpretations or modifications by the SEC, SEC staff or other authority with appropriate jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority with appropriate jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. We may not issue senior securities, except to the extent permitted by (i) the 1940 Act, or interpretations or modifications by the SEC, the SEC staff or other authority with appropriate jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority with appropriate jurisdiction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. We may not invest in any security if as a result of such investment, 25% or more of the value of our total assets, taken at market value at the time of each investment, are in the securities of issuers in any particular industry or group of industries, except that we will invest more than 25% of the value of our total assets in companies operating in one or more industries within the technology group of industries. For purposes of this limitation, securities of the U.S. government (including its agencies and instrumentalities), repurchase agreements collateralized by U.S. government securities and tax-exempt securities of state or municipal governments and their political subdivisions are not considered to be issued by members of any industry.

The latter part of certain of our fundamental investment restrictions (*i.e.,* the references to "except to the extent permitted by (i) the 1940 Act, or interpretations or modifications by the SEC, the SEC staff or other authority with appropriate jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority with appropriate jurisdiction") provides us with flexibility to change our limitations in connection with changes in applicable law, rules, regulations or exemptive relief. The language used in these restrictions provides the necessary flexibility to allow our Board to respond efficiently to these kinds of developments without the delay and expense of a stockholder meeting.

Whenever an investment policy or investment restriction states a maximum percentage of assets that may be invested in any security or other asset or describes a policy regarding quality standards, such percentage limitation or standard shall be determined immediately after and as a result of our acquisition of such security or asset. Accordingly, any later increase or decrease resulting from a change in values, assets or other circumstances or any subsequent rating change made by a rating agency (or as determined by the Adviser if the security is not rated by a rating agency) will not compel us to dispose of such security or other asset. Notwithstanding the foregoing, we must always be in compliance with the borrowing policies set forth above.

**MANAGEMENT OF THE COMPANY**

**Our Board of Directors and Officers**

***Board Composition***

Our Board consists of five members. The Board is divided into three classes, with the members of each class serving staggered, three-year terms; however, the initial members of the three classes have initial terms of one, two and three years, respectively. The term of our Class I Directors will expire at the 2026 annual meeting of stockholders; the term of any Class II Director will expire at the 2027 annual meeting of stockholders; and the terms of our Class III Directors will expire at the 2028 annual meeting of stockholders.

Lars Leckie serves as a Class I Director (with a term expiring in 2026); Michael Dinsdale and Nicholas Earl serve as Class II Directors (with terms expiring 2027); Ben Black and Vivian Chow serve as Class III Directors (with terms expiring in 2028).

A majority of the Board consists of Directors who are not "interested persons" of the Fund, of the Adviser, or of any of their respective affiliates, as defined in Section 2(a)(19) of the 1940 Act ("Independent Directors").

Consistent with these considerations, after review of all relevant transactions and relationships between each Director, or any of his or her family members, and the Fund, the Adviser, or of any of their respective affiliates, the Board has determined that Vivian Chow, Nicholas Earl, and Lars Leckie each qualify as Independent Directors. Each Director who serves on the Audit Committee is an "independent director" for purposes of Rule 10A-3 under the Exchange Act.

***Directors and Officers***

The following tables provide information regarding each of our Directors and Officers.

***Independent Directors***

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name, Address\*,<br> Year of Birth** | **Position(s)<br> with the<br> Fund, Term<br> and Length of<br> Time Served** | **Principal Occupation(s) During Past 5 Years** | **Number of<br> Portfolios in<br> Fund<br> Complex<br> Overseen by<br> Director** | **Other Directorships<br> Held by Director<br> During Past 5 Years** |
| Nicholas Earl<br> 1966 | Director, Term<br> Expires 2027,<br> Since 2025 | CEO & President, Glu Mobile LLC (2016-2021), Advisor, AviaGames, Inc. (Avia) (since 2022) | 1 | Board Member, SciPlay Corp. (2022-2023), Board Member, Glu Mobile LLC (2016-2021) |
| Vivian Chow<br> 1966 | Director (Chair), Term Expires 2028, Since 2025 | Board Member, LiveRamp Holdings, Inc. (since 2020); SVP, Strategic Execution & Operations, DocuSign, Inc. (2021 – 2022); Chief Accounting Officer, DocuSign, Inc. (2013-2021) | 1 | Board Member, Plum Acquisition Corp. I (2023-2024); Board Member, LiveRamp Holdings, Inc. (since 2020) |
| Lars Leckie<br> 1973 | Director, Term<br> Expires 2026,<br> Since 2025 | Managing Director, Aspenwood Ventures (since 2021); Managing Director, Hummer Winblad Venture Partners, LP (since 2005) | 1 | Board Member, DefectDojo, Inc. (since 2024); Board Member, Ethyca, Inc. (since 2024); Board Member, Amberdata, Inc. (since 2017); Board Member, Aria Systems, Inc. (since 2007); Board Member, TidalScale, Inc. (2013-2023); Board Member, NeuVector, Inc. (2017-2021); Board Member, InsideSales.com, Inc. (2011-2021) |

---

\*The address of each Independent Director is c/o Powerlaw Corp., 631 Folsom Street, Ste A & B, San Francisco, California, 94107-3850 unless otherwise noted.

***Interested Directors***

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name, Address\*,<br> Year of Birth** | &nbsp;&nbsp;**Position(s)<br> with the<br> Fund, Term<br> and Length of<br> Time Served** | &nbsp;&nbsp;**Principal Occupation(s) During Past 5 Years** | &nbsp;&nbsp;**Number of<br> Portfolios in<br> Fund<br> Complex<br> Overseen by<br> Director** | &nbsp;&nbsp;**Other Directorships<br> Held by Director<br> During Past 5 Years** |
| Benjamin Black\*\*<br> 1969 | &nbsp;&nbsp;Director, Term Expires 2028, Since 2025; Chief Investment Officer, Indefinite, Since 2025 | &nbsp;&nbsp;Co-Founder and Managing Director, Akkadian (since 2011) | &nbsp;&nbsp;1 |  |
| Michael Dinsdale\*\*<br> 1972 | &nbsp;&nbsp;Director, Term Expires 2027, Since 2025; Chief Executive Officer, Indefinite, Since 2025 | &nbsp;&nbsp;Managing Director, Akkadian (since 2021); Chief Financial Officer, Gusto, Inc. (2017 – 2020); Chief Financial Officer, DocuSign, Inc. (2010-2016). | &nbsp;&nbsp;1 | &nbsp;&nbsp;Board Member, Plum Acquisition Corp. I<br> (2021-2024) |

---

\*The address of each Interested Director is c/o Powerlaw Corp., 631 Folsom Street, Ste A & B, San Francisco, California, 94107-3850 unless otherwise noted.

\*\*Mr. Black and Mr. Dinsdale are interested directors because of their positions with (i) Akkadian, an affiliate of the Adviser, and (ii) the Adviser.

***Officers who are not Directors***

---

| | | |
|:---|:---|:---|
| **Name, Address\*,<br> Year of Birth** | **Position(s) with the<br> Fund, Term and Length<br> of Time Served** | **Principal Occupation(s) During Past 5 Years** |
| Peter Smith<br> 1971 | Chief Compliance Officer and President, Indefinite, Since 2025 | Co-Founder and Managing Director, Akkadian (since 2011) |
| Angela Stanley<br> 1978 | Chief Operating Officer and Secretary, Indefinite, Since 2025 | Chief Operating Officer and Partner, Akkadian (since 2024); Head of Investor Relations, Delta-V Capital, LLC (2023-2024); Co-Founder and Managing Partner, Harpeth Capital, LLC (2012-2022) |
| Tracy Hogan <br> 1970 | Chief Financial Officer and Treasurer, Indefinite, Since 2025 | Chief Financial Officer and Partner, Institutional Venture Partners (IVP) (2015-2024) |

---

\*The address of each such officer is c/o Powerlaw Corp., 631 Folsom Street, Ste A & B, San Francisco, California, 94107-3850, unless otherwise noted.

***Biographical Information***

Brief biographies of our Directors are set forth below. Also included below following each biography is a brief discussion of the specific experience, qualifications, attributes or skills that led our Board to conclude that the applicable Director should serve on our Board at this time.

**Benjamin Black**

Benjamin Black is the Co-Founder and Managing Director of Akkadian and a 20-year private equity veteran.

In addition, Mr. Black is the Co-Founder of the RAISE Global Summit, which has grown into a premier launchpad for emerging venture capital funds.

Prior to Akkadian, Mr. Black co-founded New Cycle Capital to bring socially responsible investing to sectors like clean energy and social finance. He started his private equity career on the investment teams at Maveron and Rosewood Capital, where he focused on branded consumer products and services. Prior to his private equity career, Mr. Black was a member of the founding team of Harris Interactive.

Mr. Black holds a BA and JD from Cornell University.

Mr. Black's extensive experience in venture capital and private equity, including as a managing director and founder of various firms, makes him qualified to serve on the Board.

**Michael Dinsdale**

Michael Dinsdale is a Managing Director at Akkadian. For over 20 years, Mr. Dinsdale has embodied the "modern unicorn" CFO, with strategic expertise in building high-growth international companies that consistently exceed growth targets.

Prior to Akkadian, Mr. Dinsdale was the Chief Financial Officer of the following three market-leading software companies that generated an aggregate of over $80 billion in value and for which he successfully secured an aggregate of over $2 billion in financing. He previously served on the Board of Directors for WildAid (non-profit).

Mr. Dinsdale holds a BS in engineering from the University of Western Ontario, an MBA from McMaster University, and the CFA designation. He competed on the Canadian National Sailing Team in the 1996 Olympic trials.

Mr. Dinsdale's finance expertise and his experience as a CFO of multiple companies makes him qualified to serve on the Board.

**Vivian Chow**

Vivian Chow spent eight years as SVP Chief Accounting Officer at DocuSign (NASDAQ: DOCU), a cloud-based platform for electronic signatures. While there, she was responsible for accounting, sales compensation, internal audit, tax and treasury.

Prior to joining DocuSign in 2013, Ms. Chow served five years as VP of Finance Worldwide Controller at Electronic Arts Inc. (NASDAQ: EA), a leading publisher of video games. Prior to Electronic Arts, she held VP and Corporate Controller positions at companies in the retail, medical device and financial services industries.

Ms. Chow started her career in public accounting at Arthur Andersen & Co., a public accounting partnership. She is an inactive Certified Public Accountant in the State of California.

Ms. Chow holds a BS in Accounting from Lehigh University. She is a Board Member of LiveRamp (NYSE: RAMP), a data collaboration platform for consumer data.

Ms. Chow's extensive accounting and finance background and her executive experience, including serving as a chief accounting officer and controller, make her qualified to serve on the Board.

**Nicholas Earl**

Nicholas Earl is a 29-year game industry veteran. He served as Glu Mobile's President and CEO and held a seat on the company's Board of Directors. In 2021, Electronic Arts purchased Glu Mobile for $2.4 billion, the 7th largest acquisition in video gaming history.

Prior to Glu, Mr. Earl was President of Worldwide Studios at Kabam, presiding over such games as Marvel: Contest of Champions. Mr. Earl served as SVP of EA Mobile at Electronic Arts, overseeing hits such as The Simpsons: Tapped Out, The Sims FreePlay and Real Racing 3. While there, he also led the company's transition from the premium to freemium model.

Prior to EA Mobile, Mr. Earl was SVP of EA Games launching such console and PC franchises as Knockout Kings, James Bond, Tiger Woods PGA Tour, The Godfather, The Sims, The Simpsons, Lord of the Rings and Dead Space.

Mr. Earl holds a BA in Economics from the University of California, Berkeley. He served as a Board Member and head of the Compensation Committee of SciPlay (SCPL), a leading developer and publisher of digital games, until its sale to Light & Wonder in 2023.

Mr. Earl's service on multiple boards, and his extensive executive experience, including as a CEO make him qualified to serve on the Board.

**Lars Leckie**

Lars Leckie has a wealth of experience in technology investment as a former technology founder and twenty year career in venture capital. As a Co-founder of Aspenwood Ventures and a long-standing Managing Director at Hummer Winblad Venture Partners, Mr. Leckie has a track record of identifying and nurturing founders of disruptive software companies.

Before his venture capital career, Mr. Leckie co-founded AutoFarm, a company focused on GPS and robotics. As a Managing Director at Aspenwood Ventures, Mr. Leckie continues to focus on early-stage B2B software companies. His firm's prior successes include exited category winning companies like Mulesoft and Five9, as well as emerging companies like Arkose Labs, Amberdata and Aria Systems.

Mr. Leckie holds a MS (Engineering) from Stanford University and an MBA from the Stanford Graduate School of Business.

Mr. Leckie's depth of experience in venture capital investing, and his experience as an executive make him qualified to serve on the Board.

***Board Leadership Structure and Role in Risk Oversight***

Overall responsibility for our oversight rests with the Board. We have entered into the Investment Advisory Agreement pursuant to which the Adviser will manage the Fund on a day-to-day basis. The Board is responsible for overseeing the Adviser and our other service providers in accordance with the provisions of the 1940 Act, applicable provisions of state and other laws and our charter. The Board is composed of five members, three of whom are Independent Directors. The Board meets at regularly scheduled quarterly meetings each year. In addition, the Board may hold special in-person or telephonic meetings or informal conference calls to discuss specific matters that may arise or require action between regular meetings. As described below, the Board has established an Audit Committee, a Nominating and Corporate Governance Committee and a Compensation Committee, and may establish ad hoc committees or working groups from time to time, to assist the Board in fulfilling its oversight responsibilities.

The Board has appointed Vivian Chow to serve in the role of Chair of the Board. The Chair's role is to preside at all meetings of the Board and to act as a liaison with the Adviser, counsel and other Directors generally between meetings. The Chair serves as a key point person for dealings between management and the Directors. The Chair also may perform such other functions as may be delegated by the Board from time to time. The Board reviews matters related to its leadership structure annually. The Board believes that Ms. Chow's finance and accounting background, and experience as an executive and as a member of corporate boards qualifies her to serve as Chair of the Board. The Board believes that its leadership structure is appropriate in light of the Fund's characteristics and circumstances because the structure allocates areas of responsibility among the individual Directors and the committees in a manner that encourages effective oversight. The Board also believes that its size creates a highly efficient governance structure that provides ample opportunity for direct communication and interaction between the Adviser and the Board.

We are subject to a number of risks, including investment, compliance, operational and valuation risks, among others. Risk oversight forms part of the Board's general oversight of the Fund and is addressed as part of various Board and committee activities. Day-to-day risk management functions are subsumed within the responsibilities of the Adviser and other service providers (depending on the nature of the risk), which carry out our investment management and business affairs. The Adviser and other service providers employ a variety of processes, procedures and controls to identify various events or circumstances that give rise to risks, to lessen the probability of their occurrence and to mitigate the effects of such events or circumstances if they do occur. Each of the Adviser and other service providers has their own independent interest in risk management, and their policies and methods of risk management will depend on their functions and business models. The Board recognizes that it is not possible to identify all of the risks that may affect the Fund or to develop processes and controls to eliminate or mitigate their occurrence or effects. As part of its regular oversight of the Fund, the Board interacts with and reviews reports from, among others, the Adviser, our Chief Compliance Officer, our independent registered public accounting firm and counsel, as appropriate, regarding risks faced by the Fund and applicable risk controls. The Board may, at any time and in its discretion, change the manner in which it conducts risk oversight.

***Communications with Directors***

Stockholders and other interested parties may contact any member (or all members) of the Board by mail. To communicate with the Board, any individual Directors or any group or committee of Directors, correspondence should be addressed to the Board or any such individual Directors or group or committee of Directors by either name or title. All such correspondence should be sent to Powerlaw Corp., 631 Folsom Street, Ste A & B, San Francisco, California, 94107-3850. Attention: Chair of the Audit Committee.

**Board Committees**

***Audit Committee Governance, Responsibilities and Meetings***

In accordance with its written charter adopted by the Board, the Audit Committee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) assists the Board's oversight of the integrity of our financial statements, the independent registered public accounting firm's qualifications and independence, our compliance with legal and regulatory requirements and the performance of our independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) prepares an Audit Committee report, if required by the SEC, to be included in our annual proxy statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) oversees the scope of the annual audit of our financial statements, the quality and objectivity of our financial statements, accounting and financial reporting policies and internal controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) determines the selection, appointment, retention and termination of our independent registered public accounting firm, as well as approving the compensation thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) pre-approves all audit and non-audit services provided to us and certain other persons by such independent registered public accounting firm; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) acts as a liaison between our independent registered public accounting firm and the Board.

Vivian Chow, Nicholas Earl and Lars Leckie are members of the Audit Committee and Vivian Chow serves as Chair.

Our Board has determined that each Audit Committee member meets the current independence and experience requirements of Rule 10A-3 of the Exchange Act. Our Board has determined that Vivian Chow is an audit committee financial expert as defined under SEC rules.

***Nominating and Corporate Governance Committee Governance, Responsibilities and Meetings***

In accordance with its written charter adopted by the Board, the Nominating and Corporate Governance Committee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) recommends to the Board persons to be nominated by the Board for election at the Fund's meetings of our stockholders, special or annual, if any, or to fill any vacancy on the Board that may arise between stockholder meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) makes recommendations with regard to the tenure of the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is responsible for overseeing an annual evaluation of the Board and its committee structure to determine whether the structure is operating effectively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) recommends to the Board the compensation to be paid to the Independent Directors of the Board.

The Nominating and Corporate Governance Committee will consider for nomination to the Board candidates submitted by our stockholders or from other sources it deems appropriate.

Vivian Chow, Nicholas Earl and Lars Leckie are members of the Nominating and Corporate Governance Committee and Lars Leckie serves as Chair.

**Director Nominations**

Nomination for election as a Director may be made by, or at the direction of, the Nominating and Corporate Governance Committee or by stockholders in compliance with the procedures set forth in our bylaws. Our Nominating and Corporate Governance Committee will consider qualified Director nominees recommended by stockholders when such recommendations are submitted in accordance with our bylaws and any applicable law, rule or regulation regarding Director nominations. When submitting a nomination for consideration, a stockholder must provide certain information that would be required under applicable SEC rules, including the following minimum information for each Director nominee: full name, age and address; principal occupation during the past five years; current directorships on publicly held companies and investment companies; number of our securities owned, if any; and, a written consent of the individual to stand for election if nominated by our Board and to serve if elected by our stockholders.

Stockholder proposals or director nominations to be presented at the annual meeting of stockholders, other than stockholder proposals submitted pursuant to the SEC's Rule 14a-8, must be submitted in accordance with the advance notice procedures and other requirements set forth in our bylaws. These requirements are separate from the requirements discussed above to have the stockholder nomination or other proposal included in our proxy statement and form of proxy/voting instruction card pursuant to the SEC's rules.

Our bylaws require that the proposal or recommendation for nomination must be delivered to, or mailed and received at, the principal executive offices of the Fund not earlier than the 150th day prior to the one year anniversary of the date the Fund's proxy statement for the preceding year's annual meeting, or later than the 120th day prior to the first anniversary of the date of the proxy statement for the preceding year's annual meeting. If the date of the annual meeting has changed by more than 30 days from the first anniversary of the date of the preceding year's annual meeting, stockholder proposals or director nominations must be so received not earlier than the 150th day prior to the date of such annual meeting and not later than the 120th day prior to the date of such annual meeting or the tenth day following the day on which public announcement of the date of such meeting is first made.

In evaluating director nominees, the Nominating and Corporate Governance Committee considers, among others, the following factors:

● whether the individual possesses high standards of character and integrity, relevant experience, a willingness to ask hard questions and the ability to work well with others;

● whether the individual is free of conflicts of interest that would violate applicable law or regulation or interfere with the proper performance of the responsibilities of a director;

● whether the individual is willing and able to devote sufficient time to the affairs of the Fund and be diligent in fulfilling the responsibilities of a director and Board committee member;

● whether the individual has the capacity and desire to represent the balanced, best interests of the stockholder as a whole and not a special interest group or constituency; and

● whether the individual possesses the skills, experiences (such as current business experience or other such current involvement in public service, academia or scientific communities), particular areas of expertise, particular backgrounds, and other characteristics that will help ensure the effectiveness of the Board and Board committees.

The Nominating and Corporate Governance Committee's goal is to assemble a board that brings to the Fund a variety of perspectives and skills derived from high-quality business and professional experience.

Other than the foregoing, there are no stated minimum criteria for director nominees, although the Nominating and Corporate Governance Committee may also consider other factors as they may deem are in the best interests of the Fund and its stockholders. The Board also believes it appropriate for certain key members of our management to participate as members of the Board.

The Nominating and Corporate Governance Committee identifies nominees by first evaluating the current members of the Board willing to continue in service. Current members of the Board with skills and experience that are relevant to our business and who are willing to continue in service are considered for re-nomination. If any member of the Board does not wish to continue in service or if the Nominating and Corporate Governance Committee decides not to re-nominate a member for re-election, the Nominating and Corporate Governance Committee identify the desired skills and experience of a new nominee in light of the criteria above. The members of the Board are polled for suggestions as to individuals meeting the aforementioned criteria. Research may also be performed to identify qualified individuals. To date, we have not engaged third parties to identify or evaluate or assist in identifying potential nominees, although we reserve the right in the future to retain a third-party search firm, if necessary.

***Compensation Committee***

In accordance with its written charter adopted by the Board, the Compensation Committee is responsible for determining, or recommending to the Board for determination, the compensation, if any, of our chief executive officer and all other officers. The Compensation Committee also assists the Board with matters related to compensation generally, except with respect to compensation of the Directors.

Vivian Chow, Nicholas Earl and Lars Leckie are members of the Compensation Committee and the Chair of the committee is Nicholas Earl.

**Director Compensation**

The following table sets forth the compensation expected to be received by our Directors for the year ending September 30, 2026. The Fund does not maintain a pension plan or retirement plan for any of the Directors.

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| | | |
|:---|:---|:---|
| **Name** | **Aggregate<br> Compensation From<br> Fund** | **Total Compensation<br> from Fund and<br> Fund Complex<br> Paid to Directors** |
| ***Interested Directors*** | | |
| Michael Dinsdale |  |  |
| Benjamin Black |  |  |
| ***Independent Directors*** |  |  |
| Vivian Chow | $95000 | $95000 |
| Nicholas Earl | $67500 | $67500 |
| Lars Leckie | $67500 | $67500 |

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No compensation is paid to our Directors considered to be "interested persons" as defined in the 1940 Act. Our Independent Directors who do not also serve in an officer capacity for us or the Adviser are entitled to receive annual cash retainer fees, fees for participating in in-person Board and committee meetings and annual fees for serving as a committee chairperson.

The Independent Directors receive an annual fee of $60,000 plus additional compensation for the Board Chair ($20,000 annually), the chair of the Audit Committee ($15,000 annually) and the chairs of the Nominating and Compensation Committees ($7,500 annually, respectively). They also receive reimbursements of reasonable out-of-pocket expenses incurred in connection with attending in person or telephonically each regular Board meeting.

**Officer Compensation**

Except as specified in the Investment Advisory Agreement, none of our officers who are also officers or employees of our Adviser will receive direct compensation from us. We do not currently have any employees and do not expect to have any employees. Services necessary for our business are provided by individuals who are employees or officers of our Adviser or by individuals who were contracted by us or our Adviser to work on our behalf.

**Director Ownership of Common Stock**

The table below sets forth the dollar range of the value of our common stock that is owned beneficially by each Director as of September 30, 2025. For purposes of this table, beneficial ownership is defined to mean a direct or indirect pecuniary interest.

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| | | |
|:---|:---|:---|
| **Name of Director** | **Dollar Range of<br> Equity Securities<br> in the Fund<sup>(1)</sup>** | **Dollar Range of<br> Equity Securities<br> in the Fund <br> Complex<sup>(1)</sup>** |
| ***Interested Directors*** |  |  |
| Benjamin Black | Over $100,000 | Over $100,000 |
| Michael Dinsdale | Over $100,000 | Over $100,000 |
| ***Independent Directors*** |  |  |
| Vivian Chow | Over $100,000 | Over $100,000 |
| Nicholas Earl | Over $100,000 | Over $100,000 |
| Lars Leckie | Over $100,000 | Over $100,000 |

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(1) Dollar ranges are as follows: None; $1 – $10,000; $10,001 – $50,000; $50,001 – $100,000; or over $100,000**.**

**INVESTMENT ADVISORY AND OTHER SERVICES**

**The Investment Adviser**

We are managed by the Adviser. The Adviser is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The principal address of the Adviser is 631 Folsom Street, Ste A & B, San Francisco, California, 94107-3850. Subject to the overall supervision of our Board, the Adviser manages our day-to-day operations and provides investment advisory and management services to us. The Adviser or its affiliates may engage in certain origination activities, including sourcing investment opportunities, conducting research, performing diligence on potential investments, structuring our investments, and monitoring our Portfolio Companies on an ongoing basis through a team of investment professionals.

The Adviser's Investment Committee is currently comprised of Benjamin Black and Michael Dinsdale and is supported by members of the Adviser's senior executive team. The Investment Committee is responsible for selecting and evaluating all investment opportunities on behalf of the Fund. The Investment Committee's members may change from time to time as designated by the Adviser.

***The Investment Advisory Agreement***

The Adviser serves as our investment adviser pursuant to the Investment Advisory Agreement between us and the Adviser. Under the terms of the Investment Advisory Agreement, the Adviser is responsible for managing the investment and reinvestment of the Fund's assets.

Unless earlier terminated as described below, the Investment Advisory Agreement will remain in effect for an initial two-year term and then from year-to-year if approved annually by a majority of the Board or by the holders of a majority of our outstanding voting securities and, in each case, a majority of the Independent Directors.

The Investment Advisory Agreement will automatically terminate within the meaning of the 1940 Act and related SEC guidance and interpretations in the event of its assignment. In accordance with the 1940 Act, without payment of penalty, we may terminate the Investment Advisory Agreement with the Adviser upon 60 days' written notice. The decision to terminate the agreement may be made by a majority of the Board or the stockholders holding a majority of the outstanding shares of our common stock (which is defined under the 1940 Act as the lesser of: (a) 67% or more of such company's voting securities present at a meeting if more than 50% of the outstanding voting securities of such company are present or represented by proxy, or (b) more than 50% of the outstanding voting securities of such company). In addition, without payment of penalty, the Adviser may generally terminate the Investment Advisory Agreement upon 60 days' written notice.

Under the Investment Advisory Agreement, commencing upon the effective date of the Fund's Registration Statement (the "Effective Date"), we will pay the Adviser a management fee, payable quarterly, in an amount equal to 2.50% of our average gross assets of the Fund at the end of the two most recently completed calendar quarters (the "Management Fee"). For purposes of the Investment Advisory Agreement, the term "gross assets" excludes cash and cash equivalents but includes assets purchased with borrowed funds. Prior to the effectiveness of the Registration Statement, the Adviser will not charge a management fee.

The Adviser and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser, including without limitation its sole member, are not liable to us for any action taken or omitted to be taken by the Adviser in connection with the performance of any of its duties or obligations under the Investment Advisory Agreement or otherwise as our investment adviser (except to the extent specified in Section 36(b) of the 1940 Act concerning loss resulting from a breach of fiduciary duty (as the same is finally determined by judicial proceedings) with respect to the receipt of compensation for services).

We will indemnify the Adviser and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser, including without limitation its general partner or managing member (collectively, the "Indemnified Parties") and hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys' fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of us or our security holders) arising out of or otherwise based upon the performance of any of the Adviser's duties or obligations under the Investment Advisory Agreement or otherwise as our investment adviser. However, the Indemnified Parties shall not be entitled to indemnification in respect of, any liability to us or our stockholders to which the Indemnified Parties would otherwise be subject by reason of criminal conduct, willful misfeasance, bad faith or gross negligence in the performance of the Adviser's duties or by reason of the reckless disregard of the Adviser's duties and obligations under the Investment Advisory Agreement.

***Portfolio Management***

Benjamin Black and Michael Dinsdale are responsible for the day-to-day management of the Fund's portfolio.

***Other Accounts Managed by the Portfolio Managers***

The following table sets forth information about funds and accounts other than the Fund for which the portfolio managers are primarily responsible for the day-to-day portfolio management as of September 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number <br> of <br> Accounts** | **Total Assets in<br> Accounts <br> ($ million)** | **Number of<br> Accounts<br> Subject to a<br> Performance-<br> Based<br> Advisory<br> Fee** | **Total <br> Assets in <br> Accounts <br> Subject <br> to a <br> Performance-<br> based <br> Advisory <br> Fee <br> ($ million)** |
| **Benjamin Black** | | | | |
| Registered Investment Companies | 0 | $0 | 0 | $&nbsp;&nbsp;&nbsp;&nbsp; 0 |
| Other Pooled Investment Vehicles | 17 | $722109008 | 0 | $0 |
| Other Accounts | 0 | $0 | 0 | $0 |
| **Michael Dinsdale** |  |  |  |  |
| Registered Investment Companies | 0 | $0 | 0 | $0 |
| Other Pooled Investment Vehicles | 14 | $540727700 | 0 | $0 |
| Other Accounts | 0 | $0 | 0 | $0 |

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***Portfolio Manager Compensation Overview***

The discussion below describes the portfolio managers' compensation:

The Fund's portfolio managers are compensated by the Adviser and do not receive any compensation directly from the Fund. Compensation generally consists of a fixed base salary, non-performance based distributions and participation in Akkadian's retirement and benefit plans.

The portfolio managers own equity interests in the Fund and may also have equity ownership interests in the Adviser or its affiliates, which align their long-term financial interests with those of the Adviser's clients, including the Fund.

***Securities Ownership of Portfolio Managers***

The table below shows the dollar range of shares of our common stock to be beneficially owned by the portfolio managers as of September 30, 2025 stated as one of the following dollar ranges: None; $1–$10,000; $10,001–$50,000; $50,001–$100,000; $100,001–$500,000; $500,001–$1,000,000; or over $1,000,000.

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| | |
|:---|:---|
| Name | Dollar Range of Equity Securities in<br> Powerlaw Corp.<sup>(1)(2)</sup> |
| **Benjamin Black** | Over $1,000,000 |
| **Michael Dinsdale** | Over $1,000,000 |

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(1) Beneficial ownership determined in accordance with Rule 16a-1(a)(2) promulgated under the Exchange Act.

(2) The dollar range of equity securities of the Fund beneficially owned by the portfolio managers is based on NAV.

***Portfolio Manager Conflicts of Interest***

The Fund's portfolio managers have several conflicts of interest as a result of the other activities in which they engage. The Adviser is affiliated with other entities engaged in the financial services business. These other relationships may cause the Adviser's and certain of its affiliates' interests, and the interests of their officers and employees, including the portfolio managers, to diverge from our interests and may result in conflicts of interest that may not be foreseen or resolved in a manner that is always or exclusively in our best interest. The Adviser and its affiliates have entered into, and may in the future enter into, additional business arrangements with certain of our stockholders. More information regarding conflicts of interest is included in the section below entitled "Conflicts of Interest."

***The Administrator***

Paralel Technologies LLC serves as the administrator of the Fund. Pursuant to a fund administration services agreement, the administrator provides certain administrative services to the Fund. The administrator receives a monthly fee equal to the greater of an annual minimum fee or a fee equal to a percentage of the Fund's net assets, which percentage is subject to breakpoints at increasing levels of net assets. The Fund also reimburses the administrator for certain out-of-pocket expenses. Paralel Technologies LLC's principal business address is 1700 Broadway, Suite 1850, Denver, Colorado 80290.

**CONFLICTS OF INTEREST**

**Affiliations of the Adviser**

Our executive officers and Directors, and the Adviser and its officers and employees, including the portfolio managers, have several conflicts of interest as a result of the other activities in which they engage. The Adviser is affiliated with other entities engaged in the financial services business. These other relationships may cause the Adviser's and certain of its affiliates' interests, and the interests of their officers and employees, including the portfolio managers, to diverge from our interests and may result in conflicts of interest that may not be foreseen or resolved in a manner that is always or exclusively in our best interest. The Adviser and its affiliates have entered into, and may in the future enter into, additional business arrangements with certain of our stockholders.

**Other Accounts**

The Adviser is responsible for the investment decisions made on our behalf. There are no restrictions on the ability of the Adviser and certain of its affiliates to manage accounts for multiple clients, including accounts for affiliates of the Adviser or their directors, officers or employees, following the same, similar, or different investment objectives, philosophies, and strategies as those used by the Adviser for our account. In those situations, the Adviser and its affiliates may have conflicts of interest in allocating investment opportunities between us and any other account managed by such person. See "— Allocations of Opportunities" below. Such conflicts of interest would be expected to be heightened where the Adviser manages an account for an affiliate or its directors, officers, or employees. In addition, certain of these accounts may provide for higher management fees or have incentive fees or may allow for higher expense reimbursements, all of which may contribute to a conflict of interest and create an incentive for the Adviser to favor such other accounts. Further, accounts managed by the Adviser or certain of its affiliates may hold certain investments that conflict with the positions held by the Fund. In these cases, when exercising the rights of each account with respect to such investments, the Adviser and/or its affiliate will have a conflict of interest, as actions on behalf of one account may have an adverse effect on another account managed by the Adviser or such affiliate, including us.

Our executive officers and Directors, as well as other current and potential future affiliated persons, officers, and employees of the Adviser and certain of its affiliates, may serve as officers, directors, or principals of, or manage the accounts for, other entities with investment strategies that substantially or partially overlap with the strategy that we intend to pursue. Accordingly, they may have obligations to investors in those entities, the fulfillment of which obligations may not be in the best interests of us or our stockholders.

Further, the professional staff of the Adviser will devote as much time to us as such professionals deem appropriate to perform their duties in accordance with the Investment Advisory Agreement. However, such persons may be committed to providing investment advisory and other services for other clients and engage in other business ventures in which we have no interest. As a result of these separate business activities, the Adviser may have conflicts of interest in allocating management and administrative time, services, and functions among us and its affiliates and other business ventures or clients.

**Allocations of Opportunities**

As a fiduciary, the Adviser owes a duty of loyalty to its clients and must treat each client fairly. When the Adviser purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. To this end, the Adviser has adopted policies and procedures pursuant to which they allocate investment opportunities appropriate for more than one client account in a manner deemed appropriate in their sole discretion to achieve a fair and equitable result over time. Pursuant to these policies and procedures, when allocating investment opportunities, the Adviser may take into account regulatory, tax, or legal requirements applicable to an account. In allocating investment opportunities, the Adviser may use rotational, percentage, or other allocation methods provided that doing so is consistent with the Adviser's internal conflict of interest and allocation policies and the requirements of the Advisers Act, the 1940 Act and other applicable laws. In addition, an account managed by the Adviser, such as us, is expected to be considered for the allocation of investment opportunities together with other accounts managed by affiliates of the Adviser. There is no assurance that such opportunities will be allocated to any particular account equitably in the short-term or that any such account, including us, will be able to participate in all investment opportunities that are suitable for it.

**Valuation**

The Portfolio Companies in which the Fund invests ordinarily are privately held. As a result, we value, and the Adviser reviews and determines, in good faith, in accordance with the 1940 Act, the value of, these securities based on relevant information compiled by the Adviser and third-party pricing services (when available) as described under "Determination of Net Asset Value." Our interested Directors are associated with the Adviser and have an interest in the Adviser's economic success. The participation of the Adviser's investment professionals in our valuation process, and the interest of our interested Directors in the Adviser, could result in a conflict of interest as the management fee paid to the Adviser is based, in part, on our net assets.

**Co-Investments and Related Party Transactions**

In the ordinary course of business, we may enter into transactions with persons who are affiliated with us by reason of being under common control of the Adviser or its affiliates. In order to ensure that we do not engage in any prohibited transactions with any persons affiliated with us, we have implemented certain policies and procedures whereby our executive officers screen each of our transactions for any possible affiliations between us, the Adviser and its affiliates and our employees, officers, and directors. We will not enter into any such transactions unless and until we are satisfied that doing so will not raise concerns under the 1940 Act or, if such concerns exist, we have taken appropriate actions to seek review and approval of our Board or exemptive relief for such transaction. Our affiliations may require us to forgo attractive investment opportunities.

**Material Non-Public Information**

By reason of the advisory and/or other activities of the Adviser and its affiliates, the Adviser and its affiliates may acquire confidential or material non-public information or be restricted from initiating transactions in certain securities. The Adviser will not be free to divulge, or to act upon, any such confidential or material non-public information and, due to these restrictions, it may not be able to initiate a transaction for our account that it otherwise might have initiated. As a result, we may be frozen in an investment position that we otherwise might have liquidated or closed out or may not be able to acquire a position that we might otherwise have acquired.

**Code of Ethics and Compliance Procedures**

In order to address the conflicts of interest described above, we have adopted a code of ethics under Rule 17j-l under the 1940 Act. Similarly, the Adviser has separately adopted the "Adviser Code of Ethics." The Adviser Code of Ethics requires the officers and employees of the Adviser to act in the best interests of the Adviser and its client accounts (including us), act in good faith and in an ethical manner, avoid conflicts of interests with the client accounts to the extent reasonably possible, and identify and manage conflicts of interest to the extent that they arise. Personnel subject to each code of ethics may invest in securities for their personal investment accounts, including securities that may be purchased or held by us, so long as such investments are made in accordance with the code's requirements. In addition, each code of ethics is incorporated by reference as an exhibit to the registration statement of which this prospectus is a part, and is available on the EDGAR Database on the SEC's website at www.sec.gov.

Our Directors and officers, and the officers and employees of the Adviser, are also required to comply with applicable provisions of the U.S. federal securities laws and make prompt reports to supervisory personnel of any actual or suspected violations of law.

In addition, the Adviser has built a professional working environment, firm-wide compliance culture, and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. The Adviser has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees, and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time.

**PROXY VOTING POLICIES AND PROCEDURES**

The Fund invests in securities issued by Portfolio Companies. As such, it is expected that proxies and consent requests received by the Fund will deal with matters related to the operative terms and business details of those Portfolio Companies.

To the extent that the Fund receives notices or proxies from Portfolio Companies (or to the extent the Fund receives proxy statements or similar notices in connection with any other portfolio securities), the Fund has delegated proxy voting responsibilities to the Adviser, subject to the oversight of the Board. The Adviser will vote proxies and respond to investor consent requests in the best interests of the Fund, as applicable, in accordance with the Adviser's Proxy Voting Policies and Procedures (the "Policies").

With respect to each proxy proposal, the Adviser will consider the period of time that the particular security is expected to be held for an account, the size of the holding, the costs involved with the proxy proposal, the existing corporate governance structure, and the current management and operations for the particular company. Typically, the Adviser will vote proxies in accordance with management's recommendations. However, in situations where the Adviser believes that management is acting on its own behalf or acting in a manner that is adverse to the rights of the company's stockholders, the Adviser will not vote with management. For each proxy, the Adviser also considers whether there are any specific facts and circumstances that may give rise to a material conflict of interest on the part of the Adviser in voting the proxy. If it is determined that a material conflict of interest may exist, the proxy will be referred to the Adviser's Chief Compliance Officer to decide if the Adviser may vote the proxy or if the proxy should be referred to the Fund to vote. All instances where the Adviser determines a material conflict of interest may exist are resolved in the best interests of the Fund.

Information regarding how the Fund voted proxies relating to portfolio securities held by the Fund during the most recent 12-month period ending June 30 will be available (1) without charge, upon request, by calling the Fund at (707) 653-6892; (2) on the Fund's website (www.pwrl.com); (3) by emailing legal@pwrl.com; and (4) on the SEC's website at www.sec.gov. In addition, copies of the Fund's proxy voting policies and procedures are also available by calling (707) 653-6892 and will be sent within three business days of receipt of a request.

**CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS**

Beneficial ownership is determined in accordance with the rules and regulations of the SEC. These rules generally provide that a person is the beneficial owner of securities if such person has or shares the power to vote or direct the voting thereof, or to dispose or direct the disposition thereof or has the right to acquire such powers within 60 days. The following table sets forth the beneficial ownership as indicated in the Fund's books and records of each current Director, the Fund's officers, the officers and Directors as a group, and each person known to us to beneficially own 5% or more of the outstanding shares of our common stock.

The table shows such ownership as of February 2, 2026**.**

---

| | | |
|:---|:---|:---|
| **Name and Address** | **Shares owned** | **Percentage<sup>(1)</sup>** |
| ***5% Owners*** | | |
| Corient Private Access, LP<br> 600 Superior Ave. East, Suite 1510 <br> Cleveland, OH 44114 USA | 10689829 | 24.72% |
| ***Interested Directors*** |  |  |
| Michael Dinsdale | 1243585 | 2.88% |
| Benjamin Black | 1191497 | 2.76% |
| ***Independent Directors*** |  |  |
| Nicholas Earl | 129313 | 0.30% |
| Vivian Chow | 52376 | 0.12% |
| Lars Leckie | 29313 | 0.07% |
| ***Officers*** |  |  |
| Peter Smith | 790607 | 1.83% |
| Angela Stanley | 217563 | 0.50% |
| Tracy Hogan |  | –% |
| ***All officers and Directors as a group (eight persons)*** | 3654254 | 8.45% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp; Percentage based on 43,242,931 shares issued and outstanding as of February 2, 2026.

The address for each of the Directors and officers is c/o Powerlaw Corp., 631 Folsom Street, Ste A & B, San Francisco, California, 94107-3850.

**PORTFOLIO TRANSACTIONS AND BROKERAGE**

Though we acquire and dispose of certain of our investments in privately negotiated transactions, including in connection with private secondary market transactions, we also use brokers in the normal course of our business. However, to the extent a broker-dealer is involved in a transaction, the price paid or received by us may reflect a mark-up or mark-down. Subject to policies established by our Board, the Adviser will be primarily responsible for selecting brokers and dealers to execute transactions with respect to the publicly traded securities portion of our portfolio transactions and the allocation of brokerage commissions. The Adviser does not expect to execute transactions through any particular broker or dealer but will seek to obtain the best net results for us under the circumstances, taking into account such factors as price (including the applicable brokerage commission or dealer spread), size of order, difficulty of execution and operational facilities of the firm and the firm's risk and skill in positioning blocks of securities. The Adviser generally will seek reasonably competitive trade execution costs but will not necessarily pay the lowest spread or commission available. Subject to applicable legal requirements and consistent with Section 28(e) of the Exchange Act, the Adviser may select a broker based upon brokerage or research services provided to the Adviser and us and any other clients. In return for such services, we may pay a higher commission than other brokers would charge if the Adviser determines in good faith that such commission is reasonable in relation to the services provided.

**LEGAL MATTERS**

Eversheds Sutherland (US) LLP, located at 700 Sixth Street, N.W., Suite 700, Washington, DC 20001, serves as our legal counsel. Certain legal matters regarding the validity of the shares offered hereby will be passed upon for us by Miles & Stockbridge, located at 100 Light Street, Baltimore, MD 21202.

**ADMINISTRATOR, CUSTODIAN AND TRANSFER AGENT**

Paralel Technologies LLC serves as the Fund administrator. The principal business address of Paralel Technologies LLC is 1700 Broadway, Suite 1850, Denver, Colorado 80290.

Our portfolio securities are held pursuant to a custodian agreement between us and U.S. Bank National Association. The principal business address of U.S. Bank National Association is 5065 Wooster Road, Cincinnati, Ohio 45226.

Continental Stock Transfer & Trust Company serves as our transfer agent, distribution paying agent and registrar. The principal business address of Continental Stock Transfer & Trust Company is 1 State Street, Floor 30, New York, New York 10004-1561.

**INDEPENDENT AUDITORS**

KPMG LLP, is the independent registered public accounting firm for the Fund and audits the Fund's financial statements. KPMG LLP is located at Aon Center, Suite 5500, 200 E. Randolph Street, Chicago, IL 60601-6436.

**FINANCIAL STATEMENTS**

**Table of Contents**

---

| | |
|:---|:---|
| **Unaudited Consolidated Financial Statements** |  |
| [Consolidated Schedule of Investments as of December 31, 2025 (Unaudited)](#a_001) | S-21 |
| [Consolidated Statement of Assets and Liabilities as of December 31, 2025 (Unaudited)](#a_002) | S-26 |
| [Consolidated Statement of Operations for the three months ended December 31, 2025 (Unaudited)](#a_003) | S-27 |
| [Consolidated Statement of Changes in Net Assets for the three months ended December 31, 2025 (Unaudited)](#a_004) | S-28 |
| [Consolidated Statement of Cash Flows for the three months ended December 31, 2025 (Unaudited)](#a_005) | S-30 |
| [Financial Highlights for the period January 15, 2025 (Commencement of Operations) through December 31, 2025 (Unaudited)](#PR_002) | S-31 |
| [Notes to Consolidated Financial Statements (Unaudited)](#a_006) | S-32 |
| **Audited Consolidated Financial statements** |  |
| &nbsp;&nbsp;&nbsp;[Consolidated Schedule of Investments as of September 30, 2025](#KJ_034) | S-48 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statement of Assets and Liabilities as of September 30, 2025](#KJ_035) | S-51 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statement of Operations for the Period January 15, 2025 (Commencement of Operations) through September 30, 2025](#PR_001) | S-52 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statement of Changes in Net Assets for the Period January 15, 2025 (Commencement of Operations) through September 30, 2025](#KJ_036) | S-53 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statement of Cash Flows for the Period January 15, 2025 (Commencement of Operations) through September 30, 2025](#KJ_037) | S-54 |
| &nbsp;&nbsp;&nbsp;[Notes to Consolidated Financial Statements](#KJ_038) | S-55 |
| &nbsp;&nbsp;&nbsp;[Consolidated Financial Highlights for the Period January 15, 2025 (Commencement of Operations) through September 30, 2025](#KJ_039) | S-64 |
| &nbsp;&nbsp;&nbsp;[Report of Independent Registered Public Accounting Firm](#KJ_040) | S-65 |

---

**Powerlaw Corp.**

Financial Statements

For the three months ended

December 31, 2025

**Table of Contents**

---

| | |
|:---|:---|
| Consolidated Financial Statements |  |
| &nbsp;&nbsp;&nbsp;[Consolidated Schedule of Investments (Unaudited)](#a_001) | S-21 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statement of Assets and Liabilities (Unaudited)](#a_002) | S-26 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statement of Operations (Unaudited)](#a_003) | S-27 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statements of Changes in Net Assets (Unaudited)](#a_004) | S-28 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statement of Cash Flows (Unaudited)](#a_005) | S-30 |
| &nbsp;&nbsp;&nbsp;[Consolidated Financial Highlights (Unaudited)](#PR_002) | S-31 |
| &nbsp;&nbsp;&nbsp;[Notes to Consolidated Financial Statements (Unaudited)](#a_006) | S-32 |

---

**POWERLAW CORP.**

**CONSOLIDATED SCHEDULE OF INVESTMENTS** 

**DECEMBER 31, 2025 (UNAUDITED)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Shares/**<br>**Principal/**<br>**Units**<br>**Amount** | <br>**Security (Non-affiliated Investments)** | <br>**Acquisition**<br>**Date** |<br><br>**Cost** |<br><br>**Fair Value** |<br>**% of Net**<br> **Assets** |
| | **Investments, at fair value** |  | | | |
| | **Private Investments, at fair value** |  | | | |
| | **Private Investments, at fair value - Ireland** |  | | | |
| | &nbsp;&nbsp;&nbsp;**Common Stock, at fair value (a), (b), (c)** |  | | | |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Financial Technology** |  | | | |
| 401850 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stripe, Inc. - Class B Common Stock | 5/7/2025 | $15005029 | $16644627 | 3.50% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Common Stock, at fair value 3.50%** |  | 15005029 | 16644627 | 3.50% |
|  | **Total Private Investments, at fair value - Ireland 3.50%** |  | 15005029 | 16644627 | 3.50% |
|  | **Investments, at fair value - United States** |  |  |  |  |
|  | **Private Investments, at fair value - United States** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;**Call Right Agreements, at fair value (a), (b), (c), (d)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Defense Products** |  |  |  |  |
| 23562 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anduril Industries, Inc. - Call Right to purchase shares of Class B Common Stock | 4/1/2025 | 32160 | 1500 | 0.00% |
|  | &nbsp;&nbsp;&nbsp;**Total Call Right Agreements, at fair value 0.00%** |  | 32160 | 1500 | 0.00% |
|  | &nbsp;&nbsp;&nbsp;**Common Stock, at fair value (a), (b), (c)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Biotechnology and Genetic Engineering** |  |  |  |  |
| 1339584 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Colossal Biosciences Inc. - Common Stock | 8/18/2025 | 19999989 | 19999989 | 4.21% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Software** |  |  |  |  |
| 64500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Figma, Inc. Class A Common Stock | 4/14/2025 | 2064000 | 2410365 | 0.51% |
|  | &nbsp;&nbsp;&nbsp;**Total Common Stock, at fair value 4.72%** |  | 22063989 | 22410354 | 4.72% |
|  | &nbsp;&nbsp;&nbsp;**Forward agreements, at fair value (a), (b), (c), (e)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Defense Products** |  |  |  |  |
| 84444 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anduril Industries, Inc. - Forward Agreement to purchase Common Stock | 3/5/2025 | 3624674 | 3452071 | 0.73% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Mobility Technology** |  |  |  |  |
| 4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Waymo LLC - Forward Agreement to purchase Class B Membership Units | 5/19/2025 | 360000 | 360000 | 0.07% |
|  | &nbsp;&nbsp;&nbsp;**Total Forward Agreements, at fair value 0.80%** |  | 3984674 | 3812071 | 0.80% |
|  | &nbsp;&nbsp;&nbsp;**Preferred Stock, at fair value (a), (b), (c)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Artificial Intelligence (AI)** |  |  |  |  |
| 199093 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Groq, Inc. - Series B-2 Preferred Stock | 10/17/2025 | 6670616 | 6402831 | 1.35% |
| 248669 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Groq, Inc. - Series C Preferred Stock | 10/17/2025 | 8331412 | 7997195 | 1.68% |
| 124378 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Groq, Inc. - Series D-3 Preferred Stock | 10/9/2025 | 3999996 | 3999996 | 0.84% |
|  |  |  | 19002024 | 18400022 | 3.87% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Financial Technology** |  |  |  |  |
| 222223 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payward, Inc. (d/b/a Kraken) - Series Seed Preferred Stock | 8/5/2025 | 10001035 | 10000035 | 2.10% |

---

*See Notes to Consolidated Financial Statements.*

**POWERLAW CORP.**

**CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)**

**DECEMBER 31, 2025 (UNAUDITED)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal/**<br>**Units**<br>**Amount** | <br>**Security (Non-affiliated Investments)** | <br>**Acquisition**<br>**Date** |<br>**Cost** |<br>**Fair Value** |<br>**% of Net**<br> **Assets** |
| | **Human Resources Technology** |  | | | |
| 385439 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deel, Inc. - Series E Preferred Stock | 10/10/2025 | 14999975 | 14999975 | 3.16% |
|  | &nbsp;&nbsp;&nbsp;**Total Preferred Stock, at fair value 9.13%** |  | 44003034 | 43400032 | 9.13% |
|  | &nbsp;&nbsp;&nbsp;**Promissory Notes, at fair value (b), (c), (d)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Defense Products** |  |  |  |  |
| $490060 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anduril Industries, Inc. - 5.0% Secured Promissory Note due April 1, 2030 | 4/1/2025 | 490060 | 490060 | 0.10% |
| $122140 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anduril Industries, Inc. - 5.0% Secured Promissory Note due April 9, 2030 | 4/9/2025 | 122140 | 122140 | 0.03% |
| $349515 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anduril Industries, Inc. - 5.0% Secured Promissory Note due July 21, 2030 | 7/21/2025 | 349515 | 349515 | 0.07% |
|  | &nbsp;&nbsp;&nbsp;**Total Promissory Notes, at fair value 0.20%** |  | 961715 | 961715 | 0.20% |
|  | &nbsp;&nbsp;&nbsp;**SPVs, at fair value (a), (c), (f)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Artificial Intelligence (AI)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Altimeter Adirondack Fund I, L.P. (economic exposure to Anthropic, PBC) | 8/25/2025 | 4110600 | 7177567 | 1.51% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HOF Capital AF Growth, LLC (economic exposure to Anthropic, PBC) (b) | 3/26/2025 | 5100000 | 22055691 | 4.64% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NDH Opportunity Funds LLC - Series 1 (economic exposure to OpenAI Group PBC) | 7/11/2025 | 108999999 | 105745436 | 22.24% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paragon Avo II, A Series of Avo Technology Fund LP, LLC (economic exposure to OpenAI Group PBC) | 4/7/2025 | 5375000 | 5063288 | 1.06% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HII Perplexity Series II, a Series of Hii Perplexity, LLC (economic exposure to Perplexity AI, Inc.) | 9/12/2025 | 8240207 | 8000201 | 1.68% |
|  |  |  | 131825806 | 148042183 | 31.13% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Defense Products** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AND III, a Series of FDVC Growth, LP (economic exposure to Anduril Industries, Inc.) (b) | 3/7/2025 | 2243000 | 2432253 | 0.51% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Financial Technology** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fifth Era Coinvestors, LLC (economic exposure to Payward, Inc. (d/b/a Kraken)) | 7/14/2025 | 10890042 | 10106163 | 2.13% |
|  | &nbsp;&nbsp;&nbsp;**Total SPVs, at fair value 33.77%** |  | 144958848 | 160580599 | 33.77% |
|  | **Total Private Investments, at fair value - United States 48.62%** |  | 216004420 | 231166271 | 48.62% |
|  | **Total Private Investments, at fair value 52.12%** |  | 231009449 | 247810898 | 52.12% |

---

*See Notes to Consolidated Financial Statements.*

**POWERLAW CORP.**

**CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)**

**DECEMBER 31, 2025 (UNAUDITED)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal/**<br>**Units**<br>**Amount** | <br>**Security (Non-affiliated Investments)** | <br>**Acquisition**<br>**Date** |<br>**Cost** |<br>**Fair Value** |<br>**% of Net**<br> **Assets** |
| | &nbsp;&nbsp;&nbsp;**Short Term Investments, at fair value - United States** |  | | | |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Money Market** |  | | | |
| 1018915 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First American Funds, Inc. - Government Obligations Fund, Class X 3.68% (g) | 12/5/2025 | 1018915 | 1018915 | 0.21% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**U.S. Treasury Bills** |  |  |  |  |
| 1069000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury Bill - May 14, 2026 3.70% (g) | 11/13/2025 | 1054664 | 1055295 | 0.22% |
| 49760000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury Bill - May 28, 2026 3.70% (g) | 12/3/2025 | 49042751 | 49052910 | 10.32% |
|  |  |  | 50097415 | 50108205 | 10.54% |
|  | **Total Short Term Investments, at fair value - United States 10.75%** |  | 51116330 | 51127120 | 10.75% |
|  | **Total Investments, at fair value - United States 59.37%** |  | 267120750 | 282293391 | 59.37% |
|  | **Total Investments, at fair value 62.87%** |  | $282125779 | $298938018 | 62.87% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Non-income producing security.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Level 3 securities fair valued using significant unobservable
inputs. (See Note 2)

&nbsp;&nbsp;&nbsp;&nbsp;(c) Restricted securities as to resale. (See Note 2)

&nbsp;&nbsp;&nbsp;&nbsp;(d) Powerlaw Corp. made such loans to the borrowers pursuant to
the $961,715 secured promissory notes. Pursuant to the call right agreements, the borrowers granted Powerlaw Corp. the right to purchase
23,562 shares of Anduril Industries, Inc. Class B Common Stock, for an amount equal to the principal amount of the outstanding loans.
The number of collateral shares associated with such loans is 31,683 shares of Anduril Industries, Inc. Class B Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Powerlaw Corp. advanced to the counterparties an amount equal
to the negotiated purchase price of the counterparties' portfolio company securities, but the closing of the purchase and transfer of
such securities to Powerlaw Corp. will not close until any applicable transfer restrictions and lock-up provisions have expired.

&nbsp;&nbsp;&nbsp;&nbsp;(f) These special purpose vehicles ("SPVs") are private
investment vehicles that (i) are formed to invest in a particular portfolio company and (ii) are exempt from registration under the Investment
Company Act pursuant to Section 3(c)(7) of the Investment Company Act. By making a direct investment in these SPVs, Powerlaw Corp. owns
a direct ownership interest in these SPVs and an indirect ownership interest in the underlying portfolio company.

&nbsp;&nbsp;&nbsp;&nbsp;(g) Rate disclosed is the annualized yield rate.

LLC - Limited Liability Company

LP - Limited Partnership

PBC - a public benefit corporation

*See Notes to Consolidated Financial Statements.*

**POWERLAW CORP.**

**CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)**

**DECEMBER 31, 2025 (UNAUDITED)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Shares** <br>**Amount** | <br>**Security** <br>**(Affiliated Investments)** | <br>**Acquisition Date** |<br><br>**Realized**<br>**Gain/(Loss)**<br>**for the Three**<br>**Months Ended**<br>**December 31, 2025** | **Net Increase or**<br>**(Decrease) in**<br>**Unrealized**<br>**Appreciation**<br>**or Depreciation**<br>**for the Three**<br>**Months Ended**<br>**December 31, 2025** |<br><br>**Dividends or**<br>**Interest Income**<br>**for the Three**<br>**Months Ended**<br>**December 31, 2025** |<br><br><br><br>**Cost** |<br><br><br><br>**Fair Value** |<br><br><br><br>**% of Net Assets** |
|  | **Investments, at fair value - United States** |  |  |  |  |  |  |  |
|  | **Private Investments, at fair value - United States SPVs, at fair value (a), (b), (c), (d)** |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;**Aerospace and Artificial Intelligence (AI)** |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FDVC Growth A-1, LLC (economic exposure to Mercor.io Corporation (d/b/a Mercor) and Space Exploration Technologies Corp.) | 5/7/2025 | $- | $19717053 | $- | $43500000 | $63511177 | 13.36% |
|  | &nbsp;&nbsp;&nbsp;**Aerospace and Software** |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ODMD, LLC (economic exposure to Databricks, Inc. and Space Exploration Technologies Corp.) | 2/24/2025 |  | 17047252 |  | 18550200 | 36627415 | 7.70% |
|  | &nbsp;&nbsp;&nbsp;**Artificial Intelligence (AI)** |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brantling Holdings, LLC (economic exposure to Databricks, Inc. and X.AI Holdings Corp.) | 1/16/2025 |  | 12589006 |  | 15976537 | 31548655 | 6.64% |
|  | &nbsp;&nbsp;&nbsp;**Enterprise Software** |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PLRP Capital, LP - Investment Class 2 (economic exposure to People Center, Inc. (d/b/a Rippling)) | 8/13/2025 |  |  |  | 4968400 | 4967872 | 1.05% |
|  | &nbsp;&nbsp;&nbsp;**Human Resources Technology** |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sethi Capital z3, LLC (economic exposure to Deel, Inc.) | 11/17/2025 |  | (225000) |  | 5225000 | 5000000 | 1.05% |
|  | &nbsp;&nbsp;&nbsp;**Prediction Market Industry** |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sethi Capital z4, LLC - Class 1A | 12/12/2025 |  | (225000) |  | 7749750 | 7524750 | 1.58% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sethi Capital z4, LLC - Class 1C (economic exposure to Kalshi Inc.) | 12/12/2025 | - | (225000) | - | 7749750 | 7524750 | 1.58% |
|  |  |  | - | (450000) | - | 15499500 | 15049500 | 3.16% |
|  | &nbsp;&nbsp;&nbsp;**Prediction Market Industry and Software** |  |  |  |  |  |  |  |
|  | Windom Ventures, LLC (economic exposure to Databricks, Inc. and Kalshi Inc.) | 12/4/2025 |  | (54167) |  | 13324760 | 13270593 | 2.79% |
|  | &nbsp;&nbsp;&nbsp;**Software** |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Horizon Strategic Partners, LP - Series Canva 1 (economic exposure to Canva, Inc.) | 6/24/2025 |  | (28882) |  | 6782818 | 6626666 | 1.39% |
|  | **Total SPVs, at fair value 37.14%** |  | - | 48595262 | - | 123827215 | 176601878 | 37.14% |
|  | **Total Private Investments, at fair value - United States 37.14%** |  | - | 48595262 | - | 123827215 | 176601878 | 37.14% |
|  | **Total Affiliated Investments, at fair value - United States 37.14%** |  | $- | $48595262 | $- | 123827215 | $176601878 | 37.14% |

---

(a) Non-income producing security.

(b) Restricted securities as to resale. (See Note 2)

(c) These special purpose vehicles ("SPVs") are private investment
vehicles that (i) are formed to invest in a particular portfolio company and (ii) are exempt from registration under the Investment Company
Act pursuant to Section 3(c)(7) of the Investment Company Act. By making a direct investment in these SPVs, Powerlaw Corp. owns a direct
ownership interest in these SPVs and an indirect ownership interest in the underlying portfolio company.

(d) Affiliated SPV

LLC - Limited Liability Company

LP - Limited Partnership

*See Notes to Consolidated Financial Statements.*

**POWERLAW CORP.**

**CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)**

**DECEMBER 31, 2025 (UNAUDITED)**

As of December 31, 2025, the Fund's investments by type are as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Type** | **Cost at**<br>**December 31,<br> 2025** | **Fair Value at**<br>**December 31,<br> 2025** |<br>**Percentage of<br> Net Assets** |
| SPVs | $268786063 | $337182477 | 70.91% |
| Short term government debt | 50097415 | 50108205 | 10.54% |
| Common stock | 37069018 | 39054981 | 8.22% |
| Preferred stock | 44003034 | 43400032 | 9.13% |
| Forward agreements | 3984674 | 3812071 | 0.80% |
| Money market | 1018915 | 1018915 | 0.21% |
| Promissory notes | 961715 | 961715 | 0.20% |
| Call right agreements | 32160 | 1500 | 0.00% |
|  | $405952994 | $475539896 | 100.01% |

---

As of December 31, 2025, the Fund's investments by industry are as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Industry** | **Cost at**<br>**December 31,<br> 2025** | **Fair Value at**<br>**December 31,<br> 2025** |<br>**Percentage of <br> Net Assets** |
| Artificial intelligence (AI) | $166804367 | $197990860 | 41.64% |
| Aerospace and artificial intelligence (AI) | 43500000 | 63511177 | 13.36% |
| U.S. treasury bills | 50097415 | 50108205 | 10.54% |
| Financial technology | 35896106 | 36750825 | 7.73% |
| Aerospace and software | 18550200 | 36627415 | 7.70% |
| Biotechnology and genetic engineering | 19999989 | 19999989 | 4.21% |
| Human resources technology | 20224975 | 19999975 | 4.21% |
| Prediction market industry | 15499500 | 15049500 | 3.16% |
| Prediction market industry and software | 13324760 | 13270593 | 2.79% |
| Software | 8846818 | 9037031 | 1.90% |
| Defense products | 6861549 | 6847539 | 1.44% |
| Enterprise software | 4968400 | 4967872 | 1.05% |
| Money market | 1018915 | 1018915 | 0.21% |
| Mobility technology | 360000 | 360000 | 0.07% |
|  | $405952994 | $475539896 | 100.01% |

---

*See Notes to Consolidated Financial Statements.*

**POWERLAW CORP.**

**CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES**

**DECEMBER 31, 2025 (UNAUDITED)**

---

| | |
|:---|:---|
| **ASSETS:** | |
| &nbsp;&nbsp;&nbsp;Non-affiliated investments, at fair value (Cost $282,125,779) | $298938018 |
| &nbsp;&nbsp;&nbsp;Affiliated investments, at fair value (Cost $123,827,215) | 176601878 |
| &nbsp;&nbsp;&nbsp;Cash | 19800001 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | 646177 |
| &nbsp;&nbsp;&nbsp;Deferred loan origination fees | 215997 |
| &nbsp;&nbsp;&nbsp;Interest receivable | 37267 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 10831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | 496250169 |
| **LIABILITIES:** |  |
| &nbsp;&nbsp;&nbsp;Line of credit payable | 20000000 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and accounts payable | 510376 |
| &nbsp;&nbsp;&nbsp;Due to Adviser | 245174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 20755550 |
| **NET ASSETS** | $475494619 |
| **COMMITMENTS AND CONTINGENCIES (Note 10)** |  |
| **COMPOSITION OF NET ASSETS** |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value, 950,000,000 shares authorized 43,242,931 shares issued and outstanding | $43243 |
| &nbsp;&nbsp;&nbsp;Additional paid-in-capital | 406643552 |
| &nbsp;&nbsp;&nbsp;Total accumulated earnings and profits | 68807824 |
| **NET ASSETS** | $475494619 |
| Shares of common stock, $0.001 par value, 950,000,000 shares authorized 43,242,931 shares issued and outstanding | 43242931 |
| **NET ASSET VALUE PER SHARE** | $11.00 |

---

*See Notes to Consolidated Financial Statements.*

**POWERLAW CORP.**

**CONSOLIDATED STATEMENT OF OPERATIONS**

**FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 (UNAUDITED)**

---

| | |
|:---|:---|
| **INVESTMENT INCOME:** | |
| &nbsp;&nbsp;&nbsp;Interest income - non affiliated investments | $803183 |
| &nbsp;&nbsp;&nbsp;Dividend income - non affiliated investments | 27007 |
| &nbsp;&nbsp;&nbsp;Bank deposit interest | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment income | 830303 |
| **EXPENSES:** |  |
| &nbsp;&nbsp;&nbsp;Broken deal costs | 750000 |
| &nbsp;&nbsp;&nbsp;Audit fees | 519000 |
| &nbsp;&nbsp;&nbsp;Marketing fees | 360043 |
| &nbsp;&nbsp;&nbsp;Professional fees | 243318 |
| &nbsp;&nbsp;&nbsp;Fund administration | 230259 |
| &nbsp;&nbsp;&nbsp;Placement agent fees | 190454 |
| &nbsp;&nbsp;&nbsp;Legal fees | 127902 |
| &nbsp;&nbsp;&nbsp;Interest expense | 4247 |
| &nbsp;&nbsp;&nbsp;Other expenses | 92431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 2517654 |
| **NET INVESTMENT LOSS BEFORE INCOME TAXES** | (1687351) |
| &nbsp;&nbsp;&nbsp;Tax expense | 360714 |
| **NET INVESTMENT LOSS AFTER INCOME TAXES** | (2048065) |
| &nbsp;&nbsp;&nbsp;NET REALIZED GAIN AND NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS |  |
| &nbsp;&nbsp;&nbsp;Net realized gain from non-affiliated investments | 42335 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on affiliated investments | 48595262 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on non-affiliated investments | 11846374 |
| &nbsp;&nbsp;&nbsp;Tax benefit related to unrealized appreciation on investments | 2728948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on investments | 63170584 |
| &nbsp;&nbsp;&nbsp;**NET REALIZED GAIN AND NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS** | 63212919 |
| **NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS** | $61164854 |

---

*See Notes to Consolidated Financial Statements.*

**POWERLAW CORP.**

**CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS**

**FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 (UNAUDITED)**

---

| | |
|:---|:---|
| **OPERATIONS:** | |
| Net investment loss after income taxes | $(2048065) |
| Net realized gain on investments | 42335 |
| Net change in unrealized appreciation on investments | 63170584 |
| Net increase in net assets resulting from operations | 61164854 |
| Net increase in net assets | 61164854 |
| Net assets, beginning of period | 414329765 |
| Net assets, end of period | $475494619 |
| **SHARES OF COMMON STOCK:** |  |
| Beginning balance | 518914712 |
| Reduction of common shares resulting from 12:1 reverse stock split | (475671781) |
| Ending balance | 43242931 |

---

*See Notes to Consolidated Financial Statements.*

**POWERLAW CORP.**

**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS**

**FOR THE PERIOD JANUARY 15, 2025 (COMMENCEMENT OF OPERATIONS) THROUGH SEPTEMBER 30, 2025**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** |
|  |<br>**Organizer<br> Units** |<br>**Advisor<br> Units** |<br>**Class A<br> Units** |<br>**Class B<br> Units** |<br>**Class B <br> Feeder Units** |<br>**Common<br> Stock** |<br>**Additional<br> Paid-in-Capital** | **Total**<br>**Accumulated**<br>**Earnings<br> Profits** |<br>**Total** |
| PowerLaw10, LLC's members' equity, January 15, 2025 | $&nbsp;&nbsp;&nbsp;&nbsp; - | $- | $- | $- | $- | $- | $- | $- | $- |
| &nbsp;&nbsp;&nbsp;Capital contributions - cash |  |  | 50000000 | 251099000 | 107301000 |  |  |  | 408400000 |
| &nbsp;&nbsp;&nbsp;Capital contributions - grants (Note 6) |  | 3573898 |  |  |  |  |  |  | 3573898 |
| &nbsp;&nbsp;&nbsp;Syndication costs |  |  | (95356) | (479031) | (204691) |  |  |  | (779078) |
| &nbsp;&nbsp;&nbsp;Net investment loss |  |  | (417864) | (2098806) | (896852) |  |  |  | (3413522) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on investments | - | - | 1137435 | 5712084 | 2440926 | - | - | - | 9290445 |
| &nbsp;&nbsp;&nbsp;PowerLaw10, LLC's members' equity, September 5, 2025 pre-conversion | - | 3573898 | 50624215 | 254233247 | 108640383 | - | - | - | 417071743 |
| &nbsp;&nbsp;&nbsp;Recognition of conversion of members' equity to common stock |  | (3573898) | (50624215) | (254233247) | (108640383) | 51891 | 411922007 | 5097845 |  |
| &nbsp;&nbsp;&nbsp;Net investment income |  |  |  |  |  |  |  | 149528 | 149528 |
| &nbsp;&nbsp;&nbsp;Net realized loss from investments |  |  |  |  |  |  |  | (17379) | (17379) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on investments | - | - | - | - | - | - | - | (2874127) | (2874127) |
| Total increase in net assets | $- | $- | $- | $- | $- | $51891 | $411922007 | $2355867 | $414329765 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **In Units and Shares** | **In Units and Shares** | **In Units and Shares** | **In Units and Shares** | **In Units and Shares** | **In Units and Shares** | **In Units and Shares** | **In Units and Shares** | **In Units and Shares** |
|  |<br>**Organizer<br> Units** |<br>**Advisor<br> Units** |<br>**Class A<br> Units** |<br>**Class B<br> Units** |<br>**Class B <br> Feeder Units** |<br>**Common<br> Stock** |<br>**Additional<br> Paid-in-Capital** | **Total**<br>**Accumulated**<br>**Earnings<br> Profits** |<br>**Total** |
| Transactions in units: |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; - |  |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of units | 19142756 | 27462116 | 50000000 | 251099000 | 107301000 | - |  |  | 455004872 |
| &nbsp;&nbsp;&nbsp;PowerLaw10, LLC's units, September 5, 2025 pre-conversion | 19142756 | 27462116 | 50000000 | 251099000 | 107301000 | - |  |  | 455004872 |
| &nbsp;&nbsp;&nbsp;Cancelation of units being converted into common stock | (19142756) | (27462116) | (50000000) | (251099000) | (107301000) |  |  |  | (455004872) |
| &nbsp;&nbsp;&nbsp;Recognition of conversion of units into common stock | - | - | - | - | - | 518914712 |  |  | 518914712 |
| Shares outstanding at September 30, 2025 | - | - | - | - | - | 518914712 |  |  | 518914712 |

---

*See accompanying notes to financial statements.* 

**POWERLAW CORP.**

**CONSOLIDATED STATEMENT OF CASH FLOWS**

**FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 (UNAUDITED)**

---

| | |
|:---|:---|
| **CASH FLOWS FROM OPERATING ACTIVITIES:** | |
| &nbsp;&nbsp;&nbsp;Net increase in net assets resulting from operations | $61164854 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net increase in net income to net cash used in operating activities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain from investments | (42335) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on affiliated investments | (48595262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on non-affiliated investments | (11846374) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of discount on U.S. treasury bills | (418446) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of investments | 245374997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments | (313758415) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in receivable for unsettled purchases | 70362509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in interest receivable | 51172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in prepaid expenses | 35353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accrued expenses and accounts payable | (1953) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in due to Adviser | 216868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in due to investment | (18400) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in net deferred tax liabilities | (2368234) |
| &nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 156334 |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowing on line of credit | 20000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred offering costs | (404290) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred loan origination fees | (215997) |
| &nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 19379713 |
| Net increase in cash | 19536047 |
| Cash, beginning balance | 263954 |
| Cash, ending balance | $19800001 |

---

*See accompanying notes to financial statements.* 

**POWERLAW CORP.**

**FINANCIAL HIGHLIGHTS**

**FOR THE PERIOD JANUARY 15, 2025 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 2025 (UNAUDITED)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **FOR THE PERIOD JANUARY 15, 2025 <br> (COMMENCEMENT OF OPERATIONS) <br> THROUGH SEPTEMBER 5, 2025 (a)** | **FOR THE PERIOD JANUARY 15, 2025 <br> (COMMENCEMENT OF OPERATIONS) <br> THROUGH SEPTEMBER 5, 2025 (a)** | **FOR THE PERIOD JANUARY 15, 2025 <br> (COMMENCEMENT OF OPERATIONS) <br> THROUGH SEPTEMBER 5, 2025 (a)** | **FOR THE PERIOD <br> SEPTEMBER 5, 2025 (POST <br> CONVERSION)<br> THROUGH<br> SEPTEMBER 30, 2025** | **FOR THE THREE <br> MONTHS ENDING <br> DECEMBER 31, 2025** |
|  | <br>**Class A**<br>**Units** | <br>**Class B**<br>**Units** | **Class B**<br>**Feeder**<br>**Units** | <br>**Common Stock** | <br>**Common Stock** |
| Net asset value, beginning of period | $- | $- | $- | $0.80 | $0.80 |
| &nbsp;&nbsp;&nbsp;Net asset value of contributions | 1.00 | 1.00 | 1.00 |  |  |
| &nbsp;&nbsp;&nbsp;Syndication costs |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) after income taxes | (0.01) | (0.01) | (0.01) | 0.01 | (0.05) |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on investments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on investments | 0.02 | 0.02 | 0.02 | (0.01 | 1.46 |
| &nbsp;&nbsp;&nbsp;Net increase in net asset value from operations | 0.01 | 0.01 | 0.01 | - | 1.41 |
| &nbsp;&nbsp;&nbsp;Net asset value, September 5, 2025 pre-conversion | 1.01 | 1.01 | 1.01 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;Recognition of conversion of members' equity to common stock | (0.21) | (0.21) | (0.21) | N/A | N/A |
| &nbsp;&nbsp;&nbsp;Recognition of 12:1 reverse stock split on December 23, 2025 | N/A | N/A | N/A | N/A | 8.79 |
| Net asset value, end of period | $0.80 | $0.80 | $0.80 | $0.80 | $11.00 |
| **IRR** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;IRR, September 5, 2025 preconversion (b) | 2.34% | 10.71% | 5.54% | N/A | N/A |
| **Total Return** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total return on net asset value | N/A | N/A | N/A | (0.66) | 14.76 |
| **Ratios/Supplemental Data (annualized except for organization and broken deal costs)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses | 2.15 %(c) | 9.24 %(c) | 2.89 %(c) | 1.49 | 1.76 |
| &nbsp;&nbsp;&nbsp;Tax expense (benefit) | 0.00% | 0.00% | 0.00% | (0.09 | 0.08 |
| &nbsp;&nbsp;&nbsp;Expenses after tax benefit | 2.15% | 9.24% | 2.89% | 1.40 | 1.84 |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | (1.60)%(c) | (6.87)%(c) | (2.15)%(c) | 0.53 | (1.09) |
| Portfolio turnover rate | N/A | N/A | N/A | 39.69 | 61.83 |

---

(a) The
Fund is required to disclose the financial highlights. Prior to the Fund converting to a Maryland corporation on September 5, 2025 the
Fund's financial highlights are for the common interest in PowerLaw10, LLC (i.e., the members' interest - comprising of Class
A Units, Class B Units, and Class B Feeder Units). These financial highlights consist of operating expenses and net investment loss ratios
for the period from January 15, 2025 (commencement of operations) to September 5, 2025 and the Internal Rate of Return (IRR) commencement
of operations of PowerLaw10, LLC, net of all fees and profit allocations to the Adviser through September 5, 2025. An individual investor's
ratio may vary from those ratios.

(b) IRR
was computed since commencement of operations based on the due date of capital contributions, outflows and PowerLaw10, LLC's ending
members' equity as of September 5, 2025 pre-conversion.

(c) Net
investment loss is the members' share of interest income and other income earned, net of expenses. Expenses include the members'
share of expenses. The ratios above are computed based upon the aggregate quarterly weighted average partners' capital of PowerLaw10,
LLC for the period from January 15, 2025 (commencement of operations) to September 5, 2025.

(d) Based
on average shares outstanding.

(e) Net
investment income after income taxes includes a tax benefit of less than $0.01 per share.

(f) Net
change in unrealized appreciation on investments includes deferred tax expense related to unrealized appreciation on investments of $(0.01)
per share.

(g) Total
investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges
or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the
deduction of taxes that a shareholder would pay on the fund distributions or the redemption of fund shares. Total investment return calculated
for a period less than one year is not annualized.

(h) The
net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States
of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from
the financial statements.

(i) Based
on average shares outstanding inclusive of the December 23, 2025 12:1 reverse stock split.

(j) Net
investment income after income taxes includes a tax expense of $0.01 per share.

(k) Net
change in unrealized appreciation on investments includes tax expenses related to unrealized appreciation on investments of $0.06 per
share.

*See Notes to Consolidated Financial Statements.*

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 1 – ORGANIZATION**

Powerlaw Corp. (the "Fund") is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Fund was organized on September 9, 2024 and commenced operations on January 15, 2025, as PowerLaw10, LLC, a Delaware limited liability company. Effective September 5, 2025 the Fund converted to a Maryland corporation and intends to be treated, and to qualify annually, as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended, beginning with taxable year ended September 30, 2026.

The Fund has applied to list its common stock on the Nasdaq Global Market (the "Exchange") under the symbol PWRL. The listing of its shares must be approved by the Exchange prior to any trading of shares on the Exchange.

The Fund's investment objective is long-term capital appreciation. It seeks to achieve its investment objective by primarily investing in the equity and equity-linked securities of a concentrated portfolio of approximately 15 late-stage technology companies. Akkadian CEF Manager, LLC, (the "Adviser") serves as the Fund's investment adviser and manages its investments subject to the supervision of the Fund's Board of Directors.

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES**

The following is a summary of the significant accounting policies utilized by the Fund in the preparation of its consolidated financial statements. All amounts are presented in U.S. dollars. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Fund qualifies as an investment company and, accordingly, applies the accounting and reporting requirements prescribed under the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946, *Financial Services — Investment Companies*.

**Principles of Consolidation** – The Fund consolidates variable interest entities (VIEs) for which it is the primary beneficiary, generally as a result of having the power to direct the activities that most significantly affect the VIE's economic performance and holding variable interests that convey to the Fund the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Fund consolidates entities that are not VIEs when it has a controlling financial interest as a result of majority voting control. The Fund is precluded from consolidating entities that are not investment companies when it is required to measure those entities at fair value in accordance with ASC Topic 946.

The accompanying consolidated financial statements include the accounts of the Fund and its wholly owned and controlled subsidiaries, PowerLaw10, LP a Delaware limited partnership, Syon Capital GQ, LP a Delaware limited partnership, Tarchia Ventures, LLC a Delaware limited liability company, Tivoli Holdings, LLC a Delaware limited liability company, and Verbal Ventures, LP a Delaware limited partnership, which are not VIEs. Consolidation of these subsidiaries is based on the voting interest model, as the Fund controls these subsidiaries through greater than 50% voting ownership. PowerLaw10, LP, Syon Capital GQ, LP, Tarchia Ventures, LLC, Tivoli Holdings, LLC, and Verbal Ventures, LP are investment companies established for the general purpose of executing specific investment transactions on behalf of the Fund. All significant intercompany accounts and transactions have been eliminated in the accompanying consolidated financial statements. As of December 31, 2025, the Fund does not hold variable interests in any VIEs for which it is the primary beneficiary.

**Use of Estimates** – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income, and expenses. Actual results could differ from such estimates due to inherent uncertainty in the estimation process.

**Calculation of Net Asset Value –** The Fund, as a registered investment company, will calculate its net asset value ("NAV") as of the close of each quarterly period. NAV is calculated by dividing the value of the Fund's total assets less its liabilities by the number of shares outstanding. The initial NAV was calculated as of September 5, 2025, the date the Fund converted to a Maryland corporation.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)**

**Cash** – The Fund considers its investments in Federal Deposit Insurance Corporation ("FDIC") insured interest bearing accounts to be cash. Cash is valued at face value. The Fund maintains cash balances, which at times may exceed federally insured limits. The Fund maintains these balances with major financial institutions.

**Receivable for Unsettled Purchases** – The Fund considers investments that were not fully consummated to be receivable for unsettled purchases on the consolidated statement of assets and liabilities.

**Broken Deal Costs** – The Fund considers costs incurred when a potential investment falls through, covering breakup fees to be broken deal costs on the consolidated statement of operations.

**Investment Transactions and Income Recognition –** Investment transactions are accounted for on trade date basis. The Fund realizes gains or losses when securities, other than investments in special purpose vehicles, held by the Fund, are sold or distributed. Realized gains or losses are determined using the specific identification method. The Fund realizes gains or losses from investments in special purpose vehicles when realized gains or losses are recognized by the special purpose vehicles though a distribution to the Fund. The Fund also realizes losses on investments that are deemed worthless. Net change in unrealized appreciation or depreciation on investments represents the change between cost and fair value and is reported as a separate component in the consolidated statement of operations.

**Income and Expenses** – Interest income is recognized on an accrual basis as it is earned. Dividend income is recorded on the ex-dividend date. Expenses other than offering costs are recognized on an accrual basis as they are incurred.

At the discretion of the Adviser, upon exercise of the Fund's call right, accrued interest income could be received in cash or added to the return threshold used to calculate any profit share that may be owed to the borrower by the Fund upon any future disposition of the shares purchased pursuant to the call right.

**Segment Information** – The Fund operates through a single operating and reporting segment. The Fund's chief operating decision maker ("CODM") is its President (Principal Executive Officer) Peter Smith. Mr. Smith reviews the financial information by way of the Fund's portfolio composition (consolidated schedule of investments), total returns, expense ratios and changes in net assets (i.e. changes in net assets resulting from operations, subscriptions and redemptions), which are used by the CODM to assess performance versus the Fund's comparative benchmarks to make resource allocation decisions for the Fund. The financial information is consistent with that presented within the Fund's accompanying financial statements.

**Valuation of Investments –** The Fund records its investments at fair value. The Fund's fair valuation framework incorporates the requirements of Rule 2a-5 under the 1940 Act together with the principles established in ASC Topic 820, *Fair Value Measurement* ("ASC 820"), issued by the FASB. Rule 2a-5 governs valuation practices for registered investment companies and clarifies the Board's oversight responsibilities in the valuation process. Pursuant to Rule 2a-5, the Board has designated the Adviser as the "Valuation Designee" to perform fair value determinations.

In accordance with U.S. GAAP, fair value is defined as the price that would be received by selling an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date.

In determining fair value, the Fund uses various valuation approaches. The Fund values certain portfolio investments at fair value using the market approach. Under the market approach, fair value is measured based on quoted market prices or other relevant information generated by market transactions involving identical or comparable assets. This approach is applied for investments that have observable market data and is considered the most reliable indicator of fair value when comparable transactions are available.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)**

The Fund classifies these investments within Level 1, Level 2, or Level 3 of the fair value hierarchy, depending on the observability of the inputs used in the valuation. In accordance with U.S. GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:

These inputs are categorized as follows:

Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund can access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable from independent sources, either directly or indirectly.

Level 3 – Valuations based on inputs that are unobservable and that are significant to the overall fair value measurement.

The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including, the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy under which the fair value measurement falls, is determined based on the lowest level input that is significant to the fair value measurement.

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Fund's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Fund uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy.

Investments include privately structured investment vehicles established for the purpose of investing in a specified portfolio company, which operate pursuant to exemptions from registration under the 1940 Act in reliance on Section 3(c)(1) or Section 3(c)(7) (collectively, "special purpose vehicles" or "SPVs"). Such investments are recognized on the closing date, defined as the date on which the Fund commits to purchase or dispose of the securities. The consolidated schedule of investments in these consolidated financial statements reflect the name of the SPV in which each investment was made, along with the primary economic exposure parenthetically.

The Fund's investments in privately held securities consist of common and preferred stock, forward agreements to purchase common stock or membership units, SPVs, promissory notes and call right agreements. The transaction price, excluding transaction costs, is typically the Fund's best estimate of fair value at inception. When evidence supports a change to the carrying value from the transaction price, adjustments are made to reflect expected exit values. Ongoing reviews are based on an assessment of each underlying investment, incorporating valuations that consider the financial condition and operating results of the private company, the price of subsequent rounds of financing, valuation metrics and performance multiples of comparable publicly traded companies and precedent merger and acquisition transactions (which closely mirror the investment's business, scale, operating, and market acceptance), and the private company capital structure, among other factors.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)**

The Fund's investments in promissory notes are converted to equity securities through exercise of a call right agreement prior to their maturity date. Generally, the stated value of these notes approximates fair value. The Fund may consider other factors to estimate fair value, including proceeds that would be received in a liquidation analysis.

The Fund acquires forward agreements through secondary transactions, where it may lack a direct contractual relationship with the counterparty, as well as the ability to enforce rights against or obtain identifying or contact information for such counterparty. In these cases, the Fund does not hold a direct beneficial interest in the underlying securities of the portfolio company but must instead rely on a third party to collect, enforce, and settle rights relating thereto. There is no assurance that such third party will act effectively or successfully in fulfilling these responsibilities.

As a practical expedient, investments in SPVs are valued per the reported net asset value (NAV) as reported by the corresponding SPV's managers. Adjustments to such NAV would be considered if (a) such NAV was not as of the applicable SPV's measurement date; (b) it was probable that the applicable SPV would be sold at a value materially different from such NAV; or (c) it was determined in accordance with the Fund's valuation procedures that the applicable investment company is not being reported at fair value. The Fund may invest in closed-end limited partnerships and limited liability companies with a finite life.

**Income Taxes** –The Fund intends to be treated, and to qualify annually, as a RIC for U.S. federal income tax purposes. In such capacity, the Fund generally is not subject to U.S. federal corporate income tax, provided it distributes all of its net taxable income and realized capital gains each taxable year.

The Fund has adopted a tax year ending September 30<sup>th</sup>.

The Fund did not elect RIC treatment prior to September 30, 2025, as it operated in a private capacity initially and was, therefore, ineligible to make the election for the period from January 15, 2025 (commencement of operations) through September 30, 2025. The Fund will first elect RIC status in its federal income tax return for the taxable year ended September 30, 2026. For the period from September 5, 2025 through September 30, 2025, the Fund was a corporation for U.S. tax purposes.

Prior to converting to a Maryland Corporation on September 5, 2025, the Fund was a partnership for U.S. tax purposes. The Fund did not record a provision for U.S. federal, state, or local income taxes because the partners report their share of the Partnership's income or loss on their income tax returns. However, certain U.S. dividend and interest income may be subject to a maximum 30% withholding tax for limited partners that are foreign entities or foreign individuals. Further, certain non-U.S. dividend and interest income may be subject to a tax at prevailing treaty or standard withholding rates with the applicable country or local jurisdiction. The Partnership files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states for 2025 and 2024. 2025 is the final tax year that the Fund will file these partnership tax returns.

The Fund accounts for income taxes under the liability method; under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings.

The Fund utilizes a two-step approach to recognize and measure uncertain tax positions. 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 upon tax authority examination, 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.

**Offering Costs** – The Fund incurred costs in connection with listing on the Exchange and United States Securities and Exchange Commission ("SEC") Form N-2. $646,177 of costs were recorded as a deferred charge and will be charged to capital when the Fund is declared effective. There were $404,290 and $241,887 of deferred offering costs accrued for the three months ended December 31, 2025 and during the period from January 15, 2025 (commencement of operations) through September 30, 2025, respectively, recognized as deferred offering costs on the consolidated statement of assets and liabilities.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)**

**Syndication Costs** – Syndication costs represent costs incurred in connection with the syndication of membership interests. These costs are reflected as a direct reduction of members' equity. For the period from January 15, 2025 (commencement of operations) through September 30, 2025, the Fund incurred $779,078 of syndication costs on the consolidated statement of changes in net assets.

**Restricted securities** – Restricted securities are securities of privately held issuers that may only be resold pursuant to registration under applicable federal securities laws or through transactions exempt from such registration requirements. In certain instances, the issuer of restricted securities may agree, at its own expense, to register such securities for resale, either upon demand by the Fund or in connection with another registered offering.

Many restricted securities may nonetheless be resold in secondary market transactions conducted pursuant to available exemptions from registration. Restricted securities are valued either at prices provided by secondary market dealers or, where no such market quotations are available, at fair value determined in good faith in accordance with methodologies approved by the Adviser. As of February 9, 2026, there is no expected date for such restrictions to be removed from any of the Fund's restricted securities.

**Risks and Uncertainties** – All investments are subject to certain risks. Changes in overall market movements, interest rates, or factors affecting a particular industry, can affect the ultimate value of the Fund's investments. Investments are subject to a number of risks, including the risks that values will fluctuate as a result of changes in expectations for the economy and individual investors.

*Liquidity and Valuation Risk* – Liquidity risk is the risk that securities may be difficult or impossible to sell at the time the Adviser would like or at the price it believes the security is currently worth. Liquidity risk may be increased for certain Fund investments, including those investments in funds with gating provisions or other limitations on investor withdrawals and restricted or illiquid securities. Some SPVs in which the Fund invests may impose restrictions on when an investor may withdraw its investment or limit the amount an investor may withdraw. To the extent that the Adviser seeks to reduce or sell out of a Fund investment at a time or at an amount that is prohibited, the Fund may not have the liquidity necessary to participate in other investment opportunities or may need to sell other investments that it may not have otherwise sold.

A substantial portion of the Fund's investments are illiquid, as determined by using the SEC standard applicable to registered investment companies (i.e., securities that cannot be disposed of by the Fund within seven calendar days in the ordinary course of business at approximately the amount at which the Fund has valued the securities). Illiquid and restricted securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market price of illiquid and restricted securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of such securities. Investment of the Fund's assets in illiquid and restricted securities may also restrict the Fund's ability to take advantage of market opportunities.

Valuation risk is the risk that one or more of the securities in which the Fund invests are priced differently than the value realized upon such security's sale. In times of market instability, valuation may be more difficult, in which case the Adviser's judgment may play a greater role in the valuation process.

*Concentration Risk* – Many of the Fund's investments will be in U.S. private companies in the technology sector and therefore will be particularly exposed to the risks attendant to investments in that sector. Investors generally have no assurance as to the degree of diversification of the Fund's investments, either by geographic region, asset type or sector. Accordingly, a significant portion of the Fund's investments may be made in relatively few geographic regions, asset types, security types or industry sectors. For example, as of December 31, 2025, approximately 41.64% of the Fund's investment portfolio is invested in private technology companies in the artificial intelligence industry. Any such concentration of risk may increase losses suffered by the Fund, which could have a material adverse effect on the Fund's overall financial condition.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)**

*General SPV Risks* – The Fund's investments in SPVs will typically require us to bear a pro rata share of the vehicles' expenses, including operating and offering related costs, which could result in higher expenses than if the Fund invested in the underlying portfolio company directly. Because SPVs are generally organized by managers unaffiliated with the Fund or the Adviser, the Fund will typically be one of many investors in the SPV. In purchasing an SPV interest, the Fund entrusts all aspects of the management of the SPV to its manager. SPVs are generally organized as limited liability companies, and to the extent an SPV is organized as a Delaware Series LLC, the Fund would be subject to the risks inherent in investing in a Delaware Series LLC. Some SPVs in which the Fund invest may impose restrictions on when investors may withdraw their investment or limit the amounts investors may withdraw. To the extent the Fund seeks to reduce or sell an investment at a time or in an amount that is prohibited, the Fund may not have the liquidity necessary to participate in other investment opportunities or may need to sell other investments that it may not have otherwise sold. Additionally, SPVs are not publicly traded and therefore may not be as liquid as other types of investments. Further, the fair value of investments in SPVs may differ from the value of the underlying securities were the Fund to hold such securities directly. Finally, as investors in an SPV, the Fund owns interests in the SPV and has no ownership rights to the underlying securities. These characteristics present additional risks for stockholders. Individual SPVs that the Fund invests in may have different terms and structures, which may present unique risks and result in different fee levels.

*Counterparty Risk* – The Fund is exposed to counterparty risk from the potential failure of a holder of a portfolio company's securities to perform in accordance with the agreed upon terms of the investment arrangement, including for the Fund's investments in forwards, call rights, and loans. The maximum risk of loss from counterparty risk to the Fund is the fair value of the contracts. The Fund considers the effects of counterparty risk when determining the fair value of each investment.

*Market Disruption and Geopolitical Risk* - The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. War, terrorism, and related geopolitical events (and their aftermath) have led, and in the future may lead, to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. Likewise, natural, and environmental disasters, such as, for example, earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, as well as the spread of infectious illness or other public health issues, including widespread epidemics or pandemics, and systemic market dislocations can be highly disruptive to economies and markets. Those events as well as other changes in non-U.S. and domestic economic and political conditions also could adversely affect individual issuers or related groups of issuers, securities markets, interest rates, credit ratings, inflation, investor sentiment, and other factors affecting the value of Fund investments.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 3 – FAIR VALUE MEASUREMENTS**

As of December 31, 2025, the Fund's investments were categorized as follows in the fair value hierarchy, as described in Note 2:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Investments, at Value Measurement Using** | **Investments, at Value Measurement Using** | **Investments, at Value Measurement Using** | **Investments, at Value Measurement Using** |
| <br>**Type (a)** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Short term government debt | $50108205 | $- | $- | $50108205 |
| Common stock | 2410365 |  | 36644616 | 39054981 |
| SPVs |  |  | 24487944 | 24487944 |
| Preferred stock |  |  | 43400032 | 43400032 |
| Forward agreements |  |  | 3812071 | 3812071 |
| Money market | 1018915 |  |  | 1018915 |
| Promissory notes |  |  | 961715 | 961715 |
| Call right agreements | - | - | 1500 | 1500 |
| &nbsp;&nbsp;&nbsp;Investments at value | $53537485 | $- | $109307878 | $162845363 |
| Investments measured at NAV (b) |  |  |  | 312694533 |
| &nbsp;&nbsp;&nbsp;Investments |  |  |  | $475539896 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For detailed descriptions and other security classifications, see the accompanying consolidated schedule
of investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In accordance with ASC 820, certain investments
that were measured at NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.
The Fund has made commitments to investments measured at NAV. As of December 31, 2025 the balance of unfunded commitments is zero.

The Fund assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the last day of the reporting period in accordance with the Fund's accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. The following table presents changes in assets classified in Level 3 of the fair value hierarchy for the three months ended December 31, 2025 attributable to the following:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common<br> Stock** | **SPVs** | **Preferred<br> Stock** | **Forward <br> Agreements** | **Promissory<br> Notes** | **Call Right<br> Agreements** | **Total** |
| Balance as of September 30, 2025 | $34868439 | $14004310 | $10000035 | $3812071 | $961715 | $1500 | $63648070 |
| Purchases of investments |  |  | 34001999 |  |  |  | 34001999 |
| Net change in unrealized appreciation/(depreciation) on investments | 1776177 | 10483634 | (602002) |  |  |  | 11657809 |
| Transfer in (out) of Level 3<sup>1</sup> | - | - | - | - | - | - | - |
| Balance as of December 31, 2025 | $36644616 | $24487944 | $43400032 | $3812071 | $961715 | $1500 | $109307878 |
| Net change in unrealized appreciation/(depreciation) on investments for the period for the investments still held at December 31, 2025 | $1776177 | $10483634 | $(602002) | $- | $- | $- | $11657809 |

---

<sup>1</sup>During the three months ended December 31, 2025 there were no investment transfers in or out of Level 3.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 3 – FAIR VALUE MEASUREMENTS (Continued)**

The following table summarizes the quantitative inputs and assumptions used for investments classified as Level 3 of the fair value hierarchy as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Type** | **Fair Value at**<br>**December 31,**<br>**2025** | <br>**Valuation Technique** | <br>**Unobservable**<br>**Input** | <br>**Range of**<br>**Inputs** |
| Common stock | $19999989 | Market approach | Recent transaction price | n/a |
|  | 16644627 | Market approach | Recent round of funding | n/a |
| SPVs | 24487944 | Market approach | Recent round of funding | n/a |
| Preferred stock | 43400032 | Market approach | Recent transaction price | n/a |
| Forward agreements | 3812071 | Market approach | Recent transaction price | n/a |
| Promissory notes | 961715 | Market approach | Recent transaction price | n/a |
| Call right agreements | 1500 | Market approach | Recent transaction price | n/a |
|  | $109307878 |  |  |  |

---

Significant increases or decreases in any of the unobservable inputs in isolation may result in a significantly higher or lower fair value measurement.

**NOTE 4 – LINE OF CREDIT**

The Fund has a senior secured credit agreement (the "Credit Agreement") with Stifel Bank (the "Bank") entered into on December 31, 2025, which will expire on December 31, 2027. Subject to the terms of the Credit Agreement, the Fund may borrow up to an aggregate amount of $20,000,000. Interest accrues on principal drawn under the credit line, which is payable on each loan maturity date. The interest rate is Prime Rate, as of the date of funding (6.75% at December 31, 2025) plus 1.00%. The Fund will pay a 0.25% commitment fee on the maturity date equal to the difference between the average commitment amount and the average daily balance of the principal borrowed As of December 31, 2025, the Fund had $0 available to be borrowed, with $20,000,000 of outstanding borrowings under the line of credit. The Fund is subject to certain financial and non-financial covenants as stated in the Credit Agreement.

For the three months ended December 31, 2025, the Fund accrued $215,997 of line of credit fees as deferred loan origination fees of which $215,997 were closing fees and $0 were unused commitment fees. $15,997 of the line of credit fees were payable as of December 31, 2025 and are included in accrued expenses and accounts payable in the consolidated statement of assets and liabilities. For the three months ended December 31, 2025 the Fund accrued $4,247 in interest expense. No interest expense was paid during the three months ending December 2025.

**NOTE 5 – RELATED PARTY TRANSACTIONS, INVESTMENT ADVISORY AND OTHER AGREEMENTS**

The Fund entered into an investment advisory agreement with the Adviser (the "Investment Advisory Agreement"). Under the Investment Advisory Agreement, commencing upon the date that the registration statement is declared effective by the SEC, the Fund will pay the Adviser a management fee, payable quarterly, in the amount equal to 2.50% of the Fund's average total assets (which excludes cash and cash equivalents, but includes assets financed using leverage) as of the end of the two most recently completed quarters. Prior to the date Powerlaw Corp.'s registration with the SEC becomes effective, the Adviser will not charge a management fee.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 5 – RELATED PARTY TRANSACTIONS, INVESTMENT ADVISORY AND OTHER AGREEMENTS (Continued)**

In connection with certain investments by the Fund, the Fund invests via SPVs that do not have a redemption notice period, and some of these SPVs charge fees. For the three months ended December 31, 2025, such fees were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Special Purpose Vehicle** | **Management Fees<sup>(a)</sup>** | <br>**Incentive Fees<sup>(a)</sup>** | **Liquidity Restrictions** |
| AND III, a Series of FDVC Growth, LP (economic exposure to Anduril Industries, Inc.) | 10.00% | 20.00% | Note (b) |
| Altimeter Adirondack Fund I, L.P. (economic exposure to Anthropic, PBC) | 1.25% | 15.00% | Note (b) |
| Branting Holdings, LLC (economic exposure to Databricks, Inc. and X.AI Holdings Corp.) |  |  | Note (b) |
| Fifth Era Coinvestors, LLC (economic exposure to Payward, Inc. (d/b/a Kraken)) | 7.00% |  | Note (b) |
| FDVC Growth A-1, LLC (economic exposure to Mercor.io Corporation (d/b/a Mercor) Space Exploration Technologies Corp.) |  |  | Note (b) <br>Note (b) |
| HOF Capital AF Growth, LLC (economic exposure to Anthropic, PBC) |  |  | Note (b) |
| HII Perplexity Series II, a Series of Hii Perplexity, LLC (economic exposure to Perplexity AI, Inc.) |  |  | Note (b) |
| Horizon Strategic Partners, LP – Series Canva 1 (economic exposure to Canva, Inc.) | 6.33% |  | Note (b) |
| NDH Opportunity Funds LLC - Series 1 (economic exposure to OpenAI Group PBC) | 7.78% |  | Note (b) |
| ODMD, LLC (economic exposure to Databricks, Inc. and Space Exploration Technologies Corp.) |  |  | Note (b) |
| Paragon Avo II, A Series of Avo Technology Fund LP, LLC (economic exposure to OpenAI Group PBC) | 6.00% |  | &nbsp;&nbsp;&nbsp;&nbsp;Note (b) |
| PLRP Capital, LP – Investment Class 2 (economic exposure to People Center, Inc. (d/b/a Rippling)) |  |  | Note (b) |
| Sethi Capital z3, LLC (economic exposure to Deel, Inc) | 4.00% |  | Note (b) |
| Sethi Capital z4, LLC – Class 1A | 2.67% |  | Note (b) |
| Sethi Capital z4 LLC – Class 1C (economic exposure to Kalshi Inc.) | 2.67% |  | Note (b) |
| Windom Ventures, LLC (economic exposure to Databrick, Inc. and Kalshi Inc.) |  |  | Note (b) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) The effects of management and incentive fees, if applicable, have been incorporated in the fair value
of the SPVs. Each SPV's management fee is either due upon purchase of the SPV, or the percentage above is accrued quarterly over
a one- or two-year period.

(b) These SPVs do not allow redemption of interests by the Fund.

Effective December 1, 2025 Paralel Technologies LLC serves as the administrator to the Fund. Effective September 10, 2025 U.S. Bank National Association serves as the Fund's custodian and effective October 7, 2025 Continental Stock Transfer Agent serves as the Fund's transfer and dividend paying agent and registrar.

As of December 31, 2025, directors, officers and employees of the Adviser held ownership of 9.39% of the Fund's outstanding shares.

Th Adviser has made payments of the Fund's expenses, and the Fund intends to reimburse the Adviser for these expenses. As of December 31, 2025, the reimbursable balance due to the Adviser is $245,174 as reported on the consolidated statements of assets and liabilities.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 6 – CAPITAL TRANSACTIONS**

For the period January 15, 2025 (commencement of operations) through September 5, 2025, PowerLaw10, LLC received the following capital contributions to fund its investments and operating expenses and issued the corresponding units of membership interest. On September 5, 2025, PowerLaw10, LLC converted to a Maryland corporation (the "Conversion" and such corporation Powerlaw Corp.), such units of membership interests converted into the corresponding number of shares of common stock pursuant to the conversion ratios set forth in PowerLaw10, LLC's Second Amended and Restated Operating Agreement, dated June 10, 2025 (the "Operating Agreement"). In addition, pursuant to the PowerLaw10, LLC Equity Incentive Plan, dated September 9, 2024, PowerLaw10, LLC was authorized to issue 25,000,000 Organizer Units and 15,000,000 Advisor Units. Pursuant to the Operating Agreement, upon the Conversion, the (a) 25,000,000 Organizer Units would have converted into 54,268,121 shares of common stock and (b) 15,000,000 Advisor Units would have converted into 15,303,750 shares of common stock, which would have resulted in an aggregate of 69,571,908 shares of common stock issued upon the conversion of the Organizer Units and Advisor Units. However, prior to the Conversion and pursuant to the Operating Agreement, 5,857,244 of the Organizer Units were converted into 12,462,116 Advisor Units. As a result, immediately prior to the Conversion, PowerLaw10, LLC had 19,142,756 Organizer Units outstanding and 27,462,116 Advisor Units outstanding. Upon the Conversion, the (i) 19,142,756 Organizer Units converted into 41,553,672 shares of common stock and (ii) 27,462,116 Advisor Units converted into 28,018,199 shares of common stock, which resulted in an aggregate of 69,571,908 shares of common stock issued upon the conversion of the Organizer Units and Advisor Units.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Classes of**<br>**Membership Interests** | **Capital**<br>**Contributions** | **Numbers of**<br>**Membership Interests** | **Conversion**<br>**Ratio** | **Common Stock**<br>**Shares** |
| Class A Units | $50000000 | 50000000 | 1.2000 x | 60000000 |
| Class B Units | $251099000 | 251099000 | 1.1040 x | 277213296 |
| Class B Feeder Units | $107301000 | 107301000 | 1.0450 x | 112129545 |
| Advisor Units | $- | 27462116 | 1.02025 x | 28018199 |
| Organizer Units | $- | 19142756 | 2.1707 x | 41553672 |
|  | $**408400000** | **455004872** |  | **518914712** |

---

The Organizer Units and Advisor Units were issued pursuant to the PowerLaw10, LLC Equity Incentive Plan, dated September 9, 2024. The Fund applied ASC 718 *Compensation-Stock Compensation* to account for the Organizer Units and Advisor Units. No cash was paid in connection with the issuance of the Organizer Units and the Advisor Units. The Fund applied the weighted expected return method to estimate the fair value at grant date and at any modification date. Following the initial grants, two modifications occurred: (1) the conversion of Organizer Units to Advisor Units, described above, and (2) the conversion of Advisor Units at the Conversion date in excess of the stated Advisor Units conversion total per the Operating Agreement, which resulted in a value of $3,573,898, which is recorded in the consolidated statement of operations as professional fees and fund administration expense in the amount of $3,510,561 and $63,337, respectively. As of September 30, 2025, there is no recognized compensation expense related to the Organizer Units and Advisor Units.

Certain grants of Advisor Units, representing 17,623,778 Units, were accounted for under ASC 505 *Equity*, whereby the grants were accounted for a fair value utilizing a probability weighted expected return method. No expense was recorded for these grants.

PowerLaw10, LLC anticipates that the Conversion will be a treated as a tax-free contribution by PowerLaw10, LLC of its assets to Powerlaw Corp. pursuant to section 351 of the Internal Revenue Code of 1986, as amended.

On December 23, 2025, after obtaining the approval of stockholders, the board of directors approved and executed a reverse stock split whereby every twelve shares of common stock were changed into one share of common stock (the "Reverse Stock Split"). After the completion of the Reverse Stock Split, there were 43,242,931 shares of common stock outstanding.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 7 – INVESTMENT TRANSACTIONS**

The cost of purchases and proceeds from the sale of securities, other than short-term securities, for the three months ended December 31, 2025, were as follows:

---

| | |
|:---|:---|
| Cost of investment purchases | $119771576 |
| Proceeds from investments sold | $- |

---

**NOTE 8 – INCOME TAXES**

For financial reporting purposes, income or (loss) before provision for income taxes, includes the following components for the three months ended December 31, 2025:

---

| | |
|:---|:---|
| **Income / (Loss) Before Income Taxes** | |
| &nbsp;&nbsp;&nbsp;Domestic | $(1687351) |
| &nbsp;&nbsp;&nbsp;Foreign | - |
| **Total Income / (Loss) Before Income Taxes** | $(1687351) |

---

No income taxes were paid for the three months ended December 31, 2025.

The U.S. federal and California provision (benefit) for income taxes consists of the following for the three months ended December 31, 2025:

---

| | |
|:---|:---|
| **Current Tax Expense (Benefit)** | |
| &nbsp;&nbsp;&nbsp;U.S federal | $- |
| &nbsp;&nbsp;&nbsp;U.S. state | - |
| &nbsp;&nbsp;&nbsp;Foreign | - |
| **Total Current Tax Expense (Benefit)** | $- |
| **Deferred Tax Expense (Benefit)** |  |
| &nbsp;&nbsp;&nbsp;U.S federal | $(1620111) |
| &nbsp;&nbsp;&nbsp;U.S. state | (748123) |
| &nbsp;&nbsp;&nbsp;Foreign | - |
| **Total Deferred Tax Expense (Benefit)** | $(2368234) |
| **Total Income Tax Expense (Benefit)** |  |
| &nbsp;&nbsp;&nbsp;U.S federal | $(1620111) |
| &nbsp;&nbsp;&nbsp;U.S. state | (748123) |
| &nbsp;&nbsp;&nbsp;Foreign | - |
| **Total Income Tax Expense (Benefit)** | $(2368234) |

---

Income tax provision (benefit) related to continuing operations differs from the amounts computed by applying the statutory income tax rate of 21% to pretax loss as follows for the three months ended December 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **Amount** | **Percent** |
| **U.S. Federal Provision (Benefit)** |  |  |
| &nbsp;&nbsp;&nbsp;At statutory rate | $- | 0.00% |
| &nbsp;&nbsp;&nbsp;State income taxes, net of federal effect |  | 0.00% |
| &nbsp;&nbsp;&nbsp;Nontaxable or nondeductible items |  | 0.00% |
| &nbsp;&nbsp;&nbsp;Other |  |  |
| &nbsp;&nbsp;&nbsp;Change in tax status | (2368234) | 140.35% |
| **Total Income Tax Expense (Benefit)** | $(2368234) | 140.35% |

---

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 8 – INCOME TAXES (Continued)**

As of October 1, 2025, the Fund has elected to be treated as a regulated investment company for U.S. federal income tax purposes. Accordingly, the Company reversed its deferred tax liabilities and assets for the three months ended December 31, 2025, as the Fund is no longer subject to corporate income taxes after the change in entity status.

The Fund will be filing its initial and final corporate federal and state income tax returns for the period from September 5, 2025 (Conversion date) to September 30, 2025. The jurisdictions have varying statutes of limitations.

For the three months ended December 31, 2025, no interest or penalties were required to be recognized relating to unrecognized tax expenses or benefits.

The Fund has elected to be treated as a regulated investment company for U.S. federal income tax purposes and expects to qualify as a RIC for the tax year ending September 30, 2026. Accordingly, the Fund generally will not be subject to U.S. federal corporate income tax, provided it distributes substantially all of its net taxable income and realized gains each taxable year.

In order to avoid imposition of the excise tax applicable to RICs, the Fund intends to declare dividends on an annual basis equal to at least (i) 98% of its net investment income earned during the calendar year, (ii) 98.2% of its net realized capital gains earned during the twelve-month period ended October 31, and (iii) any undistributed amounts from prior years.

During the period from September 5, 2025 (commencement of operations) to September 30, 2025 and during the three months ended December 31, 2025, the Fund paid no dividends.

The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Permanent items identified for the three months ended December 31, 2025, have been reclassified among the components of net assets based on their tax basis treatment as follows:

---

| | |
|:---|:---|
| Paid-in capital | $(5287103) |
| Distributable Earnings/(Accumulated Loss) | 5287103 |

---

Included in the amounts reclassified was current-year net operating loss offset to paid-in-capital of $1,618,820 and prior-year net operating loss offset to paid-in-capital of $3,263,994.

In general, the Fund makes certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which may include conversion-related items, differences in the book and tax basis of certain assets and liabilities, amortization of start-up costs, expense payments, nondeductible federal excise taxes and net operating losses, among other items.

As of December 31, 2025, the components of distributable earnings on a tax basis were as follows:

---

| | |
|:---|:---|
| Undistributed ordinary income | $**—** |
| Accumulated capital losses |  |
| Unrealized appreciation/depreciation | 68807824 |
| **Total** | $**68807824** |

---

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 8 – INCOME TAXES (Continued)**

The amount of net unrealized appreciation/depreciation and the cost of investment securities for tax purposes as of December 31, 2025 was as follows:

---

| | |
|:---|:---|
| Cost of investments for income tax purposes | $405952994 |
| Gross appreciation on investments (excess of value over tax cost) **<sup>(a)</sup>** | 76869451 |
| Gross depreciation on investments (excess of tax cost over value) **<sup>(a)</sup>** | (7282549) |
| Other tax appreciation/depreciation**<sup>(</sup>**<sup>b**)**</sup> | (779078) |
| Net unrealized appreciation/depreciation on investments | $68807824 |

---

&nbsp;&nbsp;&nbsp;&nbsp;a) The primary difference between book and tax appreciation/depreciation of investments relates to investments
in partnerships.

&nbsp;&nbsp;&nbsp;&nbsp;b) Other tax appreciation/depreciation represents syndication costs.

Capital losses maintain their character as short-term or long-term and are carried forward to the next tax year without expiration. As of December 31, 2025, the Fund had no capital losses available as carry forwards. For the three months ended December 31, 2025, the Fund utilized $17,379 of capital loss carryovers.

**NOTE 9 – INDEMNIFICATIONS**

The Fund indemnifies its officers and directors for certain liabilities that may arise from the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, however based on industry experience, the Fund expects the risk of loss due to these indemnifications to be remote.

**NOTE 10 – COMMITMENTS AND CONTINGENCIES** 

In the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties, and which provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

The Fund may be required to provide financial support in the form of investment commitments to certain SPVs as part of the conditions for entering into such investments. As of December 31, 2025, the Fund did not have any unfunded commitments and did not provide any financial support.

The Fund is not currently subject to any material legal proceedings, and to the Fund's knowledge, no material legal proceedings are threatened against the Fund. From time to time, the Fund may be a party to certain legal proceedings in the ordinary course of business, including proceedings related to the enforcement of the Fund's rights under contracts with its portfolio companies. While the outcome of any legal proceedings cannot be predicted with certainty, to the extent the Fund becomes party to such proceedings, the Fund would assess whether any such proceedings will have a material adverse effect upon its financial condition or results of operations.

**NOTE 11 – SUBSEQUENT EVENTS**

The Fund filed a registration statement with the SEC (the "Registration Statement") to register for resale shares of the Fund under the Securities Act and the 1940 Act on September 17, 2025 and an amendment December 23, 2025. As of February 9, 2026, the Registration Statement was not yet effective.

Management has evaluated subsequent events through the date these consolidated financial statements were issued and has determined that there were no subsequent events to report through the issuance of these consolidated financial statements except as noted below.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 (UNAUDITED)**

**NOTE 11 – SUBSEQUENT EVENTS (Continued)**

The Fund repaid its $20,000,000 line of credit payable as of December 31, 2025 in full on January 2, 2026.

The Fund's investment in Sethi Capital z4, LLC – Class 1A purchased an investment in Kalshi Inc. on January 5, 2026.

 

**Powerlaw Corp.**

 

Financial Statements

For the period from January 15, 2025

(commencement of operations) through September 30, 2025

 

**Table of Contents**

 

---

| | |
|:---|:---|
| Consolidated Financial statements |  |
| [Consolidated Schedule of Investments](#KJ_034) | S-48 |
| [Consolidated Statement of Assets and Liabilities](#KJ_035) | S-51 |
| [Consolidated Statement of Operations](#PR_001) | S-52 |
| [Consolidated Statement of Changes in Net Assets](#KJ_036) | S-53 |
| [Consolidated Statement of Cash Flows](#KJ_037) | S-54 |
| [Notes to Consolidated Financial Statements](#KJ_038) | S-55 |
| [Consolidated Financial Highlights](#KJ_039) | S-64 |
| [Report of Independent Registered Public Accounting Firm](#KJ_040) | S-65 |

---

 

**POWERLAW CORP.**

**CONSOLIDATED SCHEDULE OF INVESTMENTS**

**SEPTEMBER 30, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Shares/**<br> **Principal/**<br> **Units** <br> **Amount** | **Security** | **Acquisition <br> Date** | **Cost** | **Fair Value** | **% of Net<br> Assets** |
|  | **Investments, at fair value** |  |  |  |  |
|  | **Private Investments, at fair value** |  |  |  |  |
|  | **Private Investments, at fair value - Ireland** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;**Common Stock, at fair value (a), (b), (c)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Financial Technology** |  |  |  |  |
| 401850 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stripe, Inc., Class B Common Stock | &nbsp;&nbsp;5/7/2025 | $15005029 | $14868450 | 3.59% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Common Stock, at fair value 3.59%** |  | 15005029 | 14868450 | 3.59% |
|  | **Total Private Investments, at fair value - Ireland 3.59%** |  | 15005029 | 14868450 | 3.59% |
|  | **Investments, at fair value - United States** |  |  |  |  |
|  | **Private Investments, at fair value - United States** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;**Call Right Agreements, at fair value (a), (b), (c)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Defense Products** |  |  |  |  |
| 23562 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anduril Industries, Inc. - Call Right to purchase shares of Class B Common Stock (d) | &nbsp;&nbsp;4/1/2025 | 32160 | 1500 | 0.00% |
|  | &nbsp;&nbsp;&nbsp;**Total Call Right Agreements, at fair value 0.00%** |  | 32160 | 1500 | 0.00% |
|  | &nbsp;&nbsp;&nbsp;**Common Stock, at fair value (a), (b), (c)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Biotechnology and Genetic Engineering** |  |  |  |  |
| 1339584 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Colossal Biosciences Inc. Common Stock | &nbsp;&nbsp;8/18/2025 | 19999989 | 19999989 | 4.83% |
|  | &nbsp;&nbsp;&nbsp;**Total Common Stock, at fair value 4.83%** |  | 19999989 | 19999989 | 4.83% |
|  | **Forward agreements, at fair value (a), (c), (e)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;**Defense Products** |  |  |  |  |
| 84444 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anduril Industries, Inc. - Forward Agreement to purchase Common Stock (b) | &nbsp;&nbsp;3/5/2025 | 3624674 | 3452071 | 0.83% |
|  | &nbsp;&nbsp;&nbsp;**Mobility Technology** |  |  |  |  |
| 4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Waymo LLC - Forward Agreement to purchase Class B Membership Units (b) | &nbsp;&nbsp;5/19/2025 | 360000 | 360000 | 0.09% |
|  | &nbsp;&nbsp;&nbsp;**Software** |  |  |  |  |
| 64500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Figma, Inc. - Forward Agreement to purchase Class A Common Stock | &nbsp;&nbsp;4/14/2025 | 2064000 | 3178334 | 0.77% |
|  | **Total Forward Agreements, at fair value 1.69%** |  | 6048674 | 6990405 | 1.69% |
|  | **Preferred Stock, at fair value (a), (b), (c)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;**Financial Technology** |  |  |  |  |
| 222223 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payward, Inc. (d/b/a Kraken) Series Seed Preferred Stock | &nbsp;&nbsp;7/31/2025 | 10001035 | 10000035 | 2.41% |
|  | &nbsp;&nbsp;&nbsp;**Total Preferred Stock, at fair value 2.41%** |  | 10001035 | 10000035 | 2.41% |
|  | **Promissory Notes, at fair value (b), (c)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;**Defense Products** |  |  |  |  |
| $490060 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anduril Industries, Inc. - 5.0% Secured Promissory Note due April 1, 2030 (d) | &nbsp;&nbsp;4/1/2025 | 490060 | 490060 | 0.12% |
| $122140 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anduril Industries, Inc. - 5.0% Secured Promissory Note due April 9, 2030 (d) | &nbsp;&nbsp;4/9/2025 | 122140 | 122140 | 0.03% |
| $349515 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anduril Industries, Inc. - 5.0% Secured Promissory Note due July 21, 2030 (d) | &nbsp;&nbsp;7/21/2025 | 349515 | 349515 | 0.08% |
|  | **Total Promissory Notes, at fair value 0.23%** |  | 961715 | 961715 | 0.23% |
|  | **SPVs, at fair value (a), (c), (f)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;**Aerospace and Artificial Intelligence (AI)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FDVC Growth A-1, LLC (economic exposure to Space Exploration Technologies Corp. and X.AI Holdings Corp.) (g) | &nbsp;&nbsp;2/24/2025 | 50725000 | 51341263 | 12.39% |
|  | &nbsp;&nbsp;&nbsp;**Artificial Intelligence (AI)** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Altimeter Adirondack Fund I, L.P. (economic exposure to Anthropic, PBC) | &nbsp;&nbsp;8/25/2025 | 4110600 | 4094558 | 0.99% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HOF Capital AF Growth, LLC (economic exposure to Anthropic, PBC) (b) | &nbsp;&nbsp;3/26/2025 | 5100000 | 11515521 | 2.78% |
|  |  |  | 9210600 | 15610079 | 3.77% |

---

**See Notes to Consolidated Financial Statements.**

**POWERLAW CORP.**

**CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)**

**SEPTEMBER 30, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Shares/**<br> **Principal/**<br> **Units**<br> **Amount** | **Security** | **Acquisition <br> Date** | **Cost** | **Fair Value** | **% of Net<br> Assets** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NDH Opportunity Funds LLC - Series 1 (economic exposure to OpenAI Global, LLC) | 7/11/2025 | 68999999 | 67758235 | 16.35% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paragon Avo II, A Series of Avo Technology Fund LP, LLC (economic exposure to OpenAI Global, LLC) | 4/7/2025 | 5375000 | 5138904 | 1.24% |
|  |  |  | 74374999 | 72897139 | 17.59% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HII Perplexity Series II, a Series of Hii Perplexity, LLC (economic exposure to Perplexity AI, Inc.) | 9/12/2025 | 8240207 | 8000201 | 1.93% |
|  |  |  | 91825806 | 96507419 | 23.29% |
|  | &nbsp;&nbsp;&nbsp;**Defense Products** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AND III, a Series of FDVC Growth, LP (economic exposure to Anduril Industries, Inc.) (b) | 3/7/2025 | 2243000 | 2488789 | 0.60% |
|  | &nbsp;&nbsp;&nbsp;**Enterprise Software** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PLRP Capital RP, LP - Investment Class 2 (economic exposure to People Center Inc. d/b/a Rippling) (g) | 8/13/2025 | 4968400 | 4967872 | 1.20% |
|  | &nbsp;&nbsp;&nbsp;**Financial Technology** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fifth Era Coinvestors, LLC (economic exposure to Payward, Inc. (d/b/a Kraken)) | 7/14/2025 | 10890042 | 10106163 | 2.44% |
|  | &nbsp;&nbsp;&nbsp;**Software** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Syon Capital DB, LP - Investment Class 2 (economic exposure to Databricks, Inc.) (g) | 1/16/2025 | 6301737 | 9992673 | 2.41% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Horizon Strategic Partners, LP - Series Canva 1 (g) | 6/24/2025 | 16062500 | 15935230 | 3.85% |
|  |  |  | 22364237 | 25927903 | 6.26% |
|  | **Total SPVs, at fair value 46.18%** |  | 183016485 | 191339409 | 46.18% |
|  | **Total Private Investments, at fair value - United States 55.34%** |  | 220060058 | 229293053 | 55.34% |
|  | **Total Private Investments, at fair value 58.93%** |  | 235065087 | 244161503 | 58.93% |
|  | **Short Term Investments, at fair value - United States** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;**Money Market** |  |  |  |  |
| 819681 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First American Funds, Inc. - Government Obligations Fund 4.04% (h) | 9/19/2025 | 819681 | 819681 | 0.20% |
| 201367 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First American Funds, Inc. - Government Obligations Fund 4.04% (h) | 9/25/2025 | 201367 | 201367 | 0.05% |
|  |  |  | 1021048 | 1021048 | 0.25% |
|  | **U.S. Treasury Bills** |  |  |  |  |
| 200000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury Bill - March 26, 2026 3.80% (h) | 9/25/2025 | 196279 | 196358 | 0.04% |
| 102674000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury Bill - March 19, 2026 3.84% (h) | 9/26/2025 | 100826381 | 100875152 | 24.35% |
|  |  |  | 101022660 | 101071510 | 24.39% |
|  | **Total Short Term Investments, at fair value - United States 24.64%** |  | 102043708 | 102092558 | 24.64% |
|  | **Total Investments, at fair value - United States 79.98%** |  | 322103766 | 331385611 | 79.98% |
|  | **Total Investments, at fair value 83.57%** |  | $337108795 | $346254061 | 83.57% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Non-income producing security.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Level 3 securities fair valued using significant unobservable inputs. (See Note 2)

&nbsp;&nbsp;&nbsp;&nbsp;(c) Restricted securities as to resale. (See Note 2)

&nbsp;&nbsp;&nbsp;&nbsp;(d) Powerlaw Corp. made such loans to the borrowers pursuant to the $961,715 secured promissory notes. Pursuant to the call right agreements, the borrowers granted Powerlaw Corp. the right to purchase 23,562 shares of Anduril Industries, Inc. Class B Common Stock, for an amount equal to the principal amount of the outstanding loans. The number of collateral shares associated with such loans is 31,683 shares of Anduril Industries, Inc. Class B Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Powerlaw Corp. advanced to the counterparties an amount equal to the negotiated purchase price of the counterparties' portfolio company securities, but the closing of the purchase and transfer of such securities to Powerlaw Corp. will not close until any applicable transfer restrictions and lock-up provisions have expired.

&nbsp;&nbsp;&nbsp;&nbsp;(f) These special purpose vehicles ("SPVs") are private investment vehicles that (i) are formed to invest in a particular portfolio company and (ii) are exempt from registration under the Investment Company Act pursuant to section 3(c)(7) of the Investment Company Act. By making a direct investment in these SPVs, Powerlaw Corp. owns a direct ownership interest in these SPVs and an indirect ownership interest in the underlying portfolio company.

&nbsp;&nbsp;&nbsp;&nbsp;(g) Affiliated SPV

&nbsp;&nbsp;&nbsp;&nbsp;(h) Rate disclosed is the annualized yield rate.

**LLC - Limited Liability Company**

**LP - Limited Partnership**

**PBC - a public benefit corporation**

**See Notes to Consolidated Financial Statements.**

**POWERLAW CORP.**

**CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)**

**SEPTEMBER 30, 2025**

**As of September 30, 2025, the Fund's investments by type are as follows:**

---

| | | | |
|:---|:---|:---|:---|
| **Type** | **Cost at<br> September 30, <br> 2025** | **Fair Value at <br> September 30,<br> 2025** | **Percentage of <br> Net Assets** |
| SPVs | $183016485 | $191339409 | 46.18% |
| Short term government debt | 101022660 | 101071510 | 24.39% |
| Common stock | 35005018 | 34868439 | 8.42% |
| Preferred stock | 10001035 | 10000035 | 2.41% |
| Forward agreements | 6048674 | 6990405 | 1.69% |
| Money market | 1021048 | 1021048 | 0.25% |
| Promissory notes | 961715 | 961715 | 0.23% |
| Call right agreements | 32160 | 1500 | 0.00% |
|  | $337108795 | $346254061 | 83.57% |

---

**As of September 30, 2025, the Fund's investments by industry are as follows:**

---

| | | | |
|:---|:---|:---|:---|
| **Industry** | **Cost at<br> September 30,<br> 2025** | **Fair Value at<br> September 30,<br> 2025** | **Percentage of<br> Net Assets** |
| U.S. treasury bills | $101022660 | $101071510 | 24.39% |
| Artificial intelligence (AI) | 91825806 | 96507419 | 23.29% |
| Aerospace and artificial intelligence (AI) | 50725000 | 51341263 | 12.39% |
| Financial technology | 35896106 | 34974648 | 8.44% |
| Software | 24428237 | 29106237 | 7.03% |
| Biotechnology and genetic engineering | 19999989 | 19999989 | 4.83% |
| Defense products | 6861549 | 6904075 | 1.66% |
| Enterprise software | 4968400 | 4967872 | 1.20% |
| Money market | 1021048 | 1021048 | 0.25% |
| Mobility technology | 360000 | 360000 | 0.09% |
|  | $337108795 | $346254061 | 83.57% |

---

***See Notes to Consolidated Financial Statements.***

**POWERLAW CORP.**

**CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES**

**SEPTEMBER 30, 2025**

---

| | |
|:---|:---|
| **ASSETS:** | |
| &nbsp;&nbsp;&nbsp;Non-affiliated investments, at fair value (Cost $259,051,158) | $264017023 |
| &nbsp;&nbsp;&nbsp;Affiliated investments, at fair value (Cost $78,057,637) | 82237038 |
| &nbsp;&nbsp;&nbsp;Cash | 263954 |
| &nbsp;&nbsp;&nbsp;Receivable for unsettled purchases | 70362509 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | 241887 |
| &nbsp;&nbsp;&nbsp;Interest receivable | 88439 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 46184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | 417257034 |
| **LIABILITIES:** |  |
| &nbsp;&nbsp;&nbsp;Accrued expenses and accounts payable | 512329 |
| &nbsp;&nbsp;&nbsp;Due to Adviser | 28306 |
| &nbsp;&nbsp;&nbsp;Due to investment | 18400 |
| &nbsp;&nbsp;&nbsp;Net deferred tax liabilities | 2368234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 2927269 |
| **NET ASSETS** | $414329765 |
| **COMMITMENTS AND CONTINGENCIES (Note 9)** |  |
| **COMPOSITION OF NET ASSETS** |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value, 950,000,000 shares authorized 518,914,712 shares issued and outstanding | $51891 |
| &nbsp;&nbsp;&nbsp;Additional paid-in-capital | 411922007 |
| &nbsp;&nbsp;&nbsp;Total accumulated earnings and profits | 2355867 |
| **NET ASSETS** | $414329765 |
| Shares of common stock, $0.0001 par value, 950,000,000 shares authorized 518,914,712 shares issued and outstanding | 518914712 |
| **NET ASSET VALUE PER SHARE** | $0.80 |

---

***See Notes to Consolidated Financial Statements.***

**POWERLAW CORP.**

**CONSOLIDATED STATEMENT OF OPERATIONS**

**FOR THE PERIOD JANUARY 15, 2025 (COMMENCEMENT OF OPERATIONS) THROUGH SEPTEMBER 30, 2025**

---

| | |
|:---|:---|
| **INVESTMENT INCOME:** | |
| &nbsp;&nbsp;&nbsp;Interest income | $1544575 |
| &nbsp;&nbsp;&nbsp;Interest income - non affiliated investments | 88439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment income | 1633014 |
| **EXPENSES:** |  |
| &nbsp;&nbsp;&nbsp;Professional fees | 4321106 |
| &nbsp;&nbsp;&nbsp;Organizational costs | 536737 |
| &nbsp;&nbsp;&nbsp;Fund administration | 286767 |
| &nbsp;&nbsp;&nbsp;Legal fees | 19107 |
| &nbsp;&nbsp;&nbsp;Other expenses | 94005 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 5257722 |
| **NET INVESTMENT LOSS BEFORE INCOME TAXES** | (3624708) |
| &nbsp;&nbsp;&nbsp;Tax benefit | 360714 |
| **NET INVESTMENT LOSS AFTER INCOME TAXES** | (3263994) |
| &nbsp;&nbsp;&nbsp;**NET REALIZED LOSS AND CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS** |  |
| &nbsp;&nbsp;&nbsp;Net realized loss from non-affiliated investments | (17379) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on affiliated investments | 4179401 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on non-affiliated investments | 4965865 |
| &nbsp;&nbsp;&nbsp;Deferred tax expense related to unrealized appreciation on investments | (2728948) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on investments | 6416318 |
| **NET REALIZED LOSS AND CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS** | 6398939 |
| **NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS** | $3134945 |

---

***See Notes to Consolidated Financial Statements.***

**POWERLAW CORP.**

**CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS**

**FOR THE PERIOD JANUARY 15, 2025 (COMMENCEMENT OF OPERATIONS) THROUGH SEPTEMBER 30, 2025**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** | **In Dollars ($)** |
|  | **Organizer Units** | **Advisor Units** | **Class A Units** | **Class B Units** | **Class B Feeder Units** | **Common Stock** | **Additional <br> Paid-in-Capital** | **Total Accumulated <br> Earnings and Profits** | **Total** |
| PowerLaw10, LLC's members' equity, January 15, 2025 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $- | $- | $- | $- | $- | $- | $- | $- |
| &nbsp;&nbsp;&nbsp;Capital contributions - cash |  |  | 50000000 | 251099000 | 107301000 |  |  |  | 408400000 |
| &nbsp;&nbsp;&nbsp;Capital contributions - grants (Note 5) |  | 3573898 |  |  |  |  |  |  | 3573898 |
| &nbsp;&nbsp;&nbsp;Syndication costs |  |  | (95356) | (479031) | (204691) |  |  |  | (779078) |
| &nbsp;&nbsp;&nbsp;Net investment loss |  |  | (417864) | (2098806) | (896852) |  |  |  | (3413522) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on investments | - | - | 1137435 | 5712084 | 2440926 | - | - | - | 9290445 |
| &nbsp;&nbsp;&nbsp;PowerLaw10, LLC's members' equity, September 5, 2025 pre-conversion | - | 3573898 | 50624215 | 254233247 | 108640383 | - | - | - | 417071743 |
| &nbsp;&nbsp;&nbsp;Recognition of conversion of members' equity to common stock |  | (3573898) | (50624215) | (254233247) | (108640383) | 51891 | 411922007 | 5097845 |  |
| &nbsp;&nbsp;&nbsp;Net investment income |  |  |  |  |  |  |  | 149528 | 149528 |
| &nbsp;&nbsp;&nbsp;Net realized loss from investments |  |  |  |  |  |  |  | (17379) | (17379) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on investments | - | - | - | - | - | - | - | (2874127) | (2874127) |
| Total increase in net assets | $- | $- | $- | $- | $- | $51891 | $411922007 | $2355867 | $414329765 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **In Units** | **In Units** | **In Units** | **In Units** | **In Units** | **In Units** | **In Units** | **In Units** | **In Units** |
|  | **Organizer Units** | **Advisor Units** | **Class A Units** | **Class B Units** | **Class B Feeder Units** | **Common Stock** | **Additional <br> Paid-in-Capital** | **Total Accumulated <br> Earnings and Profits** | **Total** |
| Transactions in units: |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of units | 19142756 | 27462116 | 50000000 | 251099000 | 107301000 | - | - | - | 455004872 |
| &nbsp;&nbsp;&nbsp;PowerLaw10, LLC's units, September 5, 2025 pre-conversion | 19142756 | 27462116 | 50000000 | 251099000 | 107301000 | - | - | - | 455004872 |
| &nbsp;&nbsp;&nbsp;Cancelation of units being converted into common stock | (19142756) | (27462116) | (50000000) | (251099000) | (107301000) |  |  |  | (455004872) |
| &nbsp;&nbsp;&nbsp;Recognition of conversion of units into common stock | - | - | - | - | - | 518914712 | - | - | 518914712 |
| Shares outstanding, September 30, 2025 | - | - | - | - | - | 518914712 | - | - | 518914712 |

---

***See Notes to Consolidated Financial Statements.***

**POWERLAW CORP.**

**CONSOLIDATED STATEMENT OF CASH FLOWS**

**FOR THE PERIOD JANUARY 15, 2025 (COMMENCEMENT OF OPERATIONS) THROUGH SEPTEMBER 30, 2025**

---

| | |
|:---|:---|
| **CASH FLOWS FROM OPERATING ACTIVITIES:** | |
| &nbsp;&nbsp;&nbsp;Net increase in net assets resulting from operations | $3134945 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net increase in net income to net cash used in operating activities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional fees - grants (Note 5) | 3510561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fund administration - grants (Note 5) | 63337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized loss from investments | 17379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on affiliated investments | (4179401) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on non-affiliated investments | (4965865) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of investments | 207555429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments | (544681603) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in receivable for unsettled purchases | (70362509) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in interest receivable | (88439) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in prepaid expenses | (46184) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accrued expenses and accounts payable | 512329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in due to Adviser | 28306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in due to investment | 18400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in net deferred tax liabilities | 2368234 |
| &nbsp;&nbsp;&nbsp;Net cash used in operating activities | (407115081) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |
| &nbsp;&nbsp;&nbsp;Capital contributions - cash | 408400000 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | (241887) |
| &nbsp;&nbsp;&nbsp;Syndication costs | (779078) |
| &nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 407379035 |
| Net increase in cash | 263954 |
| Cash, beginning balance |  |
| Cash, ending balance | $263954 |
| **SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES:** |  |
| &nbsp;&nbsp;&nbsp;Capital contributions - grants (Note 5) | $3573898 |

---

***See Notes to Consolidated Financial Statements.***

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025**

**NOTE 1 – ORGANIZATION**

Powerlaw Corp. (the "Fund") is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Fund was organized on September 9, 2024 and commenced operations on January 15, 2025, as PowerLaw10, LLC, a Delaware limited liability company. Effective September 5, 2025 the Fund converted to a Maryland corporation and intends to be treated, and to qualify annually, as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended, beginning with taxable year ended September 30, 2026.

The Fund has applied to list its common stock on the Nasdaq Global Market (the "Exchange") under the symbol PWRL. The listing of its shares must be approved by the Exchange prior to any trading of shares on the Exchange.

The Fund's investment objective is long-term capital appreciation. It seeks to achieve its investment objective by primarily investing in the equity and equity-linked securities of a concentrated portfolio of approximately 12 to 15 late-stage technology companies. Akkadian CEF Manager, LLC, (the "Adviser") serves as the Fund's investment adviser and manages its investments subject to the supervision of the Fund's Board of Directors.

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES**

The following is a summary of the significant accounting policies utilized by the Fund in the preparation of its consolidated financial statements. All amounts are presented in U.S. dollars. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Fund qualifies as an investment company and, accordingly, applies the accounting and reporting requirements prescribed under the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946, *Financial Services — Investment Companies*.

Principles of Consolidation – The Fund consolidates variable interest entities (VIEs) for which it is the primary beneficiary, generally as a result of having the power to direct the activities that most significantly affect the VIE's economic performance and holding variable interests that convey to the Fund the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Fund consolidates entities that are not VIEs when it has a controlling financial interest as a result of majority voting control. The Fund is precluded from consolidating entities that are not investment companies when it is required to measure those entities at fair value in accordance with ASC Topic 946.

The accompanying consolidated financial statements include the accounts of the Fund and its wholly owned and controlled subsidiaries, PowerLaw10, LP a Delaware limited partnership and Verbal Ventures, LP a Delaware limited partnership, which are not VIEs. Consolidation of these subsidiaries is based on the voting interest model, as the Fund controls these subsidiaries through greater than 50% voting ownership. PowerLaw10, LP and Verbal Ventures, LP are investment companies established for the general purpose of executing specific investment transactions on behalf of the Fund. All significant intercompany accounts and transactions have been eliminated in the accompanying consolidated financial statements. At September 30, 2025, the Fund does not hold variable interests in any VIEs for which it is the primary beneficiary.

Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income, and expenses. Actual results could differ from such estimates due to inherent uncertainty in the estimation process.

Calculation of Net Asset Value – The Fund, as a registered investment company, will calculate its net asset value ("NAV") as of the close of each quarterly period. NAV is calculated by dividing the value of the Fund's total assets less its liabilities by the number of shares outstanding. The initial NAV was calculated as of September 5, 2025, the date the Fund converted to a Maryland corporation.

Cash – The Fund considers its investments in Federal Deposit Insurance Corporation ("FDIC") insured interest bearing accounts to be cash. Cash is valued at face value. The Fund maintains cash balances, which at times may exceed federally insured limits. The Fund maintains these balances with major financial institutions.

Receivable for Unsettled Purchases – The Fund considers investments that were not fully consummated to be receivable for unsettled purchases on the consolidated statement of assets and liabilities.

Investment Transactions and Income Recognition – Investment transactions are accounted for on trade date basis. The Fund realizes gains or losses when securities, other than investments in special purpose vehicles, held by the Fund, are sold or distributed. Realized gains or losses are determined using the specific identification method. The Fund realizes gains or losses from investments in special purpose vehicles when realized gains or losses are recognized by the special purpose vehicles though a distribution to the Fund. The Fund also realizes losses on investments that are deemed worthless. Net change in unrealized appreciation or depreciation on investments represents the change between cost and fair value and is reported as a separate component in the consolidated statement of operations.

Income and Expenses – Interest income is recognized on an accrual basis as it is earned. Dividend income is recorded on the ex-dividend date. Expenses other than offering costs are recognized on an accrual basis as they are incurred.

At the discretion of the Adviser, upon exercise of the Fund's call right, accrued interest income could be received in cash or added to the return threshold used to calculate any profit share that may be owed to the borrower by the Fund upon any future disposition of the shares purchased pursuant to the call right.

Segment Information – The Fund operates through a single operating and reporting segment. The Fund's chief operating decision maker ("CODM") is its Chief Executive Officer Peter Smith. Mr. Smith reviews the financial information by way of the Fund's portfolio composition (consolidated schedule of investments), total returns, expense ratios and changes in net assets (i.e. changes in net assets resulting from operations, subscriptions and redemptions), which are used by the CODM to assess performance versus the Fund's comparative benchmarks to make resource allocation decisions for the Fund. The financial information is consistent with that presented within the Fund's accompanying financial statements.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025**

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)**

Valuation of Investments – The Fund records its investments at fair value. The Fund's fair valuation framework incorporates the requirements of Rule 2a-5 under the 1940 Act together with the principles established in ASC Topic 820, *Fair Value Measurement* ("ASC 820"), issued by the FASB. Rule 2a-5 governs valuation practices for registered investment companies and clarifies the Board's oversight responsibilities in the valuation process. Pursuant to Rule 2a-5, the Board has designated the Adviser as the "Valuation Designee" to perform fair value determinations.

In accordance with U.S. GAAP, fair value is defined as the price that would be received by selling an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date.

In determining fair value, the Fund uses various valuation approaches. The Fund values certain portfolio investments at fair value using the market approach. Under the market approach, fair value is measured based on quoted market prices or other relevant information generated by market transactions involving identical or comparable assets. This approach is applied for investments that have observable market data and is considered the most reliable indicator of fair value when comparable transactions are available.

The Fund classifies these investments within Level 1, Level 2, or Level 3 of the fair value hierarchy, depending on the observability of the inputs used in the valuation. In accordance with U.S. GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:

These inputs are categorized as follows:

Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund can access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable from independent sources, either directly or indirectly.

Level 3 – Valuations based on inputs that are unobservable and that are significant to the overall fair value measurement.

The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including, the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy under which the fair value measurement falls, is determined based on the lowest level input that is significant to the fair value measurement.

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Fund's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Fund uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy.

Investments include privately structured investment vehicles established for the purpose of investing in a specified portfolio company, which operate pursuant to exemptions from registration under the 1940 Act in reliance on Section 3(c)(1) or Section 3(c)(7) (collectively, "special purpose vehicles" or "SPVs"). Such investments are recognized on the closing date, defined as the date on which the Fund commits to purchase or dispose of the securities. The consolidated schedule of investments in these consolidated financial statements reflect the name of the SPV in which each investment was made, along with the primary economic exposure parenthetically.

The Fund's investments in privately held securities consist of common and preferred stock, forward agreements to purchase common stock or membership units, SPVs, promissory notes and call right agreements. The transaction price, excluding transaction costs, is typically the Fund's best estimate of fair value at inception. When evidence supports a change to the carrying value from the transaction price, adjustments are made to reflect expected exit values. Ongoing reviews are based on an assessment of each underlying investment, incorporating valuations that consider the financial condition and operating results of the private company, the price of subsequent rounds of financing, valuation metrics and performance multiples of comparable publicly traded companies and precedent merger and acquisition transactions (which closely mirror the investment's business, scale, operating, and market acceptance), and the private company capital structure, among other factors.

The Fund's investments in promissory notes are converted to equity securities through exercise of a call right agreement prior to their maturity date. Generally, the stated value of these notes approximates fair value. The Fund may consider other factors to estimate fair value, including proceeds that would be received in a liquidation analysis.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025**

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)**

The Fund acquires forward contracts through secondary transactions, where it may lack a direct contractual relationship with the counterparty, as well as the ability to enforce rights against or obtain identifying or contact information for such counterparty. In these cases, the Fund does not hold a direct beneficial interest in the underlying securities of the portfolio company but must instead rely on a third party to collect, enforce, and settle rights relating thereto. There is no assurance that such third party will act effectively or successfully in fulfilling these responsibilities.

As a practical expedient, investments in SPVs are valued per the reported net asset value (NAV) as reported by the corresponding SPV's managers. Adjustments to such NAV would be considered if (a) such NAV was not as of the applicable SPV's measurement date; (b) it was probable that the applicable SPV would be sold at a value materially different from such NAV; or (c) it was determined in accordance with the Fund's valuation procedures that the applicable investment company is not being reported at fair value. The Fund may invest in closed-end limited partnerships and limited liability companies with a finite life.

Income Taxes –The Fund intends to be treated, and to qualify annually, as a RIC for U.S. federal income tax purposes. In such capacity, the Fund generally is not subject to U.S. federal corporate income tax, provided it distributes all of its net taxable income and realized capital gains each taxable year.

The Fund has adopted a tax year ending September 30<sup>th</sup>.

The Fund did not elect RIC treatment prior to September 30, 2025, as it operated in a private capacity initially and was, therefore, ineligible to make the election for the period from January 15, 2025 (commencement of operations) through September 30, 2025. The Fund will first elect RIC status in its federal income tax return for the taxable year ended September 30, 2026. For the period from September 5, 2025 through September 30, 2025, the Fund was a corporation for U.S. tax purposes.

Prior to converting to a Maryland Corporation on September 5, 2025, the Fund was a partnership for U.S. tax purposes. The Fund did not record a provision for U.S. federal, state, or local income taxes because the partners report their share of the Partnership's income or loss on their income tax returns. However, certain U.S. dividend and interest income may be subject to a maximum 30% withholding tax for limited partners that are foreign entities or foreign individuals. Further, certain non-U.S. dividend and interest income may be subject to a tax at prevailing treaty or standard withholding rates with the applicable country or local jurisdiction. The Partnership files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states for 2025 and 2024. 2025 is the final tax year that the Fund will file these partnership tax returns.

The Fund accounts for income taxes under the liability method; under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings.

The Fund utilizes a two-step approach to recognize and measure uncertain tax positions. 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 upon tax authority examination, 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.

Offering Costs – The Fund incurred costs in connection with listing on the Exchange and United States Securities and Exchange Commission ("SEC") Form N-2. These costs were recorded as a deferred charge and will be charged to capital when the Fund is declared effective. There were $241,887 of deferred offering costs accrued during the period from January 15, 2025 (commencement of operations) through September 30, 2025, recognized as deferred offering costs on the consolidated statement of assets and liabilities.

Organizational Costs – Organizational costs are expensed as incurred. For the period from January 15, 2025 (commencement of operations) through September 30, 2025, the Fund incurred $536,737 of organizational costs and recorded those costs on the consolidated statement of operations.

Syndication Costs – Syndication costs represent costs incurred in connection with the syndication of membership interests. These costs are reflected as a direct reduction of members' equity. For the period from January 15, 2025 (commencement of operations) through September 30, 2025, the Fund incurred $779,078 of syndication costs on the consolidated statement of changes in net assets.

Restricted securities – Restricted securities are securities of privately held issuers that may only be resold pursuant to registration under applicable federal securities laws or through transactions exempt from such registration requirements. In certain instances, the issuer of restricted securities may agree, at its own expense, to register such securities for resale, either upon demand by the Fund or in connection with another registered offering.

Many restricted securities may nonetheless be resold in secondary market transactions conducted pursuant to available exemptions from registration. Restricted securities are valued either at prices provided by secondary market dealers or, where no such market quotations are available, at fair value determined in good faith in accordance with methodologies approved by the Adviser. As of February 9, 2026, there is no expected date for such restrictions to be removed from any of the Fund's restricted securities.

Risks and Uncertainties – All investments are subject to certain risks. Changes in overall market movements, interest rates, or factors affecting a particular industry, can affect the ultimate value of the Fund's investments. Investments are subject to a number of risks, including the risks that values will fluctuate as a result of changes in expectations for the economy and individual investors.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025**

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)**

*Liquidity and Valuation Risk* – Liquidity risk is the risk that securities may be difficult or impossible to sell at the time the Adviser would like or at the price it believes the security is currently worth. Liquidity risk may be increased for certain Fund investments, including those investments in funds with gating provisions or other limitations on investor withdrawals and restricted or illiquid securities. Some SPVs in which the Fund invests may impose restrictions on when an investor may withdraw its investment or limit the amount an investor may withdraw. To the extent that the Adviser seeks to reduce or sell out of a Fund investment at a time or at an amount that is prohibited, the Fund may not have the liquidity necessary to participate in other investment opportunities or may need to sell other investments that it may not have otherwise sold.

A substantial portion of the Fund's investments are illiquid, as determined by using the SEC standard applicable to registered investment companies (i.e., securities that cannot be disposed of by the Fund within seven calendar days in the ordinary course of business at approximately the amount at which the Fund has valued the securities). Illiquid and restricted securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market price of illiquid and restricted securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of such securities. Investment of the Fund's assets in illiquid and restricted securities may also restrict the Fund's ability to take advantage of market opportunities.

Valuation risk is the risk that one or more of the securities in which the Fund invests are priced differently than the value realized upon such security's sale. In times of market instability, valuation may be more difficult, in which case the Adviser's judgment may play a greater role in the valuation process.

*Concentration Risk* – Many of the Fund's investments will be in U.S. private companies in the technology sector and therefore will be particularly exposed to the risks attendant to investments in that sector. Investors generally have no assurance as to the degree of diversification of the Fund's investments, either by geographic region, asset type or sector. Accordingly, a significant portion of the Fund's investments may be made in relatively few geographic regions, asset types, security types or industry sectors. For example, as of September 30, 2025, approximately 35.68% of the Fund's investment portfolio is invested in private technology companies in the artificial intelligence and aerospace industry. Any such concentration of risk may increase losses suffered by the Fund, which could have a material adverse effect on the Fund's overall financial condition.

*General SPV Risks* – The Fund's investments in SPVs will typically require us to bear a pro rata share of the vehicles' expenses, including operating and offering related costs, which could result in higher expenses than if the Fund invested in the single underlying portfolio company directly. Because SPVs are generally organized by managers unaffiliated with the Fund or the Adviser, the Fund will typically be one of many investors in the SPV. In purchasing an SPV interest, the Fund entrusts all aspects of the management of the SPV to its manager. SPVs are generally organized as limited liability companies, and to the extent an SPV is organized as a Delaware Series LLC, the Fund would be subject to the risks inherent in investing in a Delaware Series LLC. Some SPVs in which the Fund invest may impose restrictions on when investors may withdraw their investment or limit the amounts investors may withdraw. To the extent the Fund seeks to reduce or sell an investment at a time or in an amount that is prohibited, the Fund may not have the liquidity necessary to participate in other investment opportunities or may need to sell other investments that it may not have otherwise sold. Additionally, SPVs are not publicly traded and therefore may not be as liquid as other types of investments. Further, the fair value of investments in SPVs may differ from the value of the underlying securities were the Fund to hold such securities directly. Finally, as investors in an SPV, the Fund owns interests in the SPV and has no ownership rights to the underlying securities. These characteristics present additional risks for stockholders. Individual SPVs that the Fund invests in may have different terms and structures, which may present unique risks and result in different fee levels.

*Counterparty Risk* – The Fund is exposed to counterparty risk from the potential failure of a holder of a portfolio company's securities to perform in accordance with the agreed upon terms of the investment arrangement, including for the Fund's investments in forwards, call rights, and loans. The maximum risk of loss from counterparty risk to the Fund is the fair value of the contracts. The Fund considers the effects of counterparty risk when determining the fair value of each investment.

*Market Disruption and Geopolitical Risk* – The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. War, terrorism, and related geopolitical events (and their aftermath) have led, and in the future may lead, to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. Likewise, natural, and environmental disasters, such as, for example, earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, as well as the spread of infectious illness or other public health issues, including widespread epidemics or pandemics, and systemic market dislocations can be highly disruptive to economies and markets. Those events as well as other changes in non-U.S. and domestic economic and political conditions also could adversely affect individual issuers or related groups of issuers, securities markets, interest rates, credit ratings, inflation, investor sentiment, and other factors affecting the value of Fund Investments.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025**

**NOTE 3 – FAIR VALUE MEASUREMENTS**

As of September 30, 2025, the Fund's investments were categorized as follows in the fair value hierarchy, as described in Note 2:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Investments, at Value Measurement Using** | **Investments, at Value Measurement Using** | **Investments, at Value Measurement Using** | **Investments, at Value Measurement Using** |
| <br>**Type (a)** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Short term government debt | $101071510 | $- | $- | $101071510 |
| Common stock |  |  | 34868439 | 34868439 |
| SPVs |  |  | 14004310 | 14004310 |
| Preferred stock |  |  | 10000035 | 10000035 |
| Forward agreements |  | 3178334 | 3812071 | 6990405 |
| Money market | 1021048 |  |  | 1021048 |
| Promissory notes |  |  | 961715 | 961715 |
| Call right agreements | - | - | 1500 | 1500 |
| &nbsp;&nbsp;&nbsp;Investments at value | $102092558 | $3178334 | $63648070 | $168918962 |
| Investments measured at NAV (b) |  |  |  | 177335099 |
| &nbsp;&nbsp;&nbsp;Investments |  |  |  | $346254061 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For detailed descriptions and other security classifications, see the accompanying consolidated schedule of investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In accordance with ASC 820, certain investments that were measured at NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The Fund has made commitments to investments measured at NAV. As of September 30, 2025 the balance of unfunded commitments is zero.

The Fund assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the last day of the reporting period in accordance with the Fund's accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. The following table presents changes in assets classified in Level 3 of the fair value hierarchy during the period from January 15, 2025 (commencement of operations) through September 30, 2025 attributable to the following:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common<br> Stock** | **SPVs** | **Preferred<br> Stock** | **Forward <br> Agreements** | **Promissory<br> Notes** | **Call<br> Right <br> Agreements** | **Total** |
| Balance as of January 15, 2025 | $- | $- | $- | $- | $- | $- | $- |
| Purchases of investments | 35005018 | 7342999 | 10001035 | 6048674 | 961715 | 32160 | 59391601 |
| Net change in unrealized appreciation/(depreciation) on investments | (136579) | 6661311 | (1000) | 941731 |  | (30660) | 7434803 |
| Transfer out of Level 3<sup>1</sup> | - | - | - | (3178334) | - | - | (3178334) |
| Balance as of September 30, 2025 | $34868439 | $14004310 | $10000035 | $3812071 | $961715 | $1500 | $63648070 |
| Net change in unrealized appreciation/(depreciation) on investments for the period for the investments still held at September 30, 2025 | $(136579) | $6661311 | $(1000) | $941731 | $- | $(30660) | $7434803 |

---

<sup>1</sup> During the period from January 15, 2025 through September 30, 2025, there are no other transfers.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025**

**NOTE 3 – FAIR VALUE MEASUREMENTS (Continued)**

The following table summarizes the quantitative inputs and assumptions used for investments classified as Level 3 of the fair value hierarchy as of September 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Type** | **Fair Value at <br> September 30, <br> 2025** | **Valuation Technique** | **Unobservable Input** | **Range of Inputs** |
| Common stock | $34868439 | Market approach | Recent transaction price | n/a |
| SPVs | 11515521 | Market approach | Tender offer | n/a |
|  | 2488789 | Market approach | Recent round of funding | n/a |
| Preferred stock | 10000035 | Market approach | Recent transaction price | n/a |
| Forward agreements | 3812071 | Market approach | Recent transaction price | n/a |
| Promissory notes | 961715 | Market approach | Recent transaction price | n/a |
| Call right agreements | 1500 | Market approach | Recent transaction price | n/a |
|  | $63648070 |  |  |  |

---

Significant increases or decreases in any of the unobservable inputs in isolation may result in a significantly higher or lower fair value measurement.

**NOTE 4 – RELATED PARTY TRANSACTIONS, INVESTMENT ADVISORY AND OTHER AGREEMENTS**

The Fund entered into an investment advisory agreement with the Adviser (the "Investment Advisory Agreement"). Under the Investment Advisory Agreement, commencing upon the date that the registration statement is declared effective by the SEC, the Fund will pay the Adviser a management fee, payable quarterly, in the amount equal to 2.50% of the Fund's average total assets (which excludes cash and cash equivalents, but includes assets financed using leverage) as the end of the two most recently completed quarters. Prior to the date Powerlaw Corp.'s registration with the SEC becomes effective, the Adviser will not charge a management fee.

In connection with certain investments by the Fund, the Fund invests via SPVs, and some of these SPVs charge fees. For the period from January 15, 2025 (commencement of operations) through September 30, 2025, such fees were as follows:

---

| | | |
|:---|:---|:---|
| **Special Purpose Vehicle** | **Management <br> Fees<sup>(a)</sup>** | **Incentive <br> Fees<sup>(a)</sup>** |
| AND III, a Series of FDVC Growth, LP (economic exposure to Anduril Industries, Inc.) | 10.00% | 20.00% |
| Altimeter Adirondack Fund I, L.P. (economic exposure to Anthropic, PBC) | 1.25% | 15.00% |
| Fifth Era Coinvestors, LLC (economic exposure to Payward, Inc. (d/b/a Kraken)) | 7.00% |  |
| FDVC Growth A-1, LLC (economic exposure to Space Exploration Technologies Corp. and X.AI Holdings Corp.) |  |  |
| HOF Capital AF Growth, LLC (invested in Anthropic, PBC) |  |  |
| HII Perplexity Series II, a Series of Hii Perplexity, LLC (economic exposure to Perplexity AI, Inc.) |  |  |
| Horizon Strategic Partners, LP – Series Canva 1 | 3.33% |  |
| NDH Opportunity Funds LLC - Series 1 (economic exposure to OpenAI Global, LLC) | 7.78% |  |
| Paragon Avo II, A Series of Avo Technology Fund LP, LLC (economic exposure to OpenAI Global, LLC) | 6.00% |  |
| Syon Capital DB, LP – Investment Class 2 (economic exposure to Databricks, Inc.) |  |  |
| PLRP Capital RP, LP – Investment Class 2 (economic exposure to People Center Inc. d/b/a Rippling) |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The effects of management and incentive fees, if applicable, have been incorporated in the fair value of the SPVs. Each SPV's management fee is either due upon purchase of the SPV, or the percentage above is accrued quarterly over a one- or two-year period.

Effective January 15, 2025, (commencement of operations) Radeeza Services, LLC serves as administrator to the Fund. Effective September 10, 2025 U.S. Bank National Association serves as the Fund's custodian and effective October 7, 2025 Continental Stock Transfer Agent serves as the Fund's transfer and dividend paying agent and registrar.

As of September 30, 2025, directors, officers and employees of the Adviser held ownership of 9.39% of the Fund's outstanding shares.

The Adviser has made payments of the Fund's expenses, and the Fund intends to reimburse the Adviser for these expenses. As of September 30, 2025, the reimbursable balance due to the Adviser is $28,306 as reported on the consolidated statements of assets and liabilities.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025**

**NOTE 5 – CAPITAL TRANSACTIONS**

For the period January 15, 2025 (commencement of operations) through September 5, 2025, PowerLaw10, LLC received the following capital contributions to fund its investments and operating expenses and issued the corresponding units of membership interest. On September 5, 2025, PowerLaw10, LLC converted to a Maryland corporation (the "Conversion" and such corporation Powerlaw Corp.), such units of membership interests converted into the corresponding number of shares of common stock pursuant to the conversion ratios set forth in PowerLaw10, LLC's Second Amended and Restated Operating Agreement, dated June 10, 2025 (the "Operating Agreement"). In addition, pursuant to the PowerLaw10, LLC Equity Incentive Plan, dated September 9, 2024, PowerLaw10, LLC was authorized to issue 25,000,000 Organizer Units and 15,000,000 Advisor Units. Pursuant to the Operating Agreement, upon the Conversion, the (a) 25,000,000 Organizer Units would have converted into 54,268,121 shares of common stock and (b) 15,000,000 Advisor Units would have converted into 15,303,750 shares of common stock, which would have resulted in an aggregate of 69,571,908 shares of common stock issued upon the conversion of the Organizer Units and Advisor Units. However, prior to the Conversion and pursuant to the Operating Agreement, 5,857,244 of the Organizer Units were converted into 12,462,116 Advisor Units. As a result, immediately prior to the Conversion, PowerLaw10, LLC had 19,142,756 Organizer Units outstanding and 27,462,116 Advisor Units outstanding. Upon the Conversion, the (i) 19,142,756 Organizer Units converted into 41,553,672 shares of common stock and (ii) 27,462,116 Advisor Units converted into 28,018,199 shares of common stock, which resulted in an aggregate of 69,571,908 shares of common stock issued upon the conversion of the Organizer Units and Advisor Units.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Classes of**<br>**Membership Interests** | **Capital**<br>**Contributions** | **Numbers of<br> Membership**<br>**Interests** | **Conversion**<br>**Ratio** | **Common <br> Stock**<br>**Shares** |
| Class A Units | $50000000 | 50000000 | 1.2000 x | 60000000 |
| Class B Units | $251099000 | 251099000 | 1.1040 x | 277213296 |
| Class B Feeder Units | $107301000 | 107301000 | 1.0450 x | 112129545 |
| Advisor Units | $- | 27462116 | 1.02025 x | 28018199 |
| Organizer Units | $- | 19142756 | 2.1707 x | 41553672 |
|  | $**408400000** | **455004872** |  | **518914712** |

---

The Organizer Units and Advisor Units were issued pursuant to the PowerLaw10, LLC Equity Incentive Plan, dated September 9, 2024. The Fund applied ASC 718 *Compensation-Stock Compensation* to account for the Organizer Units and Advisor Units. No cash was paid in connection with the issuance of the Organizer Units and the Advisor Units. The Fund applied the weighted expected return method to estimate the fair value at grant date and at any modification date. Following the initial grants, two modifications occurred: (1) the conversion of Organizer Units to Advisor Units, described above, and (2) the conversion of Advisor Units at the Conversion date in excess of the stated Advisor Units conversion total per the Operating Agreement, which resulted in a value of $3,573,898, which is recorded in the consolidated statement of operations as professional fees and fund administration expense in the amount of $3,510,561 and $63,337, respectively. As of September 30, 2025, there is no recognized compensation expense related to the Organizer Units and Advisor Units.

Certain grants of Advisor Units, representing 17,623,778 Units, were accounted for under ASC 505 *Equity*, whereby the grants were accounted for a fair value utilizing a probability weighted expected return method. No expense was recorded for these grants.

PowerLaw10, LLC anticipates that the Conversion will be a treated as a tax-free contribution by PowerLaw10, LLC of its assets to Powerlaw Corp. pursuant to section 351 of the Internal Revenue Code of 1986, as amended.

**NOTE 6 – INVESTMENT TRANSACTIONS**

The cost of purchases and proceeds from the sale of securities, other than short-term securities, for the period from January 15, 2025 (commencement of operations) to September 30, 2025, were as follows:

---

| | |
|:---|:---|
| Cost of investment purchases | $235065087 |
| Proceeds from investments sold | $- |

---

**NOTE 7 – INCOME TAXES**

For financial reporting purposes, income or (loss) before provision for income taxes, includes the following components for the period from September 5, 2025 (Conversion date) to September 30, 2025:

---

| | |
|:---|:---|
| **Income / (Loss) Before Income Taxes** | |
| &nbsp;&nbsp;&nbsp;Domestic | $(372945) |
| &nbsp;&nbsp;&nbsp;Foreign | - |
| **Total Income / (Loss) Before Income Taxes** | $(372945) |

---

No income taxes were paid for the period from January 15, 2025 (commencement of operations) to September 30, 2025.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025**

**NOTE 7 – INCOME TAXES (Continued)**

The U.S. federal and California provision (benefit) for income taxes consists of the following for the period from the period from September 5, 2025 (Conversion date) to September 30, 2025:

---

| | |
|:---|:---|
| **Current Tax Expense (Benefit)** | |
| &nbsp;&nbsp;&nbsp;U.S federal | $- |
| &nbsp;&nbsp;&nbsp;U.S. state |  |
| &nbsp;&nbsp;&nbsp;Foreign | - |
| **Total Current Tax Expense (Benefit)** | $- |
| **Deferred Tax Expense (Benefit)** |  |
| &nbsp;&nbsp;&nbsp;U.S federal | $1620111 |
| &nbsp;&nbsp;&nbsp;U.S. state | 748123 |
| &nbsp;&nbsp;&nbsp;Foreign | - |
| **Total Deferred Tax Expense (Benefit)** | $2368234 |
| **Total Income Tax Expense (Benefit)** |  |
| &nbsp;&nbsp;&nbsp;U.S federal | $1620111 |
| &nbsp;&nbsp;&nbsp;U.S. state | 748123 |
| &nbsp;&nbsp;&nbsp;Foreign | - |
| **Total Income Tax Expense (Benefit)** | $2368234 |

---

Income tax provision (benefit) related to continuing operations differs from the amounts computed by applying the statutory income tax rate of 21% to pretax loss as follows for the period from September 5, 2025 (Conversion date) to September 30, 2025:

---

| | | |
|:---|:---|:---|
|  | **Amount** | **Percent** |
| **U.S. Federal Provision (Benefit)** | | |
| &nbsp;&nbsp;&nbsp;At statutory rate | $(78318) | 21.00% |
| &nbsp;&nbsp;&nbsp;State income taxes, net of federal effect | 591017 | (158.47)% |
| &nbsp;&nbsp;&nbsp;Nontaxable or nondeductible items | 194 | (0.05)% |
| &nbsp;&nbsp;&nbsp;Other |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in tax status | 1855341 | (497.48)% |
| **Total Income Tax Expense (Benefit)** | $2368234 | (635.00)% |

---

Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Fund's deferred tax assets for federal and state income taxes are as follows for the period from September 5, 2025 (Conversion date) to September 30, 2025:

---

| | |
|:---|:---|
| **Deferred Tax Assets** | |
| &nbsp;&nbsp;&nbsp;U.S federal and state NOL carryforward | $81623 |
| &nbsp;&nbsp;&nbsp;Capital loss carryforward | 9187 |
| &nbsp;&nbsp;&nbsp;Other intangibles | 269904 |
| &nbsp;&nbsp;&nbsp;Deferred state income tax | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax assets | 360714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: valuation allowance | - |
| **Total Deferred Tax Assets** | 360714 |
| **Deferred Tax Liabilities** |  |
| &nbsp;&nbsp;&nbsp;Unrealized appreciation on investments | (2728948) |
| **Total Deferred Tax Liabilities** | (2728948) |
| **Net Deferred Tax Liabilities** | $(2368234) |

---

Realization of our deferred tax assets is dependent upon future earnings, if any, the timing, and amount of which are uncertain. Because of the Fund's U.S. earnings history prior to the conversion, the U.S. deferred tax assets have not been fully offset by a valuation allowance. Each reporting period, management will evaluate the need for a valuation allowance and may change its conclusion in a future period based on any change in facts.

As of September 30, 2025, the Fund had a net operating loss carryforward for federal income tax purposes of approximately $154,395, which are not subject to expiration. The Fund had a total state net operating loss carryforward of approximately $154,395, which will begin to expire in 2045. Utilization of some of the federal and state net operating loss are subject to annual limitations due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitations may result in the expiration of net operating losses before utilization.

The Fund has incurred net operating losses since inception, and the Fund does not have any significant unrecognized tax benefits. The Fund's policy is to include interest and penalties related to unrecognized tax benefits, if any, within the provision for taxes in the consolidated statements of operations.

**POWERLAW CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025**

**NOTE 7 – INCOME TAXES (Continued)**

The Fund will be filing its initial federal and state income tax returns for the period from September 5, 2025 (Conversion date) to September 30, 2025. The jurisdictions have varying statutes of limitations. The tax year will remain open to examination due to the carryover of unused net operating losses.

During the period from January 15, 2025 (commencement of operations) to September 30, 2025, no interest or penalties were required to be recognized relating to unrecognized tax benefits.

**NOTE 8 – INDEMNIFICATIONS**

The Fund indemnifies its officers and directors for certain liabilities that may arise from the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, however based on industry experience, the Fund expects the risk of loss due to these indemnifications to be remote.

**NOTE 9 – COMMITMENTS AND CONTINGENCIES** 

**In the normal course of business, the Fund enters into contracts that contain a variety of representations and** warranties, and which provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

The Fund may be required to provide financial support in the form of investment commitments to certain SPVs as part of the conditions for entering into such investments. As of September 30, 2025, the Fund did not have any unfunded commitments and did not provide any financial support.

The Fund is not currently subject to any material legal proceedings, and to the Fund's knowledge, no material legal proceedings are threatened against the Fund. From time to time, the Fund may be a party to certain legal proceedings in the ordinary course of business, including proceedings related to the enforcement of the Fund's rights under contracts with its portfolio companies. While the outcome of any legal proceedings cannot be predicted with certainty, to the extent the Fund becomes party to such proceedings, the Fund would assess whether any such proceedings will have a material adverse effect upon its financial condition or results of operations.

**NOTE 10 – SUBSEQUENT EVENTS**

The Fund filed a registration statement with the SEC (the "Registration Statement") to register shares of the Fund under the 1940 Act on September 17, 2025. As of the date of the completion of the consolidated financial statements, the Registration Statement was not yet effective.

Management has evaluated subsequent events through the date these consolidated financial statements were issued and has determined that there were no subsequent events to report through the issuance of these consolidated financial statements except as noted below.

The Fund received $69,784,920 in proceeds from canceled unsettled purchases during the period from October 1, 2025 through the issuance of these consolidated financial statements.

**POWERLAW CORP.**

**CONSOLIDATED FINANCIAL HIGHLIGHTS**

**SEPTEMBER 30, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **FOR THE PERIOD<br> JANUARY 15, 2025<br> (COMMENCEMENT OF <br> OPERATIONS)<br> THROUGH SEPTEMBER 5, <br> 2025 (a)** | **FOR THE PERIOD<br> JANUARY 15, 2025<br> (COMMENCEMENT OF <br> OPERATIONS)<br> THROUGH SEPTEMBER 5, <br> 2025 (a)** | **FOR THE PERIOD<br> JANUARY 15, 2025<br> (COMMENCEMENT OF <br> OPERATIONS)<br> THROUGH SEPTEMBER 5, <br> 2025 (a)** | **FOR THE <br> PERIOD <br> SEPTEMBER 5,<br> 2025<br> (POST<br> CONVERSION)<br> THROUGH<br> SEPTEMBER 30, <br> 2025** |  |
|  | **Class A <br> Units** | **Class B <br> Units** | **Class B<br> Feeder <br> Units** | **Common<br> Stock** |  |
| Net asset value, beginning of period | $- | $- | $- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.80 |  |
| &nbsp;&nbsp;&nbsp;Net asset value of contributions | 1.00 | 1.00 | 1.00 |  |  |
| &nbsp;&nbsp;&nbsp;Syndication costs |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income after income taxes | (0.01) | (0.01) | (0.01) |  | (d),(e) |
| &nbsp;&nbsp;&nbsp;Net realized loss on investments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on |  |  |  | (0.01) |)(d),(f) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;investments | 0.02 | 0.02 | 0.02 | 0.81 |  |
| &nbsp;&nbsp;&nbsp;Net increase in net asset value from operations | 0.01 | 0.01 | 0.01 | 0.80 |  |
| &nbsp;&nbsp;&nbsp;Net asset value, September 5, 2025 pre-conversion | 1.01 | 1.01 | 1.01 | N/A |  |
| &nbsp;&nbsp;&nbsp;Recognition of conversion of members' equity to common stock | (0.21) | (0.21) | (0.21) | N/A |  |
| Net asset value, end of period | $0.80 | $0.80 | $0.80 | $0.80 |  |
| **IRR** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;IRR, September 5, 2025 preconversion (b) | 2.34% | 10.71% | 5.54% | N/A |  |
| **Total Return** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total return on net asset value | N/A | N/A | N/A | (0.66) |)%(g),(h) |
| **Ratios/Supplemental Data (annualized except for organization costs)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses | 2.15 %(c) | 9.24 %(c) | 2.89 %(c) | 1.49 | % |
| &nbsp;&nbsp;&nbsp;Tax benefit | 0.00% | 0.00% | 0.00% | 0.09 | % |
| &nbsp;&nbsp;&nbsp;Expenses after tax benefit | 2.15% | 9.24% | 2.89% | 1.40 | % |
| &nbsp;&nbsp;&nbsp;Net investment (loss) income | (1.60)%(c) | (6.87)%(c) | (2.15)%(c) | 0.53 | % |
| Portfolio turnover rate | N/A | N/A | N/A | 39.69 | % |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Fund is required to disclose the financial highlights. Prior to the Fund converting to a Maryland corporation on September 5, 2025 the Fund's financial highlights are for the common interest in PowerLaw10, LLC (i.e., the members' interest - comprising of Class A Units, Class B Units, and Class B Feeder Units). These financial highlights consist of operating expenses and net investment loss ratios for the period from January 15, 2025 (commencement of operations) to September 5, 2025 and the Internal Rate of Return (IRR) commencement of operations of PowerLaw10, LLC, net of all fees and profit allocations to the Adviser through September 5, 2025. An individual investor's ratio may vary from those ratios.

&nbsp;&nbsp;&nbsp;&nbsp;(b) IRR was computed since commencement of operations based on the due date of capital contributions, outflows and PowerLaw10, LLC's ending members' equity as of September 5, 2025 pre-conversion.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Net investment loss is the members' share of interest income and other income earned, net of expenses. Expenses include the members' share of expenses. The ratios above are computed based upon the aggregate quarterly weighted average partners' capital of PowerLaw10, LLC for the period from January 15, 2025 (commencement of operations) to September 5, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Based on average shares outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Net investment income after income taxes includes a tax benefit of less than $0.01 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Net change in unrealized appreciation on investments includes deferred tax expense related to unrealized appreciation on investments of $(0.01) per share.

&nbsp;&nbsp;&nbsp;&nbsp;(g) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on the fund distributions or the redemption of fund shares. Total investment return calculated for a period less than one year is not annualized.

&nbsp;&nbsp;&nbsp;&nbsp;(h) The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from the financial statements.

***See Notes to Consolidated Financial Statements.***

![](image_002.jpg)

**KPMG LLP**

**Aon Center**

**Suite 5500**

**200 E. Randolph Street** 

**Chicago, IL 60601-6436**

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors of

Powerlaw Corp.:

*Opinion on the Consolidated Financial Statements*

We have audited the accompanying consolidated statement of assets and liabilities of Powerlaw Corp. (the Fund), including the consolidated schedule of investments, as of September 30, 2025, the related consolidated statements of operations, changes in net assets, and cash flows for the period from January 15, 2025 (commencement of operations) through September 30, 2025, and the related notes (collectively, the consolidated financial statements) and the financial highlights for the period from January 15, 2025 (commencement of operations) through September 30, 2025. In our opinion, the consolidated financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of September 30, 2025, the results of its operations, changes in its net assets, and its cash flows for the period from January 15, 2025 (commencement of operations) through September 30, 2025, and the financial highlights for the period from January 15, 2025 (commencement of operations) through September 30, 2025, in conformity with U.S. generally accepted accounting principles.

*Basis for Opinion*

These consolidated financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these consolidated financial statements and financial highlights 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 Fund 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 consolidated financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements and financial highlights. Such procedures also included confirmation of securities owned as of September 30, 2025, by correspondence with custodians and issuers of securities; when replies were not received from the issuers, we performed other auditing procedures. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements and financial highlights. We believe that our audit provides a reasonable basis for our opinion.

![](image_003.jpg)

We have served as the Fund's auditor since 2025.

Chicago, Illinois

December 12, 2025

**PART C - OTHER INFORMATION**

**ITEM 25. FINANCIAL STATEMENTS AND EXHIBITS**

**(1) Financial Statements:**

---

| | |
|:---|:---|
| Part A: |  |
| Part B: | Consolidated Schedule of Investments as of December 31, 2025 (Unaudited)<br> Consolidated Statement of Assets and Liabilities as of December 31, 2025 (Unaudited)<br> Consolidated Statement of Operations for the three months ended December 31, 2025 (Unaudited)<br> Consolidated Statement of Changes in Net Assets for the three months ended December 31, 2025 (Unaudited)<br> Consolidated Statement of Cash Flows for the three months ended December 31, 2025 (Unaudited)<br> Financial Highlights for the period January 15, 2025 (Commencement of Operations) through December 31, 2025 (Unaudited)<br>Consolidated Schedule of Investments as of September 30, 2025 |
|  | Consolidated Statement of Assets and Liabilities as of September 30, 2025 |
|  | Consolidated Statement of Operations for the period January 15, 2025 (Commencement of Operations) through September 30, 2025 |
|  | Consolidated Statement of Changes in Net Assets for the period January 15, 2025 (Commencement of Operations) through September 30, 2025 |
|  | Consolidated Statement of Cash Flows for the period January 15, 2025 (Commencement of Operations) through September 30, 2025 |
|  | Consolidated Financial Highlights for the period January 15, 2025 (Commencement of Operations) through September 30, 2025 |

---

**(2) Exhibits:**

---

| | |
|:---|:---|
| (a)(1) | [Articles of Incorporation<sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025088648/ea0257599-01_ex99a.htm) |
| (a)(2) | [Certificate of Correction<sup>(2)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025125481/ea0270616-01_ex99a2.htm) |
| (a)(3) | [Articles of Amendment<sup>(2)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025125481/ea0270616-01_ex99a3.htm) |
| (b) | [Amended and Restated Bylaws<sup>(2)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025125481/ea0270616-01_ex99b.htm) |
| (c) | Not Applicable |
| (d) | Not Applicable |
| (e) | [Distribution Reinvestment Plan\*](ea0275442-01_ex99e.htm) |
| (f) | Not Applicable |
| (g) | [Investment Advisory Agreement<sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025088648/ea0257599-01_ex99g.htm) |
| (h) | Not Applicable |
| (i) | Not Applicable |
| (j) | [Custody Agreement<sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025088648/ea0257599-01_ex99j.htm) |
| (k)(1) | [Fund Administration Services Agreement<sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025088648/ea0257599-01_ex99k1.htm) |
| (k)(2) | [License Agreement<sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025088648/ea0257599-01_ex99k2.htm) |
| (k)(3) | [Form of Indemnification Agreement\*](ea0275442-01_ex99k3.htm) |
| (k)(4) | [Credit Agreement\*](ea0275442-01_ex99k4.htm) |
| (k)(5) | [Pledge Agreement\*](ea0275442-01_ex99k5.htm) |
| (k)(6) | [Account Control Agreement\*](ea0275442-01_ex99k6.htm) |
| (l) | [Opinion and Consent of Maryland Counsel\*](ea0275442-01_ex99l.htm) |
| (m) | Not Applicable |
| (n) | [Consent of Independent Registered Public Accounting Firm\*](ea0275442-01_ex99n.htm) |
| (o) | Not Applicable |
| (p) | Not Applicable |
| (q) | Not Applicable |
| (r)(1) | [Code of Ethics of Registrant<sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025088648/ea0257599-01_ex99r1.htm) |
| (r)(2) | [Code of Ethics of Adviser<sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025088648/ea0257599-01_ex99r2.htm) |
| (s) | [Filing Fee Table<sup>(2)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025125481/ea0270616-01_ex99s.htm) |
| (t) | [Power of Attorney<sup>(2)</sup>](https://www.sec.gov/Archives/edgar/data/2052053/000121390025125481/ea0270616-01_ex99t.htm) |

---

\* Filed herewith.

(1) Incorporated herein by reference to the Registrant's registration statement on Form N-2 (File Nos. 333-290337, 811-24121), filed on September 17, 2025.

(2) Incorporated herein by reference to the Registrant's registration statement on Form N-2 (File Nos. 333-290337, 811-24121), filed on December 23, 2025.

**ITEM 26. MARKETING ARRANGEMENTS**

Not Applicable.

**ITEM 27. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION**

**The following table sets forth the estimated expenses to be incurred in connection with the offering described in this registration statement. All figures are estimates.**

---

| | |
|:---|:---|
| Registration Fees | $137000 |
| Exchange Listing Fee | $64000 |
| Printing | $30000 |
| Legal | $658000 |
| Accounting | $70000 |
| Miscellaneous<sup>1</sup> | $882000 |
| **Total** | $**1841000** |

---

<sup>1. Includes one-time fee related to the listing of the company. These expenses are non-recurring and are not expected to be incurred on an ongoing basis.</sup>

**ITEM 28. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL**

No person is directly or indirectly under common control with Registrant, except that the Registrant may be deemed to be controlled by Akkadian CEF Manager, LLC (the "Adviser"), the investment adviser to the Registrant. The Adviser was formed under the laws of the State of Delaware in 2025. Additional information regarding the Adviser is set out in its Form ADV, as filed with the Securities and Exchange Commission (SEC File No. 801-134282).

**ITEM 29. NUMBER OF HOLDERS OF SECURITIES**

Set forth below is the number of holders of securities of the Registrant as of February 2, 2026**:**

---

| | | |
|:---|:---|:---|
| **Title of Class** | **Number of<br> Record<br> Holders** | **Number of<br> Record<br> Holders** |
| Common Stock |  | 596 |

---

**ITEM 30. INDEMNIFICATION**

Section 2-418 of the Maryland General Corporation Law allows for the indemnification of officers, directors and any corporate agents in terms sufficiently broad to indemnify these persons under certain circumstances for liabilities, including reimbursement for expenses, incurred arising under the Securities Act. Our certificate of incorporation and bylaws provide that we shall indemnify our directors and officers to the fullest extent authorized or permitted by law and this right to indemnification shall continue as to a person who has ceased to be a director or officer and shall inure to the benefit of his or her heirs, executors and personal and legal representatives; provided, however, that, except for proceedings to enforce rights to indemnification, we are not obligated to indemnify any director or officer (or his or her heirs, executors or personal or legal representatives) in connection with a proceeding (or part thereof) initiated by the person unless the proceeding (or part thereof) was authorized or consented to by the Board. The right to indemnification conferred includes the right to be paid by us the expenses incurred in defending or otherwise participating in any proceeding in advance of its final disposition.

So long as we are regulated under the 1940 Act, the above indemnification is limited by the 1940 Act or by any valid rule, regulation or order of the SEC thereunder. The 1940 Act provides, among other things, that a company may not indemnify any director or officer against liability to it or its security holders to which he or she might otherwise be subject by reason of his or her willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office unless a determination is made by final decision of a court, by vote of a majority of a quorum of directors who are disinterested, non-party directors or by independent legal counsel that the liability for which indemnification is sought did not arise out of the foregoing conduct.

The Adviser and its affiliates (each, an "Indemnitee") are not liable to us for (i) mistakes of judgment or for action or inaction that such person reasonably believed to be in our best interests absent such Indemnitee's gross negligence, knowing and willful misconduct, or fraud or (ii) losses or expenses due to mistakes of judgment, action or inaction, or the negligence, dishonesty or bad faith of any broker or other agent of the Fund who is not an affiliate of such Indemnitee, provided that such person was selected, engaged or retained without gross negligence, willful misconduct, or fraud.

We will indemnify each Indemnitee against any liabilities relating to the offering of our common stock or our business, operation, administration or termination, if the Indemnitee acted in good faith and in a manner it believed to be in, or not opposed to, our interests and except to the extent arising out of the Indemnitee's gross negligence, fraud or knowing and willful misconduct. We may pay the expenses incurred by the Indemnitee in defending an actual or threatened civil or criminal action in advance of the final disposition of such action, provided the Indemnitee agrees to repay those expenses if found by adjudication not to be entitled to indemnification.

Insofar as indemnification for liability arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by us 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, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

**ITEM 31. BUSINESS AND OTHER CONNECTIONS OF ADVISER**

A description of any other business, profession, vocation, or employment of a substantial nature in which the Adviser, and each managing director, executive officer or partner of the Adviser, is or has been, at any time during the past two fiscal years, engaged in for his or her own account or in the capacity of director, officer, employee, partner or trustee, is set out in the Prospectus in the section entitled "Management of the Fund" and in the section of the Statement of Additional Information captioned "Management of the Fund." The information required by this Item 31 with respect to each director, officer or partner of the Adviser is incorporated by reference to Form ADV with the Securities and Exchange Commission pursuant to the Investment Advisors Act of 1940, as amended (File No. 801-134282).

**ITEM 32. LOCATION OF ACCOUNTS AND RECORDS**

All accounts, books and other documents required to be maintained by Section 31(a) of the 1940 Act, and the rules thereunder are maintained at the offices of:

The Fund

Powerlaw Corp.

631 Folsom Street Ste A & B

San Francisco, California 94107-3850

Transfer Agent

Continental Stock Transfer & Trust

1 State Street, 30th Floor

New York, New York 10004-1561

Custodian

U.S. Bank National Association

5065 Wooster Road

Cincinnati, Ohio 45226

Adviser

Akkadian CEF Manager, LLC

631 Folsom Street Ste A & B

San Francisco, California 94107-3850

Administrator

Paralel Technologies LLC

1700 Broadway, Suite 1850

Denver, Colorado 80290

**ITEM 33. MANAGEMENT SERVICES**

Not Applicable.

**ITEM 34. UNDERTAKINGS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) We undertake to suspend the offering of shares until the prospectus is amended if (1) subsequent to the effective date of its registration statement, the NAV declines more than 10% from its NAV as of the effective date of the registration statement; or (2) the NAV increases to an amount greater than the net proceeds as stated in the prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Not Applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Not Applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) We undertake that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the purpose of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by us pursuant to Rule 424(b)(1) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Not Applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The Registrant undertakes to send by first class mail or other means designed to ensure equally prompt delivery, within two business days of receipt of a written or oral request, any prospectus or Statement of Additional Information.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has duly caused this Pre-Effective Amendment to the Registration Statement on Form N-2 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Francisco and the State of California, on the 9th day of February, 2026.

---

| | |
|:---|:---|
| Powerlaw Corp. | Powerlaw Corp. |
| /s/ Peter Smith | /s/ Peter Smith |
| By: | Peter Smith |
| Title: | President |

---

Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement on Form N-2 has been signed below by the following persons in the capacities indicated on the 9th day of February, 2026.

---

| | |
|:---|:---|
| **Signature** | **Title** |
| \*Vivian Chow | Director |
| Vivian Chow |  |
| \*Nicholas Earl | Director |
| Nicholas Earl |  |
| \*Lars Leckie | Director |
| Lars Leckie |  |
| \*Benjamin Black | Director |
| Benjamin Black |  |
| \*Michael Dinsdale | Director, Chief Executive Officer |
| Michael Dinsdale |  |
| /s/ Peter Smith | President (Principal Executive Officer) |
| Peter Smith |  |
| /s/ Tracy Hogan | Chief Financial Officer and Treasurer |
| Tracy Hogan | (Principal Financial Officer and Principal Accounting Officer) |
| \*/s/ Peter Smith |  |
| Peter Smith, Attorney-in-Fact, pursuant to a power of attorney as [Exhibit (t)](https://www.sec.gov/Archives/edgar/data/2052053/000121390025125481/ea0270616-01_ex99t.htm) to the Fund's Registration Statement on Form N-2, as filed with the SEC on December 23, 2025, and incorporated herein by reference. | Peter Smith, Attorney-in-Fact, pursuant to a power of attorney as [Exhibit (t)](https://www.sec.gov/Archives/edgar/data/2052053/000121390025125481/ea0270616-01_ex99t.htm) to the Fund's Registration Statement on Form N-2, as filed with the SEC on December 23, 2025, and incorporated herein by reference. |

---

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| (e) | [Distribution Reinvestment Plan](ea0275442-01_ex99e.htm) |
| (k)(3) | [Form of Indemnification Agreement](ea0275442-01_ex99k3.htm) |
| (k)(4) | [Credit Agreement](ea0275442-01_ex99k4.htm) |
| (k)(5) | [Pledge Agreement](ea0275442-01_ex99k5.htm) |
| (k)(6) | [Account Control Agreement](ea0275442-01_ex99k6.htm) |
| (l) | [Opinion and Consent of MD Counsel](ea0275442-01_ex99l.htm) |
| (n) | [Consent of Independent Registered Public Accounting Firm](ea0275442-01_ex99n.htm) |

---

## Ex-99.(E)

**Exhibit (e)**

**POWERLAW CORP.** 

**DISTRIBUTION REINVESTMENT PLAN** 

TERMS AND CONDITIONS

Pursuant to the Distribution Reinvestment Plan (the "Plan") of Powerlaw Corp. (the "Company"), unless a holder (each, a "Shareholder") of the Company's shares of common stock, par value $0.001 (the "Common Shares") otherwise elects, all dividends, capital gain distributions and returns of capital, if any, on such Shareholder's Common Shares will be automatically reinvested by Continental Stock Transfer & Trust Company, as agent for Shareholders in administering the Plan (the "Plan Administrator"), in additional Common Shares of the Company. Shareholders who elect not to participate in the Plan will receive all dividends and other distributions payable in cash directly to the Shareholder of record (or, if the Common Shares are held in street or other nominee name, then to such nominee) by the Plan Administrator, as the dividend disbursing agent.

To opt out of the Plan, or opt back in, a Shareholder must provide notice in writing to the Plan Administrator at least five business days prior to any dividend/distribution record date; otherwise, such opt out or opt in request will not be effective until the next declared dividend or other distribution.

Shareholders may contact the Plan Administrator as follows:

IN WRITING

Shareholders may write to the Plan Administrator at the address below:

Continental Stock Transfer & Trust Co.

Attn: Shareholder Services

1 State Street, 30th Floor

New York, NY 10004

Be sure to include your name, your address, daytime phone number, last four digits of your social security or tax I.D. number and a reference to PowerLaw10, Inc. on all correspondence. Such correspondence must be executed by each Shareholder or such Shareholder's authorized representative.

Whenever the Company declares an income dividend, a capital gain distribution or other distribution (collectively referred to as "distributions") payable either in shares or in cash, non-participants in the Plan will receive cash and participants in the Plan will receive a number of Common Shares determined in accordance with the following provisions. The Common Shares will be acquired by the Plan Administrator for the participants' accounts, depending upon the circumstances described below, either (i) through the receipt of additional unissued but authorized Common Shares from the Company ("Newly Issued Common Shares") or (ii) by purchase of outstanding Common Shares on the open market ("Open-Market Purchases") on the New York Stock Exchange, the primary national securities exchange on which the Common Shares are traded, or elsewhere. If, on the payment date for any distribution, the market price per share plus estimated brokerage trading fees is equal to or greater than the net asset value per Common Share (such condition being referred to herein as "market premium"), the Plan Administrator shall receive Newly Issued Common Shares, including fractions of shares from the Company for each Plan participant's account. The number of Newly Issued Common Shares to be credited to each participant's account will be determined by dividing the dollar amount of the distribution by the net asset value per Common Share on the date the Common Shares are issued, provided that, if the net asset value per Common Share is less than or equal to 95% of the then current market price per Common Share on the date of issuance, the dollar amount of the distribution will be divided by 95% of the market price on the date of issuance for purposes of determining the number of shares issuable under the Plan. If, on the payment date for any distribution, the net asset value per Common Share is greater than the market value plus estimated brokerage trading fees (such condition being referred to herein as "market discount"), the Plan Administrator will invest the distribution amount in Common Shares acquired on behalf of the participants in Open-Market Purchases.

In the event of a market discount on the payment date for any distribution, the Plan Administrator will have until the last business day before the next date on which the Common Shares trade on an "ex-dividend" basis or in no event more than 30 days after the record date for such distribution, whichever is sooner (the "Last Purchase Date"), to invest the distribution amount in Common Shares acquired in Open-Market Purchases. If, before the Plan Administrator has completed its Open-Market Purchases, the market price of a Common Share exceeds the net asset value per Common Share, the average per Common Share purchase price paid by the Plan Administrator may exceed the net asset value of the Common Shares, resulting in the acquisition of fewer Common Shares than if the distribution had been paid in newly issued shares on the distribution payment date. If the Plan Administrator is unable to invest the full distribution amount in Open-Market Purchases during the purchase period or if the market discount shifts to a market premium during the purchase period, the Plan Administrator may cease making Open-Market Purchases and may invest the uninvested portion of the distribution amount in Newly Issued Common Shares at the net asset value per Common Share at the close of business on the Last Purchase Date provided that, if the net asset value is less than or equal to 95% of the then current market price per Common Share, the dollar amount of the distribution will be divided by 95% of the market price on the date of issuance for purposes of determining the number of shares issuable under the Plan.

The Plan Administrator maintains all registered Shareholders' accounts in the Plan and furnishes written confirmation of all transactions in the accounts, including information needed by Shareholders for tax records. Common Shares in the account of each Plan participant will be held by the Plan Administrator in non-certificated form in the name of the Plan participant.

**Partial Reinvestment for Nominee Accounts**

In the case of Common Shares owned by a beneficial owner but registered with the Plan Administrator in the name of a nominee, such as a bank, broker, or other financial intermediary (each, a "Nominee"), the Plan Administrator may accept instructions from such Nominee to reinvest distributions with respect to less than all of the Common Shares registered in the name of such Nominee, in order to reflect differing reinvestment elections of the Nominee's underlying beneficial owners, as certified to the Plan Administrator by such Nominee from time to time.

Registered Shareholders whose Common Shares are registered directly in their own name may elect either full participation or full non-participation in the Plan with respect to all such Common Shares and may not elect partial participation.

In the case of Common Shares owned by a beneficial owner but registered with the Plan Administrator in the name of a nominee, such as a bank, a broker or other financial intermediary (each, a "Nominee"), the Plan Administrator will administer the Plan on the basis of the number of Common Shares certified from time to time by the Nominee as participating in the Plan, including certifications reflecting partial participation pursuant to the elections of underlying beneficial owners. The Plan Administrator will not take instructions or elections from a beneficial owner whose Common Shares are registered with the Plan Administrator in the name of a Nominee. If a beneficial owner's shares are held through a Nominee and are not registered with the Plan Administrator as participating in the Plan, neither the beneficial owner nor the Nominee will be participants in or have distributions reinvested under the Plan with respect to those shares. If a beneficial owner of Common Shares held in the name of a Nominee wishes to participate in the Plan, and the Shareholder's Nominee is unable or unwilling to become a registered shareholder and a Plan participant with respect to those shares on the beneficial owner's behalf, the beneficial owner may request that the Nominee arrange to have all or a portion of his or her Common Shares registered with the Plan Administrator in the beneficial owner's name so that the beneficial owner may be enrolled as a participant in the Plan with respect to those Common Shares. Participants whose Common Shares are registered with the Plan Administrator in the name of one Nominee may not be able to transfer the Common Shares to another firm or Nominee and continue to participate in the Plan.

There will be no brokerage charges with respect those Common Shares issued directly by the Company as a result of distributions payable either in Common Shares or in cash. However, each participant will pay a pro rata share of brokerage trading fees incurred in connection with Open-Market Purchases in connection with the reinvestment of distributions.

The Company reserves the right to amend or terminate the Plan. There is no direct service charge to participants with regard to purchases in the Plan; however, the Company reserves the right to amend the Plan to include a service charge payable by the participants by written notice provided directly or in the next report to Shareholders.

VOTING

Each Shareholder proxy will include those Common Shares purchased or received pursuant to the Plan. The Plan Administrator will forward all proxy solicitation materials to participants and vote proxies for Common Shares held pursuant to the Plan in accordance with the instructions of the participants.

TAXATION

The automatic reinvestment of distributions will not relieve Plan participants of any federal, state or local income tax that may be payable (or required to be withheld) on such distributions. Participants that request a sale of Common Shares through the Plan Administrator are subject to brokerage commissions.

## Ex-99.(K)(3)

**Exhibit (k)(3)**

**FORM OF**

**INDEMNIFICATION AGREEMENT**

THIS INDEMNIFICATION AGREEMENT (this "***Agreement***") is effective as of the [•] day of [•], 202[ ], by and between Powerlaw Corp., a Maryland corporation (the "***Company***"), and the undersigned ("***Indemnitee***").

WHEREAS, at the request of the Company, Indemnitee currently serves as a director of the Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of Indemnitee's service; <u>and</u>

WHEREAS, as an inducement to Indemnitee to continue to serve as such director, the Company has agreed to indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the fullest extent permitted by law, except as otherwise expressly provided for herein; <u>and</u>

WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of expenses;

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Company and Indemnitee do hereby covenant and agree as follows:

**Section 1. Definitions. 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;(a) "***Change of Control***" shall mean the occurrence of any of the following events after the Effective Date 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) the sale or other disposition of all or substantially all of the Company's assets; 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) the acquisition, whether directly, indirectly, beneficially (within the meaning of rule 13d-3 of the Securities Exchange Act of 1934, as amended (the "***1934 Act***")) or of record, as a result of a merger, consolidation or otherwise, of securities of the Company representing twenty percent (20%) or more of the aggregate voting power of the Company's then-outstanding common stock by any "person" (within the meaning of Sections 13(d) and 14(d) of the 1934 Act), including, but not limited to, any corporation or group of persons acting in concert, other than (i) the Company or its subsidiaries and/or (ii) any employee pension benefit plan (within the meaning of Section 3(2) of the Employee Retirement Income Security Act of 1974) of the Company or its subsidiaries, including a trust established pursuant to any such plan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the individuals who were members of the Board of Directors as of the Effective Date (the "***Incumbent Board***") cease to constitute at least two-thirds (2/3) of the Board of Directors; <u>provided</u>, <u>however</u>, that any director appointed by at least two-thirds (2/3) of the then Incumbent Board or nominated by at least two-thirds (2/3) of the Nominating and Corporate Governance Committee of the Board of Directors (a majority of the members of the Nominating and Corporate Governance Committee shall be members of the then Incumbent Board or appointees thereof), other than any director appointed or nominated in connection with, or as a result of, a threatened or actual proxy or control contest, shall be deemed to constitute a member of the Incumbent Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***Corporate Status***" means the status of a person who is or was a director, trustee, officer, employee or agent of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise for which such person is or was serving at the request of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "***Disinterested Director***" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "***Effective Date***" means the date set forth in the first paragraph of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "***Expenses***" shall include all reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "***Independent Counsel***" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party, or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. If a Change of Control has not occurred, Independent Counsel shall be selected by the Board of Directors, with the approval of Indemnitee, which approval will not be unreasonably withheld. If a Change of Control has occurred, Independent Counsel shall be selected by Indemnitee, with the approval of the Board of Directors, which approval will not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "***Proceeding***" includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding, whether civil, criminal, administrative or investigative (including on appeal), except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee.

**Section 2. Services by Indemnitee**. Indemnitee will serve as a director of the Company. However, this Agreement shall not impose any obligation on Indemnitee or the Company to continue Indemnitee's service to the Company beyond any period otherwise required by law or by other agreements or commitments of the parties, if any.

**Section 3. Indemnification—General.** The Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the fullest extent permitted by Maryland law in effect on the date hereof and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the date hereof. The rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law ("***MGCL***"). Notwithstanding anything to the contrary in this Section 3 or any other section of this Agreement, for so long as the Company is subject to the Investment Company Act of 1940, as amended, and the regulations promulgated thereunder (the "***Investment Company Act***"), the Company shall not indemnify or advance Expenses to Indemnitee to the extent such indemnification or advance would violate the Investment Company Act.

**Section 4. Proceedings Other Than Proceedings by or in the Right of the Company.** Indemnitee shall be entitled to the rights of indemnification provided in this Section 4 if, by reason of Indemnitee's Corporate Status, Indemnitee is, or is threatened to be, made a party to or a witness in any threatened, pending, or completed Proceeding other than a Proceeding by or in the right of the Company. Pursuant to this Section 4, Indemnitee shall be indemnified against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with a Proceeding by reason of Indemnitee's Corporate Status unless it is established that (i) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty, (ii) Indemnitee actually received an improper personal benefit in money, property or services, or (iii) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

**Section 5. Proceedings by or in the Right of the Company.** Indemnitee shall be entitled to the rights of indemnification provided in this Section 5 if, by reason of his or her Corporate Status, he or she is, or is threatened to be, made a party to or a witness in any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 5, Indemnitee shall be indemnified against all amounts paid in settlement and all Expenses actually and reasonably incurred by him or her or on his or her behalf in connection with such Proceeding unless it is established that (i) the act or omission of Indemnitee was material to the matter giving rise to such a Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (ii) Indemnitee actually received an improper personal benefit in money, property or services.

**Section 6. Court-Ordered Indemnification.** In addition to any other indemnification that may be provided under this Agreement, and notwithstanding any other provision of this Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if it determines Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee shall be entitled to recover the expenses of securing such reimbursement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if it determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem proper. However, indemnification with respect to any Proceeding by or in the right of the Company or in which liability shall have been adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses.

**Section 7. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.** Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that Indemnitee is, by reason of Indemnitee's Corporate Status, made a party to and is successful, on the merits or otherwise, in the defense of any Proceeding, Indemnitee shall be indemnified for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with each successfully resolved claim, issue or matter, allocated on a reasonable and proportionate basis. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

**Section 8. Advance of Expenses.** The Company shall advance all reasonable Expenses incurred by or on behalf of an Indemnitee in connection with any Proceeding to which Indemnitee is, or is threatened to be, made a party or a witness, within ten (10) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee's good faith belief that the standard of conduct necessary for indemnification by the Company as authorized by law and by this Agreement has been met and a written undertaking by or on behalf of Indemnitee in substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it shall ultimately be established that the standard of conduct has not been met and which have not been successfully resolved as described in Section 7. For so long as the Company is subject to the Investment Company Act, any advancement of Expenses shall be subject to at least one of the following as a condition of the advancement: (a) Indemnitee shall provide a security for Indemnitee's undertaking, (b) the Company shall be insured against losses arising by reason of any lawful advances or (c) a majority of a quorum of the Disinterested Directors of the Company, or Independent Counsel in a written opinion, shall determine, based on a review of readily available facts (as opposed to a full-trial-type inquiry), that there is reason to believe that Indemnitee ultimately will be found entitled to indemnification. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee's financial ability to repay such advanced Expenses and without any requirement to post security therefor.

**Section 9. Procedure for Determination of Entitlement to Indemnification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 9(a) hereof, a determination, if required by applicable law, with respect to Indemnitee's entitlement thereto shall promptly be made in the specific case: (i) if a Change of Control shall have occurred, by Independent Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control shall not have occurred, (A) by the Board of Directors (or a duly authorized committee thereof) by a majority vote of a quorum consisting of Disinterested Directors, or (B) if a quorum of the Board of Directors consisting of Disinterested Directors is not obtainable or, even if obtainable, such quorum of Disinterested Directors so directs, by Independent Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, or (C) if so directed by a majority of the members of the Board of Directors, by the shareholders of the Company; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

**Section 10. Presumptions and Effect of Certain Proceedings.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making of any determination contrary to that presumption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The termination of any Proceeding by judgment, order, settlement, conviction, a plea of *nolo contendere* or its equivalent, or an entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.

**Section 11. Remedies of Indemnitee.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 9(b) of this Agreement within thirty (30) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 7 of this Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of Maryland, or in any other court of competent jurisdiction, of Indemnitee's entitlement to such indemnification or advance of Expenses. Alternatively, Indemnitee, at Indemnitee's option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within one hundred and eighty (180) days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 11(a); *provided, however*, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce Indemnitee's rights under Section 7 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In any judicial proceeding or arbitration commenced pursuant to this Section 11 the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, 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;(c) If a determination shall have been made pursuant to Section 9(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 11, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that Indemnitee, pursuant to this Section 11, seeks a judicial adjudication of or an award in arbitration to enforce Indemnitee's rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by Indemnitee in such judicial adjudication or arbitration. If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.

**Section 12. Defense of the Underlying Proceeding.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indemnitee shall notify the Company promptly upon being served with or receiving any summons, citation, subpoena, complaint, indictment, information, notice, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder; *provided, however*, that the failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company's ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the provisions of the last sentence of this Section 12(b) and of Section 12(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; *provided, however*, that the Company shall notify Indemnitee of any such decision to defend within fifteen (15) calendar days following receipt of notice of any such Proceeding under Section 12(a) above. The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee or (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee. This Section 12(b) shall not apply to a Proceeding brought by Indemnitee under Section 11 above or Section 18 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the provisions of Section 12(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee's Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that Indemnitee may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee's choice, subject to the prior approval of the Company, which shall not be unreasonably withheld, at the expense of the Company. In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee's choice, subject to the prior approval of the Company, which shall not be unreasonably withheld, at the expense of the Company (subject to Section 11(d)), to represent Indemnitee in connection with any such matter.

**Section 13. Non-Exclusivity; Survival of Rights; Subrogation; Insurance; Investment Company Act.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Articles of Incorporation of the Company (as amended from time to time, the "***Charter***") or the Bylaws of the Company (as amended from time to time, the "***Bylaws***"), any agreement or a resolution of the shareholders entitled to vote generally in the election of directors or of the Board of Directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee's Corporate Status prior to such amendment, alteration or repeal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as expenses hereunder if and to the extent that (i) Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise, or (ii) for so long as the Company is subject to the Investment Company Act, indemnification or payment or reimbursement of expenses would not be permissible under the Investment Company Act.

**Section 14. Insurance.** The Company has obtained, or will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate by the Board of Directors of the Company, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee for service as a director of the Company and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee for service as a director of the Company. Without in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and reasonable Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in the previous sentence.

**Section 15. Indemnification for Expenses of a Witness.** Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of Indemnitee's Corporate Status, a witness in any Proceeding, whether instituted by the Company or any other party, and to which Indemnitee is not a party, Indemnitee shall be advanced all reasonable Expenses and indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith.

**Section 16. Duration of Agreement; Binding Effect.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall continue until and terminate ten (10) years after the date that Indemnitee's Corporate Status shall have ceased; *provided, however*, that the rights of Indemnitee hereunder shall continue until the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advance of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, trustee, officer, employee or agent of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the written request of the Company, and shall inure to the benefit of Indemnitee and Indemnitee's spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

**Section 17. Severability.** If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

**Section 18. Exception to Right of Indemnification or Advance of Expenses.** Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to indemnification or advance of Expenses under this Agreement with respect to any Proceeding brought by Indemnitee, unless (a) the Proceeding is brought to enforce indemnification under this Agreement or otherwise or (b) the Company's Bylaws, the Charter, a resolution of the shareholders entitled to vote generally in the election of directors or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise. In addition, notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to indemnification or advance of Expenses under this Agreement to the extent such indemnification or advance of Expenses would conflict with any provision of the Company's Bylaws or the Charter.

**Section 19. Identical Counterparts.** This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

**Section 20. Headings.** The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

**Section 21. Modification and Waiver.** No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

**Section 22. Notices.** All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to Indemnitee, to: the address set forth on the signature page hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Company, to:

Powerlaw Corp.

631 Folsom Street, Suite A & B

San Francisco, CA 94107

or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

**Section 23. Governing Law.** The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with (i) the laws of the State of Maryland applicable to contracts formed and to be performed entirely within the State of Maryland, without regard to its conflicts of laws rules, to the extent such rules would require or permit the application of the laws of another jurisdiction, and (ii) the Investment Company Act. To the extent the applicable laws of the State of Maryland or any applicable provision of this Agreement shall conflict with the applicable provisions of the Investment Company Act, the latter shall control.

**Section 24. Miscellaneous.** Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.

*[SIGNATURE PAGE FOLLOWS]*

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the [ ] day of [ ], 202[ ].

---

| | |
|:---|:---|
| Powerlaw Corp. | Powerlaw Corp. |
| By: |  |
| Name: | [•] |
| Title: | [•] |
| INDEMNITEE | INDEMNITEE |
| Name: |  |
| Title: | Title: |

---

## Ex-99.(K)(4)

**Exhibit (k)(4)** 

Execution Version

**SENIOR SECURED CREDIT AGREEMENT**

by

**POWERLAW CORP.**,

as Borrower,

and

**STIFEL BANK**, as Lender,

Dated December 31, 2025

**TABLE OF CONTENTS**

<u>Page</u>

---

| | | |
|:---|:---|:---|
|  | Article 1 |  |
|  | Definitions and Related Matters |  |
| Section 1.01 | Definitions | 1 |
| Section 1.02 | Related Matters | 18 |
|  | Article 2 |  |
|  | Amount and Terms of The Credit Facility |  |
| Section 2.01 | Loans | 19 |
| Section 2.02 | Use of Proceeds | 20 |
| Section 2.03 | Interest; Fees | 20 |
| Section 2.04 | Notes; Payment of Obligations | 22 |
| Section 2.05 | Prepayments | 22 |
| Section 2.06 | Manner of Payment | 23 |
| Section 2.07 | Increased Costs Generally | 23 |
| Section 2.08 | Mandatory Suspension of Loans | 24 |
| Section 2.09 | Taxes | 25 |
| Section 2.10 | Compensation for Losses | 28 |
| Section 2.11 | [Reserved] | 29 |
| Section 2.12 | Applicable Lending Office | 29 |
| Section 2.13 | Mitigation Obligations | 29 |
| Section 2.14 | Extension of Stated Maturity Date | 29 |
|  | Article 3 |  |
|  | CONDITIONS TO LOANS |  |
| Section 3.01 | Closing Conditions | 30 |
| Section 3.02 | Funding Conditions | 31 |
|  | Article 4 |  |
|  | REPRESENTATIONS AND WARRANTIES |  |
| Section 4.01 | Organization, Powers and Good Standing | 32 |
| Section 4.02 | Authorization, Binding Effect, No Conflict, Etc. | 32 |
| Section 4.03 | No Material Adverse Effect; No Default. | 33 |
| Section 4.04 | [Reserved]. | 33 |

---

-i-

---

| | | |
|:---|:---|:---|
| Section 4.05 | Litigation | 33 |
| Section 4.06 | Agreements; Applicable Law | 34 |
| Section 4.07 | Taxes | 34 |
| Section 4.08 | Governmental Regulation; Investment Company Act | 34 |
| Section 4.09 | Margin Regulations | 34 |
| Section 4.10 | Disclosure | 34 |
| Section 4.11 | No Debt or Liens | 35 |
| Section 4.12 | Structure Chart. | 35 |
| Section 4.13 | Subsidiaries | 35 |
| Section 4.14 | Portfolio | 35 |
| Section 4.15 | Solvency | 36 |
| Section 4.16 | ERISA | 36 |
| Section 4.17 | Sanctions | 36 |
| Section 4.18 | Beneficial Ownership Certification | 37 |
| Section 4.19 | Borrower Pledge Restrictions | 37 |
| Section 4.20 | Hazardous Substances | 37 |
| Section 4.21 | Coverage Limits under the Investment Company Act. | 37 |
| Section 4.22 | Burdensome Restrictions | 37 |
|  | Article 5 |  |
|  | COLLATERAL MATTERS |  |
| Section 5.01 | Collateral | 37 |
| Section 5.02 | Accounts; Use of Accounts | 37 |
| Section 5.03 | Further Assurances | 38 |
| Section 5.04 | Subordination of Claims | 38 |
|  | Article 6 |  |
|  | [Reserved] |  |
|  | Article 7 |  |
|  | AFFIRMATIVE COVENANTS |  |
| Section 7.01 | Financial Statements and Other Reports | 39 |
| Section 7.02 | Records and Inspection; Etc. | 41 |
| Section 7.03 | Information Rights | 41 |
| Section 7.04 | Corporate Existence, Etc. | 41 |
| Section 7.05 | Payment of Taxes | 41 |
| Section 7.06 | Conduct of Business | 42 |
| Section 7.07 | Compliance with Law | 42 |
| Section 7.08 | [Reserved] | 42 |
| Section 7.09 | Plan Assets | 42 |
| Section 7.10 | Notices | 42 |

---

-ii-

---

| | | |
|:---|:---|:---|
| Section 7.11 | Valuation | 43.0 |
| Section 7.12 | Insurance | 43.0 |
| Section 7.13 | Compliance with Anti-Corruption Laws and Anti-Money Laundering Laws | 44.0 |
| Section 7.14 | Notice of Certain Changes to Beneficial Ownership Certification | 44.0 |
| Section 7.15 | Structure Chart | 44.0 |
|  | Article 8 |  |
|  | NEGATIVE COVENANTS |  |
| Section 8.01 | Liens | 44.0 |
| Section 8.02 | Debt | 45.0 |
| Section 8.03 | Distributions | 45.0 |
| Section 8.04 | Investments | 45.0 |
| Section 8.05 | Dispositions | 45.0 |
| Section 8.06 | Restriction on Fundamental Changes | 46.0 |
| Section 8.07 | Transactions with Affiliates | 46.0 |
| Section 8.08 | Constituent Document Amendments | 47.0 |
| Section 8.09 | Accounting Principles | 47.0 |
| Section 8.10 | Subsidiaries | 47.0 |
| Section 8.11 | Limitation on Managing Entities | 47.0 |
| Section 8.12 | Sanctions-Related Negative Covenants | 47.0 |
|  | Article 9 |  |
|  | EVENTS OF DEFAULT |  |
| Section 9.01 | Events of Default | 48.0 |
| Section 9.02 | Remedies | 50.0 |
| Section 9.03 | Application of Proceeds | 50.0 |
|  | Article 10 |  |
|  | [RESERVED] |  |
|  | Article 11 |  |
|  | MISCELLANEOUS |  |
| Section 11.01 | Lender Requested Appraisal | 51.0 |
| Section 11.02 | Expenses; Indemnity; Damage Waiver | 44.0 |
| Section 11.03 | Waivers; Amendments in Writing | 53.0 |
| Section 11.04 | Waiver; Cumulative Remedies; Enforcement | 53.0 |
| Section 11.05 | Notices, Etc. | 53.0 |
| Section 11.06 | Successors and Assigns | 53.0 |

---

-iii-

---

| | | |
|:---|:---|:---|
| Section 11.07 | Confidentiality | 56 |
| Section 11.08 | Governing Law | 56 |
| Section 11.09 | Choice of Forum; Consent to Service of Process | 57 |
| Section 11.10 | Setoff | 57 |
| Section 11.11 | [Reserved] | 57 |
| Section 11.12 | Severability | 57 |
| Section 11.13 | Survival of Agreements, Representations and Warranties | 58 |
| Section 11.14 | Execution in Counterparts | 58 |
| Section 11.15 | Complete Agreement; Third Party Beneficiaries | 58 |
| Section 11.16 | No Fiduciary Duties or Partnership; Limitation of Liability, Etc. | 58 |
| Section 11.17 | WAIVER OF TRIAL BY JURY | 58 |
| Section 11.18 | [Reserved] | 59 |
| Section 11.19 | Maximum Interest | 59 |
| Section 11.20 | Judgment Currency | 59 |
| Section 11.21 | Customer Identification Notice | 60 |
| Section 11.22 | Payments Set Aside | 60 |
| Section 11.23 | Headings | 60 |
|  | LIST OF SCHEDULES |  |
| Schedule 1.01 | Lender's Lending Office; Lender Commitments; Lending Offices |  |
| Schedule 3.01 | Certain Closing Documents for Closing Date |  |
| Schedule 5.02 | Collateral Account |  |
| Schedule 11.05 | Borrower Information for Notices |  |
|  | LIST OF EXHIBITS |  |
| Exhibit A | Form of Note |  |
| Exhibit B | [Reserved] |  |
| Exhibit C | Form of Extension Request |  |
| Exhibit D | Form of Pledge Agreement |  |
| Exhibit E | Form of Compliance Certificate |  |
| Exhibit F | Form of Assignment and Assumption Agreement |  |
| Exhibit G | Form of Loan Notice |  |
| Exhibit H | ERISA Side Letter |  |
| Exhibit I-1 | Form of U.S. Tax Compliance Certificate |  |
| Exhibit I-2 | Form of U.S. Tax Compliance Certificate |  |
| Exhibit I-3 | Form of U.S. Tax Compliance Certificate |  |
| Exhibit I-4 | Form of U.S. Tax Compliance Certificate |  |

---

-iv-

**SENIOR SECURED CREDIT AGREEMENT**

**THIS SENIOR SECURED CREDIT AGREEMENT** (together with all amendments and modifications hereof and supplements and attachments hereto, this "<u>Agreement</u>") is dated as of December 31, 2025 by and among (i) **POWERLAW CORP.**, a Maryland Corporation, as the borrower (the "<u>Borrower</u>"), and (ii) **STIFEL BANK**, as the lender (the "<u>Lender</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 Borrower has requested that Lender make Loans for the purposes set forth herein and as permitted under the Constituent Documents (as defined below) of the Borrower; 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;B. The Lender is willing to lend funds upon the terms and subject to the conditions set forth in this Agreement.

**NOW THEREFORE**, in consideration of the mutual promises herein contained, and for other good and valuable consideration, the parties hereto agree as follows:

**Article 1<br>Definitions and Related Matters**

Section 1.01 <u>Definitions</u>. The following terms with initial capital letters have the following meanings:

"<u>Account Bank</u>" means U.S. Bank National Association, a national banking association organized and existing under the laws of the United States of America with its principal place of business at Minneapolis, Minnesota.

"<u>Account Control Agreement</u>" means, with respect to any deposit account or securities account maintained by the Borrower, an account control agreement, as may be amended, restated, amended and restated, modified or supplemented from time to time, in form and substance reasonably acceptable to the Lender, executed by the Borrower, the Lender and the Account Bank.

"<u>Adjustment Event</u>" means any of the following with respect to a Portfolio Investment: (a) a material deterioration in the creditworthiness or financial condition of such Portfolio Investment or its applicable Portfolio Company; (b) an observable market pricing event occurs with respect to such Portfolio Investment or its applicable Portfolio Company, including without limitation any secondary sale, equity capital raise or debt capital raise; and (c) any other event materially impacting the reliability of reported valuations of such Portfolio Investment or its applicable Portfolio Company, either with respect to such Portfolio Investment or its applicable Portfolio Company specifically or with respect to broader market, investment or industry valuations generally, in each case as reasonably determined by the Lender.

"<u>Affiliate</u>" of any Person means any other Person (whether or not existing as of the Closing Date) that, directly or indirectly, Controls or is Controlled By, or is Under Common Control With, such Person. For the avoidance of doubt, no Persons that are "portfolio investments" of the Borrower or any fund affiliates with Manager shall be deemed an Affiliate of the Borrower, Manager or any other Person for purposes of this Credit Agreement solely as a result of their status as a "portfolio investment" thereof.

"<u>Affiliated Intermediate Vehicle</u>" means each of PowerLaw10, LP and Verbal Ventures, LP.

"<u>Agreement</u>" is defined in the Preamble and includes all Schedules, Exhibits and attachments thereto, together with all amendments, modifications, restatements and supplements hereof and thereof made in accordance with the terms hereof.

"<u>Agreement Currency</u>" is defined in Section 11.20.

"<u>Alternate Base Rate</u>" means, for any day, the rate of interest charged by the Lender (as determined by the Lender in good faith) in connection with extensions of credit to similarly situated debtors; <u>provided</u> that if such rate is less than the Floor, such rate shall be deemed to be the Floor for purposes of this Agreement. Any change in the Alternate Base Rate due to a change in the rate of interest charged by the Lender (as determined by the Lender in good faith) in connection with extensions of credit to similarly situated debtors shall be effective from and including the effective date of such change.

"<u>Anti-Corruption Laws</u>" means (i) the U.S. Foreign Corrupt Practices Act of 1977, as amended; and (ii) any other applicable anti-bribery or anti-corruption laws, regulations or ordinances in any jurisdiction in which the Borrower or its Subsidiaries is located or doing business.

"<u>Anti-Money Laundering Laws</u>" means Applicable Law in any jurisdiction in which the Borrower or any of its Subsidiaries is located or doing business that relates to money laundering or terrorism financing, any predicate crime to money laundering, or any financial record keeping and reporting requirements related thereto.

"<u>Applicable Law</u>" means all applicable provisions of all (a) constitutions, treaties, intergovernmental agreements, statutes, laws (including common law) and legally binding rules, regulations, ordinances, codes and interpretations of any Governmental Authority, (b) Governmental Approvals, and (c) orders, decisions, judgments, awards and decrees of any Governmental Authority.

"<u>Applicable Margin</u>" means 1.00% per annum.

"<u>Assignee</u>" is defined in Section 11.06(b).

"<u>Assignment and Assumption Agreement</u>" means an assignment and assumption agreement entered into by the Lender and an assignee (with the consent of any party whose consent is required pursuant to Section 11.06), in substantially the form of <u>Exhibit F</u> hereto.

"<u>Bank Group</u>" is defined in Section 11.07.

"<u>Bankruptcy Code</u>" means Title 11 of the United States Code (11 U.S.C. Section 101 *et seq.*), as amended from time to time.

"<u>Beneficial Ownership Certification</u>" means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation, in a form agreed to by the Lender.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Benefit Plan Investor</u>" is defined in Section 7.09.

"<u>Borrower</u>" is defined in the Preamble, and includes any successors thereto.

"<u>Borrower's Proportionate Share</u>" means with respect to any Portfolio Investment that is owned indirectly by the Borrower through an Intermediate Vehicle, the portion of such Portfolio Investment attributable to the direct or indirect ownership interest of the Borrower in such Intermediate Vehicle. For the avoidance of doubt, with respect to any Portfolio Investment that is 100% owned directly by the Borrower, the Borrower's Proportionate Share of such Portfolio Investment shall be 100%.

"<u>Borrowing</u>" means a borrowing consisting of simultaneous Loans made by the Lender pursuant to Section 2.01; "<u>Borrowings</u>" means the plural thereof.

"<u>Borrowing Base</u>" means, as of any date, the Borrower's Proportionate Share of the Fair Market Value of the Eligible Investments, as adjusted to account for any reduction resulting from the application of the Concentration Limit, and otherwise in accordance with the terms hereof.

"<u>Borrowing Base Certificate</u>" is defined in Section 7.01(d).

"<u>Business Day</u>" means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Applicable Laws of, or are in fact closed in, New York.

"<u>Cash</u>" means any cash denominated in Dollars.

"<u>Cash Control Event</u>" means the occurrence and continuance of any Default with respect to Sections 9.01(a), (f) or (g) or a Max LTV Breach or any Event of Default.

"<u>Change in Law</u>" means the occurrence, after the Closing Date, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty; (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority; or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u> that, notwithstanding anything herein to the contrary: (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith; and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued.

"<u>Change of Control</u>" means (a) the Manager (or any of its Affiliates) shall cease to be the investment advisor of the Borrower or (b) Peter Smith, Michael Dinsdale, and Benjamin Black shall, collectively, cease to own at least 25% of the equity interests in the Manager.

"<u>Closing Date</u>" means December 31, 2025, subject to all conditions set forth in Section 3.01 having been satisfied or waived by the Lender.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time.

"<u>Collateral</u>" is defined in Section 5.01.

"<u>Collateral Account</u>" is defined in Section 5.01.

"<u>Collateral Documents</u>" means an Account Control Agreement for the Collateral Account, the Pledge Agreement and each other instrument or agreement executed and delivered by the Borrower granting a Lien to the Lender in assets described therein as collateral security for the Obligations.

"<u>Commitment</u>" means the Lender's commitment to make Loans to the Borrower in an amount in the aggregate not to exceed the amount set forth opposite the Lender's name on <u>Schedule 1.01</u>.

"<u>Commitment Amount</u>" means $20,000,000 on the Closing Date, which may be increased from time to time pursuant to the terms hereof.

"<u>Commitment Period</u>" means the period from the Closing Date through and including the Facility Termination Date.

"<u>Compliance Certificate</u>" is defined in Section 7.01(c).

"<u>Concentration Limit</u>" means, with respect to any single Portfolio Investment, 25% of the Borrowing Base. The portion, if any, of any single Portfolio Investment that would, prior to giving effect to any reduction in accordance with this sentence, be in excess of the above Concentration Limit shall be excluded from any calculation of the Borrowing Base.

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Constituent Document</u>" means, for any entity, its constituent or organizational documents, including: (a) in the case of any partnership, exempted limited partnership, joint venture, trust or other form of business entity, the partnership, exempted limited partnership, joint venture or other applicable agreement of formation and any agreement, instrument, certificate filing or notice with respect thereto filed in connection with its registration and/or formation with the secretary of state or other department in the state, territory or other applicable jurisdiction of its registration and/or formation, in each case as amended from time to time; (b) in the case of any limited liability company, the articles or certificate of formation or certificate of registration and its operating agreement or limited liability company agreement; (c) in the case of a corporation, the certificate or articles of incorporation and its bylaws; and (d) in the case of an exempted company, the certificate of incorporation and memorandum and articles of association.

"<u>Contingent Obligation</u>" means, as to any Person, (a) any obligation, direct or indirect, contingent or otherwise, of such Person (i) with respect to the payment of any Debt or other obligation of another Person, to guarantee of such Debt or other obligation, (ii) to maintain the net worth, solvency or financial condition of another Person, (iii) otherwise to assure or hold harmless the holders of Debt or any other obligation of another Person against loss in respect thereof, or (iv) to contribute capital to another Person, or (b) any Derivative Agreement of such Person. Notwithstanding the foregoing, the obligations of any Person with respect to any Portfolio Investments (including any related capital commitments) shall not be considered a "Contingent Obligation" of such Person.

"<u>Contractual Obligation</u>" means, as applied to any Person, any provision of any security issued by that Person or of any agreement or other instrument (other than a Loan Document) to which that Person is a party or by which it or any of the properties owned or leased by it is bound or otherwise subject.

"<u>Control</u>" and the correlative meanings of the terms "<u>Controlled By</u>" and "<u>Under Common Control With</u>" mean 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 shares, partnership interests, shareholder interests, membership interest or by contract or otherwise.

"<u>Debt</u>" means, with respect to any Person, without duplication: (a) all obligations for borrowed money; (b) all obligations evidenced by bonds, debentures, notes or other similar instruments; (c) all obligations to pay the deferred purchase price of property or services, except accounts payable arising in the ordinary course of business that are (x) not overdue by more than ninety (90) days or (y) not reflected as a liability on the financial statements of such Person; (d) all obligations under capitalized leases; (e) all Debt of others secured by a Lien on any asset owned by such Person whether or not such obligation or liability is assumed (provided that if such Debt is made expressly non-recourse or limited in recourse to the assets of such Person securing such Debt, the amount of such Debt shall be deemed to be the lesser of the face amount of such Debt and the fair market value of the assets of such Person subject to such Lien); (f) all obligations of such Person, contingent or otherwise, in respect of any letters of credit or bankers' acceptances; (g) all Contingent Obligations; (h) all obligations under facilities for the discount or sale of receivables; and (i) the maximum fixed redemption or repurchase price of Disqualified Stock of such Person at the date of determination. The maximum fixed repurchase price of any Disqualified Stock that does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Stock as if such Disqualified Stock were repurchased on the relevant date of determination; <u>provided</u>, <u>however</u>, that if such Disqualified Stock is not then permitted to be repurchased, the repurchase price shall be the book value of such Disqualified Stock.

"<u>Debtor Relief Laws</u>" means any applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, insolvency, fraudulent conveyance, reorganization, or similar laws affecting the rights, remedies, or recourse of creditors generally, including without limitation the United States Bankruptcy Code and all amendments thereto, and all relevant statutes and laws under any applicable jurisdiction, as are in effect from time to time during the term of the Loans.

"<u>Default</u>" means any condition or event that, with the giving of notice or lapse of time or both would, unless cured or waived, become an Event of Default.

"<u>Default Rate</u>" means on any day the lesser of: (a) the applicable interest rate for such outstanding amount (including the Applicable Margin) in effect on such day (or if no interest rate is otherwise applicable, the Alternate Base Rate plus the Applicable Margin) plus two percent (2%); and (b) the Maximum Rate.

"<u>Derivative Agreement</u>" means, for any Person, an agreement related to (a) a transaction which is (i) a rate swap transaction, swap option, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option, credit protection transaction, credit swap, credit default swap, credit default option, total return swap, credit spread transaction, repurchase transaction, reverse repurchase transaction, buy/sell-back transaction, securities lending transaction, weather index transaction or forward purchase or sale of a security, commodity or other financial instrument or interest (including any option with respect to any of these transactions) or (ii) a type of transaction that is similar to any transaction referred to in clause (i) above that is currently, or in the future becomes, recurrently entered into in the financial markets (including terms and conditions incorporated by reference in such agreement) and which is a forward, swap, future, option or other derivative on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, economic indices or measures of economic risk or value, or other benchmarks against which payments or deliveries are to be made or (b) any combination of the foregoing transactions.

"<u>Disposition</u>" or "<u>Dispose</u>" means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction) of any property by any Person (or the entry into a binding commitment to do any of the foregoing), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith. For the avoidance of doubt, no Investment in cash or cash equivalents in the ordinary course of business will be deemed a Disposition.

"<u>Dispute Valuation</u>" is defined in Section 11.01(b).

"<u>Disqualified Stock</u>" of any Person means any Equity Interests of such Person that by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition, (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is ninety-one (91) days following the Stated Maturity Date, (b) is or becomes convertible into or exchangeable for (i) any Debt (including any debt securities) or (ii) any Equity Interests that would otherwise constitute Disqualified Stock, in each case, at any time on or prior to the date that is ninety-one (91) days following the Stated Maturity Date, or (c) is entitled to receive scheduled dividends or distributions in cash prior to the Stated Maturity Date, in each case, except as a result of a change of control, asset sale or similar event so long as any rights of the holders thereof upon the occurrence of a change of control, asset sale or similar event shall be subject to the prior repayment in full of the Loans.

"<u>Distribution</u>" means any dividend, distribution or payment (excluding payments in kind or in Equity Interests that are not Disqualified Stock), direct or indirect, to or for the benefit of any holder of any Equity Interests of a Person now or hereafter outstanding on account of any such Equity Interests.

"<u>Dollars</u>" and "<u>$</u>" means lawful money of the United States of America.

"<u>Eligible Intermediate Vehicle</u>" means, as of any date, an Intermediate Vehicle: (a) that is not then subject to, in the reasonable judgement of the Lender, any Intermediate Vehicle MAE Event; (b) the Equity Interests of which are not then subject to any security interest, Lien or other encumbrance; (c) that has not incurred any Debt; and (d) the Constituent Documents of which have substantially the same form and substance as the applicable Constituent Documents provided to the Lender in satisfaction of Section 3.01(a) or are otherwise in form and substance reasonably acceptable to the Lender. For the avoidance of doubt, each Eligible Intermediate Vehicle as of the Closing Date is set forth on the Borrowing Base Certificate delivered by the Borrower on the Closing Date. Following the Closing Date, Eligible Intermediate Vehicles may be included as "Eligible Intermediate Vehicles" in subsequent Borrowing Base Certificates delivered by the Borrower once approved as an "Eligible Intermediate Vehicle" by the Lender in its sole discretion in accordance with the terms hereof.

"<u>Eligible Investment</u>" means each investment (a) that is (and continues to be) a Portfolio Investment consisting of an Equity Interest that is owned by the Borrower (whether directly or indirectly as a result of such Borrower's direct and indirect investment in one or more Eligible Intermediate Vehicles, if applicable) and that is set forth as an "Eligible Investment" on the Borrowing Base Certificate delivered by the Borrower on the Closing Date or that is included as an "Eligible Investment" on subsequent Borrowing Base Certificates delivered by the Borrower from time to time and, with respect to Portfolio Investments acquired by the Borrower after the Closing Date, approved as an "Eligible Investment" by the Lender in its sole discretion, (b) that is either (x) subject to a valid and perfected security interest in favor of the Lender or (y) owned by an Eligible Intermediate Vehicle that is subject to a valid and perfected security interest in favor of the Lender, (c) for which the Borrower has delivered to the Lender evidence reasonably satisfactory to the Lender that such Portfolio Investment is owned by the Borrower (directly or indirectly through one or more Eligible Intermediate Vehicles, if applicable), (d) for which valuation reports and annual audited and quarterly unaudited financial statements of the type described in Sections 7.01(e) and (f) have been delivered to the Lender, (e) that is not subject to any Material Investment Event (unless otherwise agreed by the Lender in its sole discretion), and (f) that is not subject to any Borrower Pledge Restriction.

"<u>Employee Plan</u>" means, at any time, an "employee pension benefit plan" as defined in Section 3(2) of ERISA (other than a Multiemployer Plan) that is subject to Title IV of ERISA, Section 412 of the Code or Section 302 of ERISA.

"<u>Equity Interests</u>" means, with respect to any Person, all (a) shares, interests, participations or other equivalents (howsoever designated) of capital stock and other equity interests of such Person, including without limitation partnership interests, limited partnership interests, general partnership interests or membership interests, whether common or preferred and whether voting or non-voting or any other "equity security" (as such term is defined in Rule 3a11-1 under the Securities Exchange Act of 1934, as amended), and (b) rights (other than debt securities convertible into capital stock or other equity interests), warrants or options to acquire any of the foregoing.

"<u>ERISA</u>" means the U.S. Employee Retirement Income Security Act of 1974, as amended.

"<u>ERISA Affiliate</u>" means any corporation or trade or business (whether or not incorporated) under common control that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code (or Section 414(m) or (o) of the Code for purposes of provisions relating to Section 412 of the Code).

"<u>Event of Default</u>" is defined in Section 9.01.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to any Recipient or required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case: (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of the Lender, the Lender's Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof); or (ii) that are Other Connection Taxes; (b) in the case of the Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of the Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which: (i) the Lender acquires such interest in the Loan or Commitment; or (ii) the Lender changes its Lender's Lending Office, except in each case to the extent that, pursuant to Section 2.09(a) or Section 2.09(c), amounts with respect to such Taxes were payable either to the Lender's assignor immediately before the Lender became a party hereto or to the Lender immediately before it changed its Lender's Lending Office; (c) Taxes attributable to such Recipient's failure to comply with Section 2.09(e); and (d) any U.S. federal withholding Taxes imposed pursuant to FATCA.

"<u>Extension Date</u>" is defined in Section 2.14(b).

"<u>Extension Request</u>" means a written request by the Borrower substantially in the form of Exhibit C to extend the then-applicable Stated Maturity Date.

"<u>Facility</u>" means the revolving loan facility provided by the Lender to the Borrower pursuant to this Agreement.

"<u>Facility Termination Date</u>" means the earlier of: (a) the Stated Maturity Date and (b) the date upon which the Lender declares the Obligations due and payable during the continuance of an Event of Default.

"<u>Fair Market Value</u>" means, as of any date of determination, with respect to any Portfolio Investment, the lesser of (a) the most recent fair market value of such asset or property as determined in good faith by the Borrower pursuant to an Internal Valuation and as set forth in the most recently delivered Borrowing Base Certificate and (b) the valuation, if any, provided by a Third Party Valuation Agent as contemplated by Section 11.01 subject to the dispute resolution provisions set forth in Section 11.01(b), in each case, subject, without double counting, to any adjustments applied by the Lender in respect of any Adjustment Event with respect to the Portfolio Investment (which adjustment may be based upon a valuation by a Third Party Valuation Agent if requested by the Lender and which may result in a reduction of up to 100% of the Fair Market Value of the Portfolio Investment as determined by the Lender) or other adjustment applied by the Lender with respect to any equity contributions made to or distributions made from the Portfolio Investment subsequent to such Internal Valuation or valuation provided by a Third Party Valuation Agent (if any), as applicable. If the Internal Valuation or the valuation provided by a Third Party Valuation Agent has not been provided in accordance with the terms of this Agreement, the Lender may determine the Fair Market Value of the relevant Portfolio Investment in its reasonable discretion (which may be zero) until such Internal Valuation or valuation of a Third Party Valuation Agent has been provided in accordance with the terms of this Agreement. If the value of any Portfolio Investment is reported in a currency other than Dollars, then for purposes of determining the Fair Market Value of such Portfolio Investment, the currency of such Portfolio Investment shall be promptly converted into Dollars and reported in accordance with the usual and customary policies and procedures of the Borrower. For the avoidance of doubt, the valuation in clause (b) shall refer to the midpoint of ranges (if any) listed in the report of such Third Party Valuation Agent. Notwithstanding the foregoing, the Fair Market Value of the Portfolio Investments as of the Closing Date shall be as set forth on the Borrowing Base Certificate delivered by the Borrower on the Closing Date.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the Closing Date (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code and any U.S. or non-U.S. fiscal or regulatory legislation, guidance notes, rules or official administrative practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code and analogous provisions of non-U.S. law.

"<u>Federal Reserve Board</u>" means the Board of Governors of the Federal Reserve System of the United States.

"<u>Fiscal Quarter</u>" or "<u>fiscal quarter</u>" means any quarter of a Fiscal Year.

"<u>Fiscal Year</u>" means the fiscal year of the Borrower, which shall be the twelve (12) month period ending on December 31 in each year.

"<u>Floor</u>" means 4.00% per annum.

"<u>Foreign Lender</u>" means a Lender that is not a U.S. Person.

"<u>Funding Date</u>" shall have the meaning attributed thereto in Section 2.01(a).

"<u>GAAP</u>" means generally accepted accounting principles as in effect in the United States of America on the Closing Date, <u>provided</u> that for purposes of the financial statements required to be delivered pursuant to Section 7.01, "GAAP" means generally accepted accounting principles as in effect in the United States of America from time to time.

"<u>Governmental Approval</u>" means an authorization, consent, approval, permit or license issued by, or a registration or filing with, any Governmental Authority.

"<u>Governmental Authority</u>" means the government of the United States or any other nation, or of any political subdivision thereof, whether state, territorial, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

"<u>Indemnified Taxes</u>" means: (a) Taxes other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document; and (b) to the extent not otherwise described in clause (a), Other Taxes.

"<u>Indemnitee</u>" is defined in Section 11.02(b).

"<u>Insolvency Proceeding</u>" means a receivership, insolvency, liquidation, resolution or similar proceeding.

"<u>Interest Payment Date</u>" means with respect to each Loan, the earlier to occur of (a) the Loan Maturity Date and (b) the Stated Maturity Date.

"<u>Intermediate Vehicle</u>" means each entity through which the Borrower indirectly owns a beneficial interest in a Portfolio Investment, in each case, as set forth on the Borrowing Base Certificate delivered by the Borrower on the Closing Date (as may be updated and supplemented by the Borrower from time to time in accordance with the terms hereof).

"<u>Intermediate Vehicle MAE Event</u>" means, with respect to any Intermediate Vehicle, the occurrence of: (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent) or financial condition of such Intermediate Vehicle; (b) such Intermediate Vehicle failing to be Solvent; or (c) the commencement of any proceeding under a Debtor Relief Law with respect to such Intermediate Vehicle if such proceeding would result in an Event of Default under Section 9.01(f) or (g) (treating such Intermediate Vehicle as if it were subject to Section 9.01(f) or (g)).

"<u>Internal Valuation</u>" is defined in Section 7.11.

"<u>Investment</u>" means, as applied to any Person, (a) any direct or indirect acquisition by that Person of securities or partnership interests or other interest of any other Person, or all or any substantial part of the business or assets of any other Person, and (b) any direct or indirect loan, advance or capital contribution by that Person to any other Person.

"<u>Investment Advisory Agreement</u>" mean, the Investment Advisory Agreement dated as of September 16, 2025 by and between Manager and the Borrower.

"<u>Investment Company Act</u>" means the U.S. Investment Company Act of 1940, as amended, and the rules and regulations of the SEC thereunder, as modified or interpreted by orders of the SEC, or other interpretative releases or letters issued by the SEC or its staff, all as from time to time in effect, or any successor law, rules or regulations, and any reference to any statutory or regulatory provision shall be deemed to be a reference to any successor statutory or regulatory provision.

"<u>Investor</u>" means, with respect to the Borrower, from time to time, each Person party to the Borrower's Constituent Documents as a limited partner, as listed as such in the books and records of the Borrower.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>Judgment Currency</u>" is defined in Section 11.20.

"<u>Lender</u>" is defined in the Preamble and includes any successor thereto.

"<u>Lender's Lending Office</u>" means the office, branch or Affiliate of the Lender identified in <u>Schedule 1.01</u> or such other office, branch or Affiliate as the Lender may hereafter designate as by notice to the Borrower.

"<u>Lien</u>" means any lien, mortgage, pledge, security interest, charge, or encumbrance of any kind (including any conditional sale or other title retention agreement or any lease in the nature thereof) and any agreement to give or refrain from giving any lien, mortgage, pledge, security interest, charge, or other encumbrance of any kind.

"<u>Loan Documents</u>" means, collectively, this Agreement, any Notes, the Collateral Documents, the Fee Letter and any other agreement, instrument or other writing executed and delivered to the Lender by the Borrower in connection herewith, and all amendments, exhibits and schedules to any of the foregoing.

"<u>Loan Maturity Date</u>" means, with respect to each Loan, the thirtieth day after the making of such Loan, unless such day is not a Business Day in which case the Loan Maturity Date shall be the next succeeding Business Day.

"<u>Loan Notice</u>" shall have the meaning attributed thereto in Section 2.01(a).

"<u>Loan to Value Ratio</u>" or "<u>LTV</u>" means the ratio of (a) the Principal Obligations to (b) the Borrowing Base.

"<u>Loans</u>" means the loans made or to be made by the Lender to the Borrower pursuant to the terms and conditions of this Agreement.

"<u>Manager</u>" means Akkadian CEF Manager, LLC, in its capacity as the investment advisor to the Borrower.

"<u>Managing Entity</u>" means, in respect of any Person, any sponsor, general partner, managing member, investment manager, manager or other Person acting in a similar capacity with respect to such Person, if applicable. The Managing Entity of the Borrower is the Manager and the Managing Entity of each Portfolio Company is listed on the Borrowing Base Certificate delivered by the Borrower on the Closing Date (as may be updated and supplemented by the Borrower from time to time in accordance with the terms hereof).

"<u>Margin Regulations</u>" means Regulations T, U and X of the Federal Reserve Board, as amended from time to time.

"<u>Margin Stock</u>" means "margin stock" as defined in the Margin Regulations.

"<u>Material Adverse Effect</u>" means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent) or financial condition of the Borrower, taken as a whole; (b) any material adverse effect upon the validity, performance or enforceability against the Borrower with respect to the Loan Documents, taken as a whole; (c) any material adverse effect on the ability of the Borrower to fulfill its obligations under any Loan Document or (d) any material adverse effect on the ability of the Lender to exercise its rights and remedies under any Loan Document.

"<u>Material Amendment</u>" is defined in Section 8.08(a).

"<u>Material Investment Event</u>" means any of the following with respect to a Portfolio Investment: (a) the applicable Portfolio Company has become subject to an event described in Sections 9.01(f), (g) or (m) (treating such Portfolio Company as if it were subject to Sections 9.01(f), (g) or (m), as applicable); (b) the applicable Portfolio Company has become subject to an event described in Sections 9.01(i) or (l) (treating such Portfolio Company as if it were subject to Sections 9.01(i) or (l), as applicable, and with a "Threshold Amount" equal to $250,000); (c) the applicable Portfolio Company has become subject to (i) Sanctions, (ii) any nationalization or takeover by a governmental or regulatory authority, or any governmental or regulatory investigation or proceeding or (iii) any other legal restrictions, in each case that could reasonably be expected to have a material adverse effect on the value of such Portfolio Investment; and (d) the applicable Portfolio Company has become the subject of an initial public offering.

"<u>Maximum Rate</u>" means, on any day, the highest rate of interest (if any) permitted by Applicable Law on such day.

"<u>Max LTV</u>" means 13.33%.

"<u>Max LTV Breach</u>" is defined in Section 2.05(b).

"<u>Multiemployer Plan</u>" means, at any time, a "multiemployer plan" (as defined in Section 4001(a)(3) of ERISA).

"<u>Net Investment Proceeds</u>" means (a) the cash proceeds of the Disposition, realization or Distributions of any Portfolio Investment <u>minus</u> (b) the sum of (i) all fees, Taxes and expenses paid or payable by the Borrower in the ordinary course of business in respect of such transaction and (ii) only if no Cash Control Event has occurred and is continuing, the management fees paid or payable by the Borrower to the Manager pursuant to the Investment Advisory Agreement.

"<u>New Valuation</u>" is defined in Section 11.01(b).

"<u>Note</u>" means each Note made by the Borrower payable to the Lender in substantially the form of <u>Exhibit A</u>, as amended from time to time.

"<u>Obligations</u>" means all present and future obligations and liabilities of the Borrower of every type and description arising under the Loan Documents (or as provided therein, arising in connection therewith) due or to become due to the Lender, or any other Person entitled to indemnification under the Loan Documents, whether for principal, interest, expenses, indemnities or other amounts (including attorneys' fees and expenses) and whether due or not due, direct or indirect, joint, several, absolute or contingent, voluntary or involuntary, liquidated or unliquidated, determined or undetermined, and whether now or hereafter existing, renewed or restructured.

"<u>OFAC</u>" means the Office of Foreign Assets Control of the United States Department of the Treasury.

"<u>Other Connection Taxes</u>" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.13(b)).

"<u>Participant</u>" is defined in Section 11.06(e).

"<u>Participant Register</u>" is defined in Section 11.06(e).

"<u>Permitted Debt</u>" 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) the 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) Debt (other than indebtedness for borrowed money) constituting Contractual Obligations (1) incurred in the ordinary course of business and (2) permitted to be incurred in accordance with the Borrower's Constituent 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;(c) Debt to the Account Bank incurred for the purposes of clearing and settling transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unpaid management fees and declared, but unpaid dividends or distributions, to the extent (1) incurred in the ordinary course of business, (2) permitted to be incurred in accordance with the Borrower's Constituent Documents and (3) with respect to dividends or distributions, permitted pursuant to Section 8.03.

"<u>Permitted Liens</u>" is defined in Section 8.01.

"<u>Person</u>" means any individual, sole proprietorship, joint venture, association, trust, estate, business trust, corporation, company, limited liability company, limited liability partnership, limited partnership, nonprofit corporation, partnership, group, sector, sovereign government or agency, instrumentality, or political subdivision thereof, territory, or any similar entity or organization.

"<u>Plan Asset Regulation</u>" means 29 C.F.R. § 2510.3-101, *et seq.*, as modified by Section 3(42) of ERISA.

"<u>Plan Assets</u>" means "plan assets" within the meaning of the Plan Asset Regulation.

"<u>Pledge Agreement</u>" means the pledge agreement dated as of the Closing Date by and among the Lender and the Borrower pledging the Collateral in favor of the Lender, substantially in the form of <u>Exhibit D</u> hereto, as may be amended, restated, amended and restated, supplemented or otherwise modified from time to time.

"<u>Portfolio</u>" means, collectively, all of the Portfolio Investments.

"<u>Portfolio Company</u>" means each company in which the Borrower or an Intermediate Vehicle directly holds an Equity Interest as a result of a Portfolio Investment, together with its Subsidiaries. Each Portfolio Company shall be listed on the Borrowing Base Certificate delivered by the Borrower on the Closing Date (as may be updated and supplemented by the Borrower from time to time in accordance with the terms hereof).

"<u>Portfolio Investment</u>" means any Equity Interests owned by the Borrower or Intermediate Vehicle in a Portfolio Company. Each Portfolio Investment shall be listed on the Borrowing Base Certificate delivered by the Borrower on the Closing Date (as may be updated and supplemented by the Borrower from time to time in accordance with the terms hereof).

"<u>Preamble</u>" means the preamble to this agreement.

"<u>Prime Rate</u>" means, on any day, the rate of interest per annum last quoted by The Wall Street Journal as the "Prime Rate" in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the "bank prime loan" rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Lender) or any similar release by the Federal Reserve Board (as determined by the Lender). Any change in the Prime Rate shall take effect at the opening of business on the day such change is publicly announced or quoted as being effective; provided that if such rate is less than the Floor, such rate shall be deemed to be the Floor for purposes of this Agreement. Any change in the Prime Rate shall be effective from and including the effective date of such change in the Prime Rate.

"<u>Principal Obligations</u>" means, at any time, the aggregate outstanding principal amount of all Loans.

"<u>Proceeds</u>" means the cash proceeds of the Disposition, realization or Distributions of any Portfolio Investment.

"<u>Projections</u>" is defined in Section 4.10(a).

"<u>Recipient</u>" means the Lender.

"<u>Register</u>" is defined in Section 11.06(d).

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Repayment Cutoff Date</u>" is defined in Section 2.05(b).

"<u>Repayment Plan</u>" is defined in Section 2.05(b).

"<u>Required Distributions</u>" means distributions in an amount required to allow the Borrower to avoid the imposition of any entity-level tax, qualify as a registered investment company and/or maintain registered investment company status.

"<u>Responsible Officer</u>" means any director, managing director, chief executive officer, president, vice president, chief financial officer, chief operating officer, treasurer, assistant treasurer or controller of a Person or a general partner or manager of a Person. Any document delivered hereunder that is signed by a Responsible Officer of the Borrower or Intermediate Vehicle (as applicable) shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of the Borrower or Intermediate Vehicle (as applicable), and such Responsible Officer shall be conclusively presumed to have acted on behalf of the Borrower or Intermediate Vehicle (as applicable).

"<u>Sanctioned Person</u>" means any individual, entity, group, sector, territory or country that is the subject or target of any Sanctions, including without limitation, any legal entity that is deemed to be a target of Sanctions based on the direct or indirect ownership or control of such entity by any other Sanctioned Person.

"<u>Sanctions</u>" means individually and collectively, respectively, any and all economic sanctions, sectoral sanctions, secondary sanctions, trade embargoes and anti-terrorism laws, including but not limited to those imposed, administered or enforced from time to time by: (a) the United States of America, including those administered by OFAC, the U.S. Department of State, the U.S. Department of Commerce, or through any existing or future Executive Order; (b) the United Nations Security Council; (c) the European Union (including any member state thereof); (d) the United Kingdom; or (e) any other Governmental Authorities with jurisdiction over the Borrower or its Subsidiaries.

"<u>Similar Law</u>" means any law, rule or regulation that is substantially similar to Section 406 of ERISA and/or Section 4975 of the Code.

"<u>Solvent</u>" and "<u>Solvency</u>" mean, with respect to any Person on any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person's ability to pay such debts and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person's property would constitute an unreasonably small capital, and (e) such Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business. The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"<u>Stated Maturity Date</u>" means December 31, 2027, subject to Borrowers' extension of such date under Section 2.14.

"<u>Subordinated Claims</u>" is defined in Section 5.04.

"<u>Subsidiary</u>" means, with respect to any Person, any other Person of which (a) more than fifty percent (50%) of the total voting power of the Equity Interests entitled to vote in the election of the board of directors (or other Persons performing similar functions) are at the time directly or indirectly owned by such first Person or (b) such first Person has effective Control, by contract or otherwise, over such other Person.

"<u>Swap Obligation</u>" means the obligations of the Borrower in respect of any Swap Contract. A "<u>Swap Contract</u>" means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a "<u>Master Agreement</u>"), including any such obligations or liabilities under any Master Agreement. At any time the amount of such obligations shall mean, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include the Lender or any Affiliate of the Lender).

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Third Party Valuation Agent</u>" means a third party nationally recognized advisory firm identified by or acceptable to each of the Lender and the Borrower (each acting in its reasonable discretion); <u>provided</u>, <u>however</u>, that in the event the Lender and the Borrower do not agree on an advisory firm pursuant to the preceding language, the "Third Party Valuation Agent" shall be a third party nationally recognized advisory firm identified by the Lender.

"<u>Threshold Amount</u>" means $250,000.

"<u>U.S. Person</u>" means any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

"<u>U.S. Special Resolution Regimes</u>" is defined in Section 11.26.

"<u>U.S. Tax Compliance Certificate</u>" has the meaning specified in Section 2.09(e)(ii)(B)(3).

"<u>Valuation Policy</u>" means, as applicable, (x) the investment policy of the Borrower relating to the Portfolio Investments and (y) the valuation policies of the Borrower relating to the Portfolio Investments applied in a manner consistent with past practice.

"<u>Withholding Agent</u>" means the Borrower and the Lender, as applicable.

"<u>Write-Down</u>" is defined in Section 7.11.

"<u>Write-Down Valuation</u>" is defined in Section 7.11.

Section 1.02 <u>Related Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Construction</u>. Unless the context of this Agreement clearly requires otherwise, references to the plural include the singular, the singular includes the plural, the part includes the whole, "including" is not limiting. The words "hereof," "herein," "hereby," "hereunder" and similar terms in this Agreement refer to this Agreement as a whole (including the Preamble, the Schedules and the Exhibits) and not to any particular provision of this Agreement. Article, section, subsection, exhibit, schedule and preamble references in this Agreement are to this Agreement unless otherwise specified. Any definition of or reference to any agreement (including this Agreement and the other Loan Documents), instrument or other document herein or in any other Loan Document shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, amended and restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, amendments and restatements, supplements or other modifications set forth herein). References in this Agreement to any agreement, instrument, other document or law "as amended" or "as amended from time to time," or to amendments of any document or law, shall include any amendments, supplements, replacements, renewals, waivers or other modifications. References in this Agreement to any law (or any part thereof) include any rules and regulations promulgated thereunder (or with respect to such part) by the relevant Governmental Authority, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Determination</u>. Any determination or calculation contemplated by this Agreement that is made by the Lender shall be conclusive in the absence of demonstrable error. References in this Agreement to any "determination" by the Lender include good faith estimates by the Lender (in the case of quantitative determinations), and good faith beliefs by the Lender (in the case of qualitative determinations).

&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>Other Terms and Determinations</u>. Unless otherwise specified herein (and whether or not expressly stated), (i) all non-capitalized terms defined in Article 8 or 9 of the Uniform Commercial Code, as in effect in the State of New York from time to time, are used herein as so defined and (ii) all accounting terms used herein shall be interpreted and all accounting determinations hereunder shall be made, in each case, in accordance with GAAP and (iii) all financial statements required to be delivered hereunder shall be prepared in accordance with GAAP, consistently applied throughout the period covered thereby, except as otherwise expressly noted therein (with respect to non-audited financial statements, subject to the absence of footnotes and normal year-end adjustments). Notwithstanding the foregoing, if at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Lender shall so request, the Lender and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; <u>provided</u> that, until so amended, such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein (e.g., any lease that would be characterized as an operating lease in accordance with GAAP on the Closing Date (whether or not such operating lease was in effect on such date) shall be accounted for as an operating lease (and not as a capital lease) for purposes of any such ratio or requirement regardless of any change in GAAP until such time that the parties amend such ratio or requirement to preserve the original intent thereof in light of the change in GAAP).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Divisions.</u> Any reference herein to a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, shall be deemed to apply to a division of or by a limited liability company, or an allocation of assets to a series of a limited liability company (or the unwinding of such a division or allocation), as if it were a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, as applicable, to, of or with a separate Person. Any division of a limited liability company shall constitute a separate Person hereunder (and each division of any limited liability company that is a Subsidiary, joint venture or any other like term shall also constitute such a Person or entity).

**Article 2<br>Amount and Terms of The Credit Facility**

Section 2.01 <u>Loans</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>Loans</u>. The Borrower may request Loans from time to time up to four times in any calendar year, during the Commitment Period in an amount not to exceed the amount of the remaining Commitment of the Lender at such time, in each case, by delivery of an irrevocable written loan notice (the "<u>Loan Notice</u>") which shall be furnished to Lender no later than 12:00 p.m. (New York time), at least one (1) Business Day prior to the requested date of Borrowing (or such shorter period as permitted by the Lender in its sole discretion, but not later than 12:00 p.m. (New York time) on the proposed Funding Date). Each Loan Notice shall be signed by a Responsible Officer of the Borrower in the form of <u>Exhibit G</u> and shall specify: (i) the requested date of the Borrowing (which shall be a Business Day) (the actual date of the Borrowing, the "<u>Funding Date</u>"), (ii) the principal amount of the Loan to be borrowed, and (iii) a calculation of the Borrowing Base and the Loan to Value Ratio (in each case after giving effect to the requested Borrowing), which Loan to Value Ratio shall not exceed the Max LTV. In no event shall the Lender be required to fund any Loan if, after giving effect thereto, the aggregate outstanding principal amount of the Loans would exceed the Lender's Commitment. If any Loan Notice is received by the Lender after 12:00 p.m. (New York time) or on a day that is not a Business Day, such Loan Notice may be deemed to be received by the Lender at 9:00 a.m. (New York time) on the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Revolving Facility</u>. The facility represented by this Agreement is a revolving facility and, subject to the terms of this Agreement, the Borrower may borrow, repay and re-borrow Loans during the Commitment 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;(c) <u>Funding</u>. On each Funding Date, not later than 12:00 p.m. (New York time) or such later time as may be agreed to by the Borrower and Lender, and subject to and upon satisfaction of the applicable conditions set forth in Article 3, the Lender will make the Loan, as applicable, on such Funding Date, provided that at no time shall the Principal Obligations exceed the Commitment Amount. Each Loan shall be funded into the Collateral Account.

Section 2.02 <u>Use of Proceeds</u>. (a) The proceeds of the Loans shall be used by the Borrower (i) to make capital contributions in respect of Portfolio Investments, (ii) to make Portfolio Investments, (iii) to make Required Distributions to its Investors and (iv) for other working capital purposes, in each case to the extent permitted under the Constituent Documents of the Borrower and in compliance with the Investment Company Act, as applicable. In no event shall proceeds of the Loans be used to pay management fees to the Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No part of the proceeds of the Loans shall be used directly or indirectly for the purpose, whether immediate, incidental or ultimate, of purchasing or carrying any Margin Stock or maintaining or extending credit to others for such purpose or for any other purpose that otherwise violates the Margin Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Lender shall not have any liability, obligation, or responsibility whatsoever with respect to the use of the proceeds of the Loans, and the Lender shall not be obligated to determine whether or not the use of the proceeds of the Loans are for purposes permitted under the Constituent Documents of the Borrower. Nothing, including, without limitation, any Borrowing, any continuation thereof, or acceptance of any other document or instrument, shall be construed as a representation or warranty, express or implied, to any party by the Lender as to whether any Investment is permitted by the terms of the Constituent Documents of the Borrower.

Section 2.03 <u>Interest; Fees</u>. (a) <u>Interest Rate</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Interest Rate</u>. Subject to the provisions of clause (ii) below and Section 2.07, each Loan shall bear interest on the Principal Obligation at a rate per annum equal to the Prime Rate, as of the date of funding of such Loan plus the Applicable Margin. Accrued interest on Loans shall be payable in arrears on each Loan Maturity Date or when the Loans shall otherwise become due (whether at maturity, by reason of prepayment, acceleration 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;(ii) <u>Overdue Amounts</u>. (A) While any Event of Default exists or if a Max LTV Breach has occurred and is continuing, at the election of the Lender, the Principal Obligations and each other amount payable by the Borrower under any Loan Document shall bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate, from the date of the occurrence of such Event of Default or Max LTV Breach until such Event of Default or Max LTV Breach is cured or is waived.

&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>Payment of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Interest</u>. Interest on a Borrowing and any portion thereof shall commence to accrue in accordance with the terms of this Agreement and the other Loan Documents as of the date of the disbursal or wire transfer of such Borrowing by Lender, consistent with the provisions of this Section 2.03. With regard to the repayment of the Loans, interest shall continue to accrue on any amount repaid until such time as the repayment has been received by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Interest Payment Dates; Capitalization</u>. Accrued and unpaid interest (A) on the Obligations shall be due and payable in arrears on each Interest Payment Date and (B) on any Obligation of the Borrower hereunder on which the Borrower is in default shall be due and payable at any time and from time to time upon demand by the Lender. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief 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;(c) <u>Determination of Rate</u>. The Lender shall promptly upon request notify the Borrower of the interest rate applicable to any Loan after determination of such interest rate. The determination of the applicable interest rate by Lender shall be conclusive in the absence of manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Computations of Interest and Fees</u>. All computations of fees shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year). All computations of interest shall be made on the basis of a 365-day year and actual days elapsed. Interest shall accrue on each Loan from and including the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, <u>provided</u> that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.04, bear interest for one 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;(e) <u>Upfront Fee</u>. The Borrower shall pay to the Lender, as compensation for the Facility, an upfront fee in an amount equal to the product of the Commitment Amount and one-hundred basis points (1.00%). Such fee shall be payable in cash on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Commitment Fee</u>. The Borrower shall pay to the Lender a commitment fee on the undrawn portion of the Lender's Commitment, for each 12-month (or portion thereof) from and including the Closing Date to, but excluding the earlier of the date the Commitments are terminated or the Stated Maturity Date, in an amount equal to the product of (i) the difference between the average Commitment Amount and the average daily balance of the Principal Obligations during the relevant period, (ii) twenty-five basis points (0.25%) *per annum*, (iii) the number of days in the relevant period and (iv) 1/360. Such fee shall be payable in cash in arrears on each Extension Date, in each case for the period then ending for which the commitment fee shall not have previously been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Rates</u>. The Lender does not warrant or accept responsibility for, and shall not have any liability with respect to the continuation of, administration of, submission of, calculation of or any other matter related to the Prime Rate, the Alternate Base Rate, or any component definition thereof or rates referred to in the definition thereof, or any alternative, successor or replacement rate thereto, including whether the composition or characteristics of any such alternative, successor or replacement rate will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Alternate Base Rate, the Prime Rate or any other applicable rate prior to its discontinuance or unavailability. The Lender and its affiliates or other related entities may engage in transactions that affect the calculation of the Prime Rate, the Alternate Base Rate, any alternative, successor or replacement rate or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Lender may select information sources or services in its reasonable discretion to ascertain the Prime Rate, the Alternate Base Rate or any other applicable rate, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, the Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

Section 2.04 <u>Notes; Payment of Obligations</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>Notes</u>. The Lender may request that its Loans to the Borrower hereunder shall be evidenced by promissory notes of the Borrower. Such requested Note shall be: (i) payable to the Lender; (ii) bear interest in accordance with Section 2.03; (iii) be in the form of <u>Exhibit A</u> attached hereto (with blanks appropriately completed in conformity herewith); and (iv) be made by the Borrower. Notwithstanding the foregoing, the Lender may request that the Borrower issue a new or replacement Note, and in such event, the Borrower shall prepare, execute and deliver to the Lender a Note payable to the Lender or a replacement Note in accordance with the terms and in the form heretofore provided.

&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>Maturity</u>. Each Loan shall mature, and the Borrower irrevocably agrees to pay the Principal Obligations thereof, together with accrued and unpaid interest thereon, and all accrued fees and other amounts due and payable thereon on the earlier to occur of (a) the applicable Loan Maturity Date and (b) the Facility Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payments Generally</u>. All payments of principal of and interest on the Obligations under this Agreement by the Borrower to or for the account of the Lender shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff by the Borrower. Except as otherwise expressly provided herein, any and all payments by the Borrower hereunder shall be made to the Lender at Lender's Lending Office in Dollars not later than 1:00 p.m. (New York time) on the applicable dates specified 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;(d) <u>Location of Payments</u>. Without limiting the generality of the foregoing, the Lender shall require that any payments due under this Agreement be made in the United States. Funds received after 1:00 p.m. (New York time) may be treated for all purposes as having been received by the Lender on the first Business Day next following receipt of such funds and any applicable interest or fees shall continue to accrue. If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

Section 2.05 <u>Prepayments</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>Optional Prepayments</u>. (i) The Borrower may, upon written notice to the Lender, at any time or from time to time voluntarily prepay Loans (which prepayment date shall be a Business Day not less than one (1) Business Day after the date of such notice if the Lender receives such notice by 3:00 p.m. (New York time)) in whole or in part without premium or penalty. Any prepayment notice provided pursuant to this Section 2.05(a) shall specify the date and amount of such prepayment. Any prepayment of a Loan shall be accompanied by all accrued interest thereon, together with any additional amounts specified herein or required pursuant to Section 2.10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Max LTV Breach</u>. If, on any day, the Loan to Value Ratio on such date is greater than the Max LTV (including, as a result of the reduction in the Fair Market Value of an Eligible Investment, a Material Investment Event, application of the Concentration Limit, a change in the status of an Eligible Investment or an Eligible Intermediate Vehicle or a complete or partial sale or realization of an Eligible Investment) (a "<u>Max LTV Breach</u>"), then in each case the Borrower shall be required to apply all Net Investment Proceeds received by the Borrower to repay the Loans, and the Borrower shall provide a plan acceptable to the Lender in its sole discretion (the "<u>Repayment Plan</u>") within thirty (30) days (which may involve engagement of a nationally recognized appraiser or investment banking firm to conduct a sale of assets, a recapitalization of the Borrower or other measures) that is reasonably likely to result in a repayment of the Facility in a sufficient amount to reduce the Loan to Value Ratio below the Max LTV within one hundred twenty (120) days (the "<u>Repayment Cutoff Date</u>"). The Repayment Plan shall not be amended or modified without the prior written approval of the Lender in its sole discretion, and such Repayment Plan must remain in place at all times until the earlier of (a) the Repayment Cutoff Date and (b) the date the Loan to Value Ratio is reduced below the Max LTV.

Section 2.06 <u>Manner of Payment</u>. Except as otherwise expressly provided, the Borrower shall make each payment under the Loan Documents to the Lender in Dollars and in immediately available funds, without any deduction whatsoever, including any deduction for any setoff, recoupment, counterclaim or Taxes (other than Excluded Taxes) except as required by Applicable Laws, at Lender's Lending Office not later than 1:00 p.m. (New York time) on the due date thereof, in accordance with Sections 2.04(c) and 2.04(d). Subject to Section 11.10, following the occurrence and during the continuance of an Event of Default, the Lender shall have the right, at any time, to charge any account of the Borrower maintained with the Lender for the amount of any payment due by the Borrower under the Loan Documents or to deduct the amount of any such payment from any remittance due to the Borrower hereunder. Delivery shall be made in accordance with the written instructions satisfactory to the Lender.

Section 2.07 <u>Increased Costs Generally</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>Change in Law</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than: (A) Indemnified Taxes; (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes; and (C) Connection Income Taxes) on its loans, loan principal, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; 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;(iii) impose on the Lender or any relevant financial market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by the Lender;

and the result of any of the foregoing shall be to increase the cost to the Lender of making or maintaining any Loan or of maintaining its obligation to make any such Loan, or to reduce the amount of any sum received or receivable by the Lender hereunder (whether of principal, interest or any other amount) then, upon request of the Lender, the Borrower will pay to the Lender such additional amount or amounts as will compensate the Lender for such additional costs incurred or reduction suffered.

&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>Capital Requirements</u>. If the Lender determines that any Change in Law affecting the Lender or the Lender's Lending Office or the Lender's holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on the Lender's capital or on the capital of the Lender's holding company, if any, as a consequence of this Agreement, the Commitment of the Lender or the Loans made by the Lender to a level below that which the Lender or the Lender's holding company could have achieved but for such Change in Law (taking into consideration the Lender's policies and the policies of the Lender's holding company with respect to capital adequacy), then from time to time the Borrower will pay to the Lender, such additional amount or amounts as will compensate the Lender or the Lender's holding company for any such reduction suffered.

&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>Certificates for Reimbursement</u>. A certificate of the Lender setting forth the amount or amounts necessary to compensate the Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay the Lender the amount shown as due on any such certificate within ten (10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delay in Requests</u>. Failure or delay on the part of the Lender to demand compensation pursuant to the foregoing provisions of this Section 2.07 shall not constitute a waiver of the Lender's right to demand such compensation; <u>provided</u> that the Borrower shall not be required to compensate the Lender pursuant to this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that the Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of the Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

Section 2.08 <u>Mandatory Suspension of Loans</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>Illegality</u>. If the Lender determines, reasonably and in good faith, that any Applicable Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for the Lender or the Lender's Lending Office to make, maintain or continue the Loans, or any Governmental Authority has imposed material restrictions on the authority of the Lender to purchase or sell, or to take deposits of, Dollars, on notice thereof by the Lender to the Borrower: any obligation of the Lender to make, maintain, convert or continue the affected Loans shall be suspended. The Lender agrees to designate a different Lender's Lending Office and take such other reasonable action if such designation or action will avoid the need for such notice and will not, in the good faith judgment of the Lender, otherwise be disadvantageous to the Lender. Upon receipt of such notice, the Borrower shall, upon demand from the Lender, prepay such Loans on the Loan Maturity Date therefor, if the Lender may lawfully continue to maintain such Loans to such day, or, if the Lender may not lawfully continue to maintain Loans, immediately. Upon any such prepayment, the Borrower shall also pay accrued interest on the amount so prepaid.

&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>Inability to Determine Rates</u>. If the Lender determines that for any reason in connection with any request for a Loan that: (i) adequate and reasonable means do not exist for determining the Prime Rate with respect to a proposed Loan; (ii) the Lender or the Lender's Lending Office is prohibited from making, maintaining or continuing the Loans or charging interest rates based upon the Prime Rate; or (iii) the Prime Rate with respect to a proposed Loan does not adequately and fairly reflect the cost to the Lender of funding such Loan, the Lender will promptly so notify the Borrower. Thereafter: (x) the obligation of the Lender to make or maintain such Loans based on the Prime Rate shall be suspended, and (y) interest shall accrue daily on the Loans at a rate equal to the Alternate Base Rate plus the Applicable Margin, in each case until the Lender revokes such notice, whereupon interest on such Loan shall again be determined in accordance with the provisions of Section 2.03 commencing on the first day succeeding the date of such notice.

Section 2.09 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes</u>. Any and all payments by or on account of any obligation of the Borrower hereunder or under any other Loan Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Laws. If any Applicable Laws (as determined in the good faith discretion of the applicable Withholding Agent) require the deduction or withholding of any Tax from any such payment by a Withholding Agent, the applicable Withholding Agent shall be entitled to make such deduction or withholding, and shall timely pay the full amount withheld or deducted to the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified Tax, the sum payable by the Borrower shall be increased as necessary so that after any required withholding or the making of all required deductions (including deductions or withholdings applicable to additional sums payable under this Section 2.09(a)) the applicable Recipient receives an amount equal to the sum it would have received had no such withholding or deduction been made.

&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>Payment of Other Taxes by Borrower</u>. The Borrower shall timely pay to the relevant Governmental Authority in accordance with Applicable Laws, or at the option of the Lender, timely reimburse it for the payment of, any Other 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;(c) <u>Tax Indemnification</u>. The Borrower shall and does hereby indemnify each Recipient, and shall make payment in respect thereof within fifteen (15) Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 2.09) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of any such payment or liability delivered to the Borrower by the Lender shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 2.09, the Borrower shall deliver to the Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Status of the Lender; Tax Documentation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Lender is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document, it shall deliver to the Borrower, at the time or times reasonably requested by the Borrower, such properly completed and executed documentation reasonably requested by the Borrower as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, the Lender, if reasonably requested by the Borrower, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower as will enable the Borrower to determine whether or not the Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Sections 2.09(e)(ii)(A), 2.09(e)(ii)(B) and 2.09(e)(ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject the Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Without limiting the generality of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if the Lender is a U.S. Person, it shall deliver to the Borrower (and from time to time thereafter upon the reasonable request of the Borrower or Lender), executed copies of IRS Form W-9 (or any successor forms) certifying that the Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Lender is a Foreign Lender, it shall, to the extent it is legally entitled to do so, deliver to the Borrower and Lender (in such number of copies as shall be requested by the recipient) on or prior to the date of this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or Lender), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party: (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN or W-8BEN-E (or any successor forms), as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty; and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or W- 8BEN-E (or any successor forms), as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) executed copies of IRS Form W-8ECI (or any successor forms);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code; (x) a certificate substantially in the form of <u>Exhibit I-1</u> to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "<u>U.S. Tax Compliance Certificate</u>"); and (y) executed copies of IRS Form W-8BEN-E or W-8BEN (or any successor forms), as applicable; 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) to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY (or any successor forms), accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E (or any successor forms), a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-2</u> or <u>Exhibit I-3</u>, IRS Form W-9 (or any successor forms), and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-4</u> on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Lender is a Foreign Lender, it shall, to the extent it is legally entitled to do so, deliver to the Borrower (in such number of copies as shall be requested by the recipient) on or prior to the date of this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or Lender), executed copies of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to the Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if the Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), the Lender shall deliver to the Borrower and the Lender at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Lender such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Lender as may be necessary for the Borrower and the Lender to comply with their obligations under FATCA and to determine that the Lender has complied with the Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this Section 2.09(e)(ii)(D), "<u>FATCA</u>" shall include any amendments made to FATCA after the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Lender agrees that if any form or certification it previously delivered pursuant to this Section 2.09 expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Lender in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Treatment of Certain Refunds</u>. If any Recipient determines, in its sole discretion, exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section 2.09, it shall pay to the Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section 2.09 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) incurred by such Recipient, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that the Borrower, upon the request of such Recipient, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Recipient in the event such Recipient is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this subsection, in no event will the applicable Recipient be required to pay any amount to the Borrower pursuant to this subsection the payment of which would place the Recipient in a less favorable net after-Tax position than such Recipient would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This Section 2.09(f) shall not be construed to require the Recipient to make available its tax returns (or any other information relating to its Taxes that it deems confidential) to the Borrower or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Survival</u>. Each party's obligations under this Section 2.09 shall survive the resignation or replacement of the Lender or any assignment of rights by, or the replacement of, the Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all other Obligations.

Section 2.10 <u>Compensation for Losses</u>. Upon demand of the Lender from time to time, the Borrower shall promptly compensate the Lender for and hold the Lender harmless from any loss, cost or expense actually incurred by it as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [reserved]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any failure by the Borrower (for a reason other than the failure of the Lender to make a Loan) to prepay or borrow any Loan on the date or in the amount notified by the Borrower;

excluding any loss of anticipated profits but including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained. The Borrower shall also pay any customary administrative fees charged by the Lender in connection with the foregoing. For the avoidance of doubt, this Section 2.10 shall not apply with respect to Taxes.

Section 2.11 <u>[Reserved]</u>.

Section 2.12 <u>Applicable Lending Office</u>. The Lender may make, carry or transfer Loans at, to, or for the account of an Affiliate of the Lender, <u>provided</u> that the Lender shall not be entitled to receive any greater amount under Section 2.07 as a result of the transfer of any such Loan than the Lender would be entitled to immediately prior thereto absent a Change in Law unless (a) such transfer occurred at a time when circumstances giving rise to the claim for such greater amount did not exist or (b) such claim would have arisen even if such transfer had not occurred. Notwithstanding any other provision of this Agreement, the Lender shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit.

Section 2.13 <u>Mitigation Obligations</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>Designation of a Different Lending Office</u>. If the Lender requests compensation under Section 2.07(a) or (b), or requires the Borrower to pay any Indemnified Taxes or additional amounts to the Lender or any Governmental Authority pursuant to Section 2.09, or if the Lender gives a notice pursuant to Section 2.08(a), then, at the request of the Borrower, the Lender shall use reasonable efforts to designate a different Lender's Lending Office for funding or booking its Loans or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of the Lender, such designation or assignment: (i) would eliminate or reduce amounts payable pursuant to Section 2.07(a) or (b) or Section 2.09, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 2.08(a), as applicable; and (ii) in each case, would not subject the Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to the Lender. In the event the Lender delivers notice of the occurrence and continuance of such illegality as set forth in Section 2.08(a), the Lender agrees to take commercially reasonable steps to attempt to remedy such illegality as set forth in Section 2.08(a) as promptly as practicable. The Borrower hereby agrees to pay all reasonable and documented costs and expenses incurred by the Lender in connection with any such designation or assignment.

Section 2.14 <u>Extension of Stated Maturity Date</u>. The Borrower shall have an option to extend the Stated Maturity Date then in effect for additional one (1) year terms, subject to satisfaction of the following conditions precedent:

&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 Lender has consented to such extension in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on or prior to the effective date of such extension (an "<u>Extension Date</u>"), the Borrower shall have paid to Lender an extension fee in an amount equal to fifty basis points (0.50%) of the amount of the Commitment Amount in effect after giving effect to such extension, as prorated for the number of days of such extension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as of the Stated Maturity Date then in effect, the representations and warranties set forth herein and in the other Loan Documents shall be true and correct in all material respects with the same force and effect as if made on and as of such date (except for such representations and warranties that expressly relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects with the same force and effect as if made on and as of such earlier date); <u>provided</u> that if a representation or warranty is qualified as to materiality, with respect to such representation or warranty, the foregoing materiality qualifier shall be disregarded for the purposes of this condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) no Default (including a Max LTV Breach) or Event of Default shall have occurred and be continuing on the date on which notice is given in accordance with <u>Section 2.14(e)</u> or on the Stated Maturity Date 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;(e) Borrowers shall have delivered an Extension Request to Lender not less than ninety (90) days (or such shorter time as the Lender may agree in its sole discretion) prior to the Stated Maturity Date then in effect.

**Article 3<br>CONDITIONS TO LOANS**

Section 3.01 <u>Closing Conditions</u>. The occurrence of the Closing Date shall be subject to satisfaction of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Certain Documents</u>. The Lender shall have received the documents listed in <u>Schedule 3.01</u>, executed by the parties thereto, all of which shall be in form and substance reasonably satisfactory to the Lender.

&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>Know-Your-Customer Related Information.</u> The Lender shall have received all information it may reasonably deem necessary or appropriate to comply with applicable know-your-customer requirements (including the Beneficial Ownership Regulation, if applicable), Anti-Money Laundering Laws, which shall include, for the avoidance of doubt duly executed IRS Form W-9 and, with regard to the Borrower that is a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification.

&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>Absence of Litigation Events</u>. There has not been issued any injunction, order or decree that prohibits or limits any of the transactions contemplated by the Loan Documents and there shall not be any action, suit, proceeding or investigation pending or, to the knowledge of the Borrower (or its Managing Entity), currently threatened against the Borrower (or its Managing Entity), the Lender or any Portfolio Company that (i) draws into question the validity, legality or enforceability of any Loan Document or the ability of any such Person to consummate the transactions contemplated thereby or (ii) could reasonably be expected to result, either individually or in the aggregate, in any 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;(d) <u>No Material Adverse Effect</u>. No Material Adverse Effect shall have occurred since December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificate of Responsible Officer of The Borrower</u>. The Lender shall have received a certificate of a Responsible Officer of the Borrower, certifying as to the matters set forth in clauses (c) and (d) of this Section 3.01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Opinions of Counsel</u>. The Lender shall have received opinions of Maryland counsel to the Borrower, customary for transactions of this type.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>ERISA Side Letter</u>. The Lender has received a letter signed by one or more Responsible Officers of the Borrower in substantially the form attached hereto as Exhibit H.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Payment of Fees</u>. The Borrower shall have paid (or substantially simultaneously with the funding of the initial Borrowing shall pay) to Lender all fees then due and payable, and to the extent invoiced at least one (1) Business Days prior to the Funding Date, reimbursement or payment of all reasonable expenses required to be reimbursed or paid by the Borrower hereunder, including the reasonable and documented fees and disbursements of Lender's counsel, Cadwalader, Wickersham & Taft LLP.

Section 3.02 <u>Funding Conditions</u>. The making of the Loans on each Funding Date during the Commitment Period shall be subject to satisfaction of the following further conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties</u>. All of the representations and warranties of the Borrower contained in Article 4 and in any other Loan Document shall be true and correct in all material respects (or, to the extent such representations and warranties are qualified by materiality or Material Adverse Effect, in all respects), in each case on and as of each Funding Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (or, to the extent such representations and warranties are qualified by materiality or Material Adverse Effect, in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Default, Max LTV Breach, or Event of Default</u>. No Default (including a Max LTV Breach) or Event of Default shall exist or result from the making of such Loans;

&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>Loan Notice</u>. Lender shall have received a Loan Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Evidence of Ownership of Portfolio Investments</u>. Confirmation in form and substance reasonably satisfactory to the Lender as to the ownership by the Borrower (whether directly or indirectly as a result of such Borrower's direct and indirect investment in one or more Eligible Intermediate Vehicles, if applicable) of each Eligible Investment included in the Borrowing Base as of such Funding Date (to the extent not previously provided);

**Article 4<br>REPRESENTATIONS AND WARRANTIES**

The Borrower, as to itself, and any Intermediate Vehicle (if applicable), hereby severally represents and warrants to the Lender as follows:

Section 4.01 <u>Organization, Powers and Good Standing</u>. Each of the Borrower and each Intermediate Vehicle is a limited partnership, exempted limited partnership, limited liability company, exempted company or corporation (as applicable) duly organized, incorporated, registered or formed, validly existing and in good standing under the laws of its jurisdiction of formation, incorporation or registration, which jurisdiction of the Borrower is the State of Maryland and each of the Borrower and each Intermediate Vehicle has all requisite organizational power and authority and the legal right (i) to own and operate its properties, to carry on its business as heretofore conducted and as proposed to be conducted, in each case, except as could not reasonably be expected to have a Material Adverse Effect and (ii) to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated thereby. Each of the Borrower and each Intermediate Vehicle possesses all Governmental Approvals, in full force and effect, free from burdensome restrictions, that are necessary for the ownership, maintenance and operation of its properties and conduct of its business as now conducted and proposed to be conducted, and is not in material violation thereof, in each case, except as could not reasonably be expected to have a Material Adverse Effect. Each of the Borrower and each Intermediate Vehicle is duly qualified to do business and is in good standing in each jurisdiction where it is organized incorporated, registered, formed or doing business, except any jurisdictions where any failure to be so qualified, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

Section 4.02 <u>Authorization, Binding Effect, No Conflict, Etc</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>Authorization, Binding Effect, Etc.</u> The execution, delivery and performance by the Borrower of each Loan Document to which it is or will be a party have been duly authorized by all necessary partnership, limited partnership, exempted limited partnership, limited liability company, corporate or other action on the part of the Borrower. Each such Loan Document has been duly executed and delivered by the Borrower and is the legal, valid and binding obligation of the Borrower, enforceable against it in accordance with its terms, except as enforcement may be limited by equitable principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to creditors' rights generally. The provisions of the Collateral Documents are effective to create in favor of the Lender a legal, valid and enforceable first priority Lien (subject only to Liens permitted pursuant to Section 8.01) on all rights, title and interest of the Borrower in the Collateral described therein. Except for filings completed on or prior to the Closing Date or as contemplated hereby or in the Collateral Documents, no filing or other action will be necessary to perfect such Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Conflict</u>. The execution, delivery and performance by the Borrower, each Affiliated Intermediate Vehicle and, to Borrower's knowledge, each other Intermediate Vehicle, as applicable, of each Loan Document to which it is or will be a party, and the consummation of the transactions contemplated thereby, do not and will not (i) violate any provision of its Constituent Documents, (ii) except for consents that have been obtained and are in full force and effect, conflict with, result in a breach of, or constitute (or, with the giving of notice or lapse of time or both, would constitute) a default under, or require the approval or consent of any Person pursuant to, any Contractual Obligation of the Borrower or each Intermediate Vehicle, as applicable, or violate any Applicable Law binding on the Borrower or any Intermediate Vehicle, except where such violation, conflict, breach, or default could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect or (iii) result in the creation or imposition of any Lien upon any asset constituting Collateral of the Borrower, or any income or profits therefrom, except for Liens permitted pursuant to Section 8.01.

Section 4.03 <u>No Material Adverse Effect; No Default</u>. Neither the Borrower nor any Subsidiary thereof is in default under or with respect to any Contractual Obligation that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document.

Section 4.04 [<u>Reserved</u>].

Section 4.05 <u>Litigation</u>. There are no non-frivolous actions, suits or proceedings pending or, to the knowledge of the Borrower, threatened against or adversely affecting (a) the Borrower, any Intermediate Vehicle, any Portfolio Company or any of their respective properties or (b) the Collateral, in each case, before any Governmental Authority and for which: (x) that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or (y) the validity, legality or enforceability of any Loan Document or any transaction contemplated thereby is drawn into question in any manner.

Section 4.06 <u>Agreements; Applicable Law</u>. None of the Borrower, any Affiliated Intermediate Vehicle or, to Borrower's knowledge, any other Intermediate Vehicle, as applicable, is in violation of any Applicable Law (including the Investment Company Act), or in default under its Constituent Documents or any of its Contractual Obligations, except where such violation or default could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. No such violation or default has occurred and is continuing or would result, in each case under the terms of the Constituent Documents of the Borrower, any Affiliated Intermediate Vehicle or, to Borrower's knowledge, any other Intermediate Vehicle, as applicable, from the consummation of the transactions contemplated by this Agreement or any other Loan Document.

Section 4.07 <u>Taxes</u>. All federal and state income tax returns and all other material tax returns required to be filed by the Borrower, any Affiliated Intermediate Vehicle and, to Borrower's knowledge, any other Intermediate Vehicle have been filed and all material Taxes due pursuant to such returns have been paid, except (a) such Taxes, if any, as are being contested in good faith and as to which adequate reserves have been established in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect. To the knowledge of the Borrower, there has not been asserted or proposed to be asserted any Tax deficiency against the Borrower or any Intermediate Vehicle (except deficiencies that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect) that is not reserved against on the financial books of the Borrower in accordance with GAAP.

Section 4.08 <u>Governmental Regulation; Investment Company Act</u>. The Borrower has the following status: (i) it qualifies as a Regulated Investment Company, (ii) it is duly registered as an investment company under the Investment Company Act, (iii) it is a "closed-end company" within the meaning of Section 5 of the Investment Company Act, (iv) it has not elected to be treated as a "business development company" under the Investment Company Act, and (v) to its knowledge, it is neither an "affiliate" (within the meaning of Section 23A of the Federal Reserve Act, as amended) of, nor an "affiliated person" or an "affiliated person" of an "affiliated person" (as defined in Section 2(a)(3) of the Investment Company Act) of, the Lender.

Section 4.09 <u>Margin Regulations</u>. The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purposes of purchasing or carrying Margin Stock. The proceeds of the Loans will not be used for the purpose of buying or carrying Margin Stock and the Loans will not be secured directly or indirectly by Margin Stock.

Section 4.10 <u>Disclosure</u>. (a) The information in each document, certificate or written statement furnished to the Lender by or on behalf of the Borrower, with respect to the business, assets, results of operation or financial condition (other than (i) estimates, forecasts, projections and other forward looking information (collectively, "<u>Projections</u>") and (ii) general industry information) of the Borrower, any Affiliated Intermediate Vehicle or, to Borrower's knowledge, any other Intermediate Vehicle for use in connection with the transactions contemplated by this Agreement at the time of delivery thereof, was, taken as a whole, true and correct (other than any Projections) in all material respects and did not omit any material fact necessary in order to make the statements made not materially misleading, in light of the circumstances under which they were made. There is no fact known to the Borrower (other than matters of a general economic nature) that has had or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and that has not been disclosed herein or in such other documents, certificates or statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Projections that have been made available to the Lender by the Borrower in connection with the transactions contemplated by this Agreement have been prepared in good faith based upon assumptions that are believed by the Borrower to be reasonable at the time prepared and at the time the related Projections are so furnished to the Lender, it being understood that the Projections are as to future events and are not to be viewed as facts, the Projections are subject to significant uncertainties and contingencies, many of which are beyond the Borrower's control, that no assurance can be given that any particular Projections will be realized and that actual results during the period or periods covered by any such Projections may differ significantly from the projected results and such differences may be material.

Section 4.11 <u>No Debt or Liens</u>. Neither the Borrower, any Affiliated Intermediate Vehicle nor, to Borrower's knowledge, any other Intermediate Vehicle has any Debt except as permitted under Section 8.02, and none of the assets of the Borrower, any Affiliated Intermediate Vehicle or, to Borrower's knowledge, any other Intermediate Vehicle is subject to any Lien except as permitted under Section 8.01.

Section 4.12 <u>[Reserved]</u>.

Section 4.13 <u>Subsidiaries</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 Intermediate Vehicle (if any) is set forth on the Borrowing Base Certificate delivered by the Borrower on the Closing Date. The Borrower does not have any Subsidiaries or own any Equity Interests in any other Person except for the Intermediate Vehicles (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;(b) The Borrower shall provide the Lender with an updated Borrowing Base Certificate from time to time to reflect any new Intermediate Vehicle acquired by the Borrower and the updated Borrower's Proportionate Shares with respect to the Intermediate Vehicles (if any) and the Portfolio Investments held thereby (for the avoidance of doubt, subject in all instances to the restrictions set forth in Sections 8.03, 8.04, 8.05, 8.06, and 8.07), and in connection therewith, the representations in Section 4.13(a) with respect to Borrower's Proportionate Shares with respect to the Intermediate Vehicles shall be deemed repeated with respect to then existing Intermediate Vehicles on the date of delivery of such updated Borrowing Base Certificate.

Section 4.14 <u>Portfolio</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 Portfolio Investments are set forth on the Borrowing Base Certificate delivered by the Borrower on the Closing Date. As of the Closing Date, the type of each Portfolio Investment, the Portfolio Company to which such Portfolio Investment relates, the Managing Entity of each Portfolio Company, the Borrower's Proportionate Share of the Fair Market Value and the Borrower or Intermediate Vehicle that is the owner of such Portfolio Investment (all such information collectively, the "<u>Section 4.14(a) Information</u>"), in each case, as of the relevant date noted on such Borrowing Base Certificate for each Portfolio Investment are set forth on such Borrowing Base Certificate. As of the Closing Date, no Portfolio Investment is held in a securities account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall provide the Lender with an updated Borrowing Base Certificate from time to time to reflect any new Portfolio Investment acquired by the Borrower or an Intermediate Vehicle (for the avoidance of doubt, subject in all instances to the restrictions set forth in Sections 8.03, 8.04, 8.05, 8.06, and 8.07) and in connection therewith, the representations in <u>Section 4.14(a)</u> shall be deemed repeated with respect to then existing Portfolio Investments on the date of delivery of such updated Borrowing Base Certificate.

Section 4.15 <u>Solvency</u>. The Borrower (together with its Subsidiaries) is, on a consolidated basis, Solvent.

Section 4.16 <u>ERISA</u>. The following representations shall be repeated on each day during the term of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Employee Plans or Multiemployer Plans</u>. Neither the Borrower, any Affiliated Intermediate Vehicle, to Borrower's knowledge, any other Intermediate Vehicle (if applicable), nor any ERISA Affiliate sponsors, maintains, contributes to or has an obligation to contribute to (or in the preceding six years has sponsored, maintained, contributed to or had any obligation to contribute to), or has any liability (contingent or otherwise) with respect to, any Employee Plan or Multiemployer Plan, and neither the Borrower nor any ERISA Affiliate has any present intention to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Plan Assets</u>. Neither the Borrower, any Affiliated Intermediate Vehicle nor, to Borrower's knowledge, any other Intermediate Vehicle (if applicable) is or will be (i) an "employee benefit plan" as defined in and subject to Title I ERISA, (ii) a "plan" as defined in and subject to Section 4975 of the Code, (iii) a plan or arrangement subject to any Similar Law or (iv) a person or entity considered to hold "plan assets" of any of the foregoing as determined under the Plan Asset Regulation or for purposes of any Similar Law.

Section 4.17 <u>Sanctions</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) None of the Borrower, any Person directly or indirectly controlling the Borrower, any Person directly or indirectly controlled by the Borrower, and to the Borrower's knowledge no Related Party of any of the foregoing (i) is a Sanctioned Person, (ii) resides, is organized or chartered, or has a place of business in a country, territory or region that is, or whose government is, the subject of comprehensive Sanctions (as of the date of this Agreement, Crimea, the Donetsk People's Republic, the Luhansk People's Republic, Zaporizhzhia, Kherson, Cuba, Iran, North Korea, and Syria), or (iii) has taken any action, directly or indirectly, that would result in a violation by such Person of any Sanctions or to the Borrower's knowledge is under investigation for an alleged breach of Sanctions by a Governmental Authority that enforces Sanctions. To the Borrower's knowledge, none of its Investors is a Sanctioned 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;(b) The Borrower will not, directly or indirectly, use the proceeds of any Loan, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, (i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is, or whose government is, the target or subject of comprehensive Sanctions (as of the date of this Agreement, Crimea, the Donetsk People's Republic, the Luhansk People's Republic, Zaporizhzhia, Kherson, Cuba, Iran, North Korea, and Syria), or (ii) in any other manner that would result in a violation of comprehensive Sanctions (as of the date of this Agreement, Crimea, the Donetsk People's Republic, the Luhansk People's Republic, Zaporizhzhia, Kherson, Cuba, Iran, North Korea, and Syria) by any Person. The Borrower will not, directly or indirectly, use the proceeds of any Loan in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws. The Borrower (or its applicable controlling Person) shall maintain policies and procedures reasonably designed to ensure compliance with Sanctions. The Borrower will notify the Lender in writing not more than one (1) Business Day after becoming aware of any breach of Section 4.17 or Section 8.12.

Section 4.18 <u>Beneficial Ownership Certification</u>. As of the Closing Date, the information included in the Beneficial Ownership Certifications provided under this Agreement is true and correct in all respects to the best knowledge of the applicable Responsible Officer.

Section 4.19 <u>[Reserved]</u>.

Section 4.20 <u>[Reserved]</u>.

Section 4.21 <u>Coverage Limits under the Investment Company Act</u>. The Borrower complies, including after giving effect to any proposed Borrowing hereunder, in all material respects with, applicable asset coverage and other leverage limits under the Investment Company Act.

Section 4.22 <u>Burdensome Restrictions</u>. Neither the Borrower, any Affiliated Intermediate Vehicle nor, to Borrower's knowledge, any other Intermediate Vehicle is a party to any agreement or contract that contains a restriction, or is subject to any restriction contained in its Constituent Documents, which restricts its right, or the rights of the Borrower, to borrow, guaranty or repay the Loans hereunder.

**Article 5<br>COLLATERAL MATTERS**

Section 5.01 <u>Collateral</u>. To secure performance by the Borrower of the payment and performance of the Obligations, the Borrower shall grant to the Lender a perfected, first priority security interest and lien in and to all of the assets of the Borrower (together with all other "collateral" granted to Lender pursuant to the terms of any Collateral Document being, collectively, the "<u>Collateral</u>"), including the following: (a) 100% of the Equity Interests of the Borrower in the Portfolio Investments and Intermediate Vehicles (if any) directly owned by it, (b) the account of the Borrower held at the Account Bank and listed on Schedule 5.02 (the "<u>Collateral Account</u>") and all assets held therein, and (c) all Proceeds in respect of such Portfolio Investments or investments in Intermediate Vehicles (if any).

Section 5.02 <u>Accounts; Use of Accounts</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 Borrower shall not be permitted to make any withdrawal or wire transfer of funds from the Collateral Account without the prior written approval of the Lender (acting in its sole and absolute discretion).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to the Collateral Account, the Borrower hereby irrevocably authorizes and directs the Lender to charge the Collateral Account on each Loan Maturity Date for any outstanding Principal Obligations that are due but have not been paid hereunder or under the Notes. The Lender shall give the Borrower prompt notice of any action taken pursuant to this Section 5.02(b), but failure to give such notice shall not affect the validity of such action or give rise to any defense in favor of the Borrower with respect to such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All Collateral Accounts are set forth, and designated as such, on <u>Schedule 5.02</u>. The Borrower shall not open any additional accounts without (i) the prior consent of the Lender, (ii) promptly providing appropriate Collateral Documents and opinions of counsel to the Borrower, customary for transactions of this type in connection with such Collateral Account, as the Lender may request in its reasonable discretion and (iii) providing an updated <u>Schedule 5.02</u> to the Lender relating thereto, in each case, which shall occur on or before the day such Collateral Account has been opened. For the avoidance of doubt, the Borrower shall not fund or permit the funding of any amounts into such account until such time as such Collateral Documents reasonably acceptable to the Lender have been fully executed and delivered to the Lender. In connection with any replacement of a Collateral Account, the Lender is hereby authorized to release the Liens on such replaced account upon the execution of Collateral Documents relating to such replacement account.

Section 5.03 <u>Further Assurances</u>. The Borrower shall promptly upon reasonable request of the Lender: (a) correct any material defect or error that may be discovered in any Loan Document or in the execution, acknowledgment, filing or recordation thereof, and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the Lender may reasonably require from time to time in order to (i) carry out more effectively the purposes of the Loan Documents, (ii) to the fullest extent permitted by Applicable Law, subject the Borrower's properties, assets, rights or interests to the Liens now or hereafter intended to be covered by any of the Collateral Documents, (iii) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created thereunder and (iv) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Lender the rights granted or now or hereafter intended to be granted to the Lender under any Loan Document or under any other instrument executed in connection with any Loan Document to which the Borrower is or is to be a party.

Section 5.04 <u>Subordination of Claims</u>. As used herein, the term "<u>Subordinated Claims</u>" means, with respect to the Borrower and the Manager (and if any, investment manager, manager, general partner, alternative investment vehicles, parallel funds or blocker entities relating thereto), all debts and liabilities between the Borrower and such Persons, whether such debts and liabilities now exist or are hereafter incurred or arise, or whether the obligations of such Person or Persons thereon be direct, contingent, primary, secondary, several, joint and several, or otherwise, and irrespective of whether such debts or liabilities be evidenced by note, contract, open account, or otherwise, and irrespective of the Person or Persons in whose favor such debts or liabilities may, at their inception, have been, or may hereafter be created, or the manner in which they have been or may hereafter be acquired by the Borrower (including, without limitation, by setoff pursuant to the terms of any applicable agreement). At any time that a mandatory prepayment pursuant to Section 2.05 is due and payable or during the existence and continuation of an Event of Default, the Borrower shall not pay any amount upon the Subordinated Claims.

Any liens, security interests, judgment liens, charges, or other encumbrances upon any Person's assets securing payment by Borrower of Subordinated Claims, shall be and remain subordinate in right of payment and of security to any liens, security interests, judgment liens, charges, or other encumbrances upon the Borrower's assets securing the Borrower's obligations and liabilities to the Lender pursuant to any of the Collateral Documents, regardless of whether such encumbrances in favor of the Borrower or the Lender presently exist or are hereafter created or attach. Without the prior written consent of the Lender, no such Person shall: (a) exercise or enforce any creditor's or partnership right it may have against the Borrower; (b) foreclose, repossess, sequester, or otherwise take steps or institute any action or proceedings (judicial or otherwise, including without limitation, the commencement of, or joinder in, any liquidation, bankruptcy, rearrangement, debtor's relief, or insolvency proceeding) to enforce any liens, mortgages, deeds of trust, security interest, collateral rights, judgments or other encumbrances on assets of the Borrower; or (c) exercise any rights or remedies against the Borrower under the Constituent Documents of such Person, <u>provided</u> that any action taken by the Lender in the Borrower's name, or any action taken by the Borrower that is required under any Loan Document or to comply with any Loan Document, shall not be a violation of this Section 5.04.

**Article 6<br>[Reserved]**

**Article 7<br>AFFIRMATIVE COVENANTS**

So long as any Obligations (other than unasserted contingent indemnification obligations) remain unpaid or have not been performed in full:

Section 7.01 <u>Financial Statements and Other Reports</u>. The Borrower shall promptly deliver, or cause to be delivered to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) within one hundred and twenty (120) days after the end of each Fiscal Year of the Borrower, the audited consolidated financial statements of the Borrower in the form typically prepared, together with the unqualified opinion (other than qualification arising solely as a result of a pending maturity of this Facility, within the succeeding year) of a nationally recognized accounting firm, based on an audit using generally accepted auditing standards, that such financial statements were prepared in accordance with GAAP and present fairly, in all material respects, the Borrower's financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within sixty (60) days after the end of the first semiannual accounting period in each fiscal year of the Borrower, a copy of the Borrower's statement of assets and liabilities as at the end of such semiannual period, together with the related schedule of investments and statements of operations and changes in net assets for such period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) together with the delivery of the financial information required pursuant to (a) and (b) above and together with the delivery of the Borrowing Base Certificate required with respect to each Fiscal Year end pursuant to (d) below, a certificate ("<u>Compliance Certificate</u>") of a Responsible Officer of the Borrower substantially in the form of <u>Exhibit E</u> attached hereto: (i) stating whether, to the knowledge of such officer (in such Responsible Officer's capacity as Responsible Officer of the Borrower, and not in his or her individual capacity), a Default or an Event of Default has occurred and is continuing and, if a Default or an Event of Default has occurred and is continuing, specifying the details thereof and any action taken or proposed to be taken with respect thereto; (ii) specifying any Material Investment Events or Adjustment Events that have occurred since the last Compliance Certificate; (iii) either including a certification that there have been no changes to the Section 4.14(a) Information, or providing updated Section 4.14(a) Information, and for the avoidance of doubt, subject in all instances to the restrictions set forth in Sections 8.03, 8.04, 8.05, 8.06, and 8.07; and (iv) stating that the representations and warranties of the Borrower contained in Article 4 and any other Loan Document are true and correct in all material respects (or, to the extent such representations and warranties are qualified by materiality or Material Adverse Effect, in all respects), in each case on and as of the date of such Compliance Certificate, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (or, to the extent such representations and warranties are qualified by materiality or Material Adverse Effect, in all respects) as of such earlier 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;(d) (i) with each Loan Notice, (ii) as the Lender may reasonably request in connection with any report provided by a Third Party Valuation Agent as contemplated by Section 11.01, (iii) as the Lender may reasonably request in connection with any Write-Down Valuation, and (iv) if a Default (including a Max LTV Breach) or Event of Default shall have occurred and be continuing, a certificate ("<u>Borrowing Base Certificate</u>") of a Responsible Officer of the Borrower: (A) setting forth in reasonable detail a calculation of the Borrowing Base and the Loan to Value Ratio (as of the end of the relevant preceding calendar month (as reflected in the Borrower's internal systems and records on the Business Day one or two days prior to the date such certificate is delivered) and adjusting for any Distributions, Dispositions or realizations in respect of Portfolio Investments); (B) stating whether the Borrower is in compliance with each of the mandatory prepayment provisions set forth in Section 2.05 hereof (and including any calculations relating to the Loan to Value Ratio and receipt of Proceeds for such quarter necessary to establish compliance therewith); and (C) detailing any Dispositions, Distributions and realizations in respect of Portfolio Investments since the last Borrowing Base Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) promptly following the date on which the same are made available to the Borrower, copies of any material information or reports furnished to the Borrower in respect of any Portfolio Investment, including (x) valuation reports and other reports providing for calculation of the "net asset value" or (y) other valuations, to the extent that any such reports, information or documents could reasonably be expected to be material to the Lender; provided that nothing in this Section 7.01(e) shall require the Borrower to deliver any materials subject to attorney client or similar privilege or containing any trade secrets with respect to the Portfolio Investments; 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;(f) promptly after their delivery to the Investors generally, copies of all other material financial statements, Investor reports, notices certificates, and other documents at any time or from time to time furnished to the Investors generally by the Borrower or the Manager on behalf of the Borrower.

The Borrower shall not be required pursuant to this Section 7.01 to deliver or otherwise provide any information to Lender to the extent such information is readily available in printable form through the U.S. Securities and Exchange Commission's EDGAR system or on any other website with respect to which the Borrower shall have provided prior written notice of the posting thereof to the Lender.

Section 7.02 <u>Records and Inspection; Etc.</u> The Borrower shall, shall cause each Affiliated Intermediate Vehicle to, and shall use commercially reasonable efforts to cause each other Intermediate Vehicle to, maintain adequate books, records and accounts as may be required or necessary to permit the preparation of financial statements in accordance with sound business practices and GAAP.

Section 7.03 <u>Information Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall, shall cause each Affiliated Intermediate Vehicle to, and shall use commercially reasonable efforts to cause each other Intermediate Vehicle to, permit representatives of the Lender to discuss, after reasonable prior notice to the Borrower and the opportunity for Responsible Officers to be present, the business, operations, properties and financial and other condition of the Borrower and the Intermediate Vehicles with its independent certified public accountants, provided that, unless an Event of Default has occurred and is continuing, the Borrower shall only be obligated to conduct and reimburse the Lender for the reasonable and documented expenses of one such discussion per calendar 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;(b) The Borrower shall, shall cause each Affiliated Intermediate Vehicle to, and shall use commercially reasonable efforts to cause each other Intermediate Vehicle to, permit the Lender and its representatives, to have full access to, and make abstracts from, its books and records (subject to any applicable confidentiality undertakings) after reasonable prior notice to the Borrower and the opportunity for senior officers to be present, provided that, unless an Event of Default has occurred and is continuing, the Borrower shall only be obligated to permit and reimburse the Lender for the reasonable and documented expenses of one such inspection per calendar year.

Section 7.04 <u>Corporate Existence, Etc.</u> The Borrower shall, shall cause each Affiliated Intermediate Vehicle to, and shall use commercially reasonable efforts to cause each other Intermediate Vehicle to, at all times preserve and keep in full force and effect (a) its limited partnership, exempted limited partnership, limited liability company, exempted company or corporate existence (as applicable) and (b) except as could not reasonably be expected to have a Material Adverse Effect, all material rights, franchises and other Governmental Approvals.

Section 7.05 <u>Payment of Taxes</u>. The Borrower shall, shall cause each Affiliated Intermediate Vehicle to, and shall use commercially reasonable efforts to cause each other Intermediate Vehicle to, timely file or cause to be filed all federal income and other material Tax returns and reports required to be filed by it, and will pay and discharge all material Taxes imposed upon it (or required to be paid by it with respect to any consolidated, combined or unitary group of which it is a part) or any of its properties or in respect of any of its franchises, business, income or property before any penalty shall be incurred with respect to such Taxes unless (a) any failure to so pay or discharge any such Taxes could not reasonably be expected to have a Material Adverse Effect, or (b) the validity or amount thereof is being contested in good faith and by appropriate proceedings and applicable reserves or other appropriate provisions as may be required by GAAP shall have been made therefor.

Section 7.06 <u>Conduct of Business</u>. The Borrower shall, shall cause each Affiliated Intermediate Vehicle to, and shall use commercially reasonable efforts to cause each other Intermediate Vehicle to, engage only in the businesses in which the Borrower and the Intermediate Vehicles are engaged on the Closing Date, and businesses reasonably related or ancillary thereto. The Borrower shall, shall cause each Affiliated Intermediate Vehicle to, and shall use commercially reasonable efforts to cause each other Intermediate Vehicle to, conduct its business (a) in compliance in all material respects with all Applicable Law, except to the extent that any such non-compliance could not reasonably be expected to have a Material Adverse Effect and (b) in compliance with all of its respective Contractual Obligations, except to the extent that any such non-compliance could not reasonably be expected to have a Material Adverse Effect.

Section 7.07 <u>Compliance with Law</u>. The Borrower shall, shall cause each Affiliated Intermediate Vehicle to, and shall use commercially reasonable efforts to cause each other Intermediate Vehicle to, comply with all Applicable Laws (including the Investment Company Act) to which it is subject and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of its properties or to the conduct of its businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate reasonably be expected to have a Material Adverse Effect.

Section 7.08 <u>[Reserved]</u>.

Section 7.09 <u>Plan Assets</u>. If the Borrower shall have one or more "benefit plan investors" within the meaning of the Plan Asset Regulation (each, a "<u>Benefit Plan Investor</u>"), the Borrower agrees to use commercially reasonable efforts to (i) prevent the assets of the Borrower being deemed Plan Assets of any such Benefit Plan Investor and (ii) promptly provide notice to the Lender in writing if the Borrower has reason to believe that the assets of the Borrower constitute Plan Assets of any Benefit Plan Investor.

Section 7.10 <u>Notices</u>. The Borrower shall promptly (but in any event within five (5) Business Days) notify the Lender in writing upon the Borrower becoming aware:

&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) (i) of the existence of any condition or event which constitutes a Default or Event of Default, (ii) of any notice from the owners of the Borrower or any Intermediate Vehicle (if applicable) that its owners intend to seek the removal of its Managing Entity or Manager (or otherwise cause a Change of Control), whether pursuant to the Constituent Documents of the Borrower, the Constituent Documents of any Intermediate Vehicle or otherwise and the Borrower shall promptly provide all information relating to such removal of a Managing Entity or Manager or Change of Control as the Lender reasonably deem necessary or appropriate to comply with applicable know-your-customer requirements, Sanctions and Anti-Money Laundering Laws, (iii) of any Material Investment Event or any Adjustment Event and (iv) of any Intermediate Vehicle MAE Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) of (i) any material breach or non-performance by the Borrower under any Contractual Obligation of such Person; (ii) any material litigation or proceedings affecting the Borrower, or affecting the Collateral; or (iii) the occurrence of any matter or event that has resulted or could reasonably be expected to 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;(c) of the acquisition by the Borrower of any Margin Stock that is pledged to the Lender, in which case the Borrower shall deliver a Form FR U-1 to the Lender (it being understood and agreed that thereafter the Borrower will also, from time to time, upon reasonable request of the Lender, provide an updated Form FR U-1 (or its equivalent));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) upon the Borrower becoming aware that the Lender is an "affiliated person", or an affiliated person of an affiliated person, of the Borrower (within the meaning of Section 2(a)(3) of the Investment Company 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) of any material change in accounting policies or financial reporting practices by the Borrower or any of the Intermediate Vehicles, other than a change implemented to comply with GAAP; 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;(f) of any Portfolio Investment that has previously been designated as an Eligible Investment no longer meeting any requirement specified in the definition thereof.

Each notice pursuant to this Section 7.10 shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what actions the Borrower has taken and proposes to take with respect thereto.

Section 7.11 <u>Valuation</u>. The Borrower shall conduct periodic internal valuation reviews of the Portfolio Investments consistent with its Valuation Policy (such valuations, the "<u>Internal Valuation</u>"). The Borrower shall, from time to time, using customary accounting standards consistent with its past practice, write-down the value of each applicable Portfolio Investment on the books of the Borrower in a manner consistent with the requirements set forth in the Valuation Policy (such value being referred to herein as a "<u>Write-Down</u>"). To the extent that any portion of a Portfolio Investment is subject to a Write-Down, the Borrower shall promptly notify the Lender of the same and shall provide to the Lender the value of such Portfolio Investment on the books of the Borrower (the "<u>Write-Down Valuation</u>"). To the extent of any discrepancy in the value of any Portfolio Investment between the most recent Internal Valuation or the Write-Down Valuation, the most recent valuation shall be used for purposes of calculating the Borrowing Base.

Section 7.12 <u>Insurance</u>. The Borrower will maintain or be covered by customary insurance as required by the Investment Company Act and the failure of which to maintain could reasonably be expected to have a Material Adverse Effect.

Section 7.13 <u>Compliance with Anti-Corruption Laws and Anti-Money Laundering Laws</u>. Each of the Borrower and, to the Borrower's knowledge, each of the Borrower's Affiliates and each of their respective Related Parties, is in compliance in all material respects with any Anti-Corruption Laws and Anti-Money Laundering Law and shall (a) comply with all Anti-Money Laundering Laws and Anti-Corruption Laws in all material respects, and shall maintain policies and procedures reasonably designed to ensure compliance with all Anti-Money Laundering Laws and Anti-Corruption Laws, (b) conduct the requisite due diligence in connection with the transactions contemplated herein for purposes of complying with all applicable Anti-Corruptions Laws and Anti-Money Laundering Laws, including with respect to the legitimacy of the applicable Investor and the origin of the assets used by such Investor to purchase the property in question, and shall maintain sufficient information to identify the applicable Investor for purposes of Anti-Money Laundering Laws (including the Beneficial Ownership Regulation), (c) ensure it does not use any of the Loan proceeds in violation of any Anti-Corruption Law or Anti-Money Laundering Law, and (d) ensure it does not fund any repayment of the Obligations in violation of any Anti-Corruption Law or Anti-Money Laundering Law. The Borrower will notify the Lender in writing not more than one (1) Business Day after becoming aware of any breach of this Section 7.13.

Section 7.14 <u>Notice of Certain Changes to Beneficial Ownership Certification</u>. If the Borrower is a "legal entity customer" under the Beneficial Ownership Regulation, the Borrower shall promptly give notice to the Lender of any change in the information provided in any Beneficial Ownership Certification that would result in a change to the list of beneficial owners identified therein.

**Article 8<br>NEGATIVE COVENANTS**

So long as any Obligations (other than unasserted contingent indemnification obligations) remain unpaid or have not been performed in full:

Section 8.01 <u>Liens</u>. The Borrower shall not, shall ensure that each of its Subsidiaries and Affiliated Intermediate Vehicles do not, and use commercially reasonable efforts to ensure that each of its other Intermediate Vehicles (if any) do not, directly or indirectly, create, incur, assume or permit to exist any Lien on any Portfolio Investment or any Proceeds in respect of a Portfolio Investment, whether now owned or hereafter acquired, except (collectively, the "<u>Permitted Liens</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) Liens under the Loan 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) Liens for Taxes that are not material, or are not yet due or are being contested in good faith by appropriate proceedings that have the effect of preventing forfeiture or sale of the assets to which such Liens attach, and, in each case, with respect to which adequate reserves or other appropriate provisions are being maintained by the Borrower in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens in favor of a banking or other financial institution arising as a matter of Applicable Law or under customary general terms and conditions encumbering deposits or other funds maintained with a financial institution (including the right of set-off) and that are customary in the banking industry or arising pursuant to such banking institution's general terms and conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) such other Liens as may be permitted from time to time, with the written consent of the Lender pursuant to an amendment hereto.

Section 8.02 <u>Debt</u>. The Borrower shall not, shall not permit any of its Subsidiaries or Affiliated Intermediate Vehicles to, and shall use commercially reasonable efforts to not permit any of its other Intermediate Vehicles or the Portfolio Companies to, directly or indirectly, create, incur, assume, guarantee, or otherwise become or remain liable with respect to, any Debt, except Permitted Debt.

Section 8.03 <u>Distributions</u>. The Borrower shall not declare or pay any dividends or make Distributions, including of distributions of any Proceeds, (a) except as permitted under its Constituent Documents and (b) so long as no Default or Event of Default has occurred and is continuing or would result therefrom; <u>provided</u> that, the Borrower may make Required Distributions as permitted under its Constituent Documents so long as (x) all mandatory prepayments theretofore required to be paid pursuant to Section 2.05(b) have been paid and (y) no Cash Control Event has occurred and is continuing or would result from such Required Distributions.

Section 8.04 <u>Investments</u>. The Borrower shall not, shall ensure that each of its Subsidiaries and Affiliated Intermediate Vehicles do not, and use commercially reasonable efforts to ensure that each of its other Intermediate Vehicles do not, directly or indirectly, make any Investments except:

&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) Investments in Portfolio Investments and Portfolio Companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investments in cash and cash equivalents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other Investment(s) permitted pursuant to the Constituent Documents of the Borrower and in compliance with the Investment Company Act.

Section 8.05 <u>Dispositions</u>. The Borrower shall not, shall ensure that each of its Subsidiaries and Affiliated Intermediate Vehicles do not, and use commercially reasonable efforts to ensure that each of its other Intermediate Vehicles do not, directly or indirectly (including by a sale or transfer of interests in any Intermediate Vehicle), make or enter into any agreement to make any Disposition of any Portfolio Investment, permit any Portfolio Company or any Subsidiary thereof, directly or indirectly, to make any Disposition of any material asset, or consent to any Portfolio Company or any Subsidiary thereof, directly or indirectly, making any Disposition of a material asset, in each case except for:

&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) Dispositions in arm's-length-transactions for not less than one hundred percent (100%) Cash (other than rollover Equity Interests, working capital adjustments, earnouts and similar customary forms of deferred consideration); <u>provided</u> that to the extent any Disposition permitted above would trigger a mandatory prepayment pursuant to Section 2.05(b), such Disposition (or consent thereto) may not occur unless the Net Investment Proceeds of such Dispositions will be at least equal to the amount of such mandatory prepayment, and are in fact applied in satisfaction thereof; 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;(b) Dispositions, the consummation of which are conditioned upon the repayment in full of the Obligations (other than contingent indemnification obligations) and the termination of the Commitments or which will otherwise produce sufficient Net Investment Proceeds that the application of such Net Investment Proceeds pursuant to Section 2.05(b) would repay in full the Obligations and such Net Investment Proceeds are in fact applied in satisfaction thereof;

provided; that, in each case, the Borrower or Intermediate Vehicle, as applicable, has provided not less than ten (10) Business Days' prior written notice of any such Disposition (including any sale or transfer of interest in any Intermediate Vehicle) to the Lender.

Section 8.06 <u>Restriction on Fundamental Changes</u>. The Borrower shall not, shall ensure that each of its Subsidiaries and Affiliated Intermediate Vehicles do not, and use commercially reasonable efforts to ensure that each of its other Intermediate Vehicles do not: (a) enter into any merger, consolidation, reorganization or recapitalization, liquidate, wind up or dissolve or sell, lease, transfer or otherwise Dispose of, in one transaction or a series of transactions, all or substantially all of its business or assets, whether now owned or hereafter acquired except as permitted pursuant to Section 8.05 above; or (b) reclassify its Equity Interests or create any new series of Equity Interests (by series designation or otherwise) on or after the Closing Date, unless (x) such reclassification or creation could not reasonably be expected to materially and adversely affect the Lender's interest hereunder and such reclassified or created Equity Interests are pledged to the Lender to secure the Obligations or (y) the Lender has provided prior written consent related thereto. The Borrower shall not, shall ensure that each of its Subsidiaries and Affiliated Intermediate Vehicles do not, and use commercially reasonable efforts to ensure that each of its other Intermediate Vehicles does not, change its name, jurisdiction of formation, location of its principal office, chief executive office or principal place of business without providing not less ten (10) Business Days (or such lesser period as the Lender may agree) prior written notice to the Lender and after complying with all applicable further assurances obligations set forth herein and in the other Loan Documents with respect thereto; provided, that the Borrower shall not, and shall not permit any Intermediate Vehicle to, change its jurisdiction of formation to a jurisdiction other than a State of the United States.

Section 8.07 <u>Transactions with Affiliates</u>. The Borrower shall not, shall not permit any of its Subsidiaries or Affiliated Intermediate Vehicles to, and shall use commercially reasonable efforts to not permit any of its other Intermediate Vehicles or any Portfolio Company (or any Subsidiary thereof) to, directly or indirectly, enter into any transaction with any Affiliate of the Borrower or the Manager other than the Loan Documents and, to the extent not otherwise prohibited by any Loan Document and permitted by the Constituent Document for the Borrower or Intermediate Vehicles and the Investment Company Act, as applicable, (a) any such transaction that is in the ordinary course of business of the Borrower or Intermediate Vehicle (as applicable) and that is on fair and reasonable terms no less favorable to the Borrower or Intermediate Vehicle (as applicable) than those terms that might be obtained at such time in a comparable arm's length transaction with a Person who is not an Affiliate or, if such transaction is not one that by its nature could be obtained from such other Person, is on fair and reasonable terms and was negotiated in good faith; and (b) the Investment Advisory Agreements, together with amendments, modifications and replacements thereof that are not materially adverse to the interests of the Lender.

Section 8.08 <u>Constituent Document Amendments</u>. (a) The Borrower shall notify the Lender of any proposed amendment, change, modification or supplement to the Constituent Documents of the Borrower or, if known by the Borrower, any Intermediate Vehicle (if any) prior to the Borrower or such Intermediate Vehicle enacting such proposed amendment, as applicable. Any amendment, change, modification or supplement to the Constituent Documents of the Borrower or an Intermediate Vehicle (whether by way of merger, consolidation, reorganization, recapitalization or otherwise) that adversely affects the rights of Lender or the Collateral (each, a "<u>Material Amendment</u>") will, if deemed to be a Material Amendment by Lender, require the consent of the Lender. The Lender shall notify the Borrower within ten (10) Business Days of confirmed receipt by the Lender of notice of any proposed amendment, whether the Lender deems a proposed amendment to be a Material Amendment.

Section 8.09 <u>Accounting Principles</u>. The Borrower shall not make any change in the accounting principles underlying the financial statements described in Section 7.01 except for changes mandated by GAAP, without the prior written consent of the Lender (which consent shall not be unreasonably withheld).

Section 8.10 <u>Subsidiaries</u>. The Borrower shall not, shall ensure that each of its Affiliated Intermediate Vehicles do not, and use commercially reasonable efforts to ensure that each of its other Intermediate Vehicles (if any) do not, create or suffer to exist any Subsidiary thereof (other than the Portfolio Companies), in each case, without the prior written consent of the Lender.

Section 8.11 <u>Limitation on Managing Entities</u>. No Managing Entity of the Borrower shall create or suffer to exist any Lien (other than Permitted Liens) upon its Equity Interest in the Borrower or Intermediate Vehicle (if any).

Section 8.12 <u>Sanctions-Related Negative Covenants</u>. For so long as any amounts remain outstanding under this Agreement, none of the Borrower, any Person directly or indirectly controlling the Borrower, and any Person directly or indirectly controlled by the Borrower, and to the Borrower's knowledge no Related Party of any of the foregoing, in each case directly or indirectly, will lend, contribute or otherwise make available the proceeds of any Loan, directly or indirectly to any Person (i) to fund any activities or business of or with any Sanctioned Person, (ii) in any other manner that would be prohibited by Sanctions or would otherwise cause any party to this Agreement to be in breach of Sanctions.

**Article 9**

**EVENTS OF DEFAULT**

Section 9.01 <u>Events of Default</u>. The occurrence of any one or more of the following events, acts or occurrences shall constitute an event of default (each an "<u>Event of Default</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Failure to Make Payments</u>. The Borrower (i) shall fail to pay as and when due (whether at stated maturity, upon acceleration, upon required prepayment pursuant to Section 2.05(b), or otherwise) any principal of the Loans, or (ii) shall fail to pay any interest or other amounts payable under the Loan Documents within three (3) Business Days of the date when due under the Loan 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) <u>Breach of Certain Covenants</u>. The Borrower, shall fail to perform, comply with or observe any agreement, covenant or obligation under Sections 2.02, 5.02, 7.04 or Article 8, solely to the extent such provisions apply to such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Breach of Covenants in this Agreement</u>. The Borrower shall fail to perform, comply with or observe any agreement, covenant or obligation under any provision of this Agreement (other than those provisions referred to elsewhere in this Section 9.01), solely to the extent such provisions apply to such Person, and such failure shall not have been remedied within ten (10) Business Days of the earlier of (i) receipt of notice from the Lender or (ii) having knowledge of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Defaults Under Other Loan Documents</u>. The Borrower shall fail to perform, comply with or observe any agreement, covenant or obligation under any provision of any Loan Document to which it is a party (other than this Agreement), and such failure shall not have been remedied within ten (10) Business Days after the earlier of (i) receipt of notice from the Lender or (ii) having knowledge of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Breach of Warranty</u>. Any representation and warranty or certification made or furnished by the Borrower under any Loan Document shall prove to have been false or incorrect in any material respect when made (or deemed made) and the same continues unremedied for a period of ten (10) Business Days after the earlier of (i) receipt of notice from the Lender or (ii) having knowledge of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Involuntary Bankruptcy; Appointment of Receiver, Etc.</u> There shall be commenced against the Borrower an involuntary case seeking the liquidation or reorganization of such entity under any Debtor Relief Law or an involuntary case or proceeding seeking the appointment of a receiver, liquidator, sequestrator, custodian, trustee or other officer having similar powers of the Borrower or to take possession of all or a substantial portion of its property or to operate all or a substantial portion of its business, and any of the following events occur: (i) the Borrower consents to the institution of such involuntary case or proceeding; (ii) the petition commencing the involuntary case or proceeding is not timely controverted; (iii) the petition commencing such involuntary case or proceeding remains undismissed and unstayed for a period of thirty (30) days; or (iv) an order for relief shall have been issued or entered 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;(g) <u>Voluntary Bankruptcy; Appointment of Receiver, Etc.</u> The Borrower shall institute a voluntary case seeking liquidation or reorganization under any Debtor Relief Law, or shall consent thereto; or shall consent to the conversion of an involuntary case to a voluntary case; or shall file a petition, answer a complaint or otherwise institute any proceeding seeking, or shall consent to or acquiesce in the appointment of, a receiver, liquidator, sequestrator, custodian, trustee or other officer with similar powers of it or to take possession of all or a substantial portion of its property or to operate all or a substantial portion of its business; or shall make a general assignment for the benefit of creditors; or shall generally not pay its debts as they become due; or the partner, management committee, board of directors (or any similar governing body) of the Borrower adopts any resolution or otherwise authorizes action to approve any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Termination of Loan Documents, Etc.</u> Any Loan Document, or any material provision thereof, shall cease to be in full force and effect for any reason, or any Lien in favor of the Lender thereunder shall fail to have the priority required thereunder, except upon a release or termination of such Loan Document or Lien pursuant to the terms thereof or as a result of acts or omissions of the Lender, provided that, for the avoidance of doubt, this Section 9.01(h) shall not limit the obligations of the Borrower or the rights of the Lender pursuant to Section 5.03;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Judgments and Attachments</u>. The Borrower shall suffer (A) any money judgments, fines, writs or warrants of attachment or similar processes that, individually or in the aggregate, involve an amount in excess of the Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and has not denied or failed to acknowledge coverage or a third party indemnity from an indemnitor reasonably acceptable to the Lender) or (B) any final non-monetary judgment or decree (including a judgment for injunctive relief) that could reasonably be expected to have a Material Adverse Effect, and, in any such case, such judgments, fines, writs, warrants, decrees or other orders shall continue unsatisfied and unstayed for a period of thirty (30) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Investment Company</u>. The Borrower shall fail (x) to maintain its qualification as a "Regulated Investment Company" (as defined in Section 851 of the Code), (y) to be registered as a closed-end management investment company under the Investment Company Act or (z) to comply with any applicable coverage ratio requirements under the Investment Company 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;(k) <u>Change of Control</u>. A Change of Control 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;(l) <u>Cross-Default</u>. The occurrence of any of the following with respect to the Borrower: (i) a default, event of default, termination event or other similar condition or event (however described) in respect of such parties under one or more agreements or instruments relating to any Debt (individually or collectively) in an aggregate principal amount of not less than the Threshold Amount which has resulted in such Debt becoming due and payable under such agreements or instruments before it would otherwise have been due and payable or (ii) a default by the Borrower in making one or more payments under one or more agreements or instruments relating to any Debt on the due date thereof in an aggregate principal amount of not less than the Threshold Amount under such agreements or instruments (after giving effect to any applicable notice requirement or grace 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;(m) <u>Regulatory Event</u>. Any Governmental Authority or self-regulatory organization commences a formal action, formal investigation, suit or other formal proceeding against the Borrower (or any Subsidiary thereof), its Managing Entity, the Manager, investment manager, or any senior employee thereof involving allegations of fraud, breach of law or regulation or similar misconduct, that could reasonably be expected to, 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;(n) <u>Auditor Event</u>. The making of any going concern or other material qualification in any audit or review opinion with respect to the Borrower; 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;(o) <u>Affiliated Person</u>. The Lender shall become an "affiliate" (within the meaning of Section 23A of the Federal Reserve Act, as amended) of, or an "affiliated person" or an "affiliated person" of an "affiliated person" (as defined in Section 2(a)(3) of the Investment Company Act) of, the Borrower.

Section 9.02 <u>Remedies</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 an Event of Default occurs under Section 9.01(f) or 9.01(g), the obligations of the Lender to make any Loan hereunder shall cease, and the unpaid principal amount of the Loans and all other Obligations shall automatically become immediately due and payable, without presentment, demand, protest, notice or other requirements of any kind, all of which are hereby expressly waived by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If an Event of Default occurs, other than under Sections 9.01(f) or 9.01(g), and is continuing, the Lender may by written notice to the Borrower, declare the unpaid principal amount of the Loans and all other Obligations to be, and the same shall thereupon become, due and payable, without presentment, demand, protest, any additional notice or other requirements of any kind, all of which are hereby expressly waived by the Borrower.

&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 any Event of Default occurs and is continuing, the Lender may pursue and enforce any of the Lender's rights and remedies under the Loan Documents, or otherwise provided under any Applicable Law or agreement, without presentment, demand, protest, notice or other requirements of any kind, all of which are hereby expressly waived by the Borrower.

&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 an Event of Default occurs and is continuing, the Borrower shall (unless waived by the Lender) be required to apply 100% of any Proceeds received by the Borrower in respect of Portfolio Investments to repay the Loans until the Loans are repaid in full.

Section 9.03 <u>Application of Proceeds</u>. If the unpaid principal amount of the Loans and all other Obligations have become due and payable following an Event of Default, and such acceleration and its consequences have not been rescinded and annulled, any funds collected by Lender or the Lender hereunder or pursuant to any other Loan Document shall be applied by the Lender in the following order:

*First*, to pay all costs and expenses of the Lender;

*Second*, to pay all accrued and unpaid interest and fees on the Loans;

*Third*, to pay all unpaid principal of the Loans;

*Fourth*, to pay, on a *pari passu* basis, any other outstanding Obligations (other than principal of and interest on the Loans and including, for the avoidance of doubt, the payment of interest on any Obligations (other than principal and interest) due and owing to the Lender under any Loan Document);

*Fifth*, to pay the remainder, if any, to the Borrower or to any other Person legally entitled thereto.

**Article 10<br>[RESERVED]**

**Article 11<br>MISCELLANEOUS**

Section 11.01 <u>Lender Requested Appraisal</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 Borrower and the Lender agree that the Lender shall have the right (which may be exercised upon the occurrence of an Adjustment Event, during the continuance of an Event of Default and otherwise not more than once in any calendar year for each Portfolio Investment) to request an independent valuation for any Portfolio Investment from a Third Party Valuation Agent (which, for the avoidance of doubt, may also be directly engaged by the Lender on the Borrower's behalf) from time to time at the expense of the Lender. The Lender shall use commercially reasonable efforts to cause such report to be provided within thirty days of any such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Lender has engaged a Third Party Valuation Agent who has provided an estimated Fair Market Value (the "**New Valuation**") which is less than the Borrower's Internal Valuation and the Lender, acting reasonably, has determined that such New Valuation shall be used as the Fair Market Value, the Borrower may, within 45 days after such New Valuation is provided (during which period the New Valuation will apply), dispute such New Valuation by engaging, at the Borrower's own expense, an independent valuation for such Portfolio Investment from a Third Party Valuation Agent (a "**Dispute Valuation**"). In the event such Dispute Valuation is higher than the New Valuation, the Dispute Valuation will be used for all purposes as the Fair Market Value hereunder until another Internal Valuation or Dispute Valuation becomes available; provided that in no event will the Fair Market Value exceed the valuation reported by the Borrower.

Section 11.02 <u>Expenses; Indemnity; Damage Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Costs and Expenses</u>. The Borrower shall pay: (i) all reasonable and documented third party out-of-pocket expenses incurred by the Lender and its Affiliates (including the reasonable and documented fees, charges and disbursements of external counsel for the Lender), in connection with the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated); and (ii) all reasonable and documented third party expenses incurred by the Lender (including the fees, charges and disbursements of any counsel, appraisers or consultants for the Lender), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section 11.02; or (B) in connection with the Loans made hereunder, including all such documented third party out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or in connection with the protection, preservation, exercise or enforcement of any of the terms of the Loan Documents or in connection with any foreclosure, collection or bankruptcy proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by Borrower</u>. The Borrower shall indemnify the Lender (and any sub-agent thereof) and each Related Party of any of the foregoing Persons (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all actual losses, claims, damages, liabilities and related expenses (including the reasonably documented fees, charges and disbursements of any external counsel for any Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower directly arising out of, in connection with, or as a result of: (i) the execution or delivery of this Agreement, any other Loan Document or any other matter relating to the performance by the parties hereto of their respective obligations hereunder or thereunder, the consummation of the transactions contemplated hereby or thereby, or, in the case of the Lender (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents; (ii) the Collateral or other documents related thereto or amendments or modifications thereof, any matters contemplated therein or breach thereof; (iii) any Loan or the use or proposed use of the proceeds; or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower, and regardless of whether any Indemnitee is a party thereto, <u>provided</u> that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (i) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence, bad faith or willful misconduct of such Indemnitee or any of its controlled Related Parties, (ii) resulted from grossly negligent breach or breach in bad faith of such Indemnitee's obligations hereunder or under any other Loan Document or (iii) resulted from a claim not involving an act or omission of the Borrower and that is brought by an Indemnitee against another Indemnitee (other than against the Lender in its capacity as such). Without limiting the provisions of Section 2.09, this Section 11.02(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. from any non-Tax claim.

&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>[Reserved]</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;(d) <u>Waiver of Consequential Damages, Etc.</u> No Indemnitee shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such party through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the bad faith, gross negligence or willful misconduct of such party. No Indemnitee shall be liable for any special, indirect, consequential or punitive damages related to the transactions contemplated by this Agreement, or any act, omission or event occurring in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payments</u>. All amounts due under this Section 11.02 shall be payable not later than ten (10) Business Days after demand therefor.

Section 11.03 <u>Waivers; Amendments in Writing</u>. Neither this Agreement nor any other Loan Document, nor any of the terms hereof or thereof, may be amended, waived, discharged or terminated, unless such amendment, waiver, discharge, or termination is in writing and signed by the Lender and the Borrower.

Section 11.04 <u>Waiver; Cumulative Remedies; Enforcement</u>. No failure by the Lender to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

Section 11.05 <u>Notices, Etc.</u> All notices and other communications under this Agreement shall be in writing and shall be personally delivered or sent by prepaid courier, by overnight, registered or certified mail (postage prepaid), by electronic mail, facsimile or by telecopy, and shall be effective and be deemed to have been received (i) if delivered by hand or courier, upon delivery, (ii) if delivered by overnight courier service, one (1) Business Day after delivery to such courier service, (iii) if delivered by registered or certified mail, three (3) Business Days after deposit in the mail, (iv) if delivered by facsimile or telecopy, upon sender's receipt of confirmation of proper transmission, and (v) if delivered by electronic mail, upon the date such electronic mail is sent. Unless otherwise specified in a notice sent or delivered in accordance with this Section 11.05, all notices and other communications shall be given to the parties hereto at their respective addresses (or to their respective facsimile numbers, telecopier numbers or electronic mail addresses) indicated in <u>Schedule 1.01</u> (in the case of the Lender) or <u>Schedule 11.05</u> (in the case of the Borrower). The parties hereto may update their respective notices addresses indicated on <u>Schedule 1.01</u> or <u>11.05</u>, as applicable, by written notice to the Lender.

Section 11.06 <u>Successors and Assigns</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>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lender. The Lender may not assign or otherwise transfer any of its rights or obligations hereunder except: (i) by way of assignment in accordance with the provisions of clause (b) of this Section 11.06; (ii) by way of participation in accordance with the provisions of clause (e) of this Section 11.06; or (iii) by way of pledge or assignment of a security interest subject to the restrictions of clause (g) of this Section 11.06 (and any other attempted or purported sale, assignment, transfer or delegation by any party hereto shall be null and void).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments by the Lender</u>. The Lender may at any time assign to one or more assignees (each, an "<u>Assignee</u>") all or a portion of its rights and obligations under this Agreement and any other Loan Document (including all or a portion of its Commitment and the Loans at the time owing to it) with the consent of the Borrower so long as no Event of Default has occurred and is continuing (such consent not to be (A) required in the case of an assignment by the Lender to an Affiliate of the Lender or (B) otherwise unreasonably withheld or delayed); provided that any such assignment shall be subject to the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Assignment and Assumption Agreement</u>. The parties to each assignment (but not the Borrower) shall execute and deliver to the Lender an Assignment and Assumption Agreement, together with the Lender's customary processing and recordation fee; <u>provided</u>, <u>however</u>, that the Lender may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The Assignee shall deliver to the Lender an administrative questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>No Assignment to Certain Persons</u>. No such assignment shall be made: (A) to the Borrower or any Affiliate or Subsidiary of the Borrower; or (B) to a natural 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;(c) <u>Effect of Assignment</u>. Subject to acceptance and recording thereof by the Lender pursuant to clause (d) of this Section 11.06, from and after the effective date specified in each Assignment and Assumption Agreement, the Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption Agreement, have the rights and obligations of the Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption Agreement covering all of the assigning Lender's rights and obligations under this Agreement, the Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits and obligations of Sections 2.07, 2.09, 2.10 and 11.12 with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by the Lender of rights or obligations under this Agreement that does not comply with this subsection (c) shall be treated for purposes of this Agreement as a sale by the Lender of a participation in such rights and obligations in accordance with clause (e) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Register.</u> The Lender, acting solely for this purpose as a non-fiduciary agent of the Borrower (and such agency being solely for tax purposes), shall maintain at the Lender's Lending Office a copy of each Assignment and Assumption Agreement delivered to it and a register for the recordation of the names and addresses of the Lender, and the Commitment of, and principal amounts (and stated interest) of the Loans owing to, the Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Lender shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as the Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and the Lender, at any reasonable time and from time to time upon reasonable prior written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Participations</u>. The Lender may at any time, without the consent of, or notice to, the Borrower, sell participations to any Person (other than a natural person, the Borrower, or any Affiliate or Subsidiary thereof) (each, a "<u>Participant</u>") in all or a portion of the Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); <u>provided</u> that: (i) the Lender's obligations under this Agreement shall remain unchanged; (ii) the Lender shall remain solely responsible to the other parties hereto for the performance of such obligations; and (iii) the Borrower, the Lender shall continue to deal solely and directly with the Lender in connection with the Lender's rights and obligations under this Agreement. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.07 and 2.09 (subject to the requirements and limitations therein, including the requirements under Section 2.09(e) (it being understood that the documentation required under Section 2.09(e) shall be delivered to the participating Lender)) to the same extent as if it were the Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; <u>provided</u> that such Participant shall not be entitled to receive any greater payment under Sections 2.07 or 2.09, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.

To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.10 as though it were the Lender. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "<u>Participant Register</u>"); <u>provided</u> that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and the Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Lender (in its capacity as Lender) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Certain Pledges</u>. The Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of the Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; <u>provided</u> that no such pledge or assignment shall release the Lender from any of its obligations hereunder or substitute any such pledgee or assignee for the Lender as a party 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;(g) <u>Electronic Execution of Assignments</u>. The words "execution," "signed," "signature," and words of like import in any Assignment and Assumption Agreement shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

Section 11.07 <u>Confidentiality</u>. The Lender and the Borrower will maintain all information regarding the existence or terms of this Agreement (provided that the Borrower may disclose the aggregate amount of loans and commitments under this Agreement and such other information as may be approved by the Lender from time to time in its reasonable discretion) and, with respect to the Lender, any confidential information that it may receive from the Borrower pursuant to this Agreement confidential, and shall not disclose such information to third parties (other than any party to a Loan Document) without the prior consent of the applicable party, except for disclosure: (a) to its to Affiliates, directors, officers, employees, accountants, attorneys and other third-party service providers who are informed of the confidential nature of such information and who are subject to customary confidentiality obligations of professional practice or who agree in writing to be bound by the terms of this Section 11.07; (b) to regulatory officials having jurisdiction over such party; (c) required by Applicable Law or in connection with any legal proceeding; and (d) subject to an agreement containing provisions substantially the same as those in this Section, by the Lender, to another Person in connection with (i) a potential assignment or participation under Section 11.06, (ii) any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder or (iii) any exercise of remedies by the Lender (including an actual or potential sale of Collateral or Portfolio Investments) following the occurrence and during the continuance of an Event of Default. The Borrower acknowledges and agrees that the Lender is an affiliate within a corporate group (each, a "<u>Bank Group</u>") which is a global provider of banking, financial, advisory, investment and funds management services, and that nothing contained in this Section 11.07 shall in any way inhibit, restrict or otherwise limit the business and other activities of the Lender or the Bank Groups except to the extent provided in this Section 11.07. Notwithstanding anything in this Section 11.07 to the contrary, this Section 11.07 shall not be applicable to any personnel of either the Lender or the related Bank Groups who have not reviewed the confidential information or otherwise been informed of the contents thereof by those who have reviewed it, and (b) to the extent that any information that might otherwise be subject to this provision is obtained by the Lender or the related Bank Groups in any context other than in connection with this Agreement and without breach of this Section 11.07, this Section 11.07 shall not bind any personnel of either the Lender or the related Bank Groups who have reviewed such information or been informed of the contents thereof solely in such other context and not in connection with this Agreement or in breach of this Section 11.07.

Section 11.08 <u>Governing Law</u>. THIS AGREEMENT AND ANY OTHER LOAN DOCUMENT (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN), AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO AND THERETO SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

Section 11.09 <u>Choice of Forum; Consent to Service of Process.</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) Pursuant to Section 5-1402 of the New York General Obligations Law, all actions or proceedings arising in connection with this Agreement shall be tried and litigated in state or Federal courts located in the Borough of Manhattan, New York City, State of New York. **THE BORROWER AND THE LENDER WAIVES ANY RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF *FORUM NON CONVENIENS*, TO ASSERT THAT IT IS NOT SUBJECT TO THE JURISDICTION OF SUCH COURTS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION.**

&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) Nothing contained in this Section shall preclude the Lender from bringing any action or proceeding against the Borrower arising out of or relating to this Agreement in the courts of any place where such party or any of its assets may be found or located. THE BORROWER HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE COURTS OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK AND APPELLATE COURTS FROM ANY THEREOF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) THE BORROWER IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.05. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

Section 11.10 <u>Setoff</u>. If an Event of Default shall have occurred and be continuing, the Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by the Lender or any such Affiliate to or for the credit or the account of the Borrower against any and all of the Obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to the Lender, irrespective of whether or not the Lender shall have made any demand under this Agreement or any other Loan Document and although such Obligations of the Borrower may be contingent or unmatured or are owed to a branch or office of the Lender different from the branch or office holding such deposit or obligated on such indebtedness. The rights of the Lender and its Affiliates under this Section 11.10 are in addition to other rights and remedies (including other rights of setoff) that the Lender or its Affiliates may have. The Lender agrees to notify the Borrower promptly of any such setoff and application, <u>provided</u> that the failure to give such notice shall not affect the validity of such setoff and application.

Section 11.11 <u>[Reserved]</u>.

Section 11.12 <u>Severability</u>. If any provision of this Agreement shall be held to be invalid, illegal or unenforceable under Applicable Law in any jurisdiction, such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability, which shall not affect any other provisions hereof or the validity, legality or enforceability of such provision in any other jurisdiction. If any provision of this Agreement shall conflict with or be inconsistent with any provision of any other Loan Documents, then the terms, conditions and provisions of this Agreement shall prevail.

Section 11.13 <u>Survival of Agreements, Representations and Warranties</u>. All agreements, representations and warranties made herein shall survive the execution and delivery of this Agreement, the closing and the extensions of credit hereunder and shall continue until payment and performance of any and all Obligations. Any investigation at any time made by or on behalf of the Lender shall not diminish the right of the Lender to rely thereon. Without limitation, the agreements and obligations of the Borrower contained in Sections 2.07, 2.09, 2.10 and 11.02 shall survive the payment in full of all other Obligations.

Section 11.14 <u>Execution in Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement. This Agreement shall become effective upon the execution of a counterpart hereof by each of the parties hereto. Faxed, emailed .pdf or otherwise electronically submitted signatures to this Agreement shall be binding for all purposes.

Section 11.15 <u>Complete Agreement; Third Party Beneficiaries</u>. This Agreement, together with the other Loan Documents, is intended by the parties as the final expression of their agreement regarding the subject matter hereof and as a complete and exclusive statement of the terms and conditions of such agreement. There are no third party beneficiaries of this Agreement.

Section 11.16 <u>No Fiduciary Duties or Partnership; Limitation of Liability, Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No claim shall be made by the Borrower against the Lender or the Affiliates, directors, officers, employees or agents of the Lender for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or under any other theory of liability arising out of or related to the transactions contemplated by this Agreement, or any act, omission or event occurring in connection therewith; and the Borrower waives, releases and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in their favor.

&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) All attorneys, accountants, appraisers and other professional Persons and consultants retained by the Lender shall have the right to act exclusively in the interest of the Lender and shall have no duty of disclosure, duty of loyalty, duty of care or other duty or obligation of any type or nature whatsoever to the Borrower or any of its shareholders or Affiliates or any other Person.

Section 11.17 <u>WAIVER OF TRIAL BY JURY</u>. THE BORROWER AND THE LENDER EACH WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION UNDER THIS AGREEMENT OR ANY ACTION ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHICH PARTY INITIATES SUCH ACTION OR ACTIONS.

Section 11.18 <u>[Reserved]</u>.

Section 11.19 <u>Maximum Interest</u>. Regardless of any provision contained in any of the Loan Documents, the Lender shall never be entitled to receive, collect or apply as interest on the Obligations any amount in excess of the Maximum Rate, and, in the event that the Lender ever receives, collects or applies as interest any such excess, the amount which would be excessive interest shall be deemed to be a partial prepayment of principal and treated hereunder as such; and, if the principal amount of the Obligations is paid in full, any remaining excess shall forthwith be paid to the Borrower. In determining whether or not the interest paid or payable under any specific contingency exceeds the Maximum Rate, the Borrower and the Lender shall, to the maximum extent permitted under Applicable Law: (a) characterize any nonprincipal payment as an expense, fee or premium rather than as interest; (b) exclude voluntary prepayments and the effects thereof; and (c) amortize, prorate, allocate and spread, in equal parts, the total amount of interest throughout the entire contemplated term of the Obligations so that the interest rate does not exceed the Maximum Rate; <u>provided</u> that, if the Obligations are paid and performed in full prior to the end of the full contemplated term thereof, and if the interest received for the actual period of existence thereof exceeds the Maximum Rate, the Lender shall refund to the Borrower the amount of such excess or credit the amount of such excess against the principal amount of the Obligations and, in such event, the Lender shall not be subject to any penalties provided by any laws for contracting for, charging, taking, reserving or receiving interest in excess of the Maximum Rate. As used in this Section 11.19, the term "applicable law" shall mean the law in effect as of the Closing Date; <u>provided</u>, <u>however</u>, that in the event there is a change in the law which results in a higher permissible rate of interest, then the Loan Documents shall be governed by such new law as of its effective date.

Section 11.20 <u>Judgment Currency</u>. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or any other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the Lender could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given. The obligation of the Borrower in respect of any such sum due from it to the Lender hereunder or under the other Loan Documents shall, notwithstanding any judgment in a currency (the "<u>Judgment Currency</u>") other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the "<u>Agreement Currency</u>"), be discharged only to the extent that on the Business Day following receipt by the Lender of any sum adjudged to be so due in the Judgment Currency, the Lender may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so purchased is less than the sum originally due to the Lender from the Borrower in the Agreement Currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Lender or the Person to whom such obligation was owing against such loss. If the amount of the Agreement Currency so purchased is greater than the sum originally due to the Lender in such currency, the Lender agrees to promptly return the amount of any excess to the Borrower (or to any other Person who may be entitled thereto under Applicable Law).

Section 11.21 <u>Customer Identification Notice</u>. The Lender hereby notifies the Borrower that U.S. law requires the Lender to obtain, verify and record information that identifies the Borrower (and in certain circumstances the beneficial owners thereof), which information includes the name and address of the Borrower (and, if applicable, beneficial owner) and other information that will allow the Lender to identify the Borrower (and, if applicable, beneficial owner).

Section 11.22 <u>Payments Set Aside</u>. To the extent that the Borrower makes a payment to the Lender, the Lender exercises its right of setoff provided hereunder or the Lender receives payment as proceeds of Collateral or otherwise, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Lender in its discretion) to be repaid, in whole or in part, to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect, together with all Collateral security therefor, as if such payment had not been made or such setoff had not occurred. If prior to any such invalidation, declaration, setting aside or requirement, this Agreement shall have been canceled or surrendered, this Agreement shall be reinstated in full force and effect, and such prior cancellation or surrender shall not diminish, discharge or otherwise affect the obligations of the Borrower in respect of the amount of the affected payment.

Section 11.23 <u>Headings</u>. The Article and Section headings used in this Agreement are for convenience of reference only and shall not affect the construction hereof.

[REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| **POWERLAW CORP.** | **POWERLAW CORP.** |
| By: | /s/ Peter Smith |
| Name: | Peter Smith |
| Title: | President |

---

*[Signature Page to Credit Agreement]*

---

| | |
|:---|:---|
| Acknowledged and agreed to with respect to Section 5.04 only: | Acknowledged and agreed to with respect to Section 5.04 only: |
| **MANAGER:** | **MANAGER:** |
| **AKKADIAN CEF MANAGER, LLC** | **AKKADIAN CEF MANAGER, LLC** |
| By: | /s/ Peter Smith |
| Name: | Peter Smith |
| Title: | Managing Director |

---

*[Signature Page to Credit Agreement]*

---

| | | |
|:---|:---|:---|
| **LENDER:** | **LENDER:** | **LENDER:** |
| **STIFEL BANK**, the Lender | **STIFEL BANK**, the Lender | **STIFEL BANK**, the Lender |
| By: | /s/ Luke Jones | /s/ Luke Jones |
|  | Name: | Luke Jones |
|  | Title: | Assistant Vice President |

---

*[Signature Page to Credit Agreement]*

**<u>Schedule 1.01</u>**

**Lender's Lending Office; Lender Commitments; Lending Offices**

**<u>LENDER COMMITMENT</u>**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Name** | &nbsp;&nbsp;**Commitment** |
| &nbsp;&nbsp;&nbsp;STIFEL BANK | &nbsp;&nbsp;$20000000 |
| &nbsp;&nbsp;&nbsp;**TOTAL:** | &nbsp;&nbsp;**$20000000** |

---

**<u>LENDER'S LENDING OFFICE</u>**

**STIFEL BANK**

All notices to:

Stifel Bank

as the Lender

501 North Broadway

St. Louis, Missouri 63102

Attn: Managing Director

Email: fundbanking@stifelbank.com; loanservices@stifelbank.com

and

Stifel Bank

501 North Broadway

St. Louis, Missouri 63102

Attn: General Counsel

Email: StifelBankLegal@stifel.com

Schedule 1.01 – Page 1

**<u>Schedule 3.01</u>**

**<u>Certain Closing Documents for Closing Date</u>**

This Agreement, executed by the Borrower, the Manager and the Lender;

Note, executed by the Borrower, if requested by the Lender;

Pledge Agreement, executed by the Borrower and the Lender;

Account Control Agreement for the Collateral Account, executed by the Borrower, the Lender and the Account Bank;

Closing Certificate for the Borrower and, including its Constituent Documents, investment advisory agreement with Manager, certificate of good standing, resolutions, and incumbencies with respect thereto;

Searches of Uniform Commercial Code Filings (or their equivalent), litigation proceedings and bankruptcy proceedings in the jurisdiction of formation of the Borrower and each Eligible Investment and/or where a filing has been or would need to be made in order to perfect the Lender's first priority security interest in the Collateral, copies of the financing statements on file in such jurisdictions and evidence that no Liens on the Collateral exist, or, if necessary, copies of proper financing statements, if any, filed on or before the Closing Date necessary to terminate all security interests and other rights of any Person in any Collateral previously granted; and

UCC financing statements reasonably satisfactory to the Lender with respect to the Collateral to be filed on the Closing Date.

Schedule 3.01

**<u>Schedule 5.02</u>**

**Collateral Accounts**

**<u>Collateral Account</u>:**

U.S. Bank National Association deposit account No.

Schedule 5.02

**<u>Schedule 11.05</u>**

**Borrower Information for Notices**

*If to Borrower*:

PowerLaw Corp.

6635 S. Dayton St Ste 310

Greenwood Village CO 80111

Attn: Peter Smith

Email:

Schedule 11.05

## Ex-99.(K)(5)

**Exhibit (k)(5)**

***Execution Version***

**PLEDGE AGREEMENT**

This PLEDGE AGREEMENT (this "<u>Pledge Agreement</u>"), dated as of December 31, 2025, is entered into by and among POWERLAW CORP., a Maryland Corporation (the "<u>Grantor</u>") and STIFEL BANK, as the secured party (the "<u>Secured Party</u>").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

WHEREAS, pursuant to that certain Senior Secured Credit Agreement (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time, the "<u>Credit Agreement</u>"), dated as of December 31, 2025, by and among, *inter alios*, the Grantor, as borrower (the "<u>Borrower</u>") and the Secured Party, as lender (the "<u>Lender</u>"), has agreed to make Loans to the Borrower;

WHEREAS, in order to induce the Secured Party to (a) enter into the Credit Agreement and other Loan Documents and (b) make the Loans provided for in the Credit Agreement, the Grantor has agreed to grant a continuing Lien on all assets owned by the Grantor to secure the Secured Obligations in accordance with the terms herein; and

NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained, and to induce the Secured Party to provide the Loans and other financial accommodations under the Credit Agreement, it is agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Defined Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All capitalized terms used but not defined herein have the meanings given to them in the Credit Agreement. All other capitalized terms contained in this Pledge Agreement, unless the context indicates otherwise, have the meanings provided for by the UCC to the extent the same are used or defined therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Collateral</u>" has the meaning specified in Section 2 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Collateral Account</u>" has the meaning assigned to such term in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Credit Agreement</u>" has the meaning assigned to such term in the recitals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Excluded Property</u>" has the meaning specified in Section 2 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Grantor</u>" has the meaning assigned to such term in the introductory paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Investment Property</u>" means all "investment property" as such term is defined in the UCC now owned or hereafter acquired by the Grantor, wherever located, including (i) all securities, whether certificated or uncertificated, including stocks, bonds, interests in limited liability companies, partnership interests, treasuries, certificates of deposit, and mutual fund shares, (ii) all securities entitlements of the Grantor, including the rights of the Grantor to any securities account and the financial assets held by a securities intermediary in such securities account and any free credit balance or other money owing by any securities intermediary with respect to that account, and (iii) all securities accounts of the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Pledge Agreement</u>" has the meaning assigned to such term in the introductory paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Power of Attorney</u>" has the meaning specified in Section 9 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Proceeds</u>" shall mean "proceeds," as such term is defined in the UCC, and, in any event, shall include (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to Grantor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to Grantor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any Governmental Authority (or any Person acting under color of governmental authority), (iii) any recoveries by Grantor against third parties with respect to any litigation or dispute concerning any of the Collateral and (iv) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral, upon disposition or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Secured Obligations</u>" means all Obligations now or hereafter existing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Secured Party</u>" has the meaning assigned to such term in the introductory paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Termination Date</u>" means the date on which all obligations under this Pledge Agreement in respect of the Collateral shall terminate, which date shall be the earlier of (i) the indefeasible payment in full of all Obligations under the Credit Agreement (other than obligations under Section 11.02 thereof) or (ii) the irrevocable written release by Lender of the Grantor from any and all obligations under this Pledge Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>UCC</u>" means the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the State of New York; <u>provided</u>, <u>however</u>, that if, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of Secured Party's security interest in the Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the term "UCC" means the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions hereof relating to such attachment, perfection, or priority and for purposes of definitions related to such provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Grant of Lien</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To secure the prompt and complete payment, performance and observance of the Secured Obligations, when due, whether by lapse of time, acceleration or otherwise, the Grantor hereby grants, assigns, conveys, mortgages, pledges, hypothecates, assigns by way of security and transfers to the Secured Party a Lien upon and continuing security interest in all of its right, title and interest in, to and under all of the following personal property and other assets, whether now owned by or owing to, or hereafter acquired by the Grantor, and regardless of where located (all of which being hereinafter collectively referred to as the "<u>Collateral</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 100% of the Equity Interests of the Grantor in the Portfolio Investments and Intermediate Vehicles (if any) directly owned by it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Collateral Account and all cash and deposits held therein or credited thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all Proceeds in respect of Portfolio Investments or investments in Intermediate Vehicles (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;(iv) to the extent not otherwise described above, all Accounts, Chattel Paper, Deposit Accounts, Documents, General Intangibles, including Payment Intangibles, Goods, Instruments, Investment Property, Letter-of-Credit Rights and money;

&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) all rights accompanying the property in this Section 2 (including, without limitation, voting rights);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all Proceeds of the foregoing (whether such Proceeds arise before or after the commencement of any proceeding under any applicable bankruptcy, insolvency or similar law, by or against the Grantor) and all present and future claims, demands, causes and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing including all proceeds of the conversion, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, notes, drafts, checks, deposit accounts, insurance proceeds, rights to payment of any and every kind and other forms of obligations, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing and any substitutions or replacements therefor, including without limitation all Proceeds; 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;(vii) all books and records (including, without limitation, computer printouts, computer software and other computer output materials and records) related to any of the foregoing,

provided, that, for the avoidance of doubt, the Collateral will not include any right to issue capital calls to the Investors of Borrower or enforce any rights, titles, interests, remedies and privileges under the Constituent Documents against the Investors; provided, further, that the Collateral shall not include the Grantor's right, title, or interest in any of the property described in clause (i) above (1) that is subject to a legally enforceable restriction that validly prohibits the creation of a security interest thereon or expressly requires the consent of any person other than the Grantor or its affiliates which consent has not been obtained as a condition to the creation of such security interest or (2) to the extent that any law applicable thereto prohibits the creation of a security interest thereon, but only, in each case, to the extent, and for so long as, such prohibition or requirement for consent is enforceable and in effect (collectively, the "<u>Excluded Property</u>"); provided, however, that Excluded Property shall not include any proceeds, products, substitutions, or replacements of any Excluded Property (unless such proceeds, products, substitutions, or replacements would themselves otherwise constitute Excluded Property).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, to secure the prompt and complete payment, performance and observance of the Secured Obligations when due, whether by lapse of time, acceleration or otherwise, and in order to induce the Secured Party, the Grantor hereby grants to the Secured Party, a right, following the occurrence of and during the continuation of an Event of Default, of setoff against the property of the Grantor held by the Secured Party, consisting of property described above in Section 2(a) now or hereafter in the possession or custody of or in transit to the Secured Party, for any purpose, including safekeeping, collection or pledge, for the account of the Grantor, or as to which the Grantor may have any right or power.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Grantor Representations and Warranties</u>**. The Grantor represents and warrants to the Secured Party as of the date hereof, as of each Funding Date and as of each other date on which the Grantor makes or is deemed to make representations and warranties pursuant to the Loan Documents that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Grantor is the legal and equitable owner of or has rights in each item of the Collateral upon which it purports to grant a Lien hereunder and the Excluded Property and has good and valid title thereto, free and clear of any and all Liens other than Permitted Liens and has the right to pledge, sell, assign (including by way of security) and transfer such Collateral, in each case subject to Borrower Pledge Restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Grantor has not received notice of any previous assignments, charges or mortgages of or over any of the rights, title and interest from time to time in and to any of the Collateral that are purported to be in effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of the Collateral constituting Equity Interests is evidenced by certificates, is dealt or traded on any securities exchange or in securities markets or constitutes investment company securities (as defined under the UCC of any applicable jurisdiction) except as set forth on Schedule I hereto. The Constituent Documents of the Portfolio Companies that issued such Equity Interests do not provide that such Equity Interests may be a security governed by Article 8 of the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Grantor has reviewed the financing statements that the Secured Party intends to file with respect to each item of the Collateral upon which it purports to grant a Lien hereunder and confirms that such financing statements are accurate with respect to any information pertaining to Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No effective security agreement, financing statement, equivalent security or Lien instrument or continuation statement covering all or any part of the Collateral pledged by the Grantor hereunder or the Excluded Property is on file or of record in any public office, except such as may have been filed by the Grantor in favor of Secured Party pursuant to this Pledge Agreement or the other Loan Documents (or has been assigned by Grantor in favor of the Secured Party).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Pledge Agreement is effective to create a valid and continuing Lien on and, upon the filing of the appropriate financing statements in State of Maryland, a perfected Lien in favor of the Secured Party on the Collateral pledged by the Grantor hereunder with respect to which a Lien may be perfected by filing pursuant to the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The name set forth with respect to the Grantor on the signature page hereof is, and at all times has been, the exact and complete name of the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Grantor was formed, registered or incorporated (as applicable) in, and only in, the State of Maryland.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The representations and warranties set forth in this Section 3 are made as of the date hereof and as of each Funding Date and shall survive the execution and delivery of this Pledge Agreement until the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Grantor Covenants</u>**. The Grantor covenants and agrees with Secured Party that from and after the date of this Pledge Agreement and until the Termination Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Further Assurances: Pledge of Instruments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Grantor shall take any actions reasonably requested by Secured Party from time to time to cause the attachment, perfection and first priority of, and the ability of Secured Party to enforce, the security interest of Secured Party in any and all of the Collateral pledged by the Grantor hereunder, including, without limitation, (1) executing, delivering and, where appropriate, filing financing statements and amendments relating thereto under the UCC or other Applicable Law, to the extent, if any, that the Grantor's signature thereon is required therefor, (2) complying with any provision of any statute, regulation or treaty of the United States as to any Collateral pledged by the Grantor hereunder if compliance with such provision is a condition to attachment, perfection or priority of, or ability of Secured Party to enforce, the security interest of Secured Party in such Collateral, (3) obtaining the consents and approvals of any Governmental Authority or third party, including, without limitation, any consent of any licensor or other person obligated on Collateral pledged by the Grantor hereunder, and (4) taking all actions required by any earlier versions of the UCC or by other law, as applicable in any relevant jurisdiction. The Grantor shall take all steps reasonably requested by Secured Party to grant Secured Party control of all electronic chattel paper in accordance with the UCC and all "transferable records" as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National Commerce 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;(ii) In accordance with the Credit Agreement, the Grantor shall obtain an Account Control Agreement with the Account Bank with respect to the Collateral Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Grantor irrevocably and unconditionally authorizes Secured Party (or its agent) to file at any time and from time to time such financing statements with respect to the Collateral pledged by the Grantor hereunder (including an "all assets" filing) naming Secured Party or its designee as the secured party and the Grantor as debtor, as Secured Party may reasonably require, and including any other information with respect to the Grantor or otherwise required by part 5 of Article 9 of the UCC of such jurisdiction as Secured Party may determine, together with any amendment and continuations with respect thereto, which authorization shall apply to all financing statements filed on, prior to or after the date hereof and until the Termination Date. The Grantor hereby ratifies and approves all financing statements naming Secured Party as secured party and the Grantor, as the case may be, as debtor with respect to the Collateral pledged by the Grantor hereunder (and any continuations or amendments with respect to such financing statements) filed by or on behalf of Secured Party prior to the date hereof and ratifies and confirms the authorization of Secured Party to file such financing statements (and continuations or amendments, if any). In the event that the description of the collateral in any financing statement naming Secured Party as the secured party and the Grantor as debtor includes assets and properties of the Grantor that do not at any time constitute Collateral, whether hereunder, under any of the other Loan Documents or otherwise, the filing of such financing statement shall nonetheless be deemed authorized by the Grantor to the extent of the Collateral included in such description and it shall not render the financing statement ineffective as to any of the Collateral or otherwise affect the financing statement as it applies to any of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Certificated Form</u>. All certificates (if any) evidencing any Equity Interests pledged as Collateral by the Grantor hereunder and in the possession of the Grantor shall be delivered to and held by or on behalf of the Secured Party pursuant hereto except as noted on Schedule I. All Equity Interests that are delivered to the Secured Party pursuant to this Section 4(b) shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Secured Party. Schedule I hereto contains a complete listing of all of the Grantor's certificated Equity Interests. Immediately upon the Grantor's receipt of any pledged Collateral in certificated form (which shall be received by the Grantor in trust for the benefit of the Secured Party), the Grantor shall upon request of the Secured Party deliver such pledged Collateral to the Secured Party pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Article 8 of the UCC</u>. The Grantor shall not consent to any amendment to Constituent Documents of any person whose Equity Interests are pledged as Collateral hereunder that would provide that such pledged Equity Interests constitute a security pursuant to Section 8-103 of the UCC as in effect in any relevant jurisdiction, unless, if such Equity Interests are certificated and in the possession of the Grantor, the Grantor has delivered or caused to be delivered to the Secured Party the certificate(s) representing such securities, together with customary stock powers or other instruments of transfer duly executed in blank, pursuant to the terms hereof. If any such pledged Equity Interests are not represented by a certificate and are securities, the Grantor (i) shall use commercially reasonable efforts to enter into such agreement as the Secured Party reasonably requests in order to establish "control" of such pledged Equity Interests in favor of the Secured Party, and (ii) shall not consent to the entering into any agreement for "control" with any Person, other than the Secured Party, whereby the issuer of such Equity Interests effectively delivers "control" of such Equity Interests under the UCC to any Person (other than the Secured Party).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Maintenance of Records</u>. The Grantor shall keep and maintain, at its own cost and expense, records of the Collateral pledged by the Grantor hereunder that are complete in all material respects, including a record of any and all payments received and any and all credits granted with respect to such Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Limitation on Liens on Collateral</u>. The Grantor will not create, permit or suffer to exist, and the Grantor will use its reasonable efforts to defend the Collateral pledged by the Grantor hereunder and the Excluded Property against, and take such other action as is necessary to remove, any Lien on such Collateral or such Excluded Property except Permitted Liens. At the request of Secured Party, the Grantor will use its reasonable efforts to defend the right, title and interest of the Secured Party in and to the Collateral pledged by the Grantor hereunder and the Excluded Property against the claims and demands of all Persons whomsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Further Identification of Collateral</u>. The Grantor will, if reasonably requested by Secured Party, furnish to Secured Party, as often as Secured Party reasonably requests, statements and schedules further identifying and describing the Collateral pledged by the Grantor hereunder and the Excluded Property, all in such detail as Secured Party may reasonably specify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Notices</u>. The Grantor will advise Secured Party promptly, in reasonable detail, of any Lien (other than any Permitted Lien) on the Collateral pledged by the Grantor hereunder or on the Excluded Property, or Material Adverse Effect or other material impairment affecting, involving or relating to such Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Terminations; Amendments Not Authorized</u>. The Grantor acknowledges that prior to the Termination Date the Grantor is not authorized to, and agrees that it will not, file any amendment or termination statement with respect to any financing statement filed by Secured Party without the prior written consent of Secured Party, subject to the Grantor's rights under Section 9- 509(d)(2) of the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Grantor's Rights</u>. Except when an Event of Default has occurred and is continuing and Secured Party has notified Grantor in writing at least one (1) Business Day in advance that Grantor may no longer exercise its rights hereunder, the Grantor shall have the right, from time to time, to vote and give consents with respect to the Equity Interests pledged as Collateral thereby, or any part thereof for all purposes to the extent not in violation of the Credit Agreement or any other Loan Documents. Subject to the one (1) Business Day notice requirement directly above, during the continuance of an Event of Default, Grantor shall not vote, provide any consent or exercise any other right with respect to the Collateral without the prior written consent of the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>The Secured Party's Rights; Limitations on the Secured Party's Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is expressly agreed by the Grantor that, anything herein to the contrary notwithstanding, the Grantor shall remain liable under each of its Contractual Obligations and all other contracts relating to the Collateral to observe and perform all the conditions and obligations to be observed and performed by it thereunder. The Secured Party shall have no obligation or liability under any Contractual Obligations and all other contracts relating to the Collateral by reason of or arising out of this Pledge Agreement or the granting herein of a Lien thereon or the receipt by Secured Party of any payment relating to any such Contractual Obligation and all other contracts relating to the Collateral pursuant hereto. The Secured Party shall not be required or obligated in any manner to perform or fulfill any of the obligations of any Grantor under or pursuant to any Contractual Obligations and all other contracts relating to the Collateral, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any Contractual Obligations and all other contracts relating to the Collateral, or to present or file any claims, or to take any action to collect or enforce any performance or the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Secured Party may at any time after the occurrence and during the continuation of an Event of Default (i) at least one (1) Business Day after providing written notice of its intention to exercise its rights under this Section 6(b), notify any issuer of any Investment Property contained in a Collateral Account pledged hereunder, or any other Persons obligated on or related to the Collateral that Secured Party has a security interest therein, and that payments shall be made directly to Secured Party, provided that failure to provide any such notice to the Grantor shall not impact the rights and remedies of Secured Party hereunder, (ii) concurrently with written notice to the Grantor, notify any depositary bank or securities intermediary under any Account Control Agreement that all property in the related Collateral Account shall be transferred directly to Secured Party or that Secured Party is exercising any of its remedies with respect thereto, provided that failure to provide any such notice to the Grantor shall not impact the rights and remedies of Secured Party hereunder, or (iii) upon the request of Secured Party, the Grantor shall so notify such Persons. Once any such notice has been given to such Persons, so long as any Event of Default shall be continuing, the Grantor shall not give any contrary instructions to such Persons without Secured Party's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Secured Party and Related Parties shall use good faith efforts to conduct repossessions, retentions or sales of Collateral in accordance with Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Remedies; Rights upon Event of Default With Respect to Collateral</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to all other rights and remedies granted to it under this Pledge Agreement, the Credit Agreement, the other Loan Documents and under any other instrument or agreement securing, evidencing or relating to any of the Secured Obligations, if any Event of Default shall have occurred and be continuing, Secured Party may exercise all rights and remedies of a secured party under the UCC in accordance with the terms of the Loan Documents. Without limiting the generality of the foregoing, the Grantor expressly agrees that in such event Secured Party, without demand of performance or other demand, advertisement or notice of any kind (except the notice specified below of time and place of public or private sale) to or upon the Grantor or any other Person (all and each of which demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the UCC and other Applicable Law) but in accordance with the terms of the Loan Documents, may forthwith enter upon the premises of the Grantor where any Collateral is located through self-help, without judicial process, without first obtaining a final judgment or giving the Grantor or any other Person notice and opportunity for a hearing on Secured Party's claim or action and may collect, receive, assemble, process, appropriate and realize upon the Collateral, or any part thereof, and may forthwith sell, license, assign, give an option or options to purchase, or sell or otherwise dispose of and deliver such Collateral (or contract to do so), or any part thereof, in one or more parcels at a public or private sale or sales, to the highest bidder, for cash or on credit or for future delivery without assumption of any credit risk; <u>provided</u> that Secured Party reserves the right to reject any and all bids at such sales which, in its reasonable discretion, it shall deem inadequate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Secured Party shall have the right upon any such public sale or sales and, to the extent permitted by Applicable Law, upon any such private sale or sales, to purchase for the benefit of the Secured Party, the whole or any part of said Collateral so sold, free of any right or equity of redemption, which equity of redemption the Grantor hereby releases, and such sales may be adjourned and continued from time to time with or without notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Secured Party shall have the right to conduct such sales on the Grantor's premises or elsewhere and shall have the right to use the Grantor's premises without charge for such time or times as Secured Party reasonably deems necessary or advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if any Event of Default shall have occurred and be continuing, the Grantor further agrees, at Secured Party's request, to assemble the Collateral and make it available to Secured Party at a place or places designated by Secured Party which are reasonably convenient to Secured Party and the Grantor, whether at the Grantor's premises or elsewhere. Until Secured Party is able to effect a sale or other disposition of the Collateral, Secured Party shall have the right (but not the obligation) to hold or use the Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving the Collateral or its value or for any other purpose deemed appropriate by Secured Party. Secured Party shall have no obligation to the Grantor to maintain or preserve the rights of the Grantor as against third parties with respect to the Collateral while the Collateral is in the possession of Secured Party. Secured Party may, if it so elects, seek the appointment of a receiver or keeper to take possession of the Collateral and to enforce any of the Secured Party's remedies, with respect to such appointment without prior notice or hearing as to such appointment. Secured Party shall apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale to the Secured Obligations in accordance with Section 9.03 of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the maximum extent permitted by Applicable Law, the Grantor waives all claims, damages, and demands against Secured Party and their respective Related Parties arising out of the repossession, retention or sale of the Collateral except to the extent they arise out of the bad faith, gross negligence or willful misconduct of Secured Party or such Secured Party. Grantor shall remain liable for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient to pay all Secured Obligations, including any reasonable attorneys' fees and other reasonable expenses incurred by Secured Party to collect such deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Secured Party shall give the applicable Grantor not less than ten (10) days' prior notice of the time and place of any sale or other intended disposition of any of the Collateral, except any Collateral which is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market. Any such notice shall (i) in the case of a public sale, state the time and place fixed for such sale, (ii) in the case of a private sale, state the day after which such sale may be consummated, (iii) contain the information specified in Section 9-613 of the UCC, (iv) be authenticated, and (v) be sent to the parties required to be notified pursuant to Section 9-611 of the UCC; <u>provided</u> that, if Secured Party fails to comply with this sentence in any respect, its liability for such failure shall be limited to the liability (if any) imposed on it under the UCC. Secured Party and the Grantor agree that such notice constitutes reasonable notification within the meaning of Section 9-611 of the UCC. Except as otherwise specifically provided herein, the Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by Applicable Law) of any kind in connection with this Pledge Agreement or any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To the extent that Applicable Law imposes duties on Secured Party to exercise remedies in a commercially reasonable manner, the Grantor acknowledges and agrees that it is not commercially unreasonable for Secured Party (i) to fail to incur expenses reasonably deemed significant by Secured Party to prepare the Collateral for disposition, (ii) to fail to obtain third party consents, for access to the Collateral to be disposed of, if not required by Applicable Law, or to obtain or, if not required by Applicable Law, to fail to obtain governmental or third party consents for the collection or disposition of the Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against Persons obligated on the Collateral or to remove Liens on or any adverse claims against the Collateral, (iv) to advertise dispositions of the Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (v) to contact other Persons, whether or not in the same business as any Grantor, for expressions of interest in acquiring all or any portion of such Collateral, (vi) to hire one or more professional auctioneers to assist in the disposition of the Collateral, whether or not the Collateral is of a specialized nature, (vii) to dispose of the Collateral by utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (viii) to dispose of assets in wholesale rather than retail markets, (ix) to disclaim disposition warranties, such as title, possession or quiet enjoyment, or (x) to the extent commercially reasonable, to obtain at a reasonable cost given the nature of the subject transaction(s) the services of other brokers, investment bankers, consultants and other professionals to assist Secured Party in the collection or disposition of any of the Collateral. The Grantor acknowledges that the purpose of this Section 7(g) is to provide non-exhaustive indications of what actions or omissions by Secured Party would not be commercially unreasonable in Secured Party's exercise of remedies against the Collateral and that other actions or omissions by Secured Party shall not be deemed commercially unreasonable solely on account of not being indicated in this Section 7(g). Without limitation upon the foregoing, nothing contained in this Section 7(g) shall be construed to grant any rights to any Grantor or to impose any duties on Secured Party that would not have been granted or imposed by this Pledge Agreement or by Applicable Law in the absence of this Section 7(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Secured Party shall not be required to make any demand upon, or pursue or exhaust any of their rights or remedies against, any Grantor, any other obligor, guarantor, the Grantor or any other Person with respect to the payment of the Secured Obligations or to pursue or exhaust any of their rights or remedies with respect to any Collateral therefor or any direct or indirect guarantee thereof. Secured Party shall not be required to marshal the Collateral or any guarantee of the Secured Obligations or to resort to the Collateral or any such guarantee in any particular order, and all of its and their rights hereunder or under any other Loan Document shall be cumulative. To the extent it may lawfully do so, the Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not to assert against Secured Party, any valuation, stay, appraisement, extension, redemption or similar laws and any and all rights or defenses it may have as a surety now or hereafter existing which, but for this provision, might be applicable to the sale of any Collateral made under the judgment, order or decree of any court, or privately under the power of sale conferred by this Pledge Agreement, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>Limitation on the Secured Party's Duties in Respect of Collateral</u>**. Secured Party shall use reasonable care with respect to the Collateral in its possession or under its control. Secured Party shall not have any other duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of Secured Party, or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto. Regardless of any provision hereof, in the absence of bad faith, gross negligence or willful misconduct by the Secured Party, the Secured Party shall not be liable for any acts or omissions relating to the collection, possession, or any transaction concerning, all or part of the Collateral or sums due or paid thereon or any remedies related to the enforcement thereof nor shall they be under any obligation whatsoever to anyone by virtue of the Liens relating to the Collateral. Further, the Secured Party shall not be responsible in any way for any depreciation in the value of the Collateral nor have any duty or responsibility whatsoever to take any steps to preserve any rights of the Grantor in the Collateral, except as a result of its own gross negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>Secured Party's Appointment as Attorney-in-Fact</u>**. The Grantor hereby grants to Secured Party a power of attorney (the "<u>Power of Attorney</u>") on the terms and conditions contained in this Section 9 and as set forth in Annex A attached hereto and made an integral part hereof and irrevocably constitute and appoint Secured Party as the proxy and attorney-in-fact of the Grantor with respect to the Collateral; <u>provided</u> that, notwithstanding anything to the contrary herein or in Annex A, Secured Party shall not use such Power of Attorney unless an Event of Default has occurred and is continuing and Secured Party has delivered written notice to Grantor of its intent to exercise such rights, provided further that, failure to provide such notice shall not limit the validity of any action taken by Secured Party pursuant to such Power of Attorney. Such proxy shall be effective automatically and without the necessity of any action by any Person solely after the occurrence and during the continuation of an Event of Default. The power of attorney granted hereunder is coupled with an interest and shall be irrevocable until the Termination Date; <u>provided</u> that, if payment of any of the Secured Obligations are rescinded, set aside, avoided, disgorged or otherwise required to be returned by Secured Party, the Power of Attorney granted hereunder shall thereupon be deemed to be reinstated as if such payment had never occurred. The powers conferred on Secured Party under the Power of Attorney are solely to protect Secured Party's interests in the Collateral and shall not impose any duty upon Secured Party to exercise any such powers. Secured Party agrees that (a) it shall not exercise any power or authority granted under the Power of Attorney unless an Event of Default has occurred and is continuing and (b) Secured Party shall account for any amounts received by Secured Party in respect of any foreclosure on or disposition of Collateral pursuant to the Power of Attorney; <u>provided</u>, <u>however</u>, Secured Party shall not have any duty as to any Collateral, and Secured Party shall not be accountable only for amounts that they actually receive as a result of the exercise of such powers. NONE OF SECURED PARTY OR ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ATTORNEYS, OR REPRESENTATIVES SHALL BE RESPONSIBLE TO ANY GRANTOR FOR ANY ACT OR FAILURE TO ACT UNDER ANY POWER OF ATTORNEY OR OTHERWISE, EXCEPT TO THE EXTENT DAMAGES ARE ATTRIBUTABLE TO THEIR OWN BAD FAITH OR THE BAD FAITH OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ATTORNEYS, OR REPRESENTATIVES, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, NOR FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>Lien Absolute</u>**. All rights of Secured Party hereunder and all obligations of the Grantor hereunder shall be absolute and unconditional regardless of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any lack of validity or enforceability of the Credit Agreement, any other Loan Document or any other agreement or instrument governing or evidencing any Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any change in the time, manner or place of payment of, or in any other term of, all or any part of the Secured Obligations or any other amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document or any other agreement or instrument governing or evidencing any Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any exchange, release or non-perfection of any Collateral or any release, amendment or waiver of or consent to departure from any guaranty for all or any of the Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the insolvency of the Grantor or the Grantor's general partner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any other circumstance which might otherwise constitute a defense available to, or a discharge of, any Grantor, other than termination of this Pledge Agreement pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. <u>Release</u>**. The Grantor consents and agrees that Secured Party may at any time, or from time to time, in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) renew, extend or change the time of payment, or the manner, place or terms of payment of all or any part of the Secured Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) exchange, release or surrender all or any of the Collateral or any part thereof, by whomsoever pledged or deposited that is now or may hereafter be held by Secured Party in connection with all or any of the Secured Obligations, all in such manner and upon such terms as Secured Party may deem proper and without notice to or further assent from any Grantor, it being hereby agreed that the Grantor shall be and remain bound upon this Pledge Agreement, irrespective of the value or condition of any of the Collateral and notwithstanding any such change, exchange, settlement, compromise, surrender, release, renewal or extension, and notwithstanding also that the Secured Obligations may, at any time, exceed the aggregate principal amount thereof set forth in the Credit Agreement, or any other agreement governing any Secured Obligations. The Grantor hereby waives notice of acceptance of this Pledge Agreement and also waives presentment, demand, protest and notice of dishonor of any and all of the Secured Obligations and promptness in commencing suit against any party hereto or liable hereon and in giving any notice to (except as expressly provided for herein) or of making any claim or demand hereunder upon the Grantor. To the maximum extent permitted by Applicable Law, the Grantor agrees that no act or omission of any kind on Secured Party's part shall in any event affect or impair the security interests granted under this Pledge Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>Release of Liens</u>**. In connection with any release or termination of the Liens of Secured Party, at the request of any Grantor, Secured Party shall promptly execute and deliver any instruments or documents reasonably requested to acknowledge the release or termination of such Liens and to effect the removal or cancellation of such Liens including the termination of any deposit account agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>Reinstatement</u>**. This Pledge Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of any Grantor's assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant to Applicable Law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a "voidable preference," "fraudulent conveyance," or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. <u>No Waiver; Cumulative Remedies</u>**. No failure by Secured Party to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights and remedies hereunder provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law. None of the terms or provisions of this Pledge Agreement may be waived, altered, modified or amended except by an instrument in writing, duly executed by Secured Party and the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>GOVERNING LAW; CONSENT TO JURISDICTION; CHOICE OF FORUM.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) THIS PLEDGE AGREEMENT, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Pursuant to Section 5-1402 of the New York General Obligations Law, all actions or proceedings arising in connection with this Pledge Agreement shall be tried and litigated in state or Federal courts located in the Borough of Manhattan, New York City, State of New York. EACH PARTY HERETO WAIVES ANY RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS, TO ASSERT THAT IT IS NOT SUBJECT TO THE JURISDICTION OF SUCH COURTS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) THE GRANTOR HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE COURTS OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK AND APPELLATE COURTS FROM ANY THEREOF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. <u>No Strict Construction</u>**. The parties hereto have participated jointly in the negotiation and drafting of this Pledge Agreement. In the event an ambiguity or question of intent or interpretation arises, this Pledge 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 provisions of this Pledge Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. <u>Successors and Assigns</u>**. This Pledge Agreement and all obligations of all parties hereto shall be binding upon the respective successors and assigns of such parties (including any debtor-in-possession on behalf of any Grantor) and shall, together with the rights and remedies of Secured Party, for the benefit of Secured Party, hereunder inure to the benefit of the Secured Party, all future holders of any instrument evidencing any of the Secured Obligations and their respective successors and permitted assigns. No sales of participations, other sales, assignments, transfers or other dispositions by Secured Party of any agreement governing or instrument evidencing the Secured Obligations or any portion thereof or interest therein permitted pursuant to the terms of the Credit Agreement or that occur by operation of law shall in any manner impair the Lien granted to Secured Party, for the benefit of Secured Party, hereunder. The Grantor may not assign, sell, hypothecate or otherwise transfer any interest in or obligation under this Pledge Agreement except in connection with an assignment of the Credit Agreement permitted pursuant to Section 11.06 thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. <u>Section Titles</u>**. The Section titles contained in this Pledge Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. <u>Notices</u>**. Except as otherwise provided herein, whenever it is provided herein that any notice, demand, request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other party, or whenever any of the parties desires to give and serve upon any other party any communication with respect to this Pledge Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and shall be given in the manner, and deemed received, as provided for in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20. <u>Severability</u>**. Whenever possible, each provision of this Pledge Agreement shall be interpreted in a manner as to be effective and valid under Applicable Law, but if any provision of this Pledge Agreement shall be prohibited by or invalid under Applicable Law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Pledge Agreement. This Pledge Agreement is to be read, construed and applied together with the Credit Agreement and the other Loan Documents which, taken together, set forth the complete understanding and agreement of Secured Party and the Grantor with respect to the matters referred to herein and therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21. <u>WAIVER OF JURY TRIAL</u>**. EACH OF THE PARTIES HERETO WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION UNDER THIS PLEDGE AGREEMENT OR ANY ACTION ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHICH PARTY INITIATES SUCH ACTION OR ACTIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22. <u>Counterparts</u>**. This Pledge Agreement may be authenticated in any number of separate counterparts, all of which counterparts, taken together, shall constitute but one and the same agreement. This Pledge Agreement shall become effective upon the authentication of a counterpart hereof by each of the parties hereto. Faxed, emailed .pdf or otherwise electronically submitted signatures to this Pledge Agreement shall be binding for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23. <u>Limitation by Law</u>**. All rights, remedies and powers provided in this Security Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Pledge Agreement are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that they shall not render this Pledge Agreement invalid, unenforceable, in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Benefit of the Secured Party.</u> All Liens granted or contemplated hereby shall be for the benefit of Secured Party, and all proceeds or payments realized from the Collateral in accordance herewith shall be applied to the Secured Obligations in accordance with the terms hereof and the terms of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25. <u>Termination of this Pledge Agreement</u>**. Subject to Section 13 hereof, this Pledge Agreement shall terminate on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26. <u>Construction</u>**. Unless the context of this Pledge Agreement clearly requires otherwise, references to the plural include the singular and the singular includes the plural.

**[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]**

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Pledge Agreement as of the date first above written.

---

| | | |
|:---|:---|:---|
| **GRANTOR:** | **GRANTOR:** | **GRANTOR:** |
| **POWERLAW CORP.** | **POWERLAW CORP.** | **POWERLAW CORP.** |
| By: | /s/ Peter Smith | /s/ Peter Smith |
|  | Name: | Peter Smith |
|  | Title: | President |

---

*Signature Page to Pledge Agreement*

---

| | | |
|:---|:---|:---|
| **SECURED PARTY:** | **SECURED PARTY:** | **SECURED PARTY:** |
| **STIFEL BANK** | **STIFEL BANK** | **STIFEL BANK** |
| By: | /s/ Luke Jones | /s/ Luke Jones |
|  | Name: | Luke Jones |
|  | Title: | Vice President |

---

*Signature Page to Pledge Agreement*

**ANNEX A**

**POWER OF ATTORNEY**

No person to whom the Power of Attorney is presented, as authority for Secured Party, in its capacity as Secured Party, as attorney (the "<u>Attorney</u>") to take any action or actions contemplated hereby, shall be required to inquire into or seek confirmation from any Grantor as to the authority of Attorney to take any action described herein, or as to the existence of or fulfillment of any condition to this Power of Attorney, which is intended to grant to Attorney unconditionally the authority to take and perform the actions contemplated herein, and the Grantor irrevocably waives any right to commence any suit or action, in law or equity, against any person or entity which acts in reliance upon or acknowledges the authority granted under this Power of Attorney. The power of attorney granted hereby is coupled with an interest, and may not be revoked or canceled by any Grantor without Attorney's written consent.

The Grantor hereby irrevocably constitutes and appoints Attorney (and all officers, employees or agents designated by Attorney), with full power of substitution, as the Grantor's true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of the Grantor and in the name of the Grantor or in its own name, from time to time in Attorney's discretion upon the occurrence and continuance of an Event of Default and delivery of written notice by Secured Party to Grantor of its intent to exercise such rights, provided that failure to provide such notice shall not limit the validity of any action taken pursuant this Power of Attorney, to take any and all appropriate action and to execute and deliver any and all documents and instruments which may be necessary or desirable to accomplish the purposes of the Loan Documents and, without limiting the generality of the foregoing, the Grantor hereby grants to Attorney the power and right, on behalf of the Grantor upon the occurrence and continuance of an Event of Default and delivery of written notice by Secured Party to Grantor of its intent to exercise such rights, provided that failure to provide such notice shall not limit the validity of any action taken pursuant to this Power of Attorney, without assent by the Grantor, and at any time during the continuance of an Event of Default, to do the following:

(a) change the mailing address of the Grantor, open a post office box on behalf of the Grantor, open mail
for the Grantor, and ask, demand, collect, give acquittances and receipts for, take possession of, endorse any invoices, freight or express
bills, drafts against debtors, assignments, verifications, and notices in connection with any property of the Grantor;

(b) continue or obtain any insurance and pay all or any part of the premiums therefor and costs thereof, and
make, settle and adjust all claims under such policies of insurance, and make all determinations and decisions with respect to such policies;

(c) pay or discharge any taxes, liens, security interests, or other encumbrances levied or placed on or threatened
against the Grantor or their properties;

(d) defend any suit, action or proceeding brought against the Grantor if the Grantor does not defend such
suit, action or proceeding or if Attorney believes that the Grantor is not pursuing such defense in a manner that will maximize the recovery
to Attorney, and settle, compromise or adjust any suit, action, or proceeding described above and, in connection therewith, give such
discharges or releases as Attorney may deem appropriate;

Annex A-1

(e) to direct any party liable for any payment under any of the Collateral to make payment of any and all
monies due or to become due thereunder directly to Secured Party or as Secured Party shall direct;

(f) file or prosecute any claim, litigation, suit or proceeding in any court of competent jurisdiction or
before any arbitrator, or take any other action otherwise deemed appropriate by Attorney for the purpose of collecting any and all such
moneys due to the Grantor whenever payable and to enforce any other right in respect of the Grantor's property;

(g) cause the certified public accountants then engaged by the Grantor to prepare and deliver to Attorney
at any time and from time to time, promptly upon Attorney's request, the following reports: (i) a reconciliation of all accounts,
(ii) an aging of all accounts, (iii) trial balances and (iv) test verifications of such accounts as Attorney may request;

(h) communicate in its own name with any party to any Contractual Obligations or other contract relating to
the Collateral with regard to the assignment of the right, title and interest of the Grantor in and under such contracts and other matters
relating thereto;

(i) to file such financing statements with respect to the Pledge Agreement, with or without the Grantor's
signature, or to file a photocopy of the Pledge Agreement in substitution for a financing statement, as the Attorney may deem appropriate
and to execute in the Grantor's name such financing statements and amendments thereto and continuation statements; and

(j) execute, in connection with any sale provided for in any Loan Document, any endorsements, assignments
or other instruments of conveyance or transfer with respect to the Collateral and to otherwise direct such sale or resale, all as though
Attorney were the absolute owner of the property of the Grantor, as applicable, for all purposes, and to do, at Attorney's option
and the Grantor's reasonable expense, at any time or from time to time, all acts and other things that Attorney reasonably deems
necessary to perfect, preserve, or realize upon the Grantor's property or assets and Attorney's Liens thereon, all as fully
and effectively as the Grantor might do.

The Grantor hereby ratifies, to the extent permitted by law, all that said Attorney shall lawfully do or cause to be done by virtue hereof.

Annex A-2

**<u>SCHEDULE I</u>**

Schedule 1

## Ex-99.(K)(6)

**Exhibit (k)(6)**

***Execution Version***

**CONTROL AGREEMENT**

This Control Agreement (the "Agreement") dated as of the last date written on the signature page to this Agreement is by and among **STIFEL BANK** (the "Secured Party"), **POWERLAW CORP.**, a Maryland Corporation (the "Fund"), and **U.S. Bank National Association** (the "Custodian").

**WHEREAS,** to secure Fund's obligations under that certain Senior Secured Credit Agreement dated as of the date hereof, by and among the Fund and the Secured Party, as it may be amended, restated or replaced from time to time (the "Loan Agreement")<u>,</u> Fund has pledged as collateral and granted to Secured Party a continuing security interest in, among other things, the Account (as defined below) and all cash, funds, items, instruments, investments and/or any other amounts on deposit from time to time in such Account and all proceeds thereof (the "Collateral");

**WHEREAS,** pursuant to a custodian agreement between the Custodian and Fund, dated September 10, 2025 (the "Custodian Agreement"), the Custodian acts as custodian for Fund and established a custody account in the name of the Fund;

**WHEREAS,** pursuant to this Agreement, the Custodian shall establish a separate, segregated account numbered and in the name of Fund as the entitlement holder and identifying Secured Party as the pledgee and secured party thereof, entitled "**Account for [Fund Name] for benefit of [Secured Party Name]**" (the "Account"), to which it will credit the Collateral; and

**WHEREAS,** Secured Party, Fund and the Custodian are entering into this Agreement to provide for the control of the Collateral and the Account and to perfect the security interest of Secured Party in the Account and such Collateral including any and all funds or deposits from time to time credited thereto and remaining therein.

**NOW, THEREFORE**, in consideration of the mutual promises set forth herein, the receipt and adequacy of which are hereby acknowledged it is agreed as follows:

1. **Definitions.** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Business Day**" means any day other than a Saturday, Sunday or other day on which commercial
banks and the New York Stock Exchange are authorized or required by law to close.

2. **Maintenance of the Account; Compensation.** The Custodian will maintain the Account separate from
any other account maintained under the Custodian Agreement and will segregate the Collateral on its books and records from the other assets
of Fund. For purposes of the Uniform Commercial Code as in effect in the State of New York (the "NYUCC"), the Account shall
be deemed to be a "deposit account" (within the meaning of Section 9-102(a)(29) of the NYUCC) with respect to cash deposited
in or credited to the Account and the Account shall be deemed to be a "securities account" (within the meaning of Section
8-501(a) of the NYUCC) with respect to securities deposited or credited therein and the Account. The Custodian will be compensated by
Fund for services rendered hereunder in accordance with the Custodian Agreement. All property delivered to the Custodian in accordance
with this Agreement by or on behalf of the Fund will be promptly credited to the Account.

3. **Control; Priority of Lien.** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Custodian hereby acknowledges the security interest granted to Secured Party by Fund. The Custodian
further acknowledges that the Account is a segregated account, in the name of Fund and identifying Secured Party as the pledgee and secured
party thereof. The Custodian agrees that (i) it will comply with "instructions" (as defined in Section 9-104(a) of the NYUCC)
originated by Secured Party concerning the Collateral and the Account without further consent by Fund, and (ii) it will not act on instructions
originated by Fund regarding the Collateral in the Account or any other person unless it has received, in each instance, the prior written
consent of Secured Party. The Custodian hereby agrees to subordinate to the security interest granted to Secured Party by Fund all liens
(including, for the avoidance of doubt, any lien it may have as a result of, or arising out of, extensions of credit in the form of advances
to Fund under the Custodian Agreement), encumbrances, claims and rights of setoff or recoupment it may have now or hereafter acquire against
the Account or any assets and other amounts carried in the Account or any free credit balance in the Account and agrees that it will not
assert any such lien, encumbrance, claim or right against the Account or any assets and other amounts carried in the Account or any credit
balance in the Account.

&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;(c) The Custodian makes no representation or warranties with respect to the creation, sufficiency, or enforceability
of any security interest in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Secured Party and Fund hereby intend that this Agreement establish "control" by Secured Party
of the Account, and all capital contributions credited thereto for purposes of perfecting Secured Party's security interest in the
Account pursuant to Article 9 of the NYUCC, and Custodian hereby acknowledges that it has been advised of Fund's grant to Secured
Party of a security interest in the Account and the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Secured Party exercises sole and exclusive control of the Account and any and all assets and other amounts
credited thereto, and Custodian shall comply exclusively with written instructions solely from Secured Party with respect to the Account,
the Collateral, and any assets and other amounts credited to the Account.

&nbsp;&nbsp;&nbsp;&nbsp;(f) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;(g) Except for the claims and interests of Secured Party and Fund, the Custodian does not know of any claim
to, or interest in, the Collateral, the Account or any assets and other amounts credited thereto. If any person asserts any lien, encumbrance
or adverse claim (including any writ, garnishment, judgment, attachment, execution or similar process) against the Collateral, the Account,
or any assets and other amounts credited to the Account, the Custodian will <u>promptly</u> notify Secured Party and Fund thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(h) Custodian represents and warrants that it has not entered into, and until the termination of this Agreement
will not enter into, any agreement with any other person or entity not party hereto relating to the Collateral or the Account under which
it has agreed to comply with instructions of such other person or entity. Custodian will not grant to any third party any lien, hypothecation,
encumbrance, claim or right against the Collateral or the Account. This Agreement is the legal, valid and binding obligation of Custodian,
enforceable against Custodian in accordance with its terms.

4. **[Reserved].** 

5. **Status under the NYUCC.** Secured Party, Fund and the Custodian agree
that the Custodian is acting as a bank with respect to the deposit account, as to which the Fund is the Custodian's customer. As
used herein, the terms "control", "bank" and "deposit account" have the same meanings as in Article
9 of the NYUCC.

6. **Reliance on Instructions.** The Custodian will be entitled to rely
on any instructions that it reasonably believes to be delivered by an Authorized Person of Secured Party listed on <u>Annex A</u> and
will not be required to verify the calculation of amounts, the occurrence of an Event of Default, whether the statements in any instructions
or notice are true, or whether the Fund is complying with its obligations under the Loan Agreement.

7. **No Responsibility Concerning the Loan Agreement**. Fund and Secured Party hereby agree that, notwithstanding references to the Loan Agreement in this Agreement, Custodian
has no interest in, and no duty, responsibility or obligation with respect to, such documents (including without limitation, no duty,
responsibility or obligation to monitor Fund's or the Secured Party's compliance with any such documents or to know the terms
of such documents).

8. **No Duty of Oversight**. Custodian is not at any time under any duty
to monitor the value of any Collateral in the Account or whether the Collateral is of a type required to be held in the Account.

9. **Responsibility of Custodian.** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Custodian will not be liable for the acts or omissions of an Authorized Person of Secured Party. As
between the Custodian and Fund, the terms of the Custodian Agreement will apply with respect to any losses or liabilities of such parties
arising out of the Loan Agreement or this Agreement. As between the Custodian and Secured Party, the Custodian will not be liable for
any act or omission taken by the Custodian in good faith and without gross negligence or willful misconduct on its part. For the avoidance
of doubt, absent gross negligence or willful misconduct, the Custodian, in its capacity as Custodian, shall have no responsibility or
liability to Secured Party for complying with written instructions concerning the Account originated by Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Fund hereby agrees to indemnify and hold harmless the Custodian from and against any loss, expense,
damage, liability or claim (including documented reasonable attorney's fees) which may be suffered or incurred by the Custodian
as a result of the Custodian's execution, delivery, performance or enforcement of this Agreement in accordance with the terms hereof,
including compliance with any instructions (including instructions concerning the Account issued by Secured Party), in each case except
as may be caused by the Custodian's gross negligence, willful misconduct or bad faith. This indemnity shall be a continuing obligation
of Fund and its successors and assigns, notwithstanding the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Solely to the extent the indemnity of Fund pursuant to clause (i) above and/or pursuant to the Custodian Agreement does not fully indemnify the Custodian, Secured Party hereby agrees to indemnify and hold harmless the Custodian from and against any loss, expense, damage, liability or claim (including documented reasonable attorney's fees) which may be suffered or incurred by the Custodian as a result of the Custodian's compliance with any instructions (including instructions concerning the Account) issued by Secured Party, except as may be caused by the Custodian's gross negligence, willful misconduct or bad faith. This indemnity shall be a continuing obligation of Secured Party and its successors and assigns, notwithstanding the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Secured Party hereby agrees to release and discharge Custodian from and against any loss, expense, damage,
liability or claim (including attorney's fees) which may be suffered or incurred by Secured Party as a result of the Custodian's
compliance with any instructions (including instructions concerning the Account) issued by Secured Party, except as may be caused by the
Custodian's gross negligence, willful misconduct or bad faith.

&nbsp;&nbsp;&nbsp;&nbsp;(e) In no event shall any party hereto be liable for special, indirect or consequential damages, or lost profits
or loss of business, arising in connection with this Agreement .

&nbsp;&nbsp;&nbsp;&nbsp;(f) Custodian hereby confirms that the Account will be established as set forth in Section 2 herein and will
be maintained in the manner set forth herein until this Agreement is terminated. The Custodian will not change the name or number of the
Account without the prior written consent of the Fund and the Secured Party.

10. **Statements; Other Communications.** Until the termination of this Agreement
pursuant to Section 12, Custodian shall make available to Secured Party and Fund a secured website which will keep a record of all pledges,
deliveries, releases or substitutions of Collateral effected hereunder. Information regarding the Account shall be up to date on such
secured website within one (1) Business Day of any such pledge, delivery, release or substitution of Collateral. Custodian shall supply
Secured Party and Fund with a monthly statement of Collateral in the Account and transactions in the Account during the preceding month.
Any other communications required or permitted under this Agreement will be sent to the addresses set forth below:

If to Custodian, to:

U.S. Bank National Association

Lunken Operations Center

CN-OH-L2GL

5065 Wooster Rd

Cincinnati, Ohio 45226

Attn: Global Fund Custody Support Services

Fax: 844.206.1025

Email: Custodian.Notices@usbank.com; fundcustody.notices@usbank.com

If to Secured Party, to:

Stifel Bank

501 North Broadway

St. Louis, Missouri 63102

Attention: Managing Director

E-mail: fundbanking@stifelbank.com; loanservices@stifelbank.com

If to Fund, to:

PowerLaw Corp.

6635 S. Dayton St Ste 310

Greenwood Village CO 80111

Attn: Peter Smith

Email:

11. **Amendment; Assignment.** No amendment or modification of this Agreement
will be effective unless it is in writing and signed by each of the parties hereto. This Agreement may not be assigned without the prior
written consent of the parties.

12. **Termination.** This Agreement shall continue in effect until Secured
Party has notified the Custodian that this Agreement is to be terminated or earlier if (a) the Loan Agreement terminates and (b) the Fund's
obligations under the Loan Agreement have been satisfied. Upon receipt by the Custodian of such notice or occurrence, Secured Party shall
have no further right to originate instructions concerning the Account and Fund shall be entitled to originate instructions concerning
the Account for any purpose and without limitation except as may be provided in the Custodian Agreement.

This Agreement may also be terminated following thirty (30) days' prior notice in writing by the Custodian to the other parties hereto; provided, however, that the status of the Account and any Collateral pledged to Secured Party at the time of such notice shall not be affected by such termination until the release of such pledge pursuant to the terms of the Loan Agreement and any applicable rules, laws and regulations. In the event of a termination of this Agreement prior to the termination of Secured Party's security interest in the Collateral and the Account, all assets of Fund and other amounts held in the Account shall be transferred out of the Account to a successor custodian specified by Fund and reasonably acceptable to Secured Party; provided that, if Secured Party has delivered a Notice of Exclusive Control that has not been revoked or rescinded, such successor custodian shall be specified by Secured Party. In the event no successor is agreed upon at the end of the thirty (30) day period, Custodian shall be entitled to petition a court of competent jurisdiction to appoint a successor custodian and shall be indemnified by the Fund for any documented, reasonable costs and expenses relating thereto.

13. **Force Majeure**. No party hereto shall be responsible or liable for any failure or delay in the
 performance of its obligations under this Agreement arising out of or caused, directly or
 indirectly, by circumstances beyond its reasonable control which
 causes the closing of one or more offices of Custodian responsible for the servicing of the
 terms of this Agreement , including without limitation, acts of God; earthquakes; fires;
 floods; wars; civil or military disturbances; sabotage; pandemics; epidemics; riots or
 acts of civil or military authority. Also included in the definition of Force Majeure are interruptions, loss or malfunctions of utilities or third party communications services during
 the pendency thereof .

14. **Governing Law.** This Agreement will be governed by and construed in
accordance with the laws of the State of New York (without regard to conflict of laws principles thereof except sections 5-1401 and 5-1402
of the General Obligations Law of the State of New York). The State of New York shall be deemed to be the "bank's jurisdiction"
(as defined in Section 9-304 of the NYUCC) of the Custodian for the purposes of this Agreement and the perfection and priority of the
Secured Party's security interest in the Account. The parties hereto hereby consent to the jurisdiction of a state or federal court
situated in New York City, New York in connection with any dispute arising hereunder. The parties hereto irrevocably waive any and all
rights to trial by jury in any legal proceeding arising out of or relating to this Agreement.

15. **No Implied Duties**. The Custodian shall have no duties or responsibilities
whatsoever except such duties and responsibilities as are specifically set forth in this Agreement, and no covenant or obligation shall
be implied against the Custodian in connection with this Agreement except with respect to the services agreed to be provided by the Custodian
under this Agreement.

16. **Custodian Status.** Custodian affirms that (i) it is a bank, as defined
in Section 3(a)(6) of the Securities Exchange Act of 1934; (ii) it has equity capital in excess of $500 million; (iii) it is not affiliated
with the Fund and (iv) in the ordinary course of its business maintains deposit accounts for others and is acting in that capacity.

17. **Counterparts**. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute
one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile transmission or delivery of an electronic
signature page shall be effective as delivery of a manually executed counterpart hereof.

**[Signature Page Follows]**

**IN WITNESS WHEREOF**, the parties have caused this Agreement to be executed by their respective officers or duly authorized representatives as of the date last written below. This Agreement may be executed in one or more counterparts, all of which shall constitute but one and the same instrument.

---

| | | | |
|:---|:---|:---|:---|
| **STIFEL BANK** | **STIFEL BANK** | **POWERLAW CORP.** | **POWERLAW CORP.** |
| By: | /s/ Luke Jones | By: | /s/ Peter Smith |
| Name: | Luke Jones | Name: | Peter Smith |
| Title: | Assistant Vice President | Title: | President |
| Date: | 12/16/2025 | Date: |  |
|  |  | **U.S. BANK NATIONAL ASSOCIATION** | **U.S. BANK NATIONAL ASSOCIATION** |
|  |  | By: | /s/ Gregory Farley |
|  |  | Name: | Gregory Farley |
|  |  | Title: | Senior Vice President |
|  |  | Date: | 12/31/2025 |

---

**<u>ANNEX A</u>**

<u>AUTHORIZED PERSONS F</u><u>OR SECURED PARTY</u>

**U.S. BANK NATIONAL ASSOCIATION** may accept and act upon written instructions received from any one of the following persons at Secured Party (or attach its own form):

---

| | | | | |
|:---|:---|:---|:---|:---|
| <u>Name</u> | <u>Name</u> | <u>Telephone</u> | <u>Email</u> | <u>Specimen Signature</u> |
| 1. | See attached. | | | |
| 2. | | | | |
| 3. | | | | |
| 4. | | | | |

---

## Ex-99.(L)

**Exhibit (l)**

![](ex99-l_001.jpg)

February 9, 2026

Powerlaw Corp.

631 Folsom Street Ste A & B,

San Francisco, California 94107-3850

Ladies and Gentlemen:

We have acted as special Maryland counsel Powerlaw Corp., a Maryland corporation (the "Company"), in connection with the registration under the Securities Act of 1933, as amended (the "Act"), of up to an aggregate of 43,242,931 shares (the "Shares") of the Company's common stock, par value $0.001 per share ("Common Stock") which may be sold by the Selling Stockholders identified in the Registration Statement (as further defined herein). The Shares are covered by the Company's Registration Statement on Form N-2 filed by the Company with the Securities and Exchange Commission (the "Commission") on September 17, 2025 (File No. 333-290337) (together with all amendments through the date hereof, the "Registration Statement").

In connection with our representation of the Company, and as a basis for the opinions hereinafter set forth, we have examined originals, or copies certified or otherwise identified to our satisfaction, of the following documents (hereinafter collectively referred to as the "Documents"):

&nbsp;&nbsp;&nbsp;&nbsp;1. the Registration Statement and the form of prospectus included therein, in the form transmitted to the
Commission for filing pursuant to the Act (exclusive of the documents incorporated by reference therein or otherwise deemed to be part
thereof or included therein other than the Charter and the Bylaws (as each is defined herein));

&nbsp;&nbsp;&nbsp;&nbsp;2. the charter of the Company (the "Charter") as reflected in the records of the State Department
of Assessments and Taxation of the State of Maryland (the "SDAT");

&nbsp;&nbsp;&nbsp;&nbsp;3. the bylaws of the Company (the "Bylaws") as certified as of the date hereof by an officer
of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;4. a certificate of the SDAT as to the good standing of the Company, dated as of a recent date (the "SDAT
Certificate");

&nbsp;&nbsp;&nbsp;&nbsp;5. resolutions (the "Resolutions") adopted by the Board of Directors (the "Board of Directors")
of the Company relating to, among other things, the registration of the Shares and the sale and issuance of the Shares, certified as of
the date hereof by an officer of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;6. a certificate executed by an officer of the Company, dated as of the date hereof, with respect to certain
factual matters regarding the Charter, the Bylaws, and the Resolutions (the "Officer's Certificate"); and

![](ex99-l_002.jpg)

---

| | |
|:---|:---|
| Powerlaw Corp.<br>February 9, 2026<br>Page 2 | ![](ex99-l_001.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;7. such other documents and matters as we have deemed necessary or appropriate to express the opinion set
forth below, subject to the assumptions, limitations and qualifications stated herein.

In expressing the opinions set forth below, we have relied as to certain factual matters on information obtained from public officials and officers of the Company and have assumed the following:

&nbsp;&nbsp;&nbsp;&nbsp;1. Each individual executing any of the Documents, whether on behalf of such individual or any other person,
is legally competent to do so.

&nbsp;&nbsp;&nbsp;&nbsp;2. All Documents submitted to us as originals are authentic. All Documents submitted to us as certified or
photostatic copies conform to the original documents. All signatures on all such Documents are genuine (whether manual, electronic or
otherwise) and, to the extent that a signature on a Document is manifested by electronic or similar means, such signature has been executed
or adopted by a signatory with an intent to authenticate and sign the document. All public records reviewed or relied upon by us or on
our behalf are true, accurate, and complete.

&nbsp;&nbsp;&nbsp;&nbsp;3. The Shares were issued and delivered against receipt of consideration in accordance with the Resolutions.

&nbsp;&nbsp;&nbsp;&nbsp;4. After giving effect to any issuance of the Shares, the total number of shares of Common Stock issued and
outstanding did not exceed the total number of shares of Common Stock that the Company is then authorized to issue under its Charter.

&nbsp;&nbsp;&nbsp;&nbsp;5. At the time of issuance of any of the Shares, (a) the Company was in good standing under the laws of the
State of Maryland, (b) none of the Governing Documents of the Company had been amended so as to cause such issuance of the Shares to conflict
with or violate any provisions of the Governing Documents of the Company, and (c) such securities did not violate any law applicable to
the Company or result in a default under or breach of any agreement or instrument then-binding upon the Company, and such securities complied
with all requirements and restrictions, if any, applicable to the Company, imposed by any court or governmental or regulatory body having
jurisdiction over the Company.

Based upon the foregoing, and subject to the assumptions, limitations and qualifications stated herein, it is our opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Company is a corporation duly incorporated and existing under and by virtue of the laws of the State
of Maryland and is in good standing with the SDAT.

&nbsp;&nbsp;&nbsp;&nbsp;2. The issuance of the Shares has been duly authorized and the Shares are validly issued, fully paid, and
nonassessable.

---

| | |
|:---|:---|
| Powerlaw Corp.<br>February 9, 2026<br>Page 3 | ![](ex99-l_001.jpg) |

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To the extent our opinions set forth herein address, or depend on, the Company's legal existence or good standing in the State of Maryland, they are based in that regard solely on the SDAT Certificate, a review of the Charter, and the certification in the Officer's Certificate that the Company has taken no voluntary action for its dissolution.

We express no opinion with respect to the laws of, or the effect or applicability of the laws of, any jurisdiction other than, and our opinion expressed herein is limited to, the laws of the State of Maryland, except that we express no opinion with respect to the "blue sky" or other securities laws or regulations of the State of Maryland or any other jurisdiction. To the extent that any matter as to which our opinion is expressed herein would be governed by the laws of any jurisdiction other than the State of Maryland, we do not express any opinion on such matter. The opinion expressed herein is limited to the matters expressly set forth in this letter and no other opinion should be inferred beyond the matters expressly stated. We assume no obligation to supplement this opinion if any applicable law changes after the date hereof or if we become aware of any fact that might change the opinion expressed herein after the date hereof.

We hereby consent to the use of our name and reference to this opinion under the heading "Legal Matters" in the forms of Prospectus forming a part of the Registration Statement and to the filing of this opinion as an exhibit to the Registration Statement. In giving 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.

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|:---|:---|
| Very truly yours, | Very truly yours, |
| Miles & Stockbridge P.C. | Miles & Stockbridge P.C. |
| By: | /s/ Charles F. Hilberg III |
|  | Principal |

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## Ex-99.(N)

**Exhibit (n)**

![](ex99-n_001.jpg)

KPMG LLP<br> Aon Center<br> Suite 5500<br> 200 E. Randolph Street <br> Chicago, IL 60601-6436

**Consent of Independent Registered Public Accounting Firm**

We consent to the use of our report dated December 12, 2025, with respect to the consolidated financial statements of Powerlaw Corp. as of September 30, 2025, included herein, and to the references to our Firm under the headings "Independent Registered Public Accounting Firm" in the Prospectus and "Independent Auditors" in the Statement of Additional information.

![](ex99-n_002.jpg)

Chicago, Illinois

February 9, 2026

KPMG LLP, a Delaware limited liability partnership, and its subsidiaries are part of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.