Document:

Document

Exhibit 10.19

Incentive Compensation Plan

(“ICP”)

Effective October 4, 2020

(Commencing Fiscal Year 2021)

Company 
Confidential

Exhibit 10.19

KULICKE AND SOFFA INDUSTRIES, INC.

INCENTIVE COMPENSATION PLAN

Purpose
The purpose of the Kulicke and Soffa Industries, Inc. (“Company” or “K&S”) Incentive Compensation Plan (“Plan” or “ICP”) is to:
•focus the efforts of Plan participants to achieve financial goals and individual objectives and maximize personal performance consistent with the Company’s business strategy
•provide Plan participants with the opportunity to earn an annual ICP award based on Corporate and Business Unit (“BU”) (if appropriate) financial performance and individual performance
•align the interests of our employees and K&S shareholders by providing awards that are commensurate with business performance

Effective Date
This Plan document is effective beginning fiscal 2021, commencing on October 4, 2020.  This Plan document and its attachments constitute the entire ICP and supersede any other oral or written agreements dated prior to the effective date. The Plan year is aligned to the K&S fiscal Plan year.

Plan Governance
The Management Development and Compensation Committee (“MDCC”) of the Board of Directors is responsible for reviewing the overall performance and funding of the Company’s incentive plans.  Specifically, the MDCC is responsible for:
•determining the criteria and mechanism for funding the Plan
•determining the suspension or reduction of aggregate ICP awards due to current or projected business performance
•determining the primary financial performance metrics
•approving any adjustments to Corporate or BU performance for transition, start-up, or other extraordinary costs and circumstances 
•approving the aggregate annual award amounts
•approving all objectives, weightings, targets and payouts to individual Executive Officers
•approving any discretionary adjustments to ICP awards
•delegating routine Plan administration responsibilities to Company management

Company management’s responsibilities include:  
•providing summary information and analysis to the MDCC on an annual basis and presenting the aggregate pool for review and approval by the MDCC
•facilitating the collection of financial and individual performance results and award recommendations 
•recommending and enforcing eligibility and administration rules, individual ICP target assignments, and the relative performance weightings of Company, BU, and individual performance
•recommending financial performance metrics and funding scales (including threshold, target and maximum performance) for Company and BU awards
•coordinating financial planning and accruals as necessary
•reviewing and verifying all proposed awards before such awards are made
•determining suspension or reduction of non-Executive Officer individual ICP awards due to performance
•counseling the MDCC on the determination of suspension or reduction of aggregate ICP awards due to current or projected business performance 
•determining the extent to which internal transfers, promotions, changes in full-or-part-time status and approved leaves of absence impact accruals, targets and actual awards 
•interpreting this ICP document and establishing, adopting, or amending any provisions as are necessary for proper administration, consulting where appropriate with the MDCC

Exhibit 10.19

Plan Funding
Funding of the Plan is based on two metrics: Corporate Net Income (“NI”) and Corporate Operating Margin (“OM”).

Funding Scales
The Plan has funding scales for Corporate NI and Corporate OM.   Each scale correlates performance results to funding percentages from threshold, to target, to maximum performance.  The average of the Corporate NI and Corporate OM funding percentages equals the Corporate Financial Payout which generates the ICP pool.  The funding percentages range from zero to 200% of the target according to the Plan funding schedule.   

Corporate NI and Corporate OM funding scales are reviewed and approved by the MDCC on an annual basis.  Sample funding scales are shown in Appendix 1.  

Threshold Performance 
Minimum funding for the Plan requires achievement of threshold Corporate NI and Corporate OM performance.  If only one of the two thresholds is achieved, funding will be based on the funding scale for the metric that achieved threshold, and only up to 50% of the Plan will be funded. If neither of the two thresholds is achieved, the Plan will not fund and there will not be a payout.  Corporate NI and Corporate OM thresholds are reviewed and approved by the MDCC on an annual basis.

Eligibility
To be eligible for payment from the ICP an employee must be:
•classified as regular full-time or regular part-time;
•in a Professional, Management or Executive level position (grade levels P1-P7, M1-M6, E1-E5);
•active on the Company payroll at the start of the fiscal year and
•active on the Company payroll on the last working day of the fiscal year (also see Plan Administration section for new hire or job change eligibility).  

Other Incentive Plans
Participants in the ICP will not be eligible to participate concurrently in any other Company provided incentive or sales compensation program (i.e. Sales Incentive Plan (“SIP”).  Employees in locations with bonus months normally paid in addition to the standard 12-month payroll or with non-Company-wide bonus plans (i.e. production bonus) will not be excluded from the SS Plan because of those situations.

Performance Measures, Performance Components and Award Calculations
The performance measurement period is the full fiscal year and payout will be based on full fiscal year financial results (defined below) annually.

Performance Measures
There are four performance measures to determine a participant’s annual award.  
•Corporate Net Income at the close of the fiscal year
•Corporate Operating Margin at the close of the fiscal year
•Business Unit Scorecard at the close of the fiscal year
◦BU Scorecards are set on an annual basis by a Scorecard Committee consisting of the CEO, CFO, and the BU Heads
◦The BU Scorecard metrics consist of financial components (BU Revenue and BU Direct Operating Margin) and non-financial components deemed important to drive sustainable success in the marketplace such as research and development, market share and customer penetration, and quality goals
•Individual Performance based on the employee’s Performance Rating on a scale of 1-5 

Exhibit 10.19

For participants in Corporate roles, the financial performance measures consist of Corporate NI and Corporate OM, each weighted 50%.

For participants in BU roles, the financial measures consist of Corporate Financial Performance and the BU Scorecard results.
•If a participant’s role involves working with two BUs that participant may have a split BU in which the BU Scorecard result for each will be used.  In a split BU one of the BUs must be allocated at least 20% of the full BU component weighting.  Allocation of split BUs must be in increments of 10%.

Performance Components
Two performance components are used to calculate awards, the financial component and the individual component.  The weightings of each component are based on the participant’s grade level, and whether the participant is in a Corporate or BU position. 

Note: For the Executive Leadership Team (“ELT”) the calculation of awards is based on Corporate Financial Performance only.
															
	Weighting of Financial Performance Measures - For Participants in Corporate Positions
	Career Level	Salary Grade	Financial	Individual
	Corp NI	Corp OM
	VP Below ELT	E1	37.5%	37.5%	25.0%
	Directors	M5-M6	30.0%	30.0%	40.0%
	Management	M1-M4	25.0%	25.0%	50.0%
	Professional	P1-P7	20.0%	20.0%	60.0%

																		
	Weighting of Financial Performance Measures - For Participants Associated With a BU
	Career Level	Salary Grade	Financial	Individual
	Corp NI	Corp OM	BU Scorecard
	VP Below ELT	E1	25.0%	25.0%	35.0%	15.0%
	Directors	M5-M6	20.0%	20.0%	30.0%	30.0%
	Management	M1-M4	15.0%	15.0%	20.0%	50.0%
	Professional	P1-P7	12.0%	12.0%	16.0%	60.0%

Individual Component
The ICP Individual Component award pool is calculated as the sum of all participants’ individual ICP target multiplied by the individual component weighting modified by the Corporate Financial Performance.  Managers will allocate the individual component for each participant based on the available pool and considering the participant’s individual performance rating.  

Incentive Target
Participant’s ICP target is based on a percentage of the employee’s annual base salary.  Targets are determined for each grade level based on market competitive practice.  Targets for the ELT are individually market priced. The ICP target structure is shown in Appendix 2. 

Individual awards can range from 0% to 200% of the target incentive (capped at 200% of target incentive).

Calculation Methodology
Corporate NI, Corporate OM and BU Scorecard performance measures are based on actual achievement against targets according to the funding scale.  

Corporate Financial Payout is calculated as the average of the Corporate NI payout funding and Corporate OM payout funding.  The maximum Corporate Financial Payout is 200%.  

Exhibit 10.19

Individual Component Payout is modified by the Corporate Financial Payout.

BU Scorecard Payout is modified by the Corporate Financial Payout and the Individual Component Payout.

Calculation of Awards

Sample Calculations are shown in Appendix 3.

Payment Form and Timing 
All awards will be paid in cash (via check or direct deposit), subject to all tax and withholding under applicable country laws and regulations, and Company policy in effect at the time.

Timing of awards payout is subject to the timing of the MDCC meetings, during which awards are approved, and the timing of payroll processing.  Payments (if any) will be made as soon as administratively practicable after approval.  

Exhibit 10.19

Dispute Resolution
With exception of the ELT, the CEO and Vice President of Human Resources shall have complete discretion concerning the determination of ICP awards under the Plan, and the decision of the CEO shall be final and conclusive.  Any disputes regarding ICP eligibility or an award must be communicated in writing to the Vice President of Human Resources within thirty (30) days from the date an ICP award would otherwise have been paid with respect to that fiscal year.

Other Important Details
•The Incentive Compensation Plan may be amended, suspended, terminated or reinstated at any time with the approval of the MDCC.
•Participant’s Base Salary will remain the basis for life insurance, accidental death and disability and long and short-term disability and the like.  
•As a condition of receiving benefits under the Plan, all Participants agree to respect the confidentiality of K&S’s financial and other business critical information.
•This Plan will be construed in accordance with and governed by the laws of the Commonwealth of Pennsylvania, without reference to principles of conflicts of law, as to all matters, including, but not limited to, matters of validity, construction and performance.
•The Plan shall be administered in accordance with Section 409(A) of the Internal Revenue Code of 1986, as amended (“Code”).
•Participants may not sell, assign, transfer, pledge or encumber any expectation of or right to an award under this Plan and any attempt to do so shall be void.
•K&S is an at-will employer.  Participation in the Plan or any enhancement of the Plan does not impact this fact in any way.  
•Inclusion in this Plan does not constitute a guarantee of employment or specific earnings. 
•Nothing in this Plan shall act as an expressed or implied contract, a guarantee or commitment for an employee to be or to continue to be a Participant in the Plan, to receive payments under the Plan, or to be retained in the employment of K&S.

Definitions
This list is intended to provide definitions for most business terms used in this Plan Document but may not be all inclusive of terms used.
Award or Incentive Award – the incentive payment made to a participant under this Plan, which is based on the achievement of Corporate, Business Unit and Individual Performance Goals and the participant’s Incentive Target
Base Salary – the annualized rate of base salary compensation paid to a participant
Board of Directors – the Board of Directors of Kulicke and Soffa Industries, Inc.
Business Unit Direct Operating Margin (“BU DOM”) - Direct Operating Profit / Revenue (in %) (Excluding corporate service and shared expense charges)  
Company – Kulicke and Soffa Industries, Inc., its subsidiaries, and any successor thereto
Executive Leadership Team (“ELT”) – the executive team of the Company including the CEO, and direct reports to the CEO 
Executive Officer – An individual designation by the Kulicke and Soffa Industries, Inc. Board of Directors as an Officer of the Company
Fiscal Year – the business year as defined by finance 
Incentive Target – the percentage of a participant’s base salary established as the basis for his or her ICP award. The actual ICP award, if any, may equal, exceed, or fall below the ICP target based on Corporate, Business Unit and Individual performance
Management Development and Compensation Committee (“MDCC”) – the committee of the Board of Directors accountable for aspects of the Plan
Net Income (“NI”) – Revenue less expenses, interest and taxes.  The MDCC has the authority to exclude any unusual or extraordinary items from the calculation 
Operating Margin (“OM”) - Operating Income / Revenue (in %)
Participant – an employee of Kulicke and Soffa Industries Inc. who is eligible to participate in the Plan
Plan – this Kulicke and Soffa Industries Inc. Incentive Compensation Plan (“ICP”)
Plan Year – the fiscal year of the Company 
Reduction in Force – involuntary termination due to a K&S reorganization or cost containment measures

Exhibit 10.19

Retirement – termination of a regular full-time or part-time employee who is at least 50 years of age, has at least 3 years of service, and age and service equal at least 60
Sales Incentive Plan (“SIP”) - an incentive plan of the Company, different from this Plan, intended to motivate certain sales employees to achieve defined sales objectives
Success Shares Plan – an incentive plan of the Company, different from this Plan, intended to motivate participants (see Appendix 2) to support Company objectives by sharing in the financial success of the Company

Plan Administration
Treatment of eligibility or calculation of award based on changes to a participant’s job or employment status.  
						
	New Hires
	Hire Date	Proration of ICP Payout
	During the fiscal year before the start of 4th fiscal quarter (October – June)
	Proration based on number of calendar days from date of hire to end of fiscal year
	During 4th fiscal quarter (July – September)
	Not eligible

						
	Terminations During the Fiscal Year
	Reason for Termination	Treatment
	Voluntary termination	Not eligible for payout
	Involuntary termination due to retirement, death, permanent disability, or a reduction in force	Eligible for prorated payout based on number of full months completed in the fiscal year divided by 12
Example: Termination occurs in mid-August. Number of completed months during fiscal year = 10 (October through July). Eligible for 10/12 pro-rata payout
Payout will be based on participant’s ICP target at 100%
Assumes 100% Corporate/BU financial performance and individual results scored at 100%). Paid at termination

	Involuntary termination for cause / performance issues	Not eligible for payout

						
	Leaves
	Type of Leave	Treatment
	Annual leave / vacation and government mandated military leave	No proration
	All other leaves	No proration if accumulated number of leave days is less than 6 work weeks during fiscal year

If accumulated number of leave days is equal to or greater than 6 work weeks during fiscal year, the participant’s award is prorated based on the number of calendar days worked (not on leave) in the fiscal year

Exhibit 10.19

									
	Promotions, Salary Change, Job Code Change
	Circumstance	Transition / Change Date	Treatment
	Participant has a job change which affects salary or ICP target	Anytime during the fiscal year	ICP award is prorated based on the number of calendar days worked in the fiscal year in each different salary and/or ICP target, based on transition/change date.

Example: Participant moves from a job with 8% target incentive at 40,000 salary to 10% target incentive at 50,000 salary July 1 (fiscal 2H)
1st half: 8% x 40,000 x 50% + 10% x 50,000 x 50

Plan Administration (continued)
						
	ICP BU / ICP BU Split Changes
	Transition Date	Treatment
	Anytime during fiscal year	A proration based on the number of calendar days spent in each BU/BU split will be calculated and the appropriate weighting applied to the BU Scorecard component based on the BU scorecard achievement at the end of the year

Example: Participant has BU split of 60/40 BB/WB at the beginning of the fiscal year and moves to BU split of 60/40 WB/Blades at the beginning of the fiscal 2H
1st half: BB: 60% of 50% = 30% + WB: 40% of 50% = 20% 
plus
2nd half: WB: 60% of 50% (2H) = 30% + Blades: 40% of 50% (2H)= 20%

						
	Transition to ICP from Success Share (SS) Plan
	Transition Date	Treatment
	Anytime during fiscal year	Participant’s SS award is prorated based on the number of calendar days worked in the fiscal quarter during which the participant is in the SS Plan, based on transition date

Participant’s ICP award is prorated based on the number of calendar days worked in the fiscal year during which the participant is in the ICP, based on transition date.
Example: Participant transitions from SS to ICP February 1
Eligible for prorated 2Q SS payment for January 1 to January 31
Eligible for ICP from February 1 thru end of fiscal year

						
	Transition To and From SIP
	Transition Date	Treatment
	Anytime during fiscal year	Participant will be eligible for prorated payouts for each of the plans based on transition date. SIP payment eligibility begins or ends with transition date. Participant’s ICP award is prorated based on the number of calendar days worked in the fiscal year during the period for which the participant is in the ICP, based on transition date

Example: Transition date of February 1 from SIP to ICP
Eligible for quarterly SIP payment for Q2 up to January 31
Participant will not be eligible for any credited sales after transition date from SIP

Example: Transition date of February 1 from ICP to SIP
Eligible for pro-rated ICP payout from October through January 31
Eligible for quarterly SIP payment for Q2 for any sales payments from February 1

Exhibit 10.19

Plan Administration (continued)
									
	Cross Country Transfers
	Circumstance	Transition / Change Date	Treatment
	Participant moves from one country and localized in another country	Anytime during the fiscal year	Payout will be prorated based on transition date based on the target incentive and salary at the time of the transition and the target incentive and salary at the end of the fiscal year. The total ICP payment will be made in the local currency at the end of the fiscal year.

The prorated ICP payment prior to the Transition date will be converted to local currency based on the exchange rate at the end of the fiscal year.

In all cases, eligibility for any prorated award is contingent on meeting all other conditions and requirements of the Plan.

Exhibit 10.19

Appendix 1

Sample Corporate Net Income Funding Scale*
													
			
			NI ($M USD)	ICP Funding	
		Maximum	124.0	200%	
			108.9	175%	
			93.8	150%	
			78.7	125%	
		Target	63.6	100%	
			48.8	75%	
			33.9	50%	
		Threshold	19.1	25%	
					
					

*Net Income results are weighted 50% of overall Corporate Performance Measure.  Interpolation will be applied between each of the discreet points in the scale.

Net Income target will be reviewed annually

_____________________________________________________________________________________________

Sample Corporate Operating Margin Funding Scale*
													
			
			OM	ICP Funding	
		Maximum	18.9%	200%	
			16.6%	175%	
			14.3%	150%	
			12.0%	125%	
		Target	9.7%	100%	
			7.4%	75%	
			5.2%	50%	
		Threshold	2.9%	25%	
					

*Operating Margin % results are weighted 50% of the overall Corporate Financial Performance Measure.  Interpolation will be applied between each of the discreet points in the scale.

Operating Margin target will be reviewed annually

Exhibit 10.19

Appendix 2

Incentive Target Structure

Exhibit 10.19

Appendix 3

Sample ICP Payment CalculationsExhibit 10.1

 

 

 

 

 

 

  

NON-FIXED PRICE

 

SALES AND PURCHASE AGREEMENT

 

BETWEEN

 

Bitmain Technologies Limited
(“Bitmain”)

 

AND

 

Ault
Alliance, Inc. 

(“Purchaser”)

 

 

 

 

 

 

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TABLE OF CONTENTS 

 

	 	 	Page
	 	 	 
	1.	DEFINITIONS AND INTERPRETATIONS	3
	2.	SALES OF PRODUCT(S)	5
	3.	PRICES AND TERMS OF PAYMENT	6
	4.	PRODUCT DISCOUNT	8
	5.	SHIPPING OF PRODUCT(S)	8
	6.	CUSTOMS	10
	7.	WARRANTY	11
	8.	REPRESENTATIONS AND WARRANTIES	13
	9.	INDEMNIFICATION AND LIMITATION OF LIABILITY	14
	10.	DISTRIBUTION	15
	11.	INTELLECTUAL PROPERTY RIGHTS	15
	12.	CONFIDENTIALITY AND COMMUNICATIONS	16
	13.	INJUNCTIVE RELIEF	16
	14.	TERM OF THIS AGREEMENT	16
	15.	NOTICES	17
	16.	COMPLIANCE WITH LAWS AND REGULATIONS	18
	17.	FORCE MAJEURE	19
	18.	ENTIRE AGREEMENT AND AMENDMENT	19
	19.	ASSIGNMENT	20
	20.	SEVERABILITY	20
	21.	PERSONAL DATA	20
	22.	CONFLICT WITH THE TERMS AND CONDITIONS	20
	23.	GOVERNING LAW AND DISPUTE RESOLUTION	20
	24.	WAIVER	21
	25.	COUNTERPARTS AND ELECTRONIC SIGNATURES	21
	26.	FURTHER ASSURANCE	21
	27.	THIRD PARTY RIGHTS	21
	28.	LIQUIDATED DAMAGES NOT PENALTY	21

 

    		2  /  23	

    	 

    

 

This non-fixed price sales and purchase
agreement (this “Agreement”) is made on [●], 2021 by and between Bitmain Technologies Limited (“Bitmain”)
(Company number: 2024301), with its principal place of business at [●] and Ault Alliance, Inc. (“Purchaser”) (Delaware
Corporation File Number: 715304), with its principal place of business at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141.

 

Bitmain and the Purchaser shall
hereinafter collectively be referred to as the “Parties”, and individually as a “Party”.

 

Whereas:

 

		1.	Purchaser has made numerous purchases of the Products through Bitmain’s website
(i.e., https://shop.bitmain.com/, similarly hereinafter) from time to time, and is therefore familiar
with the purchase order processes of Bitmain’s website.

 

		2.	Purchaser fully understands the market risks, the price-setting principles and
the market fluctuations relating to the Products sold under this Agreement.

 

		3.	Based on the above consensus, the Purchaser desires to purchase, and Bitmain desires
to supply, certain Products in accordance with the terms and conditions of this Agreement.

 

The Parties hereto agree as follows:

 

		1.	Definitions and Interpretations

 

The following terms, as used herein, have the following meanings:

 

“Affiliate” means,
with respect to any Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with such Person;
“Person” means any individual, corporation, partnership, limited partnership, proprietorship, association, limited liability
company, firm, trust, estate or other enterprise or entity (whether or not having separate legal personality); and “Control”
means the power or authority, whether exercised or not, to direct the business, management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise, provided that, in the case of a Person that is an
entity, such power or authority shall conclusively be presumed to exist upon possession of beneficial ownership or power to direct the
vote of more than fifty percent (50%) of the votes entitled to be cast at a meeting of the equity holders of such Person or power to control
the composition of a majority of the board of directors of such Person. The terms “Controlled” and “Controlling”
have meanings correlative to the foregoing.

 

“Applicable Law” means
any treaty, law, decree, order, regulation, decision, statute, ordinance, rule, directive, code or other document that has legal force
under any system of law, including, without limitation, local law, law of any other state or part thereof or international law, and which
creates or purports to create any requirement or rule that may affect, restrict, prohibit or expressly allow the terms of this Agreement
or any activity contemplated or carried out under this Agreement.

“Bank Account” means the
bank account information of Bitmain provided in Appendix A of this Agreement.

 

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“Force Majeure” means
in respect of either Party, any event or occurrence whatsoever beyond the reasonable control of that Party, which delays, prevents or
hinders that Party from performing any obligation imposed upon that Party under this Agreement, including to the extent such event or
occurrence shall delay, prevent or hinder such Party from performing such obligation, war (declared or undeclared), terrorist activities,
acts of sabotage, blockade, fire, lightning, acts of god, national strikes, riots, insurrections, civil commotions, quarantine restrictions,
epidemics, earthquakes, landslides, avalanches, floods, hurricanes, explosions and regulatory and administrative or similar action or
delays to take actions of any governmental authority.

 

“Intellectual Property Rights”
means any and all intellectual property rights, including but not limited to those concerning inventions, patents, utility models, registered
designs and models, engineering or production materials, drawings, trademarks, service marks, domain names, applications for any of the
foregoing (and the rights to apply for any of the foregoing), proprietary or business sensitive information and/or technical know-how,
copyright, authorship, whether registered or not, and any neighbor rights.

 

“Order” means the Purchaser’s
request to Bitmain for certain Product(s) in accordance with this Agreement.

 

“Product(s)” means the
cryptocurrency mining hardware and other equipment or merchandise that Bitmain will provide to the Purchaser in accordance with this Agreement.

 

“Total Purchase Price”
means the aggregate amount payable by the Purchaser as set out in Appendix A of this Agreement.

 

“Warranty Period” means the period of time
that the Product(s) are covered by the warranty granted by Bitmain or its Affiliates in accordance with Clause 7 of this Agreement.

 

“Warranty Start Date” means the date on
which the Product(s) are delivered to the carrier.

 

Interpretations:

 

		i)	Words importing the singular include the plural and vice versa where the context so requires.

 

		ii)	The headings in this Agreement are for convenience only and shall not be taken into consideration in
the interpretation or construction of this Agreement.

 

		iii)	References to Clauses and Appendix(es) are references to Clauses and Appendix(es) of this Agreement.

 

		iv)	Unless specifically stated otherwise, all references to days shall mean calendar days.

 

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		v)	Any reference to a code, law, statute, statutory provision, statutory instrument,
order, regulation or other instrument of similar effect shall include any re-enactment or amendment thereof for the time being in force.

 

		2.	Sales of Product(s)

 

Bitmain will provide the Product(s)
set forth in Appendix A (attached hereto as part of this Agreement) to the Purchaser in accordance with provisions of Clause 2, Clause
3, Clause 4, Clause 5 and Appendix A of this Agreement, and the Purchaser shall make payment in accordance with the terms specified in
this Agreement.

 

		2.1	Both Parties agree that the Product(s) shall be sold in accordance with the following steps:

 

		(i)	The Purchaser shall place an Order through Bitmain’s website or through
other methods accepted by Bitmain, and such Order shall constitute an irrevocable offer to purchase specific Product(s) from Bitmain.

 

		(ii)	After receiving the Order, Bitmain will send an order receipt confirmation email
to the Purchaser. The Purchaser’s Order will be valid for a period of twenty-four

(24) hours after its placement,
and upon expiration of such period, Bitmain will have the right to cancel the Order at its sole discretion if the Purchaser fails to pay
the down payment in accordance with Appendix A of this Agreement.

 

		(iii)	The Purchaser shall pay the Total Purchase Price in accordance with Appendix A
of this Agreement.

 

		(iv)	Upon receipt of the Total Purchase Price, Bitmain will provide a payment receipt
to the Purchaser.

 

		(v)	Bitmain will send a shipping confirmation to the Purchaser after it has delivered
the Product(s) to the carrier, and the Order shall be deemed accepted by Bitmain upon Bitmain’s issuance of the shipping confirmation.

 

		2.2	Both Parties acknowledge and agree that the order receipt confirmation and the
payment receipt shall not constitute nor be construed as Bitmain’s acceptance of the Purchaser’s Order, but mere acknowledgement
of the receipt of the Order and the Total Purchase Price.

 

		2.3	Both Parties acknowledge and agree that in case of product unavailability, Bitmain
shall have the right to cancel the Order after it has issued the order receipt confirmation, the payment receipt or the shipping confirmation
without any penalty or liability.

 

		2.4	The Purchaser acknowledges and confirms that the Order is irrevocable and cannot
be cancelled by the Purchaser, and that the Product(s) ordered are neither returnable nor refundable. All sums paid by the Purchaser to
Bitmain shall not be subject to any abatement, set-off, claim, counterclaim, adjustment, reduction, or defense for any reason. Down payment
and payment of Total Purchase Price are not refundable, save as otherwise mutually agreed by the Parties.

 

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		3.	Prices and Terms of Payment

 

		3.1	The Total Purchase Price shall be paid in accordance with the payment schedule
set forth in Appendix B of this Agreement.

 

		3.2	Default of the full payment

 

(1)       In
the event that the Purchaser fails to fully settle the respective percentage of the Total Purchase Price before the prescribed deadline(s)
set forth in Appendix B, Bitmain, at its sole discretion, shall be entitled to request the Purchaser to pay, within sixty (60) days after
such applicable deadline, liquidated damages equal to twenty percent (20%) of the Purchaser’s payment obligations with respect to
the batch of Products for which payment was not made within the prescribed deadline (with the understanding such amount is reasonable
and shall not constitute a penalty as set forth in Clause 27 of this Agreement), provided, however, Purchaser shall not be required to
pay such liquidated damages if it obtains Bitmain’s prior written consent for an extension of its obligation to pay within five
(5) business days of the prescribed deadline:

 

(i)       Failure
of payment of the liquidated damage: in the event that the Purchaser fails to pay the aforementioned amounts after the expiration of the
final payment deadline, Bitmain shall be entitled to terminate this Agreement. If there are any remaining balance of the Purchaser after
deducting for liquidated damages, such remaining balance shall be refunded to the Purchaser free of any interest.

 

(ii)       Request
of resumption of performance by Purchaser: if the Purchaser requests to continue to make payment of the purchase price after its initial
delay, and if Bitmain has not otherwise terminated this Agreement, Bitmain shall be entitled to reject the payment of the purchase price
temporarily and request the Purchaser pay the aforementioned liquidated damage. Afterwards, the Parties shall negotiate the settlement
separately.

 

		(2)	Notwithstanding the foregoing, if the Purchaser fails to pay any payment on a timely
basis and Bitmain has arranged production or procurement, Bitmain shall be entitled to request the Purchaser to be responsible for the
loss related to such production or procurement and the liability of the Purchaser shall be no less than twenty percent (20%) of the Total
Purchase Price.

 

		3.3	The Total Purchase Price set forth in this Agreement is merely an estimate of
the price and not the actual price. The actual price will be determined [one] month before the current batch is shipped and with reference
to the market circumstances, provided that the actual price shall not be higher than the estimated price.

 

		3.4	Upon receipt of notification of the actual price provided by Bitmain, the Purchaser
shall be entitled to three options:

 

		(i)	continue to perform the Order of the current batch of the Product(s) with the original rated hashrate
and pay the remaining amount at the actual price; or

 

    		6  /  23	

    	 

    

 

		(ii)	request Bitmain to increase the rated hashrate by an amount that would equate
to the dollar difference by which the estimated price exceeds the actual price (if any) with Bitmain having the right to negotiate with
the Purchaser for the amount of the additional rated hashrate based on its then inventory; or

 

		(iii)	partially or wholly cancel the Order of the current batch of Product(s), provided,
however, prior to Bitmain’s notification of the actual price, the Purchaser shall make timely payments based on the estimated price
as specified in Clause 3.1.

 

The Purchaser shall not claim any
refund from Bitmain if the estimated price exceeds the actual price. Subject to Bitmain’s prior approval, any balance resulting
from the Purchaser’s payment of the estimated purchase price may be credited towards the Purchaser’s (or its Affiliates’)
payment of the actual price. In the event the Purchaser cancels any Order for any batches of Products, the payments for those batches
cannot be used as down payments for any other batch listed in this Agreement. However, the remaining balance shall be refunded to the
Purchaser free of any interest two years after the Order is cancelled.

 

Furthermore, the Purchaser shall
exercise its option under this Clause 3.4 by written confirmation to Bitmain within two (2) days after Bitmain notifies the Purchaser
of the actual price. If the Purchaser fails to provide confirmation of its exercise of its option and no agreement is reached between
the Parties within such two (2) day period, the Purchaser shall be deemed to have voluntarily and irrevocably waived its option under
this Clause 3.4 and the Parties shall continue to perform the Order of the current batch of Product(s) with the original rated hashrate
and the Purchaser shall pay the remaining amount at the actual price. If the Purchaser exercises its options pursuant to this Clause 3.4,
no additional changes to the payment options shall be made for the current batch of Product(s).

 

		3.5	Before the Purchaser makes any payment on any batch of Product(s), the Parties
shall confirm and agree on the batch of the Product(s) against which payment is being made. This confirmation shall be used to determine
matters where different arrangements are applicable to different batches, including, but not limited to, defaults of the Purchaser and
the product discount offered to the Purchaser.

 

		3.6	Before the delivery date, Bitmain shall be entitled to request the Purchaser to
sign a Sales and Purchase Agreement by sending a written notice to the Purchaser, and the Purchaser shall cooperate to sign such Sales
and Purchase Agreement and pay the price of the remaining batch(s) of Products to Bitmain as specified in this Agreement. If the Purchaser
refuses to sign a Sales and Purchase Agreement as required by Bitmain, Bitmain shall be entitled to request the Purchaser to perform its
rights and obligations referred in this Agreement.

 

		3.7	The Parties understand and agree that the applicable prices of the
                                                                  Product(s) are inclusive of applicable bank transaction fee, but are exclusive of any and all applicable import duties, taxes and
                                                                  governmental charges. The Purchaser shall pay or reimburse Bitmain for all taxes levied on or assessed against the amounts payable
                                                                  hereunder (including, without limitation, any sales,
use, value added, VAT, GST, PST or other taxes of a similar nature imposed by any federal, state or local taxing authority). If any payment
is subject to withholding, the Purchaser shall pay such additional amounts as necessary, to ensure that Bitmain receives the full amount
it would have received had payment not been subject to such withholding.

 

    		7  /  23	

    	 

    

 

		4.	Product Discount

 

Based on the sales results and sales strategy, Bitmain
is willing to offer the following discount as set forth in Clause [4.1]:

 

		4.1	With respect of the signing of this Agreement, Bitmain offers the following discount to the Purchaser:

 

		4.1.1	The Products under this Agreement consists of six (6) batches and the discount amount
of each batch shall be calculated separately.

 

		4.1.2	If the Purchaser makes prepayments on any batch of Products, Bitmain may provide
different discounts to the Purchaser based on the actual amount of the prepayment and the payment time in accordance with the following
formula:

 

Discount Amount = Amount of prepayment
* 1% * Number of months prepaid.

 

The amount of prepayment shall be
calculated at the end of each month. The number of months prepaid shall be calculated from the month of payment without counting the month
of estimated delivery. If delivery is delayed, such delayed months shall not be counted and the agreed delivery date shall prevail. For
clarification, the payment date shall be the date as evidenced in the remittance copy of such payment, and the discount term shall be
calculated when the respective amounts under this Agreement have been received by Bitmain in full and without further consideration of
the remaining amount. Payment schedules may be further adjusted in accordance with the actual situations.

 

		4.2	No discount will be offered by Bitmain to the Purchaser.

 		4.3	Bitmain shall offer [%] discount to the Purchaser.

 

		5.	Shipping of Product(s)

 

		5.1	Bitmain shall deliver the Products in accordance with the shipping schedule to
the first carrier or the carrier designated by the Purchaser.

 

		5.2	Subject to the limitations stated in Appendix A, the terms of delivery of the Product(s)
shall be CIP (carriage and insurance paid to the United States) according to Incoterms 2010) to the place of delivery designated by the
Purchaser. Once the Product(s) have been delivered to the carrier, Bitmain
shall have fulfilled its obligation to supply the Product(s) to the Purchaser, and the title and risk of loss or damage to the Product(s)
shall pass to the Purchaser. The Parties hereby acknowledge and agree that the delivery of the Product(s) to the carrier shall occur outside
of the United States, and as such, the transfer of title and risk of loss or damage with respect to the Product(s) when delivered to the
carrier shall pass to the Purchaser outside of the United States.

 

    		8  /  23	

    	 

    

 

		5.3	In the event of any discrepancy between this Agreement and Bitmain’s cargo
insurance policy regarding the insurance coverage, the then effective Bitmain cargo insurance policy shall prevail, and Bitmain shall
be required to provide the then effective insurance coverage to the Purchaser.

 

		5.4	If Bitmain fails to deliver the Products after thirty (30) days after the prescribed
deadline, the Purchaser shall be entitled to cancel the Order of such batch of Products and request Bitmain to refund the price of such
undelivered batch of Products together with interest of 0.0333% per day for the period beginning from the date immediately after which
payment for such batch of Products was made to the date immediately prior to the Purchaser’s request for refund.

 

		5.5	If Bitmain postpones the shipping schedule of the Products and the Purchaser does
not cancel the Order and requests Bitmain to perform its delivery obligation, Bitmain shall compensate the Purchaser a daily amount equal
to 0.0333% of the price for such undelivered batch of Products, which compensation shall be made in the form of delivery of more rated
hashrate. Amount less than one unit of Product shall be credited to the balance in the Purchaser’s user system on Bitmain’s
official website, which shall be viewable by the Purchaser.

 

		5.6	There are six (6) batches
of Products under this Agreement and each batch shall constitute independent legal obligations of and shall be performed separately by
the Parties. The delay of a particular batch shall not constitute waiver of the payment obligation of the Purchaser in respect of other
batches. The Purchaser shall not be entitled to terminate this Agreement solely on the ground of delay of delivery of a single batch of
Products.

 

		5.7	The Purchaser shall choose the following shipping method:

 

□
Shipping by Bitmain via FedEx/DHL/UPS/other logistics company;

☑Self-pick

 

Note: Logistics costs shall be borne
by the Purchaser. Bitmain may collect payments on behalf of the services providers and issue services invoices if the Purchaser requests
Bitmain to send the Products.

 

		5.8	Bitmain shall not be responsible for any delivery delay caused by the Purchaser
or any third party, including but not limited to carriers, customs, and import brokers, nor shall it be liable for damages, whether direct,
indirect, incidental, consequential, or otherwise, for any failure, delay or error in delivery of any Product(s) for any reason whatsoever.

 

    		9  /  23	

    	 

    

 

		5.9	Bitmain shall not be responsible and the Purchaser shall be fully and exclusively
responsible for any loss of Product(s), personal injury, property damage, other damages or liability caused by the Product(s) or the transportation
of the Product(s) either to the Purchaser or any third party, or theft of the Product(s) during transportation from Bitmain to the Purchaser.

 

		5.10	Bitmain has the right to discontinue the sale of the Product(s) and to make changes
to its Product(s) at any time, without prior approval from or notice to the Purchaser.

 

		5.11	If the Product(s) is rejected and/or returned to Bitmain because of any reason
and regardless of the cause of such delivery failure, the Purchaser shall be solely and exclusively liable for and shall defend, fully
indemnify and hold harmless Bitmain against any and all related expenses, fees, charges and costs incurred, arising out of or incidental
to such rejection and/or return (the “Return Expenses”). Furthermore, if the Purchaser requests for Bitmain’s assistance
to redeliver such Product(s) or assist in any other manner, and if Bitmain at its sole discretion agrees to redeliver or assist, then
in addition to the Return Expenses, the Purchaser shall also pay Bitmain an administrative fee in accordance with Bitmain’s then
applicable internal policy.

 

		5.12	If the Purchaser fails to provide Bitmain with the delivery place or the delivery
place provided by the Purchaser is a false address or does not exist, or the Purchaser refuses to accept the Products when delivered,
any related costs occurred (including storage costs, warehousing charge and labor costs) shall be borne by the Purchaser. Bitmain may
issue the Purchaser a notice of self-pick-up to require the Purchaser to pick up the Products. Bitmain shall be deemed to have completed
the delivery obligation under this Agreement after two (2) business days following the issue of the self-pick-up notice.

 

		5.13	The Purchaser shall inspect the Products within two (2) days (the “Acceptance
Time”) after receiving the Products (the date of signature on the carrier’s delivery voucher shall be the date of receipt).
If the Purchaser does not raise any written objection within the Acceptance Time, the Products delivered by Bitmain shall be deemed to
be in full compliance with the provisions of this Agreement.

 

		6.	Customs

 

		6.1	Bitmain shall obtain in due time and maintain throughout the term of this Agreement
(if applicable), any and all approvals, permits, authorizations, licenses and clearances for the export of the Product(s) that are required
to be obtained by Bitmain or the carrier under Applicable Laws.

 

		6.2	The Purchaser acknowledges that it shall be the importer of record with respect
to the Product(s), and shall obtain in due time and maintain throughout the term of this Agreement (if applicable), any and all approvals,
permits, authorizations, licenses and clearances required for the import of the Product(s) to the country of delivery as indicated in
the shipping information, that are required to be obtained by the Purchaser or the carrier under Applicable Laws, and shall be responsible
for any and all additional fees, expenses and charges in relation to the import of the Product(s).

 

    		10  /  23	

    	 

    

 

		6.3	To the extent permitted by laws, except for the Warranty as set forth in Clause
7 of the Agreement, Bitmain provides no other warranty, whether explicit or implied, in any form, including but not limited to the warranty
of the marketability, satisfaction of the quality, suitability for the specific purpose, not infringing third party’s right, etc.
In addition, Bitmain shall not be responsible for any direct, specific, incidental, accidental or indirect loss arising from the use of
the Product(s), including but not limited to the loss of commercial profits.

 

		6.4	Bitmain shall not be liable for any loss caused by:

 

		(i)	failure of the Purchaser to use the Product(s) in accordance with the manual, specifications,
operation descriptions or operation conditions provided by Bitmain in writing;

 

		(ii)	the non-operation of the Product(s) during the replacement/maintenance period or
caused by other reasons; or

 

		(iii)	confiscation, seizure, search or other actions taken by government agencies such
as customs.

 

		7.	Warranty

 

		7.1	The Warranty Period shall start on the Warranty Start Date and end on the 365th
day after the Warranty Start Date. During the Warranty Period, the Purchaser’s sole and exclusive remedy, and Bitmain’s entire
liability, will be to repair or replace, at Bitmain’s option, the defective part/component of the Product(s) or the defective Product(s)
at no charge to the Purchaser. If the Purchaser requires Bitmain to provide any warranty services, the Purchaser shall create a maintenance
order on Bitmain’s website during the Warranty Period (the time of creation of the maintenance order shall be determined by the
display time of such order on Bitmain’s website) and send the Product to the place designated by Bitmain within the time limit required
by Bitmain. Bitmain may refuse to provide the warranty service if the request for such warranty service was not made in accordance with
this Clause 7.1.

 

		7.2	The Parties acknowledge and agree that the warranty provided by Bitmain as stated
in the preceding paragraph does not apply to the following:

 

		(i)	normal wear and tear;

 

		(ii)	damage resulting from accident, abuse, misuse, neglect, improper handling or improper
installation;

 

		(iii)	damage or loss of the Product(s) caused by undue physical or electrical stress,
including but not limited to moisture, corrosive environments, high voltage surges, extreme temperatures, shipping, or abnormal working
conditions;

 

		(iv)	damage or loss of the Product(s) caused by acts of nature including, but not limited
to, floods, storms, fires, and earthquakes;

 

    		11  /  23	

    	 

    

 

		(v)	damage caused by operator error, or non-compliance with instructions as set out
in accompanying product documentation provided by Bitmain;

 

		(vi)	alterations by persons other than Bitmain, or its associated partners or authorized
service facilities;

 

		(vii)	Product(s), on which the original software has been replaced or modified by persons
other than Bitmain, or its associated partners or authorized service facilities;

 

		(viii)	counterfeit products;

 

		(ix)	damage or loss of data due to interoperability with current and/or future versions
of operating system, software and/or hardware;

 

		(x)	damage or loss of data caused by improper usage and behavior which is not recommended
and/or permitted in the product documentation provided by Bitmain;

 

		(xi)	failure of the Product(s) caused by usage of products not supplied by Bitmain; and

 

		(xii)	hash boards or chips are burnt.

 

In case the warranty is voided, Bitmain may, at its
sole discretion, provide repair service to the Purchaser, and the Purchaser shall bear all related expenses and costs.

 

		7.3	Notwithstanding anything to the contrary herein, the Purchaser acknowledges and
agrees that the Product(s) provided by Bitmain do not guarantee any cryptocurrency mining time and, Bitmain shall not be liable for any
cryptocurrency mining time loss or cryptocurrency mining revenue loss that are caused by downtime of any part/component of the Product(s).
Bitmain does not warrant that the Product(s) will meet the Purchaser’s requirements or the Product(s) will be uninterrupted or error
free. Except as provided in Clause 7.1 of this Agreement, Bitmain makes no warranties of any kind with respect to the Product(s) to the
Purchaser, whether written, oral, express, implied or statutory, including warranties of merchantability, fitness for a particular purpose,
non- infringement, or arising from course of dealing or usage in trade.

 

		7.4	In the event of any ambiguity or discrepancy between this Clause 7 of this Agreement
and Bitmain’s After-sales Service Policy from time to time, it is intended that the After- sales Service Policy shall prevail and
the Parties shall comply with and give effect to the After-sales Service Policy. Please refer to the website of Bitmain for detailed terms
of warranty and after-sales maintenance. Bitmain has no obligation to notify the Purchaser of the update or modification of such terms.

 

		7.5	During the warranty period, if the hardware product needs to be repaired or replaced,
the Purchaser shall bear the logistics costs of shipping the Product to the address designated by Bitmain, and Bitmain shall bear the
logistics costs of shipping the repaired or replaced Product to the address designated by the Purchaser. The Purchaser shall bear all
and any additional costs incurred due to
incorrect or incomplete delivery information provided by the Purchaser and all and any risks of loss or damage to the Product, or the
parts or components of the Products during any shipping periods.

 

    		12  /  23	

    	 

    

 

		8.	Representations and Warranties

 

The Purchaser makes the following representations and warranties
to Bitmain:

 

		8.1	It has the full power and authority to own its assets and carry on its businesses.

 

		8.2	The obligations expressed to be assumed by it under this Agreement are legal,
valid, binding and enforceable obligations.

 

		8.3	It has the power to enter into, perform and deliver, and has taken all necessary
action to authorize its entry into, performance and delivery of, this Agreement and the transactions contemplated by this Agreement.

 

		8.4	The entry into and performance by it of, and the transactions contemplated by,
this Agreement do not and will not conflict with:

 

		(i)	any Applicable Law;

 

		(ii)	its constitutional documents; or

 

		(iii)	any agreement or instrument binding upon it or any of its assets.

 

		8.5	All authorizations required or desirable:

 

		(i)	to enable it to lawfully enter into, exercise its rights under and comply with
its obligations under this Agreement;

 

		(ii)	to ensure that those obligations are legal, valid, binding and enforceable; and

 

		(iii)	to make this Agreement admissible in evidence in its jurisdiction of organization,

 

have been, or will have been by
the time, obtained or effected and are, or will by the appropriate time be, in full force and effect.

 

		8.6	It is not aware of any circumstances which are likely to lead to:

 

		(i)	any authorization obtained or effected not remaining in full force and effect;

 

		(ii)	any authorization not being obtained, renewed or effected when required or desirable;
or

 

		(iii)	any authorization being subject to a condition or requirement which it does not reasonably
expect to satisfy or the compliance with which has or could reasonably be expected to have a material adverse effect.

 

    		13  /  23	

    	 

    

 

		8.7	(a) It is not the target of economic sanctions administered by the Office of Foreign
Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, the European
Union, Her Majesty’s Treasury or Singapore (“Sanctions”), including by being listed on the Specially Designated Nationals
and Blocked Persons (SDN) List maintained by OFAC or any other Sanctions list maintained by one of the foregoing governmental authorities,
directly or indirectly owned or controlled by one or more SDNs or other Persons included on any other Sanctions list, or located, organized
or resident in a country or territory that is the target of Sanctions, and

(b) the purchase of the Product(s)
will not violate any Sanctions or import and export control related laws and regulations.

 

		8.8	All information supplied by the Purchaser is and shall be true and correct, and
the information does not contain and will not contain any statement that is false or misleading.

 

		9.	Indemnification and Limitation of Liability

 

		9.1	The Purchaser shall, during the term of this Agreement and at any time thereafter,
indemnify and save Bitmain and/or its Affiliates harmless from and against any and all damages, suits, claims, judgments, liabilities,
losses, fees, costs or expenses of any kind, including legal fees, whatsoever arising out of or incidental to the Products pursuant to
this Agreement.

 

		9.2	Notwithstanding anything to the contrary herein, Bitmain and its Affiliates shall
under no circumstances, be liable to the Purchaser for any consequential damages, or any indirect, incidental, special, exemplary or punitive
damages, or any measure of damages based on diminution in value or based on any loss of goodwill, business, anticipated profits, revenue,
contract, or business opportunity or similar concept, and the Purchaser hereby waives any claim it may at any time have against Bitmain
and its Affiliates in respect of any such damages. The foregoing limitation of liability shall apply whether in an action at law, including
but not limited to contract, strict liability, negligence, willful misconduct or other tortious action, or an action in equity.

 

		9.3	Bitmain and its Affiliates’ cumulative aggregate liability pursuant to this
Agreement, whether arising from tort, breach of contract or any other cause of action shall be limited to and not exceed the amount of
one hundred percent (100%) of the down payment actually received by Bitmain from the Purchaser for the Product(s).

 

		9.4	The Product(s) are not designed, manufactured or intended for use in hazardous
or critical environments or in activities requiring emergency or fail-safe operation, such as the operation of nuclear facilities, aircraft
navigation or communication systems or in any other applications or activities in which failure of the Product(s) may pose the risk of
environmental harm or physical injury or death to humans. In addition to the disclaimer of warranties set forth in Clause 7.3 of this
Agreement, Bitmain specifically disclaims any express or implied warranty of fitness for any of the applications described in the preceding
sentence and any such use shall be at the Purchaser’s sole risk.

 

    		14  /  23	

    	 

    

 

		9.5	The above limitations and exclusions shall survive and apply (1) notwithstanding
any exclusive or limited remedy is found to have failed its essential purpose; and (2) whether or not Bitmain has been advised of the
possibility of such damages. The Parties acknowledge the limitation of liability and the allocation of risks in this Clause 9 is an essential
element of the basis of the bargain between the Parties under this Agreement and Bitmain’s pricing reflects this allocation of risk
and the above limitations of liability.

 

		10.	Distribution

 

		10.1	This Agreement does not constitute a distributor agreement between Bitmain and the
Purchaser. The Purchaser acknowledges that it is not an authorized distributor of Bitmain.

 

		10.2	The Purchaser shall in no event claim or imply to a third party that it is an
authorized distributor of Bitmain or Bitmain (Antminer) or their respective Affiliates, or perform any act that will cause it to be construed
as an authorized distributor of Bitmain or Bitmain (Antminer) or their respective Affiliates. As between the Purchaser and Bitmain, the
Purchaser shall be exclusively and fully responsible for complying with the Applicable Laws regarding repackaging the Product(s) for the
Purchaser’s redistribution needs, and shall be solely liable for any and all liabilities or costs directly incurred or incidental
to such redistribution.

 

		11.	Intellectual Property Rights

 

		11.1	The Parties agree that the Intellectual Property Rights in any way contained in the
Product(s), made, conceived or developed by Bitmain and/or its Affiliates for the Product(s) under this Agreement and/or, achieved, derived
from, related to, connected with the provision of the Product(s) by Bitmain and/or acquired by Bitmain from any other person in performance
of this Agreement shall be the exclusive property of Bitmain and/or its Affiliates.

 

		11.2	Notwithstanding anything to the contrary herein, all Intellectual Property Rights
in the Product(s) shall remain the exclusive property of Bitmain and/or its licensors. Except for licenses explicitly identified in Bitmain’s
shipping confirmation or in this Clause 11.2, no rights or licenses are expressly granted, or implied, whether by estoppel or otherwise,
in respect of any Intellectual Property Rights of Bitmain and/or its Affiliates or any Intellectual Property residing in the Product(s)
provided by Bitmain to the Purchaser, including in any documentation or any data furnished by Bitmain. Bitmain grants the Purchaser a
non-exclusive, non-transferrable, royalty-free and irrevocable license of Bitmain and/or its Affiliates’ Intellectual Property Rights
to solely use the Product(s) delivered by Bitmain to the Purchaser for their ordinary function, and subject to the Clauses set forth herein.
The Purchaser shall in no event violate the Intellectual Property Rights of Bitmain and/or its licensors.

 

		11.3	The Purchaser shall not illegally use or infringe the Intellectual Property
                                                                   Rights of the Product in any other measure. Otherwise, Bitmain shall have the right to request the Purchaser to take immediate
                                                                   remedial measures and assume full responsibilities, including but not limited to ceasing the infringement immediately, eliminating
                                                                   the impact, and compensating Bitmain and/or its suppliers for all losses
arising out of the illegal use or infringement, etc.

 

    		15  /  23	

    	 

    

 

		11.4	The Purchaser shall not use any technical means to disassemble, map or analyze
the Products of Bitmain that the Purchaser obtains publicly, and shall not reverse engineer or otherwise attempt to derive or obtain information
about the function, manufacture or operation of the Products, to retrieve relevant technical information of the Products and use it for
commercial purposes. Otherwise, the Purchaser shall be liable for losses caused to Bitmain in accordance with Clause 11.3.

 

		11.5	If applicable, payment by the Purchaser of non-recurring charges to Bitmain for
any special designs, or engineering or production materials required for Bitmain’s performance of Orders for customized Product(s),
shall not be construed as payment for the assignment from Bitmain to the Purchaser of title to such special designs, engineering or production
materials. Bitmain shall be the sole owner of such special designs, engineering or production materials.

 

		12.	Confidentiality and Communications

 

		12.1	All information concerning this Agreement and matters pertaining to or derived
from the provision of Product(s) pursuant to this Agreement between the Parties, whether in oral or written form, or in the form of drawings,
computer programs or other, as well as all data derived therefrom (“Confidential Information”), shall be deemed to be confidential
and, as such, may not be divulged to any unauthorized person. The Purchaser undertakes and agrees to take all reasonable and practicable
steps to ensure and protect the confidentiality of the Confidential Information which cannot be passed, sold, traded, published or disclosed
to any unauthorized person.

 

		13.	Injunctive Relief

 

		13.1	The Purchaser acknowledge that monetary damages may not provide a remedy in the event
of certain breach of the Purchaser’s obligations to this Agreement and therefore, in addition to any other rights of Bitmain, the
Purchaser grants to Bitmain the right to enforce this Agreement by means of injunction, both mandatory (specific performance) and preventive,
without the necessity of obtaining any form of bond or undertaking whatsoever, and waives any claim or defense that damages may be adequate
or otherwise preclude injunctive relief.

 

		14.	Term of this Agreement

 

		14.1	The Parties agree that, unless this Agreement specifies otherwise, no Party shall
terminate this Agreement in advance.

 

		14.2	This Agreement shall be effective upon signing of this Agreement and shall remain
effective up to and until the delivery of the last batch of Products.

 

    		16  /  23	

    	 

    

 

		15.	Notices

 

		15.1	All notices, requirements, requests, claims, and other communications in relation
to this Agreement shall be in writing, and shall be given or made by delivery in person, by an internationally recognized overnight courier
service, by facsimile or registered or certified mail (postage prepaid, return receipt requested) or electronic mail to the respective
Parties at the addresses specified below or at such other address for a Party as may be specified in a notice given in accordance with
this Clause 14.1.

 

		15.2	The Purchaser undertakes that the documents, materials, vouchers, order information,
payment account information, credential numbers, mobile phone numbers, transaction instructions and so on provided by the Purchaser shall
be true, correct, complete and effective, and the information does not contain any statement that is false or misleading.

 

		15.3	If there is any suspicious transaction, illegal transaction, risky transaction
or other risky events of the Purchaser’s account registered on Bitmain’s website, the Purchaser agrees that Bitmain shall
have the right to disclose the Purchaser’s registration information, transaction information, identity information, logistics information
upon the request of relevant judicial agencies, regulatory agencies or third-party payment institutions for investigation purpose. In
addition, if necessary, the Purchaser shall provide further information upon Bitmain’s request.

 

		15.4	The following are the initial address of each Party:

 

	If to the Purchaser:
	 	 
	Address: 	11411 Southern Highlands Parkway, Suite 240,
Las Vegas, NV 89141
	 	 
	Attn: 	[●]
	 	 
	Phone: 	[●]
	 	 
	Email: 	[●]
	 	 
	If to Bitmain:
	 	 
	Address:	[●]
	 	 
	Attn	[●]
	 	 
	Email:	[●]

 

		15.5	All such notices and other communications shall be deemed effective in the following situations:

 

		(i)	if sent by delivery in person, on the same day of the delivery;

 

    		17  /  23	

    	 

    

 

		(ii)	if sent by registered or certified mail or overnight courier service, on the same day the written confirmation
of delivery is sent; and

 

		(iii)	if sent by electronic mail, at the entrance of the related electronic mail into the recipient’s
electronic mail server.

 

		16.	Compliance with Laws and Regulations

 

		16.1	The Purchaser undertakes that it will fully comply with all Applicable Laws in
relation to export and import control and Sanctions and shall not take any action that would cause Bitmain or any of its Affiliates to
be in violation of any export and import control laws or Sanctions. The Purchaser shall also be fully and exclusively liable for and shall
defend, fully indemnify and hold harmless Bitmain and/or its Affiliates from and against any and all claims, demands, actions, costs or
proceedings brought or instituted against Bitmain and/or its Affiliates arising out of or in connection with any breach by the Purchaser
or the carrier of any Applicable Laws in relation to export and import control or Sanction.

 

		16.2	The Purchaser acknowledges and agrees that the Product(s) in this Agreement are
subject to the export control laws and regulations of all related countries, including but not limited to the Export Administration Regulations
(“EAR”) of the United States. Without limiting the foregoing, the Purchaser shall not, without receiving the proper licenses
or license exceptions from all related governmental authorities, including but not limited to the U.S. Bureau of Industry and Security,
distribute, re-distribute, export, re-export, or transfer any Product(s) subject to this Agreement either directly or indirectly, to any
national of any country identified in Country Groups D:1 or E:1 as defined in the EARs. In addition, the Product(s) under this Agreement
may not be exported, re-exported, or transferred to (a) any person or entity for military purposes; (b) any person or entity listed on
the “Entity List”, “Denied Persons List” or the SDN List as such lists are maintained by the U.S. Government,
or (c) an end-user engaged in activities related to weapons of mass destruction. Such activities include but are not necessarily limited
to activities related to: (1) the design, development, production, or use of nuclear materials, nuclear facilities, or nuclear weapons;
(2) the design, development, production, or use of missiles or support of missiles projects; and (3) the design, development, production,
or use of chemical or biological weapons. The Purchaser further agrees that it will not do any of the foregoing in violation of any restriction,
law, or regulation of the European Union or an individual EU member state that imposes on an exporter a burden equivalent to or greater
than that imposed by the U.S. Bureau of Industry and Security.

 

		16.3	The Purchaser undertakes that it will not take any action under this Agreement
or use the Product(s) in a way that will be a breach of any anti-money laundering laws, any anti- corruption laws, and/or any counter-terrorist
financing laws.

 

    		18  /  23	

    	 

    

 

		16.4	The Purchaser warrants that the Product(s) have been purchased with funds that
are from legitimate sources and such funds do not constitute proceeds of criminal conduct, or realizable property, or proceeds of terrorism
financing or property of terrorist, within the meaning given in the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation
of Benefits) Act (Chapter 65A) and the Terrorism (Suppression of Financing) Act (Chapter 325), respectively.
If Bitmain receives, including but not limited to investigation, evidence collection, restriction and other measures, from any competent
organizations or institutions, the Purchaser shall immediately cooperate with Bitmain and such competent organizations or institutions
in the investigation process, and Bitmain may request the Purchaser to provide necessary security if so required. If any competent organizations
or institutions request Bitmain to seize or freeze the Purchaser’s Products and funds (or take any other measures), Bitmain shall
be obliged to cooperate with such competent organizations or institutions, and shall not be deemed as breach of this Agreement. The Purchaser
understands that if any Person resident in Singapore knows or suspects or has reasonable grounds for knowing or suspecting that another
Person is engaged in criminal conduct or is involved with terrorism or terrorist property and the information for that knowledge or suspicion
came to their attention in the course of business in the regulated sector, or other trade, profession, business or employment, the Person
will be required to report such knowledge or suspicion to the Suspicious Transaction Reporting Office, Commercial Affairs Department of
the Singapore Police Force. The Purchaser acknowledges that such a report shall not be treated as breach of confidence or violation of
any restriction upon the disclosure of information imposed by any Applicable Law, contractually or otherwise.

 

		17.	Force Majeure

 

		17.1	To the extent that a Party is fully or partially delayed, prevented or hindered
by an event of Force Majeure from performing any obligation under this Agreement (other than an obligation to make payment), subject to
the exercise of reasonable diligence by the affected Party, the failure to perform shall be excused by the occurrence of such event of
Force Majeure. A Party claiming that its performance is excused by an event of Force Majeure shall, promptly after the occurrence of such
event of Force Majeure, notify the other Party of the nature, date of inception and expected duration of such event of Force Majeure and
the extent to which the Party expects that the event will delay, prevent or hinder the Party from performing its obligations under this
Agreement. The notifying Party shall thereafter use its best effort to eliminate such event of Force Majeure and mitigate its effects.

 

		17.2	The affected Party shall use reasonable diligence to remove the event of Force
Majeure, and shall keep the other Party informed of all significant developments.

 

		17.3	Except in the case of an event of Force Majeure, neither party may terminate this
Agreement prior to its expiry date.

  

		18.	Entire Agreement and Amendment

 

This Agreement, constitutes the entire agreement of the
Parties hereto and can only be amended with the written consent of both Parties or otherwise as mutually agreed by both Parties.

 

    		19  /  23	

    	 

    

 

		19.	Assignment

 

		19.1	Bitmain may freely assign or transfer any of its rights, benefits or obligations
under this Agreement in whole or in part to its Affiliates or to any third party. The Purchaser may not assign or transfer any of its
rights, benefits or obligations under this Agreement in whole or in part without Bitmain’s prior written consent.

 

		19.2	This Agreement shall be binding upon and inure to the benefit of each Party to
this Agreement and its successors in title and permitted assigns.

 

		20.	Severability

 

To the extent possible, if any provision
of this Agreement is held to be illegal, invalid or unenforceable in whole or in part by a court, the provision shall apply with whatever
deletion or modification is necessary so that such provision is legal, valid and enforceable and gives effect to the commercial intention
of the Parties. The remaining provisions of this Agreement shall not be affected and shall remain in full force and effect.

 

		21.	Personal Data

 

Depending on the nature of the
Purchaser’s interaction with Bitmain, some examples of personal data which Bitmain may collect from the Purchaser include the Purchaser’s
name and identification information, contact information such as the Purchaser’s address, email address and telephone number, nationality,
gender, date of birth, and financial information such as credit card numbers, debit card numbers and bank account information.

 

Bitmain generally does not collect
the Purchaser’s personal data unless (a) it is provided to Bitmain voluntarily by the Purchaser directly or via a third party who
has been duly authorized by the Purchaser to disclose the Purchaser’s personal data to Bitmain (the Purchaser’s “authorized
representative”) after (i) the Purchaser (or the Purchaser’s authorized representative) has been notified of the purposes
for which the data is collected, and (ii) the Purchaser (or the Purchaser’s authorized representative) has provided written consent
to the collection and usage of the Purchaser’s personal data for those purposes, or (b) collection and use of personal data without
consent is permitted or required by related laws. Bitmain shall seek the Purchaser’s consent before collecting any additional personal
data and before using the Purchaser’s personal data for a purpose which has not been notified to the Purchaser (except where permitted
or authorized by law).

 

		22.	Conflict with the Terms and Conditions

 

In the event of any ambiguity or
discrepancy between the Clauses of this Agreement and the Terms and Conditions from time to time, it is intended that the Clauses of this
Agreement shall prevail and the Parties shall comply with and give effect to this Agreement.

 

		23.	Governing Law and Dispute Resolution

 

		23.1	This Agreement shall be solely governed by and construed in accordance with the
laws of Hong Kong.

 

    		20  /  23	

    	 

    

 

		23.2	Any dispute, controversy, difference or claim arising out of or relating to this
Agreement, including the existence, validity, interpretation, performance, breach or termination hereof or any dispute regarding non-contractual
obligations arising out of or relating to this Agreement shall be referred to and finally resolved by arbitration administered by the
Hong Kong International Arbitration Center under the UNCITRAL Arbitration Rules in force when the notice of arbitration is submitted.
The decision and awards of the arbitration shall be final and binding upon the parties hereto.

 

		24.	Waiver

 

Failure by either Party to enforce
at any time any provision of this Agreement, or to exercise any election of options provided herein shall not constitute a waiver of such
provision or option, nor affect the validity of this Agreement or any part hereof, or the right of the waiving Party to thereafter enforce
each and every such provision or option.

 

		25.	Counterparts and Electronic Signatures

 

This Agreement may be executed
in one or more counterparts, each of which will be deemed to be an original copy of this Agreement, and all of which, when taken together,
will be deemed to constitute one and the same agreement. The facsimile, email or other electronically delivered signatures of the Parties
shall be deemed to constitute original signatures, and facsimile or electronic copies hereof shall be deemed to constitute duplicate originals.

 

		26.	Further Assurance

 

Each Party undertakes to the other
Party to execute or procure to be executed all such documents and to do or procure to be done all such other acts and things as may be
reasonable and necessary to give all Parties the full benefit of this Agreement.

 

		27.	Third Party Rights

 

A person who is not a Party to this
Agreement has no right under the Contracts (Rights of Third Parties) Ordinance (Chapter 623 of the Laws of Hong Kong) to enforce or to
enjoy the benefit of any term of this Agreement.

 

		28.	Liquidated Damages Not Penalty

 

It is expressly agreed that any
liquidated damages payable under this Agreement do not constitute a penalty and that the Parties, having negotiated in good faith for
such specific liquidated damages and having agreed that the amount of such liquidated damages is reasonable in light of the anticipated
harm caused by the breach related thereto and the difficulties of proof of loss and inconvenience or nonfeasibility of obtaining any adequate
remedy, are estopped from contesting the validity or enforceability of such liquidated damages.

 

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blank)

 

    		21  /  23	

    	 

    

 

	Signed for and on behalf of Bitmain	 	 	 
	 	 	 	 
	 	 	 	 
	 	Bitmain Technologies Limited
	 	 	 	 
	 	 	 	 
	 	Signature	 	 
	 	Title	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	Signed for and on behalf of the Purchaser	 	 	 
	 	 	 	 
	 	Ault Alliance, Inc.
	 	 	 	 
	 	 	 	 
	 	Signature	 	 
	 	Title	 	 

 

    		22  /  23	

    	 

    

 

APPENDIX A

 

APPENDIX B

 

 

 

 

 

23  /  23

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