Document:

Exhibit 10.6

 

** Portions of this exhibit have been omitted pursuant to Rule 601(b)(10)
of Regulation S-K. The omitted information is not material and would likely cause competitive harm to the registrant if publicly disclosed.

 

ELECTRIC SERVICE AGREEMENT

 

This Electric Service Agreement
(“Agreement”) is made by and between APLD Hosting LLC, a Nevada Corporation (“Customer”) with its principal office
in Dallas, Texas and registered to do business in North Dakota, and [**] (“Company”), a [**] corporation with its principal
office in [**]. Customer or Company may be referred to as “Party” or collectively as “Parties”.

 

BACKGROUND

 

		a.	Customer is to be the owner and operator of a blockchain facility to be located near Jamestown, North
Dakota (the “Facility”).

 

		b.	Customer desires to contract for electric services to Facility at a capacity level of 100 MW.

 

		c.	Company is an electric utility authorized to provide retail electric service in North Dakota, is willing
to render such services to Customer for the Facility in accordance with this Agreement and the Company’s tariff filed with the North
Dakota Public Service Commission (“Commission”), subject to the contingencies stated herein. Capitalized terms used herein
and not otherwise defined are defined in the applicable tariffs.

 

In consideration of the mutual promises contained
below, the parties agree as follows:

 

		1.	Electric Service. The Customer agrees to purchase and receive from the Company electric
energy for the Facility in accordance with the terms of this Agreement, per the rates stated herein, and all terms and conditions and
Rules and Regulations (the “Terms”) established by the Company and filed in its tariff with the North Dakota Public Service
Commission (the “Commission”). The Terms include, but are not limited to, Customer’s payment for electrical energy in
accordance with the Company’s rate schedule as filed with and approved by Commission (or such superseding rate(s) as may be filed
in the future). Where there is a conflict among the foregoing, the terms and conditions of this Agreement shall prevail.

 

		2.	Rates & Terms of Service. The electric service provided for in this Agreement shall
be sold, delivered, purchased, received, and paid for under (a) the terms and conditions of this Agreement, (b) the Company’s Super
Large General Service Rate, Rate Code N620 (the “SLGS Tariff”), which is attached hereto and incorporated herein as Exhibit
A, (c) the Company’s General Rules & Regulations (d) Mandatory Riders, each of which are described in the Company’s
tariffs on file with and approved by the Commission and now in force or as may be modified from time to time by the Commission, and (e)
Voluntary Riders as the same may be negotiated and agreed to by Company and Customer. Customer acknowledges receipt and review of the
foregoing documents. All payments to be made under this Agreement shall be made in United States currency.

 

		3.	Service Location. The Customer shall receive electric service at the Facility to be constructed
in the County of Stutsman, Township of Fried, near the City of Jamestown, State of North Dakota. A map of the planned location is depicted
in Exhibit B attached hereto. The Customer shall consent to service through a Certificate of Public Convenience and Necessity
application to be filed by the Company with the Commission.

 

     

     

    

 

		4.	Extension of Electric Service. The Company shall supply to the Customer at the Facility
interruptible, three-phase electric service, at 41,600 nominal volts. The Customer shall cause the Facility to be designed for an expected
Load Factor of 95% and 95% load controllability (down to 5 MW of Firm Demand Level) with maximum annual control hours in accordance with
Module E as a Load Modifying Resource (“LMR”) of the Midcontinent Independent System Operator (“MISO”) tariff
as the same may be modified from time to time. The Customer acknowledges that the annual control hours under MISO’s LMR tariff is
currently 40 hours (“MISO Curtailments”). Company will extend such electric service to Customer as soon as reasonably practicable
after all conditions precedent to service identified in Section 9 are satisfied. Company makes no guaranties as to the date
the Company will complete extension of such electric service to Customer. Notwithstanding the foregoing, the Customer may terminate this
Agreement if the capacity to serve 100 MW is not available by January 14, 2022.

 

Customer understands that the Company’s
extension of service may be subject to weather conditions, other regulatory approvals, and the availability of electrical equipment, delivery
schedules and other factors. Customer understands it is also subject to load curtailment during system contingencies. Contingencies include,
but are not limited to, a loss of the 345 kV transmission lines or 345/115/41.6 kV transformers.

 

No later than fifteen (15) days prior
to the Facility’s in-service date, Company and Customer shall agree on and execute Standard Operating Procedures to implement curtailment
and other on-going operational matters.

 

		5.	Economic Control. Customer shall be controlled for economic conditions up to 10,000 MWhs
per year (“Economic Curtailments”). Economic Curtailments are mandatory, determined at Company’s sole discretion. Company
shall not curtail Customer’s load solely for the purpose of making non-firm, off-system sales. Company will provide Customer with
as much notice as reasonably practicable of a control event, not less than fifteen (15) minutes prior to the start of Economic Curtailment.
Economic Curtailment duration shall not exceed more than ten (10) hours per 24-hour period. If the Economic Curtailments limit is reached,
Company may curtail the Customer to additional hours of control during extreme events when Locational Marginal Pricing (“LMP”)
exceeds $500/MWh. Additional operational details to be included in the Standard Operating Procedures identified above in Section
4.

 

		6.	Energy Forecast. By October 1 of each year Customer shall provide Company with a forecast
of its expected monthly energy usage for the next planning year (June 1 to May 31) (“Energy Forecast”). By 8:00 a.m. (CT)
of each day Customer shall provide Company with a daily schedule of hourly energy usage that will forecast the hourly energy usage for
the next four (4) days of energy usage (“Daily Forecast”). Customer will use commercially reasonable efforts to ensure that
the Energy Forecast and Daily Forecasts are as accurate as are reasonably possible based on information then known at the time. Customer
will promptly provide updates to its forecasts should Customer reasonably know that any Daily Forecast and monthly usage forecasted will
deviate by more than 5 percent for the Daily Forecast and 20 percent for the Energy Forecast, either up or down.

 

    2

     

    

 

		7.	Penalties for Curtailment Non-Compliance. For the purposes of this Agreement, the following
definitions shall apply:

 

		·	“Curtailment” shall mean a reduction of Customer’s demand called by Company and/or MISO for the purposes
of MISO Curtailments and Economic Curtailments.

 

		·	“Firm Demand Level” shall mean the Demand level to which Customer must curtail upon being notified that
a Curtailment is required.

 

In the event Customer fails to reduce
its load to the Firm Demand Level at any time during a Curtailment period, Customer shall pay a penalty to Company as liquidated damages
for impacts to Company’s cost of service related to Customer’s failure; such penalty shall be calculated as follows:

 

For each instance of reliability non-compliance,
Customer shall pay the greater of (a) any MISO penalty charges incurred by Company pursuant to Modules A and E of the MISO tariff; or
(b) Customer’s actual Demand during the control period in excess of Firm Demand Level which shall be billed at the Company’s
monthly SLGS Tariff rate for the billing period plus actual energy billed at LMP during the period of curtailment in which any instance
of non-compliance occurred. Customer’s Demand during the period of Curtailment which is in excess of Firm Demand Level shall be
the basis of determining MISO penalty charges, which will include the cost to procure any required market products as well as any other
penalty charges incurred by Company. Customer shall not be allowed to use the Demand paid for in any non-compliance event for any future
operations. In addition to the potential penalties above, the Customer is responsible for reimbursing Company for purchasing replacement
capacity at applicable market rates if Customer fails to respond to a MISO emergency and MISO revokes the capacity credit associated with
the non-firm portion of their load. If Customer fails to respond for Economic Curtailments Company reserves the right to revoke SLGS Tariff.

 

		8.	Term. Subject to Section 9. this Agreement shall be effective on the date of its
full execution (“Effective Date”) by the parties, and shall have an Initial Term of five (5) years, with the five (5) year
Initial Term commencing on the date that Company completes extension of electric service to Customer (“Commencement Date”)
and thereafter shall remain in effect from year to year unless terminated by either party by notice given at least one (1) year (365 calendar
days) in advance of termination.

 

    3

     

    

		9.	Conditions Precedent to Service. Company’s obligation to deliver and sell
                                                          electric power, and Customer’s obligation to receive and purchase electric power is contingent on the Customer having made to
                                                          Company the payments set forth in Section 12. Section 13, and Section 15, and the Company securing all final,
                                                          non-appealable, regulatory approvals deemed by Company to be necessary and/or prudent, in its sole discretion, which may include,
                                                          but is not limited to, (a) a Certificate of Public Convenience and Necessity (“CPCN”) from the North Dakota Public
                                                          Service Commission (the “Commission”) authorizing the Company to provide electric service to the Customer at the
                                                          location identified in Section 3; (b) the Commission approving the terms of this Agreement, including the
                                                          specific Rate identified for Customer in Exhibit A hereto calculated for Customer under the SLGS Tariff, Rate Code
                                                          N620, and (c) any local government permits and/or easements. Company shall make reasonable commercial efforts to secure all
                                                          necessary regulatory approvals. Customer shall reasonably cooperate with Company in securing necessary regulatory approvals. In the
                                                          event the Company is unable to secure any necessary regulatory approvals) or in its sole discretion Company believes that such
                                                          approvals will not be forthcoming, shall so notify the Customer in writing and this Agreement shall terminate ten (10) days
                                                          thereafter. Within five (5) business days of such termination the Company shall return any unused portion of Customer’s
                                                          Advance Payments in accordance with Section 12 and 13.

 

		10.	Minimum Payment. Starting at the earlier of the week in which the Customer load exceeds
95MW or February, 1 2022, Customer shall pay Company for its Firm Demand Level and actual metered energy usage in accordance with Exhibit
A, but in no event less than monthly minimum charge based on a billing demand of not less than Firm Demand Level (currently, 5 MW) and
billing energy of not less than 8,500,000 kWh per week (“Minimum Usage”) commensurate with the SLGS Tariff eligibility requirements.
Such required payments are “Minimum Payments”. Minimum Usage will be reduced by the amount of MISO Curtailments, Economic
Curtailments or other interruptions by the Company to the delivery of energy to the Customer’s point of interconnection. The Parties
agree to explore reasonable commercial efforts to enable opportunities in energy markets relative to Customer consumption of Minimum Usage
energy to add value to both parties.

 

			For purposes of compliance with the SLGS Tariff and to preserve the financial benefits to the
                                                                             Company’s other customers, starting at the earlier of the first day of the week in which the Customer load exceeds 95 MW or
                                                                             February 1, 2022, the Customer must maintain a minimum annual load factor billing of 80 percent per calendar year, 700,000 MWh,
                                                                             priced at the annual average billing $/kWh and shall make such payment necessary to Company to achieve this minimum. The annual load
                                                                             factor shall be determined by dividing the Assumed Load by 876,000 MWh. The numerator (“Assumed Load”) is the actual
                                                                             MWhs consumed plus the amount curtailed by the Company for MISO Curtailments, Economic Curtailments or other interruptions caused by
                                                                             the Company to the delivery of energy to the Customer’s point of interconnection (“Load Adjustment”).

 

			If Assumed Load is above a 95 percent annual load factor (based on 876,000 MWh), excess Minimum
                                                                             Payments above 95 percent will be refunded. Customer’s refund shall not exceed the aggregate monthly difference between actual
                                                                             usage-based billing and the corresponding Minimum Payment amounts made during the year

 

		11.	Bill Payments. Customer shall be invoiced weekly, Monday through Sunday. Customer shall
pay all invoices by Electronic Funds Transfer or other means acceptable by the Company within three (3) business days of Customer’s
receipt of the Company’s invoice. Notwithstanding any tariff to the contrary, the date of the Company’s invoice issuance shall
be the invoice due date (“Due Date”). The Customer’s failure to pay Company’s invoice within three (3) business
days of the Due Date shall be a Payment Default on the part of the Customer and subject to Section 17.

 

    4

     

    

 

		12.	Advance Payment – Security for Regulatory Expenses. On June 18, 2021, Customer and
Company executed a Letter of Intent (LOI). Customer, in accordance with the LOI, has delivered to Company an advance cash payment in United
States Dollars to Company of Two Hundred Fifty Thousand Dollars ($250,000.00) (the “Advance Payment-Regulatory”). Company
shall hold the Advance Payment-Regulatory as security for the Company’s recovery of all regulatory costs for filing this Agreement
and for approval under the SLGS tariff and any related regulatory filings, including, but not limited to: Application for Certificate
of Public Convenience and Necessity; and the MISO Transmission Expansion Process.

 

		13.	Advance Payment – Security for Infrastructure Expenses. On June 30, 2021, the Customer
delivered Four Hundred Sixty-Five Thousand Dollars ($465,000.00) to Company in cash for the purpose of Company obtaining long lead time
infrastructure items to meet Customer’s expected in-service date. Within three (3) business days following approval by the Commission
and notice of such approval to Customer, Customer shall deliver an advance cash payment in United States Dollars to Company of Seven Hundred
Thirty-Five Thousand Dollars ($735,000.00) (the “Advance Payment-Capital”). Company shall hold the Advance Payment-Capital,
a total of One Million Two Hundred Thousand Dollars ($1,200,000.00) as security for the Company’s recovery of all Capital Project
expenses necessary to serve the Customer, including Capital Projects commenced before the satisfaction of the conditions precedent provided
in Section 9. For purpose of this Agreement, “Capital Projects” include all project expenses incurred by the
Company reasonably necessary to extend and maintain electric service to the Customer, including, but not limited, to actual internal labor
costs, procurement of equipment, regulatory filing fees, and related expenses.

 

The following terms shall apply to the
Company’s administration of the Advance Payment-Capital and Advance Payment-Regulatory (collectively, “Advance Payments”):

 

(a)              
In the event this Agreement is terminated prior to the end of the Initial Term or Customer ceases it electric service under the
Company’s SLGS Tariff prior to the end of the Initial Term, Company shall return the remaining balance (unspent portion) of the
Advance Payments to Customer, if any, less amounts incurred by Company for the regulatory and infrastructure expenses.

 

(b)              The
Advance Payments shall accrue interest during the Initial Term at the rate paid by the Bank of North Dakota for its smallest six (6)-month
certificate of deposit, as of the first business day of each calendar year. All interest during the Service Period shall accrue to the
benefit of Customer and shall be credited to Customer’s electric account on an annual basis forty-five (45) calendar days after
the end of each Contract Year by direct payment to Customer.

 

(c)             As
used in this Agreement, “Contract Year” means an annual period commencing on the Commencement Date and each annual anniversary
thereof during the Initial Term of this Agreement.

 

    5

     

    

 

		14.	Refund of Advance Payments. Forty-five (45) calendar days after the end of each Contract
Year during the Initial Term, Company shall refund to Customer and apply to electric bills from the Advance Payments described in Sections
12 and 13 an amount of Two Hundred Ninety Thousand Dollars ($290,000.00) annually. The amount so refunded to Customer shall reduce
the balance of the Advance Payments. The Advance Payments are eligible for repayment in the following manner: unspent amounts will be
returned to Customer on or before the later of Facility’s in service date or when the corresponding work order(s) is closed not
to exceed sixty (60) days beyond the Facility-in-service date, whichever is later. Refund of the unspent amounts shall reduce the balance
of the Advance Payments. Spent amounts for the project cost shall be returned to Customer over the life of the Initial Term as described
in this Section. In no event shall the refunded amounts exceed the Advance Payments plus accrued interest described in Section 12.

 

		15.	Payment Security and Cessation of Operations Notice Protection Deposit.

 

(a)              
No later than fifteen (15) days prior to Facility’s in service date, Customer shall deliver to Company a Payment Security
and Cessation of Operations Notice Protection Deposit (the “Security Deposit”) of Seven Million Five Hundred Thousand Dollars
($7,500,000.00) in cash, to be paid by Electronic Funds Transfer. Except as provided herein, the Security Deposit shall be administered
pursuant to the Company’s Rules and Regulations, including Section 1.03 “Deposits, Guarantees and Credit Policy” now
in force or as may be modified from time to time and approved by Commission. Customer shall at all times and throughout the entire Term
of this Agreement maintain a minimum Security Deposit balance of Seven Million Five Hundred Thousand Dollars ($7,500,000.00) (the “Security
Deposit Minimum”), except as defined in Section 16. Within five (5) business days of Company notifying Customer that
the balance of the Security Deposit is less than Security Deposit Minimum, Customer shall deliver to Company the amount necessary to maintain
the Security Deposit Minimum. The Customer’s failure to do so shall be a Payment Default on the part of the Customer.

 

(b)              
In lieu of the cash Security Deposit in Section 15(a), with the prior written consent of the Company the Customer
may provide the Security Deposit in the form of an irrevocable letter of credit acceptable to the Company (“Letter of Credit”).
Customer must present its proposed Letter of Credit to Company no later than forty-five (45) days prior to Facility’s in service
date. A fully executed Letter of Credit, in a form acceptable solely as determined by the Company within ten (10) days prior to the Facility’s
in-service date. Customer must provide Company no less than sixty (60) days advance notice of termination of an approved Letter of Credit
and provide to Company a Replacement Letter of Credit no later than thirty (30) days prior to such termination. Customer may replace a
Letter of Credit with cash deposit as described in part (a) of this Section 15. Customer’s failure to provide such
notice and replacement shall be a Payment Default on the part of the Customer.

 

(c)              
This Section 15 is required for Company’s other customers and Company protection from revenue deficiency for sudden discontinuation
of operations and weekly bill payment.

 

    6

     

    

 

		16.	Refund of Security Deposit. Forty-five (45) calendar days after the end of each Contract
Year during the Initial Term, Company shall refund to Customer or apply to electric bills from the Security Deposit described in Section
15 an amount of Five Hundred Thousand Dollars ($500,000.00) annually. The amount so refunded to Customer shall reduce the balance
of the Security Deposit. The Customer shall at all times maintain a minimum Payment Security Deposit balance. The Security Deposit is
repaid until Five Million Dollars ($5,000,000.00) (“Minimum Balance”) is reached in the account. The Minimum Balance is continued
with no further repayment to Customer except as follows: If the notice in Section 18 is followed and Customer continues
normal operations until termination, Customer is eligible for full refund of the Security Deposit balance at termination of service or
can apply funds to final electric bills.

 

		17.	Payment Default. The Customer’s failure to make all or any part of a payment when
required under this Agreement, or to provide notice required by Section 18 of this Agreement, shall be a Payment Default.
Upon notice of a Payment Default on the part of the Customer, the Company may take all or any of the following actions, notwithstanding
any part of N.D. Admin Code 69-09 or the Company’s Rules and Regulations to the contrary:

 

(a)              
Company may apply all or any part of the Security Deposit to Customer bills which are due, or commensurately draw upon a Letter
of Credit with notice thereof provided to Customer;

 

(b)              
Company may immediately disconnect Customer’s electric service with notice thereof provided to Customer. Customer expressly
waives any right it may have to stay or delay disconnection of service pursuant to N.D. Admin. Code Section 69-02-02-02;

 

(c)              
In the case of the Customer’s failing to provide notice required under Section 18, the Company may retain for
its own account all or any part of the Security Deposit or draw upon a Letter of Credit an amount necessary to ensure that the Company
receives payment from Customer up to what the Company would have received if the Customer had provided one (1) year’s advance notice
of any material reduction in Customer’s electrical consumption or cessation of operations

 

(d)              
Company may terminate this Agreement, upon Ten (10) business days advance written notice to Customer, should default not be cured
by Customer before the tenth day after such notice. Such termination shall not terminate the Company’s right to apply the Payment
Security Deposit to any amount owed by Customer to Company, and to seek any and all other available remedies. Customer may no longer take
service pursuant to the SLGS tariff upon termination of this Agreement; and

 

(e)              
In the event Customer disputes a bill the Customer shall pay such bill under protest. The Company shall refund to the Customer
any part of such payment made under protest if later found by the Company or the Commission to be excessive or incorrectly calculated.

 

    7

     

    

 

		18.	Prior Notice to Company of Material Reduction in Usage or Cessation of Operations. Customer
shall provide Company no less than one (1) year (365 calendar days) prior written notice of an expected Material Reduction in electric
usage and/or cessation of Customer’s business operations. Material Reduction is defined as below 50 percent load factor, 36,600,000
kWh per month for three consecutive months that has not already been reported in the Customer’s annual Forecast to the Company.
Material Reduction will be adjusted by the Company for MISO Curtailments, Economic Curtailments, or other interruptions by the Company
to the delivery of energy to the Customer’s point of interconnection. If notice to cessation of operations is given by the Customer,
this Agreement shall terminate at the end of the notice period and Customer shall become ineligible to receive service under the SLGS
Tariff.

 

		19.	Interruptible Service. Customer agrees and acknowledges that Customer’s service is
subject to interruption, and that the rate(s) offered customer in Exhibit A are expressly based and conditioned on Customer’s
taking interruptible service through MISO’s schedule E as an LMR and Economic Curtailments. Customer will be responsible for backup
service during any period of interruptions. The Company will solely determine and communicate to Customer the interruptions. The Company
will not be liable for any loss or damage to the Customer due to interruptions.

 

		20.	Customer Equipment. The Company may require that the Customer make changes to the Customer’s
system at the Customer’s expense or pay the costs of Company’s installation of nonstandard Distribution Facilities, where
the Company reasonably determines that such changes or nonstandard installations are necessary to correct operating characteristics
of the Customer’s equipment or system(s) that interfere with satisfactory service to other customers of the Company. This includes,
but is not limited to, equipment necessary to mitigate harmonic distortion affecting the load of customers near Customer’s facility.

 

		21.	Limitation of Liability. Notwithstanding any other provision under North Dakota law to the
contrary, Customer agrees that the Company shall not be liable for any losses, damages, or expenses (including, but not limited to, injury
to persons, including death, or property damages) incurred by any persons for any delay, interruption, curtailment, suspension, disturbance
or variability in its provision of electric service (including, but not limited to, any occurrence of voltage fluctuations or power surges)
due to acts of God, or to any other cause whatsoever except the Company’s own gross negligence or willful misconduct. The Company
will not be liable for incidental or consequential damages, including, but not limited to, loss of profits resulting from the use of service
or any delay, interruption, curtailment, suspension, disturbance, or variability of electric service. The Company shall have the right
to suspend the delivery of electric power hereunder for a temporary amount of time for the purpose of making repairs or improvements of
its system.

 

		22.	Assignment. Neither Company nor Customer shall assign its rights nor delegate its duties
under this Agreement, or any part of such rights or duties, without the written consent of the other Party. Such consent shall not unreasonably
be withheld, delayed, or conditioned. This Agreement shall inure to and bind the parties’ permitted successors and assigns.

 

    8

     

    

 

		23.	Waiver. Any waiver at any time by either party of its rights with respect to a default under
this Agreement, or with respect to any other matters arising in connection with this Agreement, shall be in writing and shall not be deemed
a waiver with respect to any subsequent default or other matter.

 

		24.	Authority. Company and Customer each represent for itself that it has the necessary authority
to enter this Agreement and that its signatory representative below is duly authorized to act on its behalf.

 

		25.	Notice. Any notice provided for or concerning this Agreement shall be in writing and may
be delivered either by (i) U.S. Certified mail with postage prepaid and return receipt requested, or (ii) recognized nationwide courier
service with delivery receipt requested, in either case to be delivered to the following address (or to such other U.S. address as may
be specified via Notice provided by Customer or Company, as applicable, to the other in accordance with the requirements of this Section
25):

 

	 	
    TO COMPANY

    [**]

    Attn: V.P. Customer Service

    cc: Legal Department
	
    TO CUSTOMER

    APLD Hosting LLC

    3811 Turtle Creek Blvd, Suite 2100

    Dallas, TX 75219

    Attn: Chief Financial Officer

	 	[Tel: [**] - for use in connection with courier deliveries]	[Tel: (214) 427-1706 - for use in connection with courier deliveries]

 

Any Notice given in accordance with
this Section will (i) if delivered during the recipient’s normal business hours on any given business day, be deemed
received by the designated recipient on such date, and (ii) if not delivered during the recipients’ normal business hours on any
given business day, be deemed received by the designated recipient at the start of the recipient’s normal business hours on the
next business day after such delivery.

 

		26.	Invalid Provisions. The invalidity of any portion of this Agreement will not and shall not
be deemed to affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the
parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties
subsequent to the expungement of the invalid provision.

 

		27.	Paragraph Headings. The titles to the paragraphs of this Agreement are solely for the convenience
of the parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this Agreement.

 

		28.	Governing Law. This Agreement shall in all respects be governed by, and construed in accordance
with, the law of the State of North Dakota, without regard to principles of conflicts of laws thereunder. Litigation of disputes regarding
this Agreement shall be heard upon complaint, in the first instance, before the Commission. If the Commission declines jurisdiction over
any given claim, that claim can then be heard before a court of competent jurisdiction located within the State of North Dakota. THE PARTIES
HEREBY EXPRESSLY WAIVE THEIR RIGHT TO A TRIAL BY JURY REGARDING ANY AND ALL DISPUTES REGARDING THIS AGREEMENT.

 

		29.	Entire Agreement. All previous communications between the parties hereto, either verbal
or written, with reference to the subject matter of this Agreement are hereby abrogated, and this Agreement, as duly accepted and approved,
constitutes the sole agreement related to the sale and delivery of electric capacity and energy by Company to Customer. No modifications
of this Agreement shall be binding upon the parties or either of them unless such modifications shall be in writing, duly accepted in
writing by Customer and executed by an officer of the Company and have received any necessary regulatory approvals.

 

    9

     

    

 

IN WITNESS WHEREOF, the parties execute this Agreement
effective as of   August 4 , 2021.

 

	Customer	 	[**]
	 	 	 	 	 
	/s/ David Rench	 	/s/
	By:	David Rench	 	By:	 
	Its:	CFO	 	Its:	 

 

    10

     

    

 

Exhibit A – Proposed Super
Large General Service Tariff- APLD Hosting LLC.

 

    11

     

    

 

Exhibit B

 

    12Exhibit 10.7

 

SUBLEASE AGREEMENT

 

This Sublease Agreement (this “Sublease”)
is executed as of May 19, 2021, between ENCAP INVESTMENTS L.P., a Delaware limited partnership (“Sublandlord”)
and APPLIED BLOCKCHAIN, INC., a Nevada corporation (“Subtenant”).

 

RECITALS

 

Sublandlord has the right to possession of Suite
2100 consisting of 11,199 rentable square feet of space (the “Premises”) in the office building located at 3811
Turtle Creek Blvd., Dallas, Texas 75219, commonly known as Turtle Creek Center (the “Building”), under the Office
Lease dated January 24, 1997 between The Utah State Retirement Investment Fund, an independent agency of the State of Utah (“Original
Landlord”) as “Landlord”, and Encap Investments L.C. (“Original Tenant”) as “Tenant”
(such lease, as amended by First Amendment to Office Lease dated as of April 4, 2000, Second Amendment to Office Lease dated as of the
day of August, 2003 (sic), Third Amendment to Office Lease dated as of November 13, 2006, Fourth Amendment to Office Lease dated as of
February 13, 2009, Fifth Amendment to Office Lease dated as of April ___, 2011 (sic), and Sixth Amendment to Office Lease dated March
17, 2016 (“Sixth Amendment”), is herein referred to as the “Base Lease”). EOS Properties
at Turtle Creek, LLC, a Delaware limited liability company (“Landlord”), is the successor-in-interest to Original
Landlord with respect to the Base Lease and Subtenant is the successor-in-interest to Original Tenant with respect to the Base Lease.
Capitalized terms used herein but not defined shall be given the meanings assigned to them in the Base Lease.

 

Sublandlord desires to sublease the portion of
the Premises described in Exhibit A hereto consisting of 10,699 rentable square (the “Sublease Premises”) to Subtenant, and
Subtenant desires to sublease the Sublease Premises, subject to the terms and conditions contained herein.

 

AGREEMENTS

 

In consideration of the premises and other good
and valuable consideration, Sublandlord and Subtenant agree as follows:

 

1.                 
Sublease of Sublease Premises; Sublease Term. Sublandlord hereby subleases to Subtenant the Sublease Premises. Sublandlord
shall tender possession of the Sublease Premises to Subtenant on the date that is one business day following the later to occur of (a)
the date this Sublease is fully executed, and (b) the date Landlord provides written consent to this Sublease (such later date being the
 “Sublease Commencement Date”). The term for the Sublease shall commence on the Sublease Commencement Date and
continue until October 31, 2026, subject to adjustment and earlier termination as provided in this Sublease (the “Sublease
Term”). Within ten days following Sublandlord’s request therefor, Subtenant shall execute an agreement substantially
in the form of Exhibit B hereto confirming the Sublease Commencement Date and the dates that Base Rent (defined below) shall increase
during the Sublease Term.

 

    1

     

    

 

2.                 
Rent.

 

2.1             
 Base Rent. Subject to the abatement of Base Rent provided below, Subtenant shall pay to Sublandlord the following
amounts for the following periods of time (“Base Rent”):

 

	Time Period	 	Annual Base Rent per rentable 
 square foot in the Sublease 
 Premises	 	 	Monthly 
 Base Rent	 
	Sublease Months 1 - 13	 	$	29.00	 	 	$	25.855.92	*
	Sublease Months 14 - 25	 	$	29.75	 	 	$	26,524.60	 
	Sublease Months 26 - 37	 	$	30.50	 	 	$	27,193.29	 
	Sublease Months 38 - 49	 	$	31.25	 	 	$	27,861.98	 
	Sublease Months 50 - 61	 	$	32.00	 	 	$	28,530.67	 
	Sublease Month 62 - October 31, 2026	 	$	32.75	 	 	$	29,199.35	 

 

*Notwithstanding the foregoing, provided that Subtenant is
not in default of this Sublease beyond all applicable notice and cure periods, Base Rent shall be abated during (a) any portion of the
Sublease Term that is prior to June 1, 2021 and (b) the first 30 days of the Sublease Term that occurs on or after June 1, 2021 of the
Sublease Term, e.g., if the Sublease Commencement Date is June 21, 2021, Base Rent shall be abated through July 20, 2021. Commencing with
the first day after the end of the abatement period referred to above, Tenant shall make Base Rent payments for any remaining partial
calendar month and on the first day of the first full calendar month thereafter shall make Base Rent payments as otherwise provided in
this Sublease. Notwithstanding such abatement of Base Rent (c) all other sums due under this Sublease, including Additional Rent, after
hours HVAC, charges, etc. shall be payable as provided in this Sublease, and (d) any increases in Base Rent set forth in this Sublease
shall occur on the dates scheduled therefor. The first monthly installment of Base Rent (with respect to the first full calendar month
of the Lease Term for which Base Rent is due and payable without abatement) is due upon execution of this Sublease by Tenant; thereafter,
Base Rent shall be payable on the first day of each calendar month.

 

As used herein, the term “Sublease Month”
means each calendar month during the Sublease Term (and if the Sublease Commencement Date does not occur on the first day of a calendar
month, the period from the Sublease Commencement Date to the first day of the next calendar month shall be included in the first Sublease
Month for purposes of determining the duration of the Sublease Term and the monthly Base Rent rate applicable for such partial month).

 

    2

     

    

 

2.2            Additional
Rent. Subtenant further agrees to pay Subtenant’s Share (defined below) of the Operating Expenses, Subtenant’s
Share of Electrical Cost and Subtenant’s Share of all other sums required to be paid by Sublandlord in its capacity as tenant
under the Base Lease (“Additional Rent”) for the period between the Sublease Commencement Date and the
last day of the Sublease Term. Such Additional Rent shall be payable on the first day of each month based upon a reasonable estimate
provided to Subtenant by Sublandlord of the other sums payable by Sublandlord for that month under the Base Lease. Within 15 days
after the actual amount of other sums due under the Base Lease is known by Sublandlord, Sublandlord shall notify Subtenant thereof
and of Subtenant’s portion thereof. If Subtenant has overpaid rent for the period in question, such overpayment shall be
credited against the next installments of rent due or returned by Sublandlord to Subtenant, or if Subtenant has underpaid rent, then
Subtenant shall pay the amount of such underpayment to Sublandlord within five days after the receipt of such notice. Payment of
Base Rent and Additional Rent shall be made to Sublandlord at its address written below or at such other place Sublandlord may
designate in writing, without any offset or deduction whatsoever. Subtenant agrees to pay directly to Landlord (or, if Landlord is
unwilling to bill and receive payments directly from Subtenant, to Sublandlord) any excess electricity usage charges and expenses
allocable to Subtenant’s usage thereof in the Sublease Premises as well as any other charges allocable to Subtenant’s
usage thereof in the Sublease Premises all in accordance with the terms of the Base Lease. Subtenant and Sublandlord are
knowledgeable and experienced in commercial transactions and agree that, subject to the terms of Base Lease, the provisions of this
Sublease for determining charges, amounts and Additional Rent payable by Subtenant are commercially reasonable and valid even though
such methods may not state a precise mathematical formula for determining such charges. As used herein,
 “Subtenant’s Share” means, for the purposes of calculating the portion of Operating Expenses and
Electrical Cost required to be paid by Subtenant under this Sublease, the percentage obtained by dividing (a) the number of rentable
square feet in the Sublease Premises as stated above by (b) the number of rentable square feet in the Premises (i.e., 11,199
rentable square feet). Based on the current rentable square feet in the Sublease Premises and the Premises as of the date of this
Sublease, Subtenant’s Share equals 95.54%. The Base Operating Year for purposes of calculating Subtenant’s Share of
Operating Expenses required to be paid by Subtenant under this Sublease is 2021. All Base Rent, Additional Rent, and all other sums
payable by Subtenant to Sublandlord for the Sublease Premises under this Sublease shall be referred to herein collectively as
 “Rent.”

 

3.                 
Acceptance. Subtenant acknowledges that it has inspected the Sublease Premises demised hereunder, and is fully satisfied
with their condition and accepts the same, “AS IS.” Sublandlord has made no representation or warranties of any nature whatsoever
with regard to the Sublease Premises, and Sublandlord shall have no obligation or duty with regard to preparation of the Sublease Premises
for occupancy by Subtenant. Sublandlord shall not be required to perform any demolition work or tenant finish-work therein or to provide
any allowances therefor. Sublandlord and Subtenant stipulate that the number of rentable square feet in the Sublease Premises set forth
above in this Sublease is correct. Any alterations, additions or improvements to the Sublease Premises shall be made in accordance with
the provisions of the Base Lease, including but not limited to Section 9.01 thereof (entitled “Alterations”) and only with
Sublandlord’s and Landlord’s (to the extent provided in the Base Lease) prior written approval of the plans and specifications
thereunder.

 

    3

     

    

 

4.                  Base
Lease Incorporated. The provisions of the Base Lease are, except as otherwise herein specifically provided, hereby
incorporated in this Sublease with the same effect as if entirely rewritten herein, and shall fix the rights and obligations of the
parties hereto with respect to the Sublease Premises with the same effect as if Sublandlord and Subtenant were, respectively, the
landlord and tenant named in the Base Lease. Subtenant hereby covenants to perform the covenants and undertakings of Sublandlord as
tenant under the Base Lease to the extent the same are applicable to the Sublease Premises during the term of this Sublease, and
agrees not to do or permit to be done any act which shall result in a violation of any of the terms and conditions of said Base
Lease. Except as otherwise specifically provided herein, Subtenant is to have the benefit of the covenants and undertakings of
Landlord in the Base Lease to the extent the same are applicable to the Sublease Premises during the term of this Sublease. It is
expressly understood and agreed, however, that Sublandlord is not in the position to render any of the services or to perform any of
the obligations required of Landlord by the terms of this Sublease, and that performance by Sublandlord of its obligations hereunder
are conditioned upon due performance by Landlord of its corresponding obligations under the Base Lease. It is further understood and
agreed, therefore, that notwithstanding anything to the contrary contained in this Sublease, Sublandlord shall not be in default
under this Sublease for failure to render such services or perform such obligations required by Sublandlord by the terms of this
Sublease that are the responsibility of the Landlord under the Base Lease, but Sublandlord agrees to take all responsible measures
to insure that Landlord performs said obligations. The term “reasonable measures” shall not include legal action against
Landlord for its failure to so perform unless Subtenant agrees to pay all costs and expenses in connection therewith.

 

5.                Exclusions
from Base Lease. Notwithstanding anything in this Sublease to the contrary, Subtenant shall have no rights or benefits
under, and Sublandlord shall have no obligation to Subtenant pursuant to, the Excluded Provisions of the Base Lease. As used herein,
the term “Excluded Provisions” means the following, except to the extent such provisions are contemplated
by or addressed in this Sublease: (a) any provisions that are expressly superseded by or in direct conflict with the provisions of
this Sublease; (b) any right on the part of Sublandlord, as Tenant under the Base Lease, to assign the Base Lease or sublet any
portion of the Premises other than the Sublease Premises; (c) any right of Sublandlord, as Tenant under the Base Lease, to make
alterations and additions to its Premises; (d) any provision of the Base Lease allocating reserved or unreserved parking to
Sublandlord, (e) any right on the part of Sublandlord, as Tenant under the Base Lease, to extend the term of the Base Lease; (f) any
right on the part of Sublandlord, as Tenant under the Base Lease, to expand the Premises; (g) any right of contraction, cancellation
or termination on the part of Sublandlord under the Base Lease, including any right arising from any provisions of the Base Lease
relating to casualty or condemnation; (h) any right of first refusal, right of first opportunity, or similar options held by
Sublandlord under the Base Lease; (i) any signage or naming rights granted to Sublandlord under the Base Lease; (j) any right on the
part of Sublandlord, as Tenant under the Base Lease, to withhold or abate Rent (as defined in the Base Lease) or any other charges
or amounts payable by Sublandlord under the Base Lease; (k) any right on the part of Sublandlord, as Tenant under the Base Lease, to
avail itself of any arbitration, mediation or other dispute resolution procedures; (1) any provision of the Base Lease that
expressly relates solely to any portion of the Premises other than the Sublease Premises; (m) any provisions of the Base Lease
relating to the payment of rent or additional rent by Sublandlord; (n) any provisions of the Base Lease constituting representations
and warranties made by Sublandlord; and (o) any provisions of the Base Lease constituting or containing indemnifications of any
persons by Sublandlord in connection with loss or damage occurring outside the Sublease Premises (provided that the foregoing shall
not limit any of the indemnifications made hereunder by Subtenant for the benefit of Sublandlord, nor any indemnifications made in
any other agreement by Subtenant for the benefit of Landlord).

 

    4

     

    

 

6.                 
Subordinate to Base Lease. This Sublease is subject and subordinate in all respects to said Base Lease and Subtenant
acknowledges that it has received a copy of said Base Lease.

 

7.               
Subtenant’s Covenants/Default. Subtenant covenants and agrees that Subtenant will not do anything in connection
with its use and enjoyment of the Sublease Premises that would constitute a Base Lease Default (as hereinafter defined) or omit to do
anything that Subtenant is obligated to do under the terms of this Sublease and that would constitute a Base Lease Default. A “Base
Lease Default” shall be any act, omission or circumstance with respect to Subtenant’s use and enjoyment of the Sublease
Premises that constitutes, after notice and the expiration of any cure periods set forth in the Base Lease, a Default under the Base Lease.
A Base Lease Default by Subtenant shall be a default under this Sublease without any additional notice and cure period being required.
hi addition, it shall be a default under this Sublease if Subtenant fails to perform any of its obligations under this Sublease, and does
not cure any such failure within a period of time that is: (a) the same period of time afforded to Sublandlord under the Base Lease to
cure a failure to pay Rent or a monetary default by Subtenant hereunder, and (b) a period of time that is 10 days less than the period
of time afforded to Sublandlord under the Base Lease to cure any other non-monetary default by Subtenant hereunder. Sublandlord shall
have, as against Subtenant, all the rights Landlord would have against Sublandlord as Tenant under the Base Lease if a Default occurred
under the Base Lease and Subtenant shall pay to Sublandlord all amounts, costs, losses and/or expenses incurred, abated or foregone by
Sublandlord (including court costs and reasonable attorneys’ fees and expenses in securing this Sublease, including all commissions,
allowances, and if this Sublease or any amendment hereto contains any abated Rent granted by Sublandlord as an inducement or concession
to secure this Sublease or amendment hereto, the amount of all Rent so abated (and such abated amounts shall be payable immediately by
Subtenant to Sublandlord, without any obligation by Sublandlord to provide written notice thereof to Subtenant, and Subtenant’s
right to any abated Rent accruing following such Default shall immediately terminate), in each case, multiplied by a fraction, the numerator
of which is the number of full calendar months remaining in the Sublease Term as of the date of the Default and the denominator of which
is the number of months in the Sublease Term. Subtenant agrees, at its sole cost and expense, to comply with all federal, state and local
laws, ordinances, building codes and standards, rules and regulations, all court orders, governmental directives, and governmental orders
and all interpretations of the foregoing (each a “Law” and collectively, “Laws”) in
connection with its use and enjoyment of the Sublease Premises. Interest at the lower of (1) the highest interest rate permitted by Law,
or (2) the interest rate set forth in the Base Lease effective upon a default by Sublandlord as Tenant thereunder plus two percent, may
be assessed against any past due sums not paid by Subtenant when due from the original due date thereof until paid.

 

8.                  Use.
Subtenant will use and occupy the Sublease Premises solely for general office purposes and in accordance with the use permitted
under the Base Lease. Without the prior written consent of Sublandlord and Landlord (to the extent provided in the Base Lease), the
Sublease Premises will not be used for any other purposes and will not be used for bitcoin mining or for crypto currency mining.

 

    5

     

    

 

9.                 
Security Deposit. Contemporaneously with the execution of this Sublease, Subtenant shall pay to Sublandlord a security
deposit in the amount of $29,199.35 (the “Security Deposit”), which shall be held by Sublandlord to secure Subtenant’s
performance of its obligations under this Sublease. The Security Deposit is not an advance payment of Rent or a measure or limit of Sublandlord’s
damages upon Subtenant’s default of this Sublease beyond all applicable notice and cure periods. Sublandlord may, from time to time
following Subtenant’s default of this Sublease beyond all applicable notice and cure periods and without prejudice to any other
remedy, use all or a part of the Security Deposit to perform any obligation Subtenant fails to perform hereunder. Following any such application
of the Security Deposit, Subtenant shall pay to Sublandlord on demand the amount so applied in order to restore the Security Deposit to
its original amount. Provided that Subtenant has performed all of its obligations hereunder, Sublandlord shall, within 60 days after the
expiration of the Sublease Term and Subtenant’s sun-ender of the Sublease Premises in compliance with the provisions of this Sublease,
return to Subtenant the portion of the Security Deposit which was not applied to satisfy Subtenant’s obligations. The Security Deposit
may be commingled with other funds, and no interest shall be paid thereon. If Sublandlord transfers its interest in the Sublease Premises
and the transferee assumes Sublandlord’s obligations under this Sublease, then Sublandlord may assign the Security Deposit to the
transferee and Sublandlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations
of Sublandlord and Subtenant under this Section 9 are subject to any other requirements and conditions imposed by laws applicable to the
Security Deposit.

 

10.             
Sublandlord Rights.

 

10.1         
Retained Premises. Sublandlord will be retaining the portion of the Premises that does not include the Sublease Premises
(“Retained Premises”) and access to the Retained Premises is only available from the common areas of the Building
through the Sublease Premises. Sublandlord shall, at all times, have access to and through the Sublease Premises to access the Retained
Premises and access to, and use of, the common areas within the Sublease Premises.

 

10.2         
Cancellation Option, Sublandlord covenants to, and agrees that, Sublandlord will not exercise the Cancellation Option
set forth in Exhibit E to the Sixth Amendment during the Sublease Term so long as no Base Lease Default and no default by Subtenant of
this Sublease (beyond all applicable notice and cure periods) exists. The foregoing shall not, as between Landlord and Sublandlord, be
construed as a waiver by Sublandlord of the Cancellation Option.

 

11.              Holdover.
Subtenant shall promptly vacate the Sublease Premises upon expiration or termination of this Sublease and surrender the Sublease
Premises in the condition required under the Base Lease. Any holding over by Subtenant beyond the expiration date of this Sublease
shall be deemed unlawful unless expressly consented to by Sublandlord in writing, and Sublandlord shall be entitled to any and all
remedies in law or in equity by reason of such unlawful holding over by Subtenant. Subtenant agrees to indemnify, defend and save
Sublandlord harmless against and from any and all loss, cost, expense and liability incurred by Sublandlord under the Base Lease by
reason of any such holding over.

 

    6

     

    

 

12.             
Indemnification; Sublandlord Liability.

 

12.1         
Subtenant shall defend, indemnify, and hold harmless Landlord and its representatives and agents from and against all claims, demands,
liabilities, causes of action, suits, judgments, damages, and expenses (including reasonable attorneys’ fees) arising from any injury
to or death of any person or the damage to or theft, destruction, loss, or loss of use of, any property or inconvenience (a “Loss”)
(a) occurring in or on the Building (other than within the Premises) to the extent caused by the negligence or willful misconduct of any
Subtenant Party or arising out of or in any way connected with this Sublease, (b) occurring in the Premises, or (c) arising out of the
installation, operation, maintenance, repair or removal of any property of any Subtenant Party located in or about the Building or the
land on which the Building is located. It being agreed that clauses (b) and (c) of this indemnity are intended to indemnify Sublandlord
and its agents against the consequences of their own negligence or fault, even when Sublandlord or its agents are jointly, comparatively,
contributively, or concurrently negligent with Subtenant, and even though any such claim, cause of action or suit is based upon or alleged
to be based upon the strict liability of Sublandlord or its agents; however, such indemnity shall not apply to the sole or gross negligence
or willful misconduct of Sublandlord and its agents. As used herein, “Subtenant Party” means any of the
following persons: Subtenant; any assignees claiming by, through or under Subtenant; any subtenants claiming by, through or under Subtenant;
and any of their respective agents, contractors, officers, employees, licensees, guests and invitees.

 

12.2         
Sublandlord is not liable for any damage to personal property owned or possessed by Subtenant or any Subtenant Party unless the
damage is caused by Sublandlord’s own gross negligence or willful misconduct or that of its employees or agents. Subtenant is responsible
for insuring personal property against all risks. Sublandlord is not liable for personal injury suffered by Subtenant or any Subtenant
Party, unless the injury is caused by Sublandlord’s own gross negligence. Subtenant will notify Sublandlord of any unsafe or hazardous
condition.

 

13.             
Assignment or Subletting. Subtenant shall not, without the prior written consent of Landlord and Sublandlord, assign
the term hereby demised, nor suffer or permit it to be assigned by operation of law or otherwise, nor shall the Subtenant, without the
prior written consent of Landlord and Sublandlord, let or sublet or permit the said Sublease Premises or any part thereof to be used by
others for hire.

 

14.              Insurance.
Subtenant shall maintain insurance as required under the Base Lease in the amounts stated in the Base Lease, with Sublandlord named
as an additional insured. Subtenant shall furnish to Sublandlord certificates of such insurance and other evidence satisfactory to
Sublandlord of the maintenance of all insurance coverage required hereunder. Subtenant acknowledges that Sublandlord shall not carry
insurance of any kind on any furniture, fixtures, equipment or other personal property of Subtenant (including the Existing
Furniture, defined below) located in the Sublease Premises or Building, or on any alterations installed in the Premises or Building
by or on behalf of Subtenant in accordance with the provisions of this Sublease and the Base Lease, and that Sublandlord shall not
be obligated to repair any damage thereto or replace same.

 

    7

     

    

 

15.             
Existing Furniture. Subtenant shall be permitted to use Sublandlord’s right, title and interest to the personal
property, fixtures and equipment located in the Sublease Premises as described on Exhibit C hereto (the “Existing Furniture”)
during the Sublease Term, subject to the following conditions: (a) Subtenant shall, at its sole cost and expense, maintain all Existing
Furniture in good operating order and condition, including making all needed repairs and replacements to the Existing Furniture, ordinary
wear and tear excepted; (b) Subtenant shall, at its sole cost and expense, maintain insurance covering the Existing Furniture as required
by Section 14 of this Sublease, (c) Subtenant shall not, without Sublandlord’s prior written consent, remove any of the Existing
Furniture from the Sublease Premises (except for the removal of any item temporarily for maintenance and repair or, if removed permanently,
such item is worn out or obsolete and is replaced, at Subtenant’s expense, by an item of equal or better suitability and value),
and

 

(d) Subtenant shall be liable for all
taxes levied or assessed against the Existing Furniture. If any Existing Furniture breaks and cannot be repaired, Subtenant shall give
Sublandlord written notice thereof, and Sublandlord may, at its option, either give Subtenant such equipment to trade in on new equipment
(in which case, the new equipment purchased by Subtenant shall belong to Subtenant), or may remove the broken equipment from the Sublease
Premises at Subtenant’s expense. Subtenant accepts the Existing Furniture in its current condition on an “AS-IS” basis
with all faults, WITHOUT ANY WARRANTIES OF WHATSOEVER NATURE, EXPRESS OR IMPLIED, IT BEING THE INTENTION OF SUBLANDLORD AND SUBTENANT
EXPRESSLY TO NEGATE AND EXCLUDE ALL WARRANTIES, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
ANY PARTICULAR PURPOSE, WARRANTIES CREATED BY ANY AFFIRMATION OF FACT OR PROMISE OR BY ANY DESCRIPTION OF THE PROPERTY CONVEYED HEREUNDER,
OR BY ANY SAMPLE OR MODEL THEREOF, AND ALL OTHER WARRANTIES WHATSOEVER CONTAINED IN OR CREATED BY ANY LAW. Provided no default (beyond
all applicable notice and cure periods) by Subtenant of this Sublease has occurred, at the natural expiration of this Sublease (but not
if this Sublease is terminated earlier for any reason), Sublandlord shall convey Sublandlord’s interest in the Existing Furniture
to Subtenant for the sum of $2,000.00, shall execute a bill of sale and assignment evidencing such sale to Subtenant, and Subtenant shall
be solely responsible for removing the Existing Furniture from the Sublease Premises in conformance with the Sublease and the Base Lease.

 

16.              Parking.
During the Sublease Term, Subtenant shall be provided a total of I7 parking spaces consisting of the following: (a) 1 Reserved
Executive Parking Space in the Executive Garage, (b) 6 Non-Reserved Parking Spaces in the Building’s adjacent parking garage
and (c) 10 Executive Non-Reserved Parking Spaces in the Building’s adjacent garage. Subtenant’s Non-Reserved Parking
Spaces and Executive Non-Reserved Parking Spaces shall be on a non-exclusive, unassigned, first-come, first-served basis. Regardless
of whether Subtenant elects to use such parking spaces, Subtenant shall pay to Sublandlord, contemporaneously with the payment of
Base Rent, parking rent (plus all applicable taxes) during the Sublease Term equal to (1) $200.00 per month (plus all applicable
taxes) for the Reserved Executive Parking Space, (2) $50.00 per month (plus all applicable taxes) per Non-Reserved Parking Space and
(3) $125 per month (plus all applicable taxes) per Executive Non-Reserved Parking Space.

 

    8

     

    

 

All motor
vehicles (including all contents thereof) shall be parked in the Executive Garage and the Building’s adjacent garage at the
sole risk of Subtenant and each vehicle owner/operator, it being expressly agreed and understood Sublandlord has no duty to insure
any of said motor vehicles (including the contents thereof), and Sublandlord is not responsible for the protection and sccurity of
such vehicles. If, for any reason, Sublandlord is unable to provide all or any portion of the parking spaces to which Subtenant is
entitled hereunder, then Subtenant’s obligation to pay for such parking spaces shall be abated for so long as Subtenant does
not have the use thereof; this abatement shall be in full settlement of all claims that Subtenant might otherwise have against
Sublandlord because of Sublandlord’s failure or inability to provide Subtenant with such parking spaces. Sublandlord shall not
be responsible for enforcing Subtenant’s parking rights against any third parties. NOTWITHSTANDING ANYTHING TO THE CONTRARY
CONTAINED IN THIS SUBLEASE, SUBLANDLORD SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY PROPERTY DAMAGE OR LOSS WHICH MIGHT OCCUR IN THE
EXECUTIVE GARAGE OR THE BUILDING’S ADJACENT PARKING GARAGE AS A RESULT OF OR IN CONNECTION WITH THE PARKING OF MOTOR VEHICLES
IN ANY OF THE PARKING SPACES.

 

17.             
Signage. Sublandlord shall request that Landlord include Subtenant’s name in any Building directory. In addition,
subject to Landlord’s (to the extent required by the Base Lease) and Sublandlord’s prior written approval as to the location,
design, size, color, material composition and plans and specifications therefor, Subtenant may, for the Sublease Term and at Subtenant’s
sole expense, install Subtenant’s name and logo at the entrance to the Sublease Premises. Prior to the expiration or earlier termination
of the Sublease Term, Subtenant shall remove all such signage, repair any damage caused by the installation, maintenance or removal of
such signage, and restore the area where such signage was located to its condition prior to the installation of such signage. If Subtenant
fails to do so, Sublandlord may perform such removal, repair and restoration work at Subtenant’s cost and expense, plus an administrative
fee of 10% of such costs, and Subtenant shall pay Sublandlord for such costs within 30 days following Sublandlord’s delivery of
an invoice therefor. Except as provided in this Section 17, no sign, advertisement or notice shall be inscribed, painted, affixed or displayed
on any part of the outside or the inside of the Building so that it. is visible from the exterior of the Sublease Premises, except as
otherwise provided herein or with Sublandlord’s prior written consent. If any such sign, advertisement or notice is exhibited without
first obtaining Sublandlord’s written consent, Sublandlord (and Landlord, to the extent it has such right under the Base Lease)
shall have the right to remove the same, and Subtenant shall be liable for any and all costs, liabilities and expenses incurred by said
removal.

 

18.             
Landlord’s Consent. This Sublease is subject to and conditioned upon the written consent of Landlord to this
subletting.

 

    9

     

    

 

19.             
 Notices; No Electronic Records. All notices and other communications given pursuant to this Sublease shall be in
writing and shall be (a) mailed by first class, United States Mail, postage prepaid, certified, with return receipt requested, and addressed
to the parties hereto at the address listed below, (b) hand-delivered to the intended addressee, or (c) sent by a nationally recognized
overnight courier service. All notices shall be effective upon delivery to the address of the addressee (even if such addressee refuses
delivery thereof). Sublandlord and Subtenant hereby agree not to conduct the transactions or communications contemplated by this Sublease
by electronic means, except by electronic signatures as specifically set forth in Section 27; nor shall the use of the phrase “in
writing” or the word “written” be construed to include electronic communications except as specifically set forth in
this Section and other electronic signatures as specifically set forth in Section 2714. The parties hereto may change their addresses
by giving notice thereof to the other in conformity with this provision.

 

	
    Sublandlord:
	EnCap Investments L.P. 

1100 Louisiana, Suite 4900 

Houston, Texas 77002 

Attn: Craig Friou
	Subtenant:	Applied Blockchain, Inc.

3811 Turtle Creek Blvd., Suite 2100

Dallas, Texas 75219

Attention: David Rench

 

20.             
Brokerage. Neither Sublandlord nor Subtenant has dealt with any broker or agent in connection with the negotiation
or execution of this Sublease other than Jones Lang LaSalle Brokerage, Inc. a Texas corporation, whose commission shall be paid by Sublandlord
pursuant to a separate written agreement. Subtenant and Sublandlord shall each indemnify the other against all costs, expenses, attorneys’
fees, liens and other liability for commissions or other compensation claimed by any other broker or agent claiming the same by, through,
or under the indemnifying party.

 

21.             
Binding Effect; Governing Law. Except as modified hereby, the Base Lease shall remain in full effect and this Sublease
shall be binding upon Sublandlord and Subtenant and their respective successors and assigns. If any inconsistency exists or arises between
the terms of this Sublease and the terms of the Base Lease, the terms of this Sublease shall prevail. This Sublease may not be amended
except by instrument in writing signed by Sublandlord and Subtenant. No provision of this Sublease shall be deemed to have been waived
by Sublandlord unless such waiver is in writing signed by Sublandlord, and no custom or practice which may evolve between the parties
in the administration of the terms hereof shall waive or diminish the right of Sublandlord to insist upon the performance by Subtenant
in strict accordance with the terms hereof. This Sublease shall be governed by the laws of the State in which the Premises are located.

 

    10

     

    

 

22.             
 Invalidity Clause. If any provision of this Sublease or the application thereof to any person or circumstance shall
to any extent be held invalid, then the remainder of this Sublease or the application of such provision to persons or circumstances other
than those as to which it is held invalid shall not be affected thereby, and each provision of this Sublease shall be valid and enforced
to the fullest extent permitted by Law.

 

23.             
Authority. The persons executing this Sublease on behalf of Subtenant hereby consent, represent and warrant that
Subtenant is a corporation duly formed and validly existing under the laws of the State of Nevada, and is duly qualified to transact business
in the State of Texas; and that the person or persons executing this Sublease on behalf of Subtenant are duly authorized to execute this
Sublease and possess the power and authority to bind Subtenant hereto.

 

24.             
Prohibited Persons and Transactions. Subtenant represents and warrants that Subtenant is not, and covenants and agrees
that Subtenant will not become, a person or entity with whom U.S. persons or entities are restricted from doing business under regulations
of the Office of Foreign Assets Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s
Specially Designated Nationals and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive
Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental
action and Subtenant covenants and agrees that it will not Transfer this Sublease to, any such persons or entities (and any such Transfer
shall be void).

 

25.             
Confidentiality. Subtenant acknowledges that the terms and conditions of this Sublease are to remain confidential
for Sublandlord’s benefit, and may not be disclosed by Subtenant to anyone, by any manner or means, directly or indirectly, without
Sublandlord’s prior written consent; however, Subtenant may disclose the terms and conditions of this Sublease to its partners,
attorneys, accountants, brokers, employees and existing or prospective financial partners, or if required by Law or court order, provided
all parties to whom Subtenant is permitted hereunder to disclose such terms and conditions are advised by Subtenant of the confidential
nature of such terms and conditions and agree to maintain the confidentiality thereof (in each case, prior to disclosure). Subtenant shall
be liable for any disclosures made in violation of this Section 25 by Subtenant or by any entity or individual to whom the terms of and
conditions of this Sublease were disclosed or made available by Subtenant. The consent by Sublandlord to any disclosures shall not be
deemed to be a waiver on the part of Sublandlord of any prohibition against any future disclosure.

 

    11

     

    

 

26.              Entire
Agreement. This Sublease (and, to the extent incorporated in the Sublease, the Base Lease) contains all of the covenants,
agreements, terms, provisions, conditions, warranties and understandings relating to the leasing of the Sublease Premises and
Sublandlord’s and Subtenant’s obligations in connection therewith, and neither Sublandlord nor any agent or
representative of Sublandlord has made or is making, and Subtenant in executing and delivering this Sublease is not relying upon,
any warranties, representations, promises or statements whatsoever, except to the extent expressly set forth in this Sublease. All
understandings and agreements, if any, heretofore had between the parties are merged in this Sublease, which alone fully and
completely expresses the agreement of the parties. The failure of any party hereto to insist in any instance upon the strict
keeping, observance or performance of any covenant, agreement, term, provision or condition of this Sublease or to exercise any
election herein contained shall not be construed as a waiver or relinquishment for the future of such covenant, agreement, term,
provision, condition or election, but the same shall continue and remain in full force and effect. No waiver or modification of any
covenant, agreement, term, provision or condition of this Sublease shall be deemed to have been made unless expressed in writing and
signed by Subtenant and Sublandlord. No surrender of possession of the Sublease Premises or of any part thereof or of any remainder
of the Sublease Term shall release Subtenant from any of its obligations hereunder unless such surrender is approved by Sublandlord
in its sole discretion in writing. The receipt and retention by Sublandlord of monthly Base Rent from anyone other than Subtenant
shall not be deemed a waiver of the breach by Subtenant of any covenant, agreement, term or provision of this Sublease, or as the
acceptance of such other person as a tenant or Subtenant, or as a release of Subtenant from the further keeping, observance or
performance by Subtenant of the covenants, agreements, terms, provisions and conditions herein contained. The receipt and retention
by Sublandlord of monthly Base Rent with knowledge of the breach of any covenant, agreement, term, provision or condition herein
contained shall not be deemed a waiver of such breach.

 

27.             
Counterparts. This Sublease (and amendments to this Sublease) may be executed in any number of counterparts, each
of which shall be deemed to be an original, and all of such counterparts shall constitute one document. To facilitate execution of this
Sublease, the parties may execute and exchange, by electronic mail PDF, counterparts of the signature pages. Signature pages may be detached
from the counterparts and attached to a single copy of this Sublease to physically form one document. The parties hereto consent and agree
that this Sublease may be signed and/or transmitted by facsimile, e-mail of a .pdf document or using electronic signature technology (e.g.,
via DocuSign or similar electronic signature technology), and that such signed electronic record shall be valid and as effective to bind
the party so signing as a paper copy bearing such party’s handwritten signature. The parties further consent and agree that (a)
to the extent a party signs this Sublease using electronic signature technology, by clicking “SIGN”, such party is signing
this Sublease electronically, and (b) the electronic signatures appearing on this Sublease shall be treated, for purposes of validity,
enforceability and admissibility, the same as handwritten signatures.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
BLANK.

 

    12

     

    

 

Executed as of the date first written above.

 

	SUBLANDLORD:	ENCAP INVESTMENTS L.P., a Delaware limited partnership

 

	 	By:	 /s/ Craig Friou
	 	Name:	 
	 	Title:	 

 

	SUBTENANT:	APPLIED BLOCKCHAIN, INC., a Nevada corporation

 

	 	By:	 /s/ David M. Rench
	 	Name:	 
	 	Title:	 

 

[Signature Page to Sublease Agreement]

 

    

     

    

 

EXHIBIT A

 

DEPICTION OF SUBLEASE PREMISES AND RETAINED
PREMISES

 

	
     ̈Sublease

 Premises

     ̈Retained

 Premises

     
	

 

    A-1

     

    

 

EXHIBIT B

 

CONFIRMATION OF SUBLEASE COMMENCEMENT
DATE

 

, 2021

 

Applied Blockchain, Inc.

3811 Turtle Creek Blvd., Suite 2100                                     

Dallas, Texas 75219

Attention: David Rench

 

		Re:	Sublease Agreement (the “Sublease”) dated May 19, 2021,
between ENCAP INVESTMENTS L.P., a Delaware limited partnership (“Sublandlord”) and APPLIED BLOCKCHAIN,
INC., a Nevada corporation (“Subtenant”), for the sublease of approximately 10,699 square feet of rentable area
(the “Sublease Premises”) pursuant to the Sublease. Capitalized terms used herein but not defiled shall be given the
meanings assigned to them in the Sublease unless otherwise indicated.

 

Ladies and Gentlemen:

 

Sublandlord and Subtenant agree as follows:

 

1.                 
Condition of Sublease Premises. Subtenant has accepted possession of the Sublease Premises pursuant to the Sublease.

 

2.                 
Sublease Commencement Date. The Sublease Commencement Date is_______, 2021

 

3.                 
Base Rent. Base Rent for the Sublease Premises shall be the following amounts for the following periods of time:

 

	Time Periods	 	Base Rent Rate per rentable square foot in 
 the Sublease Premises	 	 	Monthly Base Rent	 
	// - //	 	$	29.00	 	 	$	25,855.92	*
	// - //	 	$	29.75	 	 	$	26,524.60	 
	// - //	 	$	30.50	 	 	$	27,193.29	 
	// - //	 	$	31.25	 	 	$	27,861.98	 
	// - //	 	$	32.00	 	 	$	28,530.67	 
	// - 10/31/2016	 	$	32.75	 	 	$	29,199.35	 

 

*Notwithstanding the foregoing, provided that Subtenant is
not in default of the Sublease beyond all applicable notice and cure periods, Base Rent shall be abated between the Sublease Commencement
Date and     , 2021.

 

4.                 
Ratification. Subtenant hereby ratifies and confirms its obligations under the Sublease, and represents and warrants
to Sublandlord that it has no defenses thereto.

 

    B-1

     

    

 

Additionally, Subtenant further confirms and ratifies that, as of the
date hereof, (a) the Sublease is and remains in good standing and in full force and effect, and (b) Subtenant has no claims, counterclaims,
set-offs or defenses against Sublandlord arising out of the Sublease or in any way relating thereto or arising out of any other transaction
between Sublandlord and Subtenant.

 

5.                 
Binding Effect; Governing Law. Except as modified hereby, the Sublease shall remain in full effect and this letter
shall be binding upon Sublandlord and Subtenant and their respective successors and assigns. If any inconsistency exists or arises between
the terms of this letter and the terms of the Sublease, the terms of this letter shall prevail. This letter shall be governed by the laws
of the state in which the Sublease Premises is located.

 

Please indicate your
agreement to the above matters by signing this letter in the space indicated below and returning an executed original to us.

 

	 	Sincerely,
	 	 
	 	ENCAP INVESTMENTS L.P., a Delaware limited partnership
	 	 
	 	By:	/s/ Craig Friou
	 	Name:	 
	 	Title:	 

 

Agreed and accepted:

 

APPLIED BLOCKCHAIN, INC., a Nevada corporation

 

	By:	 /s/ David M. Rench	 	 
	Name:	 	 	 
	Title:	 	 	 

 

    B-2

     

    

 

EXHIBIT C

 

EXISTING FURNITURE

 

War Room

 

Two Samsung 65” Consumer Grade displays installed on
the wall with a Lifesize 10X camera in

between mounted using the Vaddio Thin Profile Wall Mount

One Barco Wireless Presentation System (CSE-200)

Two Audix M3W microphones

One Creston 10.1” Touch panel

Six JBL Controls

24 CT Ceiling speakers installed

The following additional equipment installed in the rack
in the Server Room: one Crestron DMPS3-

300-C, one Lifesize Icon 800 Video Conferencing System, one
Biamp Tesira Forte AVB VI, one

Cisco 8-Port Switch, and one Crown CDI 1000

 

Conference Room Back

 

Two Samsung 65” Consumer Grade displays installed with
a Lifesize 10X camera mounted above

the displays in a Sound Controls Technologies In-Wall Recess
for the Lifesize 10X

One Barco Wireless Presentation System (CSE-200)

Eight Shure MXW6/C Wireless Microphones

One Creston 10.1” Touch Panel

Six JBL Controls

24 CT Ceiling speakers installed.

The following additional equipment installed in the rack
in the Server Room: one Crestron DMPS3-

300-C, Lifesize Icon 800 Video Conferencing System, Biamp
Tesira

Server IO, Cisco 8-Port Switch, and a Crown CDI 1000

 

Conference Front

 

Two Samsung 65” Consumer Grade displays installed with
a Lifesize 10X camera mounted in

between the displays using the Vaddio Thin Profile Wall Mount.

One Barco Wireless Presentation System (CSM -1)

Eight Shure MXW6/C Wireless Microphones

One Creston 10.1” Touch Panel

Four JBL Controls

24 CT Ceiling speakers installed

The following additional equipment installed in the rack
in the Server Room: one Crestron DMPS3-

300-C, Lifesize Icon 800 Video Conferencing System, an owner
furnished cable box, Biamp Tesira

Server 1O, Cisco 8-Port Switch, and a Crown CDI 1000.

 

Offices

 

Two 65” Display installed

Two Barco Wireless Presentation System (CSM-1)

Two custom HDMI Wallplate installed

Two Crestron 8G+ Transmitter and Receivers for cable box.

 

    C-1

     

    

 

Kitchen

 

One 48” Display installed

One Crestron 8G+ Transmitter and Receiver for cable box

One Middle Atlantic ERK-4425LRD — Rack in the server
room

One APC SMT1500RMU - 1500VA Smart UPS

One Middle Atlantic PD-915R-SP — Surge suppressor

Custom made ping pong table

 

Morpho card and finger print readers

 

4 on all entry doors

1 on the server room

 

Camera

 

2 MK Vision external hallway cameras

 

    C-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}]]