Document:

EX-10.16

 Exhibit 10.16 

Cyclebar Holdco, LLC 

First Amended and Restated 

Phantom Equity Plan 

Article I 
 Purposes

 The purposes of the Plan are to foster and promote the long-term financial success of the Company and the
Subsidiaries and materially increase member value by (a) motivating superior performance by Participants by means of performance-related incentives and (b) enabling the Company and the Subsidiaries to attract and retain the services of an
outstanding management team upon whose judgment, interest and special effort the successful conduct of its operations is largely dependent. This Plan amends and restates that certain Phantom Equity Plan of Cyclebar Holdco, LLC adopted on or about
February 27, 2018 (the “Prior Plan”) in its entirety. To the extent there are any inconsistences or conflicts between the Plan and the Prior Plan, the Plan will govern and control. 

Article II 
 Definitions,
Etc. 
 Section 2.01     Certain Definitions. Whenever used herein, the following terms
shall have the respective meanings set forth below. 
 “Adjustment Event” means any dividend or
other distribution (whether in the form of cash, additional interests, other securities, or other property, and excluding any tax distributions made under the LLC Agreement), any capital contributions, any recapitalization, reclassification,
reorganization, change to corporate form, merger, consolidation, split-up, spinoff, combination, repurchase, liquidation, dissolution, sale, transfer, exchange or other disposition of all or substantially all
of the assets of the Company or exchange of shares or other securities of the Company, issuance of warrants or other rights to purchase shares or other securities of the Company, or other similar transaction or event. 

“Affiliate” means, when used with reference to a specified Person, (a) any Person that
directly or indirectly, through one or more intermediaries, controls (alone or through an affiliated group), is controlled by, or is under common control with, such specified Person, including any investment vehicle under common management of such
Person, (b) any Person that is an officer, director, manager, member, partner, or trustee of, or serves in a similar capacity with respect to, such specified Person (or an Affiliate of such Person) or of which such specified Person is an
officer, director, member, manager, partner or trustee, or with respect to which such Person serves in a similar capacity or (c) any Person who is a spouse or descendant (whether natural or adopted) of such specified Person. 

“Award Letter” means the letter evidencing a grant of Phantom Units to a Participant, substantially in
the form attached hereto as Annex A, or such other form as the Committee shall approve. 

 “Base Amount” means an amount per Phantom Unit
determined by the Committee on each grant date of Phantom Units, which shall not be less than the Fair Market Value per Unit on such date. 

“Cause” means, with respect to any Participant, if the Participant has an employment agreement with
the Company or an Affiliate thereof, the meaning assigned to such term in such employment agreement; provided, that if the Participant does not have an employment agreement or such term is not defined in such employment agreement, the term
“Cause” means the following events or conditions, as determined by the Member in its reasonable judgment: (a) any failure by the Participant to substantially perform the Participant’s duties to the Company or
any of its Affiliates (other than any such breach or failure due to the Participant’s physical or mental illness) and the continuance of such failure for more than 30 days following the Participant’s receipt of written notice from the
Company, which notice shall set forth in reasonable detail the facts or circumstances constituting such failure; (b) any failure by the Participant to cooperate, if reasonably requested by the Company, with any investigation or inquiry
into the Participant’s or the Company’s business practices, whether internal or external, including, but not limited to, the Participant’s refusal to be deposed or to provide testimony at any trial or inquiry and the continuance of
such failure for more than 30 days following the Participant’s receipt of written notice from the Company, which notice shall set forth in reasonable detail the facts or circumstances constituting such failure; (c) the
Participant’s engaging in fraud, willful misconduct, or dishonesty that has caused or is reasonably expected to result in material injury to the Company; (d) any material breach by the Participant of any fiduciary duty owed to the
Company; (e) the Participant’s conviction of, or entering a plea of guilty or nolo contendere to, a crime that constitutes a felony (other than a DUI or similar felony); or (f) any material breach by the Participant of
any of the Participant’s obligations hereunder or under any other written agreement or covenant with the Company or any of its Affiliates and the continuance of such failure for more than 30 days following the Participant’s receipt of
written notice from the Company, which notice shall set forth in reasonable detail the facts or circumstances constituting such failure. A termination for Cause shall include a reasonable determination by the Company within 60 days following the
termination of the Participant’s services to the Company that circumstances existed during the Participant’s employment that would have justified a termination by the Company for fraud. 

“Change of Control” means: 

(a)       a sale or transfer of all or substantially all of the assets of any entity within the
Company Group in any transaction or series of related transactions to an Independent Third Party; 

(b)       any merger, consolidation or reorganization to which any entity within the Company
Group and an Independent Third Party are parties, except for a merger, consolidation or reorganization in which, after giving effect to such merger, consolidation or reorganization, the holders of such entity within the Company Group’s
outstanding Equity Securities (on a fully-diluted basis) immediately prior to the merger, consolidation or reorganization will own directly or indirectly, immediately following the merger, consolidation or reorganization, Equity Securities holding a
majority of the voting power of such entity within 

  
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the Company Group; or 
 (c)       any
sale, transfer or issuance or series of sales, transfers and/or issuances of the Equity Securities of any entity within the Company Group, which results in any Independent Third Party owning more than fifty percent (50%) of the Equity Securities of
such entity within the Company Group. 
 “Code” means the Internal Revenue Code of 1986, as amended
from time to time. 
 “Committee” means the Compensation Committee of the Company (or such other
committee of the Company as the Member shall designate) or, if there shall not be any such committee then serving, the Member. 

“Company” means Cyclebar Holdco, LLC, a Delaware limited liability company, and 

any successor thereto. 

“Company Group” means (x) the Company, (y) its Subsidiaries and
(z) the chain of Subsidiary entities owned, directly and indirectly, by H&W INVESTCO LP that ends with the direct parent of the Company. 

“Convertible Securities” means securities convertible into or exchangeable for Units. 

“Equity Securities” means equity securities of the Company Group, whether now or hereafter issued, and
any Convertible Securities. 
 “Fair Market Value” means, as of any date, with respect to the Units,
the per Unit fair market value on such date as determined by the Committee. The determination of Fair Market Value shall not give effect to any control premiums or discounts, restrictions on the Units or that such Units would represent a minority
interest in the Company. Notwithstanding anything to the contrary contained in this Plan or any applicable Award Letter, as of any date, Fair Market Value shall not be less than the fair market value of one Unit, as determined under section 409A of
the Code. 
 “Fully-Diluted Basis” means, as of any determination date, the sum of (i) the
number of Units of the Company that would be outstanding as of such date if, immediately prior to such date, all warrants, Convertible Securities or other similar rights then outstanding that are exercisable or convertible at such time were
exercised for or converted into Units of the Company, but only to the extent that such warrants and securities are “in the money” and (ii) the aggregate number of outstanding Phantom Units. 

“Good Reason” means, with respect to any Participant, if the Participant has an employment agreement
with the Company or an Affiliate thereof, the meaning assigned to such term in such employment agreement; provided, that if the Participant does not have an employment agreement or such term is not defined in such employment agreement,
the term “Good Reason” means the termination by a Participant of the Participant’s engagement with the Company if (a) any of the following events occur without the Participant’s express prior written consent;
(b) within 60 days after the Participant learns of the occurrence of such event, the Participant gives written notice to the Company describing such event and demanding cure; (c) 

  
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such event is not fully cured within 30 days after such notice is given; and (d) the Participant actually terminates his or her engagement with the Company within 30 days of the
Company’s failure to so cure: (i) a material diminution in the Participant’s base salary or (ii) the assignment to the Participant of duties that are significantly different from, and that result in a substantial
diminution of, the Participant’s duties or authority. 
 “Independent Third Party” means any
Person who immediately prior to the contemplated transaction does not, directly or indirectly, own in excess of five percent (5%) of the issued and outstanding Units and is not an Affiliate of any such owner. 

“LLC Agreement” means the Third Amended and Restated Limited Liability Operating Agreement of the
Company, dated as of February 27, 2018, as amended from time to time. 
 “Member” means
Xponential Fitness LLC, a Delaware limited liability company. 
 “Participant” means any manager,
officer or key employee of, or consultant to, the Company or any Subsidiary who is designated by the Committee to receive a grant of Phantom Units under the Plan and who executes an Award Letter pursuant to the provisions of Section 5.02. 

“Phantom Unit” means, with respect to Units of the Company, the right to receive a payment from the
Company under Section 5.03. 
 “Per Unit Change of Control Price” means, as determined by the
Committee in its sole discretion as of the date of a Change of Control, the net aggregate proceeds payable or to be payable in respect of one Unit in connection with the transaction (or series of transactions) resulting in such Change of Control (as
determined by the Committee if any part of such proceeds are payable other than in cash), including, without limitation, any and all escrowed amounts and earnouts, determined on a Fully-Diluted Basis and before giving effect to the payment of any
amounts in respect of Phantom Units. 
 “Person” means any individual, sole proprietorship, general
partnership, limited partnership, corporation, business trust, trust, joint venture, limited liability company, association, joint stock company, bank, unincorporated organization or any other form of entity. 

“Plan” means this First Amended and Restated Cyclebar Holdco, LLC Phantom Equity Plan, as amended from
time to time. 
 “Subsidiary” means, with respect to any Person, any corporation, limited liability
company, partnership, association or other business entity of which (a) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (b) if a limited liability company,
partnership, association or other business entity, a majority of the partnership or other similar ownership interests there of entitled to control the board of managers, general partner or similar governing body of such entity is at the time owned
or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, 

  
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a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be
allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or control any manager, managing director or general partner of such limited liability company, partnership, association
or other business entity. 
 “Unit” means a Unit (as defined in the LLC Agreement), having such
rights and obligations as are described in the LLC Agreement, or such other class or kind of units, shares or other securities resulting from the application of Section 4.03, or such other class or kind of units, shares or other securities
resulting from the application of Section 4.03. 
 Section 2.02     Gender and Number.
Except when otherwise indicated by the context, words in the masculine gender used in the Plan shall include the feminine gender, the singular shall include the plural and the plural shall include the singular. 

Article III 

Administration 

The Committee shall be responsible for the administration of the Plan. The Committee shall have discretionary authority,
subject to the provisions of the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, to provide for conditions deemed necessary or advisable to protect the interests of the Company and its Affiliates, to interpret the
Plan and to make all other determinations necessary or advisable for the administration and interpretation of the Plan and to carry out its provisions and purposes. Any determination, interpretation or other action made or taken (including, but not
limited to, any failure to make any determination or interpretation, or failure to make or take any other action) by the Committee pursuant to the provisions of the Plan shall be final, binding and conclusive for all purposes and upon all persons,
and shall be given deference in any proceeding with respect thereto. The Committee may consult with legal counsel, who may be counsel to the Company, and shall not incur any liability for any action taken in reliance upon the advice of counsel. It
is intended that the Phantom Units comply with the application of section 409A of the Code and shall be construed as such. 
 Article IV

 Phantom Units Subject to Plan 

Section 4.01     Number. Subject to Section 4.03, the number of Phantom Units granted
under the Plan may not exceed 1,000 Phantom Units. 
 Section 4.02     Cancelled, Terminated or
Forfeited Phantom Units. Any Phantom Units that for any reason expire or are cancelled, terminated, forfeited, substituted for, repurchased by the Company or otherwise settled without consideration shall again be available for award under the
Plan. 
 Section 4.03     Adjustments in Capitalization. The number of Phantom Units
available for grant under Section 4.01 shall be proportionately adjusted to reflect, as deemed equitable and appropriate by the Committee, each Adjustment Event. To the extent deemed equitable and appropriate by the Committee, and subject to
any required action by Unit holders, in any 

  
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reorganization, merger, consolidation, split-up, spin-off, combination, exchange of Units or other similar event,
Phantom Units shall pertain to the securities or other property to which a holder of one Unit would have been entitled to receive in connection with such event. 

Article V 
 Phantom Units

 Section 5.01     Power to Grant. The Committee shall have the discretionary
authority, subject to the terms of the Plan, to determine (i) the managers, officers or key employees of, or consultants to, the Company or any Subsidiary who shall become Participants and to whom Phantom Units shall be granted;
(ii) the date or dates on which Phantom Units shall be granted; (iii) the number of Phantom Units granted to each Participant; (iv) the Base Amount of the Phantom Unit; (v) the conditions upon which
the Phantom Units or any portion thereof shall become and remain vested, if any, including, without limitation, upon the performance of a minimum period of service or the satisfaction of performance goals; (vi) the treatment of the
Phantom Units upon any termination of the Participant’s services to the Company and the Subsidiaries, and upon any Change of Control; and (vii) the other terms and conditions of such Phantom Units. 

Section 5.02     Award Letter. Each grant of Phantom Units shall be evidenced by an Award
Letter, which shall specify the items described in clauses (ii) through (vii) of Section 5.01, and such other provisions not inconsistent with the Plan as the Committee shall determine. 

Section 5.03     Payment. Subject to the continuous active engagement of a Participant by the
Company or a Subsidiary through a Change of Control (except as provided in Section 5.06), upon such Change of Control, the Company shall pay to such Participant an amount in respect of each Phantom Unit then held by such Participant equal to
the excess, if any, of the Per Unit Change of Control Price over the Base Amount of each such Phantom Unit. Any payments made by the Company in respect of any Phantom Units in accordance with this Section 5.03 shall be paid to Participants in
the same proportion of cash or securities or other property received by the Company or its Unit holders, as applicable, in connection with such Change of Control; provided, that, in the event any portion of the Per Unit Change of
Control Price is paid to the Company or its Unit holders at a date later than the date that is 30 days following the Change of Control (e.g., any escrowed amounts or earnouts), a corresponding pro rata portion of the payments made by the Company in
respect of any Phantom Units shall be paid to the applicable Participant within 30 days of receipt of such portion of the Per Unit Change of Control Price by the Company or its Unit holders, as applicable (provided that unless otherwise permitted by
section 409A of the Code, no portion of the payments made by the Company in respect of any Phantom Units shall be payable after the fifth anniversary of the Change of Control). In the event any portion of the Per Unit Change of Control Price is
subject to a purchase price adjustment, indemnification obligation or other contingency, the payments made by the Company in respect of any Phantom Units shall be treated in a substantially similar manner as payments to Unit holders in respect of
Units. Prior to the occurrence of a Change of Control, no payments or distributions shall be made in respect of any Phantom Units except as may be provided by Section 5.06. 

Section 5.04     Cancelation of Phantom Units. Immediately following the final payment

  
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to a Participant under Section 5.03, the Phantom Unit pursuant to which such payment was made shall automatically be canceled without any further payment therefor. 

Section 5.05     Termination of Engagement. Notwithstanding anything to the contrary in this
Plan or any Award Letter, if a Participant’s engagement is terminated by the Company for Cause, or by the Participant for any reason, or if a Participant breaches any restrictive covenant between the Company or its Affiliates and such
Participant, all Phantom Units held by such Participant shall be immediately forfeited without payment therefor. 

Section 5.06     Repurchase Right. 

(a)         Generally. In the event of the termination of a Participant’s
engagement with the Company for any reason, any vested Phantom Units held by the Participant will be subject to purchase by the Company pursuant to this Section 5.06 (the “Purchase Right”). 

(b)       Notice. The Company may elect to purchase all or any portion of the vested
Phantom Units by delivering written notice (the “Purchase Notice”) to the Participant within 180 days after the termination of the Participant’s active engagement with the Company. The Purchase Notice will set forth the number of
vested Phantom Units to be acquired from the Participant, the aggregate consideration to be paid for such vested Phantom Units and the time and place for the closing of the transaction. The purchase price for the vested Phantom Units shall be equal
to their Fair Market Value as of the Participant’s termination as determined in the reasonable judgment of the Member; provided, that upon the termination of the Participant’s active engagement with the Company or any if its
Affiliates for Cause or Good Reason, the purchase price for such vested Phantom Units shall be equal to the lower of cost and Fair Market Value (the “Purchase Price”). The number of vested Phantom Units to be purchased by the
Company shall first be satisfied to the extent possible from the vested Phantom Units held by the Participant at the time of delivery of the Purchase Notice. 

(c)       Closing. The closing of the purchase of vested Phantom Units pursuant to the
Purchase Right shall take place on the date designated by the Company in the Purchase Notice, which date shall not be more than 30 days nor less than five days after the delivery of the Purchase Notice. The Company shall pay for the vested Phantom
Units to be purchased by it pursuant to the Purchase Right by (x) cash payable by delivery of a check; (y) by a wire transfer of funds or (z) by a promissory note that is payable in three equal annual installments
(which accelerates upon a Change of Control) and accrues interest at the then applicable short-term applicable federal rate (compounded annually), in each case, in the amount of the aggregate Purchase Price of the vested Phantom Units being
purchased by the Company. The purchasers of vested Phantom Units hereunder will be entitled to receive customary representations and warranties from the sellers regarding such sale. 

(d)      
Attorney-In-Fact. Upon the delivery of the cash payment described herein by the Company (or its designee), the Participant shall take all actions necessary, and
execute all related documents specified by the Company as being reasonably necessary to consummate the sale of the vested Phantom Units to the Company (or its designee), and the Participant shall appoint the Company’s Secretary as the
Participant’s true and lawful attorney-

  
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in-fact to exercise and deliver all such instruments, documents and writings, and to take all such actions as shall be required to consummate the sale of
the vested Phantom Units to the Company (or its designee) as contemplated in this Section 5.06. Such power is a special Power of Attorney coupled with an interest, is irrevocable, and shall run with the vested Phantom Units to any subsequent
owners thereof. 
 (e)       Other Matters. All repurchases of vested Phantom Units
pursuant to this Section 5.06 shall be subject to all applicable restrictions under law and the Company’s and its Subsidiaries’ financing agreements. If any such restrictions prohibit the closing described in Section 5.06(c)
above, the Company shall promptly give written notice to the Participant of such restriction. The Company’s rights under this Section 5.06 shall be preserved and time periods governing such rights or obligations shall be tolled for the
duration of such restriction, and the Company may make such purchases as soon as (and to the extent that) it is permitted to do so by law and such financing agreements; provided, that when payment eventually takes place as contemplated
by this Section 5.06(e), the Purchase Price shall be the Fair Market Value of the vested Phantom Units as of the date the Company consummates such purchases. 

Section 5.07     Limitation on Benefits. Notwithstanding anything to the contrary contained in
the Plan, to the extent that any of the payments and benefits provided under the Plan or any other agreement, or arrangement between the Company and its Subsidiaries and a Participant (collectively, the “Payments”) would
constitute a “parachute payment” within the meaning of section 280G of the Code, the amount of such Payments shall be reduced to the amount that would result in no portion of the Payments being subject to the excise tax imposed pursuant to
section 4999 of the Code. If any Payments that would be reduced or eliminated, as the case may be, pursuant to the immediately preceding sentence, but would not be reduced if the stockholder approval requirements of section 280G(b)(5) of the Code
are satisfied, the Company shall use its reasonable best efforts to cause such payments to be submitted for such approval prior to the transaction giving rise to such payments. 

Article VI 
 Effective
Date, Amendment and Termination 
 The Plan shall be effective upon adoption by the Board of Managers of the Company, or
such later date as the Member shall specify, and shall automatically expire on the tenth anniversary thereof (except as to outstanding Phantom Units), unless sooner terminated pursuant to this Article VI. The Member may at any time terminate or
suspend the Plan, and from time to time may amend or modify the Plan and, except as expressly set forth in an Award Letter, any Phantom Units and Award Letter. Unit holder approval of any such termination, suspension, amendment or modification shall
be obtained to the extent mandated by applicable law, or if otherwise deemed appropriate by the Member. 
 Article VII 

General Provisions 

Section 7.01     Beneficiary Designation. Each Participant may from time to time name any
beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid or by whom any right under the Plan is to be exercised in case of his death. Each designation will revoke all prior
designations by the same Participant, 

  
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shall be in a form prescribed by the Committee and will be effective only when filed by the Participant in writing with the Committee during the Participant’s lifetime. In the absence of any
such designation, benefits outstanding that remain unpaid at the Participant’s death shall be paid to the Participant’s surviving spouse, if any, or otherwise to his estate. 

Section 7.02     Nontransferability of Phantom Units. No Phantom Unit may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. 

Section 7.03     Tax Withholding. All payments and benefits provided under the Plan and any
Award Letter shall be subject to any and all applicable taxes, as required by applicable Federal, state, local and foreign law and regulations. 

Section 7.04     Requirements of Law. Phantom Units shall be subject to all applicable laws,
rules and regulations, and to such approvals as may be appropriate or required, as determined by the Committee. Notwithstanding any other provision of the Plan, no Phantom Units shall be granted, and no payments in respect of any Phantom Unit shall
be made, if such grant or payment would result in a violation of applicable law. Neither the Company nor any of its Affiliates nor any of their respective managers, directors or officers shall have any obligation or liability to a Participant with
respect to any Phantom Units for any failure to comply with the requirements of any applicable law, rules or regulations, including, but not limited to, any failure to comply with the requirements of section 409A of the Code. 

Section 7.05     No Guarantee of Service or Participation. Nothing in the Plan shall interfere
with or limit in any way the right of the Company or any Affiliate thereof to terminate any Participant’s services at any time and for any reason, nor confer upon any Participant any right to continue in the service of the Company or any
Affiliate thereof. In addition, if any Participant’s services to the Company or any of its Affiliates shall be terminated for any reason, such Participant shall not be eligible for any compensation or remuneration with respect to such
termination (except as otherwise expressly provided in this Plan or any applicable Award Letter) to compensate such Participant for the loss of any rights under the Plan. No member, officer or key employee of, or consultant to, the Company or any
Subsidiary shall have a right to be selected as a Participant or, having been so selected, to receive any Phantom Units. The Committee may establish different terms and conditions for different Participants receiving Phantom Units and for the same
Participant for each grant of Phantom Units such Participant may receive, whether or not granted at different times. The grant of any Phantom Units to any member, officer or key employee of, or consultant to, the Company or any Subsidiary shall
neither entitle such Person to, nor disqualify that Person from, the grant of any other Phantom Units. The Committee’s selection of a member, officer or key employee of, or consultant to, the Company or any Subsidiary as a Participant shall
neither entitle such Person to, nor disqualify such Person from, participation in any other incentive plan of the Company or any of its Affiliates. 

Section 7.06     No Limitation on Compensation. Nothing in the Plan shall be construed to
limit the right of the Company or any of its Affiliates to establish other plans or to pay compensation to its employees in cash or property. 

  
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 Section 7.07     No Right to Particular
Assets. Nothing contained in the Plan and no action taken pursuant to the Plan shall create or be construed to create a trust of any kind or any fiduciary relationship between the Company and any Affiliate thereof, on the one hand, and any
Participant or executor, administrator or other personal representative or designated beneficiary of such Participant, on the other hand, or any other Persons. Any reserves that may be established by the Company or any Affiliate thereof in
connection with the Plan shall continue to be held as part of the general funds of the Company or such Affiliate, and no individual or entity other than the Company or such Affiliate shall have any interest in such funds until paid to a Participant.
To the extent that any Participant or his executor, administrator or other personal representative, as the case may be, acquires a right to receive any payment from the Company or any Affiliate thereof pursuant to the Plan, such right shall be no
greater than the right of an unsecured general creditor of the Company or such Affiliate. 

Section 7.08     No Impact on Benefits. Phantom Units shall not be treated as compensation for
purposes of calculating a Participant’s rights under any employee benefit plan. 

Section 7.09     No Rights as a Unit Holder. No Participant shall have any rights as a Unit
holder of the Company (including, but not limited to, voting rights or the right to receive distributions) with respect to any Phantom Units. 

Section 7.10     Freedom of Action. Subject to Article VI, nothing in the Plan or any Award
Letter shall be construed as limiting or preventing the Company or any of its Affiliates from taking any action with respect to the operation or conduct of its business that it deems appropriate or in its best interest, and no Participant,
beneficiary or other person shall have any claim against the Company as a result of any such action. 

Section 7.11     Governing Law. The Plan and the Phantom Units shall be governed in all
respects, including as to validity, interpretation and effect, by the internal laws of the State of Delaware, without giving effect to the choice of law principles thereof. 

Section 7.12     Severability. In the event that any one or more of the provisions of the Plan
or any Award Letter shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein or therein shall not be affected thereby. 

Section 7.13     Exculpation. Neither the Member nor any member of the Committee nor any other
officer or employee of the Company or any Subsidiary acting on behalf of the Company or any Subsidiary with respect to the Plan shall be directly or indirectly responsible or otherwise liable by reason of any action or default as a Member, member of
the Committee, or other officer or employee of the Company or any Subsidiary acting on behalf of the Company or any Subsidiary with respect to this Plan, or by reason of the exercise of or failure to exercise any power or discretion as such person,
except for any action, default, exercise or failure to exercise resulting from such person’s gross negligence, breach of fiduciary duty or willful misconduct. Neither the Member nor any member of the Committee shall be liable in any way for the
acts or defaults of the Member or any other member of the Committee, as the case may be, or any of their respective advisors, agents or representatives. 

  
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 Section 7.14     Indemnification. The Member
and each individual who is or shall have been a member of the Committee shall be indemnified and held harmless by the Company to the fullest extent permitted by the LLC Agreement against and from any loss, cost liability or expense (including any
related attorney’s fees and advances thereof) that may be imposed upon or reasonably incurred by it or him in connection with, based upon or arising or resulting from any claim, action, suit or proceeding to which it or he may be made a party
or in which it or he may be involved by reason of any action taken or failure to act under or in connection with the Plan or any Award Letter and against and from any and all amounts paid by him in settlement thereof, with the Company’s
approval, or paid by it or him in satisfaction of any judgment in any such action, suit or proceeding against it or him; provided, that the Member or such individual shall give the Company an opportunity, at its own expense, to handle
and defend the same before it or he undertakes to handle and defend it on it’s or his own behalf. The foregoing right of indemnification shall not be exclusive and shall be independent of any other rights of indemnification to which the Member
or such individuals may be entitled under the Company’s certificate of formation, by contract, as a matter of law or otherwise. 

Section 7.15     Notices. Each Participant shall be responsible for furnishing the Company
with the current and proper address for the mailing of notices and delivery of agreements, if applicable. Any notices required or permitted to be given shall be deemed given if directed to the addressee at such address and mailed by regular United
States mail, first-class and prepaid or by overnight courier. If any item mailed to such address is returned as undeliverable to the addressee, mailing will be suspended until the intended recipient furnishes the proper address (but such suspension
shall not toll any specified time periods). 
 Section 7.16     Incapacity. Any benefit
payable to or for the benefit of a minor, an incompetent person or other person incapable of receiving such benefit shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the
care of such person, and such payment shall fully discharge the Member, the Committee, the Company and its Affiliates, and the other parties with respect thereto. 

Section 7.17     Rights Cumulative; Waiver. The rights and remedies of Participants and the
Company under this Plan shall be cumulative and not exclusive of any rights or remedies which either would otherwise have hereunder or at law or in equity or by statute, and no failure or delay by either party in exercising any right or remedy shall
impair any such right or remedy or operate as a waiver of such right or remedy, nor shall any single or partial exercise of any power or right preclude such party’s other or further exercise or the exercise of any other power or right. The
waiver by any Participant or by the Member, the Committee or the Company of any provision of the Plan shall not operate or be construed as a waiver of any preceding or succeeding breach, and no failure by any such party to exercise any right or
privilege hereunder shall be deemed a waiver of such party’s rights or privileges hereunder or shall be deemed a waiver of such party’s rights to exercise the same any subsequent time or times hereunder 

Section 7.18     Headings and Captions. The headings and captions herein are provided for
reference and convenience only, shall not be considered part of the Plan and shall not be employed in the construction of the Plan. 

  
 11ex_259671.htm

Exhibit 10.1

 

VOTING AND SUPPORT AGREEMENT

 

This Voting and Support Agreement (this “Agreement”), dated as of June 24, 2021, is entered into by and among TeraWulf Inc., a Delaware a corporation (the “Company”) and the undersigned (each, a “Shareholder”) holders of shares of common stock, par value $0.10 per share, of IKONICS Corporation (“Parent”). Capitalized terms used but not otherwise defined in this Agreement shall have the meanings ascribed to them in the Merger Agreement (as defined below).

 

RECITALS

 

WHEREAS, Parent, the Company, HoldCo, Merger Sub I and Merger Sub II have entered into a Merger Agreement, dated on or about the date hereof (as amended, supplemented, restated or otherwise modified from time to time, the “Merger Agreement”), pursuant to which (and subject to the terms and conditions set forth therein) (i) Merger Sub I will merge with and into Parent (the “First Merger”) with Parent surviving the First Merger as a wholly-owned subsidiary of HoldCo, (ii) following the consummation of the First Merger, Merger Sub II will merge with and into the Company (the “Second Merger”) with the Company surviving as a wholly-owned subsidiary of HoldCo, (iii) by virtue of the First Merger, the shareholders of Parent will receive, for each share of Parent Common Stock held as of immediately prior to the First Effective Time, the Parent Merger Consideration (including newly issues shares of Holdco Common Stock), (iv) in connection with the Second Merger shares of Company Preferred Stock will be automatically converted into shares of Company Common Stock in accordance with the terms of Article Fourth of the Company’s certificate of incorporation, and (v) by virtue of the Second Merger, holders of Company Common Stock (including shares of Company Common Stock resulting from the conversion of Company Preferred Stock described in the preceding clause (v)) will receive for each share of Company Common Stock held as of the Second Effective Time, the Company Merger Consideration;

 

WHEREAS, as of the date hereof, each Shareholder is the record and “beneficial owner” (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended (together with the rules and regulations promulgated thereunder, the “Exchange Act”)) of and is entitled to dispose of and vote the number of shares of Parent Common Stock set forth on each Shareholder’s signature page hereto (the “Owned Shares”; the Owned Shares and any additional shares of voting securities of the Parent (or any securities convertible into or exercisable or exchangeable for voting securities of the Parent) in which each Shareholder acquires record and beneficial ownership after the date hereof, including by purchase, as a result of a stock dividend, stock split, recapitalization, combination, reclassification, exchange or change of such shares, or upon exercise or conversion of any securities, the “Covered Shares”); and

 

WHEREAS, as a condition and inducement to the willingness of the Company to enter into the Merger Agreement, Parent has agreed to obtain Shareholder Support Agreements executed by the directors and executive officers of Parent.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the Company and each Shareholder, severally and not jointly, hereby agree as follows:

 

 

 

 

 

1.    Agreement to Vote. Subject to the earlier termination of this Agreement in accordance with Section 4 and to the last paragraph of this Section 1, prior to the Termination Date (as defined herein), each Shareholder, in its capacity as a shareholder of Parent, irrevocably and unconditionally agrees that, at any meeting of the shareholders of Parent (whether annual or special and whether or not an adjourned or postponed meeting, however called and including any adjournment or postponement thereof), the Shareholder shall, and shall cause any other holder of record of any of the Shareholder’s Covered Shares to:

 

(a)    if and when such meeting is held, appear at such meeting or otherwise cause the Shareholder’s Covered Shares to be counted as present thereat for the purpose of establishing a quorum;

 

(b)    vote, or cause to be voted at such meeting, all of the Shareholder’s Covered Shares owned as of the record date for such meeting in favor of the First Merger and the adoption of the Merger Agreement and any other matters necessary or reasonably requested by Parent for consummation of the First Merger and the other transactions contemplated by the Merger Agreement and any proposal to adjourn or postpone such meeting of the shareholders of the Parent to a later date if there is not a quorum or sufficient votes for approval of such matters on the date on which the meeting of the shareholders of the Parent is held to vote upon any of the foregoing matters; and

 

(c)    vote or cause to be voted at such meeting all of the Shareholder’s Covered Shares against any Takeover Proposal, Alternative Acquisition Agreement or merger, consolidation, business combination, reorganization, recapitalization, liquidation or sale or transfer of any material assets of the Parent and any other action that (i) would reasonably be expected to compete with, impede, interfere with, delay, postpone or adversely affect the First Merger or any of the other transactions contemplated by the Merger Agreement, result in a breach of any covenant, representation or warranty or other obligation or agreement of Parent under the Merger Agreement or inhibit the timely consummation of any other obligation or agreement in the Merger Agreement or this Agreement or (ii) would result in the failure of any condition set forth in Section 6.1, Section 6.2 or Section 6.3 of the Merger Agreement to be satisfied or result in a breach of any covenant, representation or warranty or other obligation or agreement of the Shareholder contained in this Agreement; provided, however, that nothing in this Agreement limits or restricts the Shareholder from voting on any matter other than those explicitly set forth in this Section 1(c), in their sole discretion.

 

The obligations of each Shareholder specified in this Section 1 shall apply whether or not the First Merger or any action described above is recommended by the Parent Board or the Parent Board has effected a Parent Adverse Recommendation Change. For purposes of this Agreement, “Person” shall mean individual, corporation, partnership, limited partnership, limited liability company, syndicate, person (including, without limitation, a “person” as defined in Section 13(d)(3) of the Exchange Act), trust, association or entity or government, political subdivision, agency or instrumentality of a government.

 

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Until the Termination Date (as defined below), each Shareholder hereby irrevocably appoints as its proxy and attorney-in-fact, the Company and any Person designated in writing by the Company, each of them individually, with full power of substitution and resubstitution, to vote the Covered Shares held by such Shareholder from time to time regarding the matters referred to in this Section 1 as provided herein prior to the Termination Date at any meeting of the shareholders of Parent (whether annual or special and whether or not an adjourned or postponed meeting, however called and including any adjournment or postponement thereof) at which any of the matters described in this Section 1 is to be considered; provided, however, that each Shareholder’s grant of the proxy contemplated by this Section 1 shall be effective if, and only if, such Shareholder has not delivered to the Secretary of the Parent at least ten Business Days prior to the meeting at which any of the matters described in this Section 1 is to be considered a duly executed irrevocable proxy card validly directing that the Covered Shares held by such Shareholder at such time be voted in accordance with this Section 1. This proxy, if it becomes effective, is coupled with an interest, is given as an additional inducement of the Company to enter into the Merger Agreement and shall be irrevocable prior to the Termination Date, at which time any such proxy shall terminate. Each Shareholder (solely in its capacity as such) shall take such further actions or execute such other instruments as may be necessary to effectuate the intent of this proxy. The Company may terminate this proxy with respect to any Shareholder at any time at its sole election by written notice provided to the applicable Shareholder.

 

2.    Cap. Notwithstanding any other provision of this Agreement, in no event shall the acquisition by any Shareholder subsequent to the date hereof of additional Shares cause the aggregate number of Covered Shares subject to this Agreement, be interpreted to, nor shall any person be entitled to enforce this Agreement in a manner so as to, give rise to a “control share acquisition” or “business combination” with an “interested shareholder” (as such terms are defined in the Minnesota Business Corporation Act (“MBCA”) for any purpose under the MBCA, and in the event of any determination that the foregoing would be the case, the terms of this Agreement shall be deemed modified ab initio to the extent (and only to the extent) required to avoid such a control share acquisition or business combination. For the avoidance of doubt, in no event shall the aggregate amount of Covered Shares subject to this Agreement exceed 19.9% of the issued and outstanding shares of Parent Common Stock (as such percentage is calculated pursuant to Section 302A.011, Subd. 41 of the MBCA). If the acquisition by a Shareholder subsequent to the date hereof of additional Shares would cause aggregate number of Covered Shares subject to this Agreement to exceed the percentage set forth in the preceding sentence, this Section 2 shall be deemed to release from the obligations under this Agreement such number of Covered Shares acquired subsequent to the date hereof as may be necessary to cause such aggregate amount to not exceed such percentage.

 

3.    No Inconsistent Agreements. Each Shareholder hereby covenants and agrees that the Shareholder shall not, at any time prior to the Termination Date, (i) enter into any voting agreement or voting trust with respect to any of the Shareholder’s Covered Shares that is inconsistent with the Shareholder’s obligations pursuant to this Agreement, (ii) grant a proxy or power of attorney with respect to any of the Shareholder’s Covered Shares that is inconsistent with the Shareholder’s obligations pursuant to this Agreement, or (iii) enter into any agreement or undertaking that is otherwise inconsistent with, or would interfere with, or prohibit or prevent it from satisfying, its obligations pursuant to this Agreement.

 

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4.    Termination. This Agreement shall automatically terminate, without any notice or other action by any party, be void ab initio and no party shall have any further obligations or liabilities under this Agreement, upon the earliest of (i) the date that the Requisite Parent Vote is obtained, (ii) the termination of the Merger Agreement in accordance with its terms, (iii) the time this Agreement is terminated upon the mutual written agreement of the Company, Parent, and such Shareholder, or (iv) the election of the Shareholder in its sole discretion to terminate this Agreement following any material modification or amendment to, as in effect on the date hereof, that alters (other than in a de minimis manner) the Parent Merger Consideration or the Company Merger Consideration in a manner which is adverse to the holders of Parent Common Stock, taken as whole, from a financial point of view, or materially changes the method for determining the Exchange Ratio or changes the form of consideration payable to the holders of Parent Common Stock in the First Merger, (in each case, without the Shareholder’s prior written consent) (the earliest such date under clause (i), (ii), (iii) and (iv) being referred to herein as the “Termination Date”); provided, that the provisions set forth in Sections 11 to 23 shall survive the termination of this Agreement; provided, further, that termination of this Agreement shall not relieve any party hereto from any liability for any Willful Breach of this Agreement prior to such termination.

 

5.    Representations and Warranties of the Shareholders. Each Shareholder hereby, severally and not jointly, represents and warrants to the Company as to itself as follows:

 

(a)    The Shareholder is the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of, and has good, valid and marketable title to, the Owned Shares, free and clear of Liens other than as created by this Agreement and Permitted Liens. As of the date hereof, other than the Owned Shares and any other shares of capital stock of the Parent that become Covered Shares that the Shareholder acquires record or beneficial ownership after the date hereof that is either permitted pursuant to, or acquired in accordance with, Section 5.2(c)(iii) of the Merger Agreement, the Shareholder does not own beneficially or of record any shares of capital stock of the Parent (or any securities convertible into shares of capital stock of the Parent).

 

(b)    The Shareholder (i) except as provided in this Agreement, has full voting power, full power of disposition and full power to issue instructions with respect to the matters set forth herein, in each case, with respect to the Shareholder’s Covered Shares, (ii) has not entered into any voting agreement or voting trust with respect to any of the Shareholder’s Covered Shares, (iii) has not granted a proxy or power of attorney with respect to any of the Shareholder’s Covered Shares that is inconsistent with the Shareholder’s obligations pursuant to this Agreement and (iv) has not entered into any agreement or undertaking that is otherwise inconsistent with, or would interfere with, or prohibit or prevent it from satisfying, its obligations pursuant to this Agreement.

 

(c)    The Shareholder (i) if a legal entity, is duly organized, validly existing and, to the extent such concept is applicable, in good standing under the Laws of the jurisdiction of its organization and has all requisite corporate or other power and authority and has taken all corporate or other action necessary in order to, execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby or (ii) if an individual, has legal competence and capacity to enter into this Agreement and all necessary authority to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Shareholder and constitutes a valid and binding agreement of the Shareholder enforceable against the Shareholder in accordance with its terms, subject to the Remedies Exceptions.

 

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(d)    Other than the filings, notices and reports pursuant to, in compliance with or required to be made under the Exchange Act, no filings, notices, reports, consents, registrations, approvals, permits, waivers, expirations of waiting periods or authorizations are required to be obtained by the Shareholder from, or to be given by the Shareholder to, or be made by the Shareholder with, any Governmental Authority in connection with the execution, delivery and performance by the Shareholder of this Agreement, the consummation of the transactions contemplated hereby (including, for the avoidance of doubt, those covenants, agreements and obligations under this Agreement that relate to the provisions of the Merger Agreement).

 

(e)    The execution, delivery and performance of this Agreement by the Shareholder do not, and the consummation of the transactions contemplated hereby (including, for the avoidance of doubt, those covenants, agreements and obligations under this Agreement that relate to the provisions of the Merger Agreement) will not, constitute or result in (i) if the Shareholder is a legal entity, a breach or violation of, or a default under, the limited liability company agreement or similar governing documents of the Shareholder, (ii) with or without notice, lapse of time or both, a breach or violation of, a termination (or right of termination) of or a default under, the loss of any benefit under, the creation, modification or acceleration of any obligations under or the creation of a Lien on the Covered Shares (other than Permitted Liens) pursuant to any contract binding upon the Shareholder or, assuming (solely with respect to performance of this Agreement and the transactions contemplated hereby), compliance with the matters referred to in Section 5(d), under any applicable Law to which the Shareholder is subject or (iii) any change in the rights or obligations of any party under any contract legally binding upon the Shareholder, except, in the case of clause (ii) or (iii) directly above, for any such breach, violation, termination, default, creation, loss, acceleration, Lien or change that would not, individually or in the aggregate, reasonably be expected to prevent or materially delay or impair the Shareholder’s ability to perform its obligations hereunder or to consummate the transactions contemplated hereby (including, for the avoidance of doubt, those covenants, agreements and obligations under this Agreement that relate to the provisions of the Merger Agreement).

 

(f)    As of the date of this Agreement, there is no action, proceeding or, to the Shareholder’s knowledge, investigation pending against the Shareholder or, to the knowledge of the Shareholder, threatened against the Shareholder that questions the beneficial or record ownership of the Shareholder’s Owned Shares, the validity of this Agreement or the performance by the Shareholder of its obligations under this Agreement.

 

(g)    The Shareholder understands and acknowledges that the Company is entering into the Merger Agreement in reliance upon Shareholder’s execution and delivery of this Agreement and the representations, warranties, covenants and other agreements of the Shareholder contained herein.

 

6.    Certain Covenants of the Shareholders. Except in accordance with the terms of this Agreement, each Shareholder hereby covenants and agrees, severally and not jointly, as follows:

 

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(a)    The Shareholder, solely in such Shareholder’s capacity as a shareholder of Parent, agrees not to, directly or indirectly, take any action that would violate Section 5.4 of the Merger Agreement; provided, the foregoing shall not serve to limit or restrict any actions taken by a Shareholder in any capacity other than as shareholder of Parent or to the extent such actions are permitted or required under Section 5 of the Merger Agreement.

 

(b)    The Shareholder hereby agrees not to, directly or indirectly, prior to the Termination Date, except in connection with the consummation of the Merger, (i) sell, transfer, pledge, encumber, assign, hedge, swap, convert or otherwise dispose of (including by merger (including by conversion into securities or other consideration), by tendering into any tender or exchange offer, by operation of Law or otherwise), either voluntarily or involuntarily (collectively, “Transfer”), or enter into any contract or option with respect to the Transfer of any of the Shareholder’s Covered Shares, or (ii) take any action that would make any representation or warranty of the Shareholder contained herein untrue or incorrect or have the effect of preventing or materially delaying the Shareholder from or in performing its obligations under this Agreement; provided, however, that nothing herein shall prohibit a Transfer (A) to an Affiliate of the Shareholder, (B) occurring by will, testamentary document or intestate succession upon the death of a Shareholder who is an individual or (C) pursuant to community property laws or divorce decree (each, a “Permitted Transfer”); provided, further, that any Permitted Transfer shall be permitted only if, as a precondition to such Transfer, the transferee also agrees in a writing, reasonably satisfactory in form and substance to the Company, to assume all of the obligations of the Shareholder under, and be bound by all of the terms of, this Agreement in respect of the Covered Shares so Transferred and any Covered Shares subsequently acquired; provided, further, that any Transfer permitted under this Section 6(a) shall not relieve the Shareholder of its obligations under this Agreement. Any Transfer in violation of this Section 6(a) with respect to the Shareholder’s Covered Shares shall be null and void. Nothing in this Agreement shall prohibit direct or indirect transfers of equity or other interests in a Shareholder.

 

(c)    The Shareholder hereby authorizes the Company to maintain a copy of this Agreement at either the executive office or the registered office of the Company.

 

7.    Further Assurances. From time to time, at the Company’s request and without further consideration, a Shareholder shall execute and deliver such additional documents and take all such further action as may be reasonably necessary or reasonably requested to effect the actions and consummate the transactions contemplated by this Agreement.

 

8.    Disclosure. Each Shareholder hereby authorizes the Company and Parent to publish and disclose in any announcement or disclosure to the extent required by law, rule or regulation by the SEC the Shareholder’s identity and ownership of the Covered Shares and the nature of the Shareholder’s obligations under this Agreement; provided, that prior to any such publication or disclosure the Company and Parent have provided the Shareholder with a reasonable opportunity to review and comment upon such announcement or disclosure, which comments the Company and Parent will consider in good faith.

 

9.    Changes in Capital Stock. In the event of a stock split, stock dividend or distribution, or any change in Parent’s capital stock by reason of any split-up, reverse stock split, recapitalization, combination, reclassification, exchange of shares or the like, the terms “Owned Shares” and “Covered Shares” shall be deemed to refer to and include such shares as well as all such stock dividends and distributions and any securities into which or for which any or all of such shares may be changed or exchanged or which are received in such transaction.

 

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10.    Amendment and Modification. This Agreement may not be amended, modified or supplemented in any manner, whether by course of conduct or otherwise, except by an instrument in writing signed by the Company and Shareholder.

 

11.    Waiver. Any party to this Agreement may, at any time prior to the Termination Date, waive any of the terms or conditions of this Agreement, or agree to an amendment or modification to this Agreement in the manner contemplated by Section 10 and by an agreement in writing executed in the same manner (but not necessarily by the same Persons) as this Agreement.

 

12.    Notices. All notices and other communications hereunder shall be in writing and shall be addressed as follows (or at such other address for a party as shall be specified by like notice):

 

if to a Shareholder, to it at the address and other contact information set forth on such Shareholder’s signature page to this Agreement;

 

if to the Company, to it at:

 

TeraWulf Inc.

9 Federal Street

Easton, MD 21601

Attention:         Paul Prager, Chief Executive Officer

Facsimile:         (410) 770-9705

E-Mail:             prager@terawulf.com

 

with a copy (which shall not constitute notice) to:

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Attention:               Ariel J. Deckelbaum

Sarah Stasny

Facsimile:              (212) 757-3990; (212) 492-0266

E-mail:                  ajdeckelbaum@paulweiss.com

sstasny@paulweiss.com

 

All such notices or communications shall be deemed to have been delivered and received: (a) if delivered in person, on the day of such delivery, (b) if by facsimile or electronic mail, on the day on which such facsimile or electronic mail was sent; provided, that receipt is personally confirmed by telephone, (c) if by certified or registered mail (return receipt requested), on the third (3rd) Business Day after the mailing thereof or (d) if by reputable overnight delivery service, on the first (1st) Business Day after the sending thereof.

 

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13.    No Ownership Interest. Nothing contained in this Agreement shall be deemed to vest in the Company any direct or indirect ownership or incidence of ownership of or with respect to the Covered Shares of any Shareholder. All rights, ownership and economic benefits of and relating to the Covered Shares of each Shareholder shall remain vested in and belong to the Shareholder, and the Company shall have no authority to manage, direct, restrict, regulate, govern or administer any of the policies or operations of Company or exercise any power or authority to direct the Shareholder in the voting or disposition of any of the Shareholder’s Covered Shares, except as otherwise provided herein.

 

14.    Entire Agreement. This Agreement (including, for the avoidance of doubt, those covenants, agreements and obligations under this Agreement that relate to the provisions of the Merger Agreement) constitute the entire agreement among the parties relating to the subject matter hereof and supersede any other agreements, whether written or oral, that may have been made or entered into by or among any of the parties hereto or any of their respective Subsidiaries relating to the transactions contemplated hereby. No representations, warranties, covenants, understandings, agreements, oral or otherwise, relating to the matters contemplated by this Agreement exist between the parties except as expressly set forth or referenced in this Agreement (including, for the avoidance of doubt, those covenants, agreements and obligations under this Agreement that relate to the provisions of the Merger Agreement).

 

15.    No Third-Party Beneficiaries. Each Shareholder hereby agrees that its representations, warranties and covenants set forth herein are solely for the benefit of the Company in accordance with and subject to the terms of this Agreement, and this Agreement is not intended to, and does not, confer upon any Person other than the parties hereto any rights or remedies hereunder, including the right to rely upon the representations and warranties set forth herein, and the parties hereto hereby further agree that this Agreement may only be enforced against, and any Action that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement may only be made against, the Persons expressly named as parties hereto; provided, that Parent shall be an express third party beneficiary with respect to Section 5, Section 6(a), Section 6(c) and Section 8 hereof.

 

16.    Governing Law and Venue; Service of Process; Waiver of Jury Trial.

 

(a)    This Agreement, and all claims or causes of action based upon, arising out of, or related to this Agreement or the transactions contemplated hereby, shall be governed by, and construed in accordance with, the Laws of the State of Minnesota, without giving effect to any choice or conflict of law provision or rule.

 

(b)    Each party to the Merger Agreement (a) irrevocably and unconditionally submits to the personal jurisdiction of the federal courts of the United States of America located in the State of Minnesota and the courts of the State of Minnesota sitting in Hennepin County, (b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (c) agrees that any actions or proceedings arising in connection with the Merger Agreement or the transactions contemplated by the Merger Agreement shall be brought, tried and determined only in the courts of the State of Minnesota Sitting in Hennepin County (or, only if such courts decline to accept jurisdiction over a particular matter, any state or federal court within the State of Minnesota), (d) waives any claim of improper venue or any claim that those courts are an inconvenient forum and (e) agrees that it will not bring any action relating to the Merger Agreement or the transactions contemplated hereunder in any court other than the aforesaid courts. The parties to the Merger Agreement agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 12 or in such other manner as may be permitted by applicable Law, shall be valid and sufficient service thereof. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THE MERGER AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

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17.    Assignment; Successors. No party hereto shall assign this Agreement or any part hereof without the prior written consent of the other parties. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns. Any attempted assignment in violation of the terms of this Section 17 shall be null and void, ab initio.

 

18.    Non-Recourse. This Agreement may only be enforced against the named parties. All legal proceedings, Legal Actions, obligations, losses, damages, claims or causes of action (whether in contract, in tort, in law or in equity, or granted by statute whether by or through attempted piercing of the corporate, limited partnership or limited liability company veil or otherwise) that may be based upon, arise under, out or by reason of, be connected with, or relate in any manner to (i) this Agreement or any of the other agreements or documents contemplated hereby, (ii) the negotiation, execution or performance of this Agreement or any of the documents contemplated hereby (including any representation or warranty made in connection with, or as an inducement to, this Agreement or any of the other agreements or documents contemplated hereby), (iii) any breach or violation of this Agreement (including the failure of any representation and warranty to be true or accurate) or any of the other agreements or documents contemplated hereby, and (iv) any failure of the transactions contemplated by this Agreement or the other agreements or documents contemplated hereby to be consummated, in the case of clauses (i) and (iv), may be made only against (and are those solely of) the Persons that are expressly named as parties to this Agreement, and then only to the extent of the specific obligations of such Persons set forth in this Agreement. In furtherance and not in limitation of the foregoing, and notwithstanding any other provision of this Agreement to the contrary, each Party hereto covenants, agrees and acknowledges that (except to the extent named as a party to this Agreement, and then only to the extent of the specific obligations of such parties set forth in this Agreement) no recourse under this Agreement, any related document or any documents or instruments delivered in connection with this Agreement or any related document shall be had against any Company Related Party or Parent Related Party, whether in contract, tort, equity, law or granted by statute whether by or through attempted piercing of the corporate, limited partnership or limited liability company veil or otherwise.

 

19.    Enforcement. The parties agree that irreparable damage for which monetary damages, even if available, would not be an adequate remedy, would occur in the event that the parties do not perform their obligations under the provisions of this Agreement in accordance with its specified terms or otherwise breach such provisions. The parties acknowledge and agree that (a) the parties shall be entitled to an injunction, specific performance, or other equitable relief, to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, including each Shareholder’s obligations to vote its Covered Shares as provided in this Agreement, without proof of damages, this being in addition to any other remedy to which they are entitled under this Agreement, and (b) the right of specific enforcement is an integral part of the transactions contemplated by this Agreement and without that right, none of the parties would have entered into this Agreement. Each party agrees that it will not oppose the granting of specific performance and other equitable relief on the basis that the other parties have an adequate remedy at Law or that an award of specific performance is not an appropriate remedy for any reason at Law or equity. The parties acknowledge and agree that any party seeking an injunction to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in accordance with this Section 19 shall not be required to provide any bond or other security in connection with any such injunction.

 

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20.    Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. The parties further agree that if any provision contained herein is, to any extent, held invalid or unenforceable in any respect under the Laws governing this Agreement, they shall take any actions necessary to render the remaining provisions of this Agreement valid and enforceable to the fullest extent permitted by Law and, to the extent necessary, shall amend or otherwise modify this Agreement to replace any provision contained herein that is held invalid or unenforceable with a valid and enforceable provision giving effect to the intent of the parties.

 

21.    Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement shall become effective when each party shall have received a counterpart hereof signed by all of the other parties. Signatures delivered electronically or by facsimile shall be deemed to be original signatures.

 

22.    Interpretation and Construction. Unless the express context otherwise requires:

 

(a)    the words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;

 

(b)    terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa;

 

(c)    the terms “Dollars” and “$” mean U.S. dollars;

 

(d)    references herein to a specific Section, Subsection, Recital, Schedule or Exhibit shall refer, respectively, to Sections, Subsections, Recitals, Schedules or Exhibits of this Agreement;

 

(e)    wherever the word “include,” “includes” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation”;

 

(f)    references herein to any gender shall include each other gender;

 

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(g)    references herein to any Person shall include such Person’s heirs, executors, personal representatives, administrators, successors and assigns; provided, however, that nothing contained in this Section 22(g) is intended to authorize any assignment or transfer not otherwise permitted by this Agreement;

 

(h)    references herein to a Person in a particular capacity or capacities shall exclude such Person in any other capacity;

 

(i)    with respect to the determination of any period of time, (i) the word “from” means “from and including” and the words “to” and “until” each means “to but excluding” and (ii) time is of the essence;

 

(j)    the word “or” shall be disjunctive but not exclusive;

 

(k)    references herein to any Law shall be deemed to refer to such Law as amended, modified, codified, reenacted, supplemented or superseded in whole or in part and in effect from time to time, and also to all rules and regulations promulgated thereunder;

 

(l)    references herein to any Contract mean such Contract as amended, supplemented or modified (including by any waiver thereto) in accordance with the terms thereof;

 

(m)    the headings contained in this Agreement are intended solely for convenience and shall not affect the rights of the parties to this Agreement;

 

(n)    if the last day for the giving of any notice or the performance of any act required or permitted under this Agreement is a day that is not a Business Day, then the time for the giving of such notice or the performance of such action shall be extended to the next succeeding Business Day; and

 

(o)          references herein to “ordinary course of business” shall refer to ordinary course of business consistent with past practice.

 

22.    Capacity as a Shareholder. Notwithstanding anything herein to the contrary, each Shareholder signs this Agreement solely in the Shareholder’s capacity as a shareholder of Parent, and not in any other capacity and this Agreement shall not limit or otherwise affect the actions or inactions of any affiliate, representative, employee or designee of the Shareholder or any of its affiliates in his or her capacity, if applicable, as an officer, director or fiduciary of Parent or any of its Subsidiaries or any other Person.

 

23.    Appraisal Rights. Each shareholder hereby waives, and agrees not to exercise or assert, if applicable, any appraisal rights, dissenter’s rights or similar rights (whether under Section 302A.471 or 302A.473 of the MBCA or other applicable Law) in connection with the First Merger.

 

[The remainder of this page is intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			TeraWulf Inc.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Paul Prager

				
			 

			
	
			 

				
			 

				
			Name: Paul Prager

				
			 

			
	
			 

				
			 

				
			Title:   President and CEO

				
			 

			

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ William C. Ulland

				
			 

			
	
			 

				
			 

				
			Name: William C. Ulland

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	
			 

			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

			 

			 

			Parent Common Stock Held:

			 

			Common Stock: 231,047

				 

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Darrell B. Lee

				
			 

			
	
			 

				
			 

				
			Name: Darrell B. Lee

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	
			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

				 
	 	 	 	 
	 	 	 	 
	 	
			Parent Common Stock Held:

			 

			Common Stock: 10,211

				 

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Ernest M. Harper, Jr.

				
			 

			
	
			 

				
			 

				
			Name: Ernest M. Harper, Jr.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	
			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

				 
	 	 	 	 
	 	 	 	 
	 	
			Parent Common Stock Held:

			 

			Common Stock: None

				 

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Lockwood Carlson

				
			 

			
	
			 

				
			 

				
			Name: Lockwood Carlson

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	
			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

				 
	 	 	 	 
	 	 	 	 
	 	
			Parent Common Stock Held:

			 

			Common Stock: 250

				 

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Marianne Bohren

				
			 

			
	
			 

				
			 

				
			Name: Marianne Bohren

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	
			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

				 
	 	 	 	 
	 	 	 	 
	 	
			Parent Common Stock Held:

			 

			Common Stock: 100

				 

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Jeffrey D. Engbrecht

				
			 

			
	
			 

				
			 

				
			Name: Jeffrey D. Engbrecht

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	
			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

				 
	 	 	 	 
	 	 	 	 
	 	
			Parent Common Stock Held:

			 

			Common Stock: None

				 

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Gregory W. Jackson

				
			 

			
	
			 

				
			 

				
			Name: Gregory W. Jackson

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	
			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

				 
	 	 	 	 
	 	 	 	 
	 	
			Parent Common Stock Held:

			 

			Common Stock: None

				 

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Glenn Sandgren

				
			 

			
	
			 

				
			 

				
			Name: Glenn Sandgren

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	
			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

				 
	 	 	 	 
	 	 	 	 
	 	
			Parent Common Stock Held:

			 

			Common Stock: 2,500

				 

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Claude P. Piguet

				
			 

			
	
			 

				
			 

				
			Name: Claude P. Piguet

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	
			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

				 
	 	 	 	 
	 	 	 	 
	 	
			Parent Common Stock Held:

			 

			Common Stock: 21,675

				 

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Ken Hegman

				
			 

			
	
			 

				
			 

				
			Name: Ken Hegman

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	
			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

				 
	 	 	 	 
	 	 	 	 
	 	
			Parent Common Stock Held:

			 

			Common Stock: 2,375

				 

 

 

[Signature Page to Shareholder Support Agreement]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized Persons thereunto duly authorized) as of the date first written above.

 

	
			 

				
			Shareholder:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Jon Gerlach

				
			 

			
	
			 

				
			 

				
			Name: Jon Gerlach

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	
			Address:     [REDACTED]                       

			 

			                                                                   

			 

			Email:         [REDACTED]                       

			 

				 
	 	 	 	 
	 	 	 	 
	 	
			Parent Common Stock Held:

			 

			Common Stock: 11,250

				 

 

 

[Signature Page to Shareholder Support Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00329-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00329-of-00352.parquet"}]]