Document:

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EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is dated as of August 25, 2021 (the “Effective Date”) by and between CFN Enterprises, Inc., a Delaware corporation (the “Company”), and John C Rand. (“Employee”).  Company and Employee may hereinafter be collectively referred to as the Parties and individually as a Party.

1.Term.  The Company employs Employee, subject to the terms and conditions of this Agreement, through the earlier of December 31, 2026 or such date as this Agreement shall terminate or expire as provided herein (the “Term”). 

2.Duties.  Employee shall be employed in the position of Executive Vice President of Finance.  Employee shall (a) perform all duties incident to such offices (b) be responsible, subject to the direction of the board of directors of the Company (the “Board”), and to direct all aspects of the accounting operations, including but not limited to; receivables, payables payroll, financial reporting and   financing strategies c) perform such other tasks, consistent with Employee’s position with the Company, as may from time to time be assigned to Employee by the Board.  Employee shall devote substantially all of Employee’s business time, labor, skill, and best ability to the performance of Employee’s duties hereunder in a manner which will faithfully and diligently further the business and interests of the Company.  During the Term, Employee shall not directly or indirectly pursue any other significant business activity; provided, however, that Employee may serve on civic or other charitable boards or committees and manage personal investments, so long as such activities do not interfere in any material respect with the performance of Employee’s duties and responsibilities hereunder. 

3.Compensation.  During the Term, Employee shall receive a minimum annual base salary (as adjusted in accordance with the terms hereof, the “Annual Base Salary”) of One Hundred Sixty Thousand Dollars ($160,000).    Employee shall receive an annual raise on each August 1 during the Term equal to three percent (3%) of the Annual Base Salary.  In addition, the Board may in its sole discretion authorize annual raises in amounts exceeding three percent (3%) of the Annual Base Salary as it may deem appropriate.  The Board may in its sole discretion authorize annual and/or quarterly bonuses in such amounts and on such terms as it may deem appropriate, up to thirty percent (30%) of the Annual Base Salary.  The Annual Base Salary shall be payable in accordance with the Company’s payroll practices as in effect from time to time, subject to applicable withholding and other taxes.  If any payment is not made as specified herein because the Board determines in its sole discretion that the financial condition of the Company would make such a payment imprudent, the unpaid portion will accrue, and be due and owing to Employee.  Such accruals will be paid to Employee in their entirety but without interest upon the earlier of: (a) the end of the Term, or (b) the Board’s decision approving the payment of such accrued amounts. 

4.Additional Benefits. 

(a)Business Expenses.  The Company shall reimburse Employee for all reasonable and properly documented business expenses incurred by Employee in connection with Employee’s employment by the Company, including but not limited to Employee’s monthly cell phone charges for business related calls and emails.  

 

(b)Benefit Plans and Programs.  During the Term, the Company shall pay one hundred percent (100%) of Employee’s health insurance premiums.    

 

(c)Stock Option Plan.  Employee shall, to the extent Employee is otherwise eligible, be entitled to participate in the Company’s stock option plan (the “Stock Option Plan”); provided that any grant of options shall be subject to vesting and other terms and conditions as may be determined by the Board.   

 

5.Illness or Disability.  If, because of Employee’s illness or other disability for a continuous period of more than 45 days, Employee is unable to render the services required by the Company as provided herein, the Company may terminate Employee’s employment hereunder by written notice to Employee at least 30 days in advance of such termination.  Upon such termination Employee shall not be entitled to any further payments of any nature, except for payment of (a) any earned but unpaid Annual Base Salary, (b) any unpaid bonuses and (c) unreimbursed business expenses (collectively, “Payable Amounts”).  All Payable Amounts shall become due and payable on the date of such termination. 

6.Death.  In the event of Employee’s death this Agreement shall terminate and Company shall be under no obligation to make any further payments whatsoever under this Agreement, except that Employee’s executors, administrators, or other legal representatives shall be entitled to receive any Payable Amounts. 

7.Termination of Employment. 

(a) Termination Without Cause.  During the Term, this Agreement and Employee’s employment may be terminated by Company without Cause (as hereinafter defined) by giving thirty (30) days’ prior written notice of such termination to Employee.  In the event that the Company terminates Employee’s employment without Cause during the Term, the Company shall, subject to Employee’s execution and delivery of a general release in favor of the Company and its affiliates substantially in the form attached hereto as Exhibit A, and Employee’s compliance with the terms of this Agreement, pay to Employee a severance payment equal to the greater of (i) the remaining payments due under this Agreement or (ii) the Annual Base Salary, each payable in accordance with the Company’s normal payroll practices (or, at the Company's option, in one lump sum payment, discounted to present value using a 5% discount rate).  Notwithstanding anything in the foregoing to the contrary, Employee will be entitled to such payments only if Employee has complied in full with the terms of this Agreement following Employee’s termination (e.g., Confidentiality, Return of Property obligations, etc.). In addition, in the event that the Company terminates Employee’s employment without Cause during the Term (i) Employee shall be entitled to receive all Payable Amounts (which shall become due and payable on the date of termination) and (ii) all of Employee’s unvested options issued under the Company’s Stock Option Plan, bonuses and other compensation shall vest on the date of termination. 

 

(b)Termination with Cause.  During the Term, this Agreement and Employee’s employment may be terminated by the Company for Cause. In such event, the Company shall have no liability for any further payments to Employee (including, without limitation, Annual Base Salary or benefits), provided that Employee shall be entitled to receive all Payable Amounts (which shall become due and payable on the date of termination).  “Cause” shall mean Employee’s: 

 

(i)failure or refusal to perform, or any misconduct in the performance of, any material portion of Employee’s obligations, duties and responsibilities under this Agreement, which (A) is incapable of cure or (B) has not been cured or remedied as promptly as is reasonably possible (and in any event within forty-five (45) days) after written notice from the Company to Employee specifying in reasonable detail the nature of such failure, refusal or misconduct;  

(ii)material breach of this Agreement which (A) is incapable of cure, or (B) has not been cured or remedied promptly (and in any event within forty-five (45) days) after written notice from the Company to Employee specifying in reasonable detail the nature of such breach; or 

(iii)commission of a felony or of any other crime which materially and adversely affects the Company or its business or operations. 

 

8.Restrictions.  Employee acknowledges that the business in which the Company is engaged is highly competitive, and that Employee is a key executive of the Company.  Employee further acknowledges that Employee will acquire extensive confidential information and knowledge of the business of the Company, and will develop relationships with, and/or acquire knowledge of, customers, clients, employees, sales agents, middlemen and suppliers of or to the Company and its subsidiaries and affiliates.  In light of the foregoing, Employee agrees as follows: 

(a)Confidentiality.   

 

(i)  During the Term and thereafter for a period of three (3) years, Employee agrees to hold in strictest confidence, and not to use, except for the benefit of the Company and within the scope of Employee’s employment, or to disclose (except as required by law) to any person or entity, any Confidential Information of the Company.  Employee understands that “Confidential Information” means (1) any and all information, in whatever form, whether reduced to writing, maintained on any form of electronic media, or maintained in mind or memory, received by Employee or generated by Employee on behalf of the Company relating to the current or prospective business, research and development activities, products, technology, strategy, organization and/or finances of the Company, or of third parties (including affiliates, vendors, suppliers and customers) with which the Company has a business relationship and (2) any other information, in whatever form, designated by the Company as confidential, in either case, whether disclosed to, or obtained by, Employee prior or subsequent to the date of this Agreement.  Confidential Information shall include without limitation customer lists, database information, samples, demonstration models or materials and other embodiments of products or prospective products, software and other technology, projections, existing and proposed projects or experiments, processes and methodologies and trade secrets and all Developments, as defined below, but excluding (A) information that the Company deliberately and voluntarily makes publicly available and (B) information disclosed by Employee to comply with a court, or other lawful compulsory, order compelling Employee to do so, provided Employee gives the Company prompt notice of the receipt of such order and disclosure is limited only to disclosure necessary for such purpose. Employee specifically acknowledges that: the Confidential Information derives independent economic value from not being readily known to, or ascertainable by proper means by, others; that the Company has expended considerable sums and efforts to develop such Confidential Information; reasonable efforts have been made by the Company to maintain the secrecy of such information; and that such information is the sole property of the Company or its affiliates, vendors, suppliers, or customers and that any retention, use or disclosure of such Confidential Information by Employee during the Term (except in the course of performing Employee’s duties under this Agreement) or any time thereafter, shall constitute a violation of this Agreement and the misappropriation of the trade secrets and Confidential Information of the Company or its affiliates, vendors, suppliers, or customers.   

 

(ii)  Employee recognizes that the Company has received and in the future will receive Confidential Information of and from other companies subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.  Employee agrees to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person or entity or to use it except as necessary in performing Employee’s duties under this Agreement and in a manner consistent with the Company's obligations to such companies. 

 

(iii)  Employee agrees that all Confidential Information, in any form, shall be and remain the sole and exclusive property of the Company and that immediately upon the termination of Employee’s employment, or at any other time that the Company may request, Employee shall deliver all Confidential Information in Employee’s control to the Company or, if instructed to do so by the Company, Employee will delete or destroy all Confidential Information in Employee’s control. 

 

(b)Assignment of Work Product.   

(i)  If at any time during the Term or thereafter, Employee has made or shall make (either alone or with others, and whether before or after the date of this Agreement), conceive, create, discover, invent or reduce to practice any invention, design, development, improvement, process, software program, work of authorship, or technique, in whole or in part, or which results from any work which Employee may do for or at the request of the Company, whether or not conceived by Employee while on holiday, on vacation, or off the premises of the Company, whether or not patentable or registrable under copyright or similar laws (herein called “Developments”) that (a) relate to the business of the Company or any of the products or services being developed, manufactured or sold by the Company, or (b) result directly or indirectly from tasks assigned to Employee by the Company or (c) result from the use of premises or property (whether tangible or intangible) owned, leased or contracted for by the Company, such Developments and all rights and interests therein and all records relating to such Developments shall be the sole and absolute property of the Company.  Employee shall promptly disclose to the Company each such Development and Employee shall deliver to the Company all records relating to each such Development.  Employee hereby assigns any rights (including, but not limited to, any rights under patent law and copyright law or other similar laws) that Employee may have or acquire in the Developments to the Company, without further compensation.  Where applicable, all Developments which are copyrightable works shall be works made for hire.  To the extent any such work of authorship may not be deemed to be a work made for hire, Employee agrees to, and does hereby, irrevocably, perpetually and unconditionally transfer and assign to the Company all right, title, and interest including copyright in and to such work without further compensation.   

 

(ii)  Employee will, during the Term and at all times thereafter, at the request and cost of the Company, promptly sign all such assignments, applications and other documents, and take such other actions, as the Company and its duly authorized agents may reasonably require: (A) to evidence the Company’s ownership of any Development and to apply for, obtain, register and vest in the name of the Company, or renew, patents, copyrights, trademarks or other similar rights for any Development in any country throughout the world and (B) to initiate or defend any judicial, administrative or other proceedings in respect of such patents, copyrights, trademarks or other similar rights. 

 

(iii)  In the event the Company is unable, after reasonable effort, to secure Employee’s signature for such purposes for any reason whatsoever, Employee hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Employee’s agents and attorneys-in-fact, to act for and in Employee’s name, behalf and stead, to execute and file any such assignments, applications or other documents and to do all other lawfully permitted acts to further the obtaining and protection of such patents, copyright or trademark registrations or other rights with the same legal force and effect as if executed by Employee.  

 

(iv)  Employee represents and warrants that (A) Employee does not have any pre-existing inventions that relate to the business of the Company and all inventions that Employee has made and owns the intellectual property rights to as of the Effective Date that relate to the business of the Company shall be considered Developments and are subject to the terms of Section 8(b) and (B) all Developments that Employee has developed or with respect to which Employee has been associated while employed by the Company are the sole property of the Company and that there are no other claims or ownership rights in such property with respect to any other party. 

 

(f)Return of Property.  Upon the termination of the Employee’s employment or at any other time upon written request by the Company, Employee shall promptly deliver to the Company all records, files, memoranda, designs, data, reports, drawings, plans, computer programs, software and other documents (and all copies or reproductions for such materials in Employee’s possession or control) belonging to the Company, including, without limitation, all Developments and/or Confidential Information and anything relating thereto. 

 

(g)For the purposes of this Section 8, “Company” shall mean the Company and its subsidiaries and controlled affiliates. 

 

9.General. 

 

(a)Cooperation.  During the Term and for six (6) years thereafter, Employee agrees to fully cooperate with the Company or its counsel in connection with any matter, investigation, proceeding or litigation regarding any matter in which Employee was involved during Employee’s employment with the Company or to which Employee had knowledge based on Employee’s employment with the Company. 

 

(b)Notices.  Any notice or any other communication required or permitted to be given hereunder shall be in writing and shall be sufficiently given (i) when delivered by personal delivery or by nationally recognized overnight courier; or (ii) two days after sending by registered mail, postage prepaid, return receipt requested, to the party entitled thereto at the address stated below. 

 

(A)To Company: 

600 East 8th Street 

Whitefish, MT 59937

Attn: Brian Ross

 

(B)To John C Rand.: 

 

 

 

(c)No Conflict.  Employee represents that Employee’s performance of all of the terms of this Agreement does not and will not conflict with or breach any agreement Employee has with any other party. 

 

(d)Waivers.  Any waiver by the Company of any provision of this Agreement shall not operate or be construed as a waiver of this Agreement or of any subsequent breach of such provision or any other provision.   

 

(e)Survival of Terms.  Employee’s obligations under Section 8 of this Agreement shall survive the termination of this Agreement for any reason whatsoever regardless of the manner of such termination and shall be binding upon Employee’s heirs, executors, administrators and legal representatives. 

 

(f)Successors and Assigns.  This Agreement shall inure to the benefit of and be enforceable by the Company’s successors or assigns.   

 

(g)Scope of Restrictions.  Employee agrees that the unenforceability of any one clause of this Agreement shall in no way impair the enforceability of any of the other clauses.  If any of the provisions of this Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise, the parties hereto agree that such provisions shall be construed by the appropriate judicial body by limiting or reducing them, so as to be enforceable to the maximum extent legally permissible. 

 

(h)Remedies.  Employee agrees that any breach or threatened breach of Section 8 of this Agreement would result in irreparable harm to the Company; therefore, in addition to its other remedies at law or in equity, the Company shall be entitled to injunctive or other equitable relief in order to enforce or prevent any violations of the provisions of Section 8, without the posting of any bond. 

 

(i)Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to its conflict of law provisions.   

 

(j)Dispute Resolution.If any dispute arises under this Agreement, the Parties agree to first attempt to resolve the dispute through the use of a mutually agreed upon mediator located in New York, New York.  Any costs and fees other than attorney’s fees associated with the mediation shall be shared equally by the parties.  If it proves impossible following a reasonable period to arrive at a mutually satisfactory solution through mediation, the parties agree to submit the dispute to binding arbitration in New York, New York..  The parties agree that the binding arbitration will be conducted under the rules of the American Arbitration Association.   Judgment upon the award rendered by the arbitrator may be entered in any court with proper jurisdiction. 

 

(k)Entire Agreement; Amendment.  This Agreement constitutes the entire agreement between the Company and Employee with respect to the subject matter hereof (except with respect to the Company’s stock options) and supersedes all prior discussions, promises, negotiations and agreements (whether written or oral).  The parties agree that the Stock Option Plan governs the terms of the Company’s stock options and if any provisions of this Agreement conflict with the terms of the Stock Option Plan, the terms of the Stock Option Plan shall govern.  This Agreement may be amended or modified only by a written agreement executed by the Company and Employee. 

 

(l)Tax Withholding.  The Company may withhold from any amounts payable under this Agreement or otherwise all federal, state, city, or other taxes as may be required pursuant to any law or governmental regulation or ruling. 

 

 

 

[SIGNATURE PAGE FOLLOWS]

 

IN WITNESS WHEREOF, the parties hereto have executed or caused to be executed this Agreement as of the date first above written. 

 

EMPLOYEE:

 

 

/s/ John C. Rand  

John C. Rand

 

 

CFN ENTERPRISES, INC.

 

By:/s/ Brian Ross  

Name: Brian Ross

Title: Chief Executive Officer

 

Exhibit A

GENERAL RELEASE OF CLAIMS

In consideration of _____ ($_____) to be paid to the undersigned by CFN Enterprises, Inc., I, the undersigned, on behalf of myself and my heirs, executors, administrators and assigns, hereby release and forever discharge CFN Enterprises, Inc. (“CFN”) and its parents, subsidiaries and affiliates, and each of their respective shareholders, partners, directors, officers, employees, agents, counsels, successors and assigns (collectively, the “Released Parties”), from any and all suits, claims, demands, debts, sums of money, salary, reimbursement or other compensation, damages, interest, attorneys’ fees, expenses, actions, causes of action, judgments, accounts, promises, contracts, agreements, and any and all claims of law or in equity, whether now known or unknown, which I now have or ever have had against the Released Parties, or any of them, including, but not limited to, any claims under Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, and any other federal, state or local statute, regulation, ordinance or common law creating employment-related causes of action, and all claims related to or arising out of my employment or the termination of my employment with CFNThis General Release of Claims does not apply to (1) any claims that arise after I sign this General Release of Claims or (2) any claims which may not be waived or released as a matter of law. 

I agree that I will indemnify and hold harmless any Released Parties for any cost or expense suffered by such party in connection with any demand, claim or legal action which I may file with regard to any subject matter within the scope of this General Release of Claims. This remedy shall be in addition to and not in lieu of any other remedy to which any Released Party may be entitled under applicable law. 

I agree to keep strictly confidential, not to make public and not to disclose to anyone in any manner the fact or terms of this General Release of Claims. 

CFN has informed me that in connection with this General Release I have the right to, and should consult with an attorney of my choosing, and that I have twenty-one (21) days after receiving this General Release of Claims to decide whether or not to sign it.  In addition, I have seven (7) days after signing this General Release of Claims to revoke my signature before it becomes effective.  If I wish to revoke my signature, I should do so in writing addressed and delivered to Brian Ross, the Chief Executive Officer of CFN before the end of the seven-day revocation period.  

This release is intended to operate as a contract under seal and shall be governed by and construed in accordance with the laws of the State of New York.  I agree that all disputes arising under or out of this General Release shall be brought exclusively in courts of competent jurisdiction within the State of New York and I hereby consent to jurisdiction in such courts with respect to all matters arising out of or related to this General Release of Claims. 

 

________________________________Dated:  ______________, ___ 

Agreed and Acknowledged,

CFN Enterprises, Inc.

 

By: ______________________________________

Name:

Title:Exhibit
4.1

 

Mining
services Agreement

 

This
Mining Services Agreement (this “Agreement”) is made as of August 25, 2021 (the “Effective Date”),
by and between BlockFusion USA, Inc. (“Service Provider”) and Bit Digital USA, Inc. (“Customer”).
Service Provider and Customer are each referred to as a “Party” and collectively as the “Parties”.
Capitalized terms will have the meanings set forth in Exhibit A, unless otherwise defined herein.

  

WHEREAS,
Customer wishes to acquire from Service Provider certain colocation, operation, management and maintenance services (the “Services”
as further described in Section 1 below); and

 

WHEREAS,
Service Provider wishes to provide to Customer the Services, subject to the terms and conditions of this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants, terms, and conditions set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1.
Services.

 

During
the Term, Service Provider will receive, install, operate, manage and maintain the Customer Mining Equipment on the Premises in accordance
with this Agreement. Service Provider agrees that all operation of the Customer Mining Equipment will be on Customer’s behalf,
subject to the fees and costs set forth in this Agreement. Service Provider shall deliver the Services in a professional manner and in
keeping with commercially reasonable best practices in the industry, but in no case less in all material respects than the standard of
similar service that Service Provider provides to itself and its controlled affiliates.

 

		1.1	Colocation.

 

		1.1.1	First
                                            Pod Installation. On or around September 15, 2021, Customer
                                            will provide to Service Provider a completed Exhibit B and the First Pod Mining Equipment
                                            for installation on the Premises. Within fifteen (15) business days of receipt of such completed
                                            Exhibit B and First Pod Mining Equipment, Service Provider will install and begin operation
                                            of the First Pod Mining Equipment on the Premises such that the First Pod Mining Equipment
                                            meets the operation requirements in Section 1.2 (the “First Pod Installation”).
                                            

 

		1.1.2	Second
                                            Pod Installation. Following the Completion Notice, Customer
                                            will take commercially reasonable best practices to provide to Service Provider a completed
                                            Exhibit C and the Second Pod Mining Equipment for installation on the Premises. Within fifteen
                                            business (15) business days of receipt of such completed Exhibit C and Second Pod Mining
                                            Equipment, Service Provider will install and begin operation of the Second Pod Mining Equipment
                                            on the Premises such that the Second Pod Mining Equipment meets the operation requirements
                                            in Section 1.2 (the “Second Pod Installation”).

 

		1.1.3	Third
                                            Pod Installation. Following the Completion Notice, Customer
                                            will take commercially reasonable best practices to provide to Service Provider a completed
                                            Exhibit D and the Third Pod Mining Equipment for installation on the Premises. Within fifteen
                                            (15) business days of receipt of such completed Exhibit D and Third Pod Mining Equipment,
                                            Service Provider will install and begin operation of the Third Pod Mining Equipment on the
                                            Premises such that the Third Pod Mining Equipment meets the operation requirements in Section
                                            1.2 (the “Third Pod Installation”).

 

     

     

    

 

		1.1.4	Fourth
                                            Pod Installation. Following the Completion Notice, Customer
                                            will take commercially reasonable best practices to provide to Service Provider a completed
                                            Exhibit E and the Fourth Pod Mining Equipment for installation on the Premises. Within fifteen
                                            (15) business days of receipt of such completed Exhibit D and Fourth Pod Mining Equipment,
                                            Service Provider will install and begin operation of the Fourth Pod Mining Equipment on the
                                            Premises such that the Third Pod Mining Equipment meets the operation requirements in Section
                                            1.2 (the “Fourth Pod Installation”;
                                            and together with the First Pod Installation, the Second Pod Installation and the Third Pod
                                            Installation, each a “Pod Installation”,
                                            and collectively, the “Pod Installations”).

 

		1.1.5	Infrastructure
                                            Development. Service Provider agrees to make all necessary
                                            improvements and developments to the Premises to accommodate the Second Pod Mining Equipment,
                                            Third Pod Mining Equipment and Fourth Pod Mining Equipment, including all necessary cable,
                                            electrical, transformers and other infrastructure to enable the Second Pod Mining Equipment,
                                            Third Pod Mining Equipment and Fourth Pod Mining Equipment to operate in accordance with
                                            the requirements in Section 1.2 (the “Infrastructure Development”)
                                            as follows:

 

		(a)	Service
                                            Provider agrees to use commercially reasonable best efforts to complete the Infrastructure
                                            Development as promptly as practicable and provide Customer periodic updates as to progress
                                            toward completion of the Infrastructure Development; 

 

		(b)	Within
                                            5 business days of receiving the Infrastructure Investment, Service Provider shall order
                                            all transformers, power distribution units, panels, breakers and switch gear required for
                                            the Infrastructure Development and shall promptly send confirmation of same to Customer;
                                            

 

		(c)	Within
                                            5 business days of receiving the Infrastructure Investment, Service Provider shall commence
                                            work on preparing the Premises to accommodate the Second Pod Mining Equipment, Third Pod
                                            Mining Equipment and Fourth Pod Mining Equipment; 

 

		(d)	Service
                                            Provider shall complete its improvement and development within 45 (forty-five) days of Service
                                            Provider’s receipt of the transformers, power distribution units and switch gear ordered
                                            pursuant to Subsection (b) of this paragraph (the “Planned
                                            Development Date”); 

 

		(e)	Upon
                                            completion of the Infrastructure Development of each Pod Installation in accordance with
                                            this Section, Service Provider will provide to Customer a written notice certifying that
                                            the Infrastructure Development for that pod is complete and attaching invoices for vendor
                                            and other costs in connection with the Infrastructure Development (together, and for each
                                            respective pod, the “Completion
                                            Notice”); provided, however, that immaterial developmental
                                            items that would not impair Service Provider’s ability to fully perform its obligations
                                            under this Agreement can be completed by a commercially reasonable time that follows the
                                            Planned Development Date and shall not delay the delivery to Customer of the Completion Notice.
                                            

 

    2

     

    

 

		1.1.6	Failure
                                            to Complete Infrastructure Development. If Service Provider
                                            fails to complete the Infrastructure Development by the Planned Development Date except for
                                            those immaterial development items noted in Section 1.1.5(e) herein, Service Provider will
                                            promptly pay to Customer the Late Development Fee, assessed at the end of each week following
                                            the Planned Development Date. The “Late Development Fee”
                                            is equal to 0.25% of the Infrastructure Investment assessed at the end of each week following
                                            the Planned Development Date and adjusted pro rata based on a percentage of the MWh that
                                            have been completed and delivered. If Service Provider fails to complete the Infrastructure
                                            Development within sixty (60) days following the Planned Development Date, Customer may terminate
                                            this Agreement and is entitled to a refund of all Infrastructure Investment paid to Service
                                            Provider as of the termination.

 

1.2 
Operation. Within five (5) days of each Pod Installation, Service Provider will in each case operate the relevant Customer Mining
Equipment on the Premises for the purpose of generating Digital Assets and make commercially reasonable best efforts to minimize interruptions
in the operation of the Customer Mining Equipment. If Service Provider fails to provide an Uptime of 98.5% or better, the Performance
Fee shall be reduced as described in Section 4.2.

 

1.3 
Management and Maintenance. Throughout the Term, Service Provider shall be responsible for the management and maintenance of the
Customer Mining Equipment. Service Provider’s responsibilities will include (i) ongoing monitoring of performance metrics in an
effort to maximize miner performance; (ii) Premises security; (iii) overall Premises maintenance; (iv) power and infrastructure maintenance;
(v) Premises safety protocols; (vi) power procurement and billing; (vii) heat management; (viii) payment and management of employees
and contractors performing services related to this Agreement; and (ix) all other such services as required for the Customer Mining Equipment
to achieve the operation requirements in Section 1.2, but in no event will Service Provider’s services be less than the services
that Service Provider uses to manage and maintain the mining equipment belonging to Service Provider or Service Provider’s controlled
affiliates. All such maintenance shall be performed in a diligent, competent and workmanlike manner. Service Provider, at its expense,
will make commercially reasonable best efforts to perform all upgrades with a goal for the software or firmware of Customer Mining Equipment
to maximize Uptime and Generated Digital Assets. Service Provider, with the consent of Customer and at Customer’s expense in respect
of out-of-pocket and third-party expenses, shall address and facilitate repairs to Customer Mining Equipment, payable within thirty (30)
days by Customer upon receipt of evidence of such expenses paid by Service Provider. For significant third-party repair expenses, Service
Provider reserves the right to request that Customer either advance funds for the expenses or pay the third party directly.

 

2.
Allocation of Mining Power and Deposit of
Digital Assets.

 

2.1 
Allocation of Mining Power. Service Provider shall provide the Services such that the Customer will use the Customer Mining Equipment
to Mine the cryptocurrency Bitcoin (BTC), unless otherwise agreed to in writing by the Customer and Service Provider. For avoidance of
doubt, and in case of a hard fork of the Bitcoin protocol, under this agreement “Bitcoin (BTC)” shall mean the forked chain
as set forth by Customer. Service Provider shall not “merge mine” or otherwise use the Customer Mining Equipment to mine
any other Digital Asset not expressly stated herein unless otherwise agreed to in writing by the Customer and Service Provider.

 

2.2 
Deposit of Digital Assets. Promptly following the end of each twenty-four (24) hour period during the Term (adjusted as need for
non-standard, non-twenty-four-hour (24) days) (each period, a “Payout Period”), but in no event more than two (2)
hours following the conclusion of a Payout Period, Service Provider shall deposit the Generated Digital Assets in the Customer Wallet.
On a bi-weekly basis Customer shall deposit the Performance Fee, as calculated and subject to adjustments pursuant to this Agreement,
in the Service Provider Wallet, and the Parties shall cooperate in determining the timing, amount, reconciliations, and other items related
to such payment of the Performance Fee.

 

    3

     

    

 

2.3 
Monitoring. Within five (5) days of the First Pod Installation, Service Provider will provide all necessary access to Customer
to remotely monitor – in person or remotely – the Generated Digital Assets and other metrics as reasonably requested by Customer,
but in all cases including any and all control panels, access methods, and other features or metrics available to Service Provider. Customer
shall reasonably cooperate with Service Provider such that Customer will grant to Service Provider access to data concerning the Bitcoin
(BTC) generated under this Agreement needed by Service Provider to perform its Services.

 

3.
Allocation of Costs.

 

3.1 
Power Costs. Service Provider may invoice Customer, and Customer shall pay, for the actual expenses incurred by Service Provider
for the energy used by the Customer Mining Equipment for each month (“Power Costs”), which invoice shall be due 15
days after invoicing. Such invoices shall include a copy of the power invoices that Service Provider received, reflecting the actual
costs paid by Service Provider, and any detail breaking down Customer’s allocation of such Power Costs. Customer shall be responsible
for advancing or securing any deposit or prepayment required by the power provider and monthly Power Costs in respect of the Services,
in such manner as may be agreed to by the Parties. For the avoidance of doubt, this provision applies only to the power consumed in respect
to the Services and does not require Customer to advance or secure deposit for other power BlockFusion may require for other aspects
of its operation.

 

3.2 
Power Procurement. Service Provider agrees during the Term to use commercially reasonable best efforts to continually lower Power
Costs by securing a power purchase or similar agreement, and to keep Customer fully informed as to the status of such efforts and the
details of any prospective agreement. Service Provider shall consult with Customer prior to executing any material agreement involving
the procurement of power. The Parties shall endeavor to at meet at least quarterly to discuss options for improving power procurement.

 

3.3 
Management Costs. At the end of each month during the Term, Service Provider may invoice Customer, and Customer shall pay, for
the Management Costs applicable for such month, which invoice shall be due 15 days after invoicing. The “Management Costs”
are equal to two USD ($2) for per miner of Customer Mining Equipment being operated on the Premises.

 

4.
Performance Fee.

 

4.1 
Performance Fee. In exchange for performance of the Services, Service Provider will receive the Performance Fee for each Payout
Period during the Term in accordance with this Agreement, and Customer authorizes Service Provider to deduct all undisputed Performance
Fees from the Generated Digital Assets. The “Performance Fee”, in respect of the Services relating to the first 20.0
megawatt hours (“MWHrs”) of load power, is equal to thirty percent (30%) of the Net Digital Assets for any Payout
Period, adjusted downward for any Uptime Adjustments, Cost adjustments, or any other deductions provided in this Agreement, and, in respect
of the Services relating to the subsequent 15.0 MWHrs of load power, is equal to twenty percent (20%) of the Net Digital Assets for any
Payout Period, adjusted downward for any Uptime Adjustments, Cost adjustments, or any other deductions provided in this Agreement. The
“Net Digital Assets” for a Payout Period means the Generated Digital Assets minus the amount of Digital Assets
that have a value that is equal to the Estimated Daily Costs for Mining such Digital Assets for such Payout Period (“Digital
Asset Cost Equivalent”).

 

    4

     

    

 

4.2 
Cost Adjustment. At the end of each month during the Term, Service Provider will generate a report showing (i) the difference
between the Estimated Monthly Costs and actual Costs for such month and (ii) the difference between the Performance Fee paid during such
month and the Performance Fee that would have been paid in such month if Net Digital Assets were calculated using actual daily Costs
rather than Estimated Daily Costs (“Performance Fee Adjustment”). The Performance Fee Adjustment will be automatically
applied to the Digital Asset Customer Allocation for the next month so that the Parties receive the amounts they would have received
if the Performance Fee were calculated using actual daily Costs.

 

4.3 
Uptime Adjustments. If Service Provider fails to provide an Uptime of 98.5% or better in any calendar month, provided that the
failure to achieve at least an Uptime of 98.5% was not caused principally by Customer or a third party not under the direct control of
Service Provider, then the total Performance Fees paid for such month shall be reduced by ten percent (10%) (“Uptime Adjustment”)
(e.g. a thirty percent (30%) performance fee would be adjusted to twenty seven percent (27%); and twenty percent (20%) performance fee
would be adjusted to eighteen percent (18%)). The Uptime Adjustment for an applicable month will be automatically deducted from the Performance
Fees paid during the following month. Service Provider shall provide the Uptime statistics to Customer no later than five (5) calendar
days after the beginning of each calendar month and shall include Uptime statistics in any Audit, as defined in Section 5.

 

4.4 
Disputes. Customer may, in good faith, dispute any invoice or any part thereof (a “Disputed Amount”) by submitting
a written notice of such dispute along with reasonable supporting documentation within ten (10) calendar days of the date of the initial
invoice on which the Disputed Amount appears. Service Provider will review the Disputed Amount after its receipt of the relevant notice
and will provide Customer with any and all evidence demonstrating the propriety of the invoice. If the amount was billed in error, a
credit for the amount invoiced incorrectly will be made to the next invoice. If the amount was invoiced correctly, Customer will pay
the amount by the due date of the next invoice.

 

5.
Records and Reporting.

 

Service
Provider will prepare reports, per Payout Period, regarding Generated Digital Assets and related Costs and Performance Fees for the Payout
Period, and provide Customer with access to a copy of such reports on a monthly basis or as reasonably requested by Customer, the form
and substance of such reports to be reasonably agreed by the Parties with the goal of providing Customer full transparency as to the
operations and output of the mining activities that lead to the generation, or lack thereof, of Bitcoin (BTC). Customer may at any time
request access of Service Provider’s facilities, books, and records to determine whether the Performance Fees and Costs charged
to Customer during a Payout Period under this Agreement were calculated in accordance with this Agreement (each such request, an “Audit”).
Customer shall minimize the burden any Audit may cause Service Provider provided that such efforts shall not impair Customer’s
rights under this Agreement. Service Provider will grant Customer such access within a commercially reasonable time period, but in no
case longer than five business (5) days. If it is discovered that Service Provider has overcharged Customer, then Service Provider shall
pay Customer the difference between the charged amount and the actual amount. If it is discovered that Service Provider has undercharged
Customer, then Customer shall pay Service Provider the difference between the charged amount and the actual amount.

 

    5

     

    

 

6.
Infrastructure Investment.

 

Infrastructure
Investment. Within five (5) business days following the Effective Date, Customer shall pay Service Provider in advance a sum of three
million seven hundred fifty thousand USD ($3,750,000) (“Infrastructure Investment”), wired to a United States bank
account, to be used by Service Provider solely toward Qualified Development Expenses. “Qualified Development Expenses”
means actual bona fide expenses incurred by the Service Provider as a direct result of the Infrastructure Development. Expenses shall
not qualify as Qualified Development Expenses unless Service Provider provides Customer with third-party receipts and invoices evidencing
such expenses. Promptly following the Planned Development Date (as adjusted for transformer delays pursuant to Subsection 1.1.4 herein),
Service Provider shall provide Customer with all third-party receipts and invoices evidencing the Qualified Development Expenses. If
the Qualified Development Expenses are less than the amount of the Infrastructure Investment, then Service Provider shall promptly pay
to Customer that amount which is the difference between the Infrastructure Investment and the Qualified Development Expenses, such difference
in amount paid to Customer being the “Infrastructure Investment Reimbursement.”

 

7.
Contractors.

 

Service
Provider may use its affiliates and any third-party contractors, vendors and/or service providers to provide the Services (in whole or
in part) (“Contractors”), in each case of a material contractor, vendor and/or service provider, only with Customer’s
prior written consent, not to be unreasonably withheld or delayed. Service Provider is jointly and severally liable for the acts and
omissions of any Contractor and the acts and omissions of any Contractor will be treated as the acts and omissions of Service Provider
under this Agreement. The Parties agree that the Contractors identified in Exhibit F are approved.

 

8.
Ownership.

 

For
the avoidance of doubt, as between the Parties, all Customer Mining Equipment and Digital Asset Customer Allocation shall remain the
sole property of Customer and will not be construed as fixtures or fittings or otherwise attached to a Service Provider facility. As
between the Parties, Service Provider retains title to all racking, connectors, fittings, parts and other materials used or provided
by Service Provider at the Premises to provide Customer with the Services. Upon termination or expiration of this Agreement, the Parties
shall take all required actions under Section 12.4.

 

9.
Insurance.

 

As
of the Effective Date and during the term of this Agreement, to the extent available at commercially reasonable costs, Service Provider
agrees to keep in place insurance of at least the policy types and for the amounts listed in Schedule 1. In respect of Customer Mining
Equipment and Digital Asset Customer Allocation that would not benefit from Service Provider’s insurance policies in effect as
of the Effective Date, or if the insurance described in Schedule 1 should not be available at commercially reasonable costs, the Parties
shall cooperate to assess and procure, as they deem commercially reasonable, further insurance for the benefit of Customer; provided,
that, nothing in this Section 9 shall prohibit Customer from independently obtaining insurance of a type and for an amount at its sole
discretion. All insurance policies of Service Provider must be provided by underwriters with at least an A.M. Best rating of “A:XII.”
Customer shall be responsible for the costs directly attributable to insuring Customer Mining Equipment, such as coverage obtained independently
by Customer or costs for adding coverage onto insurance obtained by Service Provider.

 

10.
Disclaimer of warranties; Limitation of Liability.

 

10.1 
DISCLAIMER. EXCEPT AS EXPRESSLY PROVIDED HEREIN, EACH PARTY, ITS AFFILIATES AND ITS AND THEIR THIRD PARTY LICENSORS AND SERVICE
PROVIDERS EACH EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES CONCERNING THE SERVICES OR PROVISION OF THE CUSTOMER MINING EQUIPMENT,
WHETHER ORAL OR WRITTEN, INCLUDING WITHOUT LIMITATION WARRANTIES OF ACCURACY, TIMELINESS, COMPLETENESS, RESULTS, AND THE IMPLIED WARRANTIES
OF NON-INFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, EVEN IF A PARTY, ITS AFFILIATES AND ITS AND THEIR THIRD PARTY
LICENSORS OR SERVICE PROVIDERS HAVE BEEN INFORMED OF SUCH PURPOSE, OR ANY REPRESENTATIONS AND WARRANTIES ARISING FROM COURSE OF PERFORMANCE,
COURSE OF DEALING, OR USAGE OF TRADE. CUSTOMER, ITS AFFILIATES, AND ITS AND THEIR THIRD-PARTY LICENSORS AND SERVICES PROVIDERS SHALL
NOT BE RESPONSIBLE FOR ANY USE, MAINTENANCE, STORAGE, HOSTING, OR RECEIPT OF THE CUSTOMER MINING EQUIPMENT BY SERVICE PROVIDER OR OTHERS.

 

    6

     

    

 

10.2 
EXCLUSION OF DAMAGES. SUBJECT TO SECTION 10.3 (EXCEPTIONS), NEITHER PARTY TO THIS AGREEMENT WILL BE LIABLE FOR ANY
INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES, OR LOST PROFITS (DIRECT OR INDIRECT), OF ANY KIND ARISING OUT OF OR
RELATED TO THIS AGREEMENT, REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE,
EVEN IF INFORMED OF THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE.

 

10.3 
Exceptions. Nothing in this Agreement excludes or limits either Party’s liability
or otherwise limits a Party’s remedies for any of the following:

 

		(a)	death
                                            or personal injury resulting from its negligence or the negligence of its controlled affiliates
                                            in connection with this Agreement;

 

		(b)	fraud
                                            or fraudulent misrepresentation;

 

		(c)	matters
                                            for which liability cannot be excluded or limited under applicable law.

 

11.
RESERVED.

 

12.
Term and Termination.

 

12.1 
This Agreement shall commence on the Effective Date and will remain in effect for two (2) years unless terminated in accordance with
the terms set forth in this Agreement (the “Term”). This Term shall automatically renew for additional one (1) year
terms unless either Party gives at least thirty (30) days’ advance written notice that it does not intend to renew the Agreement.

 

12.2 
Either Party may terminate this Agreement immediately upon written notice to the other Party in the event such other Party (a) files
any petition in bankruptcy; (b) has an involuntary petition in bankruptcy filed against it, which involuntary petition is not discharged
within sixty (60) days; (c) becomes insolvent; (d) makes a general assignment for the benefit of creditors; (e) admits in writing its
inability to pay its debts as they mature; (f) has a receiver appointed for all or any substantial part of its assets; (g) ceases conducting
business in the normal course for at least ninety (90) days; (h) has all or any substantial part of its assets attached in a judicial
proceeding (excluding consensual liens); or (i) experiences an event analogous to any of the foregoing in any jurisdiction in which all
or any substantial part of its assets are situated.

 

12.3 
Either Party may terminate this Agreement upon written notice to the other Party if such other Party breaches any material term or condition
of this Agreement and fails to remedy the breach within thirty (30) days after being given written notice thereof.

 

    7

     

    

 

12.4 
Following the expiration or termination of this Agreement, each Party’s rights and obligations under this Agreement shall terminate
and Customer shall be entitled to the immediate possession of all Customer Mining Equipment. Upon expiration or termination of this Agreement,
the Parties shall cooperate to facilitate the removal of Customer Mining Equipment from the Premises at Customer’s sole cost; provided,
however, that if Customer terminates this Agreement pursuant to Section 12.2 then Customer shall be reimbursed for the reasonable cost
of relocating its Mining Equipment from the Premises.

 

12.5 
If this Agreement is terminated or expires for any reason, Service Provider shall provide Customer with timely supervised access to any
Premises in which Service Provider is hosting Customer’s Mining Equipment and reasonably assist Customer to modify, protect, or
remove the Customer Mining Equipment, and Customer agrees to remove the Customer Mining Equipment in a commercially reasonable timeframe.
The Parties agree that, although Service Provider may store, use, or install the Customer Mining Equipment at its facility, the Customer
Mining Equipment is and shall remain the exclusive property of Customer and shall not be deemed to become a fixture of the Premises or
otherwise so related to the Premises as to give rise to a similar interest to Service Provider under applicable real estate law. Service
Provider shall not grant or otherwise facilitate any third party to obtain any lien, security interest, or other encumbrance to attach
to any of the Customer Mining Equipment or the Digital Asset Customer Allocation, and shall defend and hold Customer harmless from any
claim by a third party of any such lien, security interest, or encumbrance. Service Provider shall take all necessary action to effectuate
the provisions of this Section, including the grant of access to Customer, notwithstanding any adverse condition of Service Provider,
such as bankruptcy or other insolvency proceedings. Service Provider shall promptly notify Customer if any such written claim or written
notice related to the Customer’s Mining Equipment is received by Service Provider.

 

 13. Communications and Notices.

 

13.1 
All notices, requests, or other communications or documents to be given under this Agreement shall be in writing and addressed to the
person(s), and at the addresses, set forth for each Party below:

 

	Service
    Provider:

    BlockFusion
    USA, Inc.

    1
    King Street West, Suite 4800–135

    Toronto,
    Ontario M5H 1A1

    Canada

    ATTN:
    Legal

     

    with
    a copy to:

     

    Michael
    Tomasulo

    Winston
    & Strawn LLP

    333
    South Grande Avenue

    Los
    Angeles, CA 90071
	Customer:

    Bit
    Digital, Inc.

    33
    Irving Place

    New York, NY 10003

    USA

    ATTN:
    Legal

     

    with
    a copy to:

     

    Pratin
    Vallabhaneni

    White
    & Case LLP

    701
    Thirteenth Street, NW

    Washington,
DC 20005-3807 

 

13.2 
Notices shall be deemed effective when sent by e-mail with confirmation of transmission by the transmitting equipment. Each Party may
designate a different address or contact person by notice given in the manner provided in this section.

 

 14. Data Storage and Protection.

 

14.1 
Service Provider shall (a) disclose what data it collects related to this Agreement and the Customer Mining Equipment, (b) disclose how
that data is used and for how long that data is retained, (c) any agreements under which Service Provider provides that data to any third
parties, (d) undertake to protect that data in a commercially reasonable manner, and (e) provide such data to Customer promptly after
demand.

 

    8

     

    

 

14.2 
Service Provider has established and will maintain a business continuity and disaster recovery plan that complies with commercially reasonable
best practices of the cryptocurrency mining industry, and which is reasonably designed to enable Service Provider to perform its obligations
under the Agreement in accordance with the terms hereof without any interruption (the “BCDR Plan”). Upon Customer’s
request, Service Provider will provide Customer with a copy of the BCDR Plan. Service Provider will test the BCDR Plan no less than once
annually and will provide Customer with a certification of the test results no later than thirty (30) days following the completion of
such test, including a detailed description of any material deficiencies and Service Provider’s plan and schedule for curing such
deficiencies. In the event of a business interruption or disaster, Service Provider will activate and comply with its BCDR Plan.

 

14.3 
Service Provider has implemented and will maintain an information security program using commercially reasonable best practices in the
industry that includes policies and procedures that are designed to safeguard Service Provider’s electronic systems and Customer’s
Confidential Information, among other things, unauthorized access or misuse. Service Provider’s information security program will
ensure that the Generated Digital Assets and the Digital Asset Customer Allocation not be subject to any loss, impairment, unauthorized
use, or unauthorized access. In the event of a Data Security Incident (defined below), Service Provider shall promptly notify Customer
and such notice shall include the following information: (i) the timing and nature of the Data Security Incident, (ii) the information
related to Customer that was compromised, including the names of any individual acting on Customer’s behalf in his or her corporate
capacity whose personal information was compromised, (iii) when the Data Security Incident was discovered, and (iv) remedial actions
that have been taken and that Service Provider plans to take. “Data Security Incident” means any (a) unauthorized
access or use of Customer’s information or account, Digital Assets, or Customer’s, Service Provider’s, or its Contractor’s
computers or other information technology systems, (b) incident whereby Customer’s information or Digital Assets is otherwise lost,
stolen or compromised, or (c) incident whereby Service Provider breached its data security obligations, including, but not limited to,
those set forth in this Section 14.3.

 

 15. Representations and Warranties.

 

15.1 
Each Party hereby represents, warrants and covenants to the other Party that: (a) it has full, right, power and authority to enter into
this Agreement and to perform its obligations under this Agreement; (b) the execution of this Agreement and the performance of its obligations
hereunder do not and will not constitute any material breach of any agreement to which it is a party; and (c) it will comply with all
applicable laws that apply to its performance hereunder.

 

15.2 
Each Party hereby represents, warrants and covenants that as between Service Provider and Customer, Customer will be the beneficial owner
of the Digital Asset Customer Allocation and there will be no third-party beneficiaries to the Agreement.

 

15.3 
Service Provider hereby represents, warrants, and covenants that:

 

(i) 
the Service, the Service Provider Software, and the use thereof by Customer as contemplated under this Agreement, do not and will not
infringe, violate, or misappropriate the Intellectual Property Rights of any person or entity anywhere in the world;

 

(ii) 
Service Provider’s facility is and shall remain for the Term in good operating condition and fit for use for Mining operations;

 

(iii) 
Service Provider has no right, interest, or title in the Digital Asset Customer Allocation;

 

    9

     

    

 

(iv) 
the Services and Service Provider Software do not contain or cause any viruses, worms, time bombs, Trojan horses or other harmful, malicious
or destructive code to be installed on or introduced into the Customer Mining Equipment or Customer’s information technology, and
that Service Provider shall use commercially reasonable best efforts to maintain the same. Service Provider will not, including through
its Contractors or otherwise, engage in any acts or fail to take any act that could or does result in the disablement, interference,
or impairment, in whole or in part, of the Mining Equipment or Customer’s information technology;

 

(v) 
Service Provider will secure the Generated Digital Assets and the Digital Asset Customer Allocation, and segregate the Digital Asset
Customer Allocation from both the (a) property of Service Provider and its affiliates, and (b) assets of other customers of Service Provider
or its affiliates;

 

(vi) 
 Service Provider will perform its obligations under the Agreement in compliance with all applicable laws, rules and regulations; and

 

(vii) 
Service Provider possesses, and will maintain, all licenses, registrations, authorizations and approvals required by any governmental
agency, regulatory authority or other party necessary for it to operate its business and engage in the business relating to its provision
of the Services.

 

		15.4	Customer
                                            hereby represents, warrants, and covenants that:

 

(i) 
Customer owns and/or has the beneficial right to use the Customer Mining Equipment;

 

(ii) 
Customer Mining Equipment is in good operating condition, fit for use, free of viruses, worms, time bombs, Trojan horses or other harmful,
malicious or destructive code, and satisfies the specifications for such Customer Mining Equipment in Exhibits B, C, D and E (in each
case, as such exhibits are provided to Service Provider pursuant to Section 1 of this Agreement) when delivered to Service Provider;
and

 

(iii) 
Customer will perform its obligations under the Agreement in compliance with all applicable laws, rules and regulations.

 

(iv) 
Customer has inspected Service Provider’s facility and reviewed Service Provider’s procedures prior to executing this Agreement.

 

 16. Strategic investment.

 

		16.1	Right
                                            of First Refusal.During
                                            the Term and for a twelve (12) month period after the termination of this Agreement (the
                                            “ROFR Period”), Service Provider shall not, directly or indirectly, through
                                            and affiliate or otherwise, enter into any agreement or consummate any transaction with any
                                            third party to finance or otherwise sell any stake in itself or any of its material assets
                                            or business interests (a “Covered Transaction”), provided, however, that
                                            Service Provider may enter into a Covered Transaction that would not impair Service Provider’s
                                            ability to perform its obligations under this Agreement with any third party with whom it
                                            has, as of the Effective Date, had material, documented, and ongoing discussions regarding
                                            such Covered Transaction.

 

    10

     

    

 

		16.1.1	At
                                            any time during the ROFR Period prior to the expiration of the thirty (30) day period following
                                            Customer’s receipt of a notice (the “Offer
                                            Notice”) from Service Provider detailing the material
                                            terms (the “Material Terms”) of a bona
                                            fide offer for a proposed Covered Transaction with a third party (the “Exercise
                                            Period”), Customer may propose to match such terms
                                            by delivering to Service Provider a binding letter of intent subject to customary due diligence
                                            and customary legal terms in a definitive agreement (the “ROFR Offer”)
                                            containing the Material Terms executed by Customer; provided that Customer shall be credited
                                            the amount of the Infrastructure Investment paid and not reimbursed (the “Discount”)
                                            to Service Provider hereunder in satisfying the purchase price provisions of the Material
                                            Terms.

 

		16.1.2	If,
                                            by the expiration of the Exercise Period, Customer has not accepted the ROFR Offer and, provided
                                            that Service Provider has complied with all of the provisions of this Section 16, at any
                                            time during the one hundred thirty five (135) day period following the expiration of the
                                            Exercise Period, Service Provider may consummate the Covered Transaction with the counterparty
                                            identified in the applicable Offer Notice on Material Terms that are the same or more favorable
                                            to Service Provider as the Material Terms set forth in the Offer Notice. If such third-party
                                            transaction is not consummated within such one hundred thirty-five (135) day period, the
                                            terms and conditions of this Section 16 will again apply and Service Provider shall not enter
                                            into any Covered Transaction during the ROFR Period without affording Customer the right
                                            to first refusal on the terms and conditions of this Section 16.

 

		16.1.3	For
                                            the avoidance of doubt, the terms and conditions of this Section 16 apply to each third-party
                                            offer received by Service Provider during the ROFR Period.

 

		16.2	Good
                                            Faith Discussions.The
                                            Parties agree that they will discuss in good faith one or more Covered Transactions during
                                            the Term with pricing that credits the Discount paid to Service Provider hereunder. Except
                                            as expressly set forth herein, nothing in this Section 16 shall obligate either Party to
                                            enter into a Covered Transaction, and each Party shall bear its own costs in respect of any
                                            discussions or negotiations of such Covered Transaction.

 

		16.3	Breakup
                                            Fee.If
                                            the Parties do not enter into definitive agreements in respect of one or more Covered Transactions
                                            pursuant to which Customer obtains in the aggregate of such Covered Transactions the full
                                            economic benefit of the Discount, then, within twelve (12) months following the termination
                                            of this Agreement, Service Provider shall pay to Customer an amount that is equal to the
                                            Infrastructure Investment less any Infrastructure Investment Reimbursements less
                                            any economic benefit obtained by Customer pursuant to a Discount received or to be received
                                            pursuant to definitive documents in respect of one or more Covered Transactions.

 

 17. General provisions.

 

17.1 
No Other Expenses. Other than the fees and expenses expressly provided for herein, each party shall be solely responsible for
its expenses and costs of performing under this Agreement.

 

17.2 
Governing Laws and Venue. This Agreement will be construed in accordance with the laws of the State of Delaware as applied
to contracts made and performed entirely therein, and without giving effect to any choice of law rule that would cause the application
of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the Parties. All disputes,
suits, actions or proceedings (“Action”) relating to this Agreement shall be brought solely in the state or federal
courts located in Wilmington, Delaware. Each Party hereby consents to the exclusive jurisdiction and venue of the state or federal courts
located in Wilmington, Delaware in connection with any such dispute, suit, action or proceeding, and waives any defense of forum inconveniens
in connection therewith. EACH PARTY HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BROUGHT BY OR
AGAINST EITHER PARTY IN CONNECTION WITH THIS AGREEMENT.

 

    11

     

    

 

17.3 
Meet and Confer. The Parties agree to confer regularly about the Services being rendered by Service Provider and each Party agrees
that it will raise any concerns regarding the execution of the obligations under this Agreement in a timely manner so that Parties can
attempt in good faith to resolve them in a timely manner. Each Party agrees that, prior to bringing any Action against the other Party,
the first Party shall offer to meet and confer with the other Party in a good faith in an attempt to resolve such potential Action without
a court proceeding, provided, that nothing in this Section 17.3 shall bar or impair either Party’s respective rights to pursue
all lawful rights and remedies subject to satisfying the requirements of this Section 17.3. To the maximum extent practical in light
of the circumstances, at least 30 (thirty) days prior to initiating any Action, the presidents of the Parties shall meet, in person if
possible, and discuss a resolution of the dispute.

 

17.4 
Assignment. Neither Party shall assign, sublicense or otherwise transfer this Agreement, in whole or in part, to an unaffiliated
third party without the prior written consent of the other Party, which shall not be unreasonably withheld or delayed.

 

17.5 
Entire Agreement. This Agreement, including any updates, exhibits, or amendments, constitutes the complete and exclusive
agreement between the Parties with respect to the subject matter hereof, and supersedes and replaces all prior or contemporaneous discussions,
negotiations, understandings and agreements, written and oral, regarding the same. This Agreement may only be modified by a written instrument
properly executed by the Parties (and such written instrument shall explicitly say that it is an amendment hereto so that no informal
amendment inadvertently occurs).

 

17.6 
Confidentiality. The terms and conditions of this Agreement are the confidential information of each Party. The Services,
the Costs and the Performance Fees (and any other related materials or information provided by Service Provider to Customer) are Service
Provider’s confidential information, regardless of whether they are marked as confidential, proprietary or otherwise. The data
provided by Customer in the context of this Agreement (and any other materials or information provided by Customer to Service Provider)
are Customer’s confidential information, regardless of whether they are marked as confidential, proprietary or otherwise. During
the Term and for five (5) years thereafter, the Parties shall (a) keep such confidential information strictly confidential in a manner
that each Party protects its own confidential or proprietary information of a similar nature (and with no less than reasonable care);
and (b) not disclose such confidential information to any third party other than each Party’s partners, vendors, assignees, purchasers
and prospective purchasers, investors and prospective investors, lenders and prospective lenders, lessors and prospective lessors, and
financial or legal consultants that have a need to know such information and have agreed in writing to keep such information confidential
and not disclose such confidential information, consistent with the terms of this Agreement. Notwithstanding the foregoing, either Party
may disclose confidential information as required by law or by order of a court of competent jurisdiction, provided that, in such event,
(i) such Party will provide the other Party with prompt notice of such obligation and permit the other Party an opportunity to take legal
action to prevent or limit the scope of such disclosure; and (ii) such Party will furnish only that portion of the other Party’s
confidential information which the Party is advised by counsel is legally required and the Parties will exercise commercially reasonable
efforts to obtain assurance that confidential treatment will be accorded to such confidential information. Notwithstanding the foregoing,
the confidentiality obligations set forth in this Section 17.5 do not apply to information which: (a) was in a Party’s possession
before receipt from the other Party; (b) is or becomes a matter of public knowledge through no fault of a Party; (c) was rightfully disclosed
to a Party by a third party without restriction on disclosure; or (d) is developed by a Party without use of the other Party’s
confidential information as can be shown by documentary evidence. Additionally, notwithstanding the foregoing, Service Provider acknowledges
and agrees that Customer is or intends to become a U.S. publicly traded company and may be required to disclose this Agreement and its
related terms in order to comply with applicable securities laws, including its disclosure obligations under the U.S. Securities Exchange
Act of 1934, as amended. Notwithstanding this, the Parties may publicly announce that they have entered into this Agreement without disclosing
the details thereof; provided, that such public announcement may contain details of the general nature of the Services, the names of
the Parties, the MWHrs of load power provided for in the Agreement, the anticipated operational time by when such MWHrs will be available,
and the general nature of the power type (e.g., green).

 

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17.7 
Non-solicitation. From the Effective Date and for nine months thereafter, each Party agrees not to solicit for employment the
employees of the other Party.

 

17.8 
Independent Contractors. Service Provider and Customer are independent contractors, and nothing in the Agreement will create
any partnership, joint venture, agency, franchise, sales representative, or employment relationship between the Parties. Neither Party
is an agent or representative of the other or is authorized to make any warranties or assume or create any other obligations on behalf
of the other.

 

17.9 
Intellectual Property. Nothing in this Agreement shall be deemed to grant to either Party any rights or licenses, by implication,
estoppel or otherwise, to any of the other Party’s Intellectual Property Rights. Neither party shall contest or challenge, or assist
any third party in contesting or challenging, the validity or enforceability of any of the other party’s Intellectual Property
Rights. To the extent Customer utilizes any software or platform created by Service Provider (“Service Provider Software”)
in furtherance of this Agreement, including the dashboard, Service Provider grants to Customer a worldwide, sub-licensable, royalty-free,
fully paid-up, nonexclusive, irrevocable, non-transferable (except as permitted pursuant to Section 17.3) (a) limited license during
the Term to use, test, install, integrate, modify, and reproduce the Service Provider Software in connection with using the Services,
and (b) perpetual license to use, collect, retain, copy, distribute, display (publicly or otherwise), perform (publicly or otherwise),
modify, enhance, and create derivative works of any data displayed or provided by the Service Provider Software.

 

17.10 
Trademarks. Each Party is strictly prohibited from using any product or corporate name, designation, logo, trade name, trademark,
service name or service mark associated with the other party (collectively, “Brand Features”) in any marketing materials,
offering circular, prospectus or otherwise, without the prior written consent of the first Party, which may be withheld by the first
Party in its sole and absolute discretion. Notwithstanding the foregoing, Service Provider hereby grants to Customer a nonexclusive,
non-transferable, non-sublicensable, irrevocable (during the Term), and royalty-free right, subject to the terms of this Agreement, to
display Service Provider’s Brand Features, for the sole and limited purpose of identifying Service Provider as a provider of the
Services, on Customer’s website or to investors or the public, either as required by Customer’s investment activities or
in connection with general factual statements (including, without limitation, as part of its securities or regulatory filings).

 

17.11 
No Exclusivity. This Agreement in no way establishes any exclusive arrangement between Customer and Service Provider. Each Party
acknowledges and agrees that the other Party is free to enter into agreements and other arrangements with any third parties, at any time,
regarding any products or services.

 

17.12 
Parties Are Sophisticated and Represented. No preference shall be given to one Party by virtue of the fact that such Party
did not draft this Agreement. No bias shall be placed against the drafter. Each Party has been advised and offered the opportunity to
seek legal counsel regarding this Agreement. To the extent it chooses not to or to limit such, it hereby waives any later complaint that
it lacked proper counsel or understanding. No failure by any Party to insist upon the strict performance of this Agreement shall constitute
waiver of any breach, covenant, duty, or term herein.

 

    13

     

    

 

17.13 
Counterparts / Execution. The Agreement may be executed in counterparts, which together shall constitute a single instrument,
and may also be executed by electronic signature, and the Parties agree that facsimile, digitally scanned or other electronic copies
of signatures shall be valid and binding as originals.

 

17.14 
Taxes. The Costs and fees set forth herein do not include any foreign, federal, state or local sales, value added, use,
withholding or other similar taxes, tariffs or duties, however designated, levied against the sale, licensing, delivery or use of the
Services (“Taxes”). Each Party shall be responsible for its own Taxes. Customer shall not be liable for any Taxes
based on Service Providers’ net income and ad valorem, personal and real property taxes imposed on Service Provider’s owned
or leased property.

 

17.15 
Force Majeure. No Party shall be liable or responsible to the other Party, or be deemed to have defaulted under or breached this
Agreement, for any failure or delay in fulfilling or performing any term of this Agreement, when and to the extent such party’s
(the “Impacted Party”) failure or delay is caused by or results from the following force majeure events (“Force
Majeure Event(s)”): (a) acts of God; (b) flood, fire, earthquake, epidemics, pandemics or explosion; (c) war, invasion, hostilities
(whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) government order, law, or action that renders
the provision of the Services unlawful or that is so onerous it renders provision of the Services not commercially practicable; (e) embargoes
or blockades in effect on or after the date of this Agreement; (f) national or regional emergency; (g) strikes, labor stoppages or slowdowns,
or other industrial disturbances; (h) telecommunication breakdowns, power outages or shortages, inadequate transportation services, or
inability or delay in obtaining supplies of adequate or suitable materials; and (i) other similar events beyond the reasonable control
of the Impacted Party. The Impacted Party shall give notice within five (5) business days of the Force Majeure Event to the other party,
stating the period of time the occurrence has occurred and is expected to continue. The Impacted Party shall use diligent efforts to
prevent and/or end the failure or delay and ensure the effects of such Force Majeure Event are minimized. The Impacted Party shall resume
the performance of its obligations as soon as reasonably practicable after the removal of the cause. In the event that a Force Majeure
Event cannot be practically cured by the Impacted Party, the Parties shall discuss in good faith whether the contract should be terminated,
in whole or in part, or remain in place.

 

17.16 
Survival. The provisions contained in Sections 8, 10, 11, 13, 16, and 17 and Exhibits A and F shall survive the termination
or expiration of this Agreement.

 

    14

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this
Agreement through their duly authorized officers as of the Effective Date.

 

	Bit
    Digital, Inc.	 	BlockFusion
    USA, Inc.
	 	 	 
	By:
    	/s/
Bryan Bullett 	 	By:	/s/
    Alex Martini
	Name:	Bryan
    Bullet	 	Name:	Alex
    Martini
	Title:	Chief
    Executive Officer	 	Title:	Chief
    Executive Officer

 

    15

     

    

 

Exhibit
A - Definitions

 

		1.	“Costs”
                                            means, collectively, the Power Costs and Management Costs.

 

		2.	“Customer
                                            Wallet” means a digital wallet for storing Digital Assets at an address provided
                                            to Service Provider by Customer in writing (email sufficient).

 

		3.	“Customer
                                            Mining Equipment” means, collectively, the First Pod Mining Equipment, Second Pod
                                            Mining Equipment, Third Pod Mining Equipment and Fourth Pod Mining Equipment. Each specific
                                            device within the Customer Mining Equipment is referred to as a “miner” herein.

 

		4.	“Digital
                                            Asset” means any denomination of cryptocurrencies, virtual currencies or other
                                            digital assets.

 

		5.	“Digital
                                            Asset Customer Allocation” means the Generated Digital Assets minus the
                                            Performance Fee (as adjusted pursuant to the Agreement).

 

		6.	“Downtime”
                                            means, for each calendar month, time that installed, non-defective Customer Mining Equipment
                                            is not available to Mine in accordance with this Agreement, excluding periods of time in
                                            which the Customer Mining Equipment that has been delivered to Service Provider is not available
                                            resulting from or relating to Scheduled Maintenance, Emergency Maintenance or power curtailment
                                            set forth by the power provider.

 

		7.	“Emergency
                                            Maintenance” means critical maintenance of the Customer Mining Equipment or Service
                                            Provider’s facilities that cannot wait for Scheduled Maintenance and would result in
                                            permanent damage to the Customer Mining Equipment if not addressed expeditiously, provided
                                            that such critical maintenance is not required as a result of Service Provider’s acts
                                            or omissions.

 

		8.	“Estimated
                                            Daily Costs” for a given Payout Period are equal to the Estimated Monthly Costs
                                            divided by the number of days in a given month.

 

		9.	“Estimated
                                            Monthly Costs” for a given month means a good-faith estimate made by Service Provider
                                            prior the beginning of such month of the total Costs that will be incurred for such month,
                                            considering the estimated utility rates and energy usage of past months along with any known
                                            changes that may affect these metrics in the given month.

 

		10.	“First
                                            Pod Mining Equipment” means the servers and power supplies provided by Customer
                                            to produce the Mining Power as will be set forth in the form of Exhibit B, which shall be
                                            5.0 MWHrs of load power.

 

		11.	“Fourth
                                            Pod Mining Equipment” means the servers and power supplies provided by Customer
                                            to produce the Mining Power as will be set forth in the form of Exhibit E, which shall be
                                            10 MWHrs of load power.

 

		12.	“Generated
                                            Digital Assets” means, for any Payout Period, the Digital Assets provided as a
                                            reward for Mining by the Customer Mining Equipment.

 

		13.	“Intellectual
                                            Property Rights” means all forms of intellectual property rights and protections
                                            held by such Party and may include without limitation all right, title and interest arising
                                            under U.S. common and statutory law, and under the laws of other countries, in and to all
                                            (a) patents and all filed, pending or potential applications for patents, including any reissue,
                                            reexamination, division, continuation or continuation-in-part applications throughout the
                                            world now or hereafter filed; (b) trade secret rights and equivalent rights; (c) copyrights,
                                            other literary property or authors rights, whether or not protected by copyright or as a
                                            mask work; and (d) proprietary indicia, trademarks, trade names, symbols, domain names, URLs,
                                            logos and/or brand names.

 

    16

     

    

 

		14.	“Mine”
                                            or “Mining” means the process in which transactions for various forms
                                            of Digital Assets are verified and added to a blockchain digital ledger.

 

		15.	“Premises”
                                            means the location at the address [INTENTIONALLY LEFT BLANK], consisting of five (5) acres
                                            and former power plant facilities.

 

		16.	“Second
                                            Pod Mining Equipment” means the servers and power supplies provided by Customer
                                            to produce the Mining Power as will be set forth in the form of Exhibit C, which shall be
                                            10.0 MWHrs of load power.

 

		17.	“Service
                                            Provider Wallet” means a digital wallet for storing Digital Assets at an address
                                            provided to Customer by Service Provider in writing (email sufficient).

 

		18.	“Scheduled
                                            Maintenance” means the periods when Service Provider has scheduled the Customer
                                            Mining Equipment to be unavailable to Mine in accordance with this Agreement for purposes
                                            of preventive and/or corrective maintenance of the Customer Mining Equipment or Service Provider’s
                                            facility, provided that (i) Customer is advised of such periods twenty-four (24) hours in
                                            advance, (ii) any such individual period may not be longer than five (5) hours in length,
                                            and (iii) such periods may not total more than five (5) hours in any calendar month in aggregate.

 

		19.	“Third
                                            Pod Mining Equipment” means the servers and power supplies provided by Customer
                                            to produce the Mining Power as will be set forth in the form of Exhibit D, which shall be
                                            10 MWHrs of load power.

 

		20.	“Uptime”
                                            means, for each calendar month, the availability of the delivered Customer Mining Equipment
                                            for Mining in accordance with this Agreement as a percentage equal to (a) the difference
                                            between the total number of minutes of Downtime in such month and the total number of minutes
                                            in such month, divided by (b) the total number of minutes in such calendar month.

 

 

17

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