Document:

ex_335465.htm

Exhibit 10.2

AMENDMENT NO. 1 TO FORBEARANCE AGREEMENT

 

This AMENDMENT NO. 1 TO FORBEARANCE AGREEMENT (this “Amendment”) is made as of February 14, 2022, by and among ION Geophysical Corporation, a Delaware limited liability company (the “Company”), the guarantors party hereto (the “Guarantors”), and the undersigned beneficial holders (the “Directing Noteholders”) of, in the aggregate, $91,821,000 principal amount of the 8.00% Senior Secured Second Priority Notes due 2025 issued pursuant to the Indenture dated as of April 15, 2021 between the Company, UMB Bank, National Association, as trustee, UMB Bank, National Association, as collateral agent, and the guarantors party thereto, and amends the Forbearance Agreement, dated as of January 14, 2022, by and among the Company, the Guarantors, and the Directing Noteholders (the “Original Agreement,” and as amended by this Amendment, and when taken together as one agreement with the Original Agreement, the “Forbearance Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Original Agreement.

 

WHEREAS, in accordance with Section 8.2 of the Original Agreement, the parties hereto wish to amend the Original Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

	 	
			1.

				
			The Directing Noteholders agree not to withdraw the Direction Letter (delivered to the Trustee on January 14, 2022) during the Forbearance Period.

			

 

	 	
			2.

				
			Amendment to Section 2.1(i) of the Original Agreement.  Section 2.1(i) of the Original Agreement is hereby amended and restated as follows:

			

 

“(i) March 7, 2022 at 11:59 p.m. Eastern Time.”

 

	 	
			3.

				
			Amendment to Section 2.1(ii) of the Original Agreement.  Section 2.1(ii) of the Original Agreement is hereby amended and restated as follows:

			

 

“(ii) February 18, 2022 at 9:00 a.m. Eastern Time, if the Company Parties fail to deliver, or cause to be delivered, to the Directing Noteholders a waiver or forbearance (the “PNC Forbearance”) by PNC Bank, National Association (“PNC”) of any applicable cross-defaults as a result of the Designated Default under that certain Revolving Credit and Security Agreement, dated as of August 22, 2014, by and among PNC, as agent, PNC Capital Markets LLC, as sole lead arranger and bookrunner, the lenders from time to time party thereto, and the Company, and the Guarantors, as amended from time to time.”

 

	 	
			4.

				
			Reference to and Effect on the Forbearance Agreement.  It is the express intention of the parties hereto that this Amendment shall not, and shall not be interpreted to, expand or reduce the rights of any party to the Original Agreement except as and solely to the extent expressly provided herein.  Except as expressly provided by this Amendment, the Original Agreement shall continue and remain in full force and effect in accordance with its terms.  

			

 

	 	
			5.

				
			A copy of the amended and restated Forbearance Agreement incorporating the amendments set forth herein is attached hereto as Exhibit A.

			

 

[Remainder of Page Intentionally Left Blank]

 

 

 

 

 

 

 

 

 

IN WITNESS WHEREOF, this Amendment No. 1 to Forbearance Agreement has been duly executed and delivered by the parties hereto as of the date first written above.

 

	 	ION GEOPHYSICAL CORPORATION
	 	 
	 	By:      /s/ Michael Morrison                                             
	 	Name: Michael Morrison
	 	Title:    EVP & CFO
	 	 
	 	GX TECHNOLOGY CORPORATION
	 	 
	 	By:      /s/ Michael Morrison                                             
	 	Name: Michael Morrison
	 	Title:    EVP & CFO
	 	 
	 	ION EXPLORATION PRODUCTS (U.S.A.), INC.
	 	 
	 	By:      /s/ Michael Morrison                                            
	 	Name: Michael Morrison
	 	Title:   Vice President
	 	 
	 	I/O MARINE SYSTEMS, INC.
	 	 
	 	By:      /s/ Michael Morrison                                             
	 	Name: Michael Morrison
	 	Title:   Vice President
	 	 
	 	GX GEOSCIENCE CORPORATION, S. DE R.L. DE C.V.
	 	 
	 	By:      /s/ Michael Morrison                                             
	 	Name: Michael Morrison
	 	Title:    Vice President and Attorney-in-Fact

 

 

 

 

	 	
			[REDACTED]

			
	 	
			By:     /s/ [Redacted]                                    

			Name: 

			Title: 

			
	 	 
	 	
			[REDACTED]

			
	 	
			By:       /s/ [Redacted]                                    

			Name: 

			Title: 

			
	 	 
	 	
			[REDACTED]

			
	 	
			By:      /s/ [Redacted]                                    

			Name: 

			Title: 

			

 

	 	[REDACTED]
	 	
			By:      /s/ [Redacted]                                    

			Name: 

			Title:   

			
	 	 
	 	[REDACTED]
	 	
			By:       /s/ [Redacted]                                     

			
	 	 
	 	[REDACTED]
	 	
			By:       /s/ [Redacted]                                     

			

 

 

 

 

 

 

Exhibit A

 

Amended & Restated Forbearance Agreement

 

 

 

 

 

FORBEARANCE AGREEMENT

 

This FORBEARANCE AGREEMENT, dated as of January 14, 2022 (this “Forbearance Agreement”), is by and among ION Geophysical Corporation, a Delaware corporation (the “Company”), the guarantors party hereto (the “Guarantors,” and together with the Company, the “Company Parties”), and the undersigned beneficial holders (the “Directing Noteholders”) of, in the aggregate, $91,821,000 principal amount of the 8.00% Senior Secured Second Priority Notes due 2025 (the “Notes”) issued pursuant to the indenture (the “Indenture”) dated April 15, 2021 between the Company, UMB Bank, National Association, as trustee (the “Trustee”), UMB Bank, National Association, as collateral agent, and the guarantors party thereto. The Company Parties and the Directing Noteholders are referred to herein at the “Parties.”

 

RECITALS

 

WHEREAS, as a result of a Default or Event of Default that has occurred and is continuing pursuant to Section 6.01(i) of the Indenture (the “Designated Default”), each of the Company Parties acknowledges and agrees that, subject to the Intercreditor Agreement, the Directing Noteholders are entitled to (i) declare the Notes due and payable pursuant to Section 6.02 of the Indenture, (ii) pursue any available remedy to collect the payment of principal of, premium on, if any, or interest on the Notes or to enforce the performance of any provision of the Note Documents, and (iii) exercise any or all other rights and remedies under the Note Documents or applicable law; 

 

WHEREAS, the Company Parties have requested that the Directing Noteholders (i) temporarily forbear from declaring the Notes due and payable pursuant to Section 6.02 of the Indenture, or otherwise exercising any rights or remedies under the Note Documents or applicable law, and (ii) direct the Trustee to not (a) declare the Notes due and payable pursuant to Section 6.02 of the Indenture, (b) pursue any available remedy to collect the payment of principal of, premium on, if any, or interest on the Notes or to enforce the performance of any provision of the Notes or the Indenture, or (c) otherwise exercise any rights or remedies available under the Indenture or applicable law;

 

WHEREAS, the Directing Noteholders agreed to grant a period of temporary forbearance from exercising such rights and remedies under the Indenture on the terms and subject to the conditions set forth herein;

 

NOW, THEREFORE, in consideration of the agreements contained herein, as well as other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.1 Certain Definitions.   Capitalized terms used (including in the preamble and recitals hereto) but not defined herein shall have the meanings assigned to such terms in the Indenture.

 

 

ARTICLE II

 

FORBEARANCE

 

SECTION 2.1     The “Forbearance Period” shall commence on the Forbearance Effective Date (as defined below) and shall automatically terminate on the earliest to occur of:

 

(i) March 7, 2022 at 11:59 p.m. Eastern Time.

 

(ii)  February 18, 2022 at 9:00 a.m. Eastern Time, if the Company Parties fail to deliver, or cause to be delivered, to the Directing Noteholders a waiver or forbearance (the “PNC Forbearance”) by PNC Bank, National Association (“PNC”) of any applicable cross-defaults as a result of the Designated Default under that certain Revolving Credit and Security Agreement, dated as of August 22, 2014, by and among PNC, as agent, PNC Capital Markets LLC, as sole lead arranger and bookrunner, the lenders from time to time party thereto, and the Company, and the Guarantors, as amended from time to time.

 

(iii)  the occurrence and continuance of any Event of Default under the Note Documents (other than the Designated Default).

 

(iv) the failure of any of the Company Parties to comply with any term, condition, or covenant set forth in Article IV hereof (and such failure continues for three (3) Business Days after an Officer of any of the Company Parties obtains knowledge thereof), or any other material term, condition or covenant of this Forbearance Agreement or the Note Documents.

 

(v) any of the Company Parties contesting or denying in any manner the legality, validity, binding nature or enforceability of the Indenture, or the other Note Documents.

 

(vi) the commencement by any of the Company Parties of any action, application, petition, suit or other proceeding under any bankruptcy, arrangement, reorganization, dissolution, liquidation, insolvency, winding-up or similar law of any jurisdiction now or hereafter in effect, including without limitation, any bankruptcy or insolvency law.

 

(vii) any receiver, receiver-manager, interim receiver, monitor, liquidator, assignee, custodian, trustee, sequestrator or other similar entity appointed in respect of any of the Company Parties or all or any part of their respective assets or operations.

 

(viii) the Trustee or any holder of Notes, other than the Directing Noteholders, (a) declares the Notes immediate due and payable pursuant to Section 6.02 of the Indenture, (b) pursues any available remedy to collect the payment of principal of, premium on, if any, or interest on the Notes or to enforce the performance of any provision of the Note Documents, or (c) pursues any other right or remedy available under the Note Documents or applicable law as a result of the occurrence and continuation of the Designated Default.

 

(xi) the pursuit of any Claim (as defined herein) by any of the Company Parties against any Directing Noteholder or any Releasees (as defined herein) in violation of Section 6.1 hereof (each of the foregoing clauses (i)–(ix), a “Forbearance Default”). 

 

The Company Parties shall provide notice to the Trustee and the Directing Noteholders as soon as possible but in any event within one (1) Business Day of an Officer of any of the Company Parties obtaining knowledge of the occurrence and continuance of any Forbearance Default, which notice shall state that such event occurred and set forth, in reasonable detail, the facts and circumstances that gave rise to such event. Such notice shall be given in accordance with Section 7.05 of the Indenture.

 

SECTION 2.2    Subject to the satisfaction or waiver of the conditions precedent set forth in Article III hereof, during the Forbearance Period, the Directing Noteholders agree to (i) not (a) declare the Notes due and payable pursuant to Section 6.02 of the Indenture, (b) pursue any available remedy to collect the payment of principal of, premium on, if any, or interest on the Notes or to enforce the performance of  any provision of the Note Documents, or (c) otherwise exercise any rights or remedies available under the Note Documents or applicable law in respect of the Designated Default against any of the Company Parties or theirs assets, and (ii) cause to be delivered and not withdrawn or revised, a letter, substantially in the form attached hereto as Exhibit A (the “Direction Letter”), directing the Trustee not to (a) declare the Notes due and payable pursuant to Section 6.02 of the Indenture, (b) pursue any available remedy to collect the payment of principal of, premium on, if any, or interest on the Notes or to enforce the performance of any provision of the Note Documents, or (c) otherwise exercise any rights or remedies available under the Note Documents or applicable law (the “Forbearance”). Upon termination of the Forbearance Period, the Directing Noteholders may, but are not required to, withdraw or revise the Direction Letter. 

 

SECTION 2.3      The Forbearance is limited in nature and nothing contained herein is intended, or shall be deemed or construed (i) to constitute a waiver of the Designated Default or any other existing or future Defaults or Events of Default or compliance with any term or provision of the Note Documents or (ii) to establish a custom or course of dealing between any of the Company Parties, on the one hand, and the Directing Noteholders, on the other hand. Each of the Company Parties acknowledges and agrees that the Directing Noteholders’ agreement hereunder to forbear from exercising their default-related remedies with respect to the Designated Default shall not constitute a waiver of the Designated Default and that, except as expressly set forth in this Forbearance Agreement, the Directing Noteholders expressly reserve all rights and remedies that the Directing Noteholders now or may in the future have under the Note Documents and applicable law in connection with all Defaults or Events of Default (including, without limitation, the Designated Default). Any waiver of any Default or Event of Default (including the Designated Default) would be subject to, and effective only in accordance with, Section 6.04 of the Indenture. Each of the Company Parties acknowledges and agrees that defaulted interest is accruing under the Notes during the Forbearance Period.

 

SECTION 2.4       Upon the termination of the Forbearance Period, (i) the Forbearance shall terminate automatically and be of no further force or effect, (ii) the Directing Noteholders shall have all other rights and remedies available at law or in equity or pursuant to the Note Documents, all of which rights and remedies are fully reserved by the Directing Noteholders and (iii) the Directing Noteholders may, but are not required to, withdraw or revise the Direction Letter or submit a new direction letter to the Trustee. Each of the Company Parties acknowledges that the Directing Noteholders have not made any assurances concerning (i) any possibility of an extension of the Forbearance Period, (ii) the manner in which or whether the Designated Default may be resolved, (iii) whether the Trustee will comply with the Direction Letter, or otherwise exercise any rights or remedies available to the Trustee under the Indenture, or (iv) any additional forbearance, waiver, restructuring or other accommodations, except as set forth herein. The Parties agree that the running of all statutes of limitation and the doctrine of laches applicable to all claims or causes of action that any Directing Noteholder may be entitled to take or bring in order to enforce its rights and remedies against any of the Company Parties are, to the fullest extent permitted by law, tolled and suspended during the Forbearance Period. Each of the Company Parties acknowledges and agrees that any financial accommodation that any Directing Noteholder makes on or after the Forbearance Effective Date with respect to the Notes has been made by any such Directing Noteholders in reliance upon, and is consideration for, among other things, the general releases and indemnities contained in Section 6.1 hereof, and the other covenants, agreements, representations and warranties of the each of the Company Parties hereunder.

 

SECTION 2.5        As consideration for entering into this Forbearance Agreement, the Directing Noteholders acknowledge and consent to each of GX Technology Sismica do Brasil Ltda., ION International S.a.r.l. and ION International Holdings, L.P. (collectively, the “Granting Subsidiaries”) granting Liens to PNC on certain of their assets (the “Subsidiary Liens”) in accordance with the terms of the PNC Forbearance; provided that the Company Parties shall cause the Granting  Subsidiaries to concurrently tender Subsidiary Liens to the Trustee with the same priority and on the same terms as currently exist under the Intercreditor Agreement.

 

ARTICLE III

 

CONDITIONS TO EFFECTIVENESS

 

 

ARTICLE IV

 

TERMS, CONDITIONS

AND COVENANTS DURING THE FORBEARANCE PERIOD

 

 

Each of the Company Parties agrees to comply with the following terms, conditions and covenants during the Forbearance Period:

 

SECTION 4.1    None of the Company Parties shall (i) access any basket, exception or other provision of the Indenture that would require the absence of the occurrence and continuance of a Default or Event of Default, or (ii) utilize any basket or exception that is subject to a dollar basket or leverage threshold.

 

SECTION 4.2    None of the Company Parties shall release (i) any Guarantor from any Note Guarantee, or (ii) any Lien on any property or other assets granted to or held by the Trustee (or any sub- agent thereof) under any Note Document.

 

SECTION 4.3    Each of the Company Parties shall, and shall cause their officers, directors, employees, and advisors (i) to cooperate with the Directing Noteholders in furnishing any diligence materials reasonably requested by the Directing Noteholders regarding the Collateral, or any of the Company Parties’ financial affairs, finances, financial condition, business and operations, and (ii) participate in weekly telephonic conference calls with the Directing Noteholders to discuss, among other things, the Company Parties’ operations, cash position, and asset sale process.

 

SECTION 4.4    The Company Parties shall pay all reasonable fees and expenses of Ropes & Gray LLP, as counsel to the Directing Noteholders pursuant to the existing engagement letter.

 

SECTION 4.5    The Company Parties shall pay all reasonable fees and expenses of the Trustee and its counsel. 

 

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES

 

SECTION 5.1        Each of the Parties hereby represents and warrants as of the date hereof, that the execution, delivery and performance under the Forbearance Agreement (i) is within its corporate powers, (ii) has been duly authorized by all necessary corporate action, as applicable, (ii) does not and will not (a) contravene its certificates of incorporation, by-laws or other governing documents, (b) violate any judgment, order, notice, decree, statute, law, ordinance, rule, or regulation applicable to it or any of its properties or assets, (c) conflict with or result in the breach of, or constitute a default under, or result in or permit the termination or acceleration of, any other contractual obligation, or (d) result in the creation or imposition of any lien or encumbrance upon any property or other assets, and (iv) does not require the consent, authorization, or approval of any governmental authority or any other Person.

 

 

ARTICLE VI

 

GENERAL RELEASE

 

SECTION 6.1        In consideration of, among other things, the Directing Noteholders’ execution and delivery of this Forbearance Agreement, each of the Company Parties, on behalf of itself and its agents, representatives, officers, directors, advisors, employees, subsidiaries, affiliates, successors and assigns (collectively, “Releasors”), hereby forever agrees and covenants not to sue or prosecute against any Releasee (as hereinafter defined) and hereby forever waives, releases and discharges, to the fullest extent permitted by law, each Releasee from any and all claims (including, without limitation, crossclaims, counterclaims, rights of set-off and recoupment), actions, causes of action, suits, debts, accounts, interests, liens, promises, warranties, damages and consequential damages, demands, agreements, bonds, bills, specialties, covenants, controversies, variances, trespasses, judgments, executions, costs, expenses or claims whatsoever, that such Releasor now has or hereafter may have, of whatsoever nature and kind, that are known and now existing, whether arising at law or in equity (collectively, the “Claims”), against any or all of the Directing Noteholders and their respective affiliates, subsidiaries, shareholders and “controlling persons” (within the meaning of the federal securities laws), and their respective successors and assigns and each and all of the officers, directors, employees, agents, attorneys, advisors and other representatives of each of the foregoing (collectively, the “Releasees”), based in whole or in part on facts, that are now known and existing on or before the Forbearance Effective Date, that relate to, arise out of or otherwise are in connection with: (i) any or all of the Note Documents or transactions contemplated thereby or any actions or omissions in connection therewith, or (ii) any aspect of the dealings or relationships between or among any of the Company Parties, on the one hand, and the Directing Noteholders, on the other hand, relating to any or all of the documents, transactions, actions or omissions referenced in clause (i) hereof that have occurred prior to the Forbearance Effective Date; provided that the Company Parties do not release the Releasees from their respective obligations and agreements specifically set forth in this Forbearance Agreement. The receipt by any of the Company Parties of any financial accommodations made by the Directing Noteholders after the date hereof shall constitute a ratification, adoption, and confirmation by the Company Parties of the foregoing general release of all Claims against the Releasees that are based in whole or in part on facts, that are known and now existing prior to the date of receipt of any such financial accommodations. 

 

SECTION 6.2        In entering into this Forbearance Agreement, each of the Company Parties consulted with, and has been represented by, legal counsel and expressly disclaims any reliance on any representations, acts or omissions by any of the Releasees and hereby agrees and acknowledges that the validity and effectiveness of the releases set forth above do not depend in any way on any such representations, acts and/or omissions or the accuracy, completeness or validity thereof. If the any of the Company Parties or any of their successors or assigns or legal representatives violate the provisions of this Section 6.1, the Company Parties, on behalf of themselves and their successors and assigns agree to pay, in addition to any other damages that any Releasee may sustain as a result of such violation, all reasonable attorneys’ fees and costs incurred as a result of such violation. The provisions of this Section 6.1 shall survive the termination of this Forbearance Agreement and the Indenture, the other Note Documents, and payment in full of the Obligations.

 

 

ARTICLE VII

 

EFFECTS ON THE NOTE DOCUMENTS

 

SECTION 7.1    Except as specifically amended or waived herein or contemplated hereby, all Note Documents shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. Each of the Company Parties hereby confirms that the Indenture and the other Note Documents are in full force and effect.

 

SECTION 7.2        Except as expressly set forth herein, the execution, delivery and effectiveness of this Forbearance Agreement shall not directly or indirectly (i) constitute a consent or waiver of any past, present or future violations of any provisions of the Indenture or any other Note Documents nor constitute a novation of any of the Obligations under the Indenture or other Note Documents, (ii) amend, modify or operate as a waiver of any provision of the Indenture or any other Note Documents or any right, power or remedy of any of the Directing Noteholders, (iii) constitute a consent to any merger or other transaction or to any sale, restructuring or refinancing transaction or (iv) constitute a course of dealing or other basis for altering any Obligations or any other contract or instrument. Except as expressly set forth herein, each Directing Noteholder reserves all of its rights, powers, and remedies under the Indenture, the other Note Documents and applicable law. Except as expressly set forth herein, all of the provisions of the Indenture and the other Note Documents, including, without limitation, the time of the essence provisions, are hereby reiterated.

 

SECTION 7.3      On and after the Forbearance Effective Date, (i) each reference in the Indenture to “this Indenture”, “hereunder”, “hereof”, “herein” or words of like import referring to the Indenture, and each reference in the other Note Documents to “Indenture”, “thereunder”, “thereof” or words of like import referring to the Indenture shall mean and be a reference to the Indenture, and this Forbearance Agreement and the Indenture shall be read together and construed as a single instrument and (ii) the term “Note Documents” in the Indenture and the other Note Documents shall include, without limitation, this Forbearance Agreement and any agreements, instruments and other documents executed and/or delivered in connection herewith. Nothing herein shall be deemed to entitle any of the Company Parties to a further consent to, or a further waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Indenture or any other Note Document in similar or different circumstances.

 

SECTION 7.4      Except as expressly contemplated by this Forbearance Agreement, no Directing Noteholder has waived, is by this Forbearance Agreement waiving, and has no intention of waiving (regardless of any delay in exercising such rights and remedies), any unmatured Default or Event of Default that may occur after the Forbearance Effective Date, and no Directing Noteholder has agreed to forbear with respect to any of its rights or remedies concerning any Events of Default that may occur after the Forbearance Effective Date other than the Designated Default.

 

This Forbearance Agreement shall not be deemed or construed to be a satisfaction, reinstatement, novation or release of the Indenture or any other Note Document.

 

 

 

 

ARTICLE VIII

 

MISCELLANEOUS

 

SECTION 8.1      Indemnification. Each of the Company Parties hereby confirms that the indemnification provisions set forth in Section 7.07 of the Indenture shall apply to this Forbearance Agreement and the transactions contemplated hereby.

 

SECTION 8.2       Amendments; Execution in Counterparts; Severability.

 

(a) This Forbearance Agreement may not be amended nor may any provision hereof be waived except pursuant to a writing signed by each of the Parties; and 

 

(b) To the extent any provision of this Forbearance Agreement is prohibited by or invalid under the applicable law of any jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity and only in such jurisdiction, without prohibiting or invalidating such provision in any other jurisdiction or the remaining provisions of this Forbearance Agreement in any jurisdiction.

 

SECTION 8.3       Reaffirmation. Each of the Company Parties confirms and agrees that, notwithstanding the effectiveness of this Forbearance Agreement, each Note Document to which any of the Company Parties is a party is, and the obligations of any of the Company Parties contained in the Indenture, this Forbearance Agreement or in any other Note Document to which any of the Company Parties is a party is, and shall continue to be, in full force and effect, and is hereby ratified and confirmed in all respects, in each case as amended by this Forbearance Agreement. For greater certainty and without limiting the foregoing, the each of the Company Parties hereby confirms that the existing security interests granted by any of the Company Parties in favor of the Trustee, for the benefit of, among others, the Directing Noteholders pursuant to the Note Documents in the Collateral described therein shall continue to secure the obligations of the each of the Company Parties under the Indenture and the other Note Documents as and to the extent provided in the Note Documents.

 

SECTION 8.4       Governing Law; Waiver of Jury Trial; Jurisdiction. THIS FORBEARANCE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. SECTION 14.08 OF THE INDENTURE IS HEREBY INCORPORATED BY REFERENCE INTO THIS FORBEARANCE AGREEMENT AND SHALL APPLY HERETO.

 

SECTION 8.5        Headings. Section headings in this Forbearance Agreement are included herein for convenience of reference only, are not part of this Forbearance Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Forbearance Agreement.

 

SECTION 8.6        Severability. If any provision of this Forbearance Agreement is held to be illegal, invalid or unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Forbearance Agreement shall not be affected or impaired thereby and (ii) the Parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

SECTION 8.7       Counterparts. This Forbearance Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by facsimile or other electronic transmission of an executed counterpart of a signature page to this Forbearance Agreement shall be effective as delivery of an original executed counterpart of this Forbearance Agreement.

 

 

 

[Remainder of page intentionally left blank.]Exhibit 4.1

    

    

    

    

    

    

    AMENDED AND RESTATED

      DECLARATION OF TRUST

      AND

      TRUST AGREEMENT

      OF

      WSHARES BITCOIN FUND

    Dated as of February 11, 2022

    By and Among

    WILSHIRE PHOENIX FUNDS LLC

    and

    DELAWARE TRUST COMPANY

    

    

    
      
        

    

    
    TABLE OF CONTENTS

    Page

    	
            RECITALS

          	
            1

          
	 	 
	
            ARTICLE I DEFINITIONS; THE TRUST

          	
            1

          
	 	 
	
            Section 1.1 Definitions

          	
            1

          
	
            Section 1.2 Name

          	
            7

          
	
            Section 1.3 Delaware Trustee; Offices.

          	
            7

          
	
            Section 1.4 Declaration of Trust

          	
            7

          
	
            Section 1.5 Purposes and Powers

          	
            7

          
	
            Section 1.6 Tax Treatment.

          	
            8

          
	
            Section 1.7 Legal Title

          	
            9

          
	 	 
	
            ARTICLE II THE TRUSTEE

          	
            9

          
	 	 
	
            Section 2.1 Term; Resignation; Removal.

          	
            9

          
	
            Section 2.2 Powers

          	
            10

          
	
            Section 2.3 Compensation of the Trustee

          	
            10

          
	
            Section 2.4 Indemnification.

          	
            10

          
	
            Section 2.5 Successor Trustee

          	
            11

          
	
            Section 2.6 Liability of Trustee

          	
            11

          
	
            Section 2.7 Reliance; Advice of Counsel

          	
            12

          
	
            Section 2.8 Payments to the Trustee

          	
            13

          
	 	 
	
            ARTICLE III SHARES; ASSETS AND LIABILITIES OF TRUST; DISTRIBUTIONS

          	
            13

          
	 	 
	
            Section 3.1 General

          	
            13

          
	
            Section 3.2 Offer of Shares

          	
            13

          
	
            Section 3.3 Book-Entry-Only System.

          	
            14

          
	
            Section 3.4 Assets of the Trust

          	
            15

          
	
            Section 3.5 Liabilities of the Trust

          	
            15

          
	
            Section 3.6 Distributions

          	
            15

          
	
            Section 3.7 Voting Rights

          	
            15

          
	
            Section 3.8 Equality

          	
            16

          
	 	 
	
            ARTICLE IV TRANSFERS OF SHARES

          	
            16

          
	 	 
	
            Section 4.1 General

          	
            16

          
	 	 
	
            ARTICLE V REDEMPTION OF SHARES

          	
            16

          
	 	 
	
            Section 5.1 Redemption of Shares

          	
            16

          
	
            Section 5.2 Right to Reject Redemption

          	
            18

          
	
            Section 5.3 Other Redemption Procedures.

          	
            18

          
	
            Section 5.4 Redemption Orders Irrevocable

          	
            18

          
	
            Section 5.5 Redemptions Paid in Cash

          	
            18

          

    

    

    
      i

      
        

    

    	
            ARTICLE VI SUSPENSION EVENTS

          	
            19

          
	 	 
	
            Section 6.1 Suspension Events

          	
            19

          
	 	 
	
            ARTICLE VII THE TRUST

          	
            20

          
	 	 
	
            Section 7.1 Management of the Trust

          	
            20

          
	
            Section 7.2 Authority of Sponsor

          	
            20

          
	
            Section 7.3 General Prohibitions

          	
            22

          
	
            Section 7.4 Liability of Covered Persons

          	
            22

          
	
            Section 7.5 Certain Duties.

          	
            22

          
	
            Section 7.6 Indemnification of the Sponsor.

          	
            24

          
	
            Section 7.7 Business of Shareholders

          	
            25

          
	
            Section 7.8 Voluntary Withdrawal of the Sponsor

          	
            25

          
	
            Section 7.9 Officer’s Certificate of Sponsor

          	
            25

          
	
            Section 7.10 Authorization of Prospectus

          	
            25

          
	
            Section 7.11 Litigation

          	
            25

          
	
            Section 7.12 Merger or Corporate Reorganization of Sponsor

          	
            25

          
	 	 
	
            ARTICLE VIII THE SHAREHOLDERS

          	
            26

          
	 	 
	
            Section 8.1 No Management or Control; Limited Liability

          	
            26

          
	
            Section 8.2 Rights and Duties

          	
            26

          
	
            Section 8.3 Limitation of Liability

          	
            27

          
	
            Section 8.4 Derivative Actions

          	
            27

          
	 	 
	
            ARTICLE IX BOOKS OF ACCOUNT AND REPORTS

          	
            27

          
	 	 
	
            Section 9.1 Books of Account

          	
            27

          
	
            Section 9.2 Reports.

          	
            27

          
	
            Section 9.3 Tax Matters.

          	
            28

          
	
            Section 9.4 Tax Information

          	
            29

          
	
            Section 9.5 Calculation of Bitcoin Holdings.

          	
            29

          
	
            Section 9.6 Calculation of GAAP NAV.

          	
            31

          
	
            Section 9.7 Fiscal Year

          	
            31

          
	
            Section 9.8 Maintenance of Records

          	
            32

          
	 	 
	
            ARTICLE X FEES AND EXPENSES

          	
            32

          
	 	 
	
            Section 10.1 Sponsor’s Fee

          	
            32

          
	
            Section 10.2 Sponsor-paid Expenses

          	
            32

          
	
            Section 10.3 Additional Trust Expenses

          	
            32

          
	
            Section 10.4 Payment of Fees and Expenses

          	
            33

          
	 	 
	
            ARTICLE XI AMENDMENT OF TRUST AGREEMENT; MEETINGS

          	
            33

          
	 	 
	
            Section 11.1 Amendments to the Trust Agreement.

          	
            33

          
	
            Section 11.2 Meetings of the Trust

          	
            34

          
	
            Section 11.3 Action Without a Meeting

          	
            34

          
	 	 
	
            ARTICLE XII TERM

          	
            34

          

    

    

    
      ii

      
        

    

    

    

    	 	 
	
            Section 12.1 Term

          	
            34

          
	 	 
	
            ARTICLE XIII TERMINATION

          	
            34

          
	 	 
	
            Section 13.1 Events Requiring Dissolution of the Trust.

          	
            34

          
	
            Section 13.2 Distributions on Dissolution

          	
            36

          
	
            Section 13.3 Termination; Certificate of Cancellation

          	
            36

          
	 	 
	
            ARTICLE XIV MISCELLANEOUS

          	
            37

          
	 	 
	
            Section 14.1 Governing Law

          	
            37

          
	
            Section 14.2 Provisions In Conflict With Law or Regulations.

          	
            37

          
	
            Section 14.3 Merger and Consolidation

          	
            38

          
	
            Section 14.4 Construction

          	
            38

          
	
            Section 14.5 Notices

          	
            38

          
	
            Section 14.6 Counterparts; Electronic Transmission

          	
            39

          
	
            Section 14.7 Binding Nature of Trust Agreement

          	
            39

          
	
            Section 14.8 No Legal Title to Trust Estate

          	
            39

          
	
            Section 14.9 Creditors

          	
            39

          
	
            Section 14.10 Integration

          	
            39

          
	
            Section 14.11 Goodwill; Use of Name

          	
            39

          
	 	 
	
            EXHIBIT A  CERTIFICATE OF TRUST

            

          	
            A-1

          

    

    

    
      iii

      
        

    

    
    AMENDED AND RESTATED DECLARATION OF TRUST

      AND TRUST AGREEMENT

    This AMENDED AND RESTATED DECLARATION OF TRUST AND TRUST AGREEMENT of WSHARES BITCOIN FUND is made and entered into as of the 11th day of February, 2022, between WILSHIRE PHOENIX FUNDS LLC, a Delaware limited liability
      company, and DELAWARE TRUST COMPANY, a Delaware corporation, as trustee.

    RECITALS

    WHEREAS, Wilshire Phoenix Funds LLC and the Trustee have heretofore created a
      Delaware statutory trust pursuant to the Delaware Trust Statute (as hereinafter defined) by entering into a Trust Agreement dated as of April 29, 2020 (the “Existing Agreement”), and by executing and filing
      with the Secretary of State of the State of Delaware the Certificate of Trust;

    WHEREAS, on April 14, 2021, the Trustee, at the instruction of the Sponsor, filed
      a Certificate of Amendment to the Certificate of Trust amending the Trust’s name from “Bitcoin Commodity Trust” to “wShares Bitcoin Commodity Trust”;

    WHEREAS, on February 4, 2022, the Trustee, at the instruction of the Sponsor,
      filed a Certificate of Amendment to the Certificate of Trust amending the Trust’s name from “wShares Bitcoin Commodity Trust” to “wShares Bitcoin Fund”;

    WHEREAS, the parties hereto desire to amend and restate the Existing Agreement in
      its entirety and to provide for the matters set forth herein;

    NOW, THEREFORE, in consideration of the agreements and obligations set forth
      herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby amend and restate the Existing Agreement in its entirety and agree as follows:

    ARTICLE I

      

      DEFINITIONS; THE TRUST

    SECTION 1.1  Definitions. As used in this Agreement, the following terms
      shall have the following meanings unless the context otherwise requires:

    “Additional Trust Expenses” has the meaning set forth in Section 10.3.

    “Administration Agreement” means the agreement between the Trust and the
      Administrator which sets forth the obligations and responsibilities of the Administrator in respect of the administration, accounting and recordkeeping of the Trust.

    “Administrator” means UMB Fund Services, Inc., together with its permitted
      successors and assigns, or any other Person from time to time engaged by the Trust to assist in the administration of the Trust.

    
      1

      
        

    

    

    

    “Administrator Fee” means the fee payable to the Administrator for services it
      provides to the Trust, which shall be paid to the Administrator as a Sponsor-paid Expense.

    “Affiliate” means, with respect to any Person, any other Person, directly or
      indirectly, controlling, controlled by or under common control with such Person. For the purposes of this definition, “control” when used with respect to any Person, means the power to direct the management and policies of such Person, directly or
      indirectly, whether through the ownership of voting securities, by contract or otherwise and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

    “Agreement” means this Amended and Restated Declaration of Trust and Trust
      Agreement, as the same may be amended, restated, amended and restated or otherwise modified from time to time.

    “Auditor” means Citrin Cooperman & Company, LLP, together with its permitted
      successors and assigns, or any other Person from time to time engaged by the Trust to assist with auditing the Trust.

    “Bankruptcy Code” means Title 11 of the United States Code (11 U.S.C. Section 101
      et seq.), as amended.

    “Beneficial Owner” means any Person owning a beneficial interest in any Shares,
      including a person who holds Shares through or on behalf of any Shareholder.

     “bitcoin” means a digital asset based on the cryptographic protocols used by the
      decentralized, peer-to-peer bitcoin computer network.

    “Bitcoin Custodian” means Fidelity Digital Asset Services, LLC, together with its
      permitted successors and assigns, or any other Person from time to time engaged by the Trust to assist with custody of the Trust’s bitcoin.

     “Bitcoin Custodian Fee” means the fees payable to the Bitcoin Custodian pursuant
      to the Bitcoin Custody Agreement for the services it provides to the Trust.

    “Bitcoin Custody Agreement” means the agreement between the Trust and the Bitcoin
      Custodian which sets forth the obligations and responsibilities of the Bitcoin Custodian in respect of the safekeeping of the Trust’s bitcoin, as the same may be amended from time to time.

    “Bitcoin Holdings” means the value of bitcoin, as determined by reference to the
      Bitcoin Reference Rate, and cash held by the Trust less the Trust’s expenses and other liabilities determined in accordance with Section 9.5.

    “Bitcoin Holdings per Share” means the Trust's Bitcoin Holdings divided by the
      number of outstanding Shares.

    “Bitcoin Network” means the online, end-user-to-end-user network hosting the
      public transaction ledger, known as the Blockchain, and the source code comprising the basis for the cryptographic and algorithmic protocols governing the Bitcoin Network.

    
      2

      
        

    

    

    

    “Bitcoin Price” means (i) with respect to the determination of Bitcoin Holdings in
      accordance with Section 9.5, the price of bitcoin that is based on the Bitcoin Reference Rate, and (ii) with respect to the determination of GAAP NAV, the price of bitcoin that is based on the Trust’s principal market.

    “Bitcoin Reference Rate” means the CME CF BRR or, if the CME CF BRR ceases to be
      published, the rate determined in accordance with the cascading rules set forth in Section 9.5(c).

    “Blockchain” means the public transaction ledger of the Bitcoin Network on which
      miners or mining pools solve algorithmic equations allowing them to add records of recent transactions (called “blocks”) to the chain of transactions in exchange for an award of bitcoin from the Bitcoin Network and the payment of transaction fees, if
      any, from users whose transactions are recorded in the block being added.

    “Business Day” means any day other than a Saturday or a Sunday on which the New
      York Stock Exchange is scheduled to be open for business and, in respect of any action to be taken by the Trustee, on which the Trustee is scheduled to be open for business.

    “Cash Custody Agreement” means the agreement between the Trust and the Cash
      Custodian which sets forth the obligations and responsibilities of the Cash Custodian in respect of the safekeeping of the Trust’s cash, as the same may be amended from time to time.

    “Cash Account” means an account maintained by the Cash Custodian in the name of
      the Trust pursuant to the Cash Custody Agreement, in which U.S. dollars will be held.

    “Cash Custodian” means UMB Bank, N.A., together with its permitted successors and
      assigns, or any other Person from time to time engaged by the Trust to assist with custody of the Trust’s U.S. dollars.

    “Cash Custodian Fee” means the fee payable to the Cash Custodian for the services
      it provides to the Trust.

    “Certificate of Trust” means the Certificate of Trust of the Trust in the form
      filed with the Secretary of State of the State of Delaware pursuant to Section 3810 of the Delaware Trust Statute, as amended or restated from time to time, attached hereto as Exhibit A.

    “CFTC” means the Commodity Futures Trading Commission.

    “CME CF BRR” means the Chicago Mercantile Exchange Bitcoin Reference Rate.

    “Code” means the United States Internal Revenue Code of 1986, as amended.

    “Constituent Platforms” means the trading venues approved by the CME CF
      Cryptocurrency Pricing Products Oversight Committee to serve as a pricing source for the calculation of the CME CF BRR. As of the date of this Agreement, the following trading venues are Constituent Platforms: Bitstamp, Coinbase Pro, itBit, Kraken
      and Gemini.

    
      3

      
        

    

    “Corporate Trust Office” means the principal office at which at any particular
      time the corporate trust business of the Trustee is administered, which office at the date hereof is located at 251 Little Falls Drive, Wilmington, DE 19808, Attention:  Corporate Trust Administration.

    “Covered Person” means the Sponsor and its Affiliates and their respective
      members, managers, directors, officers, employees, agents and controlling persons.

    “Delaware Trust Statute” means the Delaware Statutory Trust Act, Chapter 38 of
      Title 12 of the Delaware Code, 12 Del. C. § 3801 et seq., as the same may be amended from time to time.

    “DTC” means The Depository Trust Company.

    “DTC Participant” means a direct participant in DTC, such as a bank, broker,
      dealer or trust company.

    “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

    “Escrow Agent” means the entity appointed by the Trust to act as escrow agent in
      connection with a Share Placement.

    “Expenses” has the meaning set forth in Section 2.4(a).

    “FinCEN” means the Financial Crimes Enforcement Network of the U.S. Department of
      the Treasury.

    “Fiscal Year” has the meaning set forth in Section 9.7.

    “GAAP” means U.S. generally accepted accounting principles.

    “GAAP NAV” means the value of bitcoin, as determined by reference to the Trust’s
      primary market in accordance with GAAP, and cash held by the Trust less the Trust’s expenses and other liabilities.

    “GAAP NAV per Share” means the Trust's GAAP NAV divided by the number of
      outstanding Shares.

    “Indemnified Persons” has the meaning assigned to such term in Section 2.4(a).

    “Indirect Participants” means those banks, brokers, dealers, trust companies and
      others who maintain, either directly or indirectly, a custodial relationship with a DTC Participant.

    “Initial Issuance Date” means the date on which the initial issuance of Shares
      occurs.

    “IRS” means the U.S. Internal Revenue Service.

    “Liquidating Trustee” has the meaning assigned thereto in Section 13.2.

    “Minimum Redemption Size” means 1,000 Shares.

    
      4

      
        

    

    “OTCQX” shall mean OTC Markets Group, Inc.’s OTCQX Best Marketplace.

    “Partnership Representative” has the meaning assigned thereto in Section
        1.6(b).

    “Partnership Representative Agreement” means the agreement entered into between
      the Partnership Representative and the Trust which sets forth the obligations and responsibilities of the Partnership Representative in respect of the Trust’s tax audits, as the same may be amended from time to time.

    “Partnership Representative Fee” means the fee payable to the Partnership
      Representative for services it provides to the Trust.

    “Percentage Interest” means a fraction, the numerator of which is the number of
      any Shareholder’s Shares and the denominator of which is the total number of Shares of the Trust outstanding as of the date of determination.

    “Person” means an individual, corporation, partnership, joint venture,
      association, limited liability company, joint stock company, trust, unincorporated organization or other entity, including any government agency, commission, board, department, bureau or instrumentality.

    “Record Date” means, with respect to (i) any distribution to Shareholders to be
      made pursuant to this Agreement upon a redemption of Shares, the applicable Redemption Date, (ii) any distribution to Shareholders to be made pursuant to this Agreement upon termination of the Trust, the date that is two (2) Business Days prior to
      the date of such termination, or (iii) any vote of Shareholders pursuant to this Agreement, the date established by the Sponsor or the Administrator, as applicable, for determining who is a Shareholder entitled to such voting right.

    “Redemption Cut-off Date” means the fifth (5th) Business Day prior to a
      Redemption Date.

    “Redemption Date” means the last Business Day of each month.

    “Redemption Order” means a written notice delivered by a Shareholder to the
      Administrator and the Transfer Agent pursuant to Section 5.1(a) in connection with a redemption of its Shares, the form of which is attached to the Registration Statement.

    “Register” means the books and records of the Transfer Agent in which the
      ownership of Shares by each Shareholder will be registered.

    “Registration Statement” means a registration statement of the Trust under the
      Securities Act to register the Trust’s Shares as filed with the SEC from time to time, as the same may at any time and from time to time be amended or supplemented.

    “SEC” means the Securities and Exchange Commission.

    “Securities Act” means the Securities Act of 1933, as amended.

    
      5

      
        

    

    “Service Providers” means the Trustee, the Administrator, the Cash Custodian, the
      Bitcoin Custodian, the Transfer Agent, the Partnership Representative and any other service provider appointed by the Trust to provide delegated services on behalf of the Trust.

    “Service Provider Agreements” means this Agreement, the Administration Agreement,
      the Cash Custody Agreement, the Bitcoin Custody Agreement, the Transfer Agent Services Agreement, the Partnership Representative Agreement and any other agreement entered into with a Service Provider from time to time.

    “Shareholder” means the Person in whose name a Share is registered in the books
      and records of the Trust by the Transfer Agent, which, in the case of any Share registered in DTC, shall be DTC or its nominee, as applicable.

    “Shares” means the common units of fractional undivided beneficial interest in,
      and ownership of, the Trust.

    “Share Placement” has the meaning set forth in Section 3.2(a).

    “Sponsor” means Wilshire Phoenix Funds LLC or any substitute therefor as provided
      herein, or any successor thereto by merger, consolidation or operation of law.

    “Sponsor Fee Basis Amount” has the meaning set forth in Section 9.5(b)(v).

    “Sponsor-paid Expense” and “Sponsor-paid Expenses”
      have the meanings set forth in Section 11.2.

    “Sponsor’s Fee” has the meaning set forth in Section 10.1.

    “Subscription Agreement” means a subscription agreement of the Trust executed by a
      Shareholder, as it may be amended or supplemented from time to time in accordance with its terms.

    “Suspension Event” has the meaning set forth in Section 6.1.

    “Transfer Agent” means Broadridge Corporate Issuer Solutions, Inc. together with
      its successors and assigns, or any other Person from time to time engaged by the Trust to assist with transfer agency services for the Trust.

    “Transfer Agent Fee” means the fee (if any) payable to the Transfer Agent for
      services it provides to the Trust.

    “Transfer Agent Services Agreement” means the Agreement between the Transfer Agent
      and the Trust governing the Transfer Agent's duties and obligations, as the same may be amended from time to time.

    “Treasury Regulations” means regulations, including proposed or temporary
      regulations, promulgated under the Code. References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations.

    
      6

      
        

    

    “Trust” means the wShares Bitcoin Fund, a Delaware statutory trust formed pursuant
      to the Certificate of Trust, the business and affairs of which are governed by this Agreement.

    “Trustee” means Delaware Trust Company, its successors and assigns, or any
      substitute therefor as provided herein, acting not in its individual capacity but solely as trustee of the Trust.

    “Trustee Fee” has the meaning set forth in Section 2.3.

    “Trust Estate” means the assets of the Trust, which are comprised solely of
      bitcoin and U.S. Dollars held by or on behalf of the Trust.

    “Website” means www.wshares.com or such other website as may be designated by the
      Sponsor from time to time.

    SECTION 1.2  Name.  The name of the Trust is the “wShares Bitcoin Fund” in which name the Trustee and the Sponsor
      cause the Trust to carry out its purposes as set forth in Section 1.5, make and execute contracts and other instruments in the name and on behalf of the Trust and sue and be sued in the name and on behalf of the Trust.

    SECTION 1.3  Delaware Trustee; Offices.

    (a)  The sole Trustee of the Trust is Delaware Trust Company, which is located at the Corporate Trust Office or at such
      other address in the State of Delaware as the Trustee may designate in writing to the Shareholders. The Trustee shall receive service of process on the Trust in the State of Delaware at the foregoing address.

    (b)  The principal office of the Trust, and such additional offices as the Sponsor may establish, shall be located at such
      place or places inside or outside the State of Delaware as the Sponsor may designate from time to time in writing to the Trustee and the Shareholders. Initially, the principal office of the Trust shall be at 2 Park Avenue, 20th Floor, New
      York, New York 10016.

    SECTION 1.4  Declaration of Trust. The Trust Estate shall be held in trust for the Shareholders. It is the
      intention of the parties hereto that the Trust constitute a statutory trust under the Delaware Trust Statute and that this Agreement constitute the governing instrument of the Trust. It is not the intention of the parties hereto to create a general
      partnership, limited partnership, limited liability company, joint stock association, corporation, bailment or any form of legal relationship other than a Delaware statutory trust that is treated as a partnership for U.S. federal income tax purposes
      and for purposes of applicable state and local tax laws. Nothing in this Agreement shall be construed to make the Shareholders partners or members of a joint stock association. Effective as of the date hereof, the Trustee and the Sponsor shall have
      all of the rights, powers and duties set forth herein and in the Delaware Trust Statute with respect to accomplishing the purposes of the Trust. The Trustee has filed the certificate of trust required by the Delaware Trust Statute in connection with
      the formation of the Trust under the Delaware Trust Statute.

    SECTION 1.5  Purposes and Powers. The purpose of the Trust is for the Shares to closely reflect the value of
      bitcoin, as determined by reference to the Bitcoin Price, and cash held by the Trust less the Trust’s expenses and other liabilities. The Trust shall be authorized to (i) issue Shares

    
      7

      
        

    

    for U.S. dollars through Share Placements, (ii) purchase bitcoin from net proceeds received in connection with the issuance of Shares, (iii)
      pay the Sponsor’s Fee and any Additional Trust Expenses in U.S. dollars and sell bitcoin as necessary to pay the Sponsor’s Fee and any Additional Trust Expenses, (iv) redeem Shares for U.S. Dollars (and therefore sell bitcoin as necessary) pursuant
      to Article V, (v) sell bitcoin upon the termination of the Trust and to distribute the proceeds of such sales in accordance with Section 13.2, and (vi) engage in activities that are necessary to accomplish the foregoing activities or
      are incidental thereto or connected therewith. The Sponsor, on behalf of the Trust, shall also be authorized to cause the sale of the Trust’s assets if the Sponsor determines that such sale is required by applicable law or regulation or in connection
      with the termination and liquidation of the Trust.  The Trust shall not engage in any other business activity and shall not acquire or own any assets other than bitcoin and/or U.S. dollars as provided in this Agreement
        or take any of the actions set forth in Section 7.3.

    SECTION 1.6  Tax Treatment.

    (a)  The Trust shall be treated as a partnership for U.S. federal, state and local tax purposes, and the Auditor shall
      timely file any and all forms required to give effect to such treatment. Each Shareholder shall be treated as a partner of the Trust for all U.S. federal, state and local tax purposes and shall not take a position on his or her U.S. federal, state or
      local tax or information returns that is inconsistent with such treatment. Each Shareholder shall provide the Sponsor and the Auditor with the information required by Section 6031(c) of the Code and the information required by Treasury Regulation
      Section 1.743-1(k) timely and shall provide such other information or certifications as the Sponsor or the Auditor reasonably requires for tax purposes and reasonably requests. The Auditor will timely prepare and file a partnership information return
      (IRS Form 1065) with the IRS for each taxable year of the Trust and will report to each Shareholder his or her allocable share of items of income, gain, loss, deduction, expense and credit of the Trust on Schedule K-1 to IRS Form 1065.

    (b)  Corporation Service Company shall be designated, in the manner prescribed by applicable law, as the partnership
      representative, within the meaning of Section 6223(a) of the Code, and is authorized to act on behalf of the Trust in respect of Trust audits relating to tax returns filed for taxable years beginning after December 31, 2021 (the “Partnership Representative”).  In the event the Trust shall be the subject of an income tax audit by any federal, state or local authority, including administrative settlement and judicial review, the Partnership
      Representative shall be authorized to act for, and its decision shall be final and binding upon, the Trust and each Shareholder.  The Partnership Representative shall have the authority to make, or cause to be made, all relevant decisions and
      elections, including, with respect to audits relating to tax returns filed for taxable years beginning after December 31, 2021, an election under Section 6226 of the Code, as then in effect, and any similar elections under state or local law.  All
      expenses incurred in connection with any such audit, investigation, settlement or review shall be borne by the Trust.

    (c)  Each Shareholder agrees that it shall not, except as required by applicable law, (i) treat, on its own income or
      information tax returns or any information returns that it provides to any broker, nominee or beneficial owner in respect of its Shares, any item of income, gain, loss, deduction, credit, basis or any other tax item relating to its Shares in a manner
      inconsistent with the treatment of such items by the Trust as reflected on the Schedule K-1 to IRS Form 1065 or other information statement furnished to such Shareholder pursuant to this Section 1.6 or (ii) file any claim for a refund
      relating to any such item based on, or which would result in, such inconsistent treatment.

    
      8

      
        

    

    

    

    SECTION 1.7  Legal Title.  Legal title to all of the Trust Estate shall be vested in the Trust as a separate legal
      entity.

    ARTICLE II

      

      THE TRUSTEE

    SECTION 2.1  Term; Resignation; Removal.

    (a)  Delaware Trust Company has been appointed and hereby agrees to serve as the
      Trustee of the Trust. The Trustee is appointed to serve as the trustee of the Trust in the State of Delaware for the purpose of satisfying the requirement of Section 3807(a) of the Delaware Trust Statute that the Trust have at least one trustee with
      a principal place of business in Delaware. The Trust shall have only one Trustee unless otherwise determined by the Sponsor. The Trustee shall serve for the duration of the Trust until the earlier of (i) the effective date of the Trustee’s
      resignation or (ii) the effective date of the removal of the Trustee. The Trustee shall at all times satisfy the requirements of Section 3807(a) of the Delaware Trust Statute, be authorized to exercise corporate trust powers

        under the laws of Delaware and be subject to supervision or examination by federal or state authorities. In case at any time the Trustee shall cease to be eligible to serve as trustee of the Trust in accordance with the provisions of this Section

          2.1, the Trustee shall resign promptly in the manner and with the effect specified in this Article II. Any resignation or removal of the Trustee and appointment of a successor Trustee shall not become effective until a written acceptance of
        appointment is delivered by the successor Trustee to the outgoing Trustee and the Sponsor and any fees and expenses due to the outgoing Trustee are paid. The Trustee may have normal banking and trust relationships with the Sponsor and their
        respective affiliates; provided that none of (i) the Sponsor, (ii) any Person involved in the organization or operation of the Sponsor or the Trust or (iii) any affiliate of any of them may be the Trustee hereunder. The Trust shall have at least
        one trustee with a principal place of business in Delaware. It is understood and agreed by the parties hereto that the Trustee shall have none of the duties or liabilities of the Sponsor and no such duties shall be implied. The Trustee shall have
        no obligation to supervise or monitor the Sponsor or otherwise manage the Trust.

    (b)  The Trustee is permitted to resign upon at least thirty (30) days’ written notice to the Trust and the Sponsor;
      provided, however, such resignation shall not be effective until such time as a successor Trustee has been appointed by the Sponsor and has accepted such appointment in writing.

    (c)  If at any time the Trustee shall cease to be eligible to serve as trustee of the Trust in accordance with the
      provisions of this Agreement, or if at any time the Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or
      control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Sponsor may, immediately upon notice to the Trustee, remove the Trustee and appoint a successor Trustee. Without limiting
      the foregoing, the Sponsor may at any time, upon at least ten (10) days’ prior notice to the Trustee, remove the Trustee and appoint a successor Trustee.

    
      9

      
        

    

    SECTION 2.2  Powers. Except to the extent expressly set forth in Section 1.3 and this Article, the duty
      and authority to manage the affairs of the Trust is vested in the Sponsor, which duty and authority the Sponsor may further delegate as provided herein, all pursuant to Section 3806(b)(7) of the Delaware Trust Statute. The duties of the Trustee shall
      be limited to (i) accepting legal process served on the Trust in the State of Delaware and (ii) the execution of any certificates required to be filed with the Secretary of State of the State of Delaware which the Trustee is required to execute under
      Section 3811 of the Delaware Trust Statute. The Trustee shall provide prompt notice to the Sponsor of its performance of any of the foregoing. Other than the foregoing, the Trustee shall have no other duties (including fiduciary duties) or
      obligations, express or implied, at law or in equity.

    SECTION 2.3  Compensation of the Trustee.  The Trustee shall be entitled to receive, as a Sponsor-paid Expense,
      fees for its services hereunder as set forth in such schedules as shall have been separately agreed to from time to time by the Trustee and the Trust (the “Trustee Fee”), which shall be payable in U.S.
      dollars.  To the extent that any funds are received by the Trustee, the Trustee may earn compensation in the form of short-term interest (“float”) on items like uncashed distribution checks (from the date
      issued until the date cashed), funds that the Trustee is directed not to invest, deposits awaiting investment direction or received too late to be invested overnight in previously directed investments; provided, however that, notwithstanding anything
      contained herein to the contrary, in no event shall the Trustee be entitled to invest any cash held by it in any investments, money market accounts or other sweep vehicles, and instead shall only be entitled to hold such cash in a demand deposit
      account or trust account that does or does not bear interest.

    SECTION 2.4  Indemnification.

    (a)  The Trust shall indemnify and hold harmless the Trustee and any of the officers, affiliates, directors, employees and
      agents of the Trustee (the “Indemnified Persons”) from and against any and all losses, damages, liabilities (including liabilities under state or federal securities laws), claims, actions, suits, costs,
      reasonable expenses, disbursements (including the reasonable fees and expenses of counsel generally and in connection with its enforcement of its indemnification rights), taxes and penalties of any kind and nature whatsoever (collectively, “Expenses”), to the extent that such Expenses arise out of or are imposed upon or asserted at any time against such Indemnified Persons in connection with the execution or delivery of this Agreement, the performance
      of its obligations under this Agreement, the creation, operation or termination of the Trust or the transactions contemplated hereby; provided, however, that (i) the Trust shall not be required to indemnify any Indemnified Person for
      any Expenses which are a result of the willful misconduct, bad faith or gross negligence of an Indemnified Person in connection with its express duties or obligations hereunder and (ii) any such indemnification will be recoverable only from the Trust
      Estate; provided however that, to the extent that the Trust has not satisfied any indemnification obligation set forth in the foregoing sentence with respect to Expenses of any Indemnified Persons, by the thirtieth (30th) day following
      written demand therefor, the Sponsor shall indemnify and hold harmless such Indemnified Persons from and against any and all Expenses and shall pay on demand any such Expenses which remain unpaid.

    
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    For the avoidance of doubt, the Trustee may consult with counsel (who may be counsel for the Trust or the Sponsor).  The reasonable legal
      fees incurred in connection with such consultation shall be reimbursed to the Trustee pursuant to this Section 2.4; provided that no such fees shall be payable to the extent that they are incurred as a result of an Indemnified Person’s gross
      negligence, bad faith or willful misconduct.  As security for any amounts owing to the Trustee under this Section 2.4, the Trustee shall have a lien against the Trust property, which lien shall be senior to the lien of the Sponsor under Section

        7.7.  For the avoidance of doubt, all Expenses to any Indemnified Persons shall be payable in U.S. dollars.

    (b)  The obligations of the Trust and the Sponsor to indemnify the Indemnified Persons under this Section 2.4
      shall survive the resignation or removal of the Trustee and the termination of this Agreement.

    SECTION 2.5  Successor Trustee.  Upon the resignation or removal of the Trustee, the Sponsor shall appoint a
      successor Trustee. Any successor Trustee shall be eligible to act in such capacity in accordance with this Agreement, including satisfaction of the requirements of Section 3807 of the Delaware Trust Statute. Following compliance with this Section
        2.5, the successor Trustee shall become fully vested with all of the rights, powers, duties and obligations of the outgoing Trustee under this Agreement, with like effect as if originally named as Trustee, and shall notify the outgoing Trustee
      of its acceptance of such appointment by providing a written instrument to the outgoing Trustee. At such time, the outgoing Trustee shall be discharged of its duties and obligations under this Agreement. Any business entity into which the Trustee may
      be merged or converted or with which it may be consolidated, or any entity resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any entity succeeding to all or substantially all of the corporate trust
      business of the Trustee, shall be the successor of the Trustee hereunder, to the fullest extent permitted by law without the execution or filing of any paper or any further act on the part of any of the parties hereto. If the Trustee resigns and no
      successor Trustee is appointed within forty-five (45) days after the Trustee notifies the Sponsor of its resignation, the Trustee may petition a court of competent jurisdiction to appoint a successor Trustee.

    SECTION 2.6  Liability of Trustee. Except as otherwise provided in this
      Article II, in accepting the trust created hereby, Delaware Trust Company acts solely as Trustee hereunder and not in its individual capacity, and all Persons having any claim against the Trustee by reason of the transactions contemplated by this
      Agreement and any other agreement to which the Trust is a party shall look only to the Trust Estate for payment or satisfaction thereof. The Trustee shall not be personally liable or accountable hereunder to the Trust or to any other Person or under
      any other agreement to which the Trust is a party, except for the Trustee’s own gross negligence, bad faith or willful misconduct in connection with its express duties or obligations hereunder. In particular, but not by way of limitation:

    (a)  The Trustee shall not be personally liable for any error of judgment made in good faith, except to
      the extent such error of judgment constitutes gross negligence on its part;

    (b)  The Trustee shall have no personal liability or responsibility for the validity or sufficiency of
      this Agreement or for the due execution hereof by the Sponsor;

    
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    (c)  The Trustee shall not have any liability for the acts or omissions of the Sponsor, the Transfer
      Agent, the Administrator, the Bitcoin Custodian, the Cash and Treasury Custodian or any other Person;

    (d)  The Trustee shall have no duty or obligation to supervise the performance of any obligations of
      the Sponsor, the Transfer Agent, the Administrator, the Bitcoin Custodian, the Cash and Treasury Custodian or any other Person;

    (e)  No provision of this Agreement shall require the Trustee to expend or risk its personal funds or
      otherwise incur any financial liability in the performance of any of its rights or powers hereunder, if the Trustee shall have reasonable grounds for believing that the payment of such funds or adequate indemnity against such risk or liability is not
      reasonably assured or provided to it;

    (f)  Under no circumstances shall the Trustee be personally
      liable for any representation, warranty, covenant, agreement or indebtedness of the Trust arising under this Agreement or any other agreements to which the Trust is a party;

    (g)  The Trustee shall not be liable for punitive, exemplary, consequential, special or other similar
      damages for a breach of this Agreement under any circumstances; and

    (h)  The Trustee shall not be obligated to give any bond or other security for the performance of any
      of its duties under this Agreement.

    SECTION 2.7  Reliance; Advice of Counsel.

    (a)  In the absence of bad faith, the Trustee shall incur no liability to anyone in acting on any signature, instrument,
      notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper reasonably believed by it to be genuine and reasonably believed by it to be signed by the proper party or parties. The Trustee may accept a
      certified copy of a resolution of the board of directors or other governing body of any corporate party as conclusive evidence that such resolution has been duly adopted by such body and that such resolution is in full force and effect. As to any
      fact or matter the manner of ascertainment of which is not specifically prescribed in this Agreement, the Trustee may for all purposes hereof rely on a certificate, signed by the Sponsor or the Administrator, as to such fact or matter, and such
      certificate shall constitute full protection to the Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon.

    (b)  In the exercise or administration of the Trust hereunder and in the performance of its duties and obligations under
      this Agreement, the Trustee (i) may act directly or through agents or attorneys pursuant to agreements entered into with any of them, and the Trustee shall not be liable for the default or misconduct of such agents or attorneys if such agents or
      attorneys shall have been selected by the Trustee in good faith and with due care and (ii) may consult with counsel, accountants and other skilled professionals to be selected by it in good faith  and with due care and employed by it. The Trustee
      shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the written opinion or advice of any such counsel, accountant or other such skilled professionals.

    
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    SECTION 2.8  Payments to the Trustee. Any amounts paid to the Trustee
      pursuant to this Article II shall be deemed not to be a part of the Trust Estate immediately after such payment. Any amounts owing to the Trustee under this Agreement shall constitute a claim against the Trust Estate.

    ARTICLE III

      

      SHARES;

      ASSETS AND LIABILITIES OF TRUST; DISTRIBUTIONS

    SECTION 3.1  General. The Shares shall represent fractional undivided
      beneficial interests in, and ownership of, the Trust.  The Sponsor shall have the power and authority, in its sole discretion, without action or approval by the Shareholders, to cause the Trust to issue Shares from time to time. The number of Shares
      authorized shall be unlimited, and the Shares so authorized may be represented in part by fractional Shares. The Trust shall issue Shares solely in exchange for cash in U.S. dollars. The minimum initial investment for Shares shall be $25,000 and
      investments in excess thereof shall be in integral multiples of $1,000.  All Shares when so issued shall be fully paid and non-assessable. The Shares shall be unrestricted, registered Shares and, subject to Section 3.3, DTC shall act as
      securities depository for such Shares.  Every Shareholder, by virtue of having purchased or acquired a Share, shall be deemed to have expressly consented and agreed to be bound by the terms of this Agreement.

    SECTION 3.2  Offer of Shares.

    (a)  The initial Shares sold by the Trust will be sold through underwriters, placement agents or distributors (a “Share Placement”).

    (b)  From time to time, at the sole discretion of the Sponsor, the Trust may issue additional Shares after the Initial
      Issuance Date. Additional Shares issued after the Initial Issuance Date will be sold through Share Placements.  Notwithstanding anything contained in this Agreement to the contrary, in no event shall the Trust offer any additional Shares in violation
      of applicable law, including but not limited to Regulation M promulgated under the Securities Act.  In order to comply with Regulation M, any distribution relating to a future offering shall end no later than the Business Day prior to the next
      Redemption Date and price no earlier than the date that is six (6) Business Days after the most recent Redemption Date.  The Sponsor shall from time to time and in consultation with counsel determine whether
      the period during which the Trust may not offer additional Shares to comply with Regulation M should be adjusted, and may make any adjustments necessary under or permitted by Regulation M.

    (c)  In connection with the issuance of Shares by the Trust pursuant to Share Placements hereunder, the Sponsor shall
      coordinate with the Transfer Agent to effect the issuance of Shares in accordance with the terms of such Share Placements. Shares sold in a Share Placement after the Initial Issuance Date will be issued at a price determined so that the net proceeds
      received by the Trust are at least equal to the most recently calculated Bitcoin Holdings per Share immediately prior to, or upon, the determination of the pricing of such issuance pursuant to the applicable agreement between the Trust and the
      underwriter, placement agent or distributor, as applicable.

    
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    (d)  The Escrow Agent shall establish and maintain an account into which the applicable underwriter, placement agent or
      distributor shall deposit, in U.S. dollars, the amounts sold or placed by the applicable underwriter, placement agent of distributor in accordance with the terms and provisions of the agreements governing the Share Placement. Any cash received with
      respect to the issuance of Shares shall be used to purchase bitcoin on the date such Shares are issued.  The Sponsor and the applicable Service Providers shall use commercially reasonable efforts to complete the purchase of bitcoin contemplated on
      the date such Shares are issued, provided that if any such purchases are unable to be made on the date such Shares are issued then such purchases shall be made as soon as practicable thereafter.

    SECTION 3.3  Book-Entry-Only System.

    (a)  Shares issued shall be held in electronic format through a book entry system. Individual certificates shall not be
      issued for the Shares. The Register of Shareholders shall be maintained by the Transfer Agent. Subject to the applicable terms and provisions of this Agreement and compliance by the applicable Shareholders, DTC Participants, Indirect Participants and
      Persons holding interests through DTC Participants or Indirect Participants, as the case may be, with all applicable procedures of the Transfer Agent and DTC, DTC shall act as depository for the Shares.  In the case of issuance of Shares, the
      Transfer Agent shall, at the direction of the Sponsor, designate to DTC the applicable accounts to be credited.

    (b)  With respect to the Shares, the provisions of this Section 3.3(b) and, to the extent applicable, Section
        3.3(c), shall govern such Shares.  Beneficial ownership of Shares shall be limited to DTC Participants, Indirect Participants and Persons holding interests in Shares through DTC Participants and Indirect Participants. Upon the issuance,
      transfer or redemption of Shares, the Transfer Agent shall credit or debit, on DTC’s book-entry registration and transfer system, the amount of such Shares to the accounts of the appropriate DTC Participants. Owners of beneficial interests in Shares
      shall be shown on, and the transfer of that ownership shall be effected only through, records maintained by DTC (with respect to DTC Participants), the records of the applicable DTC Participants (with respect to Indirect Participants) and the records
      of Indirect Participants (with respect to interests of Persons that are not DTC Participants or Indirect Participants).

    (c)  Owners of beneficial interests in Shares not reflected in the Register shall not have any rights either under this
      Agreement or under any Share held on their behalf by DTC or the applicable registered Shareholder, as the case may be. The Shareholder of any Share as reflected in the Register may be treated by the Trust, the Sponsor, the Transfer Agent, the
      Administrator and any agent of the foregoing as the absolute owner of such Share for all purposes whatsoever. The rights of the owners of beneficial interests in the Shares, if not the registered Shareholder in the Register, shall be exercised only
      through DTC or such registered Shareholder, as applicable, and shall be limited to those established by law and agreements between such owners of beneficial interests in such Shares and DTC or the applicable registered Shareholder, as the case may
      be.  Notwithstanding the foregoing, nothing shall prevent the Trust, the Sponsor, the Transfer Agent, the Administrator or any agent of the foregoing from giving effect to any written certification, proxy or other authorization furnished by DTC or
      such other registered Shareholder, or impair, as between DTC or such other registered Shareholder, and owners of beneficial interests in the subject Shares, the operation of customary practices of DTC or such other registered Shareholder governing
      the exercise of the rights of an owner of a beneficial interest in a Share. 

    

    
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    DTC or such other registered Shareholder may grant proxies and otherwise authorize any Person, including the owners of beneficial interests
      in the Shares and Persons that may hold interests through such owners, to take any action which a Shareholder is entitled to take under this Agreement or the Shares. None of the Trust, the Sponsor, the Transfer Agent or the Administrator shall have
      any responsibility or liability for any actions taken or not taken by DTC or any other Shareholder. The Trust, the Sponsor, the Transfer Agent and the Administrator shall each be fully protected in relying upon information furnished by DTC or a
      registered Shareholder with respect to its agent members and other members, participants and any beneficial owners, as applicable.

    (d)  If DTC has notified the Trust, the Sponsor or the Transfer Agent that it (i) is unwilling or unable to continue as
      the depositary for the Shares, or (ii) has ceased to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, at a time when DTC is required to be registered to act as depositary, the Sponsor shall seek a replacement for
      DTC to perform comparable functions at a comparable cost (which, for the avoidance of doubt, may include the Register maintained by the Transfer Agent), or if a replacement is not engaged, the Sponsor may act to terminate the Trust.

    (e)  The Transfer Agent shall coordinate and cooperate with DTC in respect of any matters involving the Shares.

    SECTION 3.4  Assets of the Trust.  The Trust Estate shall irrevocably belong to the Trust for all purposes,
      subject only to the rights of creditors of the Trust and shall be so recorded upon the books of account of the Trust.

    SECTION 3.5  Liabilities of the Trust.  The Trust Estate shall be charged with the liabilities of the Trust and
      with all expenses, costs and charges attributable to the Trust.  The Administrator, to the extent not inconsistent with applicable law, shall determine which items shall be treated as income and which items as capital, and each such determination and
      allocation shall be conclusive and binding upon the Shareholders.

    SECTION 3.6  Distributions.  Shareholders shall only be entitled to distributions in respect of their Shares upon
      either a redemption by such Shareholder or upon termination of the Trust.  All such distributions shall be made to the applicable Shareholder(s) as of the applicable Record Date and shall be made in cash.

    SECTION 3.7  Voting Rights.  Notwithstanding any other provision hereof, on each matter for which Shareholders are
      entitled to vote pursuant to the express provisions of this Agreement, each Shareholder as of the applicable Record Date shall be entitled to a proportionate vote based upon its Percentage Interest as of the applicable Record Date.

    
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    SECTION 3.8  Equality.  All Shares shall represent an equal proportionate beneficial interest in the Trust Estate
      subject to the liabilities of the Trust, and each Share’s interest in the Trust Estate shall be equal to each other Share.

    ARTICLE IV

      

      TRANSFERS OF SHARES

    SECTION 4.1  General.

    (a)  Beneficial owners of interests in Shares that are not DTC Participants may transfer Shares through DTC by instructing
      the DTC Participant or Indirect Participant through which such Beneficial Owners hold their interests to transfer such Shares;

    (b)  Beneficial Owners of interests in Shares that are DTC Participants may transfer such Shares by instructing DTC in
      accordance with the rules of DTC; and

    (c)  Transfers of Shares will be made in accordance with standard securities industry practice, subject to the applicable
      Shareholder complying with any applicable procedures of DTC and providing any documentation that DTC, or any applicable Service Provider of the Trust, in its sole discretion deems necessary.

    ARTICLE V

      

      REDEMPTION OF SHARES

    SECTION 5.1  Redemption of Shares.  Subject to (i) the right of the Sponsor, on behalf of the Trust, to suspend
      redemptions upon the occurrence or during the continuation of a Suspension Event in accordance with Section 6.1, and (ii) Sections 5.2 and 5.3 below, a Shareholder may redeem all or a portion (subject to the Minimum Redemption
      Size) of its Shares on the last Business Day of each month for cash as follows:

    (a)  A Shareholder’s DTC Participant must complete a Redemption Order, which must include a valid
      signature guarantee, and deliver the Redemption Order to the Administrator and the Transfer Agent in accordance with the delivery instructions set forth in the Redemption Order form by no later than 4:00 p.m., New York time, on the Redemption Cut-Off
      Date;

    (b)  Upon receipt of a Redemption Order from a Shareholder’s DTC Participant, the Administrator shall
      review the Redemption Order and determine within one (1) Business Day of its receipt whether:

    (i)  such Redemption Order has been properly and fully completed by the Shareholder’s DTC Participant
      and contains a valid signature guarantee, in which case it shall forward such Redemption Order to the Sponsor and send a confirmation of receipt to the Shareholder’s DTC Participant; or

    
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    (ii)  such Redemption Order is incomplete, improperly completed, for less than the Minimum Redemption
      Size, does not contain a valid signature guarantee, not delivered in accordance with the instructions set forth in the Redemption Order form or received after 4:00 p.m., New York time, on the Redemption Cut-Off Date, in which case such Redemption
      Order shall be rejected by the Administrator and returned to the Shareholder’s DTC Participant.

    (c)  Two (2) Business Days prior to the Redemption Date, the Administrator shall provide to each of the
      Sponsor and the Transfer Agent a report of the Shares being redeemed on such Redemption Date broken down by DTC Participant.  Such report shall include the following information, together with any additional information reasonably requested to be
      provided by the Sponsor or the Transfer Agent and agreed to be provided by the Administrator (i) the name and DTC Participant number for such DTC Participant redeeming Shares, and (ii) the number of Shares to be redeemed by such DTC Participant;

    (d)  One (1) Business Day prior to the Redemption Date:

    (i)  by no later than 4:00 p.m., New York time, the Shareholder’s DTC Participant shall deliver the
      Shares to be redeemed by submitting a Deposit/Withdrawal At Custodian instruction (a “DWAC”) through the facilities of DTC;

    (ii)  the Transfer Agent shall (1) based on instruction from the Sponsor, withdraw the Shares received
      via DWAC instruction from the applicable DTC Participants redeeming Shares, and (2) provide a report to the Administrator and the Sponsor detailing the Shares that were withdrawn from DTC (the “Withdrawn Shares”)

      broken down by DTC Participant; and

    (iii)  the Administrator shall determine the number of bitcoin to be sold in order to have sufficient
      cash to pay each DTC Participant for its redeemed Shares and notify the Sponsor who shall confirm such determination.

    In the event that either: (i) the total Shares delivered by a DTC Participant via DWAC instruction does not match the
      total Shares listed on such DTC Participant’s Redemption Order, or (ii) a DTC Participant delivers Shares for cancellation via DWAC instruction but did not complete and timely submit a Redemption Order that was confirmed by the Administrator, then,
      in each case, such Shares shall not be cancelled or redeemed and shall instead remain outstanding;

    (e)  On the Redemption Date:

    (i)  the Transfer Agent shall (1) cancel the Withdrawn Shares at the instruction of the Sponsor, and
      (2) provide a report to the Sponsor and the Administrator detailing the cancelled Shares broken down by DTC Participant; and

    (ii)  the Administrator shall (1) provide the Bitcoin Holdings per Share to the Transfer Agent so that
      the Transfer Agent can perform the calculations stated in Section 5.1(e)(i) above, and (2) instruct the Bitcoin Custodian to transfer to a third party broker or dealer an amount of bitcoin necessary to receive sufficient cash to pay the
      redemption amount due to each redeeming DTC Participant.

    
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    (f)  On the Business Day following the Redemption Date, the Transfer Agent shall (i) calculate the cash value of the
      Withdrawn Shares for each DTC Participant, which shall be based on the Bitcoin Holdings per Share on the Redemption Date and the number of Shares to be redeemed by such DTC Participant, and (ii) provide a report to the Sponsor and the Administrator
      detailing the cash value of the Withdrawn Shares for each DTC Participant.

    (g)  Subject to Section 5.5(b), within five (5) Business Days after the Redemption Date, the Transfer Agent shall
      instruct the Cash Custodian to, and the Cash Custodian based upon such instruction shall, distribute cash to each DTC Participant in respect of their redeemed Shares.

    SECTION 5.2  Right to Reject Redemption.  The Administrator shall reject
      a Redemption Order if it is not completed or in proper form or if the Sponsor determines that fulfillment of the order might be unlawful. The Administrator shall notify the Sponsor prior to any rejection of a Redemption Order.

    SECTION 5.3  Other Redemption Procedures.

    (a)  Redemptions shall be deemed to occur on a “first-in first-out” basis (FIFO) among Shares held by a particular
      Shareholder.

    (b)  The redemption of Shares shall also be subject to compliance with all applicable requirements and procedures of the
      Transfer Agent and DTC.

    SECTION 5.4  Redemption Orders Irrevocable.  A Redemption Order
      delivered by a Shareholder shall be irrevocable unless otherwise agreed by the Sponsor.

    SECTION 5.5  Redemptions Paid in Cash.

    (a)  All redemptions shall be paid in cash to the redeeming Shareholder based on the Bitcoin Holdings of the Shares
      submitted for redemption, determined as of the Redemption Date.

    (b)  Subject to the occurrence or continuation of a Suspension Event, the Trust shall use commercially reasonable efforts
      to pay amounts relating to the final redemption of Shares within five (5) Business Days after the applicable Redemption Date; provided that if a Suspension Event occurs, the Trust shall make such payment as soon as practicable thereafter. The
      applicable redemption amount to which a redeeming Shareholder will be entitled shall be the Bitcoin Holdings of the Shares submitted for redemption, determined as of the Redemption Date, less a $250 redemption fee charged by the Administrator.

    
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    ARTICLE VI

      

      SUSPENSION EVENTS

    SECTION 6.1  Suspension Events.  The Trust may suspend Redemption Orders, the payment of redemption proceeds or
      the determination of Bitcoin Holdings in the case of the occurrence of any of the following events until such time as the event has passed (each, a “Suspension Event”):

    (a)  when a redemption would result in a violation by the Trust or the Sponsor or any of its other
      respective affiliates of the securities laws of the United States or any other applicable jurisdiction or the rules of any national securities exchange, self-regulatory organization or regulatory agency applicable to the Trust, the Sponsor or its
      respective affiliates as evidenced by an opinion of counsel;

    (b)  any exchange, dealer market, quotation system or other market on which a significant portion of
      the Trust's assets are regularly traded or quoted is closed (otherwise than for weekends or holidays) or trading thereon is generally suspended or limited;

    (c)  the Bitcoin Network experiences delays or is suspended in a manner that affects the ability of the
      Trust to buy, sell or deliver bitcoin to a third party;

    (d)  the Sponsor has determined in good faith that the disposition of any asset of the Trust, or other
      transaction involving the sale, transfer or delivery of the Trust's assets is not reasonably practicable without being detrimental to the Trust or the interest of the remaining Shareholder;

    (e)  any breakdown in the means of communication or publication normally employed in determining the
      Trust's Bitcoin Holdings or the Bitcoin Holdings per Share has occurred and is continuing, or the prices or values of the Trust's assets cannot reasonably be promptly and accurately ascertained for any reason;

    (f)  any event has occurred and is continuing which may cause the dissolution of the Trust;

    (g)  the Sponsor has otherwise determined, in good faith, with respect to the Trust or the Shares of
      the redeeming or remaining Shareholders, respectively, that the redemption by any Shareholder of its Shares (whether in whole or in part) would have a material adverse effect on the Trust or the Shares of the redeeming or remaining Shareholders,
      respectively, including, without limitation, the risk of potential re-classification of the Trust for U.S. federal income tax purposes; or

    (h)  any event constituting force majeure (including without limitation pandemic or riot) which, in the
      good faith determination of the Sponsor, makes determination of the Bitcoin Holdings or redemption impossible or impracticable; provided that any determination of the Bitcoin Holdings or redemption so suspended shall be reinstated or processed as
      soon the force majeure event has resolved.

    
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    ARTICLE VII

      

      THE TRUST

    SECTION 7.1  Management of the Trust.  Pursuant to Section 3806(b)(7) of the Delaware Trust Statute, the Sponsor
      is hereby granted the exclusive authority, and shall initially appoint the Administrator, the Transfer Agent, the Bitcoin Custodian, the Cash Custodian and the other Service Providers, to manage the Trust in accordance with their respective governing
      agreements. The Sponsor shall have the exclusive authority to direct the Service Providers in the performance of their respective obligations under this Agreement and their respective governing agreements. Without limiting the foregoing, the Sponsor
      shall have the authority to execute and deliver this Agreement and to enter into and perform such contracts and other undertakings on behalf of the Trust and any amendment thereto, as the Sponsor may deem necessary or advisable, and the Trust is
      hereby authorized and shall have the power and authority to enter into such agreements and perform its obligations thereunder.

    SECTION 7.2  Authority of Sponsor.  In addition to, and not in limitation of, any rights and powers conferred by
      law or other provisions of this Agreement, and except as limited, restricted or prohibited by the express provisions of this Agreement or the Delaware Trust Statute, the Sponsor shall have, and may exercise on behalf of
        the Trust (including, without limitation, delegating any such powers and rights to the Service Providers in accordance with their respective governing agreements), all powers and rights necessary, proper,
        convenient or advisable to effectuate and carry out the purposes of the Trust, which powers and rights shall include, without limitation, the following:

    (a)  to enter into, execute, accept, and deliver, on behalf of the Trust, contracts, agreements and any
      or all other documents and instruments incidental to the Trust’s purposes, including, but not limited to, the Service Provider Agreements and other contracts with service providers to provide various services;

    (b)  to establish, maintain, deposit into and/or otherwise draw upon, accounts on behalf of the Trust
      with appropriate custodial, banking, savings or other institutions;

    (c)  to deposit, withdraw, pay, retain and distribute the Trust Estate or any portion thereof in any
      manner consistent with the provisions of this Agreement;

    (d)  to supervise the preparation and filing of Registration Statements and any prospectus contained
      therein and any supplements and amendments thereto and to execute such Registration Statements on behalf of the Trust;

    (e)  to pay or authorize the payment of distributions to the Shareholders and pay or authorize the
      payment of the expenses of the Trust;

    (f)  to prepare, or cause to be prepared, and file, or cause to be filed, an application to enable the
      Shares to be traded on a national exchange or traded over-the-counter and reported on a quotation system and to take any other action and execute and deliver any certificates or documents that may be necessary to effectuate such trading;

    
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    (g)  to delegate those of its duties hereunder as it shall determine from time to time to one or more
      service providers, and add any additional service providers, if needed and as applicable;

    (h)  to determine to use a reference rate other than the CME CF BRR if the CME CF BRR is no longer
      calculated or available;

    (i)  to develop a distribution plan on behalf of the Trust on an initial and ongoing basis;

    (j)  to facilitate registration of the Shares in book-entry form to be held in the name of Cede &
      Co. at the facilities of DTC;

    (k)  to instruct the Transfer Agent in connection with the issuance and cancellation of Shares;

    (l)  to instruct the Bitcoin Custodian and/or third party broker or dealer in connection with the
      purchase and sale of bitcoin on behalf of the Trust;

    (m)  to apply to have the Shares quoted on OTCQX;

    (n)  to perform such other services as the Sponsor believes that the Trust may from time to time
      require; and

    (o)  in general, to do everything necessary, suitable or proper for the accomplishment of any purpose
      or the attainment of any objective or the furtherance of any power herein set forth, either alone or in association with others, and to do every other act or thing incidental or appurtenant to, or growing out of or connected with, the aforesaid
      purposes, objects or powers.

    In the event that on or prior to the date of this Agreement, any actions have been taken or documents executed by the
      Sponsor pursuant to the aforementioned powers and rights (including on behalf of the Trust), such actions or documents are hereby ratified.  For the avoidance of doubt, in respect of any such action or document, all rights, protections, immunities
      and indemnities granted to the Sponsor pursuant to this Agreement shall be applicable to the Sponsor as of the date of any such action or document.

    The foregoing clauses of Section 7.2 shall be construed both as objects and powers, and the foregoing enumeration
      of specific powers shall not be held to limit or restrict in any manner the general powers of the Sponsor. Any action by the Sponsor hereunder shall be deemed an action on behalf of the Trust, and not an action in an individual capacity.

    Notwithstanding anything contained in this Agreement to the contrary, the Sponsor shall be entitled to delegate its
      obligations under this Agreement and applicable law to the Service Providers and shall not be liable for the actions of any such Service Providers.

    
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    SECTION 7.3  General Prohibitions. The Trust shall not:

    (a)  receive any property other than cash in U.S. dollars upon the issuance of Shares;

    (b)  hold any property other than bitcoin and U.S. dollars;

    (c)  redeem Shares other than (i) as provided in Article V or (ii) upon the dissolution of the
      Trust;

    (d)  create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other
      title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except liens expressly contemplated by this Agreement or the Service Provider Agreements, and liens for taxes not delinquent or being
      contested in good faith and by appropriate proceedings;

    (e)  commingle the Trust Estate with the assets of any other Person other than as expressly
      contemplated by the agreements governing the duties and obligations of the Service Providers; or

    (f)  cause the Trust to take any action that would result in the Trust being treated as an association
      taxable as a corporation for U.S. federal income tax purposes.

    SECTION 7.4  Liability of Covered Persons.  A Covered Person shall have no liability to the Trust or any
      Shareholder or other Person for any action or omission taken or omitted to be taken by such Covered Person in good faith or for errors in judgment by such Covered Person, except to the extent such action or omission taken or omitted to be taken or
      such error in judgment constitutes willful misconduct, bad faith or gross negligence in the performance of such Covered Person’s duties. Subject to the foregoing, neither the Sponsor nor any other Covered Person shall be personally liable for the
      return or repayment of all or any portion of the investment, capital or profits of any Shareholder or assignee thereof, it being expressly agreed that any such return of investment, capital or profits made pursuant to this Agreement shall be made
      solely from the assets of the Trust without any rights of contribution from the Sponsor or any other Covered Person. A Covered Person shall not be liable for the conduct or misconduct of any service provider or delegate.

    SECTION 7.5  Certain Duties.

    (a)  To the extent that, at law or in equity, the Sponsor has duties (including fiduciary duties) and liabilities relating
      to the Trust, the Shareholders or any other Person, the Sponsor acting under this Agreement shall not be liable to the Trust, the Shareholders or to any other Person for its good faith reliance on the provisions of this Agreement subject to the
      standard of care described in Section 7.4 herein. The provisions of this Agreement, to the extent that they restrict or eliminate the duties and liabilities of the Sponsor otherwise existing at law or in equity are agreed by the parties
      hereto and the Shareholders to replace such other duties and liabilities of the Sponsor.

    
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    (b)  The Sponsor allocates its resources among different clients and potential future business ventures to which the
      Sponsor may owe fiduciary duties. Additionally, the professional staff of the Sponsor also services other Affiliates of the Sponsor and its respective clients. It is agreed and understood that (i) the Sponsor and its professional staff shall not be
      required to devote its or their respective time or resources exclusively to the management of the business and affairs of the Trust and may engage in other business interests and activities similar to or in addition to those relating to the
      activities to be performed for the Trust and (ii) the officers of the Sponsor may buy or sell bitcoin for their own personal trading accounts (subject to certain internal trading policies and procedures) at the same time that they are managing the
      account of the Trust. In the event that the Sponsor, its partners, employees, associates and Affiliates or any of them now or hereafter carry on activities competitive with those of the Trust or buy, sell or trade in assets and portfolio securities
      of the Trust or of other investment funds, none of them shall be under any liability to the Trust or to the Shareholders for so acting. Every Shareholder, by virtue of having purchased or acquired a Share, shall be deemed to have consented to such
      conflicts of interest.

    (c)  Unless otherwise expressly provided herein:

    (i)  whenever a conflict of interest exists or arises between the Sponsor or any of its Affiliates, on
      the one hand, and the Trust, any Shareholder or any other Person, on the other hand; or

    (ii)  whenever this Agreement or any other agreement contemplated herein provides that the Sponsor
      shall act in a manner that is, or provides terms that are, fair and reasonable to the Trust, any Shareholder or any other Person,

    the Sponsor shall resolve such conflict of interest, take such action or provide such terms, considering in each case the relative interest
      of each party (including its own interest) to such conflict, agreement, transaction or situation and the benefits and burdens relating to such interests, any customary or accepted industry practices, and any applicable generally accepted accounting
      practices or principles. In the absence of bad faith by the Sponsor, the resolution, action or terms so made, taken or provided by the Sponsor shall not constitute a breach of this Agreement or any other agreement contemplated herein or of any duty
      or obligation of the Sponsor at law or in equity or otherwise.

    (d)  The Sponsor and any Affiliate of the Sponsor may engage in or possess an interest in profit-seeking or business
      ventures of any nature or description, independently or with others, whether or not such ventures are competitive with the Trust and the doctrine of corporate opportunity, or any analogous doctrine, shall not apply to the Sponsor. If the Sponsor
      acquires knowledge of a potential transaction, agreement, arrangement or other matter that may be an opportunity for the Trust, it shall have no duty to communicate or offer such opportunity to the Trust, and the Sponsor shall not be liable to the
      Trust or to the Shareholders for breach of any fiduciary or other duty by reason of the fact that the Sponsor pursues or acquires for, or directs such opportunity to, another Person or does not communicate such opportunity or information to the
      Trust. Neither the Trust nor any Shareholder shall have any rights or obligations by virtue of this Agreement or the trust relationship created hereby in or to such independent ventures or the income or profits or losses derived therefrom, and the
      pursuit of such ventures, even if competitive with the purposes of the Trust, shall not be deemed wrongful or improper. 

    
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    Except to the extent expressly provided herein, the Sponsor may engage or be interested in any financial or other transaction with the Trust,
      the Shareholders or any Affiliate of the Trust or the Shareholders.

    (e)  To the fullest extent permitted by law and notwithstanding any other provision of this Agreement or in any agreement
      contemplated herein or applicable provisions of law or equity or otherwise, whenever in this Agreement a Person is permitted or required to make a decision (a) in its “sole discretion” or “discretion” or under a grant of similar authority or
      latitude, the Person shall be entitled to consider only such interests and factors as it desires, including its own interests, and shall have no duty or obligation to give any consideration to any interest of or factors affecting the Trust, the
      Shareholders or any other Person, or (b) in its “good faith” or under another express standard, the Person shall act under such express standard and shall not be subject to any other or different standard. The term “good faith” as used in this
      Agreement shall mean subjective good faith as such term is understood and interpreted under Delaware law.

    SECTION 7.6  Indemnification of the Sponsor.

    (a)  The Sponsor shall be indemnified by the Trust and held harmless against any losses, judgments, liabilities, claims,
      suits, penalties, taxes, costs, amounts paid in settlement of any claims sustained by it and expenses incurred by it arising out of or in connection with the performance of its obligations under this Agreement and under each other agreement entered
      into by the Sponsor in furtherance of the administration of the Trust, including, without, limitation, any costs and expenses incurred by the Sponsor in defending itself against any claim or liability in its capacity as Sponsor (each, a “Loss”); provided that (i) such Loss was not the direct result of gross negligence, bad faith or willful misconduct on the part of the Sponsor, as determined by a final judgment of a court of competent
      jurisdiction, and (ii) any such indemnification will be recoverable only from the Trust Estate. All rights to indemnification permitted herein and payment of associated expenses shall not be affected by the dissolution or other cessation of existence
      of the Sponsor, or the withdrawal, adjudication of bankruptcy or insolvency of the Sponsor, or the filing of a voluntary or involuntary petition in bankruptcy under the Bankruptcy Code by or against the Sponsor. Any amounts payable to the Sponsor
      under this Section 7.6 may be payable in advance. As security for any amounts owing to the Sponsor under this Section 7.6, the Sponsor shall have a lien against the Trust property. The obligations of the Trust to indemnify the Sponsor
      under this Section 7.6 shall survive the termination of this Agreement.

    (b)  Expenses incurred in defending a threatened or pending civil, administrative or criminal action suit or proceeding
      against the Sponsor shall be paid by the Trust in advance of the final disposition of such action, suit or proceeding if (i) the legal action relates to the performance of duties or services by the Sponsor on behalf of the Trust; (ii) the legal
      action is initiated by a third party who is not a Shareholder or the legal action is initiated by a Shareholder and a court of competent jurisdiction specifically approves such advance; and (iii) the Sponsor undertakes to repay the advanced funds
      with interest to the Trust in cases in which it is not entitled to indemnification under this Section 7.6.

    (c)  The term “Sponsor” as used only in this Section 7.6 shall include, in addition to the Sponsor, any other
      Covered Person performing services on behalf of the Trust and acting within the scope of the Sponsor’s authority as set forth in this Agreement.

    
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    (d)  In the event the Trust is made a party to any claim, dispute, demand or litigation or otherwise incurs any Loss as a
      result of or in connection with any Shareholder’s (or assignee’s) obligations or liabilities unrelated to the activities of the Trust, such Shareholder (or assignees cumulatively) shall indemnify, defend, hold harmless and reimburse the Trust for all
      such Losses incurred, including attorneys’ and accountants’ fees.

    SECTION 7.7  Business of Shareholders.  Except as otherwise specifically provided herein, any of the Shareholders
      and any shareholder, officer, director, employee or other Person holding a legal or beneficial interest in an entity that is a Shareholder, may engage in or possess an interest in business ventures of every nature and description, independently or
      with others, and the pursuit of such ventures, even if adverse to the interests of the Trust, shall not be deemed wrongful or improper.

    SECTION 7.8  Voluntary Withdrawal of the Sponsor.  The Sponsor may withdraw voluntarily as the Sponsor of the
      Trust only upon ninety (90) days’ prior written notice to all Shareholders and the Trustee. Following receipt of such notice, Shareholders holding Shares equal to at least fifty-one percent (51%) of the outstanding Shares of the Trust as of the
      Record Date (not including Shares held by the Sponsor or its Affiliates) may vote to elect and appoint, effective as of a date on or prior to the withdrawal, a successor Sponsor who shall carry on the business of the Trust.

    SECTION 7.9  Officer’s Certificate of Sponsor.  In the event that an opinion of counsel is to be delivered in
      respect of any matter contemplated by this Agreement, the Sponsor shall be required to deliver an officer’s certificate as to any matters relevant thereto, upon which such counsel shall be entitled to conclusively rely.

    SECTION 7.10  Authorization of Prospectus.  Each Shareholder (or any permitted assignee thereof) hereby agrees
      that the Trust, the Sponsor, the Trustee and each Service Provider are authorized to execute, deliver and perform the agreements, acts, transactions and matters contemplated hereby or described in or contemplated by a Registration Statement and any
      prospectus contained therein and any supplements and amendments thereto on behalf of the Trust (and any such execution, delivery or performance that has already been undertaken is hereby ratified) without any further act, approval or vote of the
      Shareholders, notwithstanding any other provision of this Agreement, the Delaware Trust Statute or any applicable law, rule or regulation.

    SECTION 7.11  Litigation.  The Sponsor is hereby authorized to prosecute, defend, settle or compromise actions or
      claims at law or in equity that it considers necessary or proper to protect the Trust or the interests of the Shareholders. The Sponsor is hereby authorized to satisfy any judgment, decree or decision of any court, board or authority having
      jurisdiction or any settlement of any suit or claim prior to judgment or final decision thereon out of the Trust’s assets. The legal expenses and costs of any such actions shall be deemed Additional Trust Expenses for which the Sponsor shall be
      entitled to be reimbursed by the Trust.

    SECTION 7.12  Merger or Corporate Reorganization of Sponsor.  To the fullest extent permitted by law, nothing in
      this Agreement shall be deemed to prevent the merger of the Sponsor with another corporation or other entity, the reorganization of the Sponsor into or with any other corporation or other entity, the transfer of all the capital stock of the Sponsor,
      the assumption of the rights, duties and liabilities of the Sponsor by, in the case of a merger, reorganization or consolidation, the surviving corporation or other entity by operation of law. 

    
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    The resulting, surviving or transferee entity shall, without any further act, be the successor Sponsor under this Agreement and each of the
      related documents.  Without limiting the foregoing, none of the transactions referenced in the preceding sentence shall be deemed to be a voluntary withdrawal for purposes of Section 7.8.

    ARTICLE VIII

      

      THE SHAREHOLDERS

    SECTION 8.1  No Management or Control; Limited Liability.  The Shareholders shall not participate in the
      management or control of the Trust nor shall they enter into any transaction on behalf of the Trust or have the power to sign for or bind the Trust, said power being vested solely and exclusively in the Sponsor and the Service Providers subject to,
      and to the extent expressly set forth in, this Agreement and the other Service Provider Agreements. Except as provided in Section 8.3, no Shareholder shall be personally liable for the expenses, liabilities or obligations of the Trust in
      excess of his Percentage Interest of the Trust Estate. Except as provided in Section 8.3, each Share owned by a Shareholder shall be fully paid and no assessment shall be made against any Shareholder. No salary shall be paid to any
      Shareholder in his capacity as a Shareholder, nor shall any Shareholder have a drawing account or earn interest on its Percentage Interest of the Trust Estate. By the purchase and acceptance or other lawful delivery and
        acceptance of Shares, each Shareholder shall be a beneficiary of the Trust vested with a fractional undivided beneficial interest in the Trust to the extent of the Shares owned beneficially by such Shareholder, subject to the terms and conditions
        of this Agreement.

    SECTION 8.2  Rights and Duties.  The Shareholders shall have the following rights, powers, privileges, duties and
      liabilities:

    (a)  the Shareholders shall receive the share of the distributions provided for in this Agreement in
      the manner and at the times provided for in this Agreement;

    (b)  Shareholders shall have the right to demand a redemption of their Shares in accordance with Article

        V or upon the dissolution and winding up of the Trust and only to the extent of funds available therefor as provided in Section 13.2. In no event shall a Shareholder be entitled to demand or receive property other than cash upon the
      dissolution and winding up of the Trust. No Shareholder shall have priority over any other Shareholder as to distributions. No Shareholder shall have any right to bring an action for partition against the Trust; and

    (c)  the Shareholders holding Shares representing at least fifty-one percent (51%) of the outstanding
      Shares of the Trust as of the Record Date (not including Shares held by the Sponsor or its Affiliates) may vote to appoint a successor Sponsor as provided in Section 7.8 or Section 13.1(a)(vi). Except as set forth in this Section
        8.2(c), Section 11.1 and Section 13.2, the Shareholders shall have no voting rights with respect to the Trust.

    

    

    
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     SECTION 8.3  Limitation of Liability.  Except as provided in Section 7.6(d) and as otherwise provided
      under Delaware law, the Shareholders shall be entitled to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the General Corporation Law of Delaware and no Shareholder shall be liable
      for claims against or debts of the Trust in excess of his Percentage Interest of the Trust Estate, except in the event that the liability is founded upon misstatements or omissions contained in such Shareholder’s Subscription Agreement. In addition,
      and subject to the exceptions set forth in the immediately preceding sentence, the Trust shall not make a claim against a Shareholder with respect to amounts distributed to such Shareholder or amounts received by such Shareholder upon redemption of
      such Shareholder’s Shares unless, under Delaware law, such Shareholder is liable to repay such amount.

    SECTION 8.4  Derivative Actions.  In addition to any other requirements of applicable law, no Shareholder shall
      have the right, power or authority to bring or maintain a derivative action, suit or other proceeding on behalf of the Trust unless two or more Shareholders who (i) are not Affiliates of one another and (ii) collectively hold at least ten percent
      (10%) of the outstanding Shares join in the bringing or maintaining of such action, suit or other proceeding.

    ARTICLE IX

      

      BOOKS OF ACCOUNT AND REPORTS

    SECTION 9.1  Books of Account.  Proper books of account for the Trust shall be kept by the Administrator and shall
      be audited, as required by law, by independent registered public accountants designated by the Trust, and there shall be entered therein all transactions, matters and things relating to the Trust as are required by the applicable law and regulations.
      The books of account shall be kept at the principal office of the Administrator and no Shareholder shall have any right to inspect any account, book or document of the Trust that is not publicly available, except as consented to by the Sponsor. Such
      books of account shall be kept, and the Trust shall report its profits and losses on, the accrual method of accounting for financial accounting purposes on a Fiscal Year basis as described in Section 9.7.

    SECTION 9.2  Reports.

    (a)  At the end of each Business Day, the Sponsor, based on information received from the Administrator, shall post to the
      Website a report detailing, among other things, the following items: the Bitcoin Price, the Bitcoin Holdings, the Bitcoin Holdings per Share, the GAAP NAV, the GAAP NAV per Share and such other information required to be posted by any appropriate
      regulatory authority or, if applicable, OTCQX.

    (b)  On the sixth (6th) day of each month, the Sponsor, based on information received from the Administrator, shall post
      to the Website a monthly report detailing the following items: the Bitcoin Price, the Bitcoin Holdings, the Bitcoin Holdings per Share, the GAAP NAV, the GAAP NAV per Share, the number of additional Shares issued, the amount of cash received by the
      Trust in connection with the issuance of additional Shares, the number of Shares redeemed, the amount of cash disbursed in connection with the redemption of Shares, and the amount of the fees and expenses of the Trust for such month. In the event
      that the sixth (6th) day of any month is not a Business Day, then such monthly report shall be posted on the immediately following Business Day.

    
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    (c)  After the end of each fiscal year, the Trust will cause to be prepared an annual report containing audited financial
      statements prepared in accordance with U.S. GAAP for the Trust. The annual report will be in such form and contain such information as will be required by applicable laws, rules and regulations and may contain such additional information which the
      Sponsor determines shall be included. The annual report shall be filed with the SEC and shall be distributed to such persons and in such manner, as shall be required by applicable laws, rules and regulations.

    SECTION 9.3  Tax Matters.

    (a)  Although formed under the laws of Delaware, the Trust has elected, pursuant to Section 301.7701-3 of the Treasury
      Regulations, to be classified as a partnership for U.S. federal income tax purposes and not as an association taxable as a corporation.  As a consequence of such election:

    (i)  this Agreement contains certain provisions appropriate to such classification, including, but not
      limited to, provisions concerning the allocation of income, gain and loss and the establishment and maintenance of capital accounts; and

    (ii)  the Shareholders will be treated as partners for U.S. federal income tax purposes.

    (b)  Notwithstanding anything to the contrary in this Agreement, with respect to each Fiscal Year (or portion thereof) in
      which the Trust is classified and treated as a partnership for U.S. federal income tax purposes, a capital account will be maintained for each Shareholder (representing an amount equal to the aggregate Bitcoin Holdings per Share of such Shareholder's
      Shares, as adjusted on the last day of each Fiscal Year and as adjusted to take account of issues and redemptions of Shares) and all items of income, deduction, gain, loss or credit of the Trust will be allocated to such capital accounts pursuant to
      the terms of this Agreement, all in accordance with Section 704 of the Code and the Treasury Regulations promulgated thereunder.

    (c)  For each Fiscal Year, items of income or credit of the Trust shall be allocated to the Shareholders for U.S. federal
      income tax purposes in accordance with the allocations of the corresponding items for capital account purposes, except that items with respect to which there is a difference between tax and book bases will be allocated in accordance with Section
      704(c) of the Code and the Treasury Regulations promulgated thereunder.

    (d)  Notwithstanding anything in Section 9.3(c) to the contrary, in the event that a Shareholder redeems all its
      shares in the Trust or otherwise ceases to hold shares, dies, dissolves or becomes bankrupt or insane, the Administrator or Sponsor may, in their sole discretion, specially allocate items of income, gain or loss of the Trust to that Shareholder for
      tax purposes to reduce the amount, if any, by which the amount distributable to that Shareholder upon such Shareholder ceasing to hold Shares exceeds, or is less than, that Shareholder’s tax basis for its Shares.

    
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      (e)  Notwithstanding anything in this Agreement to the contrary, in the event that any Shareholder unexpectedly receives
        any adjustments, allocations or distributions described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), Section 1.704-1(b)(2)(ii)(d)(5), or Section 1.704-1(b)(2)(ii)(d)(6), items of income (including gross income) and gain of the Trust
        shall be specially allocated to such Shareholder in an amount and manner sufficient to eliminate the deficit balance in such Shareholder’s capital account (in excess of (i) the amount such Shareholder is obligated to restore upon liquidation of the
        Trust or on such Shareholder ceasing to hold Shares and (ii) such Shareholder’s share of the “minimum gain” (as defined in Treasury Regulations Section 1.704-2)) created by such adjustments, allocations or distributions as quickly as possible.  Any
        special allocations of income and gain pursuant to this Section 9.3(e) shall be taken into account in computing subsequent allocations of income and gain pursuant to this Agreement, so that the net amount of any items so allocated and the
        income, gain, loss, deduction and all other items allocated to each Shareholder pursuant to this Agreement shall, to the extent possible, equal the net amount that would have been allocated to each such Shareholder pursuant to this Agreement if
        such special allocations had not been made.  This Section 9.3(e) is intended to comply with the qualified income offset requirement in the Treasury Regulations sections described in this Section 9.3(e) and shall be interpreted
        consistently therewith.

    

    (f)  For purposes of determining the net investment income or losses and net realized securities gains or losses, or any
      other such items allocable to any period, net investment income or losses and net realized securities gains or losses, and any such other items shall be determined on a daily, monthly, or other basis, as determined by the Shareholders using any
      permissible method under Section 706 of the Code and the Treasury Regulations promulgated thereunder.

    (g)  The Shareholders are aware of the income tax consequences of the allocations made by this Section 9.3 and by
      their acceptance of Shares agree to be bound by the provisions hereof in reporting their allocable distributable shares of income and loss of the Trust for U.S. federal income tax purposes.

    SECTION 9.4  Tax Information. The Trust shall use commercially reasonable efforts to deliver appropriate tax
      information (adequate to enable each Shareholder to complete and file its U.S. federal tax return) to each Shareholder as soon as practicable following the end of each Fiscal Year. If final tax information cannot be distributed by March 15 following
      the end of the immediately preceding Fiscal Year, estimated tax information shall be distributed no later than March 15. All such information shall be prepared, and all of the Trust’s tax returns shall be filed, in a manner consistent with the
      treatment of the Trust as a partnership. The Trust’s taxable year shall be the calendar year. The Trust shall comply with all U.S. federal withholding requirements applicable to distributions to, or receipts of amounts on behalf of, Shareholders that
      the Administrator reasonably believes are applicable under the Code. The consent of Shareholders shall not be required for such withholding.

    SECTION 9.5  Calculation of Bitcoin Holdings.

    (a)  The Trust’s Bitcoin Holdings shall be calculated by the Administrator on each Business Day and shall be equal to the
      value of the bitcoin and U.S. dollars held by the Trust, less the expenses and liabilities of the Trust, in each case determined in accordance with Section 9.5(b) below. The Bitcoin Holdings per Share, which shall be calculated by the
      Administrator on each Business Day, shall be equal to the Trust’s Bitcoin Holdings divided by the number of outstanding Shares.

    
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    (b)  On each Business Day at 4:00 p.m., New York time, or as soon thereafter as practicable, the Administrator will
      calculate and publish the Trust’s Bitcoin Holdings and Bitcoin Holdings per share. To calculate the Trust’s Bitcoin Holdings, the Administrator will:

    (i)  determine the Bitcoin Price as of such Business Day;

    (ii)  multiply the Bitcoin Price by the aggregate number of bitcoin owned by the Trust as of 4:00 p.m.,
      New York time, on such day;

    (iii)  add the amount of U.S. dollars held by the Trust;

    (iv)  subtract the U.S. dollar amount of accrued and unpaid Additional Trust Expenses, if any;

    (v)  on a Redemption Date, subtract the U.S. dollar value of the Shares redeemed, if any, determined by
      multiplying the number of Shares redeemed by the Bitcoin Holdings per Share on such Redemption Date (the amount derived from steps (i) through (v) above, the “Sponsor Fee Basis Amount”); and

    (vi)  subtract the U.S. dollar amount of the Sponsor’s Fee that accrues for such Business Day,
      calculated based on the Sponsor Fee Basis Amount for such Business Day.

    (c)  In the event that CF Benchmarks Ltd. ceases to publish the CME CF BRR, the Trust will undertake the following steps
      to calculate the Bitcoin Price:

    (i)  First, in the immediate interim period prior to
      establishing the permanent replacement benchmark, to the extent necessary, the Trust will source bitcoin prices directly from the CME CF BRR Constituent Platforms and closely replicate the daily calculation of the CME CF BRR; and

    (ii)  Second, for the permanent replacement benchmark, the
      Trust will look to determine a successor benchmark that satisfies the properties of high integrity, resilient methodology, and reliable availability. Possible options that the Trust may elect for a permanent replacement benchmark include:

    (1)  If the CME bitcoin futures are trading, the successor index or benchmark that the CME futures are
      cash settling on;

    (2)  An industrywide accepted index or benchmark that satisfies the aforementioned properties;

    (3)  An index or benchmark offered by the Bitcoin Custodian to price bitcoin; or

    
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    (4)  Replicate the CME CF BRR process and calculation through an independent third party calculation
      agent.

    In the event that the CME CF BRR ceases to be published, the Trust shall provide notice of such cessation to all Shareholders (which may be
      delivered through the facilities of DTC) and shall also provide details of how the Trust will determine the Bitcoin Price thereafter.

    (d)  The determinations that the Administrator makes as contemplated by Sections 9.5(a) and (b) above
      shall be made in good faith upon the basis of, and neither the Sponsor nor the Administrator will be liable for any errors contained in, information reasonably available to it; provided however that the preceding liability exclusion will not protect
      the Sponsor or the Administrator against any liability resulting from gross negligence, willful misconduct or bad faith in the performance of their respective duties as determined by a final judgment issued by a court of competent jurisdiction.

    SECTION 9.6 Calculation of GAAP NAV.

    (a)    The Trust's bitcoin is carried, for financial statement purposes, at fair value, as required by GAAP.  The Trust
      determines the fair value of bitcoin based on the price provided by the Trust’s principal market for bitcoin. The net asset value of the Trust determined on a GAAP basis is referred to as the Trust’s “GAAP NAV.”

    (b)  The Trust’s bitcoin trading within the Constituent Platforms forms the basis for determining the Trust’s principal
      market for valuing bitcoin, following the below steps:

    (i)  First, the Trust reviews the current list of the
      Constituent Platforms comprising the CME CF BRR;

    (ii)  Second, the Trust sorts the current Constituent
      Platforms from high to low by trading volume of bitcoin (USD-BTC) within each of the platforms for the trailing twelve (12) month period; and

    (iii)  Third, the Trust selects the Constituent Platform with
      the highest trading volume as its principal market.

    (c)  The Trust shall conduct the determination of the principal market on an annual basis. As of the date of this
      Agreement, the Trust has currently determined Coinbase to be the initial principal market on which the Trust will base its GAAP NAV determinations.

    (d)  The Trust’s GAAP NAV and GAAP NAV per Share shall be calculated daily by the Administrator and shall be used solely
      for GAAP accounting purposes for the Trust. The daily calculation of the Trust’s GAAP NAV and GAAP NAV per Share shall follow the same methodology as the calculation of the Trust’s Bitcoin Holdings and Bitcoin Holdings per Share pursuant to Section

        9.5(b), except that the Bitcoin Price is sourced from the Trust’s principal market for valuing bitcoin instead of the CME CF BRR.

    SECTION 9.7  Fiscal Year. The fiscal year of the Trust for financial accounting purposes (the “Fiscal Year”) shall begin on the 1st day of January and end on the 31st day of December of  each year. The Fiscal Year in which the Trust shall terminate shall end on the date of such termination. The
      Sponsor may select an alternate Fiscal Year.

    
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    SECTION 9.8  Maintenance of Records.  The Administrator shall maintain
      for a period of at least seven (7) years, or such longer period as required by applicable law, (a) all books of account required by Section 9.1; (b) a copy of the Certificate of Trust and all certificates of amendment thereto; (c) copies of
      the Trust’s U.S. federal, state and local income tax returns and reports, if any; (d) a copy of this Agreement, each effective Subscription Agreement, and in each case, any amendments or waivers thereto; and (e) any
        financial statements of the Trust. The Administrator may keep and maintain the books and records of the Trust in paper, magnetic, electronic or other format as the Administrator may determine in its sole discretion, provided that the
        Administrator shall use reasonable care to prevent the loss or destruction of such records. If there is a conflict between this Section 9.8 and the rules and regulations of the SEC or any applicable exchange or quotation system with respect
        to the maintenance of records, the records shall be maintained pursuant to the rules and regulations of the SEC or any applicable exchange or quotation system.

    ARTICLE X

      

      FEES AND EXPENSES

    SECTION 10.1  Sponsor’s Fee.  The Trust shall pay to the Sponsor a fee (the “Sponsor’s

        Fee”), payable in U.S. dollars, which shall accrue daily at an annual rate of 90 basis points (0.90%) of the Sponsor Fee Basis Amount as of 4:00 p.m., New York time, on each day; provided that for a
      day that is not a Business Day, the calculation shall be based on the Sponsor Fee Basis Amount from the most recent Business Day, reduced by the accrued and unpaid Sponsor’s Fee for such most recent Business Day and for each day after such most
      recent Business Day and prior to the relevant calculation date. The Sponsor’s Fee shall be payable to the Sponsor monthly in arrears from amounts on deposit in the Cash Account maintained by the Cash Custodian. The Sponsor, from time to time, may
      waive all or a portion of the Sponsor’s Fee in its sole discretion.

    SECTION 10.2  Sponsor-paid Expenses.  The following ordinary and
      recurring fees of the Trust will be paid by the Administrator out of the Sponsor’s Fee: (i) the Administrator Fee, (ii) the Bitcoin Custodian Fee, (iii) the Cash Custodian Fee, (iv) the Transfer Agent Fee, (v) the Trustee Fee, (vi) the Partnership
      Representative Fee, and (vii) the Trust’s audit fees (including any fees and expenses associated with tax preparation) (each, a “Sponsor-paid Expense” and together, the “Sponsor-paid

        Expenses”).

    SECTION 10.3 Additional Trust Expenses. The Trust may incur certain extraordinary, non-recurring fees and expenses
      that are not Sponsor-paid Expenses, including, but not limited to: (i) fees in connection with the purchase and sale of the Trust’s bitcoin (including any commission and exchange fees), (ii) expenses incurred in connection with an offering of Shares
      of the Trust, including but not limited to fees to the Underwriter and fess of the Escrow Agent, (iii) license fees, taxes and governmental charges, (iv) the Trust's regulatory fees and expenses (including any filings, applications or licenses), (v)
      printing and mailing costs, (vi) costs of maintaining the Trust's website, (vii) fees and expenses related to the listing, quotation or trading of the Shares on any Secondary Market (including legal, marketing and audit fees and expenses) to the
      extent exceeding $100,000 in any given fiscal year, (viii) expenses and costs of any extraordinary services

    
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    performed by the Sponsor (or any other Service Provider) on behalf of the Trust, (ix) indemnification obligations of the Trust to the
      Sponsor, any Service Provider or any counterparties of the Trust, and (x) the Trust’s legal fees to the extent they exceed $100,000 in any given fiscal year (excluding legal fees related to the Trust’s organization which were paid by the Sponsor)
      (collectively, “Additional Trust Expenses”).

    SECTION 10.4  Payment of Fees and Expenses.  If at any time there is an insufficient amount of cash in the Cash
      Account, the Sponsor will instruct the sale of an appropriate amount of the Trust's bitcoin and deposit, or cause to be deposited, the net sales proceeds into the Cash Account.

    ARTICLE XI

      

      AMENDMENT OF TRUST AGREEMENT; MEETINGS

    SECTION 11.1  Amendments to the Trust Agreement.

    (a)  Except as specifically provided herein, the Sponsor, without the Trustee or Shareholder consent, may amend or
      otherwise supplement this Agreement by making an amendment, an agreement supplemental hereto, or an amended and restated declaration of trust and trust agreement. Any such restatement, amendment and/or supplement hereto shall be effective on such
      date as designated by the Sponsor; provided that (i) no such amendment may be made if it would adversely affect the status of the Trust as a partnership for U.S. federal income tax purposes, (ii) any amendment that affects the duties,
      liabilities, rights or protections of the Trustee shall also require the Trustee’s prior written consent, which it may grant or withhold in its sole discretion, (iii) any amendment that affects the duties, liabilities, rights or protections of the
      Administrator shall also require the Administrator’s prior written consent, which it may grant or withhold in its sole discretion, and (iv) any amendment that appoints a new sponsor (upon the withdrawal or the adjudication or admission of bankruptcy
      or insolvency of the Sponsor) or makes any material change to the Trust’s basic investment policies shall also require the consent of Shareholders owning at least fifty-one percent (51%) of the outstanding Shares of the Trust as of the Record Date
      (not including Shares held by the Sponsor or its Affiliates).

    (b)  Without limitation of the foregoing, the Sponsor may, without the approval of the Shareholders, amend the provisions
      of this Agreement if the Trust is advised at any time by the Trust’s accountants or legal counsel that the amendments made are necessary to ensure that the Trust’s status as a partnership will be respected for U.S. federal income tax purposes.

    (c)  For all purposes of this Section 11.1, a Shareholder shall be deemed to consent to a modification or
      amendment of this Agreement if the Sponsor has notified such Shareholder in writing of the proposed modification or amendment and the Shareholder has not, within twenty (20) calendar days of such notice, notified the Sponsor in writing that the
      Shareholder objects to such modification or amendment. Notwithstanding anything to the contrary herein, notice pursuant to this Section 11.1 may be given by the Sponsor to the Shareholder by email, through DTC’s electronic notification system
      or via other electronic transmission and shall be deemed given upon delivery without requirement of confirmation.

    
      33

      
        

    

    (d)  Upon amendment of this Agreement, the Certificate of Trust shall also be amended, if required by the Delaware Trust
      Statute, to reflect such change. At the expense of the Trust, the Trustee shall execute and file any amendment to the Certificate of Trust if so directed in writing by the Sponsor.

    (e)  To the fullest extent permitted by law, no provision of this Agreement may be amended, waived or otherwise modified
      orally but only by a written instrument adopted in accordance with this Section 11.1.

    SECTION 11.2  Meetings of the Trust.  The Trust will not have regular Shareholder meetings. Meetings of the
      Shareholders may be called by the Sponsor. If a meeting is so called, the Sponsor shall provide written notice to all Shareholders thereof which shall provide basic details about the meeting such as the time, venue and purpose of the meeting.

    SECTION 11.3  Action Without a Meeting.  Any action required or permitted to be taken by Shareholders by vote may
      be taken without a meeting by written consent setting forth the actions so taken. Such written consents shall be treated for all purposes as votes at a meeting. If the vote or consent of any Shareholder to any action of the Trust or any Shareholder,
      as contemplated by this Agreement, is solicited by the Sponsor, the solicitation shall be effected by notice to each Shareholder given in the manner provided in Section 14.5. The vote or consent of each Shareholder so solicited shall not be
      deemed to have been cast or granted as requested in the notice of solicitation, unless the Shareholder expresses objection or consent by written notice delivered in the manner provided in Section 14.5 or as otherwise set forth in such
      solicitation and which is actually received by the Trust. The Covered Persons dealing with the Trust shall be entitled to act in reliance on any vote or consent that is deemed cast or granted pursuant to this Section 11.3 and shall be fully
      indemnified by the Trust in so doing.

    ARTICLE XII

      

      TERM

    SECTION 12.1  Term.  The term for which the Trust is to exist shall be perpetual, unless terminated pursuant to
      the provisions of Article XIII or as otherwise provided by law.

    ARTICLE XIII

      

      TERMINATION

    SECTION 13.1  Events Requiring Dissolution of the Trust.

    (a)  The Trust shall dissolve if any of the following events occur:

    (i)  a U.S. federal or state regulator requires the Trust to shut down or forces the Trust to liquidate
      its bitcoin or seizes, impounds or otherwise restricts access to Trust assets;

    (ii)  the Trust is determined to be a “money service business” under the regulations promulgated by
      FinCEN under the authority of the U.S. Bank Secrecy Act and is required to comply with certain FinCEN regulations thereunder, and the Sponsor has made the determination that dissolution of the Trust is advisable;

    
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    (iii)  the Trust is required to obtain a license or make a registration under any state law regulating
      money transmitters, money services business, providers of prepaid or stored value or similar entities, or virtual currency businesses, and the Sponsor has made the determination that dissolution of the Trust is advisable;

    (iv)  any ongoing event exists that either prevents the Trust from making or makes impractical the
      Trust's reasonable efforts to make a fair determination of the Bitcoin Price;

    (v)  any ongoing event exists that either prevents the Trust from converting, or makes impractical the
      Trust's reasonable efforts to convert bitcoin to U.S. dollars;

    (vi)  upon the withdrawal or the adjudication or admission of bankruptcy or insolvency of the Sponsor
      unless within ninety (90) days of such event, Shareholders holding at least fifty-one percent (51%) of the outstanding Shares of the Trust as of the Record Date (not including Shares held by the Sponsor or its affiliates) agree in writing to continue
      the Trust and to select, effective as of the date of such event, one or more successor sponsors;

    (vii)  the Trust becomes insolvent or bankrupt;

    (viii)  all of the Trust’s assets are sold; or

    (ix)  the Sponsor determines that the size of the assets of the Trust in relation to the expenses of
      the Trust make it unreasonable or imprudent to continue the Trust;

    (x)  the SEC determines that the Trust is an investment company required to be registered under the
      Investment Company Act, and the Sponsor has made the determination that dissolution of the Trust is advisable;

    (xi)  the CFTC determines that the Trust is a commodity pool under the CEA, and the Sponsor has made
      the determination that dissolution of the Trust is advisable;

    (xii)  sixty (60) days have elapsed since DTC or another depository has ceased to act as depository
      with respect to the Shares, and the Sponsor has not identified another depository that is willing to act in such capacity;

    (xiii)  the Sponsor elects to terminate the Trust after the Trustee, the Administrator, the Bitcoin
      Custodian or the Cash Custodian (or any successor trustee, administrator or custodian) resigns or otherwise ceases to be the trustee, administrator or custodian of the Trust, as applicable, and no replacement trustee, administrator and/or custodian
      acceptable to the Sponsor is engaged, and

    
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    accordingly the Sponsor has made the determination that dissolution of the Trust is advisable; or

    (xiv)  the Sponsor, in its sole discretion, determines for any other reason to dissolve the Trust.

    (b)  The death, legal disability, bankruptcy, insolvency, dissolution, or withdrawal of any Shareholder (as long as such
      Shareholder is not the sole Shareholder of the Trust) shall not result in the termination of the Trust, and such Shareholder, his estate, custodian or personal representative shall have no right to withdraw or value such Shareholder’s Shares. Each
      Shareholder (and any assignee thereof) expressly agrees that in the event of his death, he waives on behalf of himself and his estate, and he directs the legal representative of his estate and any person interested therein to waive, the furnishing of
      any inventory, accounting or appraisal of the Trust Estate and any right to an audit or examination of the books of the Trust.

    SECTION 13.2  Distributions on
        Dissolution. If the Trust is to be liquidated, the Trust will be liquidated under the Sponsor’s direction (or in the event there is no Sponsor or the Sponsor is adjudicated bankrupt or insolvent, such person as the Shareholders holding at least
      fifty-one percent (51%) of the outstanding Shares of the Trust as of the Record Date (not including Shares held by the Sponsor or its Affiliates) may propose and approve (the “Liquidating Trustee”)). Any
      Liquidating Trustee so appointed shall have and may exercise, without further authorization or approval of any of the parties hereto, all of the powers conferred upon the Sponsor under the terms of this Agreement,
        subject to all of the applicable limitations, contractual and otherwise, upon the exercise of such powers, and provided that the Liquidating Trustee shall not have general liability for the acts, omissions, obligations and expenses of the Trust. 
        In accordance with Section 3808(e) of the Delaware Trust Statute, the affairs of the Trust shall be wound up and the Sponsor or the Liquidating Trustee, as applicable, on behalf of the Trust, will cause any bitcoin then held by the Trust to
      be liquidated in an orderly fashion. The proceeds therefrom, together with any other amounts held by or on behalf of the Trust, will be applied and distributed in the following order of priority: (a) first, to
      the expenses of liquidation and termination, to amounts due to creditors, including without limitation the Sponsor and the Service Providers, to the extent otherwise permitted by law, and to any applicable taxes, other governmental charges and
      contingent or future liabilities of the Trust as the Sponsor or Liquidating Trustee shall determine, in each case, in satisfaction of liabilities of the Trust other than liabilities for distributions to Shareholders in respect of the Shares and (b) second, to the Shareholders pro rata in accordance with their respective Percentage Interests. Upon the dissolution of the Trust, the Sponsor or the Liquidating Trustee, as applicable, shall take full charge of
      the Trust Estate.

    SECTION 13.3  Termination; Certificate of Cancellation. Following the
      dissolution and distribution of the assets of the Trust, the Trust shall terminate, and the Trustee shall, at the written direction of the Sponsor or the Liquidating Trustee, as applicable, and at the expense of the Trust, execute and cause to be
      filed a certificate of cancellation of the Certificate of Trust in accordance with the Delaware Trust Statute. Notwithstanding anything to the contrary contained in this Agreement, the existence of the Trust as a separate legal entity shall continue
      until the filing of such certificate of cancellation.

    
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    ARTICLE XIV

      

      MISCELLANEOUS

    SECTION 14.1  Governing Law. The
      validity and construction of this Agreement and all amendments hereto shall be governed by the laws of the State of Delaware, and the rights of all parties hereto and the effect of every provision hereof shall be subject to and construed according to
      the laws of the State of Delaware without regard to the conflict of laws provisions thereof; provided, however, that causes of action for violations of U.S. federal
      or state securities laws shall not be governed by this Section 14.1; provided, further, that the parties hereto intend that the provisions hereof shall
      control over any contrary or limiting statutory or common law of the State of Delaware (other than the Delaware Trust Statute) and that, to the maximum extent permitted by applicable law, there shall not be applicable to the Trust, the Trustee, the
      Sponsor, the Administrator, any other Service Provider, the Shareholders or this Agreement any provision of the laws (statutory or common) of the State of Delaware (other than the Delaware Trust Statute) pertaining to trusts that relate to or
      regulate in a manner inconsistent with the terms hereof: (a) the filing with any court or governmental body or agency of trustee accounts or schedules of trustee fees and charges, (b) affirmative requirements to post bonds for trustees, officers,
      agents or employees of a trust, (c) the necessity for obtaining court or other governmental approval concerning the acquisition, holding or disposition of real or personal property, (d) fees or other sums payable to trustees, officers, agents or
      employees of a trust, (e) the allocation of receipts and expenditures to income or principal, (f) restrictions or limitations on the permissible nature, amount or concentration of trust investments or requirements relating to the titling, storage or
      other manner of holding of trust assets, or (g) the establishment of fiduciary or other standards or responsibilities or limitations on the acts or powers of trustees or managers that are inconsistent with the limitations on liability or authorities
      and powers of the Trustee or the Sponsor set forth or referenced in this Agreement. Sections 3540 and 3561 of Title 12 of the Delaware Trust Statute shall not apply to the Trust. The Trust shall be of the type commonly
        called a “statutory trust,” and without limiting the provisions hereof, but subject to Sections 1.5 and 1.6, the Trust may exercise all powers that are ordinarily exercised by such a statutory trust under Delaware law. Subject to Sections

          1.5 and 1.6, the Trust specifically reserves the right to exercise any of the powers or privileges afforded to statutory trusts and the absence of a specific reference herein to any such power, privilege or action shall not imply that
        the Trust may not exercise such power or privilege or take such actions.

    SECTION 14.2  Provisions In Conflict With Law or Regulations.

    (a)  The provisions of this Agreement are severable, and if any one or more of such provisions (the “Conflicting Provisions”) are in conflict with the Code, the Delaware Trust Statute, the Securities Act or other applicable U.S. federal or state laws or the rules and regulations of the SEC or any applicable exchange or quotation system, the Conflicting Provisions shall be deemed never to have constituted a part of this Agreement, even without any amendment of this Agreement pursuant to this Agreement; provided,
      however, that such conflict shall not affect or impair any of the remaining provisions of this Agreement or render invalid or improper any action taken or omitted prior to a determination that any such conflict exists. Neither the Sponsor nor
      the Trustee shall be liable for making or failing to make such a determination.

    
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    (b)  If any provision of this Agreement shall be held invalid or unenforceable in any jurisdiction, such holding shall not
      in any manner affect or render invalid or unenforceable such provision in any other jurisdiction or any other provision of this Agreement in any jurisdiction.

    SECTION 14.3  Merger and Consolidation. Subject to the provisions of Section

        1.5, the Sponsor may cause (i) the Trust to be merged into or consolidated with, converted to or to sell all or substantially all of its assets to, another trust or entity; (ii) the Shares of the Trust to be converted into beneficial interests
      in another statutory trust (or series thereof); or (iii) the Shares of the Trust to be exchanged for shares in another trust or company under or pursuant to any U.S. state or federal statute to the extent permitted by law. For the avoidance of doubt,
      subject to the provisions of Section 1.5, the Sponsor, with written notice to the Shareholders, may approve and effect any of the transactions contemplated under (i), (ii) and (iii) above without any vote or other action of the Shareholders.

    SECTION 14.4  Construction. In this Agreement, unless the context
      otherwise requires, words used in the singular or in the plural include both the plural and singular and words denoting any gender include all genders. In this Agreement, unless otherwise indicated in context, all references to Articles or Sections
      refer to an Article or Section of this Agreement. The titles and headings of various Articles and Sections herein are inserted for convenience of reference only and shall not affect the meaning, construction or
      effect of this Agreement.

    SECTION 14.5  Notices. All notices
      or communications under this Agreement shall be in writing and shall be effective upon personal delivery, or if sent by mail, postage prepaid, or if sent electronically, by facsimile or by overnight courier, and addressed,

        in each such case, to the address set forth in the books and records of the Trust or such other address as may be specified in writing or specified below, of the party to whom such notice is to be given, upon the deposit of such notice in the
        United States mail, upon transmission and electronic confirmation thereof or upon deposit with a representative of an overnight courier, as the case may be.

    All notices or other communications under this Agreement that are required to be provided to the following parties shall
      be sent to:

    (i)  if to the Trustee:

    Delaware Trust Company

    Attention: Corporate Trust Administration

    251 Little Falls Drive

    Wilmington, DE 19808

    (ii)  if to the Trust:

    wShares Bitcoin Fund

    c/o Wilshire Phoenix Funds LLC

    2 Park Avenue, 20th Floor

    New York, New York 10016

    

    

    
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    (iii)  if to the Sponsor:

    Wilshire Phoenix Funds LLC

    2 Park Avenue, 20th Floor

    New York, New York 10016

    SECTION 14.6  Counterparts; Electronic Transmission. This Agreement may
      be executed in several counterparts, and all so executed shall constitute one agreement, binding on all of the parties hereto, notwithstanding that all the parties are not signatory to the original or the same counterpart. This Agreement, any
      documents to be delivered pursuant to this Agreement, and any notices hereunder may be transmitted between the parties by email and/or facsimile to an email address or facsimile number at which the recipient has consented to receive the same. The
      parties intend that faxed signatures and electronically imaged signatures such as .pdf files shall constitute original signatures and are binding on all parties.

    SECTION 14.7  Binding Nature of Trust Agreement.  The terms and provisions of this Agreement shall be binding upon
      and inure to the benefit of the heirs, custodians, executors, estates, administrators, personal representatives, successors and permitted assigns of the respective Shareholders. For purposes of determining the rights of any Shareholder or assignee
      hereunder, the Trust and the Sponsor may rely upon the Trust records as to who are Shareholders and permitted assignees, and all Shareholders and assignees agree that the Trust and the Sponsor, in determining such rights, shall rely on such records
      and that Shareholders and their assignees shall be bound by such determination.

    SECTION 14.8  No Legal Title to Trust Estate. The Shareholders shall not
      have legal title to any part of the Trust Estate.

    SECTION 14.9  Creditors. No creditors of any Shareholders shall have any
      right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the Trust Estate.

    SECTION 14.10  Integration. This Agreement constitutes the entire
      agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto, whether written or oral.

    SECTION 14.11  Goodwill; Use of Name. No value shall be placed on the name or goodwill of the Trust, which shall
      belong exclusively to the Sponsor.

    

    

    

    

    [ signature page follows ]

    

    

    

    

    
      39

      
        

    

    IN WITNESS WHEREOF, the undersigned have duly executed this Amended and Restated Declaration of Trust
      and Trust Agreement as of the day and year first above written.

     

    

    	 	
            DELAWARE TRUST COMPANY,

              as Trustee

             

          	 
	 	 	 
	 	
            By:

          	 	 
	 	 	
            Name:

          	 
	 	 	
            Title:

          	 
	 	 	 
	 	 	 
	 	
            WILSHIRE PHOENIX FUNDS LLC,

              not in its individual capacity but solely as Sponsor of the Trust

             

          	 
	 	 	 
	 	
            By:

          	 	 
	 	 	
            Name:

          	 
	 	 	
            Title:

          	 
	 	 	 
	 	 	 

    

    

    

    

    
      
        

    

    
    EXHIBIT A

      

      CERTIFICATE OF TRUST

      OF

      BITCOIN COMMODITY TRUST

    THIS Certificate of Trust of Bitcoin Commodity Trust (the “Trust”) is being duly executed and filed on behalf of the Trust by the
      undersigned, as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del. C. § 3801 et seq.) (the “Act”).

    

    

    	

          	1.	
            Name.  The name of the statutory trust formed by this Certificate of Trust is Bitcoin Commodity Trust.

          

    

    

    	

          	2.	
            Delaware Trustee.  The name and address of the trustee of the Trust with a principal place of business in the State of Delaware are Delaware Trust Company, 251 Little
              Falls Drive, Wilmington DE 19808, Attention: Corporate Trust Administration.

          

    

    

    	

          	3.	
            Effective Date.  This Certificate of Trust shall be effective upon filing.

          

    

    

    

    

    IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of Trust in accordance with Section 3811(a)(1) of the Act.

     

    

    

    

    	 	
            DELAWARE TRUST COMPANY, not in its individual capacity but solely as Delaware Trustee of the Trust

              

              

              By:  /s/ Alan R. Halpern              

              Name: Alan R. Halpern

              Title: Vice Present

          

    

    

    

    

    
      A-1

      
        

    

    

    

    STATE OF DELAWARE

    CERTIFICATE OF AMENDMENT TO

    CERTIFICATE OF TRUST

    

    

    Pursuant to Title 12, Section 3810(b) of the Delaware Statutory Trust Act, the undersigned Trust executed the following Certificate of
      Amendment:

    

    

    	

          	1.	
            Name of Statutory Trust: Bitcoin Commodity Trust.

          

    

    

    	

          	2.	
            The Certificate of Amendment to the Certificate of Trust is hereby amended as follows: The name of the Trust is hereby changed to “wShares Bitcoin Commodity Trust”.

          

    

    

    	

          	3.	
            This Certificate of Amendments shall be effective April 14, 2021.

          

    

    

    IN WITNESS WHEREOF, the undersigned have executed this Certificate on the 14th day of April, 2021 A.D.

     

    	 	 	 
	 	 	 
	 	
            By:

          	
            Alan R. Halpern, Vice President

          	 
	 	 	
                             Trustee

          	 
	 	 	 	 
	 	
            Name:

          	
            Delaware Trust Company

          	 
	 	 	
                        Type or Print

          	 

    

    

    

    

    

    

    
      A-2

      
        

    

    

    

    

    

    STATE OF DELAWARE

    CERTIFICATE OF AMENDMENT TO

    CERTIFICATE OF TRUST

    

    

    Pursuant to Title 12, Section 3810(b) of the Delaware Statutory Trust Act, the undersigned Trust executed the following Certificate of
      Amendment:

    

    

    	

          	1.	
            Name of Statutory Trust: wShares Bitcoin Commodity Trust.

          

    

    

    	

          	2.	
            The Certificate of Amendment to the Certificate of Trust is hereby amended as follows: The name of the Trust is hereby changed to “wShares Bitcoin Fund”.

          

    

    

    	

          	3.	
            This Certificate of Amendments shall be effective February 4, 2022.

          

    

    

    IN WITNESS WHEREOF, the undersigned have executed this Certificate on the 4th day of February, 2022 A.D.

     

    

    

    	 	 	 
	 	 	 
	 	
            By:

          	
            Alan R. Halpern, Vice President

          	 
	 	 	
                             Trustee

          	 
	 	 	 	 
	 	
            Name:

          	
            Delaware Trust Company, not in its 

            individual capacity but solely as Trustee

          	 
	 	 	
                           Type or Print

          	 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

  

  A-3

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