Exhibit 10.1
MEMBERSHIP INTEREST PURCHASE AGREEMENT by and among MINE CRYPTO PRO INC., and METEN SERVICE USA CORP., and BTC DIGITAL LTD. da t ed as of June 28, 2024
MEMBERSHIP INTEREST PURCHASE AGREEMENT Th i s Membersh ip In t eres t Purchase A g reemen t (t h i s "A g reemen t"), da t ed as o f J une 28 , 2024 , i s en t ered i n t o b y and amon g MINE CRYPTO PRO INC . , a Texas co rp ora ti on w it h an address a t 2900 Wesla y an S t ree t, Su it e 415 , Hous t on, Texas 77027 ("Seller" ) , METEN SERVICE USA CORP . , a Ca lifo rn i a co rp ora ti on w it h an address a t 300 S p ec t rum Cen t er Dr i ve, Su it e 400 , Irv i ne, CA 92618 ("Bu y er" ) , and BTC DIGITAL, LTD . ("Paren t"), a Ca y man Islands com p an y w it h an address a t Cr i cke t S q uare, Hu t ch i ns Dr i ve, PO Box 2681 , Grand Ca y man KY 1 - 1111 , Ca y man Islands . RECITALS WHEREAS, Seller owns all o f t he i ssued and ou t s t and i n g membersh ip i n t eres t s (t he "Membersh ip In t eres t s") i n Quench Da t a LLC, an Arkansas l i m it ed li ab i l ity com p an y (t he WHEREAS, Seller w i shes t o sell t o Bu y er, and Bu y er w i shes t o p urchase kom Seller, t he Membersh ip In t eres t s, sub j ec t t o t he t erms and cond iti ons se t fort h here i n ; and WHEREAS, Paren t owns all o f t he i ssued and ou t s t and i n g s t ock o f Bu y e r. NOW, THEREFORE, i n cons i dera ti on o f t he mu tu al covenan t s and a g reemen t s here i nafìer se t fort h and fo r o t her g ood and valuable cons i dera ti on, t he rece ipt and su ffi c i enc y o f wh i ch are hereb y acknowled g ed, t he p a rti es here t o a g ree as fo llows : ARTICLE I PURCHASE AND SALE Sec ti on 1 . 01 Purchase and Sale . Sub j ec t t o t he t erms and cond iti ons se t fort h here i n, a t t he Clos i ng (as de fi ned i n ARTICLE II), Seller shall sell t o Buyer, and Buyer shall purchase fiom Seller, t he Membersh ip In t eres t s, fiee and clear o f an y mo rtg a g e, p led g e, li en, char g e, secur ity i n t eres t, cla i m, commun ity p ro p e rty i n t eres t, o pti on, equ it able i n t eres t, res t r i c ti on o f an y k i nd (i nclud i n g an y res t r i c ti on on use, vo ti n g, t rans fe r, rece ipt o f i ncome, or exerc i se o f an y o t her ownersh ip a tt r i bu t e), or o t her encumbrance (each, an "Encumbrance"), fo r t he cons i dera ti on s p ec ifi ed i n Sec ti on 1 . 02 . Sec ti on 1 . 02 Purchase Pr ic e . The a gg re g a t e p urchase p r i ce fo r t he Membersh ip In t eres t s shall be $ 1 , 990 , 000 (t he "Purchase Pr i ce") . The Purchase Pr i ce w i ll be del i vered b y Bu y er t o Seller as fo llows : (a) Bu y er w i ll p a y t o Seller, b y w i re o f i mmed i a t el y ava i lable L nds, $1,530,000, wh i ch ma y be p a i d i n cash or USDT t o t he bank accoun t or t he walle t address se t fort h on Schedule 1.02 ն ˅ˊ (b) Paren t w i ll i ssue t o Seller, suỢjec t t o a lock - u p p er i od o f s i x ( 6 ) mon t hs fiom t he Clos i n g Da t e (de fi ned below), t he number o f s t ock o f t he Paren t (t he "Paren t S t ock") equal t o t he quo ti en t o f $ 360 , 000 d i v i ded b y t he avera g e p er share clos i n g p r i ce o f t he Paren t S t ock re p o rt ed on t he NASDAQ marke t fo r t he t en ( 10 ) t rad i n g da y s p r i or t o t he Clos i ng Da t e . 2
(c) The Purchase Pr i ce, less t he Holdback Paymen t (de fi ned below), shall be due and p a y able b y Bu y er and Paren t t o Seller on or be fo re t he 7 t h bus i ness da y a ft er t he da t e o f t h i s A g reemen t (t he "Clos i n g Da t e") s o lon g as Seller has (i) de li vered and i ns t alled c rypt o m i n i n g equ ip men t li s t ed on ೦ attached here t o and (ii) Seller has es t ab li shed elec t r i cal p ower, wa t er and i n t erne t access (sub j ec t t o Bu y er p a yi n g an y requ i red p a y men t/ de p os it t o t he elec t r i c, wa t er and i n t erne t serv i ce p rov i ders) a t t he fa c ility loca t ed a t 3101 AR - 77 , Man i la, Arkansas 7244 2 (t he "Fac ility") . (d) Bu y er w i ll p a y t o Seller, b y w i re o f i mmed i a t el y ava i lable k nds, $ 100 , 000 (t he "Holdback Pa y men t") due and p a y able u p on t he cr ypt o m i n i n g equ ip men t o p era ti n g a t t he Fac ility i n accordance w it h it s i n t ended use t o Bu y er's commerc i all y reasonable sa ti s fa c ti on fo r t h irty ( 30 ) da y s a ft er t he Clos i n g Da t e and t he PDU t rans fo rma ti on i s comple t e . Sec ti on 1.03 Fac ility Con ti n g enc y. A t an y p o i n t p r i or t o t he Clos i n g Da t e , if Bu y er de t ern 䇒 nes i n it s sole d i scre ti on t ha t Seller has no t k l fi lled it s obl ig a ti ons p rov i ded i n Sec ti on 1.02 t o Bu y er's commerc i all y reasonable sa ti s fa c ti on (and such fai lure i s t hrou g h no fa ult o f Bu y er, i nclud i n g bu t no t l i m it ed t o fai l i n g t o p a y u ti l ity de p os it s t o En t er gy Arkansas and t he wa t er u tility com p an y and no t caused b y or resul t s fіom ac t s be y ond Seller's reasonable con t rol , i nclud i n g w it hou t l i m it a ti on: (a) ac t s o f God; (b) flood , fi re , ea rt hquake or ex p los i on; (c) war, i nvas i on, hos tiliti es (whe t her war i s declared or no t) , t error i s t t hrea t s or ac t s , r i o t or o t her c i v i l umes t ; (d) g overnmen t order or law; (e) ac ti ons , embar g oes or blockades i n e ff ec t on or a ft er t he da t e o f t h i s ac ti on b y an y g overnmen t al au t hor ity ; (g ) na ti onal or re gi onal emer g enc y; (h) s t r i kes, labor s t o pp a g es or slowdowns or o t her i ndus t r i al d i s tu rbances; (i) e pi dem i c, p andem i c or s i m i lar i nfluenza or bac t er i al i n fe c ti on ; (j) emer g enc y s t a t e ; (k) sho rt a g e o f adequa t e med i cal su ppli es and equ ip men t ; ( 1 ) sho rt a g e o f p ower or t rans p o rt a ti on fa c ኡ ti es ; and (m ) o t her s i m i lar even t s be y ond t he reasonable con t rol o f Seller), Seller shall be i n de fa ul t under t h i s A g reemen t, and , i n add iti on t o an y o t her remed i es Bu y er ma y have a t law or i n equ ity, Bu y er ma y t erm i na t e t h i s A g reemen t and Seller a g rees t o p rom ptly re k nd t o Bu y er , b y w i re p a y men t o f i mmed i a t el y ava i lable k nds , an y p o rti on o f t he Purchase Pr i ce alread y p a i d b y Bu y er t o Selle r . ARTICLE II CLOSING Sec ti on 2 . 01 Clos i n g . The clos i n g o f t he t ransac ti ons con t em p la t ed b y t h i s A g reemen t (t he "Clos i n g") shall t ake p lace once t he k ll Purchase Pr i ce, less t he Holdback Pa y men t, has been p a i d t o Seller i n accordance w it h Sec ti on 1 . 02 here i n on t he Clos i n g Da t e, a t wh i ch ti me all documen t s p rev i ousl y c i rcula t ed w it h d igit al s ig na tu res shall be deemed released and t he t ransac ti ons con t em p la t ed b y t h i s A g reemen t consumma t ed . Sec ti on 2.02 Seller Clos i n g De li verables. A t t he Clos i n g, Seller shall de li ver t o Bu y er t he fo llow i ng : (a) An ass ig nmen t o f t he Membersh ip In t eres t s t o Bu y er i n fo rm and subs t ance sa ti s fa c t o ry t o Bu y er (t he "Ass ig nmen t"), dul y execu t ed b y Selle r . 3
(a) (b) A ce rtifi ca t e o f t he secre t a ry (or o t her o ffi cer) o f Seller ce rtifyi n g (i) t ha t a tt ached t here t o are t rue and com p le t e co pi es o f all resolu ti ons o f t he board o f d i rec t ors and t he shareholders o f Seller au t hor i z i n g t he execu ti on, de li ve ry, and p er fo rmance o f t h i s A g reemen t and t he o t her a g reemen t s, i ns t rumen t s, and documen t s re q u i red t o be de li vered i n connec ti on w it h t h i s A g reemen t or a t t he Clos i n g (collec ti vel y, t he "Transac ti on Documen t s") t o wh i ch Seller i s a p a rty and t he consumma ti on o f t he transac ti ons con t em p la t ed hereb y and t hereb y, and t ha t such resolu ti ons are i n h ll fo rce and e ff ec t, (ii) t he names, titl es, and s ig na tu res o f t he officers or re p resen t a ti ves o f Seller au t hor i zed t o s ig n t h i s A g reemen t and t he o t her Transac ti on Documen t s t o wh i ch it i s a p a rty, and (iii) t ha t a tt ached t here t o are t rue and com p le t e co pi es o f t he g overn i n g documen t s o f t he Com p an y, i nclud i n g an y amendmen t s or res t a t emen t s t hereo f, and t ha t such g overn i n g documen t s are i n h ll fo rce and e ff ec t . (c) Res ig na ti ons o f an y mana g ers, officers, or o t her p ersons serv i n g as a mana g er i al offic i al o f t he Com p an y, e ff ec ti ve as o f t he Clos i n g Da t e . (d) A ce rtifi ca t e o f g ood s t and i n g (or it s e q u i valen t) fo r t he Com p an y ce rtifi ed b y t he Secre t a ry o f S t a t e or s i m i lar Governmen t al Au t hor ity o f each s t a t e where t he Com p an y i s requ i red t o be qua lifi ed, re gi s t ered, or au t hor i zed t o do bus i ness . For p u rp oses o f t h i s A g reemen t, "Governmen ta l Au t hor ity" means an y fe deral, s t a t e, local, or fo re ig n g overnmen t or p ol iti cal subd i v i s i on t hereo f, or an y a g enc y or i ns t rumen t a lity o f such g overnmen t or p ol iti cal subd i v i s i on, or an y arb it ra t or, cou rt, or t r i bunal o f com p e t en t j ur i sd i c ti on . (e) A ce rtifi ca t e p ursuan t t o Treasu ry Re g ula ti ons Sec ti on 1 . 1445 - 2 (b) t ha t Seller i s no t a fo re ig n p erson w it h i n t he mean i n g o f Sec ti on 1445 o f t he In t ernal Revenue Code of 1986 (as amended, t he "Code") . Sec ti on 2.03 Bu y er's De li ver i es. A t t he Clos i n g, Bu y er shall de li ver t he fo llow i n g t o Seller: t he Purchase Pr i ce. (b) A cer tifi ca t e o f t he secre t a ry (or o t her officer) o f Bu y er and Paren t ce rtiki n g (i) t ha t a tt ached t here t o are t rue and com p le t e co pi es o f a ppli cable s t a t e i ssued Good S t and i n g Ce rtifi ca t es, and o f all resolu ti ons o f t he board o f d i rec t ors o f Bu y er and Paren t au t hor i z i n g t he execu ti on, de li ve ry, and p er fo rmance o f t h i s A g reemen t and t he o t her a g reemen t s, i ns t rumen t s, and documen t s re q u i red t o be del i vered i n connec ti on w it h t h i s A g reemen t or a t t he Clos i n g (collec ti vel y, t he "Transac ti on Documen t s") t o wh i ch Bu y er and/or Paren t i s a p a rty and t he consumma ti on o f t he t ransac ti ons con t em p la t ed hereb y and t hereb y, and t ha t such resolu ti ons are i n h ll fo rce and e ff ec t, (ii) t he names, tit les, and s ig na tu res o f t he officers or re p resen t a ti ves o f Bu y er and Paren t au t hor i zed t o s ig n t h i s A g reemen t and t he o t her Transac ti on Documen t s t o wh i ch one or bo t h are a p a rty, and (iii) t ha t attached t here t o are t rue and com p le t e co pi es o f t he g overn i n g documen t s o f t he Bu y er and Paren t, i nclud i n g an y amendmen t s or res t a t emen t s t hereo f, and t ha t such g overn i n g documen t s are i n h ll fo rce and e ff ec t . 4
ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER Seller represents and warrants to Buyer that the statements contained in this ARTICLE III are true and correct as of the date hereof . Section 3 . 01 Organizatio n and Authority of Seller . Seller i s a corporation duly organized, validly existing, and in good standing under the Laws (as defined in Section 3 . 05 ) of the state of Texas . Seller has hll corporate power and authority to enter into this Agreement and the other Transaction Documents to which Seller i s a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby . The execution and delivery by Seller of this Agreement and any other Transaction Document to which Seller i s a party, the performance by Seller of its obligations hereunder and thereunder, and the consummation by Seller of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Seller . This Agreement and each Transaction Document to which Seller i s a party constitute legal,valid,and binding obligations of Seller enfȧrceable against Seller in accordance with their respective terms . Section 3 . 02 Organization , Authority , and Qualification of the Company . The Company is a limited liability company duly organized , validly existing , and in good standing under the Laws of the state of Arkansas and has full limited liability company power and authority to own,operate,or lease the properties and assets now owned,operated,or leased by it and to carry on its business as it has been and is cu ⴟ ently conducted . The Company is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business as cu ݰ ently conducted makes such licensing or qualification necessary . Section 3.03 Capitalization. (a) Seller is the record owner of and has good and valid title to the Membership Interests, kee and clear of all Encumbrances . The Membership Interests constitute 100 % of the total issued and outstanding membership interests in the Company . The Membership Interests have been duly authorized and are validly issued, hlly - paid, and non - assessable . Upon consummation of the transactions contemplated by this Agreement,Buyer shall own all of the Membership Interests, kee and clear of all Encumbrances . (b) The Membership Interests were issued in compliance with applicable Laws . The Membership Interests were not issued in violation of the certificate of formation, company agreement, or other governing documents of the Company (collectively, the "Gov e _ rnin g Do ??n_i e ೦ t Y ") or _ an ? other ೦ greement, ? nderstand fi ? g, arra n ೦ e m _ e ? t , . or commitment to which Seller or the Company i s a party and are not subject to or in violation of any preemptive or similar rights of any individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association, or other entity (each, a "Person") . (c) There are no outstanding or authorized options, warrants, convertible securities, or other rights, agreements, or commitments of any character relating to the 5
membersh ip i n t eres t s i n t he Com p an y or ob lig a ti n g Seller or t he Com p an y t o i ssue or sell an y membersh ip i n t eres t s (i nclud i n g t he Membersh ip In t eres t s), or an y o t her i n t eres t, i n t he Com p an y . O t her t han t heGovern i n g Documen t s, t here are no vo ti n g t rus t s, p rox i es, or o t her a g reemen t s or unders t and i n g s i n e ff ec t w it h res p ec t t o t he vo ti n g or t rans fe r o f an y o f t he Membersh ip In t eres t s . Sec ti on 3 . 04 No Subs i d i ar i es . The Com p an y does no t have, or have t he r ig h t t o ac q u i re, an ownersh ip i n t eres t i n an y o t her Person . Sec ti on 3 . 05 No Conflic t s or Consen t s . The execu ti on , del i ve ry , and p er fo rmance b y Seller o f t h i s A g reemen t and t he o t her Transac ti on Documen t s t o wh i ch it i s a p a rty, and t he consumma ti on o f t he t ransac ti ons con t em p la t ed hereb y and t hereb y , do no t and w i ll not : (a) v i ola t e or con fli c t w it h an y p rov i s i on o f t he ce rtifi ca t e o f fo rma ti on , b y laws, com p an y a g reemen t , or o t her g overn i n g documen t s o f Seller or t he Com p an y ; (b) v i ola t e or con fli c t w it h an y p rov i s i on o f an y s t a tut e , law , ord i nance, re g ula ti on , rule, code, t rea ty, or o t her re q u i remen t o f an y Governmen t al Au t hor ity (collec ti vel y , "Law") or an y order, wr it , j ud g men t , i n j unc ti on , decree, de t erm i na ti on, p enal ty , or award en t ered b y or w it h an y Governmen t al Au t hor ity ("Governmen t al Order") a pp l i cable t o Seller or t he Com p an y ; (c) re q u i re t he consen t , no ti ce , or fili n g w it h or o t her ac ti on b y an y Person or re q u i re an y Perm it (as de fi ned i n Sec ti on 3 . 14 (b)) , li cense, or Governmen t al Order ; (d ) v i ola t e or con fli c t w it h , result i n t he accelera ti on o f, or crea t e i n an y p a rty t he r ig h t t o accelera t e , t erm i na t e , or mod ify an y contrac t , lease, deed, mo rtg a g e , li cense, i ns t rumen t , no t e, i nden tu re, j o i n t ven tu re , or an y o t her a g reemen t , con ࡾ it men t , or le g all y b i nd i n g arran g emen t, whe t her wr itt en or oral (collec ti vel y , "Con t rac t s") , t o wh i ch Seller or t he Com p an y i s a p a rty or b y wh i ch Seller or t he Com p an y i s bound or t o wh i ch an y o f t he i r res p ec ti ve p ro p e rti es and asse t s are sub j ec t ; or (e) result i n t he crea ti on or i m p os iti on o f an y Encumbrance on an y p ro p e rti es or asse t s o f t he Com p an y . Sec ti on 3 . 06 F i nan ci al S t a t emen t s . The fi nanc i al s t a t emen t s, bank records, and accoun ti n g records (t he "F i nan ci al S tat emen t s") o f t he Com p an y have been p re p ared i n accordance w it h g enerall y acce pt ed accoun ti n g p r i nc ip les i n e ff ec t i n t he Un it ed S t a t es k om ti me t o ti me ("GAAP"), a ppli ed on a cons i s t en t bas i s t hrou g hou t t he p er i od i nvolved . The F i nanc i al S t a t emen t s are based on t he books and records o f t he Com p an y and fai rl y p resen t t he fi nanc i al cond iti on o f t he Com p an y as o f t he res p ec ti ve da t es t he y were p re p ared and t he resul t s o f t he o p era ti ons o f t he Com p an y fo r t he p er i ods i nd i ca t ed . Each t ransac ti on de pi c t ed on t he F i nanc i al S t a t emen t s re p resen t s a val i d t ransac ti on fo r ac tu al g oods and serv i ces rece i ved or p rov i ded b y t he Com p an y a ft er an arm's len gt h ne g o ti a ti on be t ween t he p a rti es t o each such t ransac ti on . The Com p an y ma i n t a i ns a s t andard s y s t em o f accoun ti n g es t abl i shed and adm i n i s t ered i n accordance w it hGAAP . Sec ti on 3 . 07 Und i sclosed L i ab iliti es . Exce pt as se t fort h on ೦ o f t he D i sclosure Schedules , t he Com p an y has no li ab ࢃ ti es, obl ig a ti ons , or comm it men t s o f an y na tu re wha t soever , whe t her asse rt ed , known, absolu t e , accrued, ma tu red , or o t herw i se (collec ti vel y, "L i ab iliti es") . Sec ti on 3 . 08 Ma t er i al Con t rac t s . 6
(a) ೦ o f t he D i sclosure Schedules l i s t s each Con t rac t t ha t i s ma t er i al t o t he Com p an y (such Con t rac t s, t o g e t her w it h all Con t rac t s concern i n g t he occu p anc y, mana g emen t, or o p era ti on o f an y Real Pro p e rty (as de fi ned i n Sec ti on 3 . 09 (a)), be i n g "Ma t er i al Con t rac t s"), i nclud i n g t he fo llow i n g : (i) each Con t rac t o f t he Com p an y i nvolv i n g a gg re g a t e cons i dera ti on i n excess o f $5,000; (ii) all Con t rac t s t ha t p rov i de fo r t he i ndemn ifi ca ti on b y t he Co ٝ p an y o f an y Person or t he assum pti on o f an y Tax (as de fi ned i n Sec ti on 3.18(a)), env i ronmen t al, or o t her L i ab ility o f an y Person; (iii) all Con t rac t s rela ti n g t o In t ellec tu al Pro p e rty (as de fi ned i n Sec ti on 3.10(a)) , i nclud i n g all li censes, subl i censes, settlen 䇠 n t s, coex i s t ence a g reemen t s, covenan t s no t t o sue, and p erm i ss i ons; (iv) exce pt fo r Con t rac t s rela ti n g t o t rade p a y ables, all Con t rac t s rela ti n g t o i ndeb t edness (i nclud i n g, w it hou t l i m it a ti on, g uaran t ees) o f t he Com p an y ; and (v) all Con t rac t s t ha t li m it or p u rp o rt t o l i m it t he ab ility o ft he Com p an y t o com p e t e i n an y li ne o f bus i ness or w it h an y Person or i n an y g eo g ra p h i c area or dur i n g an y p er i od o f ti me . (b) Each Ma t er i al Con t rac t i s val i d and b i nd i n g on t he Com p an y i n accordance w it h it s t erms and i s i n h ll fo rce and e ff ec t . None o ft he Com p an y or an y o t her p a rty t here t o i s i n breach o f or de fa ult under (or i s alle g ed t o be i n breach o f or de fa ult under or has p rov i ded or rece i ved an y no ti ce o f an y i n t en ti on t o t erm i na t e, an y Ma t er i al Con t rac t . Com p le t e and correc t co pi es o f each Ma t er i al Con t rac t (i nclud i n g all mod ifi ca ti ons, amendmen t s, and su pp lemen t s t here t o and wa i vers t hereunder) have been made ava i lable t o Buye r . Sec ti on 3.09 Real Pro p er ty; T itl e t o Asse t s. (a) ೦ o f t he D i sclosure Schedules l i s t s all real p ro p e rty i n wh i ch t he Com p an y has an ownersh ip or leasehold (or subleasehold) i n t eres t (t o g e t her w it h all bu i ld i n g s, s t ruc tu res, and i m p rovemen t s loca t ed t hereon, t he "Real Pro p er ty"), i nclud i n g : (i) t he s t ree t address o f each p arcel o f Real Pro p e rty ; (ii) fo r Real Pro p e rty t ha t i s leased or subleased b y t he Com p an y , t he landlord under t he lease , t he ren t al amoun t cu ⴟ en tly be i n g p a i d , and t he ex pi ra ti on o f t he t erm o f such lease or sublease , and an y t erm i na ti on or renewal r ig h t s o f e it her p a rty ; and (iii ) t he curren t use o f each p arcel o f Real Pro p e rty . Seller has del i vered or made ava i lable t o Bu y er t rue , con ӣ ec t , and com p le t e co pi es o f all Con t rac t s, titl e i nsurance p ol i c i es , and surve y s rela ti n g t o t he Real Pro p e rty . (b) The Com p an y has g ood and val i d (and, i n t he case o f owned Real Pro p e rty, g ood and i nde fe as i ble fe e s i m p le) tit le t o, or a va li d leasehold i n t eres t i n, all Real Pro p e rty and p ersonal p ro p e rty and o t her asse t s reflec t ed i n t he F i nanc i al S t a t emen t s . All Real Pro p e rty and such p ersonal p ro p e rty and o t her asse t s (i nclud i n g leasehold i n t eres t s) are fr ee and clear o f Encumbrances . 7
(a) (c ) The Company is not a sublessor or grantor under any sublease or other instrument granting to any other Person any right to possess, lease , occupy , or use any leased Real Property . The use of the Real Property in the conduct of the Company's business does not violate in any material respect any Law, covenant , condition , restriction, easement, license , pem 䇒 t , or agreement and no material improvements constituting a part of the Real Property encroach on real property owned or leased by a Person other than the Com p an y . Section 3.10 Intellectual Property. (a) "Intellectual Property" means any and all of the following in any jurisdiction throughout the world : (i) issued patents and patent applications ; (ii) trademarks, service marks, trade names, and other similar indicia of source or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration, and renewals of, any of the foregoing ; (iii) copyrights, including all applications and registrations ; (iv) trade secrets, know - how, inventions (whether or not patentable), technology, and other confidential and proprietary information and all rights therein ; (v) internet domain names and social media accounts and pages ; and (vi) other intellectual or industrial property and related proprietary rights, interests, and protections . (b) The Company owns or has the valid and enforceable right to use all Intellectual Property used or held for use in or necessary for the conduct of the Company's business as currently conducted or as proposed to be conducted (the "Company Intellectual Property"), kee and clear of all Encumbrances . All of the Company Intellectual Property is valid and enforceable, and all Company Intellectual Property registrations are subsisting and in hll force and effect . The Company has taken all necessary steps to maintain and enforce the Company Intellectual Property . (c) The conduct ofthe Company's business as currently and formerly conducted and as proposed to be conducted has not inkinged, misappropriated, or otherwise violated and will not inkinge, misappropriate, or otherwise violate the Intellectual Property or other rights of any Person . No Person has infringed, misappropriated, or otherwise violated any Company Intellectual Property . Section 3.11 Material Customers and Suppliers. Section 3 . 11 ն of the Disclosure Schedules sets forth each customer who has paid aggregate consideration to the Company for goods or services rendered in an amount greater than or e q ual to $ 5 , 000 since the formation of the Company (collectively, the "Material Customers") . The Company has not received any notice, and has no reason to believe , that any of its Material Customers has ceased , or intends to cease afier the Closing , to purchase or use its goods or services or to otherwise terminate or materially reduce its relationship with the Company . (b) ೦ of the Disclosure Schedules also sets forth each supplier to whom the Company has paid consideration for goods or services rendered in an amount 8
g rea t er t han or equal t o $ 5 , 000 s i nce t he fo rma ti on o f t he Com p an y (collec ti vel y, t he "Ma t er i al Su ppli ers") . The Com p an y has no t rece i ved an y no ti ce, and has no reason t o bel i eve, t ha t an y o f it s Ma t er i al Su ppli ers has ceased, or i n t ends t o cease, t o su pp l y g oods or serv i ces t o t he Com p an y or t o o t herw i se t erm i na t e or ma t er i all y reduce it s rela ti onsh ip w it h t he Com p an y . Sec ti on 3 . 12 Insurance . Seller has p rov i ded t o Bu y er a t rue and com p le t e l i s t o f all curren t p ol i c i es or b i nders o f i nsurance ma i n t a i ned b y Seller or it s A ffili a t es (i nclud i n g t he Com p an y) and rela ti n g t o t he asse t s, bus i ness, o p era ti ons, em p lo y ees, o ffi cers, and sole member o f t he Com p an y (collec ti vel y, t he "Insurance Po lici es") . Such Insurance Pol i c i es : (a) are i n k ll fo rce and e ff ec t ; (b) are val i d and b i nd i n g i n accordance w it h t he i r t erms ; (c) are p rov i ded b y carr i ers who are fi nanc i all y solven t ; and (d) have no t been sub j ec t t o an y la p se i n covera g e . Ne it her t he Seller nor an y o f it s A ffi l i a t es (i nclud i n g t he Com p an y) has rece i ved an y wr itt en no ti ce o f cancella ti on o f, p rem i um i ncrease w it h res p ec t t o, or a lt era ti on o f covera g e under, an y o f such Insurance Pol i c i es . All p rem i ums due on such Insurance Po li c i es have been p a i d . None o f Seller or an y o f it s A ffili a t es (i nclud i n g t he Com p an y) i s i n de fa ul t under, or has o t herw i se fai led t o com p l y w it h, i n an y ma t er i al res p ec t, an y p rov i s i on con t a i ned i n an y Insurance Po li c y . The Insurance Pol i c i es are o f t he typ e and i n t he amoun t s cus t omar i l y carr i ed b y Persons conduc ti n g a bus i ness s i m i lar t o t he Com p an y and are su ffi c i en t fo r com pli ance w it h all a pp l i cable Laws and Con t rac t s t o wh i ch t he Com p an y i s a p a rty or b y wh i ch it i s bound . For p u rp oses o ft h i s A g reement : (x) "A ffili a t e" o f a Person means an y o t her Person t ha t d i rec t l y or i nd i rec t l y, t hrou g h one or more i n t ermed i ar i es, con t rols, i s con t rolled b y, or i s under common con t rol w it h, such Person ; and (y) t he t erm "con t rol" (i nclud i n g t he t erms "con t rolled b y" and "under common con t rol w it h") means t he p ossess i on, d i rec t l y or i nd i rec t l y, o f t he p ower t o d i rec t or cause t he d i rec ti on o f t he mana g emen t and p ol i c i es o f a Person, whe t her t hrou g h t he ownersh ip o f vo ti n g secur iti es, b y con t rac t, or o t herw i se . Sec ti on 3 . 13 Le g al Proceed i n g s ; Governmen ta l Orders . (a) Th ヵ re are no cla i ms , acfions , causes o f ac ti on, demands, lawsu it s, arb it ra ti ons, i nqu i r . es, aud it s, no ti ces o f v i ola ti on, p roceed i n g s, litig a ti on, c it a ti ons, i summons, sub p oenas, or i nves tig a ti ons o f an y na tu re, whe t her a t law or i n equ ity (collec ti vel y, "Ac ti ons") p end i n g or t hrea t ened a g a i ns t or b y t he Com p an y, Seller, or an y A ffi l i a t e o f Seller : (i) rela ti n g t o or a ff ec ti n g t he Com p an y or an y o f t he Com p an y 's p ro p e rti es or asse t s ; or (ii) t ha t challen g e or seek t o p reven t, en j o i n, or o t herw i se dela y t he t ransac ti ons con t em p la t ed b y t h i s A g reemen t . No even t has occurred or c i rcums t ances ex i s t t ha t ma y gi ve r i se t o, or serve as a bas i s fo r, an y such Ac ti on . (b) There are no ou t s t and i n g, and t he Com p an y i s i n com p l i ance w it h all, Governmen t al Orders a g a i ns t, rela ti n g t o, or a ff ec ti n g t he Com p an y or an y o f it s p ro p e rti es or asse t s . Sec ti on 3 . 14 Com pli ance w it h Laws ; Perm it s . (a ) To t he bes t o f t he Com p an y 's ac tu al knowled g e , t he Com p an y has com p l i ed, and i s now com p l yi n g , w it h all Laws a pp l i cable t o it or it s bus i ness , p ro p e rt 䇠 s, or asse t s . 9
(b) Seller, upon information and belief, possesses all permits, licenses, franchises, approvals, registrations, certificates, variances, and similar rights obtained, or required to be obtained, kom Governmental Authorities (collectively, "Permits") that are required for the Company to conduct its business, including, without limitation, owning or operating any ofthe Real Property, have been obtained and are valid and in kll force and effect . Section 3.15 Environmental Matters. (a) Upon infom ݄ on and belief, the Company has complied , and is now complying , with all Environmental Laws . Neither the Company nor Seller has received notice kom any Person that the Company , its business or assets , or any real property currently or formerly owned , leased, or used by the Company is or may be in violation of any Enviro MN ental Law or any applicable Law regarding Hazardous Substances . (b) Seller has no actual knowledge of any spill, leak , discharge , injection, escape, leaching, dumping , disposal , or release of any kind of any Hazardous Substances in violation of any Environmental Law : (i) with respect to the business or assets of the Company ; or (ii) at , kom, in , adjacent to , or on any real property currently or formerly owned , leased, or used by the Company . There are no Hazardous Substances in , on , about, or migrating to any real property currently or fom 䇠 rly owned, leased, or used by the Company, and such real property is not affected in any way by any Hazardous Substances . (c) As used in this Agreement : (i) "Environmental Laws" means all Laws, n Ą w . or here ೦ fter in . ef ೦ ect, in _ each ca ? e as ೦ 1 ? ended . or ೦ ? pple ೦ ente _ d kom . time to time : relating to the regulation and protection of human health, safety, the environment, and natural resources, including any federal, state, or local transfer of ownership notification or approval statutes ; and (ii) "Hazardous Substances" means : (A) "hazardous materials," "hazardous wastes," "hazardous substances," "industrial wastes," or "toxic pollutants," as such terms are defined under any Enviromnental Laws ; (B) any other hazardous or radioactive substance, contaminant, or waste ; and (C) any other substance with respect to which any Environmental Law or Gove RN mental Authority requires enviromnental investigation, regulation, monitoring, or remediation . Section 3.16 Employee Benefit Matters. (a) The Company has no "employee benefit plan" as defined in Section 3 ( 3 ) of the Employee Retirement Income Security Act of 1974 (as amended, and including the regulations thereunder, "ERISA") (each, a "Benefit Plan") . (b) The Company has not incurred and does not reasonably expect to incur : (i) any Liability relating to any Benefit Plan . (c) The Company has not now or at any time within the previous six years contributed to, sponsored, or maintained : (i) any "multiemployer plan" as defined in Section 3 ( 37 ) ofERISA ; (ii) any "single - employer plan" as defined in Section 4001 (a)( 15 ) ofERISA ; (iii) any "multiple employer plan" as defined in Section 413 (c) ofthe Code ; (iv) any "multiple employer welfare arrangement" as defined in Section 3 ( 40 ) ofERISA ; (v) a 10
levera g ed em p loyee s t ock ownersh ip p lan descr i bed i n Sec ti on 4975 (e)( 7 ) o f t he Code ; or (v i) any o t her Bene fit Plan subjec t t o requ i red m i n i mum h nd i n g requ i remen t s . (d) Ne it her t he execu ti on o f t h i s A g reemen t nor any o f t he t ransac ti ons con t em p la t ed by t h i s A g reemen t w i ll, e it her alone or i n comb i na ti on w it h any o t her event : (i) en tit le any curren t or fo rmer member, o ffi cer, em p loyee, i nde p enden t con t rac t or, or consul t an t o f t he Com p any t o any severance p ay, i ncrease i n severance p ay, or o t her p aymen t ; (ii) accelera t e t he ti me o f p aymen t, fu nd i n g, or ves ti n g, or i ncrease t he amoun t o f com p ensa ti on (i nclud i n g s t ock - based com p ensa ti on) due t o any such i nd i v i dual ; (iii) l i m it or res t r i c t t he r ig h t o f t he Com p any t o amend or t erm i na t e any Bene fit Plan ; (i v) i ncrease t he amoun t p ayable under any Bene fit Plan ; (v) result i n any "excess p arachu t e p aymen t s" w it h i n t he mean i n g o f Sec ti on 280 G(b) o f t he Code ; or (v i) requ i re a "g ross - u p" or o t her p aymen t t o any "d i squa lifi ed i nd i v i dual" w it h i n t he mean i n g o f Sec ti on 280 G(c) of the Code . Sec ti on 3 . 17 Em p loymen t Ma tt ers . (a) The Com p any has no em p loyees and has no t, a t any ti me s i nce it s fo rma ti on, had any employees . (b) U p on i n fo rma ti on and be li e f, t he Com p any i s and has been i n com pli ance w it h : (i) all a ppli cable em p loymen t Laws and a g reemen t s re g ard i n g h i r i n g, em p loymen t, t erm i na ti on o f em p loymen t, p lan t clos i n g s and mass layo ff s, em p loymen t d i scr i m i na ti on, harassmen t, re t al i a ti on, and reasonable accommoda ti on, leaves o f absence, t erms and cond iti ons o f em p loymen t, wa g es and hours o f work, em p loyee class ifi ca ti on, em p loyee health and sa fety, en g a g emen t and class ifi ca ti on o f i nde p enden t con t rac t ors, p ayroll t axes, and i mm ig ra ti on w it h res p ec t t o all em p loyees, i nde p enden t con t rac t ors, and con ti n g en t workers ; and (ii) all a pp l i cable Laws rela ti n g t o t he rela ti ons between it and any labor or g an i za ti on, t rade un i on, work counc i l, or o t her body re p resen ti n g em p loyees o f t he Company . Sec ti on 3 . 18 Taxes . (a) All re tu rns, declara ti ons, re p o rt s, i n fo rma ti on re t urns and s t a t emen t s, and o t her documen t s rela ti n g t o Taxes (i nclud i n g amended re tu rns and cla i ms fo r re h nd) (collec ti vely, "Tax Re t urns") requ i red t o be fi led by t he Com p any on or be fo re t he Clos i n g Da t e have been ti mely fi led . Such Tax Re tu rns are t rue, correc t, and com p le t e i n all res p ec t s . All Taxes due and ow i n g by t he Com p any (whe t her or no t shown on any Tax Re tu rn) have been ti mely p a i d . No ex t ens i ons or wa i vers o f s t a tut es o f li m it a ti ons have been gi ven or reques t ed w it h res p ec t t o any Taxes o f t he Com p any . The t erm "Taxes" means all fe deral, s t a t e, local, fo re ig n, and o t her i ncome, g ross rece ipt s, sales, use, p roduc ti on, ad valorem, t rans fe r, kanch i se, re gi s t ra ti on, p ro fit s, l i cense, lease, serv i ce, serv i ce use, w it hhold i n g, p ayroll, em p loymen t, unem p loymen t, es ti ma t ed, exc i se, severance, env i ronmen t al, s t am p, occu p a ti on, p rem i um, p ro p e rty (real or p ersonal), real p ro p e rty g a i ns, w i nd fa ll p ro fit s, cus t oms, du ti es, or o t her t axes, fe es, assessmen t s, or char g es o f any k i nd wha t soever, t o g e t her w it h any i n t eres t, add iti ons, or p enal ti es w it h res p ec t t here t o and any i n t eres t i n res p ec t o f such add iti ons or p enal ti es . 11
(b) The Company has withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, customer, member, or other party, and complied with all information reporting and backup withholding provisions of applicable Law . (c) There are no liens for Taxes (other than for cun ӣ ent Taxes not yet due and payable) upon the assets of the Company. (d) The Company has been treated as a disregarded entity for U.S. federal, state, and local income tax purposes since its formation. (e) Seller is not a "foreign person" as that term is used in Treasury Regulations Section 1.1445 - 2. Section 3.19 Reserved. Section 3 . 20 Brokers . No broker, finder, or investment banker is entitled to any brokerage, finder's, or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Seller . Section 3.21 Reserved. ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER AND PARENT Buyer and Parent represent and warrant to Seller that the statements contained in this ARTICLE IV are true and correct as of the date hereof . Section 4 . 01 Organization and Authority of Buyer and Parent . Buyer i s a corporation duly organized, validly existing, and in good standing under the Laws of the state of California . Parent is a company duly organized, validly existing and in good standing under the Laws of Cayman Islands . Buyer and parent have hll corporate power and authority to enter into this Agreement and the other Transaction Documents to which Buyer and/or Parent are a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby . The execution and delivery by Buyer and Parent of this Agreement and any other Transaction Document to which Buyer and/or Parent is a party, the performance by Buyer and/or Parent of its obligations hereunder and thereunder, and the consummation by Buyer and Parent of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Buyer and Parent . This Agreement and each Transaction Document to which Buyer and/or Parent is a party constitute legal, valid, and binding obligations of Buyer and Parent enforceable against Buyer and/or Parent in accordance with their respective terms . Section 4 . 02 No Conflicts ; Consents . The execution, delivery, and performance by Buyer and Parent of this Agreement and the other Transaction Documents to which one or both is a party, and the consummation of the transactions contemplated hereby and thereby, do not and 12
will not : (a) violate or conflict with any provision of the certificate of formation, or other governing documents of Buyer or Parent ; or (b) require the consent, notice, declaration, or filing with or other action by any Person or require any Permit, license, or Governmental Order . Section 4 . 03 Investment Purpose . Buyer is acquiring the Membership Interests solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof or any other security related thereto within the meaning of the Securities Act of 1933 , as amended (the "Securities Act") . Buyer acknowledges that the Membership Interests are not registered under the Securities Act or any state securities laws and that the Membership Interests may not be transferred or sold except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefiom and subject to state securities laws and regulations, as applicable . Section 4 . 04 Brokers . No broker, finder, or investment banker is entitled to any brokerage, finder's, or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Buyer . ARTICLE V COVENANTS Section 5 . 01 Confidentiality . From and aTer execution of this Agreement, Seller, Buyer and Parent shall, and shall cause their Affiliates and their respective directors, officers, employees, consultants, financial advisors, counsel, accountants, and other agents to hold, in confidence, any and all information, in any form, concerning the Company, except to the extent that Seller, Buyer and Parent can show that such information is generally available to and known by the public through no fault of Seller or Buyer or Parent, any of its Affiliates, or their respective representatives . If Seller or Buyer or Parent is compelled to disclose any information by Governmental Order or Law, such party shall promptly notify the other party in writing and shall disclose only that portion of such information which is legally required to be disclosed, provided that such party shall use reasonable best efforts to obtain as promptly as possible an appropriate protective order or other reasonable assurance that confidential treatment will be accorded such information . Section 5 . 02 Further Assurances . From and after execution of this Agreement, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents and instruments and take such hrther actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and the other Transaction Documents . ARTICLE VI TAX MATTERS Section 6.01 Tax Covenants. (a) Without the prior written consent of Buyer, not to be unreasonably withheld, conditioned or delayed, Company shall not, to the extent it may affect or relate to the 13
Company : (i) make, change, or rescind any Tax election ; (ii) amend any Tax Return ; (iii) take any position on any Tax Return ; or (iv) take any action, omit to take any action, or enter into any other transaction that would have the effect of increasing the Tax liability or reducing any Tax asset of Buyer or the Company, in respect of any taxable period that begins after the Closing Date or, in respect of any taxable period that begins before and ends after the Closing Date (each such period, a "Straddle Period"), the portion of such Straddle Period beginning after the Closing Date . (b) All transfer, documentary, sales, use , stamp, registration , value added, and other such Taxes and fees (including any penalties and interest ) incu ⴟ ed in connection with this Agreement and the other Transaction Documents shall be borne and paid by Seller when due . Seller shall, at its own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Buyer shall cooperate with respect thereto as necessary) . (c) Buyer shall prepare, or cause to be prepared, all Tax Returns re q uired to be filed by the Company after the Closing Date with respect to any taxable period or portion thereof ending on or before the Closing Date and all Straddle Period Tax Returns . Section 6 . 02 Straddle Period . In the case of Taxes that are payable with respect to a Straddle Period, the portion of any such Taxes that are allocated to Pre - Closing Tax Periods (as defined in Section 6 . 04 ) for purposes of this Agreement shall be : (a) in the case of Taxes (i) based upon, or related to, income, receipts, profits, wages, capital, or net worth, (ii) imposed in connection with the sale, transfer, or assignment of property, or (iii) re q uired to be withheld, the amount of Taxes which would be payable if the taxable year ended with the Closing Date ; and (b) in the case of other Taxes, the amount of such Taxes for the entire period multiplied by a kaction, the numerator of which is the number of days in the period ending on the Closing Date and the denominator of which is the number of days in the entire period . Section 6 . 03 Reserved . Section 6 . 04 Tax Indemnification . Seller shall indemnify the Company, Buyer, and each Buyer Indemnitee (as defined in Section 7 . 01 ) and hold them harmless kom and against (a) any loss, damage, liability , deficiency, Action, judgment, interest, award, penalty, fine , cost, or expense of whatever kind (collectively , including reasonable attorneys'fees and the cost of enforcing any right to indemnification under this Agreement , "Losses" ) attributable to any breach of or inaccuracy in any representation or warranty made in Section 3 . 18 ; (b ) any Loss attributable to any breach or violation of, or FA ilure to Slly perform , any covenant , agreement , undertaking , or obligation in ARTICLE VI ; (c ) all Taxes of the Company or relating to the business of the Com p any for all Pre - Closin g Tax Periods (as defined below) ; (d ) all Taxes of any member of an affiliated , consolidated , combined , or unitary group of which the Company (or any predecessor of the Company ) is or was a member on or prior to the Closing Date by reason of a liability under Treasury Regulation Section 1 . 1502 - 6 or any comparable provisions of foreign , state, or local Law ; and (e ) any and all Taxes of any Person imposed on the Company arising under the principles of transferee or successor liability or by contract , relating to an event or transaction occurring before the Closing Date . In each of the above cases, together with any out - of - pocket fees and expenses (including attorneys'and accountants'fees) incu ⴟ ed in connection therewith , Seller shall 14
re i mburse Bu y er for an y Taxes o f t he Com p an y t ha t are t he res p ons i b i l ity o f Seller p ursuan t t o t h i s Sec ti on 6 . 04 w it h i n t en bus i ness da y s a ft er p a y men t o f such Taxes b y Bu y er or t he Com p an y . For p u rp oses o f t h i s A g reemen t, a "Pre - Clos i n g Tax Per i od" means an y t axable p er i od end i n g on or before t he Clos i n g Da t e and, w it h res p ec t t o an y t axable p er i od be gi nn i n g before and end i n g a ft er t he Clos i n g Da t e, t he p o rti on o f such t axable p er i od end i n g on and i nclud i n g t he Clos i n g Date . Sec ti on 6 . 05 Coo p era ti on and Exchan g e o f Informa ti on . Seller and Bu y er shall p rov i de each o t her w it h such coo p era ti on and i nforma ti on as e it her o f t hem reasonabl y ma y reques t o f t he o t her i n fili n g an y Tax Re tu rn p ursuan t t o t h i s ARTICLE VI or i n connec ti on w it h an y aud it or o t her p roceed i n g i n res p ec t o f Taxes o f t he Com p an y, i nclud i n g p rov i d i n g co pi es o f relevan t Tax Re tu rns and accom p an yi n g documen t s . Each o f Seller and Bu y er shall re t a i n all Tax Re tu rns and o t her documen t s i n it s p ossess i on rela ti n g t o Tax ma tt ers o f t he Com p an y for an y Pre - Clos i n g Tax Per i od (collec ti vel y, "Tax Records") un ti l t he ex pi ra ti on o f t he s t a tut e o f li m it a ti ons o f t he t axable p er i ods t o wh i ch such Tax Records rela t e . Sec ti on 6 . 06 Tax Trea t men t . Seller and Bu y er a g ree t ha t t he t ransac ti on con t em p la t ed hereb y w i ll be t rea t ed for U . S . federal i ncome Tax p u rp oses and a pp l i cable s t a t e i ncome Tax p u rp oses as a t axable sale b y Seller and a p urchase b y Bu y er o f t he asse t s o f t he Com p an y . Sec ti on 6 . 07 Tax Alloca ti on . Seller and Bu y er a g ree t ha t t he Purchase Pr i ce shall be alloca t ed amon g t he asse t s o f t he Com p an y for U . S . federal and a pp l i cable s t a t e and local i ncome t ax p u rp oses as a g reed b y t he i r res p ec ti ve accoun t an t s, ne g o ti a ti n g i n g ood fait h on t he i r behalf . Sec ti on 6 . 08 Surv i va l . No t w it hs t and i n g an yt h i n g i n t h i s A g reemen t t o t he con t ra ry, t he p rov i s i ons o f Sec ti on 3 . 18 and t h i s ARTICLE VI shall surv i ve for s i x ( 6 ) mon t hs fiom Clos i n g . ARTICLE VII INDEMNIFICATION Sec ti on 7 . 01 Indemn ifi ca ti on b y Seller . Sub j ec t t o t he o t her t erms and cond iti ons o f t h i s ARTICLE VII, Seller shall i ndemn ify and defend Bu y er (t he "Bu y er Indemn it ee") a g a i ns t, and shall hold it harmless fiom and a g a i ns t, and shall p a y and re i mburse it for, an y and all Losses i ncurred or sus t a i ned b y, or i m p osed u p on, t he Bu y er Indemn it ee based u p on, ar i s i n g ou t o f, w it h respec t t o, or by reason o f : (a) an y ma t er i al i naccurac y i n or breach o f an y o f t he re p resen t a ti ons or warran ti es o f Seller con t a i ned i n t h i s A g reemen t or t he o t her Transac ti on Documen t s; or (b) an y ma t er i al breach or non - fu l fi llmen t o f an y covenan t, a g reemen t, or obl ig a ti on t o be p erformed b y Seller p ursuan t t o t h i s A g reemen t or t he o t her Transac ti on Documen t s. Sec ti on 7 . 02 Indemn ifi ca ti on Procedures . Whenever an y cla i m shall ar i se for i ndemn ifi ca ti on hereunder, t he p a rty en titl ed t o i ndemn ifi ca ti on (t he "Indemn ifi ed Par ty") shall p rom pt ly p rowde wr itt en no t ice o f such cla i m t o t he o t her p a rty (t he “ Indemn ifyi n g Par ty ” ) . In connec ti on w it h an y cla i m gi v i n g r i se t o i ndemn ity hereunder resu lti n g kom or ar i s i n g ou t o f an y 15
Action by a Person who is not a party to this Agreement, the Indemnifying Party, at its sole cost and expense and upon written notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory to the Indemnified Party . The Indemnified Party shall be entitled to participate in the defense of any such Action, with its counsel and at its own cost and expense . If the Indemnifying Party does not assume the defense of any such Action, the Indemnified Party may, but shall not be obligated to, defend against such Action in such manner as it may deem appropriate, including settling such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying Party of its indemnification obligations herein provided with respect to any damages resulting therekom . The Indemnifying Party shall not settle any Action without the Indemnified Party's prior written consent (which consent shall not be unreasonably withheld or delayed) . Section 7 . 03 Survival . Subject to the limitations and other provisions of this Agreement, all representations and warranties contained herein and all related rights to indemnification shall survive the Closing for six ( 6 ) months . Section 7 . 04 Tax Claims . Notwithstanding any other provision of this Agreement, the control of any claim, assertion, event, or proceeding in respect of Taxes of the Company (including, but not limited to, any such claim in respect of a breach of the representations and warranties in Section 3 . 18 hereof or any breach or violation of or failure to klly perform any covenant, agreement, undertaking, or obligation in ARTICLE VI) shall be governed exclusively b y ARTICLE VI hereof? Section 7 . 05 Cumulative Remedies . The rights and remedies provided for in this ARTICLE VII (and in ARTICLE VI) are cumulative and are in addition to and not in substitution for any other rights and remedies available at Law or in e q uity or otherwise . ARTICLE VIII MISCELLANEOUS Section 8 . 01 Expenses . All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and ex p enses . Section 8 . 02 Notices . All notices, claims, demands, and other communications hereunder shall be in writing and shall be deemed to have been given : (a) when delivered by hand (with written confirmation of receipt) ; (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt re q uested) ; (c) on the date sent by facsimile or email of a . PDF document (with confirmation of transmission) if sent durmg normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient ; or (d) on the third day after the date mailed, by certified or registered mail, return receipt re q uested, postage prepaid, if sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 8 . 02 ) : If to Seller: Mine Crypto Pro Inc. 2900 Weslayan Street, Suite 415 16
w it h a co py (wh i ch shall no t cons tit u t e no ti ce) t o: Ift o Buyer: w it h a co py (wh i ch shall no t cons titut e no ti ce) t o: Hous t on, TX 77027 Ema i l: du@rn i nec rypt o p ro.com A tt en ti on: T i an yi Du Harr i s Beach PLLC 99 Garnsey Road P itt s fo rd, NY 14534 Ema i l : FLGo ⳯ an@harr i sbeach.com A tt en ti on: FL Gorman, Esq. Me t en Serv i ce USA Co rp. 300 S p ec t rum Cen t er Dr i ve, Su it e 400 Irv i ne, CA 92618 Ema i l: j ohnny@rne t en.com A tt en ti on: Jun He Fros t Brown Todd LLP 111 Monumen t C ir., Su it e 4500 Ind i anapol i s , IN 46204 Ema i l: ᄈ uan g@btl aw.com A tt en ti on: N i ck Huan g , Esq. Sec ti on 8 . 03 In t er p re t a ti on ; Head i n g s . Th i s A g reemen t shall be cons t rued w it hou t re g ard t o an y p resum pti on or rule requ i r i n g cons t ruc ti on or i n t e rp re t a ti on a g a i ns t t he p a rty dra fti n g an i ns t rumen t or caus i n g an y i ns t rumen t t o be dra ft ed . The head i n g s i n t h i s A g reemen t are fo r re fe rence onl y and shall no t a ff ec t t he i n t e rp re t a ti on o f t h i s A g reemen t . Sec ti on 8 . 04 Severab ility . If an y t erm or p rov i s i on o f t h i s A g reemen t i s i nval i d , i lle g al, or unen fo rceable i n an y nj ur i sd i c ti on, such i nval i d ity, i lle g a lity, or unen fo rceab i l ity shall no t a ff ec t an y o t her t erm or p rov i s i on o f t h i s A g reemen t . Sec ti on 8 . 05 En ti re A g reemen t . Th i s A g reemen t and t he o t her Transac ti on Documen t s cons titut e t he sole and en ti re a g reemen t o f t he p a rti es t o t h i s A g reemen t w it h res p ec t t o t he sub j ec t ma tt er con t a i ned here i n and t here i n, and su p ersede all p r i or and con t em p oraneous unders t and i n g s and a g reemen t s, bo t h wr itt en and oral, w it h res p ec t t o such sub j ec t ma tt e r . In t he even t o f an y i ncons i s t enc y be t ween t he s t a t emen t s i n t he bod y o f t h i s A g reemen t and t hose i n t he o t her Transac ti on Documen t s, an y exh i b it s, and t he D i sclosure Schedules (o t her t han an exce pti on ex p ressl y se t fort h as such i n t he D i sclosure Schedules), t he s t a t emen t s i n t he bod y o f t h i s Agreemen t w i ll con t ro l . Sec ti on 8 . 06 Successors and Ass ig ns . Th i s A g reemen t shall be b i nd i n g u p on and shall i nure t o t he bene fit o f t he p a rti es here t o and t he i r res p ec ti ve successors and p erm itt ed ass ig ns . Ne it her p a rty ma y ass ig n it s r ig h t s or ob lig a ti ons hereunder w it hou t t he p r i or wr itt en consen t o f t he o t her p a rty, wh i ch consen t shall no t be unreasonabl y w it hheld or dela y ed . No ass ig nmen t shall re li eve t he ass ig n i n g p a rty o f an y o f it s ob lig a ti ons hereunde r . Sec ti on 8 . 07 Amendmen t and Modifica ti on ; Wa i ver . Th i s A g reemen t ma y onl y be amended, mod ifi ed, or su pp lemen t ed b y an a g reemen t i n wr iti n g s ig ned b y each p a rty here t o . No 17
DocuSign Envelope ID: E14B8E18 - 8C05 - 41DE - B20B - 9E9885AA8D59 waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving . No failure to exercise, or delay in exercising, any right or remedy arising from this Agreement shall operate or be construed as a waiver thereof . No single or partial exercise of any right or remedy hereunder shall preclude any other or further exercise thereof or the exercise of any other right or remedy . Section 8 . 08 Governing Law ; Submission to Jurisdiction . All matters arising out of or relating to this Agreement shall be governed by and construed in accordance with the internal laws of the State of Arkansas without giving effect to any choice or conflict of law provision or rule (whether of the State of Texas or any other jurisdiction) . Any legal suit, action, proceeding, or dispute arising out of or related to this Agreement, the other Transaction Documents, or the transactions contemplated hereby or thereby may be instituted in the federal courts of the United States of America or the courts of the State of Arkansas in each case located in the city of Little Rock, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, proceeding, or dispute . Section 8 . 09 Counterparts . This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement . A signed copy of this Agreement delivered by email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement . [TO FURTHER TEXT OF THIS PAGE, - SIGNATURE PAGE FOLLOWS] 18
IN WITNESS WHEREOF, the p arties hereto have caused this A g reement to be executed as of the date first written above b y their res p ective officers thereunto dul y authorized. SELLER MINE CRYPTO PRO INC., a Texas corporation B y : Ҽ Name: T i an yi Du Title: Author i zed S ig natory BUYER METEN SERVICE USA CORP., a Californ i a corporation B y : Name: Title: й Chief O p eratin g Officer PARENT B TC DIGITAL LTD., a Ca y man Islands com p an y B y : Title: Name: Alan Pen g ᴠ Executiv e f Chi e Officer 19
Schedule 1.02(a) Bank Account Number and Wallet Address Bank Account Number: എ ᤖ ⚹ USDoIIar(USO} lncom i ngi W i re Trans fe r l l ns 㹼 u cti ons 䞍 nk Roudng Numbc:r: (Dome ᔯ cw1” i 1222 - 03953 T ᒨ g ≃ p h ic ᴢ me - ; CATI - I BK.UI. SWIFTCode:(I ફ mationa1wirei ત࠷ i ૭ i ᖂ n k ᗳ me RecelYer B.anl< Add ኟᔧ ɿ CATHUSGL C ᰕ՟ ayBank ࣋ 7 ᗳ rthB ᗳ dway LosA ਙ s. CA Ⲵ ne 䝽 l11 ry 1 11 10 . ∄ c oun tN 1.1 m 1 ྷ r : (Fiequi 伎 d)· 01751 ҶҶ 8 ᗳ m 䍞 (Required)" ྲ C ਙԸ ˉ P Ǎ olnc coming ೦ ྷ㣽४䰧Ⲵ∄⦻ cooms the ঠӄᗳⲴ y ll'ley are r ࠭⊱ if ᗳᗳ d ↓ਘ㲩 0 Unt numb .. - is ࡈ id ਟ d t ᚔ a< : CO< ᰗ i 5 䇒 cti ᗳ ˊ Ot,h ਙ isg . p ࠭㲩 g m ਞྲ d" ࠷ਙ or”“ 5 m ਞ ྷ щ Շ o d ` ᖤ ৸ i ೦ may also bed y ҏ o Ǎ ... ˼ ࠭ m ᢃ ber ਨ ecte ᗳ ock“'lfpartt toa ਛ re ਙ ldentili Ⲵ↓֤ᗳঠ e OFAC ೦ a ᗳ 1 ਓ n ш I en li! i ≀ ਓ ਙᡧ a ro n o 1 ࣐ rg ਙ emm ਙഋ 1 ѝ 1 i ൏ ᗳ r ii 1 hi, ocnder ᱃ ˊ ྲ i,idon 䛡ᗳਙ㹰 ᢛ d ਜਙ 1 ᠺ ɿ ᕅ䘈 0 Fl ࠦ v...El Monie. CA.81131 I ਓࣘਙһ 1k.,;crn | aoo - 9Z ᢓ 29 E ԧҐ⊱ O ᘂ c ྷ 2 ྲ 9 ˜ 㞄 Walle t Address: TAweYu3zxLz j FPeBdzrzY J AKE1TRWsusc j 20
See attached. Schedule 1.02(c) Equipment 21
Category Serial Name Quantity Remarks (Model) Res p onsible Party MCP JIANSU RYAN ELECTRIC CO., LTD Pad - Mounted TRANSFORMER ZGSL - H - 2600KVA/34.5 3 Transformer 1 Power System MCP It is from the same manufacturer as the transformer and uses cULus Circuit breaker 1 Low Voltage Cabinet 2 MCP Can meet the corres p onding length of 3 transformers to 8 containers alot Low Voltage Cable 3 MCP Manufactured By: QINGDAO CIMC REEFER TRAILER CO.,LTD IMNBOX 2 40 - foot containers 4 40 - foot containers MCP Uns p ecified manufacturer. Use Schneider Electric and XS accessories. 4 40 - foot - Distribution Box 5 MCP 54/container 108 40 - foot POU 6
Cate g o r y Se r ial Name Quantity Remarks (Model) Responsible Party MCP 6/container 12 40 - foot light 7 MCP 16/container 32 40 - foot 24 - port switches 8 MCP 16/container 32 40 - foot exhaust fans 9 MCP 324/container 648 40 - foot Ethernet cable 10 MCP 6/container 12 40 - foot Water curtain (large) 11 MCP 36/container 72 40 - foot Dust Net 12 2
Cate g o r y Se r ial Name Quantity Remarks (Model) Responsible Party BTCT 1 /container In addition to providing 6 site cameras, like Antbox the 40 - foot containers should also be equipped with cameras. 2 40 - foot Surveillance Camera 13 BTCT The 40feet containers is required to contain hot and cold insulation panels. N/A 40 - foot Hot and cold insulation board 14 MCP ANTBOX N5 V2 6 20 - foot containers 15 20 - foot Antbox containers MCP Included with the container 6 20 - foot Distribution Box 16 MCP 24/container 144 20 - foot POU 17 MCP 2/container 12 20 - foot light 18 3
Cate g o r y Se r ial Name Quantity Remarks (Model) Responsible Party MCP 12/container 72 20 - foot 24 - port switches 19 MCP 8/container 48 20 - foot exhaust fans 20 MCP 207/container 1242 20 - foot Ethernet cable 21 MCP 16/container 96 20 - foot Dust Net 22 MCP 4/container 24 20 - foot Water curtain (small) 23 MCP 1 /container Included with the Antbox 6 20 - foot Surveillance Camera 24 4
Cate g o r y Se r ial Name Quantity Remarks (Model) Responsible Party MCP (As - is) It depends on whether there are g aps in the insulation board made inside the Antbox. N/A 20 - foot Hot and cold insulation board 25 The core switch must be a BTCT pro g rammable rather than a dummy switch. And a backup core switch is 2 Core switch 26 required. BTCT 1 Core router 27 UPS(Uninterruptible Power Supplies) BTCT for Router is required to ensure network stability 1 UPS 28 Network facilities MCP 6 site cameras 6 Site surveillance cameras 29 Surveillance MCP 1 Host+ Surveillance 30 Display Screen 5
Ca t e g o r y Ser i al Name Quan tity Remarks (Model) Res p ons i ble Pa rty BTCT Ba ff les are requ i red be t ween con t a i ners t o p reven t t he f low o f ho t a i r back i n t o t he cold a i r area. W i nd barr i er be t ween con t a i ners 31 cool i n g s y s t em BTCT Ra i n/snow shel t er 32 MCP 1 Wa t er t ank 33 MCP (As - i s ) One on each s i de 2 Wa t er Pum p 34 MCP Mee t t he len gt h o f t he wa t er ma i n pip el i ne t o all wa t er cu rt a i ns alo t Wa t er pip e 35 MCP (Solar l ig h t s on p oles ) A t p resen t, t here i s no l ig h ti n g equ ip men t s it ua t ed ou t s i de t he con t a i ner. I t i s i m p era ti ve t o i ns t all l ig h ti n g fix t ures on t he s it e p oles or o t her des ig na t ed loca ti ons. S it e l ig h ti n g 36 M i scellaneous 6
Cate g ory Serial Name Quantity Remarks (Model) Responsible Party MCP Provide a stora g e container 1 Stora g e container 37 BTCT In accordance with the re g ulations stipulated by the Occupational Safety and Health Administration (OSHA), it is mandatory to install either a dry powder fire extin g uisher or a carbon dioxide fire extin g uisher within each of the 8 containers. Plus 1 more needed in the office 9 Extin g uisher 38 MCP (As - is) The current office size is too small. The size needs to be similar to a normal container The dimensions of the office 39 MCP (110/220v) The office needs to have normal electricity for computers and monitorin g e q uipment. It is essential to provide two 220V and two 380V machine interface connections to facilitate the repair and testin g of machinery. Office - Power 40 BTCT Used for remote control, repair and testin g of minin g machines 1 Office - Switch 41 7
Cate g o r y Se r ial Name Quantity Remarks (Model) Responsible Party BTCT Used for remote control, repair and testing of mining machines 10 Office - Ethernet cable 42 BTCT Office - Air Condition 43 BTCT Office - light 44 MCP Fences and Gates 45 BTCT Loading and unloading machines ladder 46 8
Schedule 3.07 Undisclosed Liabilities None. 22
Schedule 3.08(a) Ma t er i al Con t rac t s Power Con t rac t s 1. A g reemen t fo r Elec t r i c Serv i ce b y and be t ween Quench Da t a LLC and En t er gy Arkansas, LLC dated February 13 & 14, 2024 2. Ex t ens i on o f Serv i ce A g reemen t w it h Cus t omers b y and be t ween Quench Da t a LLC and Enter gy Arkansas, LLC dated February 13 & 14, 2024 3. Lar g e Power H ig h Load Dens ity Serv i ce A g reemen t s fo r In t erru pti ble Serv i ce b y and be tw een Quench Da t a LLC and En t er gy Arkansas, LLC da t ed February 13 & 14, 2024 23
Schedule 3.09(a) Real Property Contracts/Leases 1. Land Lease by and between WS Ventures, Stephen Cheadle and Matthew Cheadle and Essential Construction South LLC made effective December 8, 2023. 2. Assignment o f Lease by and between Essential Construction South LLC Quench Data LLC made effective as o f February 24, 2024 3. First Amendment to Land Lease Agreement made effective as o f May 16, 2024. 4. Stipulation o f Lease made effective as o f May 16, 2024. 24
Schedule 3.10 IP, Domain Names None.
1. Entergy Arkansas, LLC Schedule 3.ll(a) Material Customers & Suppliers 26