UNDERSTANDING WEST FELICIANA AND THE HUT AI FACILITY STORY

West Feliciana Parish Government set up an Industrial Park during the administration of Pres. Kevin
Couhig. The Council subsequently adopted Ordinance No. 2018 November 12-01 declaring 86 acres in the
Industrial Park surplus and authorizing the sale thereof, and Ordinance No. 2022 December 12-01 declaring
an additional 21 acres surplus and authorizing the sale thereof.

In December of 2022 RRL Real Estate Appraisal, LLC performed an appraisal of the Industrial Park
property and concluded that the property was worth between $4,000 and $10,000 per acre.

In October of 2023 the Parish sold the combined 107 acres to M/V Industrial, LLC for the sum of $500,000,
which equated to $4,672.90 per acre, which was within the range set forth in the appraisal.
Ultimately, the 107 acres was acquired by HUT 8 and forms a part of the tract on which the AI Facility is
being constructed.

In October of 2025 the Council authorized the creation of the Industrial Development Board of West
Feliciana Parish (IDB), and appointed Sheriff Brian Spillman, Supt. Hollis Milton, and Clay Pinson as the
Board thereof.

On October 29, 2025 the IDB entered into Payment in Lieu of Taxes (PILOT) Agreements with HUT 8 for
the land on which the AI facility is being built and the computers that will be housed in the building. The
agreement as to the land/building was revised in June of 2026. A PILOT is an agreement in which the
industrial property owner donates the property (land/building and computers) to the IDB, thus making that
property publicly owned and not technically subject to property taxes, then leases the property from the
IDB in exchange for payments in lieu of taxes. The first PILOT payment is due on July 1, 2027.

In March of 2026 HUT 8 entered into a Cooperative Endeavor Agreement ("CEA") with the Water District
operated by the Parish to construct $16M+ worth of water system infrastructure, which includes a new water
well, with an agreement to donate that water infrastructure to the Water District. The Water District also agreed
to sell water, at commercial rates, to the HUT 8 facility. This will ensure that the HUT 8 facility has adequate
water pressure for daily use and fire protection and results in higher water capacity for the remainder of the
Water District.

In June of 2026 the IDB and HUT 8 entered into a CEA in which HUT 8 agreed to prepay $10M on July 1,
2026 toward the first PILOT payment that is not due until July 1, 2027. That money will be split between
the School Board ($5.3M) the Parish ($3.9M) and the Sheriff ($800K). HUT will get credit for that $10M
once the PILOT payments start on July 1, 2027, with no interest or cost to any of the public entities in West
Feliciana Parish.

The PILOT is anticipated to generate tens of millions of dollars beginning in July of 2027 when the facility
begins operations and in the years following. The exact revenue that will be distributed by the IDB to the
Parish, the School Board, the Sheriff, and the other smaller taxing bodies will depend on the annual value
of the land, building, and moveable property (including the computers) as calculated by the Assessor.