Common use of AUTHORITY OF THE SPONSOR Clause in Contracts

AUTHORITY OF THE SPONSOR. The Sponsor shall have the exclusive authority, and shall direct the actions of the Administrative Trustee, in the management of the Trust. The Sponsor shall have the exclusive authority to direct the Administrative Trustee to perform the Sponsor's obligations and exercise its rights under this Agreement. Without limiting the foregoing, the Sponsor shall have the authority to (a) execute and deliver this Agreement; (b) without prejudice to any power or authority granted to the Administrative Trustee in accordance with the terms of this Agreement, 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 each of the Trust and the Administrative Trustee is hereby authorized and shall have the power and authority to enter into such agreements and perform its obligations thereunder; (c) determine what peer-to-peer network constitutes the "Bitcoin network" and which digital asset constitutes "bitcoin" for the Trust's purposes, and what action the Trust shall take in response to such fork; in making such determination, the Sponsor may consider any factors it deems relevant; provided that the Sponsor shall not make a determination that would conflict with Section 4.10 of this Agreement; (d) determine, in the Sponsor's sole discretion, in the event of an airdrop to holders of bitcoin or any event similar to a fork or airdrop occurring with respect to bitcoin or the Bitcoin network, what action the Trust shall take; and (e) determine, in the Sponsor's sole discretion, based on whatever factors the Sponsor deems relevant, what action to take in connection with the Trust's entitlement to or ownership of Incidental Rights or any IR Virtual Currency, including (i) selling Incidental Rights and/or IR Virtual Currency and distributing the cash proceeds to the Registered Owners, (ii) distributing Incidental Rights and/or IR Virtual Currency in-kind to the Registered Owners or to an agent acting on behalf of the Registered Owners for sale by such agent if an in-kind distribution would otherwise be infeasible, (iii) using Incidental Rights and/or IR Virtual Currency to pay the Sponsor Fee's and/or additional Trust expenses not assumed by the Sponsor, or (iv) electing not to acquire, claim, or obtain, and permanently and irrevocably abandoning, Incidental Rights or IR Virtual Currency for no consideration.

AUTHORITY OF THE SPONSOR. The Sponsor shall have the exclusive authority, and shall direct the actions of the Administrative Trustee, in the management of the Trust. The Sponsor shall have the exclusive authority to direct the Administrative Trustee to perform the Sponsor's obligations and exercise its rights under this Agreement. Without limiting the foregoing, the Sponsor shall have the authority to (a) execute and deliver this Agreement; (b) without prejudice to any power or authority granted to the Administrative Trustee in accordance with the terms of this Agreement, 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 each of the Trust and the Administrative Trustee is hereby authorized and shall have the power and authority to enter into such agreements and perform its obligations thereunder; (c) determine what peer-to-peer network constitutes the "Bitcoin Ethereum network" and which digital asset constitutes "bitcoinether" for the Trust's purposes, and what action the Trust shall take in response to such fork; in making such determination, the Sponsor may consider any factors it deems relevant; provided that the Sponsor shall not make a determination that would conflict with Section 4.10 of this Agreement; (d) determine, in the Sponsor's sole discretion, in the event of an airdrop to holders of bitcoin ether or any event similar to a fork or airdrop occurring with respect to bitcoin ether or the Bitcoin Ethereum network, what action the Trust shall take; and (e) determine, in the Sponsor's sole discretion, based on whatever factors the Sponsor deems relevant, what action to take in connection with the Trust's entitlement to or ownership of Incidental Rights or any IR Virtual Currency. However, including (i) selling Incidental Rights and/or IR Virtual Currency and distributing for the cash proceeds to avoidance of doubt, the Registered Owners, (ii) distributing Incidental Rights and/or IR Virtual Currency in-kind to the Registered Owners or to an agent acting on behalf of the Registered Owners for sale by such agent if an in-kind distribution would otherwise be infeasible, (iii) using Incidental Rights and/or IR Virtual Currency to pay the Sponsor Fee's and/or additional Trust expenses not assumed by the Sponsor, or (iv) electing not to acquire, claim, or obtain, and permanently and irrevocably abandoning, abandons any Incidental Rights and IR Virtual currency to which the Trust may become entitled in the future. The Trust has no right to receive any Incidental Right or IR Virtual Currency for no considerationCurrency.