Third-Party Verification Report

Null Bash
304 S Jones Blvd, Suite 2104
Las Vegas, NV, 89107

Objective
Null Bash conducted the third-party verification for Ternio with the following
focuses: verification of blockchain architecture, transaction speed capabilities
and security protocols.

Executive Summary:

• Lexicon framework is capable of exceeding 1 million transactions per

second in a fully decentralized environment
• The Lexicon architecture being used is mature enough to provide
confidence that it will readily support the heavy transaction speeds
required
• The integrity of the data passing through the system will be
guaranteed due to the decentralized and distributed nature of
blockchain technology

Background:

This assessment was conducted by Nikolas Behar - technology management

consultant. Nikolas has conducted assessments for Fortune 500 companies
focusing on blockchain infrastructure and security protocols. His experience
includes:

Security Consultant
January 2018 - Present

Adjunct Professor of Cybersecurity

National University
November 2017 - Present

Doc ID: 401d95c4eabf8630022438d1edd00a295a65dc59

 Cybersecurity and Privacy Consultant
PwC
September 2015 - January 2018

Royal Holloway, University of London

Master of Science (MSc), Information Security 2017

Over the course of April and May 2018 - Mr. Behar visited Ternio’s corporate
office in Atlanta, GA to visit and to meet with the development team in
person. Though undisclosed - the development team is comprised of senior
level engineers and admins who have extensive experience in cryptography,
development, and systems scaling with backgrounds ranging from
LexisNexis, MIT, NSA, Hewlett Packard, US Military, Oracle, Cisco and Bank
of America.

Security Procedures:

We conducted a careful review the work of the team’s security procedures

and blockchain scalability.

With regards to information security, Ternio is aligning its security posture

with industry frameworks and guidance such as the Center for Internet
Security’s “Top 20” and ISO 27001. This will help ensure that Ternio systems
are resilient and protected from cyber-attacks.

The integrity of the data passing through the system is guaranteed due to
the decentralized and distributed nature of the Lexicon blockchain
technology with all transactions being securely cryptographically encrypted.
This in turn increases the amount of confidentiality provided for all
transactional data for sensitive and proprietary information as it passes
through and is stored on the chain.

Technology and Architecture:

After reviewing Ternio’s procedures and infrastructure we are confident that

their Lexicon framework is capable of exceeding 1 million transactions per
second in a fully decentralized environment.

We certify that their schematics and architecture are unique and resolve the
issues that are presently limiting most decentralized blockchain architectures
from scaling in a way that could be useful in any number of use cases from
financial transactions to digital advertising to messaging applications.

Doc ID: 401d95c4eabf8630022438d1edd00a295a65dc59

Ternio’s architecture is configured in a way that is designed to scale in a
technically sound way well beyond that of its existing test limits. They are
currently fine tuning various components of the infrastructure to ensure
optimal performance.

The Lexicon architecture being used is mature enough to provide confidence

that it will readily support the heavy transaction speeds in a production
environment while holding to a state of complete on-chain decentralization.

Ternio also uses Stellar blockchain as a payment protocol in conjunction with

the Lexicon blockchain to create the Ternio blockchain framework. By
combining a production grade proprietary high transaction blockchain with a
well-established payment based blockchain will allow the information
systems to scale with the rapid adoption that will ensue after release of the
final product.

Due to the sensitive nature of Ternio’s proprietary technology, certain details

of the infrastructure and schematics cannot be publicly disclosed at this time
due to pending IP.

Steps of Test:

1. Show the ad-based sample transactional data that is being submitted

to the chain (bid notice)
2. Initiate Lexicon blockchain
3. Provide Jmeter file
4. JMeter is added to flood.io
5. For visual representation, flood.io displays the transactions running to
the blockchain error free
6. To confirm the transactions hit the ledger, sampling is done in the
form of a query to the ledger for the spot data.

Due to the amount of data passing through the Lexicon blockchain, data is
sampled rather than reviewing millions of transactions independently.

Doc ID: 401d95c4eabf8630022438d1edd00a295a65dc59

For and on behalf of Null Bash:

Technology Management Consultant, Nikolas Behar

Verification date: May 14th, 2018

Doc ID: 401d95c4eabf8630022438d1edd00a295a65dc59

 Audit Trail

TITLE Sign

FILE NAME Third party verification - Ternio.docx

DOCUMENT ID 401d95c4eabf8630022438d1edd00a295a65dc59

STATUS Completed

05/14/2018 Sent for signature to Nikolas Behar (root@nullbash.com) from

23:52:13 UTC-5 daniel@ternio.io
IP: 75.24.195.49

05/14/2018 Viewed by Nikolas Behar (root@nullbash.com)

23:52:36 UTC-5 IP: 76.172.82.0

05/14/2018 Signed by Nikolas Behar (root@nullbash.com)

23:57:04 UTC-5 IP: 76.172.82.0

05/14/2018 The document has been completed.

23:57:04 UTC-5