Avalanche Treasury Corporation

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On July 12, 2026, the Compensation Committee of the Board of Directors of Avalanche Treasury Corporation (the “Company”) granted under the Company’s 2026 Omnibus Incentive Plan (the “Plan”) stock options to purchase 2,700,000 shares of the Company’s Class A common stock, par value $0.01 per share (“Class A Common Stock”), to Gerald Bartholomew Smith, the Company’s Chief Executive Officer, and stock options to purchase 1,100,000 shares of Class A Common Stock to Laine Mihalchick Moljo, the Company’s Chief Operating Officer (collectively, the “Option Awards”), at an exercise price per share of Class A Common Stock equal to $0.54. Upon accepting their respective Option Awards, Mr. Smith and Ms. Mihalchick Moljo each forfeited and waived all rights and entitlements to receive any performance-vesting restricted stock units under the terms of their respective employment offer letters. The Option Awards vest in equal installments on January 12, 2027, 2028, 2029, subject to continued employment with the Company or its subsidiaries through the applicable vesting date. If Mr. Smith’s or Ms. Mihalchick Moljo’s employment with the Company or its subsidiaries terminates for any reason other than a termination of employment for Cause or resignation by Mr. Smith or Ms. Mihalchick Moljo for Good Reason (as each such term is defined in their respective employment offer letters) during the period beginning 60 days prior to and ending one year following a Change in Control (as defined in the Plan), any unvested portion of the Option Awards will vest in full on the date of such termination of employment. The Option Awards will expire on the tenth anniversary of the grant date. The foregoing description of the Option Awards does not purport to be complete and is subject to, and qualified in its entirety by reference to the full text of the form of stock option agreement pursuant to which the Option Awards were granted, a copy of which will be filed as an exhibit to the Company’s quarterly report on Form 10-Q for the period ending September 30, 2026.