Company: CLSKW
Filing Date: 2025-09-08
Form Type: 8-K
Source: 0000950170-25-113381
Chunk: 3

Company: CLEANSPARK, INC.
Filing Date: 2025-09-08
Form: 8-K
Item: Item 5.02
Chunk 3
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 (x) a lump sum bonus equal to such Executive’s target annual bonus, (y) monthly COBRA reimbursement for the Executive and his dependents until the earliest of (A) the twelve-month anniversary of the date of the Executive’s termination, (B) the date he is no longer eligible to receive COBRA continuation coverage, and (C) the date on which the Executive becomes eligible to receive coverage from another employer, and (z) the vesting of certain unvested restricted stock units as set forth in greater detail in the Employment Agreements.

The Employment Agreements also provide that, if an Executive is terminated without “cause” or resigns for “good reason” in the period commencing ninety days before the occurrence of a Company Transaction (as defined in the Company’s 2017 Incentive Plan) and ending twelve months after the occurrence of a Company Transaction, any equity awards that don’t otherwise vest in connection with such Company Transaction will vest upon the later of the occurrence of the Company Transaction and the return of an effective release of claims.

The foregoing description of the Employment Agreements does not purport to be complete, and is qualified in its entirety by reference to the complete text of the Employment Agreements, copies of which are filed herewith as Exhibits 10.1 to 10.5 to this Current Report on Form 8-K and is incorporated herein by reference.

Performance and Retention RSU Grants

On September 4, 2025, the Board also approved the following grants of RSUs for each Executive, with 50% of the grant comprised of RSUs designed to compensate such Executive for his performance in fiscal year 2025 (the “ Performance RSUs”), and the other 50% of the grant comprised of RSUs designed to promote the retention of such Executive through the CEO transition period (the “ Retention RSUs”) and beyond. In evaluating the performance of the Executives, the Board considered the key foundational principals underlying the compensation philosophy including operational and financial efficiency and ensuring responsible growth towards profitability while maintaining an industry-leading balance sheet. The Company grew significantly in all monthly reported metrics in fiscal year 2025, managed costs and achieved growth that was higher than originally budgeted, closed the acquisition of GRIID Infrastructure, Inc. in October 2024, completed an offering of $650 million aggregate principal amount of 0% coupon convertible notes, upsized the Company’s line of credit with Coinbase, and achieved 50 EH/s of self-operating hash