Document:

Securities
Purchase Agreement

 

This
Securities Purchase Agreement (this “Agreement”),
dated as of May 18, 2017, is entered into by and among MGT Capital Investments, Inc.,
a Delaware corporation (“Company”), MGT Mining One, Inc., a Delaware corporation (“Mining Sub”,
and together with Company, “Borrower”), and Iliad Research and Trading,
L.P., a Utah limited partnership, its successors and/or assigns (“Investor”).

 

A.
Company and Borrower are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the Securities Act of 1933, as amended (the “1933 Act”), and the rules and regulations promulgated thereunder
by the United States Securities and Exchange Commission (the “SEC”).

 

B.
Investor desires to purchase and Borrower desires to issue and sell, upon the terms and conditions set forth in this Agreement
(i) a Secured Convertible Promissory Note, in the form attached hereto as Exhibit A, in the original principal amount of
$1,355,000.00 (the “Note”), convertible into shares of common stock, $0.001 par value per share, of Company
(the “Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note,
and (ii) a Warrant to Purchase Shares of Common Stock, substantially in the form attached hereto as Exhibit B (the “Warrant”).

 

C.
Mining Sub is a wholly owned subsidiary of Company that (i) is a part of the Company’s ongoing business operations, (ii)
holds and/or controls various assets, and (iii) is a co-borrower under the Note. The proceeds from the Note will provide substantial
benefits to both Company and Mining Sub.

 

D.
This Agreement, the Note, the Warrant, the Escrow Agreement (as defined below), the Mining Sub Security Agreement (as defined
below), the Pledge Agreement (as defined below), and all other certificates, documents, agreements, resolutions and instruments
delivered to any party under or in connection with this Agreement, as the same may be amended from time to time, are collectively
referred to herein as the “Transaction Documents”.

 

E.
For purposes of this Agreement: “Conversion Shares” means all shares of Common Stock issuable upon conversion
of all or any portion of the Note; “Warrant Shares” means all shares of Common Stock issuable upon the exercise
of or pursuant to the Warrant; and “Securities” means, collectively, the Note, the Conversion Shares, the Warrant
and the Warrant Shares.

 

NOW,
THEREFORE, in consideration of the above recitals and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Company and Investor hereby agree as follows:

 

1.
Purchase and Sale of Securities.

 

1.1.
Purchase of Securities. Borrower shall issue and sell to Investor and Investor agrees to purchase from Borrower the Note
and the Warrant. In consideration thereof, Investor shall pay the Purchase Price (as defined below) to Borrower.

 

1.2.
Form of Payment. On the Closing Date (as defined below), Investor shall pay the Purchase Price, payable in United States
Dollars, by wire transfer of immediately available funds pursuant to an Escrow Agreement in substantially the form attached hereto
as Exhibit C against delivery of the Note and the Warrant.

 

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1.3.
Closing Date. Subject to the satisfaction (or written waiver) of the conditions set forth in Section 5 and Section 6 below,
the date of the issuance and sale of the Securities pursuant to this Agreement (the “Closing Date”) shall be
May 18, 2017, or such other mutually agreed upon date. The closing of the transactions contemplated by this Agreement (the “Closing”)
shall occur on the Closing Date by means of the exchange by email of signed .pdf documents, but shall be deemed for all purposes
to have occurred at the offices of Hansen Black Anderson Ashcraft PLLC in Lehi, Utah.

 

1.4.
Collateral for the Note. The Note shall be secured by (i) the collateral set forth in that certain Security Agreement attached
hereto as Exhibit D listing all of Mining Sub’s assets as security for Mining Sub’s obligations under the Transaction
Documents (the “Mining Sub Security Agreement”), and (ii) a Pledge Agreement substantially in the form attached
hereto as Exhibit E (the “Pledge Agreement”) whereby Company is pledging all of the common stock of
Mining Sub as security for Company’s obligations under the Transaction Documents.

 

1.5.
Original Issue Discount; Transaction Expense Amount. The Note carries an original issue discount of $225,000.00 (the “OID”).
In addition, Company agrees to pay $5,000.00 to Investor to cover Investor’s legal fees, accounting costs, due diligence,
monitoring and other transaction costs incurred in connection with the purchase and sale of the Securities (the “Transaction
Expense Amount”), all of which amount is included in the initial principal balance of the Note. The “Purchase
Price”, therefore, shall be $1,125,000.00, computed as follows: $1,355,000.00 initial principal balance, less the OID,
less the Transaction Expense Amount.

 

2.
Investor’s Representations and Warranties. Investor represents and warrants to Company that as of the Effective Date:
(i) this Agreement, its execution and its delivery has been duly and validly authorized; (ii) this Agreement constitutes a valid
and binding agreement of Investor enforceable in accordance with its terms; (iii) Investor is an “accredited investor”
as that term is defined in Rule 501(a) of Regulation D of the 1933 Act; and (iv) the Investor has had the opportunity to conduct
a due diligence investigation of the Company and the Mining Sub, their respective businesses, assets, financial condition, results
of operations and prospects, and the Investor has had the opportunity to ask questions of and receive answers from management
to the satisfaction of the Investor.

 

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3.
Borrower’s Representations and Warranties.

 

3.1.
Company Representations and Warranties. Company represents and warrants to Investor that as of the Effective Date: (i)
Company is a corporation duly organized, validly existing and in good standing under the laws of its state of incorporation and
has the requisite corporate power to own its properties and to carry on its business as now being conducted; (ii) Company is duly
qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business
conducted or property owned by it makes such qualification necessary; (iii) Company has registered its Common Stock under Section
12(g) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), and is obligated to file reports
pursuant to Section 13 or Section 15(d) of the 1934 Act; (iv) each of the Transaction Documents and the transactions contemplated
hereby and thereby, have been duly and validly authorized by Company and all necessary actions have been taken; (v) this Agreement,
the Note, the Warrant, the Escrow Agreement, the Pledge Agreement and the other applicable Transaction Documents have been duly
executed and delivered by Company and constitute the valid and binding obligations of Company enforceable in accordance with their
terms, subject as to enforceability only to general principles of equity and to bankruptcy, insolvency, moratorium, and other
similar laws affecting the enforcement of creditors’ rights generally; (vi) except as set forth under Schedule 3.1(vi),
the execution and delivery of the Transaction Documents by Company, the issuance of the Securities in accordance with the terms
hereof, and the consummation by Company of the other transactions contemplated by the Transaction Documents do not and will not
conflict with or result in a breach by Company of any of the terms or provisions of, or constitute a default under (a) Company’s
formation documents or bylaws, each as currently in effect, (b) any indenture, mortgage, deed of trust, or other material agreement
or instrument to which Company is a party or by which it or any of its properties or assets are bound, including, without limitation,
any listing agreement for the Common Stock, or (c) any existing applicable law, rule, or regulation or any applicable decree,
judgment, or order of any court, United States federal, state or foreign regulatory body, administrative agency, or other governmental
body having jurisdiction over Company or any of Company’s properties or assets; (vii) except as set forth under Schedule
3.1(vii), no further authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory organization,
or stock exchange or market or the stockholders or any lender of Company is required to be obtained by Company for the issuance
of the Securities to Investor or the entering into of the Transaction Documents; (viii) none of Company’s filings with the
SEC contained, at the time they were filed, any untrue statement of a material fact or omitted to state any material fact required
to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they were made,
not misleading; (ix) except as set forth under Schedule 3.1(ix), the Company has filed all reports, schedules, forms, statements
and other documents required to be filed by Company with the SEC under the 1934 Act on a timely basis or has received a valid
extension of such time of filing and has filed any such report, schedule, form, statement or other document prior to the expiration
of any such extension; (x) except as set forth under Schedule 3.1(x), there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board or body pending or, to the knowledge of Company, threatened against or affecting Company
before or by any governmental authority or non-governmental department, commission, board, bureau, agency or instrumentality or
any other person, wherein an unfavorable decision, ruling or finding would have a material adverse effect on Company or which
would adversely affect the validity or enforceability of, or the authority or ability of Company to perform its obligations under,
any of the Transaction Documents; (xi) Company has not consummated any financing transaction that has not been disclosed in a
periodic filing or current report with the SEC under the 1934 Act; (xii) Company is not, nor has it been at any time in the previous
twelve (12) months, a “Shell Company,” as such type of “issuer” is described in Rule 144(i)(1) under the
1933 Act; (xiii) with respect to any commissions, placement agent or finder’s fees or similar payments that will or would
become due and owing by Company to any person or entity as a result of this Agreement or the transactions contemplated hereby
(“Broker Fees”), any such Broker Fees will be made in full compliance with all applicable laws and regulations
and only to a person or entity that is a registered investment adviser or registered broker-dealer; (xiv) Investor shall have
no obligation with respect to any Broker Fees or with respect to any claims made by or on behalf of other persons for fees of
a type contemplated in this subsection that may be due in connection with the transactions contemplated hereby and Company shall
indemnify and hold harmless each of Investor, Investor’s employees, officers, directors, stockholders, members, managers,
agents, and partners, and their respective affiliates, from and against all reasonable claims, losses, damages, costs (including
the reasonable costs of preparation and attorneys’ fees) and expenses suffered in respect of any such claimed Broker Fees;
(xv) when issued, the Conversion Shares and the Warrant Shares will be duly authorized, validly issued, fully paid for and non-assessable,
free and clear of all liens, claims, charges and encumbrances; (xvi) neither Investor nor any of its officers, directors, stockholders,
members, managers, employees, agents or representatives has made any representations or warranties to Company or any of its officers,
directors, employees, agents or representatives except as expressly set forth in the Transaction Documents and, in making its
decision to enter into the transactions contemplated by the Transaction Documents, Company is not relying on any representation,
warranty, covenant or promise of Investor or its officers, directors, members, managers, employees, agents or representatives
other than as set forth in the Transaction Documents; (xvii) Company acknowledges that the State of Utah has a reasonable relationship
and sufficient contacts to the transactions contemplated by the Transaction Documents and any dispute that may arise related thereto
such that the laws and venue of the State of Utah, as set forth more specifically in Section 9.3 below, shall be applicable to
the Transaction Documents and the transactions contemplated therein; and (xviii) Company has performed due diligence and background
research on Investor and its affiliates including, without limitation, John M. Fife, and, to its satisfaction, has made inquiries
with respect to all matters Company may consider relevant to the undertakings and relationships contemplated by the Transaction
Documents including, among other things, the following: http://investing.businessweek.com/research/stocks/people/person.asp?personId=7505107&ticker=UAHC;
SEC Civil Case No. 07-C-0347 (N.D. Ill.); SEC Civil Action No. 07-CV-347 (N.D. Ill.); and FINRA Case #2011029203701. Company,
being aware of the matters described in subsection (xviii) above, acknowledges and agrees that such matters, or any similar matters,
have no bearing on the transactions contemplated by the Transaction Documents and covenants and agrees it will not use any such
information as a defense to performance of its obligations under the Transaction Documents.

 

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3.2.
Mining Sub Representations and Warranties. Mining Sub represents and warrants to Investor that: (i) Mining Sub is a corporation
duly organized, validly existing and in good standing under the laws of its state of organization and has the requisite company
power to own its properties and to carry on its business as now being conducted; (ii) Mining Sub is duly qualified as a foreign
entity to do business and is in good standing in each jurisdiction where the nature of the business conducted or property owned
by it makes such qualification necessary; (iii) each of the Transaction Documents and the transactions contemplated hereby and
thereby, have been duly and validly authorized by Mining Sub; (iv) this Agreement, the Note, the Mining Sub Security Agreement,
the Escrow Agreement, and the other applicable Transaction Documents have been duly executed and delivered by Mining Sub and constitute
the valid and binding obligations of Mining Sub enforceable in accordance with their terms, subject as to enforceability only
to general principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting the enforcement of
creditors’ rights generally; (v) except as set forth in Schedule 3.2(v), the execution and delivery of this Agreement, the
Note, the Mining Sub Security Agreement, the Escrow Agreement, and the other applicable Transaction Documents by Mining Sub does
not and will not conflict with or result in a breach by Mining Sub of any of the terms or provisions of, or constitute a default
under (a) Mining Sub’s formation documents or operating agreement, each as currently in effect, (b) any indenture, mortgage,
deed of trust, or other material agreement or instrument to which Mining Sub is a party or by which it or any of its properties
or assets are bound, or (c) to Mining Sub’s knowledge, any existing applicable law, rule, or regulation or any applicable
decree, judgment, or order of any court, United States federal or state regulatory body, administrative agency, or other governmental
body having jurisdiction over Mining Sub or any of Mining Sub’s properties or assets; (vi) Mining Sub has taken no action
which would give rise to any claim by any person or entity for a brokerage commission, placement agent or finder’s fees
or similar payments by Investor relating to the Note or the transactions contemplated hereby; (vii) Investor shall have no obligation
with respect to investment fees or with respect to any claims made by or on behalf of other persons for fees of a type contemplated
in this subsection that may be due in connection with the transactions contemplated hereby and Mining Sub shall indemnify and
hold harmless each of Investor, Investor’s employees, officers, directors, stockholders, managers, agents, and partners,
and their respective affiliates, from and against all reasonable claims, losses, damages, costs (including the reasonable costs
of preparation and attorneys’ fees) and expenses suffered in respect of any such claimed or existing fees; and (viii) Mining
Sub has performed due diligence and background research on Investor and its affiliates including, without limitation, John M.
Fife, and, to its satisfaction, has made inquiries with respect to all matters Mining Sub may consider relevant to the undertakings
and relationships contemplated by the Transaction Documents including, among other things, the following: http://investing.businessweek.com/research/stocks/people/person.asp?personId=7505107&ticker=UAHC;
SEC Civil Case No. 07-C-0347 (N.D. Ill.); SEC Civil Action No. 07-CV-347 (N.D. Ill.); and FINRA Case #2011029203701. Mining Sub,
being aware of the matters described in subsection (viii) above, acknowledges and agrees that such matters, or any similar matters,
have no bearing on the transactions contemplated by the Transaction Documents and covenants and agrees it will not use any such
information as a defense to performance of its obligations under the Transaction Documents.

 

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4.
Borrower Covenants. Until all of Borrower’s obligations under all of the Transaction Documents are paid and performed
in full, or within the timeframes otherwise specifically set forth below, Company and Mining Sub, as applicable, will at all times
comply with the following covenants: (i) so long as Investor beneficially owns any of the Securities and for at least twenty (20)
Trading Days (as defined in the Note) thereafter, Company will timely file on the applicable deadline, as may be extended in accordance
with applicable regulations, all reports required to be filed with the SEC pursuant to Sections 13 or 15(d) of the 1934 Act, and
will take all reasonable action under its control to ensure that adequate current public information with respect to Company,
as required in accordance with Rule 144 of the 1933 Act, is publicly available, and will not terminate its status as an issuer
required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would permit such termination;
(ii) the Common Stock shall be listed or quoted for trading on any of (a) NYSE, (b) NASDAQ, (c) OTCQX, (d) OTCQB, or (e) OTC Pink
Current Information; (iii) when issued, the Conversion Shares and the Warrant Shares will be duly authorized, validly issued,
fully paid for and non-assessable, free and clear of all liens, claims, charges and encumbrances; (iv) trading in Company’s
Common Stock will not be suspended, halted, chilled, frozen, reach zero bid or otherwise cease on Company’s principal trading
market; (v) Company will not make any Variable Security Issuance (as defined below) that results in Company receiving net proceeds
of less than $1,000,000.00 without Investor’s prior written consent, which consent may be granted or withheld in Investor’s
sole and absolute discretion; (vi) at Closing and on the first day of each calendar quarter for so long as the Note remains outstanding
or on any other date during which the Note is outstanding, as may be requested by Investor, Company shall cause its Chief Executive
Officer or President to provide to Investor a certificate in substantially the form attached hereto as Exhibit F (the “Officer’s
Certificate”) certifying in his personal capacity and in his capacity as Chief Executive Officer or President of Company
that Company has not made any Variable Security Issuances where Company received net proceeds of less than $1,000,000.00 without
first obtaining Investor’s written consent; (vii) if at any time the Common Stock trades below $0.005, Company shall, as
soon as practicable but in no event longer than sixty (60) days thereafter, reduce the par value of its Common Stock to $0.00001
or below; and (viii) Mining Sub will not transfer any of its assets outside of the ordinary course of business. For purposes hereof,
the term “Variable Security Issuance” means any issuance of any Company securities that (A) have or may have
conversion rights of any kind, contingent, conditional or otherwise, in which the number of shares that may be issued pursuant
to such conversion right varies with the market price of the Common Stock, or (B) are or may become convertible into Common Stock
(including without limitation convertible debt, warrants or convertible preferred stock), with a conversion price that varies
with the market price of the Common Stock, even if such security only becomes convertible following an event of default, the passage
of time, or another trigger event or condition. For avoidance of doubt, the issuance of shares of Common Stock under, pursuant
to, in exchange for or in connection with any contract or instrument, whether convertible or not, is deemed a Variable Security
Issuance for purposes hereof if the number of shares of Common Stock to be issued is based upon or related in any way to the market
price of the Common Stock, including, but not limited to, Common Stock issued in connection with a Section 3(a)(9) exchange, a
Section 3(a)(10) settlement, or any other similar settlement or exchange.

 

5.
Conditions to Borrower’s Obligation to Sell. The obligation of Borrower hereunder to issue and sell the Securities
to Investor at the Closing is subject to the satisfaction, on or before the Closing Date, of each of the following conditions:

 

5.1.
Investor shall have executed all applicable Transaction Documents and delivered the same to Borrower.

 

5.2.
Investor shall have delivered the Purchase Price into escrow in accordance with Section 1.2 above.

 

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6.
Conditions to Investor’s Obligation to Purchase. The obligation of Investor hereunder to purchase the Securities
at the Closing is subject to the satisfaction, on or before the Closing Date, of each of the following conditions, provided that
these conditions are for Investor’s sole benefit and may be waived by Investor at any time in its sole discretion:

 

6.1.
Company shall have executed this Agreement, the Note, the Warrant, the Escrow Agreement and the Pledge Agreement and delivered
the same to Investor.

 

6.2.
Mining Sub shall have executed this Agreement, the Note, the Escrow Agreement, and the Mining Sub Security Agreement and delivered
the same to Investor.

 

6.3.
Company’s Chief Executive Officer or President shall have executed the Officer’s Certificate and delivered the same
to Investor.

 

6.4.
Company shall have delivered to Investor a fully executed Irrevocable Letter of Instructions to Transfer Agent (the “TA
Letter”) substantially in the form attached hereto as Exhibit G acknowledged and agreed to in writing by Company’s
transfer agent (the “Transfer Agent”).

 

6.5.
Company shall have delivered to Investor a fully executed Secretary’s Certificate substantially in the form attached hereto
as Exhibit H evidencing Company’s approval of the Transaction Documents.

 

6.6.
Company shall have delivered to Investor a fully executed Share Issuance Resolution substantially in the form attached hereto
as Exhibit I to be delivered to the Transfer Agent.

 

6.7.
Mining Sub shall have delivered to Investor a fully executed Secretary’s Certificate substantially in the form attached
hereto as Exhibit J evidencing Mining Sub’s approval of the Transaction Documents.

 

6.8.
Company and Mining Sub shall have delivered to Investor fully executed copies of all other Transaction Documents required to be
executed by either such Borrower herein or therein.

 

7.
Reservation of Shares. On the date hereof, Company will reserve 6,500,000 shares of Common Stock from its authorized and
unissued Common Stock to provide for all issuances of Common Stock under the Note and the Warrant (the “Share Reserve”).
Company further agrees to add additional shares of Common Stock to the Share Reserve in increments of 500,000 shares as and when
requested by Investor if as of the date of any such request the number of shares being held in the Share Reserve is less than
(i) three (3) times the number of shares of Common Stock obtained by dividing the Outstanding Balance (as defined in the Note)
as of the date of the request by the Redemption Conversion Price (as defined in the Note), plus (ii) three (3) times the
number of Warrant Shares (as determined pursuant to the Warrant) deliverable upon full exercise of the Warrant. Company shall
further require the Transfer Agent to hold the shares of Common Stock reserved pursuant to the Share Reserve exclusively for the
benefit of Investor and to issue such shares to Investor promptly upon Investor’s delivery of a conversion notice under
the Note or a notice of exercise under the Warrant.

 

8.
Terms of Future Financings. So long as the Note is outstanding, Company or Mining Sub of any security with any term or
condition more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly
provided to Investor in the Transaction Documents, then Company shall notify Investor of such additional or more favorable term
and such term, at Investor’s option, shall become a part of the Transaction Documents for the benefit of Investor. Additionally,
if Company fails to notify Investor of any such additional or more favorable term, but Investor becomes aware that Company or
Mining Sub has granted such a term to any third party, Investor may notify Company of such additional or more favorable term and
such term shall become a part of the Transaction Documents retroactive to the date on which such term was granted to the applicable
third party. The types of terms contained in another security that may be more favorable to the holder of such security include,
but are not limited to, terms addressing conversion discounts, conversion lookback periods, interest rates, original issue discounts,
stock sale price, conversion price per share, warrant coverage, warrant exercise price, and anti-dilution/conversion and exercise
price resets.

 

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9.
Miscellaneous. The provisions set forth in this Section 9 shall apply to this Agreement, as well as all other Transaction
Documents as if these terms were fully set forth therein; provided, however, that in the event there is a conflict between any
provision set forth in this Section 9 and any provision in any other Transaction Document, the provision in such other Transaction
Document shall govern.

 

9.1.
Certain Capitalized Terms. To the extent any capitalized term used in any Transaction Document is defined in any other
Transaction Document (as noted therein), such capitalized term shall remain applicable in the Transaction Document in which it
is so used even if the other Transaction Document (wherein such term is defined) has been released, satisfied, or is otherwise
cancelled or terminated.

 

9.2.
Arbitration of Claims. The parties shall submit all Claims (as defined in Exhibit K) arising under this Agreement
or any other Transaction Document or any other agreement between the parties and their affiliates or any Claim relating to the
relationship of the parties to binding arbitration pursuant to the arbitration provisions set forth in Exhibit K attached
hereto (the “Arbitration Provisions”). The parties hereby acknowledge and agree that the Arbitration Provisions
are unconditionally binding on the parties hereto and are severable from all other provisions of this Agreement. By executing
this Agreement, Borrower represents, warrants and covenants that Borrower has reviewed the Arbitration Provisions carefully, consulted
with legal counsel about such provisions (or waived its right to do so), understands that the Arbitration Provisions are intended
to allow for the expeditious and efficient resolution of any dispute hereunder, agrees to the terms and limitations set forth
in the Arbitration Provisions, and that Borrower will not take a position contrary to the foregoing representations. Borrower
acknowledges and agrees that Investor may rely upon the foregoing representations and covenants of Borrower regarding the Arbitration
Provisions.

 

9.3.
Governing Law; Venue. This Agreement shall be construed and enforced in accordance with, and all questions concerning the
construction, validity, interpretation and performance of this Agreement shall be governed by, the internal laws of the State
of Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any
other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Utah. Each party
consents to and expressly agrees that exclusive venue for arbitration of any dispute arising out of or relating to any Transaction
Document or the relationship of the parties or their affiliates shall be in Salt Lake County, Utah. Without modifying the parties
obligations to resolve disputes hereunder pursuant to the Arbitration Provisions, for any litigation arising in connection with
any of the Transaction Documents (and notwithstanding the terms (specifically including any governing law and venue terms) of
any transfer agent services agreement or other agreement between the Transfer Agent and Company, such litigation specifically
includes, without limitation any action between or involving Company and the Transfer Agent under the TA Letter or otherwise related
to Investor in any way (specifically including, without limitation, any action where Company seeks to obtain an injunction, temporary
restraining order, or otherwise prohibit the Transfer Agent from issuing shares of Common Stock to Investor for any reason)),
each party hereto hereby (i) consents to and expressly submits to the exclusive personal jurisdiction of any state or federal
court sitting in Salt Lake County, Utah, (ii) expressly submits to the exclusive venue of any such court for the purposes hereof,
(iii) agrees to not bring any such action (specifically including, without limitation, any action where Company seeks to obtain
an injunction, temporary restraining order, or otherwise prohibit the Transfer Agent from issuing shares of Common Stock to Investor
for any reason) outside of any state or federal court sitting in Salt Lake County, Utah, and (iv) waives any claim of improper
venue and any claim or objection that such courts are an inconvenient forum or any other claim, defense or objection to the bringing
of any such proceeding in such jurisdiction or to any claim that such venue of the suit, action or proceeding is improper. Finally,
Company covenants and agrees to name Investor as a party in interest in, and provide written notice to Investor in accordance
with Section 9.13 below prior to bringing or filing, any action (including without limitation any filing or action against any
person or entity that is not a party to this Agreement, including without limitation the Transfer Agent) that is related in any
way to the Transaction Documents or any transaction contemplated herein or therein, including without limitation any action brought
by Company to enjoin or prevent the issuance of any shares of Common Stock to Investor by the Transfer Agent, and further agrees
to timely name Investor as a party to any such action. Borrower acknowledges that the governing law and venue provisions set forth
in this Section 9.3 are material terms to induce Investor to enter into the Transaction Documents and that but for Borrower’s
agreements set forth in this Section 9.3 Investor would not have entered into the Transaction Documents.

 

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9.4.
Specific Performance. Borrower acknowledges and agrees that irreparable damage may occur to Investor in the event that
Borrower fails to perform any material provision of this Agreement or any of the other Transaction Documents in accordance with
its specific terms. It is accordingly agreed that Investor shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement or such other Transaction Document and to enforce specifically the terms and provisions
hereof or thereof, this being in addition to any other remedy to which the Investor may be entitled under the Transaction Documents,
at law or in equity. For the avoidance of doubt, in the event Investor seeks to obtain an injunction against Borrower or specific
performance of any provision of any Transaction Document, such action shall not be a waiver of any right of Investor under any
Transaction Document, at law, or in equity, including without limitation its rights to arbitrate any Claim pursuant to the terms
of the Transaction Documents.

 

9.5.
Calculation Disputes. Notwithstanding the Arbitration Provisions, in the case of a dispute as to any determination or arithmetic
calculation under the Transaction Documents, including without limitation, calculating the Outstanding Balance, Warrant Shares,
Exercise Shares (as defined in the Warrant), Delivery Shares (as defined in the Warrant), Lender Conversion Price (as defined
in the Note), Lender Conversion Shares (as defined in the Note), Redemption Conversion Price, Redemption Conversion Shares (as
defined in the Note), Conversion Factor (as defined in the Note), Market Price (as defined in the Note), or VWAP (as defined in
the Note) (each, a “Calculation”), Borrower or Investor (as the case may be) shall submit any disputed Calculation
via email or facsimile with confirmation of receipt (i) within two (2) Trading Days after receipt of the applicable notice giving
rise to such dispute to Borrower or Investor (as the case may be) or (ii) if no notice gave rise to such dispute, at any time
after Investor learned of the circumstances giving rise to such dispute. If Investor and Borrower are unable to agree upon such
Calculation within two (2) Trading Days of such disputed Calculation being submitted to Borrower or Investor (as the case may
be), then Investor will promptly submit via email or facsimile the disputed Calculation to Unkar Systems Inc. (“Unkar
Systems”). Investor shall cause Unkar Systems to perform the Calculation and notify Borrower and Investor of the results
no later than ten (10) Trading Days from the time it receives such disputed Calculation. Unkar Systems’ determination of
the disputed Calculation shall be binding upon all parties absent demonstrable error. Unkar Systems’ fee for performing
such Calculation shall be paid by the incorrect party, or if both parties are incorrect, by the party whose Calculation is furthest
from the correct Calculation as determined by Unkar Systems. In the event Borrower is the losing party, no extension of the Delivery
Date (as defined in the Note) shall be granted and Borrower shall incur all effects for failing to deliver the applicable shares
in a timely manner as set forth in the Transaction Documents. Notwithstanding the foregoing, Investor may, in its sole discretion,
designate an independent, reputable investment bank or accounting firm other than Unkar Systems to resolve any such dispute and
in such event, all references to “Unkar Systems” herein will be replaced with references to such independent, reputable
investment bank or accounting firm so designated by Investor.

 

    	 	 8	 

    	 		 

    

 

9.6.
Counterparts. Each Transaction Document may be executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall constitute one instrument. The parties hereto confirm that any electronic copy of another
party’s executed counterpart of a Transaction Document (or such party’s signature page thereof) will be deemed to
be an executed original thereof.

 

9.7.
Document Imaging. Investor shall be entitled, in its sole discretion, to image or make copies of all or any selection of
the agreements, instruments, documents, and items and records governing, arising from or relating to any of Borrower’s loans,
including, without limitation, this Agreement and the other Transaction Documents, and Investor may destroy or archive the paper
originals. The parties hereto (i) waive any right to insist or require that Investor produce paper originals, (ii) agree that
such images shall be accorded the same force and effect as the paper originals, (iii) agree that Investor is entitled to use such
images in lieu of destroyed or archived originals for any purpose, including as admissible evidence in any demand, presentment
or other proceedings, and (iv) further agree that any executed facsimile (faxed), scanned, emailed, or other imaged copy of this
Agreement or any other Transaction Document shall be deemed to be of the same force and effect as the original manually executed
document.

 

9.8.
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the
interpretation of, this Agreement.

 

9.9.
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform to such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision hereof.

 

9.10.
Entire Agreement. This Agreement, together with the other Transaction Documents, contains the entire understanding of the
parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither
Borrower nor Investor makes any representation, warranty, covenant or undertaking with respect to such matters. For the avoidance
of doubt, all prior term sheets or other documents between Borrower and Investor, or any affiliate thereof, related to the transactions
contemplated by the Transaction Documents (collectively, “Prior Agreements”), that may have been entered into
between Borrower and Investor, or any affiliate thereof, are hereby null and void and deemed to be replaced in their entirety
by the Transaction Documents. To the extent there is a conflict between any term set forth in any Prior Agreement and the term(s)
of the Transaction Documents, the Transaction Documents shall govern.

 

9.11.
Amendments. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by both
parties hereto.

 

    	 	 9	 

    	 		 

    

 

9.12.
Notices. Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall
be deemed effectively given on the earliest of: (i) the date delivered, if delivered by personal delivery as against written receipt
therefor or by email to an executive officer, or by facsimile (with successful transmission confirmation), (ii) the earlier of
the date delivered or the third Trading Day after deposit, postage prepaid, in the United States Postal Service by certified mail,
or (iii) the earlier of the date delivered or the third Trading Day after mailing by express courier, with delivery costs and
fees prepaid, in each case, addressed to each of the other parties thereunto entitled at the following addresses (or at such other
addresses as such party may designate by five (5) calendar days’ advance written notice similarly given to each of the other
parties hereto):

 

If
to Borrower:

 

MGT
Capital Investments, Inc.

Attn:
Robert Ladd

512
S. Magnum Street, Suite 408

Durham,
North Carolina 27701

 

With
a copy to (which copy shall not constitute notice):

Sichenzia
Ross Ference Kesner LLP

Attn:
Jay Kaplowitz, Esq.

61
Broadway

New
York, New York 10006

 

If
to Investor:

 

Iliad
Research and Trading, L.P.

Attn:
John Fife

303
East Wacker Drive, Suite 1040

Chicago,
Illinois 60601

 

With
a copy to (which copy shall not constitute notice):

 

Hansen
Black Anderson Ashcraft PLLC

Attn:
Jonathan Hansen

3051
West Maple Loop Drive, Suite 325

Lehi,
Utah 84043

 

9.13.
Successors and Assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be
performed by Investor hereunder may be assigned by Investor to a third party, including its affiliates, in whole or in part, without
the need to obtain Borrower’s consent thereto. Borrower may not assign its rights or obligations under this Agreement or
delegate its duties hereunder without the prior written consent of Investor.

 

9.14.
Survival. The representations and warranties of Borrower and the agreements and covenants set forth in this Agreement shall
survive the Closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of Investor. Borrower
agrees to indemnify and hold harmless Investor and all its officers, directors, employees, attorneys, and agents for loss or damage
arising as a result of or related to any breach or alleged breach by Borrower of any of its representations, warranties and covenants
set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as
they are incurred.

 

9.15.
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

    	 	 10	 

    	 		 

    

 

9.16.
Investor’s Rights and Remedies Cumulative; Liquidated Damages. All rights, remedies, and powers conferred in this
Agreement and the Transaction Documents are cumulative and not exclusive of any other rights or remedies, and shall be in addition
to every other right, power, and remedy that Investor may have, whether specifically granted in this Agreement or any other Transaction
Document, or existing at law, in equity, or by statute, and any and all such rights and remedies may be exercised from time to
time and as often and in such order as Investor may deem expedient. The parties acknowledge and agree that upon Borrower’s
failure to comply with the provisions of the Transaction Documents, Investor’s damages would be uncertain and difficult
(if not impossible) to accurately estimate because of the parties’ inability to predict future interest rates and future
share prices, Investor’s increased risk, and the uncertainty of the availability of a suitable substitute investment opportunity
for Investor, among other reasons. Accordingly, any fees, charges, and default interest due under the Note, the Warrant, and the
other Transaction Documents are intended by the parties to be, and shall be deemed, liquidated damages (under Borrower’s
and Investor’s expectations that any such liquidated damages will tack back to the Closing Date for purposes of determining
the holding period under Rule 144 under the 1933 Act). The parties agree that such liquidated damages are a reasonable estimate
of Investor’s actual damages and not a penalty, and shall not be deemed in any way to limit any other right or remedy Investor
may have hereunder, at law or in equity. The parties acknowledge and agree that under the circumstances existing at the time this
Agreement is entered into, such liquidated damages are fair and reasonable and are not penalties. All fees, charges, and default
interest provided for in the Transaction Documents are agreed to by the parties to be based upon the obligations and the risks
assumed by the parties as of the Closing Date and are consistent with investments of this type. The liquidated damages provisions
of the Transaction Documents shall not limit or preclude a party from pursuing any other remedy available at law or in equity;
provided, however, that the liquidated damages provided for in the Transaction Documents are intended to be in lieu of
actual damages.

 

9.17.
Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement or the other Transaction Documents,
if at any time Investor would be issued shares of Common Stock under any of the Transaction Documents, but such issuance would
cause Investor (together with its affiliates) to beneficially own a number of shares exceeding the Maximum Percentage (as defined
in the Note), then Company must not issue to Investor the shares that would cause Investor to exceed the Maximum Percentage. The
shares of Common Stock issuable to Investor that would cause the Maximum Percentage to be exceeded are referred to herein as the
“Ownership Limitation Shares”. Company shall reserve the Ownership Limitation Shares for the exclusive benefit
of Investor. From time to time, Investor may notify Company in writing of the number of the Ownership Limitation Shares that may
be issued to Investor without causing Investor to exceed the Maximum Percentage. Upon receipt of such notice, Company shall be
unconditionally obligated to immediately issue such designated shares to Investor, with a corresponding reduction in the number
of the Ownership Limitation Shares. For purposes of this Section, beneficial ownership of Common Stock will be determined under
Section 13(d) of the 1934 Act.

 

9.18.
Attorneys’ Fees and Cost of Collection. In the event of any arbitration or action at law or in equity to enforce
or interpret the terms of this Agreement or any of the other Transaction Documents, the parties agree that the party who is awarded
the most money (which, for the avoidance of doubt, shall be determined without regard to any statutory fines, penalties, fees,
or other charges awarded to any party) shall be deemed the prevailing party for all purposes and shall therefore be entitled to
an additional award of the full amount of the attorneys’ fees, deposition costs, and expenses paid by such prevailing party
in connection with arbitration or litigation without reduction or apportionment based upon the individual claims or defenses giving
rise to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to award
fees and expenses for frivolous or bad faith pleading. If (i) the Note or Warrant is placed in the hands of an attorney for collection
or enforcement prior to commencing arbitration or legal proceedings, or is collected or enforced through any arbitration or legal
proceeding, or Investor otherwise takes action to collect amounts due under the Note or to enforce the provisions of the Note
or the Warrant, or (ii) there occurs any bankruptcy, reorganization, receivership of Borrower or other proceedings affecting Borrower’s
creditors’ rights and involving a claim under the Note or the Warrant; then Borrower shall pay the costs incurred by Investor
for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding,
including, without limitation, attorneys’ fees, expenses, deposition costs, and disbursements.

 

    	 	 11	 

    	 		 

    

 

9.19.
Waiver. No waiver of any provision of this Agreement shall be effective unless it is in the form of a writing signed by
the party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any
other provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing
waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in
writing.

 

9.20.
Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND
THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT,
OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY
ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH
PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

 

9.21.
Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Agreement
and the other Transaction Documents.

 

9.22.
Voluntary Agreement. Borrower has carefully read this Agreement and each of the other Transaction Documents and has asked
any questions needed for Borrower to understand the terms, consequences and binding effect of this Agreement and each of the other
Transaction Documents and fully understand them. Borrower has had the opportunity to seek the advice of an attorney of Borrower’s
choosing, or has waived the right to do so, and is executing this Agreement and each of the other Transaction Documents voluntarily
and without any duress or undue influence by Investor or anyone else.

 

[Remainder
of page intentionally left blank; signature page follows]

 

    	 	 12	 

    	 		 

    

 

IN
WITNESS WHEREOF, the undersigned Investor and Borrower have caused this Agreement to be duly executed as of the date first above
written.

 

SUBSCRIPTION
AMOUNT:

 

	Principal Amount of Note:	 	$	1,355,000.00	 
	 	 	 	 	 
	Purchase Price:	 	$	1,125,000.00	 

 

	 	INVESTOR: 
	 	 	 	 
	 	Iliad Research and Trading, L.P. 
	 	 	 	 
		By:	Iliad Management, LLC, its General Partner 
	 	 	 	 
	 	 	By:	 Fife Trading, Inc., its Manager
	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	John
    M. Fife, President 

 

	 	COMPANY:
	 	 
	 	MGT
    Capital Investments, Inc.
	 	 	 
	 	By:	                         
	 	Printed Name:
    	 
	 	Title:
    	 
	 	 	 
	 	MINING
    SUB:
	 	 	 
	 	MGT
    Mining One, Inc.
	 	 	 
	 	By:	 
	 	Printed
    Name: 	 
	 	Title:
    	 

 

[Signature
Page to Securities Purchase Agreement]

 

    	 	 	 

    	 		 

    

 

ATTACHED
EXHIBITS:

 

	Exhibit
    A	Note
	Exhibit
    B	Warrant
	Exhibit
    C	Escrow
    Agreement
	Exhibit
    D	Mining
    Sub Security Agreement
	Exhibit
    E	Pledge
    Agreement
	Exhibit
    F	Officer’s
    Certificate
	Exhibit
    G	Irrevocable
    Transfer Agent Instructions
	Exhibit
    H	Company
    Secretary’s Certificate
	Exhibit
    I	Share
    Issuance Resolution
	Exhibit
    J	Mining
    Sub Secretary’s Certificate
	Exhibit
    K	Arbitration
    ProvisionsSECURED
CONVERTIBLE PROMISSORY NOTE 

 

	Effective
    Date: May 18, 2017	U.S.
    $1,355,000.00

 

FOR
VALUE RECEIVED, MGT Capital Investments, Inc., a Delaware corporation (“Company”),
and MGT Mining One, Inc., a Delaware corporation (“Mining Sub”,
and together with Company, “Borrower”), promise to pay to Iliad Research
and Trading, L.P., a Utah limited partnership, or its successors or assigns (“Lender”), $1,355,000.00
and any interest, fees, charges, and late fees on the date that is twenty-four (24) months after the Purchase Price Date (the
“Maturity Date”) in accordance with the terms set forth herein and to pay interest on the Outstanding Balance
at the rate of ten percent (10%) per annum from the Purchase Price Date until the same is paid in full. This Secured Convertible
Promissory Note (this “Note”) is issued and made effective as of May 18, 2017 (the “Effective Date”).
This Note is issued pursuant to that certain Securities Purchase Agreement dated May 18, 2017, as the same may be amended from
time to time, by and between Borrower and Lender (the “Purchase Agreement”). All interest calculations hereunder
shall be computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day months, shall compound daily and shall
be payable in accordance with the terms of this Note. Certain capitalized terms used herein are defined in Attachment 1
attached hereto and incorporated herein by this reference.

 

This
Note carries an OID of $225,000.00. In addition, Borrower agrees to pay $5,000.00 to Lender to cover Lender’s legal fees,
accounting costs, due diligence, monitoring and other transaction costs incurred in connection with the purchase and sale of this
Note (the “Transaction Expense Amount”), all of which amount is included in the initial principal balance of
this Note. The purchase price for this Note and the Warrant (as defined in the Purchase Agreement) shall be $1,125,000.00 (the
“Purchase Price”), computed as follows: $1,355,000.00 original principal balance, less the OID, less the Transaction
Expense Amount. The Purchase Price shall be payable by Lender by wire transfer of immediately available funds.

 

1.
Payment; Prepayment.

 

1.1.
Payment. Provided there is an Outstanding Balance, on each Redemption Date (as defined below), Borrower shall pay to Lender
an amount equal to the Redemption Amount (as defined below) due on such Redemption Date in accordance with Section 8. All payments
owing hereunder shall be in lawful money of the United States of America or Conversion Shares (as defined below), as provided
for herein, and delivered to Lender at the address or bank account furnished to Borrower for that purpose. All payments shall
be applied first to (a) costs of collection, if any, then to (b) fees and charges, if any, then to (c) accrued and unpaid interest,
and thereafter, to (d) principal.

 

1.2.
Prepayment. Notwithstanding the foregoing, so long as Borrower has not received a Lender Conversion Notice (as defined
below) or a Redemption Notice (as defined below) from Lender where the applicable Conversion Shares have not yet been delivered
and so long as no Event of Default has occurred since the Effective Date (whether declared by Lender or undeclared), that has
not been waived or cured, then Borrower shall have the right, but not the obligation, exercisable on not less than five (5) Trading
Days prior written notice to Lender to prepay all or any portion of the Outstanding Balance of this Note in accordance with this
Section 1.2. Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to Lender
at its registered address and shall state: (i) that Borrower is exercising its right to prepay this Note, (ii) the date of prepayment,
which shall be not less than five (5) Trading Days from the date of the Optional Prepayment Notice, and (iii) the portion of the
Outstanding Balance Borrower is electing to prepay. On the date fixed for prepayment (the “Optional Prepayment Date”),
Borrower shall make payment of the Optional Prepayment Amount (as defined below) to or upon the order of Lender as may be specified
by Lender in writing to Borrower. If Borrower exercises its right to prepay this Note, Borrower shall make payment to Lender of
an amount in cash equal to 125% (the “Prepayment Premium”) multiplied by the portion of the Outstanding Balance
of this Note Borrower elects to prepay (the “Optional Prepayment Amount”). In the event Borrower delivers the
Optional Prepayment Amount to Lender prior to the Optional Prepayment Date or without delivering an Optional Prepayment Notice
to Lender as set forth herein without Lender’s prior written consent, the Optional Prepayment Amount shall not be deemed
to have been paid to Lender until the Optional Prepayment Date. Lender shall be entitled to exercise its conversion rights set
forth herein during such five (5) day period. In addition, if Borrower delivers an Optional Prepayment Notice and fails to pay
the Optional Prepayment Amount due to Lender within two (2) Trading Days following the Optional Prepayment Date, Borrower shall
forever forfeit its right to prepay this Note.

 

    	 	 	 

    	 

    

 

2.
Security. This Note is secured by (i) the collateral set forth in that certain Security Agreement listing all of Mining
Sub’s assets as security for Mining Sub’s obligations under the Transaction Documents, and (ii) a Pledge Agreement
whereby Company is pledging all shares of common stock of Mining Sub as security for Company’s obligations under the Transaction
Documents.

 

3.
Lender Optional Conversion.

 

3.1.
Lender Conversions. Lender has the right at any time beginning on the date that is six (6) months from the Purchase Price
Date until the Outstanding Balance has been paid in full, including without limitation (a) until any Optional Prepayment Date
(even if Lender has received an Optional Prepayment Notice) or at any time thereafter with respect to any amount that is not prepaid,
and (b) during or after any Fundamental Default Measuring Period, at its election, to convert (each instance of conversion is
referred to herein as a “Lender Conversion”) all or any part of the Outstanding Balance into shares (“Lender
Conversion Shares”) of fully paid and non-assessable common stock, $0.001 par value per share (“Common Stock”),
of Company as per the following conversion formula: the number of Lender Conversion Shares equals the amount being converted (the
“Conversion Amount”) divided by the Lender Conversion Price (as defined below). Conversion notices in the form
attached hereto as Exhibit A (each, a “Lender Conversion Notice”) may be effectively delivered to Company
by any method of Lender’s choice (including but not limited to facsimile, email, mail, overnight courier, or personal delivery),
and all Lender Conversions shall be cashless and not require further payment from Lender. Company shall deliver the Lender Conversion
Shares from any Lender Conversion to Lender in accordance with Section 9 below.

 

3.2.
Lender Conversion Price. Subject to adjustment as set forth in this Note, the price at which Lender has the right to convert
all or any portion of the Outstanding Balance into Common Stock is $1.05 per share of Common Stock (the “Lender Conversion
Price”). However, in the event the Market Capitalization falls below the Minimum Market Capitalization at any time,
then in such event (a) the Lender Conversion Price for all Lender Conversions occurring after the first date of such occurrence
shall equal the lower of the Lender Conversion Price and the Market Price as of any applicable date of Conversion, and (b) the
true-up provisions of Section 11 below shall apply to all Lender Conversions that occur after the first date the Market Capitalization
falls below the Minimum Market Capitalization provided that all references to the “Redemption Notice” in Section 11
shall be replaced with references to a “Lender Conversion Notice” for purposes of this Section 3.2, all references
to “Redemption Conversion Shares” in Section 11 shall be replaced with references to “Lender Conversion Shares”
for purposes of this Section 3.2, and all references to the “Redemption Conversion Price” in Section 11 shall be replaced
with references to the “Lender Conversion Price” for purposes of this Section 3.2.

 

    	 	2	 

    	 

    

 

4.
Defaults and Remedies.

 

4.1.
Defaults. The following are events of default under this Note (each, an “Event of Default”): (a) Borrower
fails to pay any principal, interest, fees, charges, or any other amount when due and payable hereunder; (b) Company fails to
deliver any Lender Conversion Shares in accordance with the terms hereof; (c) Company fails to deliver any Redemption Conversion
Shares (as defined below) or True-Up Shares (as defined below) in accordance with the terms hereof; (d) a receiver, trustee or
other similar official shall be appointed over Borrower or a material part of its assets and such appointment shall remain uncontested
for twenty (20) days or shall not be dismissed or discharged within sixty (60) days; (e) Borrower becomes insolvent or generally
fails to pay, or, with the exception of going concern language in the Borrower’s public financial filings, admits in writing
its inability to pay, its debts as they become due, subject to applicable grace periods, if any; (f) Borrower makes a general
assignment for the benefit of creditors; (g) Borrower files a petition for relief under any bankruptcy, insolvency or similar
law (domestic or foreign); (h) an involuntary bankruptcy proceeding is commenced or filed against Borrower; (i) Borrower defaults
or otherwise fails to observe or perform any material covenant, obligation, condition or agreement of Borrower contained herein
or in any other Transaction Document (other than those specifically set forth in this Section 4.1 and Section 4 of the Purchase
Agreement; (j) any material representation, warranty or other statement made or furnished by or on behalf of Borrower to Lender
herein, in any Transaction Document, or otherwise in connection with the issuance of this Note is false, incorrect, incomplete
or misleading in any material respect when made or furnished; (k) the occurrence of a Fundamental Transaction without Lender’s
prior written consent, which consent shall not be unreasonably withheld; (l) Company fails to maintain the Share Reserve as required
under the Purchase Agreement; (m) Company effectuates a reverse split of its Common Stock without twenty (20) Trading Days prior
written notice to Lender; (n) any money judgment, writ or similar process is entered or filed against Borrower or any subsidiary
of Borrower or any of its property or other assets for more than $100,000.00, and shall remain unvacated, unbonded or unstayed
for a period of twenty (20) calendar days unless otherwise consented to by Lender; (o) Company fails to be DWAC Eligible; (p)
Borrower fails to observe or perform any covenant set forth in Section 4 of the Purchase Agreement; and (q) Borrower breaches
any material covenant or other term or condition contained in any Other Agreements. Notwithstanding the foregoing, the occurrence
of any event described in Section 4(d) – 4(q) shall not be considered an Event of Default if such event is cured within
ten (10) calendar days of its occurrence; provided, however, that only the first occurrence of each of the events described
in Section 4.1(d) – 4.1(q) shall be subject to cure.

 

4.2.
Remedies. At any time and from time to time after Lender becomes aware of the occurrence of any Event of Default, Lender
may accelerate this Note by written notice to Borrower, with the Outstanding Balance becoming immediately due and payable in cash
at the Mandatory Default Amount. Notwithstanding the foregoing, at any time following the occurrence of any Event of Default,
Lender may, at its option, elect to increase the Outstanding Balance by applying the Default Effect (subject to the limitation
set forth below) via written notice to Borrower without accelerating the Outstanding Balance, in which event the Outstanding Balance
shall be increased as of the date of the occurrence of the applicable Event of Default pursuant to the Default Effect, but the
Outstanding Balance shall not be immediately due and payable unless so declared by Lender (for the avoidance of doubt, if Lender
elects to apply the Default Effect pursuant to this sentence, it shall reserve the right to declare the Outstanding Balance immediately
due and payable at any time and no such election by Lender shall be deemed to be a waiver of its right to declare the Outstanding
Balance immediately due and payable as set forth herein unless otherwise agreed to by Lender in writing). Notwithstanding the
foregoing, upon the occurrence of any Event of Default described in clauses (d), (e), (f), (g) or (h) of Section 4.1, the Outstanding
Balance as of the date of acceleration shall become immediately and automatically due and payable in cash at the Mandatory Default
Amount, without any written notice required by Lender. At any time following the occurrence of any Event of Default, upon written
notice given by Lender to Borrower, interest shall accrue on the Outstanding Balance beginning on the date the applicable Event
of Default occurred at an interest rate equal to the lesser of 22% per annum or the maximum rate permitted under applicable law
(“Default Interest”); provided, however, that no Default Interest shall accrue during the Fundamental
Default Measuring Period. For the avoidance of doubt, Lender may continue making Lender Conversions and Redemption Conversions
(as defined below) at any time following an Event of Default until such time as the Outstanding Balance is paid in full. Borrower
further acknowledges and agrees that Lender may continue making Conversions following the entry of any judgment or arbitration
award in favor of Lender until such time that the entire judgment amount or arbitration award is paid in full. Any Conversions
made following a judgment or arbitration award shall be made pursuant to the following formula: the amount of the judgment or
arbitration award being converted divided by 80% of the average VWAP in the ten (10) Trading Days immediately preceding the date
of Conversion . In such event, Borrower and Lender agree that it is their expectation that any such judgment amount or arbitration
award that is converted will tack back to the Purchase Price Date for purposes of determining the holding period under Rule 144.
Additionally, following the occurrence of any Event of Default, Borrower may, at its option, pay any Lender Conversion in cash
instead of Lender Conversion Shares by paying to Lender on or before the applicable Delivery Date (as defined below) a cash amount
equal to the number of Lender Conversion Shares set forth in the applicable Lender Conversion Notice multiplied by the highest
intra-day trading price of the Common Stock that occurs during the period beginning on the date the applicable Event of Default
occurred and ending on the date of the applicable Lender Conversion Notice. In connection with acceleration described herein,
Lender need not provide, and Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and Lender
may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other
remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Lender at any time prior to
payment hereunder and Lender shall have all rights as a holder of the Note until such time, if any, as Lender receives full payment
pursuant to this Section 4.2. No such rescission or annulment shall affect any subsequent Event of Default or impair any right
consequent thereon. Nothing herein shall limit Lender’s right to pursue any other remedies available to it at law or in
equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to Borrower’s
failure to timely deliver Conversion Shares upon Conversion of the Notes as required pursuant to the terms hereof.

 

    	 	3	 

    	 

    

 

4.3.
Fundamental Default Remedies. Notwithstanding anything to the contrary herein, in addition to all other remedies set forth
herein, which shall occur automatically upon the occurrence of any Fundamental Default, the Fundamental Liquidated Damages Amount
shall be added to the Outstanding Balance upon Lender’s delivery to Borrower of a notice (which notice Lender may deliver
to Borrower at any time following the occurrence of a Fundamental Default) setting forth its election to declare a Fundamental
Default and the Fundamental Liquidated Damages Amount that will be added to the Outstanding Balance.

 

4.4.
Certain Additional Rights. Notwithstanding anything to the contrary herein, in the event Borrower fails to make any payment
when due or fails to deliver any Conversion Shares as and when required under this Note, then (a) the Lender Conversion Price
for all Lender Conversions occurring after the date of such failure to pay shall equal the lower of the Lender Conversion Price
and the Market Price as of any applicable date of Conversion, and (b) the true-up provisions of Section 11 below shall apply to
all Lender Conversions that occur after the date of such failure to pay, provided that all references to the “Redemption
Notice” in Section 11 shall be replaced with references to a “Lender Conversion Notice” for purposes of this
Section 4.4, all references to “Redemption Conversion Shares” in Section 11 shall be replaced with references to “Lender
Conversion Shares” for purposes of this Section 4.4, and all references to the “Redemption Conversion Price”
in Section 11 shall be replaced with references to the “Lender Conversion Price” for purposes of this Section 4.4.
For the avoidance of doubt, Lender’s exercise of the rights granted to it pursuant to this Section 4.4 shall not relieve
Borrower of its obligation to continue paying the Redemption Amount on all future Redemption Dates.

 

5.
Unconditional Obligation; No Offset. Borrower acknowledges that this Note is an unconditional, valid, binding and enforceable
obligation of Borrower not subject to offset, deduction or counterclaim of any kind. Borrower hereby waives any rights of offset
it now has or may have hereafter against Lender, its successors and assigns, and agrees to make the payments or Conversions called
for herein in accordance with the terms of this Note.

 

    	 	4	 

    	 

    

 

6.
Waiver. No waiver of any provision of this Note shall be effective unless it is in the form of a writing signed by the
party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any other
provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing
waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in
writing.

 

7.
Rights Upon Issuance of Securities.

 

7.1.
Subsequent Equity Sales. Except with respect to Excluded Securities, if Company or any subsidiary thereof, as applicable,
at any time this Note is outstanding, shall sell, issue or grant any Common Stock, option to purchase Common Stock, right to reprice,
preferred shares convertible into Common Stock, or debt, warrants, options or other instruments or securities to Lender or any
third party which are convertible into or exercisable or exchangeable for shares of Common Stock (collectively, the “Equity
Securities”), including without limitation any Deemed Issuance, at an effective price per share less than the then effective
Lender Conversion Price (such issuance is referred to herein as a “Dilutive Issuance”), then, the Lender Conversion
Price shall be automatically reduced and only reduced to equal such lower effective price per share. If the holder of any Equity
Securities so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion,
exercise or exchange prices or otherwise, or due to warrants, options, or rights per share which are issued in connection with
such Dilutive Issuance, be entitled to receive shares of Common Stock at an effective price per share that is less than the Lender
Conversion Price, such issuance shall be deemed to have occurred for less than the Lender Conversion Price on the date of such
Dilutive Issuance, and the then effective Lender Conversion Price shall be reduced and only reduced to equal such lower effective
price per share. Such adjustments described above to the Lender Conversion Price shall be permanent (subject to additional adjustments
under this section), and shall be made whenever such Equity Securities are issued. Company shall notify Lender, in writing, no
later than the Trading Day following the issuance of any Equity Securities subject to this Section 7.1, indicating therein the
applicable issuance price, or applicable reset price, exchange price, conversion price, or other pricing terms (such notice, the
“Dilutive Issuance Notice”). For purposes of clarity, whether or not Company provides a Dilutive Issuance Notice
pursuant to this Section 7.1, upon the occurrence of any Dilutive Issuance, on the date of such Dilutive Issuance the Lender Conversion
Price shall be lowered to equal the applicable effective price per share regardless of whether Company or Lender accurately refers
to such lower effective price per share in any subsequent Redemption Notice or Lender Conversion Notice. Notwithstanding the foregoing,
in the event of any Dilutive Issuance that results solely from any issuance of Equity Securities to Lender pursuant to any obligations
of the Transaction Documents (each, a “Lender Dilutive Issuance”), the reduction of the Lender Conversion Price
following such Lender Dilutive Issuance shall only be effective for a period of thirty (30) days from the date of such Lender
Dilutive Issuance, after which the Lender Conversion Price will revert to the Lender Conversion Price it would have been but for
the applicable Lender Dilutive Issuance.

 

7.2.
Adjustment of Lender Conversion Price upon Subdivision or Combination of Common Stock. Without limiting any provision hereof,
if Company at any time on or after the Effective Date subdivides (by any stock split, stock dividend, recapitalization or otherwise)
one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Lender Conversion Price in
effect immediately prior to such subdivision will be proportionately reduced. Without limiting any provision hereof, if Company
at any time on or after the Effective Date combines (by combination, reverse stock split or otherwise) one or more classes of
its outstanding shares of Common Stock into a smaller number of shares, the Lender Conversion Price in effect immediately prior
to such combination will be proportionately increased. Any adjustment pursuant to this Section 7.2 shall become effective immediately
after the effective date of such subdivision or combination. If any event requiring an adjustment under this Section 7.2 occurs
during the period that a Lender Conversion Price is calculated hereunder, then the calculation of such Lender Conversion Price
shall be adjusted appropriately to reflect such event.

 

    	 	5	 

    	 

    

 

7.3.
Other Events. In the event that Company (or any subsidiary) shall take any action to which the provisions hereof are not
strictly applicable, or, if applicable, would not operate to protect Lender from dilution or if any event occurs of the type contemplated
by the provisions of this Section 7 but not expressly provided for by such provisions (including, without limitation, the granting
of stock appreciation rights, phantom stock rights or other rights with equity features), then Company’s board of directors
shall in good faith determine and implement an appropriate adjustment in the Lender Conversion Price so as to protect the rights
of Lender, provided that no such adjustment pursuant to this Section 7.3 will increase the Lender Conversion Price as otherwise
determined pursuant to this Section 7, provided further that if Lender does not accept such adjustments as appropriately protecting
its interests hereunder against such dilution, then Company’s board of directors and Lender shall agree, in good faith,
upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination
shall be final and binding and whose fees and expenses shall be borne by Company.

 

8.
Company Redemptions.

 

8.1.
Redemption Conversion Price. Subject to the adjustments set forth herein, the conversion price for each Redemption Conversion
(as defined below) (the “Redemption Conversion Price”) shall be the lesser of (a) the Lender Conversion Price,
and (b) the Market Price.

 

8.2.
Redemption Conversions. Beginning on the date that is three (3) months after the Purchase Price Date, Lender shall have
the right, exercisable at any time, to redeem a portion of the Note in any amount (such amount, the “Redemption Amount”)
up to the Maximum Monthly Redemption Amount by providing Borrower with a notice substantially in the form attached hereto as Exhibit
B (each, a “Redemption Notice”, and each date on which Lender delivers a Redemption Notice, a “Redemption
Date”). For the avoidance of doubt, Lender may submit to Borrower one (1) or more Redemption Notices in any given calendar
month, provided that the aggregate amount being redeemed in any calendar month does not exceed the Maximum Monthly Redemption
Amount. Payments of each Redemption Amount may be made (a) in cash, or (b) by converting such Redemption Amount into shares of
Common Stock (“Redemption Conversion Shares”, and together with the Lender Conversion Shares, the “Conversion
Shares”) in accordance with this Section 8 (each, a “Redemption Conversion”) per the following formula:
the number of Redemption Conversion Shares equals the portion of the applicable Redemption Amount being converted divided by the
Redemption Conversion Price, or (c) by any combination of the foregoing, so long as the cash is delivered to Lender on the second
Trading Day immediately following the applicable Redemption Date and the Redemption Conversion Shares are delivered to Lender
on or before the applicable Delivery Date. Notwithstanding the foregoing, Borrower will not be entitled to elect a Redemption
Conversion with respect to any portion of any applicable Redemption Amount and shall be required to pay the entire amount of such
Redemption Amount in cash if on the applicable Redemption Date there is an Equity Conditions Failure, and such failure is not
waived in writing by Lender. Notwithstanding that failure to repay this Note in full by the Maturity Date is an Event of Default,
the Redemption Dates shall continue after the Maturity Date pursuant to this Section 3.1 until the Outstanding Balance is repaid
in full, provided that the aggregate Redemption Amounts in any given calendar month following an Event of Default may exceed the
Maximum Monthly Redemption Amount.

 

8.3.
Allocation of Redemption Amounts. Following its receipt of a Redemption Notice, Borrower may either ratify Lender’s
proposed allocation in the applicable Redemption Notice or elect to change the allocation by written notice to Lender by email
or fax within twenty-four (24) hours of its receipt of such Redemption Notice, so long as the sum of the cash payments and the
amount of Redemption Conversions equal the applicable Redemption Amount. If Borrower fails to notify Lender of its election to
change the allocation prior to the deadline set forth in the previous sentence, it shall be deemed to have ratified and accepted
the allocation set forth in the applicable Redemption Notice prepared by Lender. Borrower acknowledges and agrees that the amounts
and calculations set forth thereon are subject to correction or adjustment because of error, mistake, or any adjustment resulting
from an Event of Default or other adjustment permitted under the Transaction Documents (an “Adjustment”). Furthermore,
no error or mistake in the preparation of such notices, or failure to apply any Adjustment that could have been applied prior
to the preparation of a Redemption Notice may be deemed a waiver of Lender’s right to enforce the terms of any Note, even
if such error, mistake, or failure to include an Adjustment arises from Lender’s own calculation. Company shall deliver
the Redemption Conversion Shares from any Redemption Conversion to Lender in accordance with Section 9 below on or before each
applicable Delivery Date. If Borrower elects to pay a Redemption Amount in cash, such payment must be delivered on the second
Trading Day immediately following the Redemption Date. If Borrower elects to make a payment in cash and fails to make such payment
by the required due date on two (2) separate occasions, Borrower shall lose the right to make payments of Redemption Amounts in
cash in the future without Lender’s written consent.

 

    	 	6	 

    	 

    

 

9.
Method of Conversion Share Delivery. On or before the close of business on the fifth (5th) Trading Day following
each Redemption Date or the fifth (5th) Trading Day following the date of delivery of a Lender Conversion Notice, as
applicable (the “Delivery Date”), Company shall, provided it is DWAC Eligible at such time, deliver or cause
its transfer agent to deliver the applicable Conversion Shares electronically via DWAC to the account designated by Lender in
the applicable Lender Conversion Notice or Redemption Notice. If Company is not DWAC Eligible, it shall deliver to Lender or its
broker (as designated in the Lender Conversion Notice or Redemption Notice, as applicable), via reputable overnight courier, a
certificate representing the number of shares of Common Stock equal to the number of Conversion Shares to which Lender shall be
entitled, registered in the name of Lender or its designee. For the avoidance of doubt, Company has not met its obligation to
deliver Conversion Shares by the Delivery Date unless Lender or its broker, as applicable, has actually received the certificate
representing the applicable Conversion Shares no later than the close of business on the relevant Delivery Date pursuant to the
terms set forth above. Moreover, and notwithstanding anything to the contrary herein or in any other Transaction Document, in
the event Company or its transfer agent refuses to deliver any Conversion Shares to Lender on grounds that such issuance is in
violation of Rule 144 under the Securities Act of 1933, as amended (“Rule 144”), Company shall deliver or cause
its transfer agent to deliver the applicable Conversion Shares to Lender with a restricted securities legend, but otherwise in
accordance with the provisions of this Section 9. In conjunction therewith, Company will also deliver to Lender a written opinion
from its counsel or its transfer agent’s counsel opining as to why the issuance of the applicable Conversion Shares violates
Rule 144.

 

10.
Conversion Delays. If Company fails to deliver Conversion Shares or True-Up Shares in accordance with the timeframes stated
in Sections 9 or 11, as applicable, Lender, at any time prior to selling all of those Conversion Shares or True-Up Shares, as
applicable, may rescind in whole or in part that particular Conversion attributable to the unsold Conversion Shares or True-Up
Shares, with a corresponding increase to the Outstanding Balance (any returned amount will tack back to the Purchase Price Date
for purposes of determining the holding period under Rule 144). In addition, for each Lender Conversion, in the event that Lender
Conversion Shares are not delivered by the fourth Trading Day (inclusive of the day of the Lender Conversion), a late fee equal
to the greater of (a) $500.00 and (b) 2% of the applicable Lender Conversion Share Value rounded to the nearest multiple of $100.00
(but in any event the cumulative amount of such late fees for each Lender Conversion shall not exceed 200% of the applicable Lender
Conversion Share Value) will be assessed for each day after the fifth Trading Day (inclusive of the day of the Lender Conversion)
until Lender Conversion Share delivery is made; and such late fee will be added to the Outstanding Balance (such fees, the “Conversion
Delay Late Fees”). For illustration purposes only, if Lender delivers a Lender Conversion Notice to Company pursuant
to which Company is required to deliver 100,000 Lender Conversion Shares to Lender and on the Delivery Date such Lender Conversion
Shares have a Lender Conversion Share Value of $20,000.00 (assuming a Closing Trade Price on the Delivery Date of $0.20 per share
of Common Stock), then in such event a Conversion Delay Late Fee in the amount of $500.00 per day (the greater of $500.00 per
day and $20,000.00 multiplied by 2%, which is $400.00) would be added to the Outstanding Balance of the Note until such Lender
Conversion Shares are delivered to Lender. For purposes of this example, if the Lender Conversion Shares are delivered to Lender
twenty (20) days after the applicable Delivery Date, the total Conversion Delay Late Fees that would be added to the Outstanding
Balance would be $10,000.00 (20 days multiplied by $500.00 per day). If the Lender Conversion Shares are delivered to Lender one
hundred (100) days after the applicable Delivery Date, the total Conversion Delay Late Fees that would be added to the Outstanding
Balance would be $40,000.00 (100 days multiplied by $500.00 per day, but capped at 200% of the Lender Conversion Share Value).

 

    	 	7	 

    	 

    

 

11.
True-Up. On the date that is twenty (20) Trading Days (a “True-Up Date”) from each date that any Redemption
Conversion Shares delivered by Company to Lender become Free Trading, there shall be a true-up where Company shall deliver to
Lender additional Redemption Conversion Shares (“True-Up Shares”) if the Redemption Conversion Price as of
the True-Up Date is less than the Redemption Conversion Price used in the applicable Redemption Notice. In such event, Company
shall deliver to Lender within five (5) Trading Days of the True-Up Date (the “True-Up Share Delivery Date”)
a number of True-Up Shares equal to the difference between the number of Redemption Conversion Shares that would have been delivered
to Lender on the True-Up Date based on the Redemption Conversion Price as of the True-Up Date and the number of Redemption Conversion
Shares originally delivered to Lender pursuant to the applicable Redemption Notice. For the avoidance of doubt, if the Redemption
Conversion Price as of the True-Up Date is higher than the Redemption Conversion Price set forth in the applicable Redemption
Notice, then Company shall have no obligation to deliver True-Up Shares to Lender, nor shall Lender have any obligation to return
any excess Redemption Conversion Shares to Company under any circumstance. For the convenience of Company only, Lender may, in
its sole discretion, deliver to Company a notice (pursuant to a form of notice substantially in the form attached hereto as Exhibit
C) informing Company of the number of True-Up Shares it is obligated to deliver to Lender as of any given True-Up Date, provided
that if Lender does not deliver any such notice, Company shall not be relieved of its obligation to deliver True-Up Shares pursuant
to this Section 11. Notwithstanding the foregoing, if Company fails to deliver any required True-Up Shares on or before any applicable
True-Up Share Delivery Date, then in such event the Outstanding Balance of this Note will automatically increase by a sum equal
to the number of True-Up Shares deliverable as of the applicable True-Up Date multiplied by the Market Price for the Common Stock
as of the applicable True-Up Date (under Lender’s and Company’s expectations that any such increase will tack back
to the Purchase Price Date for purposes of determining the holding period under Rule 144).

 

12.
Ownership Limitation. Notwithstanding anything to the contrary contained in this Note or the other Transaction Documents,
if at any time Lender shall or would be issued shares of Common Stock under any of the Transaction Documents, but such issuance
would cause Lender (together with its affiliates) to beneficially own a number of shares exceeding 4.99% of the number of shares
of Common Stock outstanding on such date (including for such purpose the shares of Common Stock issuable upon such issuance) (the
“Maximum Percentage”), then Company must not issue to Lender shares of Common Stock which would exceed the
Maximum Percentage. For purposes of this section, beneficial ownership of Common Stock will be determined pursuant to Section
13(d) of the 1934 Act. The shares of Common Stock issuable to Lender that would cause the Maximum Percentage to be exceeded are
referred to herein as the “Ownership Limitation Shares”. Company will reserve the Ownership Limitation Shares
for the exclusive benefit of Lender. From time to time, Lender may notify Company in writing of the number of the Ownership Limitation
Shares that may be issued to Lender without causing Lender to exceed the Maximum Percentage. Upon receipt of such notice, Company
shall be unconditionally obligated to immediately issue such designated shares to Lender, with a corresponding reduction in the
number of the Ownership Limitation Shares. Notwithstanding the forgoing, the term “4.99%” above shall be replaced
with “9.99%” at such time as the Market Capitalization is less than $10,000,000.00. Notwithstanding any other provision
contained herein, if the term “4.99%” is replaced with “9.99%” pursuant to the preceding sentence, such
increase to “9.99%” shall remain at 9.99% until increased, decreased or waived by Lender as set forth below. By written
notice to Company, Lender may increase, decrease or waive the Maximum Percentage as to itself but any such waiver will not be
effective until the 61st day after delivery thereof. The foregoing 61-day notice requirement is enforceable, unconditional and
non-waivable and shall apply to all affiliates and assigns of Lender.

 

    	 	8	 

    	 

    

 

13.
Payment of Collection Costs. If this Note is placed in the hands of an attorney for collection or enforcement prior to
commencing arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Lender
otherwise takes action to collect amounts due under this Note or to enforce the provisions of this Note, then Borrower shall pay
the reasonable costs incurred by Lender for such collection, enforcement or action including, without limitation, attorneys’
fees and disbursements. Borrower also agrees to pay for any reasonable costs, fees or charges of its transfer agent that are charged
to Lender pursuant to any Conversion or issuance of shares pursuant to this Note.

 

14.
Opinion of Counsel. In the event that an opinion of counsel is needed for any matter related to this Note, Lender has the
right to have any such opinion provided by its counsel. Lender also has the right to have any such opinion provided by Borrower’s
counsel.

 

15.
Governing Law; Venue. This Note shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of Utah, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the Purchase
Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

16.
Resolution of Disputes.

 

16.1.
Arbitration of Disputes. By its acceptance of this Note, each party agrees to be bound by the Arbitration Provisions (as
defined in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement.

 

16.2.
Calculation Disputes. Notwithstanding the Arbitration Provisions, in the case of a dispute as to any Calculation (as defined
in the Purchase Agreement), such dispute will be resolved in the manner set forth in the Purchase Agreement.

 

17.
Cancellation. After repayment or conversion of the entire Outstanding Balance (including without limitation delivery of
True-Up Shares pursuant to the payment of the final Redemption Amount, if applicable), this Note shall be deemed paid in full,
shall automatically be deemed canceled, and shall not be reissued.

 

18.
Amendments. The prior written consent of both parties hereto shall be required for any change or amendment to this Note.

 

19.
Assignments. Borrower may not assign this Note without the prior written consent of Lender. This Note and any shares of
Common Stock issued upon conversion of this Note may be offered, sold, assigned or transferred by Lender without the consent of
Borrower.

 

20.
Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Note and
the documents and instruments entered into in connection herewith.

 

    	 	9	 

    	 

    

 

21.
Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be
given in accordance with the subsection of the Purchase Agreement titled “Notices.”

 

22.
Liquidated Damages. Lender and Borrower agree that in the event Borrower fails to comply with any of the terms or provisions
of this Note, Lender’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the
parties’ inability to predict future interest rates, future share prices, future trading volumes and other relevant factors.
Accordingly, Lender and Borrower agree that any fees, balance adjustments, Default Interest or other charges assessed under this
Note are not penalties but instead are intended by the parties to be, and shall be deemed, liquidated damages (under Lender’s
and Borrower’s expectations that any such liquidated damages will tack back to the Purchase Price Date for purposes of determining
the holding period under Rule 144).

 

23.
Waiver of Jury Trial. EACH OF LENDER AND BORROWER IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT
ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR THE RELATIONSHIPS OF THE PARTIES HERETO
BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE
STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING
SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

 

24.
Voluntary Agreement. Borrower has carefully read this Note and has asked any questions needed for Borrower to understand
the terms, consequences and binding effect of this Note and fully understand them. Borrower has had the opportunity to seek the
advice of an attorney of Borrower’s choosing, or has waived the right to do so, and is executing this Note voluntarily and
without any duress or undue influence by Lender or anyone else.

 

25.
Severability. If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve
the objective of Borrower and Lender to the fullest extent permitted by law and the balance of this Note shall remain in full
force and effect.

 

26.
Par Value Adjustments. If at any time Lender delivers a Lender Conversion Notice or a Redemption Notice to Borrower and
as of such date the Lender Conversion Price or Redemption Conversion Price, as applicable, would be less than the Par Value, then,
as liquidated damages, Borrower must pay to Lender the Par Value Adjustment Amount in cash within one (1) Trading Day of delivery
of the applicable Lender Conversion Notice or Redemption Notice (a “Par Value Adjustment”). If Borrower does
not deliver the Par Value Adjustment Amount as required, then such amount shall automatically be added to the Outstanding Balance.
The number of Conversion Shares deliverable pursuant to any relevant Lender Conversion Notice or Redemption Conversion Notice
following a Par Value Adjustment shall be equal to (a) the Conversion Amount or Redemption Amount, as applicable, divided by (b)
the Par Value. In the event of a Par Value Adjustment, Lender will use a Lender Conversion Notice in substantially the form attached
hereto as Exhibit D or a Redemption Conversion Notice in substantially the form attached hereto as Exhibit E.

 

[Remainder
of page intentionally left blank; signature page follows]

 

    	 	10	 

    	 

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be duly executed as of the Effective Date.

 

	 	BORROWER:
	 	 
	 	MGT Capital Investments, Inc.
	 	 	 
	 	By:
    	                     
	 	Name:
    	 
	 	Title:
    	 
	 	 	 
	 	MGT Mining One, Inc.
	 	 	 
	 	By:
    	 
	 	Name:
    	 
	 	Title:
    	 

 

ACKNOWLEDGED,
ACCEPTED AND AGREED:

 

LENDER:

 

Iliad
Research and Trading, L.P.

 

	By:
    	Iliad Management, LLC, its General Partner	 
	 	 	 	 	 
	 	By:	Fife Trading, Inc., its Manager	 
	 	 	 	 	 
	 	 	By:
    	 	 
	 	 		John
    M. Fife, President 	 

 

[Signature
Page to Secured Convertible Promissory Note]

 

    	 	 	 

    	 

    

 

ATTACHMENT
1

DEFINITIONS

 

For
purposes of this Note, the following terms shall have the following meanings:

 

A1.
“Adjusted Outstanding Balance” means the Outstanding Balance of this Note as of the date the applicable Fundamental
Default occurred less any Conversion Delay Late Fees included in such Outstanding Balance.

 

A2.
“Approved Stock Plan” means any equity compensation plan which has been approved by the shareholders of Company
and is in effect as of the Purchase Price Date, pursuant to which Company’s securities may be issued to any employee, officer
or director for services provided to Company.

 

A3.
“Bloomberg” means Bloomberg L.P. (or if that service is not then reporting the relevant information regarding
the Common Stock, a comparable reporting service of national reputation selected by Lender and reasonably satisfactory to Company).

 

A4.
“Closing Bid Price” and “Closing Trade Price” means the last closing bid price and last
closing trade price, respectively, for the Common Stock on its principal market, as reported by Bloomberg, or, if its principal
market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as
the case may be) then the last bid price or last trade price, respectively, of the Common Stock prior to 4:00:00 p.m., New York
time, as reported by Bloomberg, or, if its principal market is not the principal securities exchange or trading market for the
Common Stock, the last closing bid price or last trade price, respectively, of the Common Stock on the principal securities exchange
or trading market where the Common Stock is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last
closing bid price or last trade price, respectively, of the Common Stock in the over-the-counter market on the electronic bulletin
board for the Common Stock as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported
for the Common Stock by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for the
Common Stock as reported by OTC Markets Group, Inc., and any successor thereto. If the Closing Bid Price or the Closing Trade
Price cannot be calculated for the Common Stock on a particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Trade Price (as the case may be) of the Common Stock on such date shall be the fair market value as mutually determined
by Lender and Company. If Lender and Company are unable to agree upon the fair market value of the Common Stock, then such dispute
shall be resolved in accordance with the procedures in Section 16.2. All such determinations shall be appropriately adjusted for
any stock dividend, stock split, stock combination or other similar transaction during such period.

 

A5.
“Conversion” means a Lender Conversion under Section 3 or a Redemption Conversion under Section 8.

 

A6.
“Conversion Factor” means 65%, subject to the following adjustments. If at any time the lowest intra-day trade
price of the Common Stock during the thirty (30) Trading Days immediately preceding any date of measurement is below $0.50, then
in such event the then-current Conversion Factor shall be reduced by 10% (subject to other reductions set forth in this section).
If at any time after the Effective Date, Company is not DWAC Eligible, then the then-current Conversion Factor will automatically
be reduced by 5% for all future Conversions. If at any time after the Effective Date, the Conversion Shares are not DTC Eligible,
then the then-current Conversion Factor will automatically be reduced by an additional 5% for all future Conversions. Finally,
in addition to the Default Effect, if any Major Default occurs after the Effective Date, the Conversion Factor shall automatically
be reduced for all future Conversions by an additional 5% for each of the first three (3) Major Defaults that occur after the
Effective Date (for the avoidance of doubt, each occurrence of any Major Default shall be deemed to be a separate occurrence for
purposes of the foregoing reductions in Conversion Factor, even if the same Major Default occurs three (3) separate times). For
example, the first time Company is not DWAC Eligible, the Conversion Factor for future Conversions thereafter will be reduced
from 65% to 60% for purposes of this example. Following such event, the first time the Conversion Shares are no longer DTC Eligible,
the Conversion Factor for future Conversions thereafter will be reduced from 60% to 55% for purposes of this example. If, thereafter,
there are three (3) separate occurrences of a Major Default pursuant to Section 4.1(c), then for purposes of this example the
Conversion Factor would be reduced by 5% for the first such occurrence, and so on for each of the second and third occurrences
of such Major Default.

 

Attachment
1 to Secured Convertible Promissory Note, Page 1

 

    	 	 	 

    	 

    

 

A7.
“Deemed Issuance” means an issuance of Common Stock that shall be deemed to have occurred on the latest possible
permitted date pursuant to the terms hereof in the event Company fails to deliver Conversion Shares as and when required pursuant
to Section 9 of the Note or Warrant Shares (as defined in the Warrant) as and when required pursuant to the Warrant. For the avoidance
of doubt, if Borrower has elected or is deemed under Section 8.3 to have elected to pay a Redemption Amount in Redemption Conversion
Shares and fails to deliver such Redemption Conversion Shares, such failure shall be considered a Deemed Issuance hereunder even
if an Equity Conditions Failure exists at that time or other relevant date of determination.

 

A8.
“Default Effect” means multiplying the Outstanding Balance as of the date the applicable Event of Default occurred
by (a) 15% for each occurrence of any Major Default, or (b) 5% for each occurrence of any Minor Default, and then adding the resulting
product to the Outstanding Balance as of the date the applicable Event of Default occurred, with the sum of the foregoing then
becoming the Outstanding Balance under this Note as of the date the applicable Event of Default occurred; provided that the Default
Effect may only be applied three (3) times hereunder with respect to Major Defaults and three (3) times hereunder with respect
to Minor Defaults; and provided further that the Default Effect shall not apply to any Event of Default pursuant to Section 4.1(b)
hereof.

 

A9.
“DTC” means the Depository Trust Company or any successor thereto.

 

A10.
“DTC Eligible” means, with respect to the Common Stock, that such Common Stock is eligible to be deposited
in certificate form at the DTC, cleared and converted into electronic shares by the DTC and held in the name of the clearing firm
servicing Lender’s brokerage firm for the benefit of Lender.

 

A11.
“DTC/FAST Program” means the DTC’s Fast Automated Securities Transfer program.

 

A12.
“DWAC” means the DTC’s Deposit/Withdrawal at Custodian system.

 

A13.
“DWAC Eligible” means that (a) Company’s Common Stock is eligible at DTC for full services pursuant to
DTC’s operational arrangements, including without limitation transfer through DTC’s DWAC system, (b) Company has been
approved (without revocation) by DTC’s underwriting department, (c) Company’s transfer agent is approved as an agent
in the DTC/FAST Program, (d) the Conversion Shares are otherwise eligible for delivery via DWAC; (e) Company has previously delivered
all Conversion Shares to Lender via DWAC; and (f) Company’s transfer agent does not have a policy prohibiting or limiting
delivery of the Conversion Shares via DWAC.

 

A14.
“Equity Conditions Failure” means that any of the following conditions has not been satisfied during any applicable
Equity Conditions Measuring Period (as defined below): (a) with respect to the applicable date of determination all of the Conversion
Shares would be freely tradable either (i) under Rule 144 or without the need for registration under any applicable federal or
state securities laws (in each case, disregarding any limitation on conversion of this Note), or (ii) registered pursuant to an
effective registration statement on Form S-1; (b) on each day during the period beginning one month prior to the applicable date
of determination and ending on and including the applicable date of determination (the “Equity Conditions Measuring Period”),
the Common Stock is listed or designated for quotation (as applicable) on any of NYSE, NASDAQ, OTCQX, OTCQB, or OTC Pink Current
Information (each, an “Eligible Market”) and shall not have been suspended from trading on any such Eligible
Market (other than suspensions of not more than two (2) Trading Days and occurring prior to the applicable date of determination
due to business announcements by Company); (c) on each day during the Equity Conditions Measuring Period, Company shall have delivered
all shares of Common Stock issuable upon conversion of this Note on a timely basis as set forth in Section 9 hereof and all other
shares of capital stock required to be delivered by Company on a timely basis as set forth in the other Transaction Documents;
(d) any shares of Common Stock to be issued in connection with the event requiring determination may be issued in full without
violating Section 12 hereof (Lender acknowledges that Company shall be entitled to assume that this condition has been met for
all purposes hereunder absent written notice from Lender); (e) any shares of Common Stock to be issued in connection with the
event requiring determination may be issued in full without violating the rules or regulations of the Eligible Market on which
the Common Stock is then listed or designated for quotation (as applicable); (f) on each day during the Equity Conditions Measuring
Period, no public announcement of a pending, proposed or intended Fundamental Transaction shall have occurred which has not been
abandoned, terminated or consummated; (g) Company shall have no knowledge of any fact that would reasonably be expected to cause
any of the Conversion Shares to not be freely tradable without the need for registration under any applicable state securities
laws (in each case, disregarding any limitation on conversion of this Note); (h) on each day during the Equity Conditions Measuring
Period, Company otherwise shall have been in material compliance with each, and shall not have breached any, term, provision,
covenant, representation or warranty of any Transaction Document; (i) without limiting clause (j) above, on each day during the
Equity Conditions Measuring Period, there shall not have occurred an Event of Default or an event that with the passage of time
or giving of notice would constitute an Event of Default; (k) on each Redemption Date, the average and median daily dollar volume
of the Common Stock on its principal market for the previous twenty (20) Trading Days shall be greater than $50,000.00; and (l)
the Common Stock shall be DWAC Eligible as of each applicable Redemption Date or other date of determination.

 

Attachment
1 to Secured Convertible Promissory Note, Page 2

 

    	 	 	 

    	 

    

 

A15.
“Excluded Securities” means any shares of Common Stock issued or issuable in connection with (i) full or partial
consideration in connection with a strategic merger, acquisition, consolidation or purchase of substantially all of the securities
or assets of a corporation or other entity, (ii) Company’s issuance of securities in connection with strategic license agreements
and other partnering arrangements so long as such issuances are not primarily for the purpose of raising capital, (iii) issuance
of securities in connection with the acquisition of assets or transactions related to Company’s business as conducted on
the date hereof, and (iv) Company’s issuance of Common Stock or the issuances or grants of options to purchase Common Stock
to employees, directors, service providers and consultants, pursuant to an Approved Stock Plan.

 

A16.
“Free Trading” means that (a) the shares or certificate(s) representing the applicable shares of Common Stock
have been cleared and approved for public resale by the compliance departments of Lender’s brokerage firm and the clearing
firm servicing such brokerage, and (b) such shares are held in the name of the clearing firm servicing Lender’s brokerage
firm and have been deposited into such clearing firm’s account for the benefit of Lender.

 

A17.
“Fundamental Default” means that Borrower either fails to pay the entire Outstanding Balance to Lender on or
before the Maturity Date or fails to pay the Mandatory Default Amount within three (3) Trading Days of the date Lender delivers
any notice of acceleration to Borrower pursuant to Section 4.2 of this Note.

 

A18.
“Fundamental Default Conversion Value” means the Adjusted Outstanding Balance multiplied by the highest Fundamental
Default Ratio that occurs during the Fundamental Default Measuring Period.

 

A19.
“Fundamental Default Measuring Period” means a number of months equal to the Outstanding Balance as of the
date the Fundamental Default occurred divided by the Redemption Amount, with such number being rounded up to the next whole month;
provided, however, that if Borrower repays the entire Outstanding Balance prior to the conclusion of the Fundamental Default
Measuring Period, the Fundamental Default Measuring Period shall end on the date of repayment. For illustration purposes only,
if the Outstanding Balance were equal to $125,000.00 as of the date a Fundamental Default occurred and if the Redemption Amount
were $28,500.00, then the Fundamental Default Measuring Period would equal five (5) months calculated as follows: $125,000.00/$28,500.00
equals 4.386, rounded up to five (5).

 

A20.
“Fundamental Default Ratio” means a ratio that will be calculated on each Trading Day during the Fundamental
Default Measuring Period by dividing the Closing Trade Price for the Common Stock on a given Trading Day by the Lender Conversion
Price (as adjusted pursuant to the terms hereof) in effect for such Trading Day.

 

A21.
“Fundamental Liquidated Damages Amount” means the greater of (a) (i) the quotient of the Outstanding Balance
on the date the Fundamental Default occurred divided by the then-current Conversion Factor, minus (ii) the Outstanding Balance
on the date the Fundamental Default occurred, or (b) the Fundamental Default Conversion Value.

 

A22.
“Fundamental Transaction” means that (a) (i) Borrower or any of its subsidiaries shall, directly or indirectly,
in one or more related transactions, consolidate or merge with or into (whether or not Borrower or any of its subsidiaries is
the surviving corporation) any other person or entity, or (ii) Borrower or any of its subsidiaries shall, directly or indirectly,
in one or more related transactions, sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially
all of its respective properties or assets to any other person or entity, or (iii) Borrower or any of its subsidiaries shall,
directly or indirectly, in one or more related transactions, allow any other person or entity to make a purchase, tender or exchange
offer that is accepted by the holders of more than 50% of the outstanding shares of voting stock of Borrower (not including any
shares of voting stock of Borrower held by the person or persons making or party to, or associated or affiliated with the persons
or entities making or party to, such purchase, tender or exchange offer), or (iv) Borrower or any of its subsidiaries shall, directly
or indirectly, in one or more related transactions, consummate a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other person or
entity whereby such other person or entity acquires more than 50% of the outstanding shares of voting stock of Borrower (not including
any shares of voting stock of Borrower held by the other persons or entities making or party to, or associated or affiliated with
the other persons or entities making or party to, such stock or share purchase agreement or other business combination), or (v)
Company or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, reorganize, recapitalize
or reclassify the Common Stock, other than an increase in the number of authorized shares of Company’s Common Stock, or
(b) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934
Act and the rules and regulations promulgated thereunder) is or shall become the “beneficial owner” (as defined in
Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and
outstanding voting stock of Company.

 

Attachment
1 to Secured Convertible Promissory Note, Page 3

 

    	 	 	 

    	 

    

 

A23.
“Lender Conversion Share Value” means the product of the number of Lender Conversion Shares deliverable pursuant
to any Lender Conversion multiplied by the Closing Trade Price of the Common Stock on the Delivery Date for such Lender Conversion.

 

A24.
“Major Default” means any Event of Default occurring under Sections 4.1(a), 4.1(c), 4.1(l), 4.1(p), or 4.1(r)
of this Note.

 

A25.
“Mandatory Default Amount” means the greater of (a) the Outstanding Balance divided by the Redemption Conversion
Price on the date the Mandatory Default Amount is demanded, multiplied by the VWAP on the date the Mandatory Default Amount is
demanded, or (b) the Outstanding Balance following the application of the Default Effect.

 

A26.
“Market Capitalization” means a number equal to (a) the average VWAP of the Common Stock for the immediately
preceding fifteen (15) Trading Days, multiplied by (b) the aggregate number of outstanding shares of Common Stock as reported
on Company’s most recently filed Form 10-Q or Form 10-K.

 

A27.
“Market Price” means the Conversion Factor multiplied by the average of the lowest intra-day trade price of
the Common Stock during the thirty (30) Trading Days immediately preceding the applicable Conversion.

 

A28.
“Minimum Market Capitalization” means $10,000,000.

 

A29.
“Maximum Monthly Redemption Amount” means $90,000.00, which is the maximum aggregate Redemption Amount that
may be redeemed in any calendar month.

 

A30.
“Minor Default” means any Event of Default that is not a Major Default or a Fundamental Default.

 

A31.
“OID” means an original issue discount.

 

A32.
“Other Agreements” means, collectively, (a) all existing and future agreements and instruments between, among
or by Borrower (or an affiliate), on the one hand, and Lender (or an affiliate), on the other hand, and (b) any financing agreement
or a material agreement that affects Borrower’s ongoing business operations.

 

A33.
“Outstanding Balance” means as of any date of determination, the Purchase Price, as reduced or increased, as
the case may be, pursuant to the terms hereof for payment, Conversion, offset, or otherwise, plus the OID, the Transaction Expense
Amount, accrued but unpaid interest, collection and enforcements costs (including attorneys’ fees) incurred by Lender, transfer,
stamp, issuance and similar taxes and fees related to Conversions, and any other fees or charges (including without limitation
Conversion Delay Late Fees) incurred under this Note.

 

A34.
“Par Value” means the par value of the Common Stock on any relevant date of determination. The Par Value as
of the Effective Date is $0.001.

 

A35.
“Par Value Adjustment Amount” means an amount calculated as follows: (a) the number of Conversion Shares deliverable
under a particular Lender Conversion Notice or Redemption Notice (prior to any Par Value Adjustment) multiplied by the Par Value,
less (b) the Conversion Amount or Redemption Amount, as applicable (prior to any Par Value Adjustment), plus (c) $500.00. For
illustration purposes only, if for a given Conversion, the Conversion Amount was $20,000.00, the Conversion Price was $0.0008
and the Par Value was $0.001 then the Par Value Adjustment Amount would be $5,500.00 (25,000,000 Conversion Shares ($20,000.00/$0.0008)
multiplied by the Par Value of $0.001 ($25,000.00) minus the Conversion Amount of $20,000.00 plus $500.00 equals $5,500.00).

 

A36.
“Purchase Price Date” means the date the Purchase Price is delivered by Lender to Borrower.

 

A37.
“Trading Day” means any day on which the New York Stock Exchange is open for trading.

 

A38.
“VWAP” means the volume weighted average price of the Common stock on the principal market for a particular
Trading Day or set of Trading Days, as the case may be, as reported by Bloomberg.

 

Attachment
1 to Secured Convertible Promissory Note, Page 4

 

    	 	 	 

    	 

    

 

EXHIBIT
A

 

Iliad
Research and Trading, L.P.

303
East Wacker Drive, Suite 1040

Chicago,
Illinois 60601

 

	MGT
    Capital Investments, Inc.	Date:
    __________________

 

Attn:
Robert Ladd, CEO

512
S. Magnum Street, Suite 408

Durham,
North Carolina 27701

 

LENDER
CONVERSION NOTICE

 

The
above-captioned Lender hereby gives notice to MGT Capital Investments, Inc., a Delaware corporation (“Company”),
and MGT Mining One, Inc., a Delaware corporation (“Mining Sub”, and together with Company, “Borrower”),
pursuant to that certain Secured Convertible Promissory Note made by Borrower in favor of Lender on May 18, 2017 (the “Note”),
that Lender elects to convert the portion of the Note balance set forth below into fully paid and non-assessable shares of Common
Stock of Company as of the date of conversion specified below. Said conversion shall be based on the Lender Conversion Price set
forth below. In the event of a conflict between this Lender Conversion Notice and the Note, the Note shall govern, or, in the
alternative, at the election of Lender in its sole discretion, Lender may provide a new form of Lender Conversion Notice to conform
to the Note. Capitalized terms used in this notice without definition shall have the meanings given to them in the Note.

 

	 	A.	Date
    of Conversion:    ____________
	 	 	 
	 	B.	Lender
    Conversion #:  ____________
	 	 	 
	 	C.	Conversion
    Amount: ____________
	 	 	 
	 	D.	Lender
    Conversion Price: _______________ 
	 	 	 
	 	E.	Lender
    Conversion Shares: _______________ (C divided by D)
	 	 	 
	 	F.	Remaining
    Outstanding Balance of Note: ____________* 

 

*
Subject to adjustments for corrections, defaults, interest and other adjustments permitted by the Transaction Documents (as defined
in the Purchase Agreement), the terms of which shall control in the event of any dispute between the terms of this Lender Conversion
Notice and such Transaction Documents.

 

Please
transfer the Lender Conversion Shares electronically (via DWAC) to the following account:

 

	Broker:
    	 	 	Address:	 
	DTC#:
    	 	 	 	 
	Account
    #: 	 	 	 	 
	Account
    Name: 	 	 	 	 

 

To
the extent the Lender Conversion Shares are not able to be delivered to Lender electronically via the DWAC system, deliver all
such certificated shares to Lender via reputable overnight courier after receipt of this Lender Conversion Notice (by facsimile
transmission or otherwise) to:

_____________________________________

_____________________________________

_____________________________________

 

Exhibit
A to Secured Convertible Promissory Note, Page 1

 

    	 	 	 

    	 

    

 

Sincerely,

 

	Lender:	 	 	 
	 	 	 	 	 
	Iliad Research and Trading, L.P.	 
	 	 	 	 	 
	By:	Iliad Management, LLC, its General Partner	 
	 	 	 	 	 
	 	By:	Fife Trading, Inc., its Manager	 
	 	 	 	 	 
	 	 	By:
    	 	 
	 	 		John
M. Fife, President	 

 

Exhibit
A to Secured Convertible Promissory Note, Page 2

 

    	 	 	 

    	 

    

 

EXHIBIT
B

 

Iliad
Research and Trading, L.P.

303
East Wacker Drive, Suite 1040

Chicago,
Illinois 60601

 

	MGT
    Capital Investments, Inc.	Date:
    __________________

 

Attn:
Robert Ladd, CEO

512
S. Magnum Street, Suite 408

Durham,
North Carolina 27701

 

REDEMPTION
NOTICE

 

The
above-captioned Lender hereby gives notice to MGT Capital Investments, Inc., a Delaware corporation (“Company”),
and MGT Mining One, Inc., a Delaware corporation (“Mining Sub”, and together with Company, “Borrower”),
pursuant to that certain Secured Convertible Promissory Note made by Borrower in favor of Lender on May 18, 2017 (the “Note”),
that Lender elects to redeem a portion of the Note in Redemption Conversion Shares or in cash as set forth below. In the event
of a conflict between this Redemption Notice and the Note, the Note shall govern, or, in the alternative, at the election of Lender
in its sole discretion, Lender may provide a new form of Redemption Notice to conform to the Note. Capitalized terms used in this
notice without definition shall have the meanings given to them in the Note.

 

REDEMPTION
INFORMATION 

 

	 	A.	Redemption
    Date: ____________, 201_
	 	 	 
	 	B.	Redemption
    Amount: ____________
	 	 	 
	 	C.	Portion
    of Redemption Amount to be Paid in Cash: ____________
	 	 	 
	 	D.	Portion
    of Redemption Amount to be Converted into Common Stock: ____________ (B minus C)
	 	 	 
	 	E.	Redemption
    Conversion Price: _______________ (lower of (i) Lender Conversion Price in effect and (ii) Market Price as of Redemption Date)
	 	 	 
	 	F.	Redemption
    Conversion Shares: _______________ (D divided by E)
	 	 	 
	 	G.	Remaining
    Outstanding Balance of Note: ____________ * 

 

*
Subject to adjustments for corrections, defaults, interest and other adjustments permitted by the Transaction Documents (as defined
in the Purchase Agreement), the terms of which shall control in the event of any dispute between the terms of this Redemption
Notice and such Transaction Documents.

 

	2.	EQUITY
    CONDITIONS CERTIFICATION (Section to be completed by Company)

 

	 	A.	Market
    Capitalization:________________

 

(Check
One)

 

	 	B.	_________
    Company herby certifies that no Equity Conditions Failure exists as of the applicable True-Up Date.

 

Exhibit
B to Secured Convertible Promissory Note, Page 1

 

    	 	 	 

    	 

    

 

	 	C.	_________
    Company hereby gives notice that an Equity Conditions Failure has occurred and requests a waiver from Lender with respect
    thereto. The Equity Conditions Failure is as follows:

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

 

Please
transfer the Redemption Conversion Shares, if applicable, electronically (via DWAC) to the following account:

 

	Broker:
    	 	 	Address:	 
	DTC#:
    	 	 	 	 
	Account
    #: 	 	 	 	 
	Account
    Name: 	 	 	 	 

 

To
the extent the Redemption Conversion Shares are not able to be delivered to Lender electronically via the DWAC system, deliver
all such certificated shares to Lender via reputable overnight courier after receipt of this Redemption Conversion Notice (by
facsimile transmission or otherwise) to:

_____________________________________

_____________________________________

_____________________________________

 

Sincerely,

 

	Lender:	 	 	 
	 	 	 	 	 
	Iliad Research and Trading, L.P.	 
	 	 	 	 	 
	By:
    	Iliad Management, LLC, its General Partner	 
	 	 	 	 	 
	 	By:	Fife Trading, Inc., its Manager	 
	 	 	 	 	 
	 	 	By:
    	 	 
	 	 		John
    M. Fife, President	 

 

Exhibit
B to Secured Convertible Promissory Note, Page 2

 

    	 	 	 

    	 

    

 

EXHIBIT
C

 

Iliad
Research and Trading, L.P.

303
East Wacker Drive, Suite 1040

Chicago,
Illinois 60601

 

	MGT
    Capital Investments, Inc.	Date:
    __________________

 

Attn:
Robert Ladd, CEO

512
S. Magnum Street, Suite 408

Durham,
North Carolina 27701

 

TRUE-UP
NOTICE

 

The
above-captioned Lender hereby gives notice to MGT Capital Investments, Inc., a Delaware corporation (“Company”),
and MGT Mining One, Inc., a Delaware corporation (“Mining Sub”, and together with Company, “Borrower”),
pursuant to that certain Secured Convertible Promissory Note made by Borrower in favor of Lender on May 18, 2017 (the “Note”),
of True-Up Shares related to _____________, 201_ (the “Redemption Date”). In the event of a conflict between
this True-Up Notice and the Note, the Note shall govern, or, in the alternative, at the election of Lender in its sole discretion,
Lender may provide a new form of True-Up Notice to conform to the Note. Capitalized terms used in this notice without definition
shall have the meanings given to them in the Note.

 

TRUE-UP
SHARES

 

	 	A.	Redemption
    Date: ____________, 201_
	 	 	 
	 	B.	True-Up
    Date: ____________, 201_
	 	 	 
	 	C.	Portion
    of Redemption Amount Converted into Common Stock: _____________
	 	 	 
	 	D.	True-Up
    Conversion Price: _______________ (lower of (i) Lender Conversion Price in effect and (ii) Market Price as of True-Up Date)
	 	 	 
	 	E.	True-Up
    Shares: _______________ (C divided by D)
	 	 	 
	 	F.	Redemption
    Conversion Shares Delivered: ________________
	 	 	 
	 	G.	True-Up
    Shares to be Delivered: ________________ (only applicable if E minus F is greater than zero)

 

Please
transfer the True-Up Shares electronically (via DWAC) to the following account:

 

	Broker:
    	 	 	Address:	 
	DTC#:
    	 	 	 	 
	Account
    #: 	 	 	 	 
	Account
    Name: 	 	 	 	 

 

Exhibit
D to Secured Convertible Promissory Note, Page 1

 

    	 	 	 

    	 

    

 

To
the extent the True-Up Shares are not able to be delivered to Lender electronically via the DWAC system, deliver all such certificated
shares to Lender via reputable overnight courier after receipt of this True-Up Notice (by facsimile transmission or otherwise)
to:

_____________________________________

_____________________________________

_____________________________________

 

Sincerely,

 

	Lender:	 
	 	 	 	 	 
	Iliad Research and Trading, L.P.	 
	 	 	 	 	 
	By: Iliad Management, LLC, its General Partner	 
	 	 	 	 	 
	 	By:	Fife Trading, Inc., its Manager	 
	 	 	 	 	 
	 	 	By:
    	 	 
	 	 		John
    M. Fife, President	 

 

Exhibit
D to Secured Convertible Promissory Note, Page 2

 

    	 	 	 

    	 

    

 

EXHIBIT
D

 

Iliad
Research and Trading, L.P.

303
East Wacker Drive, Suite 1040

Chicago,
Illinois 60601

 

	MGT
    Capital Investments, Inc.	Date:
    __________________

 

Attn:
Robert Ladd, CEO

512
S. Magnum Street, Suite 408

Durham,
North Carolina 27701

 

LENDER
CONVERSION NOTICE

 

The
above-captioned Lender hereby gives notice to MGT Capital Investments, Inc., a Delaware corporation (“Company”),
and MGT Mining One, Inc., a Delaware corporation (“Mining Sub”, and together with Company, “Borrower”),
pursuant to that certain Secured Convertible Promissory Note made by Borrower in favor of Lender on May 18, 2017 (the “Note”),
that Lender elects to convert the portion of the Note balance set forth below into fully paid and non-assessable shares of Common
Stock of Company as of the date of conversion specified below. Said conversion shall be based on the Lender Conversion Price set
forth below. In the event of a conflict between this Lender Conversion Notice and the Note, the Note shall govern, or, in the
alternative, at the election of Lender in its sole discretion, Lender may provide a new form of Lender Conversion Notice to conform
to the Note. Capitalized terms used in this notice without definition shall have the meanings given to them in the Note.

 

	 	A.	Date
    of Conversion:  ____________
	 	 	 
	 	B.	Lender
    Conversion #: ____________
	 	 	 
	 	C.	Conversion
    Amount: ____________
	 	 	 
	 	D.	Par
    Value Adjustment Amount: _______________ 
	 	 	 
	 	E.	Lender
    Conversion Price: _______________ (Par Value)
	 	 	 
	 	F.	Lender
    Conversion Shares: _______________ (C divided by E)
	 	 	 
	 	G.	Remaining
    Outstanding Balance of Note: ____________* 

 

*
Subject to adjustments for corrections, defaults, interest and other adjustments permitted by the Transaction Documents (as defined
in the Purchase Agreement), the terms of which shall control in the event of any dispute between the terms of this Lender Conversion
Notice and such Transaction Documents.

 

Please
transfer the Lender Conversion Shares electronically (via DWAC) to the following account:

 

	Broker:
    	 	 	Address:	 
	DTC#:
    	 	 	 	 
	Account
    #: 	 	 	 	 
	Account
    Name: 	 	 	 	 

 

To
the extent the Lender Conversion Shares are not able to be delivered to Lender electronically via the DWAC system, deliver all
such certificated shares to Lender via reputable overnight courier after receipt of this Lender Conversion Notice (by facsimile
transmission or otherwise) to:

_____________________________________

_____________________________________

_____________________________________

 

Exhibit
D to Secured Convertible Promissory Note, Page 3

 

    	 	 	 

    	 

    

 

The
Par Value Adjustment Amount must be paid in cash within one (1) Trading Day of your receipt of this Conversion Notice.

 

Sincerely,

 

	Lender:	 
	 	 	 	 	 
	Iliad Research and Trading, L.P.	 
	 	 	 	 	 
	By:
    	Iliad Management, LLC, its General Partner	 
	 	 	 	 	 
	 	By:	Fife Trading, Inc., its Manager	 
	 	 	 	 	 
	 	 	By:
    	 	 
	 	 	 	John M. Fife, President 	 

 

Exhibit
D to Secured Convertible Promissory Note, Page 4

 

    	 	 	 

    	 

    

 

EXHIBIT
E

 

Iliad
Research and Trading, L.P.

303
East Wacker Drive, Suite 1040

Chicago,
Illinois 60601

 

	MGT
    Capital Investments, Inc.	Date:
    __________________

 

Attn:
Robert Ladd, CEO

512
S. Magnum Street, Suite 408

Durham,
North Carolina 27701

 

REDEMPTION
NOTICE

 

The
above-captioned Lender hereby gives notice to MGT Capital Investments, Inc., a Delaware corporation (“Company”),
and MGT Mining One, Inc., a Delaware corporation (“Mining Sub”, and together with Company, “Borrower”),
pursuant to that certain Secured Convertible Promissory Note made by Borrower in favor of Lender on May 18, 2017 (the “Note”),
that Lender elects to redeem the portion of the Note balance set forth below in either cash or fully paid and non-assessable shares
of Common Stock of Company, as set forth below. By its signature below, Borrower makes the elections and certifications set forth
below. In the event of a conflict between this Redemption Notice and the Note, the Note shall govern, or, in the alternative,
at the election of Lender in its sole discretion, Lender may provide a new form of Redemption Notice to conform to the Note. Capitalized
terms used in this notice without definition shall have the meanings given to them in the Note.

 

REDEMPTION
CONVERSION AND CERTIFICATIONS

AS
OF THE REDEMPTION DATE

 

	A.	REDEMPTION
    CONVERSION

 

	 	A.	Redemption
    Date: ____________, 201_
	 	 	 
	 	B.	Redemption
    Amount: ____________
	 	 	 
	 	C.	Portion
    of Redemption Amount to be Paid in Cash: ____________
	 	 	 
	 	D.	Portion
    of Redemption Amount to be Converted into Common Stock: ____________ (B minus C)
	 	 	 
	 	E.	Par
    Value Adjustment Amount: ______________
	 	 	 
	 	F.	Redemption
    Conversion Price: _______________ (Par Value)
	 	 	 
	 	G.	Redemption
    Conversion Shares: _______________ (D divided by F)
	 	 	 
	 	H.	Remaining
    Outstanding Balance of Note: ____________ *

 

*
Subject to adjustments for corrections, defaults, interest and other adjustments permitted by the Transaction Documents (as defined
in the Purchase Agreement), the terms of which shall control in the event of any dispute between the terms of this Redemption
Notice and such Transaction Documents.

 

	B.	EQUITY
    CONDITIONS CERTIFICATION

 

_________
Company hereby gives notice that an Equity Conditions Failure has occurred and requests a waiver from Lender with respect thereto.
The Equity Conditions Failure is as follows:

 

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

 

Exhibit
E to Secured Convertible Promissory Note, Page 1

 

    	 	 	 

    	 

    

 

The
Par Value Adjustment Amount must be paid in cash within one (1) Trading Day of your receipt of this Redemption Notice.

 

Sincerely,

 

	Lender:	 
	 	 	 	 	 
	Iliad Research and Trading, L.P.	 
	 	 	 	 	 
	By:	Iliad Management, LLC, its General Partner	 
	 	 	 	 	 
	 	By:	Fife Trading, Inc., its Manager	 
	 	 	 	 	 
	 	 	By:
    	 	 
	 	 		John
    M. Fife, President	 

 

ACKNOWLEDGED
AND CERTIFIED BY:

 

Borrower:

 

MGT
Capital Investments, Inc.

 

	By:
    	 	 
	 	 	 
	Name:
    	 	 
	 	 	 
	Title:
    	 	 

 

MGT
Mining One, Inc.

 

	By:
    	 	 
	 	 	 
	Name:
    	 	 
	 	 	 
	Title:
    	 	 

 

Exhibit
E to Secured Convertible Promissory Note, Page 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}]]