Document:

Exhibit 4.1

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of April 15, 2021, by and among Applied Blockchain, Inc.,
a Nevada corporation (together with any successor entity thereto, the “Company”), and B. Riley Securities, Inc., a
Delaware corporation, as the placement agent (“B. Riley”), for the benefit of B. Riley and the Investors (as defined
below).

 

WHEREAS, in connection
with the Placement Agent Agreement by and between the Company and B. Riley dated as of April 7, 2021 (the “Placement Agent Agreement”),
the Company has agreed, upon the terms and subject to the conditions set forth in the Placement Agent Agreement and subscription agreements
with each of the Investors, to issue and sell to each Investor shares of its Series C Convertible Redeemable Preferred Stock, $0.001 par
value per share (the “Series C Preferred Stock”); and

 

WHEREAS, in order to
induce B. Riley to enter into the Placement Agent Agreement, the Company has agreed to provide the registration rights provided for in
this Agreement to the Holders. The execution of this Agreement is a condition to the closing of the transactions contemplated by the Placement
Agent Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and B. Riley hereby agree as follows:

 

1.             Definitions.
Capitalized terms used and not otherwise defined herein that are defined in the Placement Agent Agreement will have the respective
meanings given such terms in the Placement Agent Agreement. As used in this Agreement, the following terms have the respective
meanings set forth in this Section 1 and other terms are defined throughout this Agreement:

 

“Business Day”
means a day other than Saturday, Sunday or any other day which commercial banks in New York, New York are authorized or required by
law to close.

“Commission” means the U.S.
Securities and Exchange Commission.

 

“Common Stock”
means the common stock, par value $0.001 per share, of the Company.

 

“Definitive Instrument” has
the meaning given to it in Section 2(c).

 

“Effective Date”
means, as to a Registration Statement, the date on which such Registration Statement is first declared effective by the Commission.

“Effectiveness Deadline”
means the date that is eight (8) months following the Initial Closing.

 

“Effectiveness
Period” means, as to any Registration Statement required to be filed pursuant to this Agreement, the period commencing on
the Effective Date of such Registration Statement and ending on (a) the date that all of the Registrable Securities covered by such
Registration Statement have been publicly sold by the Holders of the Registrable Securities included therein, or (b) such time as
all of the Registrable Securities covered by such Registration Statement may be sold by the Holders without restriction pursuant to
Rule 144 as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable
to the Company's transfer agent and the affected Holders.

 

    

     

    

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

“Filing Deadline”
means the date that is four (4) months following the Initial Closing.

 

“FINRA” means the Financial
Industry Regulatory Authority, Inc.

 

“Holder” or
“Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities and, if other
than an Investor, a Person to whom the rights hereunder have been properly assigned pursuant to Section 7 hereof.

 

“Investor” means
the purchasers of the Series C Preferred Stock pursuant to subscription agreements by and between the Company and such investor, dated
on or about the date hereof.

 

“Losses” has the meaning given to it in
Section 5(a).

 

“New York Courts”
means the state and federal courts sitting in the City of New York, Borough of Manhattan, State of New York.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under
the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including
post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 

“Registrable
Securities” means: (i) any shares of Common Stock issuable upon conversion of the Series C Preferred Stock issued to
Investors pursuant to the applicable subscription agreement; and (ii) any securities issued or issuable upon any stock split,
dividend or other distribution, recapitalization or similar event, or any price adjustment as a result of such stock splits, reverse
stock splits or similar events with respect to any of the securities referenced in clause (i) above, including any PIK Dividends (as
defined in the Company’s Articles of Incorporation). Notwithstanding the foregoing, a security shall cease to be a Registrable
Security for purposes of this Agreement from and after such time as the Holder of such security may resell such security without
restriction under Rule 144, as determined by the counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Company’s transfer agent and the affected Holders.

 

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“Registration Statement”
means any registration statement of the Company filed or confidentially submitted with the Commission under the Securities Act that
covers the resale of Registrable Securities pursuant to the provisions of this Agreement, including the Prospectus, amendments and supplements
to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto and all material incorporated
by reference or deemed to be incorporated by reference, if any, in such registration statement.

 

“Required Holders”
means the Holders of a majority of the outstanding shares of Series C Preferred Stock or, if the Series C Preferred Stock has been
converted into Common Stock, the Holders of a majority of the Registrable Securities, or, if the Series C Preferred Stock has been converted
in part but not in whole, the Holders of a majority of the Registrable Securities and the Registrable Securities underlying the outstanding
Series C Preferred Stock on an as converted basis, in the aggregate.

 

“Rule 144” means
Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule
or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 415” means
Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule
or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 424” means
Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule
or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Significant Transaction Event” has the
meaning given to it in Section 2(c).

 

“Trading Market”
means any of the New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq
Capital Market, or any other national securities exchange, or OTCQB or OTCQX (or any successors to any of the foregoing).

 

2.             Registration.

 

(a)       On
or prior to the applicable Filing Deadline, the Company shall prepare and file or confidentially submit with the Commission a
Registration Statement covering the resale of all Registrable Securities not already covered by an existing and effective
Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415 (a “Resale Shelf Registration
Statement”). The Resale Shelf Registration Statement shall be filed on Form S-1 (or on such other form appropriate for
such purpose) and contain (except if otherwise required pursuant to written comments received from the Commission upon a review of
such Resale Shelf Registration Statement, other than as to the characterization of any Holder as an underwriter, which shall not
occur unless such characterization is consistent with written information provided by the Holder in the Selling Holder
Questionnaire) a “Plan of Distribution” in substantially the form attached hereto as Annex A. The Company shall
cause the Resale Shelf Registration Statement to be declared effective under the Securities Act as soon as reasonably practicable
but, in any event, no later than the Effectiveness Deadline, and shall use its reasonable best efforts to keep each such Resale
Shelf Registration Statement continuously effective during its entire Effectiveness Period. By 5:00 p.m. (New York City time) on the
Business Day immediately following the Effective Date of the Resale Shelf Registration Statement, the Company shall file with the
Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to
such Resale Shelf Registration Statement (whether or not such filing is technically required under such Rule).

 

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(b)              
Promptly following any date on which the Company becomes eligible to use a registration statement on Form S-3 to register Registrable
Securities for resale, the Company shall file a Registration Statement on Form S-3 covering all securities that are then deemed Registrable
Securities (or a post-effective amendment on Form S-3 to the then effective Registration Statement) for an offering to be made on a continuous
basis pursuant to Rule 415 (an “S-3 Resale Shelf Registration Statement”) and shall cause such S-3 Resale Shelf Registration
Statement to be filed as soon as commercially reasonable and declared effective under the Securities Act as soon as reasonably possible
thereafter. Such S-3 Resale Shelf Registration Statement shall contain (except if otherwise required pursuant to written comments received
from the Commission upon a review of such S-3 Resale Shelf Registration Statement, other than as to the characterization of any Holder
as an underwriter, which shall not occur unless such characterization is consistent with written information provided by the Holder in
the Selling Holder Questionnaire) a “Plan of Distribution” in substantially the form attached hereto as Annex A. The
Company shall use its commercially reasonable efforts to keep such S-3 Resale Shelf Registration Statement continuously effective under
the Securities Act during the entire Effectiveness Period. By 5:00 p.m. (New York City time) on the Business Day immediately following
the Effective Date of such S-3 Resale Shelf Registration Statement, the Company shall file with the Commission in accordance with Rule
424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such S-3 Resale Shelf Registration Statement
(whether or not such filing is technically required under such Rule).

 

(c)                If:
(i) the Resale Shelf Registration Statement is not filed on or prior to its Filing Deadline covering the Registrable Securities
required under this Agreement to be included therein pursuant to Section 2(a), or (ii) the Resale Shelf Registration
Statement is not declared effective by the Commission on or prior to the Effectiveness Deadline and the Registrable Securities are
not listed on a Trading Market (any such failure or breach being referred to as an “Event,” and the date on which
such Event occurs being referred to as “Event Date”), then in addition to any other rights the Investors may have
hereunder or under applicable law, on each such Event Date PIK Dividends (as defined in the Company’s Articles of
Incorporation) shall accrue and be payable on the outstanding shares of Series C Preferred Stock in accordance with and subject to
the terms and conditions of the Company’s Articles of Incorporation, until the applicable Event is cured. Notwithstanding the
foregoing, (i) if within six (6) months of the Initial Closing, the Company enters into a binding definitive agreement or binding
instrument relating to a Significant Transaction Event (a “Definitive Instrument”), then the Company shall have
no obligation to pay any PIK Dividends accrued or payable through such date and any PIK Dividends that have accrued prior to such
date shall be cancelled, and (ii) if the Company has entered into a Definitive Instrument within six (6) months of the Initial
Closing and has consummated the Significant Transaction Event within ten (10) months of the Initial Closing, then the Company shall
have no obligation to pay any PIK Dividends accrued or payable through such date and any PIK Dividends accrued prior to such date
shall be cancelled. A “Significant Transaction Event” means the date that the Company enters into a Definitive
Instrument, as applicable, with a third party relating to a merger, share exchange, sale of all or substantially all of the assets
or shares of the Company or other business combination, restructuring or change of control transaction, including any such
transaction intended to result in the Company becoming subject to the reporting requirements of Section 13 of 15(d) of the Exchange
Act (or becoming a voluntary filer under the Exchange Act), a business combination intended to increase the number of shareholders
of the Company to facilitate listing on a Trading Market, a business combination with a special purpose acquisition company, or a
business combination with a company that is listed on a Trading Market.

 

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(d)               Each
Holder agrees to furnish to the Company a completed Questionnaire in the form attached to this Agreement as Annex B (a “Selling
Holder Questionnaire”). The Company shall not be required to include the Registrable Securities of a Holder in any Registration
Statement and shall not be required to pay any PIK Dividends under Section 2(c) and the Company’s Articles of Incorporation
to any Holder who fails to furnish to the Company a fully completed Selling Holder Questionnaire at least two Business Days prior to the
Filing Deadline (subject to the requirements set forth in Section 3(a)).

 

3.             Registration
Procedures. In connection with the Company’s registration obligations hereunder:

 

(a)               
The Company shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto in which the “Selling
Stockholders” section thereof materially differs from the disclosure received from a Holder in its Selling Holder Questionnaire
(as amended or supplemented). The Company shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto
in which it (i) characterizes any Holder as an underwriter, unless such characterization is consistent with written information provided
by the Holder in the Selling Holder Questionnaire, (ii) excludes a particular Holder due to such Holder refusing to be named as an underwriter,
unless so required pursuant to written comments received from the Commission, or (iii) reduces the number of Registrable Securities being
registered on behalf of a Holder without such Holder’s express written authorization. The Company shall also ensure that each Registration
Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the
case of prospectuses, in the light of the circumstances in which they were made) not misleading.

 

(b)              
The Company shall (i) prepare and file with the Commission such amendments, including post-effective amendments, to each Registration
Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective
as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus
to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424,
(iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to each Registration Statement
or any amendment thereto, and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with
respect to the Registration Statement(s) and the disposition of all Registrable Securities covered by each Registration Statement.

 

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(c)               
 The Company shall notify B. Riley and the Holders as promptly as reasonably possible (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to a Registration Statement is proposed to be filed; and (B) with respect to each Registration
Statement or any post-effective amendment, when the same has become effective; (ii) of the issuance by the Commission of any stop order
suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings
for that purpose; (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding
for such purpose; and (iv) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement,
Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.

 

(d)              
The Company shall use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and
to notify the Holders of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat
of any proceeding for such purpose.

 

(e)               
The Company shall promptly deliver to the Holders, without charge, as many copies of each Prospectus or Prospectuses (including
each form of prospectus) and each amendment or supplement thereto as the Holders may reasonably request. The Company hereby consents to
the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and
sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

 

(f)                
Prior to any public offering of Registrable Securities, the Company shall register or qualify such Registrable Securities for offer
and sale under the securities or Blue Sky laws of all jurisdictions within the United States as any Holder may request, to keep each such
registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statements;
provided, however, in connection with any such registration or qualification, the Company shall not be required to (i) qualify
to do business in any jurisdiction where the Company would not otherwise be required to qualify, (ii) subject itself to general taxation
in any such jurisdiction, (iii) file a general consent to service of process in any jurisdiction, or (iv) make any change to the Company’s
articles of incorporation or bylaws.

 

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(g)               Except
to the extent the Registrable Securities are eligible to be transferred in book-entry form through the facilities of the Depository
Trust Company or the book-entry system of the Company’s transfer agent, the Company shall cooperate with the Holders to
facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee
pursuant to the Registration Statement(s). Such book-entry securities or certificates, as applicable, shall be free, to the extent
permitted by the Placement Agent Agreement and by applicable federal securities laws, of all restrictive legends, and to enable such
Registrable Securities to be in such denominations and registered in such names as any such Holders may request.

(h)              
As promptly as reasonably possible upon the occurrence of any event contemplated by Section 3(c)(iv), the Company shall
prepare a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document
so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

( )               
For so long as the Registrable Securities that have been registered under a Registration Statement remain Registrable Securities,
the Company shall notify the Holders thereof in writing of the happening of any event, as promptly as reasonably practicable after becoming
aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material,
nonpublic information), and shall promptly prepare a supplement or amendment to such Registration Statement to correct such untrue statement
or omission. The Company shall also notify the Holders of Registrable Securities that have been registered under a Registration Statement
in writing as promptly as reasonably possible when a prospectus or any prospectus supplement or post-effective amendment has been filed,
and when the Registration Statement or any post-effective amendment relating to such Registrable Securities has become effective.

 

(a)              
If any Holder is required under applicable securities laws to be described in the Registration Statement as an underwriter, at
the reasonable request of such Holder, the Company shall furnish to such Holder, on the date of the effectiveness of the Registration
Statement and thereafter from time to time on such dates as a Holder may reasonably request: (i) a letter, dated such date, from the Company’s
independent certified public accountants in form and substance as is customarily given by independent certified public accountants to
underwriters in an underwritten public offering, addressed to the Holders, and (ii) an opinion, dated as of such date, of counsel representing
the Company for purposes of such Registration Statement, in form, scope and substance reasonably acceptable to such counsel and as is
customarily given in an underwritten public offering, addressed to the Holders.

 

(b)               Other
than the information regarding a Holder provided by such Holder to the Company for inclusion in a Registration Statement, the
Company shall hold in confidence and not make any disclosure of information concerning a Holder provided to the Company unless: (i)
disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is
ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or
(iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement. The
Company agrees that it shall, upon learning that disclosure of such information concerning a Holder is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt written notice to such Holder and allow such Holder,
at the Holder’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such
information.

 

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(l)                 The
Company shall use its commercially reasonable efforts to cause all of the Registrable Securities covered by a Registration Statement
to be listed on each Trading Market on which securities of the same class or series issued by the Company are then listed, if any, if
the listing of such Registrable Securities is then permitted under the rules of such Trading Market. The Company shall pay all fees and
expenses in connection with satisfying its obligation under this Section 3(l).

 

(m)               The Company shall cooperate with the Holders who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates or book-entry securities (not bearing any restrictive legend to the extent permitted
by the subscription agreements with the Investors and the federal securities laws) representing the Registrable Securities to be offered
pursuant to a Registration Statement and enable such certificates or book-entry securities to be in such denominations or amounts, as
the case may be, as the Holders may reasonably request and registered in such names as the Holders may request.

 

(n)         
If requested by a Holder and to the extent legally required for the Holder to offer and sell Registrable Securities, the Company
shall as soon as practicable: (i) incorporate in a prospectus supplement or post-effective amendment such information as a Holder reasonably
requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information
with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms
of the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement
or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment;
and (iii) supplement or make amendments to any Registration Statement if reasonably requested by a Holder holding any Registrable Securities.

 

(o)         
The Company’s obligation to file the Resale Shelf Registration Statement pursuant to Section 2(a) shall not be affected by
the filing or effectiveness of a registration statement on Form S-1 or such other form under the Securities Act providing for the initial
public offering of the Common Stock (the “IPO Registration Statement”). The Company will not permit the IPO Registration
Statement to go effective prior to the effectiveness of the Resale Shelf Registration Statement.

 

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4.             Registration
Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without
limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock is
then listed or traded for trading, (B) with respect to filings with FINRA by any underwriter’s counsel for compensation review
pursuant to FINRA Rule 5110, and (C) in compliance with applicable state securities or Blue Sky laws), (ii) printing expenses
(including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the
printing of prospectuses is reasonably requested by a Holder), (iii) messenger, telephone and delivery expenses, (iv) fees and
disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi)
fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated
by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in
connection with the listing of the Registrable Securities on any Trading Market as required hereunder. In no event shall the Company
be responsible for any broker or similar commissions incurred by any Holder or, except to the extent provided for in the Transaction
Agreements, any legal fees or other cost of the Holders in connection with this Agreement.

 

5.             Indemnification.

 

(a)              
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, agents, investment advisors, partners, members and employees of each of them, each Person
who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers,
directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any
and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and reasonable attorneys'
fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to any untrue or alleged untrue
statement of a material fact contained in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement
thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that
such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such
Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution
of Registrable Securities and was furnished in writing to the Company by or on behalf of such Holder expressly for use in the Registration
Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto. The Company shall notify the Holders
promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated
by this Agreement.

 

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(b)               Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by
applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon any untrue statement of a
material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement
thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to
make the statements therein not misleading to the extent, but only to the extent that, such untrue statements or omissions are based
solely upon information regarding such Holder furnished in writing to the Company by or on behalf of such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and furnished in writing by or on behalf of such Holder expressly for use in the Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto. In no event shall the liability of any selling
Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the
Registrable Securities giving rise to such indemnification obligation.

 

(c)       Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity
is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof,
including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses
incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent
that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further
review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.

 

An Indemnified Party shall have
the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any
impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised
by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying
Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel
shall be at the expense of the Indemnifying Party); provided, that, the Indemnifying Party shall pay for no more than two separate
sets of counsel for all Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected
without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party,
unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter
of such Proceeding.

 

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All fees and expenses
of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing
to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within
ten trading days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified
Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to
undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not
entitled to indemnification hereunder).

 

(d)             Contribution.
If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by reason of public policy
or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable
by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying
Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other
relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference
to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified
Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement
or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set
forth in Section 5(c), any reasonable attorneys' or other reasonable fees or expenses incurred by such party in connection with
any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this
Section was available to such party in accordance with its terms.

 

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation
or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 5(d), (i) no Person involved in the sale of Registrable Securities which
Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale
shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation;
and (ii) no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually
received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

 

The indemnity and
contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified
Parties.

 

6.         Reports
Under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 or any other similar rule or
regulation of the SEC that may at any time permit the Holders to sell Registrable Securities of the Company to the public without
registration, the Company agrees, commencing with the date that the Company becomes subject to periodic reporting requirements under
Section 13(a) or Section 15(d) of the Exchange Act and continuing for so long as Registrable Securities are outstanding and held by
the Holders, to:

 

    11

     

    

 

(a)             
make and keep public information available, as those terms are understood, defined and required in Rule 144;

 

(b)             
file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act so long as the Company is and remains subject to such requirements and the filing of such reports and other documents is required
for the applicable provisions of Rule 144; and

 

(c)         
furnish to each Holder so long as such Holder owns Registrable Securities, promptly upon request, such information as may be reasonably
and customarily requested to permit the Holders to sell such securities pursuant to Rule 144 without registration.

 

7.           Assignment of Registration Rights. The rights under this Agreement shall be automatically assignable by the Investors to
any permitted transferee of all or any portion of such Investor’s Registrable Securities if: (i) the Investor agrees in writing
with the transferee or assignee to assign such rights and such transferee agrees to be bound by the terms of this Agreement, and a copy
of such agreement is furnished to the Company within five (5) Business Days after such assignment; (ii) the Company is, within five (5)
Business Days after such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee,
and (b) the securities with respect to which such registration rights are being transferred or assigned; (iii) immediately following such
transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under the Securities Act
or applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of
this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein; and
(v) such transfer shall have been made in accordance with the applicable requirements of the Placement Agent Agreement.

 

8.           
Miscellaneous.

 

(a)               
Remedies. In the event of a breach by the Company, B. Riley or by a Holder, of any of their obligations under this Agreement,
each Holder, B. Riley or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company,
B. Riley and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in
respect of such breach, it shall waive the defense that a remedy at law would be adequate.

 

(b)              
Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities
Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

(c)                Discontinued
Disposition. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the
Company of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith discontinue
disposition of such Registrable Securities under the Registration Statement until such Holder’s receipt of the copies of the
supplemented Prospectus and/or amended Registration Statement or until it is advised in writing by the Company that the use of the
applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are
incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide
appropriate stop orders to enforce the provisions of this paragraph.

 

    12

     

    

 

(d)              
Piggy-Back Registrations. If at any time during the Effectiveness Period there is not an effective Registration Statement
covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than
on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued
solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other
employee benefit plans, then the Company shall send to each Holder written notice of such determination and, if within fifteen calendar
days after receipt of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement
all or any part of such Registrable Securities such holder requests to be registered, subject to customary underwriter cutbacks applicable
to all holders of registration rights and other customary conditions of, and documentation required by, the underwriters of such offering.

 

(e)               
Amendments and Waivers. Except as set forth otherwise herein, the provisions of this Agreement, including the provisions
of this sentence, may not be amended, modified or supplemented, and waivers or consents to or departures from the provisions hereof may
not be given, without the written consent of the Company and the Required Holders or, in the case of Section 2, the written consent
of the Company and the Required Holders but substituting eighty percent (80%) for the majority threshold in such case; provided, however,
that for purposes of this Section 8(e), Registrable Securities that are owned, directly or indirectly, by the Company or any of
its subsidiaries shall not be deemed to be outstanding. No amendment shall be deemed effective unless it applies uniformly to all Holders.
Notwithstanding the foregoing, a waiver or consent to or departure from the provisions hereof with respect to a matter that relates exclusively
to the rights of a Holder whose securities are being sold pursuant to a Registration Statement and that does not directly or indirectly
affect, impair, limit or compromise the rights of other Holders may be given by such Holder; provided that the provisions of this
sentence may not be amended, modified or supplemented except in accordance with the provisions of the first and second sentences of this
paragraph.

 

(f)                
Notices. All notices and other communications, provided for or permitted hereunder, shall be made in writing and delivered
by electronic mail (with receipt confirmed), overnight courier, registered or certified mail, return receipt requested, or by telegram:

 

		i.	if to a Holder, at the most current address given by the transfer agent and registrar of the Shares
to the Company;
	 	 	 

		ii.	if to the Company, shall be sufficient in all respects if delivered to the Company at the offices of the Company at
3811 Turtle Creek Blvd., Suite 2125, Dallas, Texas 75219, Attention: Wes Cummins; with a copy to Wick Phillips, 3131 McKinney Avenue,
Suite 500, Dallas, Texas 75204, Attention: Matthew Zucker; and

 

    13

     

    

 

		iii.	if to B. Riley, shall be sufficient in all respects if delivered or sent to B.
Riley Securities, Inc., 299 Park Avenue, New York, New York 10171, Attention: General Counsel; with a copy to Nelson Mullins Riley &
Scarborough LLP, 101 Constitution Avenue, NW, Suite 900, Washington, DC 20001, Attention: Jonathan H. Talcott.

 

(g)              
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each
of the parties hereto, including, without limitation and without the need for an express assignment or assumption, subsequent Holders.
The Company agrees that the Holders shall be third party beneficiaries to the agreements made hereunder by the parties hereto, and each
Holder shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect
its rights hereunder.

 

(h)              
Execution and Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any
signature is delivered by facsimile or email transmission, such signature shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile or email signature were the
original thereof.

 

(i)                Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to any principle or rule that
would require the application of the law of any other state. Each party agrees that all Proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective
affiliates, employees or agents) will be commenced in the New York Courts. Each party hereto hereby irrevocably submits to the
exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding, any
claim that it is not personally subject to the jurisdiction of any New York Court, or that such Proceeding has been commenced in an
improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process
being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any Proceeding arising out of or relating to this Agreement or
the transactions contemplated hereby. If either party shall commence a Proceeding to enforce any provisions of this Agreement, then
the prevailing party in such Proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such Proceeding.

 

    14

     

    

 

(j)                 Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

 

(k)               Entire Agreement. This Agreement, the Placement Agent Agreement, and the Right of First Refusal and Co-Sale Agreement (collectively,
the “Transaction Agreements”) and the instruments referenced herein and therein constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein and therein. This Agreement, the Placement Agent Agreement, and the Right of First Refusal
and Co-Sale Agreement and the instruments referenced herein and therein supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

 

(l)               
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable
efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed
the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal,
void or unenforceable.

 

(m)            
Registrable Securities Held by the Company or its Affiliates. Whenever the consent or approval of Holders of a specified
percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company, its subsidiaries or members of
management of the Company and the board of directors of the Company shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage.

 

(n)              
Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

(o)               Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder under this Agreement are several and not joint
with the obligations of any other Holder, and no Holder shall be responsible in any way for the performance of the obligations of
any other Holder under this Agreement. Nothing contained herein or in any Transaction Agreement, and no action taken by any Holder
pursuant thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Holders are in any way acting in concert or as a group with respect to such obligations or
the transactions contemplated by this Agreement or any other Transaction Agreement, or with respect to any Holder’s beneficial
ownership of its Registrable Securities. Each Holder acknowledges that no other Holder will be acting as agent of such Holder in
enforcing its rights under this Agreement. Each Holder shall be entitled to independently protect and enforce its rights, including
without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an
additional party in any Proceeding for such purpose. The Company acknowledges that each of the Holders has been provided with the
same Registration Rights Agreement for the purpose of closing a transaction with multiple Holders and not because it was required or
requested to do so by any Holder.

 

[Signature Page Follows]

 

    15

     

    

  

IN WITNESS
WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	APPLIED BLOCKCHAIN, INC.
	 	 
	 	By:	/s/ Wes Cummins
	 	 
	 	 	Name:	Wes Cummins
	 	 	Title:	CEO
	 	  
	 	B. RILEY SECURITIES, INC.
	 	  
	 	By:	 /s/Jimmy Baker
	 	 
	 	 	Name:	 Jimmy Baker
	 	 	Title:	EVP, Head of Capital Markets

 

    

     

    

 

Annex A

 

Plan of Distribution

 

The selling stockholders
and any of their pledgees, donees, transferees, assignees and successors-in-interest may, from time to time, sell any or all of their
shares of Common Stock on any stock exchange, market or trading facility on which the shares are traded or quoted or in private transactions.
These sales may be at fixed or negotiated prices. The selling stockholders may use any one or more of the following methods when selling
shares:

 

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits
Investors;
	 	 	 

		·	block trades in which the broker-dealer will attempt to sell the shares as agent
but may position and resell a portion of the block as principal to facilitate the transaction;
	 	 	 

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 

		·	an exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 

		·	privately negotiated transactions;
	 	 	 

		·	through the writing of options on the shares;
	 	 	 

		·	to cover short sales made after the date that this Registration Statement is declared
effective by the Commission;
	 	 	 

		·	broker-dealers may agree with the selling stockholders to sell a specified number
of such shares at a stipulated price per share; and
	 	 	 

		·	a combination of any such methods of sale.

 

The selling stockholders
may also sell shares under Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), or another
exemption, if available, rather than under this prospectus. The selling stockholders shall have the sole and absolute discretion not to
accept any purchase offer or make any sale of shares if it deems the purchase price to be unsatisfactory at any particular time.

 

The selling
stockholders or their respective pledgees, donees, transferees or other successors in interest, may also sell the shares directly to
market makers acting as principals and/or broker-dealers acting as agents for themselves or their customers. Such broker-dealers may
receive compensation in the form of discounts, concessions or commissions from the selling stockholders and/or the purchasers of
shares for whom such broker-dealers may act as agents or to whom they sell as principal or both, which compensation as to a
particular broker-dealer might be in excess of customary commissions. Market makers and block purchasers purchasing the shares will
do so for their own account and at their own risk. It is possible that a selling stockholder will attempt to sell shares of common
stock in block transactions to market makers or other purchasers at a price per share which may be below the then existing market
price. We cannot assure that all or any of the shares offered in this prospectus will be issued to, or sold by, the selling
stockholders. The selling stockholders and any brokers, dealers or agents, upon effecting the sale of any of the shares offered in
this prospectus, may be deemed to be “underwriters” as that term is defined under the Securities Act, the Exchange Act
and the rules and regulations of such acts. In such event, any commissions received by such broker-dealers or agents and any profit
on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities
Act.

 

    

     

    

 

We are required
to pay all fees and expenses incident to the registration of the shares, including fees and disbursements of counsel to the selling stockholders,
but excluding brokerage commissions or underwriter discounts.

 

The selling stockholders,
alternatively, may sell all or any part of the shares offered in this prospectus through an underwriter. The selling stockholders have
not entered into any agreement with a prospective underwriter and there is no assurance that any such agreement will be entered into.

 

The selling stockholders
may pledge their shares to their brokers under the margin provisions of customer agreements. If a selling stockholder defaults on a margin
loan, the broker may, from time to time, offer and sell the pledged shares. The selling stockholders and any other persons participating
in the sale or distribution of the shares will be subject to applicable provisions of the Exchange Act, and the rules and regulations
under such act, including, without limitation, Regulation M. These provisions may restrict certain activities of, and limit the timing
of purchases and sales of any of the shares by, the selling stockholders or any other such person. In the event that any of the selling
stockholders are deemed an affiliated purchaser or distribution participant within the meaning of Regulation M, then the selling stockholders
will not be permitted to engage in short sales of common stock. Furthermore, under Regulation M, persons engaged in a distribution of
securities are prohibited from simultaneously engaging in market making and certain other activities with respect to such securities for
a specified period of time prior to the commencement of such distributions, subject to specified exceptions or exemptions. In addition,
if a short sale is deemed to be a stabilizing activity, then the selling stockholders will not be permitted to engage in a short sale
of our common stock. All of these limitations may affect the marketability of the shares.

 

If a selling stockholder
notifies us that it has a material arrangement with a broker-dealer for the resale of the common stock, then we would be required to amend
the registration statement of which this prospectus is a part, and file a prospectus supplement to describe the agreements between the
selling stockholder and the broker-dealer.

 

    Annex A-2

     

    

 

Annex B

 

Selling Securityholder Notice and
Questionnaire

 

The undersigned beneficial owner of common
stock (the “Common Stock”), of Applied Blockchain, Inc., a Nevada corporation (the “Company”), understands
that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”) a Registration
Statement for the registration and resale of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement,
dated as of April 12, 2021 (the “Registration Rights Agreement”), among the Company and the Investors named therein.
A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below. All capitalized
terms used and not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

 

The undersigned hereby provides the following information
to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

1.              Name.

 

		(a)	Full Legal Name of Selling Securityholder:
	 	 	 

 

		(b)	Full Legal Name of Registered Holder
(if not the same as (a) above) through which Registrable Securities Listed in Item 3 below are held:
	 	 	 

 

		(c)	Full Legal Name
of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of
the securities covered by the questionnaire):
	 	 	 

 

2. Address for Notices to Selling Securityholder:

 

Telephone:

 

Address:

 

Email:

 

Contact Person:

 

    Annex B-1

     

    

 

3. Beneficial Ownership of Registrable Securities:

 

Type and Amount of Registrable Securities beneficially owned:

 

4. Broker-Dealer Status:

 

		(a)	Are you a broker-dealer?

 

	Yes  ̈	 	No  ̈

 

Note: If yes, the Commission’s
staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

		(b)	Are you an affiliate of a broker-dealer?
	 	 	 

	Yes  ̈	 	No  ̈
	 	 	 

		(c)	If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable
Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no
agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

	Yes  ̈	 	No  ̈

 

Note: If no, the Commission’s
staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

5. Beneficial Ownership of
Other Securities of the Company Owned by the Selling Securityholder.

 

Except as set forth below in
this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities
listed above in Item 3.

 

Type and Amount of Other Securities beneficially owned
by the Selling Securityholder:

 

 

 

    Annex B-2

     

    

 

6. Relationships with the Company:

 

Except as set forth below, neither
the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities
of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or
affiliates) during the past three years.

 

State any exceptions here:

 

7.   
The Company has advised each Selling Securityholder that it is the view of the Commission that it may not use shares registered
on the Registration Statement to cover short sales of Common Stock made prior to the date on which the Registration Statement is declared
effective by the Commission, in accordance with SEC Division of Corporation Finance Compliance & Disclosure Interpretations, Securities
Act Sections, §239.10. If a Selling Securityholder uses the prospectus for any sale of the Common Stock, it will be subject to the
prospectus delivery requirements of the Securities Act. The Selling Securityholders will be responsible to comply with the applicable
provisions of the Securities Act and Exchange Act, and the rules and regulations thereunder promulgated, including, without limitation,
Regulation M, as applicable to such Selling Securityholders in connection with resales of their respective shares under the Registration
Statement.

 

The undersigned agrees to promptly notify
the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof and prior to
the Effective Date for the Registration Statement.

 

Certain legal consequences arise from being
named as a Selling Securityholder in the Registration Statement and related prospectus. Accordingly, the undersigned is advised to consult
their own securities law counsel regarding the consequence of being named or not being named as a Selling Securityholder in the Registration
Statement and the related prospectus.

 

By signing below, the undersigned consents
to the disclosure of the information contained herein in its answers to Items 1 through 6 and the inclusion of such information in the
Registration Statement and the related prospectus. The undersigned understands that such information will be relied upon by the Company
in connection with the preparation or amendment of the Registration Statement and the related prospectus. The undersigned hereby elects
to include the Registrable Securities owned by it and listed above in Item 3 (unless otherwise specified in Item 3) in the Registration
Statement.

 

    Annex B-3

     

    

 

IN WITNESS WHEREOF the undersigned, by authority
duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent.

 

	Dated:	 	Beneficial Owner: 

  

	 	By:	 
	 	 	Name:
	 	 	Title:

 

PLEASE EMAIL A COPY OF THE COMPLETED AND EXECUTED
NOTICE AND QUESTIONNAIRE TO:

 

Wick Phillips

3131 McKinney Avenue, Suite 500

Dallas, Texas 75204

Attn: Adam C. August

Adam.August@wickphillips.com

 

    Annex B-4Exhibit 4.2

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of July 30, 2021, by and among Applied Blockchain, Inc., a Nevada
corporation (together with any successor entity thereto, the “Company”), and B. Riley Securities, Inc., a Delaware corporation,
as the placement agent (“B. Riley”), for the benefit of B. Riley and the Investors (as defined below).

 

WHEREAS, in connection
with the Placement Agent Agreement by and between the Company and B. Riley dated as of July 30, 2021 (the “Placement Agent Agreement”),
the Company has agreed, upon the terms and subject to the conditions set forth in the Placement Agent Agreement and Subscription Agreements
(as defined below) with each of the Investors, to issue and sell to each Investor shares of its Series D Convertible Redeemable Preferred
Stock, $0.001 par value per share (the “Series D Preferred Stock”); and

 

WHEREAS, in order to
induce B. Riley to enter into the Placement Agent Agreement, the Company has agreed to provide the registration rights provided for in
this Agreement to the Holders. The execution of this Agreement is a condition to the closing of the transactions contemplated by the Placement
Agent Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and B. Riley hereby agree as follows:

 

1.        Definitions.
Capitalized terms used and not otherwise defined herein that are defined in the Placement Agent Agreement will have the respective meanings
given such terms in the Placement Agent Agreement. As used in this Agreement, the following terms have the respective meanings set forth
in this Section 1 and other terms are defined throughout this Agreement:

 

“Business Day”
means a day other than Saturday, Sunday or any other day which commercial banks in New York, New York are authorized or required by
law to close.

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

“Common Stock”
means the common stock, par value $0.001 per share, of the Company.

 

“Definitive Instrument”
has the meaning given to it in Section 2(c).

 

“Effective Date”
means, as to a Registration Statement, the date on which such Registration Statement is first declared effective by the Commission.

 

“Effectiveness Deadline”
means December 15, 2021.

 

“Effectiveness
Period” means, as to any Registration Statement required to be filed pursuant to this Agreement, the period commencing on
the Effective Date of such Registration Statement and ending on (a) the date that all of the Registrable Securities covered by such
Registration Statement have been publicly sold by the Holders of the Registrable Securities included therein, or (b) such time as
all of the Registrable Securities covered by such Registration Statement may be sold by the Holders without restriction pursuant to
Rule 144 as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable
to the Company's transfer agent and the affected Holders.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended.

 

     

     

    

 

“Filing Deadline”
means August 15, 2021.

 

“Holder” or
“Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities and, if other
than an Investor, a Person to whom the rights hereunder have been properly assigned pursuant to Section 7 hereof.

 

“Investors” means
the purchasers of the Series D Preferred Stock pursuant to the Subscription Agreements.

 

“Losses”
has the meaning given to it in Section 5(a).

 

“New York Courts”
means the state and federal courts sitting in the City of New York, Borough of Manhattan, State of New York.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under
the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including
post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 

“Registrable Securities”
means: (i) any shares of Common Stock issuable or issued upon conversion of the Series D Preferred Stock issued to Investors pursuant
to the applicable Subscription Agreement; and (ii) any securities issued or issuable upon any stock split, dividend or other distribution,
recapitalization or similar event, or any price adjustment as a result of such stock splits, reverse stock splits or similar events with
respect to any of the securities referenced in clause (i) above, including any PIK Dividends on the Series D Preferred Stock (as defined
in the Company’s Certificate of Designations of the Series D Preferred Stock). Notwithstanding the foregoing, a security shall cease
to be a Registrable Security for purposes of this Agreement from and after such time as the Holder of such security may resell such security
without restriction under Rule 144, as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed
and acceptable to the Company’s transfer agent and the affected Holders.

 

“Registration
Statement” means any registration statement of the Company filed or confidentially submitted with the Commission under the
Securities Act that covers the resale of Registrable Securities pursuant to the provisions of this Agreement, including the
Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments,
all exhibits thereto and all material incorporated by reference or deemed to be incorporated by reference, if any, in such
registration statement.

 

     2

     

    

 

“Required Holders”
means the Holders of a majority of the outstanding shares of Series D Preferred Stock or, if the Series D Preferred Stock has been
converted into Common Stock, the Holders of a majority of the Registrable Securities, or, if the Series D Preferred Stock has been converted
in part but not in whole, the Holders of a majority of the Registrable Securities and the Registrable Securities underlying the outstanding
Series D Preferred Stock on an as-converted to Common Stock basis, in the aggregate.

 

“Right of First Refusal
and Co-Sale Agreement” means the agreement by and among the Company and the parties listed on Schedule A thereto dated as of
July 30, 2021.

 

“Rule 144” means
Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule
or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 415” means
Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule
or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 424” means
Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule
or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Significant Transaction
Event” has the meaning given to it in Section 2(c).

 

“Subscription Agreements”
means the subscription agreements entered into by and between the Company and the Investors, dated on or about the date hereof, for the
sale and purchase of shares of the Series D Preferred Stock.

 

“Trading Market”
means any of the New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq
Capital Market, or any other national securities exchange, or OTCQB or OTCQX (or any successors to any of the foregoing).

 

2.       Registration.

 

(a)               On
or prior to the Filing Deadline, the Company shall prepare and file or confidentially submit with the Commission a Registration
Statement covering the resale of all Registrable Securities not already covered by an existing and effective Registration Statement
for an offering to be made on a continuous basis pursuant to Rule 415 (a “Resale Shelf Registration Statement”).
The Resale Shelf Registration Statement shall be filed on Form S-1 (or on such other form appropriate for such purpose) and contain
(except if otherwise required pursuant to written comments received from the Commission upon a review of such Resale Shelf
Registration Statement, other than as to the characterization of any Holder as an underwriter, which shall not occur unless such
characterization is consistent with written information provided by the Holder in the Selling Holder Questionnaire) a “Plan of
Distribution” in substantially the form attached hereto as Annex A. The Company shall cause the Resale Shelf
Registration Statement to be declared effective under the Securities Act as soon as reasonably practicable but, in any event, no
later than the Effectiveness Deadline, and shall use its reasonable best efforts to keep each such Resale Shelf Registration
Statement continuously effective during its entire Effectiveness Period. By 5:00 p.m. (New York City time) on the Business Day
immediately following the Effective Date of the Resale Shelf Registration Statement, the Company shall file with the Commission in
accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Resale
Shelf Registration Statement (whether or not such filing is technically required under such Rule).

 

     3

     

    

 

(b)              
Promptly following any date on which the Company becomes eligible to use a registration statement on Form S-3 to register Registrable
Securities for resale, the Company shall file a Registration Statement on Form S-3 covering all securities that are then deemed Registrable
Securities (or a post-effective amendment on Form S-3 to the then effective Registration Statement) for an offering to be made on a continuous
basis pursuant to Rule 415 (an “S-3 Resale Shelf Registration Statement”) and shall cause such S-3 Resale Shelf Registration
Statement to be filed as soon as commercially reasonable and declared effective under the Securities Act as soon as reasonably possible
thereafter. Such S-3 Resale Shelf Registration Statement shall contain (except if otherwise required pursuant to written comments received
from the Commission upon a review of such S-3 Resale Shelf Registration Statement, other than as to the characterization of any Holder
as an underwriter, which shall not occur unless such characterization is consistent with written information provided by the Holder in
the Selling Holder Questionnaire) a “Plan of Distribution” in substantially the form attached hereto as Annex A. The
Company shall use its commercially reasonable efforts to keep such S-3 Resale Shelf Registration Statement continuously effective under
the Securities Act during the entire Effectiveness Period. By 5:00 p.m. (New York City time) on the Business Day immediately following
the Effective Date of such S-3 Resale Shelf Registration Statement, the Company shall file with the Commission in accordance with Rule
424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such S-3 Resale Shelf Registration Statement
(whether or not such filing is technically required under such Rule).

 

(c)               If:
(i) the Resale Shelf Registration Statement is not filed on or prior to the Filing Deadline covering the Registrable Securities
required under this Agreement to be included therein pursuant to Section 2(a), or (ii) the Resale Shelf Registration
Statement is not declared effective by the Commission on or prior to the Effectiveness Deadline and the Registrable Securities are
not listed on a Trading Market (any such failure to meet the applicable deadlines in clauses (i) and (ii) of this sentence being
referred to as an “Event,” and the date on which such Event occurs being referred to as “Event
Date”), then in addition to any other rights the Investors may have hereunder or under applicable law, on each such Event
Date, PIK Dividends (as defined in the Company’s Certificate of Designations of the Series D Preferred Stock) shall accrue and
be payable on the outstanding shares of Series D Preferred Stock in accordance with and subject to the terms and conditions of the
Company’s Certificate of Designations of the Series D Preferred Stock, until the applicable Event is cured. Notwithstanding
the foregoing, (i) if on or prior to October 15, 2021, the Company enters into a binding definitive agreement or binding instrument
relating to a Significant Transaction Event (a “Definitive Instrument”), then the Company shall have no
obligation to pay any PIK Dividends accrued or payable through such date and any PIK Dividends that have accrued prior to such date
shall be cancelled, and (ii) if the Company has entered into a Definitive Instrument on or prior to October 15, 2021 and has
consummated the Significant Transaction Event on or prior to February 15, 2022, then the Company shall have no obligation to pay any
PIK Dividends accrued or payable through such date and any PIK Dividends accrued prior to such date shall be cancelled. A
 “Significant Transaction Event” means (i) a merger or other business combination designed to increase the number
of stockholders of the Company in order to facilitate a listing on a Trading Market, (ii) a business combination with a special
purpose acquisition company that results in the Company’s securities being listed for trading on a Trading Market, or (iii) a
business combination with a company that is listed on a Trading Market that results in the Company’s securities being listed
for trading on a Trading Market.

 

     4

     

    

 

(d)       Each
Holder agrees to furnish to the Company a completed Questionnaire in the form attached to this Agreement as Annex B (a “Selling
Holder Questionnaire”). The Company shall not be required to include the Registrable Securities of a Holder in any Registration
Statement and shall not be required to pay any PIK Dividends under Section 2(c) and the Company’s Certificate of Designations
of the Series D Preferred Stock to any Holder who fails to furnish to the Company a fully completed Selling Holder Questionnaire at least
two Business Days prior to the Filing Deadline (subject to the requirements set forth in Section 3(a)).

 

3.        Registration
Procedures. In connection with the Company’s registration obligations hereunder:

 

(a)       The
Company shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto in which the “Selling Stockholders”
section thereof materially differs from the disclosure received from a Holder in its Selling Holder Questionnaire (as amended or supplemented).
The Company shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto in which it (i) characterizes
any Holder as an underwriter, unless such characterization is consistent with written information provided by the Holder in the Selling
Holder Questionnaire, (ii) excludes a particular Holder due to such Holder refusing to be named as an underwriter, unless so required
pursuant to written comments received from the Commission, or (iii) reduces the number of Registrable Securities being registered on behalf
of a Holder without such Holder’s express written authorization. The Company shall also ensure that each Registration Statement
(including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case of prospectuses,
in the light of the circumstances in which they were made) not misleading.

 

(b)              
The Company shall (i) prepare and file with the Commission such amendments, including post-effective amendments, to each Registration
Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective
as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus
to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424,
(iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to each Registration Statement
or any amendment thereto, and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with
respect to the Registration Statement(s) and the disposition of all Registrable Securities covered by each Registration Statement.

 

     5

     

    

 

(c)               
 The Company shall notify B. Riley and the Holders as promptly as reasonably possible (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to a Registration Statement is proposed to be filed; and (B) with respect to each Registration
Statement or any post-effective amendment, when the same has become effective; (ii) of the issuance by the Commission of any stop order
suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings
for that purpose; (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding
for such purpose; and (iv) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement,
Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.

 

(d)              
The Company shall use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and
to notify the Holders of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat
of any proceeding for such purpose.

 

(e)               
The Company shall promptly deliver to the Holders, without charge, as many copies of each Prospectus or Prospectuses (including
each form of prospectus) and each amendment or supplement thereto as the Holders may reasonably request. The Company hereby consents to
the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and
sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

 

(f)                
Prior to any public offering of Registrable Securities, the Company shall register or qualify such Registrable Securities for offer
and sale under the securities or blue sky laws of all jurisdictions within the United States as any Holder may request, to keep each such
registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statements;
provided, however, in connection with any such registration or qualification, the Company shall not be required to (i) qualify
to do business in any jurisdiction where the Company would not otherwise be required to qualify, (ii) subject itself to general taxation
in any such jurisdiction, (iii) file a general consent to service of process in any jurisdiction, or (iv) make any change to the Company’s
articles of incorporation or bylaws.

 

     6

     

    

 

(g)               Except
to the extent the Registrable Securities are eligible to be transferred in book-entry form through the facilities of the Depository
Trust Company or the book-entry system of the Company’s transfer agent, the Company shall cooperate with the Holders to
facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee
pursuant to the Registration Statement(s). Such book-entry securities or certificates, as applicable, shall be free, to the extent
permitted by the Placement Agent Agreement and by applicable federal securities laws, of all restrictive legends, and to enable such
Registrable Securities to be in such denominations and registered in such names as any such Holders may request.

 

(h)              
As promptly as reasonably possible upon the occurrence of any event contemplated by Section 3(c)(iv), the Company shall
prepare a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document
so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

(i)           
For so long as the Registrable Securities that have been registered under a Registration Statement remain Registrable Securities,
the Company shall notify the Holders thereof in writing of the happening of any event, as promptly as reasonably practicable after becoming
aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material,
nonpublic information), and shall promptly prepare a supplement or amendment to such Registration Statement to correct such untrue statement
or omission. The Company shall also notify the Holders of Registrable Securities that have been registered under a Registration Statement
in writing as promptly as reasonably possible when a prospectus or any prospectus supplement or post-effective amendment has been filed,
and when the Registration Statement or any post-effective amendment relating to such Registrable Securities has become effective.

 

(j)           
If any Holder is required under applicable securities laws to be described in the Registration Statement as an underwriter, at
the reasonable request of such Holder, the Company shall furnish to such Holder, on the date of the effectiveness of the Registration
Statement and thereafter from time to time on such dates as a Holder may reasonably request: (i) a letter, dated such date, from the Company’s
independent certified public accountants in form and substance as is customarily given by independent certified public accountants to
underwriters in an underwritten public offering, addressed to the Holders, and (ii) an opinion, dated as of such date, of counsel representing
the Company for purposes of such Registration Statement, in form, scope and substance reasonably acceptable to such counsel and as is
customarily given in an underwritten public offering, addressed to the Holders.

 

(k)          Other
than the information regarding a Holder provided by such Holder to the Company for inclusion in a Registration Statement, the
Company shall hold in confidence and not make any disclosure of information concerning a Holder provided to the Company unless: (i)
disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is
ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or
(iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement. The
Company agrees that it shall, upon learning that disclosure of such information concerning a Holder is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt written notice to such Holder and allow such Holder,
at the Holder’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such
information.

 

     7

     

    

 

(l)           
The Company shall use its commercially reasonable efforts to cause all of the Registrable Securities covered by a Registration
Statement to be listed on each Trading Market on which securities of the same class or series issued by the Company are then listed, if
any, if the listing of such Registrable Securities is then permitted under the rules of such Trading Market. The Company shall pay all
fees and expenses in connection with satisfying its obligation under this Section 3(l).

 

(m)       
The Company shall cooperate with the Holders who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates or book-entry securities (not bearing any restrictive legend to the extent permitted
by the Subscription Agreements with the Investors and the federal securities laws) representing the Registrable Securities to be offered
pursuant to a Registration Statement and enable such certificates or book-entry securities to be in such denominations or amounts, as
the case may be, as the Holders may reasonably request and registered in such names as the Holders may request.

 

(n)         
If requested by a Holder and to the extent legally required for the Holder to offer and sell Registrable Securities, the Company
shall as soon as practicable: (i) incorporate in a prospectus supplement or post-effective amendment such information as a Holder reasonably
requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information
with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms
of the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement
or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment;
and (iii) supplement or make amendments to any Registration Statement if reasonably requested by a Holder holding any Registrable Securities.

 

(o)         
The Company’s obligation to file the Resale Shelf Registration Statement pursuant to Section 2(a) shall not be affected by
the filing or effectiveness of a registration statement on Form S-1 or such other form under the Securities Act providing for the initial
public offering of the Common Stock (the “IPO Registration Statement”). The Company will not permit the IPO Registration
Statement to go effective prior to the effectiveness of the Resale Shelf Registration Statement.

 

     8

     

    

 

4.                  Registration
Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without
limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock is
then listed or traded for trading, (B) with respect to filings with FINRA by any underwriter’s counsel for compensation review
pursuant to FINRA Rule 5110, and (C) in compliance with applicable state securities or blue sky laws), (ii) printing expenses
(including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the
printing of prospectuses is reasonably requested by a Holder), (iii) messenger, telephone and delivery expenses, (iv) fees and
disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi)
fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated
by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in
connection with the listing of the Registrable Securities on any Trading Market as required hereunder. In no event shall the Company
be responsible for any broker or similar commissions incurred by any Holder or, except to the extent provided for in the Transaction
Agreements, any legal fees or other cost of the Holders in connection with this Agreement.

 

5.                 
Indemnification.

 

(a)       Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the
officers, directors, agents, investment advisors, partners, members and employees of each of them, each Person who controls any such Holder
(within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees
of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages,
liabilities, costs (including, without limitation, reasonable costs of preparation and reasonable attorneys' fees) and expenses (collectively,
 “Losses”), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained
in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances
under which they were made) not misleading, except to the extent, but only to the extent, that such untrue statements or omissions are
based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to
the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and
was furnished in writing to the Company by or on behalf of such Holder expressly for use in the Registration Statement, such Prospectus
or such form of Prospectus or in any amendment or supplement thereto. The Company shall notify the Holders promptly of the institution,
threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.

 

     9

     

    

 

(b)               Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by
applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon any untrue statement of a
material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement
thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to
make the statements therein not misleading to the extent, but only to the extent that, such untrue statements or omissions are based
solely upon information regarding such Holder furnished in writing to the Company by or on behalf of such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and furnished in writing by or on behalf of such Holder expressly for use in the Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto. In no event shall the liability of any selling
Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the
Registrable Securities giving rise to such indemnification obligation.

 

(c)              
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is
sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection
with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying
Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined
by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately
and materially adversely prejudiced the Indemnifying Party.

 

An Indemnified Party shall
have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed
in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such
Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties
to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such
Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to
represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying
Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall
not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party); provided,
that, the Indemnifying Party shall pay for no more than two separate sets of counsel for all Indemnified Parties. The Indemnifying
Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be
unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any
settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

     10

     

    

 

All fees and expenses of the
Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend
such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten trading
days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party
is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake
to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled
to indemnification hereunder).

 

(d)       
Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by
reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute
to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in
such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party
shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement
of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by,
such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct
or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include,
subject to the limitations set forth in Section 5(c), any reasonable attorneys' or other reasonable fees or expenses incurred by
such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification
provided for in this Section was available to such party in accordance with its terms.

 

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation
or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 5(d), (i) no Person involved in the sale of Registrable Securities which
Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale
shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation;
and (ii) no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually
received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

 

The indemnity and
contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified
Parties.

 

     11

     

    

 

6.                  Reports
Under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 or any other similar rule or
regulation of the Commission that may at any time permit the Holders to sell Registrable Securities of the Company to the public
without registration, the Company agrees, commencing with the date that the Company becomes subject to periodic reporting
requirements under Section 13(a) or Section 15(d) of the Exchange Act and continuing for so long as Registrable Securities are
outstanding and held by the Holders, to:

 

(a)         
make and keep public information available, as those terms are understood, defined and required in Rule 144;

 

(b)         
file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and
the Exchange Act so long as the Company is and remains subject to such requirements and the filing of such reports and other documents
is required for the applicable provisions of Rule 144; and

 

(c)         
furnish to each Holder so long as such Holder owns Registrable Securities, promptly upon request, such information as may be reasonably
and customarily requested to permit the Holders to sell such securities pursuant to Rule 144 without registration.

 

7.       Assignment
of Registration Rights. The rights under this Agreement shall be automatically assignable by the Investors to any permitted transferee
of all or any portion of such Investor’s Registrable Securities if: (i) the Investor agrees in writing with the transferee or assignee
to assign such rights and such transferee agrees to be bound by the terms of this Agreement, and a copy of such agreement is furnished
to the Company within five (5) Business Days after such assignment; (ii) the Company is, within five (5) Business Days after such transfer
or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b) the securities with respect
to which such registration rights are being transferred or assigned; (iii) immediately following such transfer or assignment the further
disposition of such securities by the transferee or assignee is restricted under the Securities Act or applicable state securities laws;
(iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee
agrees in writing with the Company to be bound by all of the provisions contained herein; and (v) such transfer shall have been made in
accordance with the applicable requirements of the Placement Agent Agreement.

 

8.       Miscellaneous.

 

(a)               
Remedies. In the event of a breach by the Company, B. Riley or by a Holder, of any of their obligations under this Agreement,
each Holder, B. Riley or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company,
B. Riley and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in
respect of such breach, it shall waive the defense that a remedy at law would be adequate.

 

(b)              
Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities
Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

     12

     

    

 

(c)                Discontinued
Disposition. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the
Company of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith discontinue
disposition of such Registrable Securities under the Registration Statement until such Holder’s receipt of the copies of the
supplemented Prospectus and/or amended Registration Statement or until it is advised in writing by the Company that the use of the
applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are
incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide
appropriate stop orders to enforce the provisions of this paragraph.

 

(d)              
Piggy-Back Registrations. If at any time during the Effectiveness Period there is not an effective Registration Statement
covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than
on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued
solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other
employee benefit plans, then the Company shall send to each Holder written notice of such determination and, if within fifteen calendar
days after receipt of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement
all or any part of such Registrable Securities such holder requests to be registered, subject to customary underwriter cutbacks applicable
to all holders of registration rights, including holders of the Company’s Series C Convertible Redeemable Preferred Stock, par value
$0.001 per share, and other customary conditions of, and documentation required by, the underwriters of such offering.

 

(e)               
Amendments and Waivers. Except as set forth otherwise herein, the provisions of this Agreement, including the provisions
of this sentence, may not be amended, modified or supplemented, and waivers or consents to or departures from the provisions hereof may
not be given, without the written consent of the Company and the Required Holders or, in the case of Section 2, the written consent
of the Company and the Required Holders but substituting eighty percent (80%) for the majority threshold in such case; provided, however,
that for purposes of this Section 8(e), Registrable Securities that are owned, directly or indirectly, by the Company or any of
its subsidiaries shall not be deemed to be outstanding. No amendment shall be deemed effective unless it applies uniformly to all Holders.
Notwithstanding the foregoing, a waiver or consent to or departure from the provisions hereof with respect to a matter that relates exclusively
to the rights of a Holder whose securities are being sold pursuant to a Registration Statement and that does not directly or indirectly
affect, impair, limit or compromise the rights of other Holders may be given by such Holder; provided that the provisions of this
sentence may not be amended, modified or supplemented except in accordance with the provisions of the first and second sentences of this
paragraph.

 

     13

     

    

 

(f)               
Notices. All notices and other communications, provided for or permitted hereunder, shall be made in writing and delivered
by electronic mail (with receipt confirmed), overnight courier, registered or certified mail, return receipt requested, or by telegram:

 

		i.	if to a Holder, at the most current address given by the transfer agent and registrar
of the Shares to the Company;

 

		ii.	if to the Company, shall be sufficient in all respects if delivered to the Company
at the offices of the Company at 3811 Turtle Creek Blvd., Suite 2100, Dallas, Texas 75219, Attention: Wes Cummins; with a copy to Wick
Phillips, 3131 McKinney Avenue, Suite 500, Dallas, Texas 75204, Attention: Matthew Zucker; and

 

		iii.	if to B. Riley, shall be sufficient in all respects if delivered or sent to B.
Riley Securities, Inc., 299 Park Avenue, New York, New York 10171, Attention: General Counsel; with a copy to Nelson Mullins Riley &
Scarborough LLP, 101 Constitution Avenue, NW, Suite 900, Washington, DC 20001, Attention: Jonathan H. Talcott.

 

(g)              
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each
of the parties hereto, including, without limitation and without the need for an express assignment or assumption, subsequent Holders.
The Company agrees that the Holders shall be third party beneficiaries to the agreements made hereunder by the parties hereto, and each
Holder shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect
its rights hereunder.

 

(h)              
Execution and Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any
signature is delivered by facsimile or email transmission, such signature shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile or email signature were the
original thereof.

 

(i)                 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to any principle or rule that
would require the application of the law of any other state. Each party agrees that all Proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective
affiliates, employees or agents) will be commenced in the New York Courts. Each party hereto hereby irrevocably submits to the
exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding, any
claim that it is not personally subject to the jurisdiction of any New York Court, or that such Proceeding has been commenced in an
improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process
being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any Proceeding arising out of or relating to this Agreement or
the transactions contemplated hereby. If either party shall commence a Proceeding to enforce any provisions of this Agreement, then
the prevailing party in such Proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such Proceeding.

 

     14

     

    

 

(j)                
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

 

(k)              
Entire Agreement. This Agreement, the Placement Agent Agreement, and the Right of First Refusal and Co-Sale Agreement (collectively,
the “Transaction Agreements”) and the instruments referenced herein and therein constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein and therein. The Transaction Agreements and the instruments referenced herein and therein
supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

(l)                
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable
efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed
the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal,
void or unenforceable.

 

(m)            
Registrable Securities Held by the Company or its Affiliates. Whenever the consent or approval of Holders of a specified
percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company, its subsidiaries or members of
management of the Company and the board of directors of the Company shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage.

 

(n)              
Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

(o)               Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder under this Agreement are several and not joint
with the obligations of any other Holder, and no Holder shall be responsible in any way for the performance of the obligations of
any other Holder under this Agreement. Nothing contained herein or in any Transaction Agreement, and no action taken by any Holder
pursuant thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Holders are in any way acting in concert or as a group with respect to such obligations or
the transactions contemplated by this Agreement or any other Transaction Agreement, or with respect to any Holder’s beneficial
ownership of its Registrable Securities. Each Holder acknowledges that no other Holder will be acting as agent of such Holder in
enforcing its rights under this Agreement. Each Holder shall be entitled to independently protect and enforce its rights, including
without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an
additional party in any Proceeding for such purpose. The Company acknowledges that each of the Holders has been provided with the
same Registration Rights Agreement for the purpose of closing a transaction with multiple Holders and not because it was required or
requested to do so by any Holder.

 

[Signature Page Follows]

 

     15

     

    

 

IN WITNESS
WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	APPLIED BLOCKCHAIN, INC.
	 	  
	 	By:	/s/ Wes Cummins
	 	 
	 	 	Name: Wes Cummins
	 	 	Title: Chief Executive Director
	 	 
	 	B. RILEY SECURITIES, INC.
	 	  
	 	By: 	/s/ Jimmy Baker
	 	 
	 	 	Name: Jimmy Baker
	 	 	Title: EVP, Head of Capital Markets

 

     16

     

    

 

Annex A

 

Plan of Distribution

 

The selling stockholders
and any of their pledgees, donees, transferees, assignees and successors-in-interest may, from time to time, sell any or all of their
shares of Common Stock on any stock exchange, market or trading facility on which the shares are traded or quoted or in private transactions.
These sales may be at fixed or negotiated prices. The selling stockholders may use any one or more of the following methods when selling
shares:

 

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits
Investors;

 

		·	block trades in which the broker-dealer will attempt to sell the shares as agent
but may position and resell a portion of the block as principal to facilitate the transaction;

 

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		·	an exchange distribution in accordance with the rules of the applicable exchange;

 

		·	privately negotiated transactions;

 

		·	through the writing of options on the shares;

 

		·	to cover short sales made after the date that this Registration Statement is declared
effective by the Commission;

 

		·	broker-dealers may agree with the selling stockholders to sell a specified number
of such shares at a stipulated price per share; and

 

		·	a combination of any such methods of sale.

 

The selling stockholders
may also sell shares under Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), or another
exemption, if available, rather than under this prospectus. The selling stockholders shall have the sole and absolute discretion not to
accept any purchase offer or make any sale of shares if it deems the purchase price to be unsatisfactory at any particular time.

 

The selling
stockholders or their respective pledgees, donees, transferees or other successors in interest, may also sell the shares directly to
market makers acting as principals and/or broker-dealers acting as agents for themselves or their customers. Such broker-dealers may
receive compensation in the form of discounts, concessions or commissions from the selling stockholders and/or the purchasers of
shares for whom such broker-dealers may act as agents or to whom they sell as principal or both, which compensation as to a
particular broker-dealer might be in excess of customary commissions. Market makers and block purchasers purchasing the shares will
do so for their own account and at their own risk. It is possible that a selling stockholder will attempt to sell shares of common
stock in block transactions to market makers or other purchasers at a price per share which may be below the then existing market
price. We cannot assure that all or any of the shares offered in this prospectus will be issued to, or sold by, the selling
stockholders. The selling stockholders and any brokers, dealers or agents, upon effecting the sale of any of the shares offered in
this prospectus, may be deemed to be “underwriters” as that term is defined under the Securities Act, the Exchange Act
and the rules and regulations of such acts. In such event, any commissions received by such broker-dealers or agents and any profit
on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities
Act.

 

    Annex A-1

     

    

 

We are required to pay
all fees and expenses incident to the registration of the shares, including fees and disbursements of counsel to the selling stockholders,
but excluding brokerage commissions or underwriter discounts.

 

The selling stockholders,
alternatively, may sell all or any part of the shares offered in this prospectus through an underwriter. The selling stockholders have
not entered into any agreement with a prospective underwriter and there is no assurance that any such agreement will be entered into.

 

The selling stockholders
may pledge their shares to their brokers under the margin provisions of customer agreements. If a selling stockholder defaults on a margin
loan, the broker may, from time to time, offer and sell the pledged shares. The selling stockholders and any other persons participating
in the sale or distribution of the shares will be subject to applicable provisions of the Exchange Act, and the rules and regulations
under such act, including, without limitation, Regulation M. These provisions may restrict certain activities of, and limit the timing
of purchases and sales of any of the shares by, the selling stockholders or any other such person. In the event that any of the selling
stockholders are deemed an affiliated purchaser or distribution participant within the meaning of Regulation M, then the selling stockholders
will not be permitted to engage in short sales of common stock. Furthermore, under Regulation M, persons engaged in a distribution of
securities are prohibited from simultaneously engaging in market making and certain other activities with respect to such securities for
a specified period of time prior to the commencement of such distributions, subject to specified exceptions or exemptions. In addition,
if a short sale is deemed to be a stabilizing activity, then the selling stockholders will not be permitted to engage in a short sale
of our common stock. All of these limitations may affect the marketability of the shares.

 

If a selling stockholder
notifies us that it has a material arrangement with a broker-dealer for the resale of the common stock, then we would be required to amend
the registration statement of which this prospectus is a part, and file a prospectus supplement to describe the agreements between the
selling stockholder and the broker-dealer.

 

    Annex A-2

     

    

 

Annex B

 

Selling Securityholder Notice and Questionnaire

 

The undersigned beneficial owner of
common stock (the “Common Stock”), of Applied Blockchain, Inc., a Nevada corporation (the “Company”),
understands that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”)
a Registration Statement for the registration and resale of the Registrable Securities, in accordance with the terms of the Registration
Rights Agreement, dated as of July __, 2021 (the “Registration Rights Agreement”), among the Company and the Investors
named therein. A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below.
All capitalized terms used and not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

 

The undersigned hereby provides the
following information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

		1.	Name.

 

		(a)	Full Legal Name of Selling Securityholder:
	 	 	 

 

 

		(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through which
Registrable Securities Listed in Item 3 below are held:
	 	 	 

 

		(c)	Full Legal Name of Natural Control Person (which means a natural person who directly
or indirectly alone or with others has power to vote or dispose of the securities covered by the questionnaire):
	 	 	 

 

2. Address for Notices to Selling Securityholder:

 

Telephone:

 

Address:

 

Email:

 

Contact Person:

 

    Annex B-1

     

    

 

3. Beneficial Ownership of Registrable Securities:

 

Type and Amount of Registrable Securities beneficially
owned:

 

__________________________________________________________

 

4. Broker-Dealer Status:

 

		(a)	Are you a broker-dealer?

 
Yes [ ]         No [ ]

 

Note: If
yes, the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

		(b)	Are you an affiliate of a broker-dealer?

 

Yes [ ]         No [ ]

 

		(c)	If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable
Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no
agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 

Yes [ ]        No [ ]

 

Note: If
no, the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

5. Beneficial
Ownership of Other Securities of the Company Owned by the Selling Securityholder.

 

Except as set forth below in
this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities
listed above in Item 3.

 
	Type and Amount of Other Securities beneficially owned by the Selling Securityholder:
	 
	 

 

    Annex B-2

     

    

 

6.   
 Relationships with the Company:

 

Except as set forth below, neither
the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities
of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or
affiliates) during the past three years.

 

State any exceptions here:

 

7.   
The Company has advised each Selling Securityholder that it is the view of the Commission that it may not use shares registered
on the Registration Statement to cover short sales of Common Stock made prior to the date on which the Registration Statement is declared
effective by the Commission, in accordance with SEC Division of Corporation Finance Compliance & Disclosure Interpretations, Securities
Act Sections, §239.10. If a Selling Securityholder uses the prospectus for any sale of the Common Stock, it will be subject to the
prospectus delivery requirements of the Securities Act. The Selling Securityholders will be responsible to comply with the applicable
provisions of the Securities Act and Exchange Act, and the rules and regulations thereunder promulgated, including, without limitation,
Regulation M, as applicable to such Selling Securityholders in connection with resales of their respective shares under the Registration
Statement.

 

The undersigned agrees to promptly
notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof and
prior to the Effective Date for the Registration Statement.

 

Certain legal consequences arise
from being named as a Selling Securityholder in the Registration Statement and related prospectus. Accordingly, the undersigned is advised
to consult their own securities law counsel regarding the consequence of being named or not being named as a Selling Securityholder in
the Registration Statement and the related prospectus.

 

By signing below, the undersigned
consents to the disclosure of the information contained herein in its answers to Items 1 through 6 and the inclusion of such information
in the Registration Statement and the related prospectus. The undersigned understands that such information will be relied upon by the
Company in connection with the preparation or amendment of the Registration Statement and the related prospectus. The undersigned hereby
elects to include the Registrable Securities owned by it and listed above in Item 3 (unless otherwise specified in Item 3) in the Registration
Statement.

 

    Annex B-3

     

    

 

IN WITNESS WHEREOF the undersigned,
by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized
agent.

 

	Dated:	 	  Beneficial Owner:	 

 

	 	  By:	     
	 	 	 
	 	 	Name:
	 	 	Title:

 

PLEASE EMAIL A COPY OF THE COMPLETED AND EXECUTED
NOTICE AND QUESTIONNAIRE TO:

 

Wick Phillips

3131 McKinney Avenue, Suite 500

Dallas, Texas 75204

Attn: Adam C. August

Adam.August@wickphillips.com

 

    Annex B-4

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