Document:

Exhibit 4.1

 

CONVERTIBLE PROMISSORY NOTE

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
(I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B)
AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS
NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
BY THE SECURITIES. ANY TRANSFEREE OF THIS CONVERTIBLE PROMISSORY NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS CONVERTIBLE PROMISSORY
NOTE, INCLUDING SECTIONS 3(c)(iii) AND 10(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS CONVERTIBLE PROMISSORY NOTE AND, ACCORDINGLY,
THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii)
OF THIS CONVERTIBLE PROMISSORY NOTE.

 

IMPERALIS HOLDING CORP.

CONVERTIBLE PROMISSORY NOTE DUE DECEMBER 15,
2023

 

 

	Issuance Date: December 15, 2021	Principal Amount: $101,528.77

 

FOR VALUE RECEIVED,
Imperalis Holding Corp., a Nevada corporation (the “Company”), hereby promises to pay to the order of Digital Power
Lending, LLC, or its registered assigns (“Holder”) the amount set forth above as the original principal amount (the
“Principal”) when due, whether upon December 15, 2023 (the “Maturity Date”), or upon acceleration,
prepayment or otherwise (in each case in accordance with the terms hereof) and to pay interest (“Interest”) on any
outstanding Principal at the applicable Interest Rate (as defined below) from the date set forth above as the Issuance Date (the “Issuance
Date”) until the same becomes due and payable, whether upon the Maturity Date or upon acceleration, conversion, prepayment or
otherwise (in each case in accordance with the terms hereof). This Convertible Promissory Note (this “Note”) is issued
to the Holder as of the Issuance Date by the Company. Certain capitalized terms used herein are defined in Section 19. The Company acknowledges
and agrees that the exchange of this Note for the Promissory Notes issued on August 18, 2021 and November 5, 2021 (collectively, the “Prior
Note”), did not involve the payment of, or giving of a commission, or other remuneration, directly or indirectly, in connection
with, the exchange and that the exchange was exempt from registration under Section 3(a)(9) of the Securities Act of 1933, as amended
(the “Securities Act”). In addition, the Company acknowledges and agrees that the exchange of the Prior Note for this
Note, did not involve the payment of, or giving of a commission, or other remuneration, directly or indirectly, in connection with, the
exchange and that the exchange was exempt from registration under Section 3(a)(9) of the Securities Act. Accordingly, the Company shall
at all times agree that the holding period of this Note for purposes of Rule 144 under the Securities Act tacks back to August 18, 2021
for $20,000 in Principal and November 5, 2021 for $80,000 in Principal and the date of this Note for $1,528.77 in Principal, which represents
all accrued but unpaid interest on the Prior Note.

 

		1.	PAYMENTS OF PRINCIPAL.

 

On the Maturity
Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal and accrued and unpaid Interest on
such Principal. Other than as specifically permitted by this Note, the Company may not prepay any portion of the outstanding Principal
or accrued and unpaid Interest.

 

    	 		 

    	 

    

 

		2.	INTEREST;
INTEREST RATE.

 

(a)       Interest
on this Note shall commence accruing on December 15, 2021 at 10% per annum subject to adjustment in accordance with the terms of this
Section 2 (the “Interest Rate”), shall be calculated on the basis of a 360-day year and twelve 30-day months, compounded
daily, and shall be payable by the Company to the Holder, in cash, on the Maturity Date.

 

(b)       From
and after the occurrence and during the continuance of any Event of Default, the Interest Rate shall automatically be increased to the
lower of 18.0% per annum or the highest amount permitted by law, shall compounded daily (the “Default Interest”), and
shall be due and payable on the first Trading Day of each calendar month during the continuance of such Event of Default (a “Default
Interest Payment Date”). In the event that such Event of Default is subsequently cured (and no other Event of Default then exists
(including, without limitation, for the Company’s failure to pay such Interest at the Default Rate on the applicable Default Interest
Payment Date), the adjustment referred to in the preceding sentence shall cease to be effective as of the day immediately following the
date of such cure; provided that the Interest as calculated and unpaid at such increased rate during the continuance of such Event of
Default shall continue to apply to the extent relating to the days after the occurrence of such Event of Default through and including
the date of such cure of such Event of Default.

 

3.            CONVERSION
OF NOTES. This Note shall be convertible into validly issued, fully paid and non-assessable shares (the “Conversion Shares”)
of the Company’s common stock, par value $0.001 per share (the “Common Stock”), on the terms and conditions set
forth in this Section 3.

 

(a)       Conversion
Right. At any time following the Issuance Date, the Holder shall be entitled to convert any portion of
the outstanding and unpaid Conversion Amount (as defined below) into Conversion Shares in accordance with Section 3(b), at the Conversion
Rate (as defined below). The Company shall not issue any fraction of a Conversion Share upon any conversion. If the issuance would result
in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest
whole share. The Company shall pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including, without limitation,
fees and expenses of the Transfer Agent (as defined below)) that may be payable with respect to the issuance and delivery of Common Stock
upon conversion of any Conversion Amount.

 

(b)       Conversion
Rate. The number of Conversion Shares issuable upon conversion of any Conversion Amount pursuant to Section 3(a) shall be determined
by dividing (x) such Conversion Amount by (y) the Conversion Price (the “Conversion Rate”).

 

(i)       “Conversion
Amount” means the sum of (x) portion of the Principal to be converted, prepaid or otherwise with respect to which this determination
is being made and (y) all accrued and unpaid Interest with respect to such portion of the Principal amount.

 

(ii)       “Conversion
Price” means $0.01. The Conversion Price shall be subject to equitable adjustments resulting from any stock splits, stock dividends,
combinations, recapitalizations or similar events. The Company, if requested by the Holding, shall issue irrevocable instructions to its
transfer agent regarding conversions such that the transfer agent shall be authorized and instructed to issue shares of Common Stock upon
its receipt of a Conversion Notice without further approval or authorization from the Company. 

 

(c)           Mechanics
of Conversion.

 

(i)       Optional
Conversion. To convert any Conversion Amount into Conversion Shares on any date (a “Conversion
Date”), the Holder shall deliver to the Company (whether via facsimile, electronic mail or otherwise), for receipt on or prior
to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I
(the “Conversion Notice”). If required pursuant to Section 3(c)(iii) hereof, within two Trading Days following a conversion
of this Note as aforesaid, the Holder shall surrender this Note to a nationally recognized overnight delivery service for delivery to
the Company (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction as contemplated
by Section 10(b)). On or before the second Trading Day following the date on which the Company has received a Conversion Notice (or such
earlier date as required pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or other
applicable law, rule or regulation for the settlement of a trade initiated on the applicable Conversion Date of such shares of Common
Stock issuable pursuant to such Conversion Notice), the Company shall (1) provided that its transfer agent is participating in the DTC
Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled
pursuant to such conversion to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian
system or (2) if its transfer agent is not participating in the DTC Fast Automated Securities Transfer Program, upon the request of the
Holder, issue and deliver (via reputable overnight courier) to the address as specified in the Conversion Notice, a certificate, registered
in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled pursuant to
such conversion. If this Note is physically surrendered for conversion pursuant to Section 3(c)(iii) and the outstanding Principal of
this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable
and in no event later than two Trading Days after receipt of this Note and at its own expense, issue and deliver to the Holder (or its
designee) a new Note (in accordance with Section 10(d)) representing the outstanding Principal not converted. The Person or Persons entitled
to receive the Conversion Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the
Conversion Date.

 

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(ii)        Reserved.

 

(iii)       Registration;
Book-Entry. The Company shall maintain a register (the “Register”) for the recordation of the names and addresses
of the Holder of the Note and the principal amount of the Note (the “Registered Note”). The entries in the Register
shall be conclusive and binding for all purposes absent manifest error. The Company and the holder or holders of the Note shall treat
each Person whose name is recorded in the Register as the owner of a Note for all purposes (including, without limitation, the right to
receive payments of Principal and Interest hereunder) notwithstanding notice to the contrary. The Registered Note may, subject to Section
18 hereof, be assigned, transferred or sold in whole or in part only by registration of such assignment or sale on the Register. Upon
its receipt of a written request to assign, transfer or sell all or part of the Registered Note by the holder thereof, the Company shall
record the information contained therein in the Register and issue one or more new Registered Notes in the same aggregate principal amount
as the principal amount of the surrendered Registered Note to the designated assignee or transferee pursuant to Section 10, provided
that if the Company does not so record an assignment, transfer or sale (as the case may be) of all or part of any Registered Note within
two Trading Days of such a request, then the Register shall be automatically deemed updated to reflect such assignment, transfer or sale
(as the case may be). Notwithstanding anything to the contrary set forth in this Section 3, following conversion of any portion of
this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless
(A) the full Conversion Amount represented by this Note is being converted (in which event this Note shall be delivered to the Company
following conversion thereof) or (B) the Holder has provided the Company with prior written notice (which notice may be included in a
Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder and the Company shall maintain
records showing the Principal and Interest converted and/or paid (as the case may be) and the dates of such conversions, and/or payments
(as the case may be) or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical
surrender of this Note upon conversion. If the Company does not update the Register to record such Principal and Interest converted and/or
paid (as the case may be) and the dates of such conversions, and/or payments (as the case may be) within two Trading Days of such occurrence,
then the Register shall be automatically deemed updated to reflect such occurrence.

 

4.             RIGHTS
UPON EVENT OF DEFAULT.

 

(a)           Event
of Default. Each of the following events shall constitute an “Event of Default”:

 

(i)       the
Company’s default under this Note or the other Transaction Documents, including a failure to pay to the Holder any amount of Principal,
Interest or other amounts when and as due under this Note, the other Transaction Documents, subject to a cure period of ten (10) Trading
Days;

 

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(ii)       the
Company fails to issue Common Stock without any restrictive legend or to remove any restrictive legend on any certificate (including by
book entry) for any shares of Common Stock issued to the Holder pursuant to this Note within two (2) Trading Days after (A) receipt by
the Company of an executed Conversion Notice or (B) if the Holder has shares with a restrictive legend upon written notice to remove such
legend, in either case together with an opinion of counsel to the Holder that no restrictive legend is required; provided, that
the Company shall have two (2) Trading Days to cure any such failure, unless otherwise then prohibited by applicable federal securities
laws;

 

(iii)       bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or against
the Company and, if instituted against the Company by a third party, shall not be dismissed within 30 days of their initiation;

 

(iv)       the
commencement by the Company of a voluntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization
or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of
a decree, order, judgment or other similar document in respect of the Company in an involuntary case or proceeding under any applicable
federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency
case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable
federal, state or foreign law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company of any substantial part of its
property, or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the occurrence
of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its debts generally
as they become due, the taking of corporate action by the Company in furtherance of any such action or the taking of any action by any
Person to commence a Uniform Commercial Code foreclosure sale or any other similar action under federal, state or foreign law;

 

(v)       the
entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company of a voluntary or involuntary case
or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or (ii) a decree,
order, judgment or other similar document adjudging the Company as bankrupt or insolvent, or approving as properly filed a petition seeking
liquidation, reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable federal, state
or foreign law or (iii) a decree, order, judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company of any substantial part of its property, or ordering the winding up or liquidation
of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree, order, judgment
or other similar document unstayed and in effect for a period of 10 consecutive days;

 

(vi)       other
than as specifically set forth in another clause of this Section 4(a), the Company breaches any representation or warranty in any material
respect (other than representations or warranties subject to materiality limitations, which may not be breached in any respect) or any
covenant or other term or condition of this Note or any other Transaction Document, except, in the case of a breach of a covenant or other
term or condition that is curable, only if such breach remains uncured for a period of ten (10) consecutive Trading Days; or

 

(vii)       any
provision of any Transaction Document shall at any time for any reason (other than pursuant to the express terms thereof) cease to be
valid and binding on or enforceable against the parties thereto, or the validity or enforceability thereof shall be contested by any party
thereto, or a proceeding shall be commenced by the Company or any governmental authority having jurisdiction over it, seeking to establish
the invalidity or unenforceability thereof, or the Company shall deny in writing that it has any liability or obligation purported to
be created under any Transaction Document, subject to a cure period of ten (10) Trading Days.

 

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(b)           Notice
of an Event of Default; Holder Right to Compel Prepayment upon Event of Default. Upon the occurrence of an Event of Default with respect
to this Note, the Company shall within one Trading Day deliver written notice thereof via facsimile or electronic mail and overnight courier
(with next day delivery specified) (an “Event of Default Notice”) to the Holder. At any time after the earlier of the
Holder’s receipt of an Event of Default Notice and the Holder becoming aware of an Event of Default and ending (such ending date,
the “Event of Default Right Expiration Date”) on the 20th Trading Day after the later of (x) the date such
Event of Default is cured and (y) the Holder’s receipt of an Event of Default Notice that includes (I) a reasonable description
of the applicable Event of Default, (II) a certification as to whether, in the opinion of the Company, such Event of Default is capable
of being cured and, if applicable, a reasonable description of any existing plans of the Company to cure such Event of Default and (III)
a certification as to the date the Event of Default occurred and, if cured on or prior to the date of such Event of Default Notice, the
applicable Event of Default Right Expiration Date, the Holder may require the Company to prepay (regardless of whether such Event of Default
has been cured on or prior to the Event of Default Right Expiration Date) all or any portion of this Note by delivering written notice
thereof (the “Event of Default Prepayment Notice”) to the Company, which Event of Default Prepayment Notice shall indicate
the portion of this Note the Holder is electing to have prepaid. Each portion of this Note (which may include all outstanding Principal,
and accrued and unpaid Interest) subject to prepayment by the Company pursuant to this Section 4(b) shall be prepaid by the Company at
a price equal to the product of: (i) the portion of this Note being prepaid; multiplied by (ii) 1.5.

 

5.             RIGHTS
UPON ISSUANCE OF OTHER SECURITIES.

 

(a)       Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Issuance Date subdivides
(by any stock split, stock dividend, recapitalization or other similar transaction) one or more classes of its outstanding shares of Common
Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced.
If the Company at any time on or after the Issuance Date combines (by any reverse stock split, or stock combination, recapitalization
or other similar transaction) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion
Price in effect immediately prior to such combination will be proportionately increased. Any adjustment pursuant to this Section 5(a)
shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under
this Section 5(a)(a) occurs during the period that a Conversion Price is calculated hereunder, then the calculation of such Conversion
Price shall be adjusted appropriately to reflect such event.

 

(b)       Other
Events. In the event that the Company shall take any action to which the provisions hereof are not strictly applicable, or, if applicable,
would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section
5 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom
stock rights or other rights with equity features), then the Company’s board of directors shall in good faith determine and implement
an appropriate adjustment in the Conversion Price so as to protect the rights of the Holder, provided that no such adjustment pursuant
to this Section 5(b) will increase the Conversion Price as otherwise determined pursuant to this Section 5, provided further that if the
Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company’s
board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing to
make such appropriate adjustments, whose determination shall be final and binding absent manifest error and whose fees and expenses shall
be borne by the Company.

 

(c)       Calculations.
All calculations under this Section 5 shall be made by rounding to the nearest cent or the nearest 1/100th of a share,
as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the
account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(d)       Voluntary
Adjustment by Company. The Company may at any time during the term of this Note, with the prior written consent of the Holder, reduce
the then current Conversion Price of the Note to any amount and for any period of time deemed appropriate by the board of directors of
the Company.

 

6.             NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of the Company’s Certificate of Incorporation or
other charter documents, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution,
issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action as may be required to
protect the rights of the Holder of this Note. Without limiting the generality of the foregoing or any other provision of this Note or
the other Transaction Documents, the Company (a) shall not increase the par value of any shares of Common Stock receivable upon conversion
of this Note above the Conversion Price then in effect, and (b) shall take all such actions as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the conversion of this
Note. 

 

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7.            RESERVATION
OF AUTHORIZED SHARES. So long as the Note remains outstanding, the Company shall at all times reserve 13,000,000 shares of its Common
Stock, subject to adjustment for stock splits, stock dividends, combinations and similar events.

 

8.            PREPAYMENT.
This Note may not be prepaid without the consent of the Holder, which consent may be withheld in Holder’s absolute discretion.

 

9.            AMENDING
THE TERMS OF THIS NOTE. The prior written consent of the Holder shall be required for any change, waiver or amendment to this Note.
Any change, waiver or amendment so approved shall be binding upon all existing and future holders of this Note; provided, however, that
no such change, waiver or, as applied to the Note held by any particular holder of the Note, shall, without the written consent of that
particular holder, (i) reduce the amount of Principal, reduce the amount of accrued and unpaid Interest, or extend the Maturity Date,
of the Note, (ii) disproportionally and adversely affect any rights under the Note of any holder of any other portion of the Note; or
(iii) modify any of the provisions of, or impair the right of any holder of the Note under this Section 9.

 

10.          REISSUANCE
OF THIS NOTE.

 

(a)       Transfer.
If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue and
deliver upon the order of the Holder a new Note (in accordance with Section 10(d)), registered as the Holder may request, representing
the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being transferred, a new
Note (in accordance with Section 10(d)) to the Holder representing the outstanding Principal not being transferred. The Holder and any
assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following conversion
or prepayment of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on
the face of this Note.

 

(b)       Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice as such evidence),
and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable
form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder
a new Note (in accordance with Section 10(d)) representing the outstanding Principal. The Holder shall not be required to deliver a bond
or other security.

 

(c)       Note
Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal office
of the Company, for a new Note or Notes (in accordance with Section 10(d) and in principal amounts of at least $1,000) representing in
the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding Principal
as is designated by the Holder at the time of such surrender.

 

(d)       Issuance
of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall be
of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding (or
in the case of a new Note being issued pursuant to Section 10(a) or Section 10(c), the Principal designated by the Holder which does not
exceed the Principal remaining outstanding under this Note immediately prior to such issuance of a new Note), (iii) shall have an issuance
date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights
and conditions as this Note, and (v) shall represent accrued and unpaid Interest.

 

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11.          CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted by the Company and the initial Holder and shall not be construed against
any such Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect
the interpretation of, this Note. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine,
feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Note instead of just the provision in which
they are found. Unless expressly indicated otherwise, all section references are to sections of this Note. Terms used in this Note and
not otherwise defined herein, but defined in the other Transaction Documents, shall have the meanings ascribed to such terms on the Closing
Date in such other Transaction Documents unless otherwise consented to in writing by the Holder.

 

12.          FAILURE
OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing and signed by an authorized
representative of the waiving party.

 

13.          NOTICES.
Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in writing with
an e-mail copy to the last address provided by the Holder or its agents in writing to the Company. The Company shall provide the Holder
with prompt written notice of all actions taken pursuant to this Note, including in reasonable detail a description of such action and
the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately
upon any adjustment of the Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and
(ii) at least 15 days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution
upon the Common Stock, or (B) for determining rights to vote with respect to any transaction, dissolution or liquidation, provided in
each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

 

14.          WAIVER
OF NOTICE. To the extent permitted by law, the Company hereby irrevocably waives demand, notice, presentment, protest and all other
demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

15.          GOVERNING
LAW. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation
and performance of this Note shall be governed by, the internal laws of the State of Nevada, without giving effect to any choice of law
or conflict of law provision or rule (whether of the State of Nevada or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of Nevada. The Company hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in Clark County, Nevada, 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 suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to
preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s
obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other
court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

16.          SEVERABILITY.
If any provision of this Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction,
the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that
it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining
provisions of this Note so long as this Note as so modified continues to express, without material change, the original intentions of
the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question
does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the
benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited,
invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited,
invalid or unenforceable provision(s).

 

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17.           MAXIMUM
PAYMENTS. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges in excess
of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed
the maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed by the Company to the
Holder and thus refunded to the Company.

 

18.          ASSIGNMENT.
Neither this Note nor the rights contained herein may be assigned, by operation of law or otherwise, by either party without the prior
written consent of the other; provided, however, that this Note and/or the rights contained herein may be assigned without the Company’s
consent by the Holder to any other entity who controls, is controlled by or is under common control with the Holder.

 

19.           CERTAIN
DEFINITIONS. For purposes of this Note, the following words and terms shall have the following meanings:

 

(a)       “Closing
Date” shall mean the date the Company initially issued the Note

 

(b)       “Common
Stock” means (i) the Company’s shares of common stock, $0.001 par value per share, and (ii) any capital stock into which
such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

(c)       “Exchange
Agreement” means that certain Exchange Agreement, dated as of November __, 2021, by and between the Company and the Holder.

 

(d)       “Maturity
Date” shall mean the date listed in the preamble hereto as the Maturity Date; provided, however, the Maturity Date may be extended
at the option of the Holder in the event that, and for so long as, an Event of Default shall have occurred and be continuing or any event
shall have occurred and be continuing that with the passage of time and the failure to cure would result in an Event of Default.

 

(e)       “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

(f)       “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

(g)       “Trading
Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Stock, any
day on which the Common Stock is traded on the principal securities exchange or securities market on which the Common Stock is then traded,
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or
market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange
or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during
the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder or (y)
with respect to all determinations other than price determinations relating to the Common Stock, any day on which The New York Stock Exchange
(or any successor thereto) is open for trading of securities.

 

(h)       “Transaction
Documents” means this Note, the Exchange Agreement and any other documents relating to the issuance of this Note by the Company
to the Holder.

 

[signature page follows]

 

    	 	8	 

    	 

    

  

IN WITNESS WHEREOF, the Company
has caused this Note to be duly executed as of the Issuance Date set out above.

 

 

	 	
        IMPERALIS HOLDING CORP. 

	 	 
	 	 
	 	By: /s/ VINCENT ANDREULA
	 	 
	 	Name:   	Vincent Andreula
	 	 	 
	 	Title:	Chief Executive Officer

 

    	 	9	 

    	 

    

  

EXHIBIT
I

IMPERALIS HOLDING CORP.

CONVERSION NOTICE

 

 

Reference is made to the Convertible
Promissory Note (the “Note”) issued to the undersigned by Imparlis Holding Corp., a Nevada corporation (the “Company”).
In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of
the Note indicated below into shares of Common Stock, $0.001 par value per share (the “Common Stock”), of the Company,
as of the date specified below. Capitalized terms not defined herein shall have the meaning as set forth in the Note.

 

	

Date of Conversion:	 
	

                                                                          Aggregate Principal to be converted:
	 
	

                                                                          Aggregate accrued and unpaid Interest to be converted:
	 
	

                                                    AGGREGATE CONVERSION AMOUNT
  TO BE CONVERTED:
	 
	

                                                    Please confirm the following information:

	

                                                                         Conversion Price:
	 
	

                                                                         Number of shares of Common Stock to be issued: 
	 
	
        

Please issue the Common Stock into which the Note
        is being converted to Holder, or for its benefit, as follows:

         

        ☐         Check
        here if requesting delivery as a certificate to the following name and to the following address:

	

                                                              

                                                             Issue to:
	 
	 	 
	 	 
	 	 
	

☐          Check
here if requesting delivery by Deposit/Withdrawal at Custodian as follows: 

	

                                                                          

                                                                         DTC Participant:
	 
	

                                                                          

                                                                         DTC Number:
	 
	

                                                                          

                                                                         Account Number:
	 
	 	 	 	 	 	 

 

    	 	1	 

    	 

    

 

	
        Date: ______________________ __, 

         

        

	 
	Name of Registered Holder	 
	 	 	 
	
        By: 
	 	 
	 	Name: 	 
	 	Title:	 
	 	 	 
	 	Tax ID:_____________________	 
	 	 	 
	 	
        Facsimile:___________________

         

        
	 
	E-mail Address:	 

 

 

2Exhibit 10.1

 

EXCHANGE AGREEMENT

 

THIS EXCHANGE AGREEMENT
(the “Agreement”) is made as of December 15, 2021 (the “Effective Date”), by and between Imperalis
Holding Corp., a Nevada corporation (the “Company”) and Digital Power Lending, LLC, a California limited liability
company (the “Investor”).

 

WHEREAS, the Investor
acquired those certain Promissory Notes dated August 18, 2021 and November 5, 2021 (collectively, the “Original Note”)
in the aggregate principal amount of $100,000, which Original Note has accrued interest of $1,528.77 as of the Effective Date;

 

WHEREAS, subject to
the satisfaction of the conditions set forth herein, the Company and the Investor desire to enter into a transaction wherein the Company
shall issue the Investor a new Convertible Promissory Note in the principal amount of $101,528.77 (the “Principal”,
in the form attached hereto as Exhibit A (the “New Note”), in exchange for the Original Note.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.          Exchange.
The closing of the Exchange (the “Closing”) will occur on December 15, 2021 (or such later date as the parties hereto
may agree in writing) following the satisfaction or waiver of the conditions set forth herein (such date, the “Closing Date”).
On the Closing Date, subject to the terms and conditions of this Agreement, the Investor and the Company shall exchange the Original Note
for the New Note. At the Closing, the following transactions shall occur (collectively, the “Exchange”):

 

1.1.       On
the Closing Date, the Company shall issue the New Note to the Investor. Promptly after the Closing Date, but in no event more than one
day after the Closing Date, the Company shall deliver an executed original New Note to the Investor. On the Closing Date, the Investor
shall be deemed for all purposes to have become the holder of record of the New Note, irrespective of the date the Company delivers the
New Note to the Investor. Upon receipt of the executed original of the New Note in accordance with this Section 1.1, all of the Investor’s
rights under the Original Note shall be extinguished (including, without limitation, the rights to receive, as applicable, any premium,
make-whole amount, accrued and unpaid interest or dividends thereon or any other shares of the Common Stock of the Company with respect
thereto).

 

1.2.       It
shall be a condition to the obligation of the Investor, on the one hand, and the Company, on the other hand, to consummate the Exchange
contemplated hereunder that the other party’s representations and warranties contained herein are true and correct on the Closing
Date with the same effect as though made on such date, unless waived in writing by the party to whom such representations and warranties
are made.

 

2.          Representations
and Warranties of the Company. The Company hereby represents and warrants to the Investor that:

 

2.1       Organization.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Company is not in
violation nor default of any of the provisions of its certificate of incorporation, bylaws or other organizational or charter documents.
The Company is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction
in which the nature of the business conducted or property owned by it makes such qualification necessary, and no claim, action or proceeding
of any kind has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such
power and authority or qualification.

 

2.2       Authorization.
This Agreement has been duly and validly authorized, executed and delivered on behalf of the Company and shall constitute the legal, valid
and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except as such enforceability
may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other
similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. The execution, delivery
and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby and thereby
will not: (i) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which
the Company is a party or by which it is bound; or (ii) result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities or “blue sky” laws) applicable to the Company.

 

    	 		 

    	 

    

 

2.3       Valid
Issuance of the New Note. The New Note when issued and delivered in accordance with the terms of this Agreement, for the consideration
expressed herein, and the Common Stock when issued in accordance with the terms of this Agreement will be duly and validly issued, fully
paid and non-assessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction
Documents. 

 

2.4       Issuance
of Common Stock. Upon the issuance of any Common Stock pursuant to the terms of this Agreement and the New Note, the Common Stock
shall be freely tradable under Section 3(a)(9) of the Securities Act of 1933 and Rule 144 thereunder as more fully described in the New
Note.

 

2.5       Reservation
of Common Stock.

 

2.5.1       So
long as the New Note remains outstanding, the Company shall reserve 13,000,000 shares of Common Stock (the “Required Reserve
Amount”) to be issued to the Investor in accordance with the terms set forth in the New Note.

 

2.5.2       If,
notwithstanding Section 2.5.1, and not in limitation thereof, at any time while the New Note remains outstanding the Company does not
have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve 5 million shares of
its Common Stock for issuance pursuant to the terms of this Agreement, (an “Authorized Share Failure”), then the Company
shall as practicable as possible take all action necessary to increase the Company’s authorized shares of Common Stock or effectuate
a reverse split of the Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount. Without limiting
the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but
in no event later than 60 days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders
for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall
provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders’ approval of such increase
in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.

 

2.6       Compliance
With Laws. The Company has complied in all material respects with all laws, rules, and regulations applicable to it and its business,
and the Company has not received notice of any such violation. 

 

2.7       Consents;
Waivers. No consent, waiver, approval or authority of any nature, or other formal action, by any person or entity, not already obtained,
is required in connection with the execution and delivery of this Agreement by the Company or the consummation by the Company of the transactions
provided for herein and therein.

 

2.8       Acknowledgment
Regarding Investor’s Purchase of the New Note. The Company acknowledges and agrees that the Investor is acting solely in the
capacity of arm’s length purchaser with respect to this Agreement and the Exchange and the transactions contemplated hereby and
thereby and that the Investor is not: (i) an officer or director of the Company; (ii) an “affiliate” of the Company (as defined
in Rule 144 promulgated under the Securities Act); or (iii) to the knowledge of the Company, a “beneficial owner” of 4.99%
or more of the shares of Common Stock (as defined for purposes of Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). The Company further acknowledges that the Investor is not acting
as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Exchange, this Agreement, any other
document or agreement delivered in connection herewith or therewith or the transactions contemplated hereby and thereby, and any advice
given by the Investor or any of its representatives or agents in connection with the Exchange, this Agreement, any other document or agreement
delivered in connection herewith or therewith or the transactions contemplated hereby and thereby is merely incidental to the Investor’s
acceptance of the New Note. The Company further represents to the Investor that the Company’s decision to enter into the Exchange
has been based solely on the independent evaluation by the Company and its representatives.

 

    	 	2	 

    	 

    

 

3.          Representations
and Warranties of the Investor. The Investor hereby represents, warrants and covenants that:

 

3.1.       Organization.
The Investor is a limited liability company duly organized, validly existing and in good standing under the laws of the State of California,
with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. The
Investor is not in violation nor default of any of the provisions of its certificate of limited partnership, limited partnership agreement
or other organizational or charter documents. The Investor is duly qualified to conduct business and is in good standing as a foreign
corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification
necessary, and no claim, action or proceeding of any kind has been instituted in any such jurisdiction revoking, limiting or curtailing
or seeking to revoke, limit or curtail such power and authority or qualification.

 

3.2.       Authorization.
This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and shall constitute the legal,
valid and binding obligations of the Investor enforceable against the Investor in accordance with their respective terms, except as such
enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. The execution,
delivery and performance by the Investor of this Agreement and the consummation by the Investor of the transactions contemplated hereby
and thereby will not: (i) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become
a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Investor is a party or by which it is bound; or (ii) result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities or “blue sky” laws) applicable to the Investor.

 

3.3.       Accredited
Investor Status; Investment Experience. The Investor is an “accredited investor” as that term is defined in Rule 501(a)
of Regulation D. The Investor can bear the economic risk of its investment in the New Note, and has such knowledge and experience in financial
and business matters that it is capable of evaluating the merits and risks of an investment in the New Note.

 

3.4.       No
Governmental Review. The Investor understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the New Note or the fairness or suitability of the investment in the
New Note nor have such authorities passed upon or endorsed the merits of the offering of the New Note.

 

3.5.       Ownership
of Securities. The Investor owns and holds, beneficially and of record, the entire right, title, and interest in and to the Original
Note free and clear of all rights and liens (other than pledges or security interests (x) arising by operation of applicable securities
laws and (y) that the Investor may have created in favor of a prime broker under and in accordance with its prime brokerage agreement
with such broker). The Investor has full power and authority to transfer and dispose of the Original Note to the Company free and clear
of any right or lien. Other than the transactions contemplated by this Agreement, there is no outstanding, plan, pending proposal, or
other right of any person or entity to acquire all or any part of the Original Note or any shares of Common Stock issuable upon the delivery
of the Conversion Notice and corresponding deduction of the face amount of the New Note.

 

4.          Additional
Covenants

 

4.1.       Blue
Sky. The Company shall make all filings relating to the Exchange required by Regulation D under the Securities Act and under applicable
securities or “blue sky” laws of the states of the United States following the date hereof.

 

4.2.       Fees
and Expenses. Each party to this Agreement shall pay the fees and expenses of its advisers, counsel, accountants and other experts,
if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of
this Agreement.

 

    	 	3	 

    	 

    

 

4.3.       Noncircumvention.
The Company hereby covenants and agrees that the Company will not, by amendment of the Company’s certificate of incorporation or
other charter documents, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution,
issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Agreement, and will at all times in good faith carry out all of the provisions of this Agreement take all action as may be required
to protect the rights of the Investor under this Agreement. Without limiting the generality of the foregoing or any other provision of
this Agreement, the Company (a) shall not increase the par value of any shares of Common Stock issuable pursuant to the terms of
this Agreement above the Conversion Price (as defined in the New Note) then in effect, and (b) shall take all such actions as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock
upon issuance of such Common Stock to the Investor pursuant to the terms of this Agreement. Notwithstanding anything herein to the contrary,
if at any time the Investor is not permitted receive all the shares of Common Stock the Investor is entitled to receive pursuant to the
terms of this Agreement for any reason, the Company shall use its best efforts to promptly remedy such failure, including, without limitation,
obtaining such consents or approvals as necessary to permit the issuance of such shares of Common Stock.

 

5.          Miscellaneous

 

5.1.       Successors
and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the parties hereto and the respective successors and assigns of the parties. Nothing in this Agreement, express or implied,
is intended to confer upon any party, other than the parties hereto or their respective successors and assigns, any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

5.2.       Governing
Law; Exclusive Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal laws of the State of Nevada, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of Nevada or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of Nevada. Each party hereby irrevocably submits to the exclusive jurisdiction of the state or federal courts sitting
in Clark County, Nevada, 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 suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each of the parties hereby waives any objection to such exclusive
jurisdiction and that such courts represent an inconvenient forum.

 

5.3.       Notices.
All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently
given if delivered to the addressees in person, by FedEx or similar overnight next business day delivery, or by email followed by overnight
next business day delivery, to the address as provided for on the signature page to this agreement.

 

5.4.       Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Investor.

 

5.5.       Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this
Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance
with its terms so long as this Agreement as so modified continues to express, without material change, the original intentions of the
parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does
not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits
that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid
or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid
or unenforceable provision(s).

 

    	 	4	 

    	 

    

 

5.6.       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

6.          Definitions.
For purposes of this Agreement, the following words and terms shall have the following meanings:

 

6.1.       “Conversion
Shares” shall have the meaning ascribed thereto in the New Note.

 

6.2.       “Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

6.3.       “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

6.4.       “Transaction
Documents” means this Agreement, the New Note, and all exhibits and schedules thereto and hereto and any other documents or
agreements executed in connection with the transactions contemplated hereunder.

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

    	 	5	 

    	 

    

 

IN WITNESS WHEREOF, the parties
have caused this Agreement to be duly executed and delivered as of the date provided above.

 

 

	 	
    COMPANY:

     

	 	
    IMPERALIS
    HOLDING CORP.

     

     

     

	 	By:  /s/ VINCENT ANDREULA
	 	
    Name: Vincent Andreula

    Title:   Chief Executive Officer

 

 

Address for Notices:

 

    	 	6	 

    	 

    

 

IN WITNESS WHEREOF, the parties have caused this
Agreement to be duly executed and delivered as of the date provided above.

 

 

	 	INVESTOR:
	 	 
	 	DIGITAL POWER LENDING, LLC
	 	 
	 	 
	 	 
	 	By: /s/ DAVID J. KATZOFF
	 	Name: David J. Katzoff
	 	Title: Manager
	 	 
	 	 
	 	Address for Notices:
	 	 
	 	 
	 	Email: 
	 	 

 

	 	EIN#: 	 	 

 

    	 	7	 

    	 

    

 

EXHIBIT A

Convertible Promissory Note

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