Document:

CLEANSPARK, INC.

 

SENIOR SECURED REDEEMABLE CONVERTIBLE PROMISSORY
NOTE

 

 

I.       Terms
of Note.

A.       Designation
and Amount. This Senior Secured Redeemable Convertible Promissory Note (“Note”) is issued and delivered
to the holder of this Note (each, a “Holder” and collectively, the “Holders”) by CleanSpark,
Inc., a Nevada corporation (“Corporation”), in the aggregate face value of $10,750,000.00 (“Face Value”)
on April 17, 2019 (“Issuance Date”). The Corporation will pay the Face Value to Investor in full on the Maturity
Date.

B.       Ranking.
This Note will rank pari passu with the Senior Secured Redeemable Convertible Debenture in the face value of $5,250,000.00 issued
December 31, 2018, and senior to all common stock, preferred stock, other existing and all future indebtedness of the Corporation.

C.       Interest.

1.       Commencing
on the Issuance Date, this Note will accrue compound interest (“Interest”) at a rate equal to 7.5% per annum,
subject to adjustment as provided in this Note (“Interest Rate”), of the Face Value. The Interest Rate will
retroactively increase by 10% per annum upon each occurrence of any Trigger Event (e.g. to 17.5% upon the first Trigger Event).
Interest will be payable with respect to any portion of the Face Value of the Note upon any of the following: (a) upon redemption
of the Note in accordance with Section I.F; (b) upon conversion of all or any portion of the Note in accordance with Section I.G,
only with respect to that portion which is converted; (c) when, as and if otherwise declared by the board of directors of the Corporation;
and (d) the Maturity Date. The Interest Rate used for calculation of the Liquidation Value, Early Redemption Price and Conversion
Premium, as applicable, and the amount of Interest owed will be calculated and determined at close of the Trading Market immediately
prior to the Notice Time.

2.       Interest,
as well as any applicable Liquidation Value payable hereunder, will be paid: (a) provided no Trigger Event has occurred, in the
Corporation’s sole and absolute discretion, immediately in cash; or (b) following the occurrence of a Trigger Event, or if
Corporation does not for any reason whatsoever timely notify and pay Holder as provided in Section I.G.1.c below, in shares
of Common Stock valued at the Market Price. In no event will the Market Price be below the par value per share. All amounts that
are required or permitted to be paid in cash pursuant to this Note will be paid by wire transfer of immediately available funds
to an account designated by Holder.

3.       So
long as any portion of this Note is outstanding, the Company will not repurchase shares of Common Stock other than as payment of
the exercise or conversion price of a convertible security or payment of withholding tax, and no dividends or other distributions
will be paid, declared or set apart with respect to any Common Stock, except for Purchase Rights.

    	 		 

    	 

    

 

D.       Protective
Provision.

1.       So
long as any portion of this Note is outstanding, the Corporation will not, without written approval of the Holders of a majority
of the Note then outstanding, alter or amend this Note.

2.       A
“Deemed Liquidation Event” will mean: (a) a merger or consolidation in which the Corporation is a constituent party
or a subsidiary of the Corporation is a constituent party and the Corporation issues shares of its capital stock pursuant to such
merger or consolidation, except any such merger or consolidation involving the Corporation or a subsidiary in which the shares
of capital stock of the Corporation outstanding immediately prior to such merger or consolidation continue to represent, or are
converted into or exchanged for shares of capital stock that represent, immediately following such merger or consolidation, at
least a majority, by voting power, of the capital stock of the surviving or resulting corporation or if the surviving or resulting
corporation is a wholly owned subsidiary of another corporation immediately following such merger or consolidation, the parent
corporation of such surviving or resulting corporation; (b) Corporation issues securities that are senior to the Note in any respect,
(c) Holder does not receive the number of Conversion Shares stated in a Conversion Notice with 5 Trading Days of the Notice Time;
(d) trading of the Common Stock is halted or suspended by the Trading Market or any U.S. governmental agency for 5 or more consecutive
trading days; or (e) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related
transactions, by the Corporation or any subsidiary of the Corporation of all or substantially all the assets of the Corporation
and its subsidiaries taken as a whole, or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries
of the Corporation if substantially all of the assets of the Corporation and its subsidiaries taken as a whole are held by such
subsidiary or subsidiaries.

3.       The
Corporation will not have the power to close or effect a voluntary Deemed Liquidation Event unless the agreement or plan of merger
or consolidation for such transaction provides that the consideration payable to the stockholders of the Corporation will be allocated
among the holders of capital stock of the Corporation in accordance with Section I.E, and the required amount is paid to Holder
prior to or upon closing, effectuation, or occurrence of the Deemed Liquidation Event.

E.       Liquidation.

1.       Upon
any liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, prior to any distribution or payment
made to any other creditors or the holders of any Preferred Stock or Common Stock by reason of their ownership thereof, the Holders
of this Note will be entitled to be paid out of the assets of the Corporation available for distribution to its creditors an amount
with respect to the then-outstanding Face Value, plus an amount equal to any accrued but unpaid Interest thereon (collectively
with the Face Value, the “Liquidation Value”). If, upon any liquidation, dissolution or winding up of the Corporation,
whether voluntary or involuntary, the amounts payable with respect to the Note are not paid in full, the Holders will share equally
and ratably in any distribution of assets of the Corporation in proportion to the liquidation preference and an amount equal to
all accumulated and unpaid Interest, if any, to which each such Holder is entitled.

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2.       If,
upon any liquidation, dissolution or winding up of the Corporation, the assets of the Corporation will be insufficient to make
payment in full to all Holders, then the assets distributable to the Holders will be distributed among the Holders at the time
outstanding, ratably in proportion to the full amounts to which they would otherwise be respectively entitled.

F.       Redemption.

1.       Corporation’s
Redemption Option.  On the Maturity Date, the Corporation may redeem paying Holder in cash an amount per share equal to
100% of the Liquidation Value for the shares redeemed.

2.       Early
Redemption. Prior to the Maturity Date, provided that no Trigger Event has occurred, the Corporation will have the right
at any time upon 30 Trading Days’ prior written notice, in its sole and absolute discretion, to redeem all or any portion
of the Note then outstanding by paying Holder in cash by wire transfer of immediately available funds an amount (the “Early
Redemption Price”) equal to 145% of the then-outstanding Face Value.

4.       Mandatory
Redemption.  If the Corporation determines to liquidate, dissolve or wind-up its business and affairs, or effect any Deemed
Liquidation Event, the Corporation will, within three Trading Days of such determination and prior to effectuating any such action,
redeem this Note for cash, by wire transfer of immediately available funds to an account designated by Holder, at the Early Redemption
Price set forth in Section I.F.2 if the event is prior to the Maturity Date, or at the Liquidation Value if the event is
on or after the Maturity Date.

5.       Mechanics
of Redemption. In order to redeem any portion of this Note then outstanding, 30 Trading Days prior to payment the Corporation
must deliver written notice (each, a “Redemption Notice”) to Holder setting forth (a) the Face Value the Corporation
is redeeming, (b) the applicable Interest Rate, Liquidation Value and Early Redemption Price, and (c) the calculation of the amount
paid. Upon receipt of full payment in cash for the entire Note, each Holder will promptly submit to the Corporation such Holder’s
Note. For the avoidance of doubt, the delivery of a Redemption Notice shall not affect Holder’s rights under Section I.G
until after receipt of cash payment by Holder.

G.       Conversion.

1.       Mechanics
of Conversion.

a.       All
or any portion of the Face Value of the Note may be converted, in part or in whole, into shares of Common Stock, at any time or
times after the Issuance Date, in the sole and absolute discretion of Holder or, subject to the terms and conditions hereof, the
Corporation; (i) if at the option of Holder, by delivery of one or more written notices to the Corporation or its transfer agent
(each, a “Holder Conversion Notice”), of the Holder’s election to convert any or all of the Note or (ii)
if at the option of the Corporation, if the Equity Conditions are met, delivery of written notice to Holder (each, a “Corporation
Conversion Notice” and, with the Holder Conversion Notice, each a “Conversion Notice”), of the Corporation’s
election to convert all of any portion of the Note.

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b.       Each
Delivery Notice (as defined below) will set forth the amount of Face Value of Note being converted, the Conversion Premium and
the minimum number of Conversion Shares as of the time the Delivery Notice is given (the “Notice Time”), and
the calculation thereof.

c.       As
soon as practicable, and in any event within 1 Trading Day after the Notice Date, time being of the essence, the Corporation will
do all of the following: (i) transmit the Delivery Notice by facsimile or electronic mail to the Corporation’s transfer agent
(the “Transfer Agent”), copying Holder, with instructions to immediately comply with the Delivery Notice and
deliver the number of Conversion Shares stated in the Delivery Notice forthwith; (ii) either (A) if the Corporation is approved
through The Depository Trust Corporation (“DTC”), authorize and instruct the credit by the Transfer Agent of
the number of Conversion Shares set forth in the Delivery Notice, to Holder’s or its designee’s balance account with
the DTC Fast Automated Securities Transfer (FAST) Program, through its Deposit/Withdrawal at Custodian (DWAC) system, or (B) only
if the Corporation is not approved through DTC, issue and surrender to a common carrier for overnight delivery to the address as
specified in the Delivery Notice a certificate bearing no restrictive legend, registered in the name of Holder or its designee,
for the number of Conversion Shares set forth in the Delivery Notice; and (iii) if it contends that the Delivery Notice is in any
way incorrect, so notify Holder and provide a thorough written explanation and its own calculation, or the Delivery Notice and
the calculations therein will conclusively be deemed correct for all purposes. The Corporation will at all times diligently take
or cause to be taken all actions necessary to cause the Conversion Shares to be issued forthwith. If the Conversion Shares are
not registered for resale, Investor will provide a legal opinion that they are exempt from registration. Under no circumstances
will the Corporation issue a share certificate bearing a restrictive legend.

d.       If
during or at the end of the Measurement Period the Holder is entitled to receive additional Conversion Shares with regard to an
Initial Notice, Holder may at any time deliver one or more additional written notices to the Corporation or its transfer agent
(each, an “Additional Notice” and with the Initial Notice, each a “Delivery Notice”) setting
forth the additional number of Conversion Shares to be delivered, and the calculation thereof.

e.       If
the Corporation for any reason does not issue or cause to be issued to the Holder within 3 Trading Days after the date of a Delivery
Notice, the number of Conversion Shares stated in the Delivery Notice, then, in addition to all other remedies available to the
Holder, as liquidated damages and not as a penalty, the Corporation will pay in cash to the Holder on each day after such 2nd Trading
Day that the issuance of such Conversion Shares is not timely effected an amount equal to 2% of the product of (i) the aggregate
number of Conversion Shares not issued to the Holder on a timely basis and to which the Holder is entitled and (ii) the highest
Closing Price of the Common Stock between the date on which the Corporation should have issued such shares to the Holder and the
actual date of receipt of Conversion Shares by Holder. It is intended that the foregoing will serve to reasonably compensate Holder
for any delay in delivery of Conversion Shares, and not as punishment for any breach by the Corporation. The Corporation acknowledges
that the actual damages likely to result from delay in delivery are difficult to estimate and would be difficult for Holder to
prove.

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f.       Notwithstanding
any other provision: all of the requirements of Section I.F and this Section I.G are each independent covenants;
the Corporation’s obligations to issue and deliver Conversion Shares upon any Delivery Notice are absolute, unconditional
and irrevocable; any breach or alleged breach of any representation or agreement, or any violation or alleged violation of any
law or regulation, by any party or any other person will not excuse full and timely performance of any of the Corporation’s
obligations under these sections; and under no circumstances may the Corporation seek or obtain any temporary, interim or preliminary
injunctive or equitable relief to prevent or interfere with any issuance of Conversion Shares to Holder.

g.       Company
acknowledges and agrees that monetary damages would be difficult to quantify and prove, and that Holder would not have an adequate
remedy at law for any failure to fully perform under this Section G. If for any reason whatsoever Holder does not timely
receive the number of Conversion Shares stated in any Delivery Notice, Holder will be entitled to a compulsory remedy of immediate
specific performance, temporary, interim and, preliminary and final injunctive relief requiring Corporation and its transfer agent,
attorneys, officers and directors to immediately issue and deliver the number of Conversion Shares stated by Holder, which requirement
will not be stayed for any reason, without the necessity of posting any bond, and which Corporation may not seek to stay or appeal.

h.       No
fractional shares of Common Stock are to be issued upon conversion of this Note, but rather the Corporation will round up to the
nearest full share. The Holder will not be required to deliver the original of this Note in order to effect a conversion hereunder.
The Corporation will pay any and all taxes which may be payable with respect to the issuance and delivery of any Conversion Shares.

2.       Holder
Conversion. In the event of a conversion of any portion of this Note pursuant to a Holder Conversion Notice, the Corporation
will (a) satisfy the payment of Conversion Premium as provided in Section I.C.2, and (b) issue to the Holder of this Note
a number of Conversion Shares equal to the Face Value divided by the applicable Conversion Price with respect to the amount of
Note converted; all in accordance with the procedures set forth in Section I.G.1.

3.       Corporation
Conversion. The Corporation will have the right to send the Holder a Corporation Conversion Notice at any time in its sole
and absolute discretion, if the Equity Conditions are met as of the time such Corporation Conversion Notice is given. Upon any
conversion of any portion of this Note pursuant to a Corporation Conversion Notice, the Corporation will on the date of such notice
(a) satisfy the payment of Conversion Premium as provided in Section I.C.2, and (b) issue to the Holder of this Note a number
of Conversion Shares equal to the Face Value divided by the applicable Conversion Price with respect to the amount of Note converted;
all in accordance with the procedures set forth in Section I.G.1.

4.       Stock
Splits. If the Corporation at any time on or after the issuance of this Note subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the
applicable Conversion Price and other share based metrics in effect immediately prior to such subdivision will be proportionately
reduced and the number of shares of Common Stock issuable

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will be proportionately increased. If the
Corporation at any time on or after such Issuance Date combines (by combination, reverse stock split or otherwise) one or more
classes of its outstanding shares of Common Stock into a smaller number of shares, the applicable Conversion Price and other share
based metrics in effect immediately prior to such combination will be proportionately increased and the number of Conversion Shares
will be proportionately decreased. Any adjustment under this Section will become effective at the close of business on the date
the subdivision or combination becomes effective.

5.       Rights.
In addition to any other adjustments, if at any time the Corporation grants, issues or sells any options, convertible securities
or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common
Stock (the “Purchase Rights”), then Holder will be entitled to acquire, upon the terms applicable to such Purchase
Rights, the aggregate Purchase Rights which Holder could have acquired if Holder had held the number of shares of Common Stock
acquirable upon conversion of the entire Note held by Holder immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of
Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

6.       Definitions.
 The following terms will have the following meanings:

a.                 
“Conversion Premium” with respect to any amount of this Note that is converted prior to the Maturity
Date means the Face Value of the amount converted, multiplied by the product of (i) the applicable Interest Rate, and (ii) the
number of whole years between the Issuance Date and the Maturity Date.

b.                 
“Conversion Price” means, if there has never been a Trigger Event, a price per share of Common Stock
equal to 90% of the Market Price less $0.075 per share, but no less than the Floor Price, subject to adjustment as otherwise provided
herein. Upon the occurrence of each Trigger Event the percentage in the preceding sentence will decrease by 10% (e.g. to 80% upon
the first Trigger Event).

c.                  
“Conversion Shares” means all shares of Common Stock that are required to be or may be issued upon
conversion of this Note.

d.                 
“Equity Conditions” means on each day during the Measuring Period, (i) the Common Stock is not under
chill or freeze from DTC, (ii) the Common Stock is designated for trading on a OTCQB or higher stock market and shall not have
been suspended from trading on such market, and delisting or suspension by the Trading Market has not been threatened or pending,
either in writing by such market or because Company has fallen below the then effective minimum listing maintenance requirements
of such market; (iii) the Corporation has delivered Conversion Shares upon all conversions or redemptions of this Note in accordance
with their terms to the Holder on a timely basis; (iv) the Corporation will have no knowledge of any fact that would cause both
of the following (A) a registration statement not to be effective and available for the resale of all Conversion Shares, and (B)
Section 3(a)(9) under the Securities Act of 1933, as amended, not to be available for the issuance of all Conversion Shares, or
Securities Act Rule 144 not to be available for the resale of all the Conversion Shares without

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restriction; (v) there has been a minimum
average trading volume of $2 million per day in the prior 40 Trading Days; (vi) all shares of Common Stock to which Holder is entitled
have been timely received into Holder’s designated account in electronic form fully cleared for trading; (vii) the Corporation
otherwise shall have been in compliance with and shall not have breached any provision, covenant, representation or warranty of
any Transaction Document; and (viii) not more than 3 Trigger Events shall have occurred.

e.                  
“Floor Price” means $0.35 per share of Common Stock after Approval is obtained, and $1.00 per share
of Common Stock before Approval is obtained.

f.                  
“Maturity Date” means the date that is the 2-year anniversary of the Issuance Date.

g.                 
“Market Price” means the mathematical average of the 5 lowest individual daily volume weighted average
prices of the Common Stock during the Measuring Period, which may be non-consecutive.

h.                 
“Measuring Period” means the period beginning on the Issuance Date and ending on the Maturity Date.

i.                   
 “Purchase Agreement” means the Purchase Agreement or other agreement pursuant to which the Note
is issued, including all exhibits thereto and all related Transaction Documents as defined therein.

j.                   
 “Trading Day” means any day on which the Common Stock is traded on the Trading Market.

k.                 
“Trading Market” means OTCQB or whatever higher market is at the applicable time, the principal U.S.
trading exchange or market for the Common Stock. All Trading Market data will be measured as provided by the appropriate function
of the Bloomberg Professional service of Bloomberg Financial Markets or its successor performing similar functions.

7.       Issuance
Limitation. Notwithstanding any other provision, at no time may the Corporation issue shares of Common Stock to Holder
which, when aggregated with all other shares of Common Stock then deemed beneficially owned by Holder, would result in Holder owning
more than 4.99% of all Common Stock outstanding immediately after giving effect to such issuance, as determined in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder; provided, however, that Holder may increase
such amount to 9.99% upon not less than 61 days’ prior notice to the Corporation. Corporation and its transfer agent will
immediately provide Holder with the then total number of outstanding shares of Common Stock at any time upon request. No provision
of this paragraph may be waived by Holder or the Corporation.

8.       Conversion
at Maturity. Subject to the foregoing paragraph, provided no Trigger Event has occurred, on the Maturity Date, all remaining
outstanding Note will be automatically converted into shares of Common Stock at the Conversion Price.

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H.       Trigger
Event.

1.       Any
occurrence of any one or more of the following, at any time and for any reason whatsoever, will constitute a “Trigger
Event”:

a.       Holder
does not timely receive the number of Conversion Shares stated in any Conversion Notice, time being of the essence; or Holder does
not timely receive the number of Warrant Shares stated in any Exercise Notice, time being of the essence

b.       The
issuance of restricted shares if Holder provides a legal opinion that shares may be issued without restrictive legend, or the issuance
of a certificate if Holder requests electronic delivery via DTC;

c.       Any
violation of or failure to timely perform any covenant or provision of this Note, the Purchase Agreement, or any Transaction Document,
related to payment of cash, registration, authorization, reservation, issuance or delivery of Conversion Shares or Warrant Shares,
time being of the essence;

d.       Any
violation of or failure to perform any covenant or provision of this Note, the Purchase Agreement, the Warrant, or any Transaction
Document, which in the case of a default that is curable, is not related to payment of cash, registration, reservation or delivery
of Conversion Shares, and has not occurred before, is not cured within 5 Trading Days of written notice thereof;

e.       Any
representation or warranty made in the Purchase Agreement or any Transaction Document is untrue or incorrect in any respect as
of the date when made or deemed made;

f.       The
occurrence of any default or event of default under any material agreement, lease, document or instrument to which the Corporation
or any subsidiary is obligated with a value of $250,000 or more, including without limitation of an aggregate of at least $250,000
of indebtedness, not disclosed in the Disclosure Schedules;

g.       While
any Registration Statement is required to be maintained effective pursuant to any Transaction Document, the effectiveness of the
Registration Statement lapses for any reason, including, without limitation, the issuance of a stop order, or the Registration
Statement, or the prospectus contained therein, is unavailable to Holder sale of all Conversion Shares and all Warrant Shares for
any 10 or more Trading Days, which may be non-consecutive;

h.       The
suspension from trading or the failure of the Common Stock to be trading or listed on the Trading Market, or failure to meet the
requirements for continued listing on the Trading Market;

i.       The
Corporation’s notice, written or oral, to Holder, including without limitation, by way of public announcement or through
any of its attorneys, agents, or representatives, of its intention not to comply, as required, with a Conversion Notice at any
time, including without limitation any objection or instruction to its transfer agent not to comply with any notice from Holder;

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j.       Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or
against the Corporation or any subsidiary and, if instituted against the Corporation or any subsidiary by a third party, an order
for relief is entered or the proceedings are not dismissed within 30 days of their initiation;

k.       The
appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, or other similar official of the Corporation
or any subsidiary or 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
Corporation or any Subsidiary in furtherance of any such action or the taking of any action by any person to commence a foreclosure
sale or any other similar action under any applicable law;

l.       A
judgment or judgments for the payment of money aggregating in excess of $250,000 are rendered against the Corporation or any of
its subsidiaries and are not stayed or satisfied within 30 days of entry;

m.       The
Corporation does not for any reason timely comply with any applicable reporting requirement of the Securities Exchange Act of 1934,
as amended, and the regulations promulgated thereunder, including without limitation timely filing when first due all public reports
and filings;

n.       Any
regulatory, administrative or enforcement proceeding is initiated against Corporation or any subsidiary (except to the extent an
adverse determination would not have a material adverse effect on the Company’s business, properties, assets, financial condition
or results of operations or prevent the performance by the Company of any material obligation under the Transaction Documents);

o.       Any
material provision of this Note is 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 Corporation or any subsidiary or any governmental authority having jurisdiction
over any of them, seeking to establish the invalidity or unenforceability thereof, or the Corporation or any subsidiary denies
that it has any liability or obligation purported to be created under this Note; or

p.       The
failure of one or more Equity Conditions other than (v).

2.       It
is intended that all adjustments made following a Trigger Event will serve to reasonably compensate Holder for the change in circumstances,
potential consequences and increased risk in light of the occurrence of a Trigger Event, and not as a penalty or punishment for
any breach by the Corporation. The Corporation acknowledges that the actual damages likely to result from a Trigger Event are difficult
to estimate and would be difficult for Holder to prove.

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II.       Miscellaneous.

A.       Notices.
Any and all notices to the Corporation will be addressed to the Corporation’s Chief Executive Officer at the Corporation’s
principal place of business on file with the Secretary of State of the State of Nevada. Any and all notices or other communications
or deliveries to be provided by the Corporation to any Holder hereunder will be in writing and delivered personally, by electronic
mail or facsimile, sent by a nationally recognized overnight courier service addressed to each Holder at the electronic mail, facsimile
telephone number or address of such Holder appearing on the books of the Corporation, or if no such electronic mail, facsimile
telephone number or address appears, at the principal place of business of the Holder. Any notice or other communication or deliveries
hereunder will be deemed given and effective on the earliest of (1) the date of transmission, if such notice or communication is
delivered via facsimile or electronic mail prior to 5:30 p.m. New York time, (2) the date after the date of transmission, if such
notice or communication is delivered via facsimile or electronic mail later than 5:30 p.m. but prior to 11:59 p.m. New York time
on such date, (3) the second business day following the date of mailing, if sent by nationally recognized overnight courier service,
or (4) upon actual receipt by the party to whom such notice is required to be given, regardless of how sent.

B.       Lost
or Mutilated Note. Upon receipt of evidence reasonably satisfactory to the Corporation (an affidavit of the registered
Holder will be satisfactory) of the ownership and the loss, theft, destruction or mutilation of any certificate evidencing this
Note, and in the case of any such loss, theft or destruction upon receipt of indemnity reasonably satisfactory to the Corporation
(provided that if the Holder is a financial institution or other institutional investor its own agreement will be satisfactory)
or in the case of any such mutilation upon surrender of such certificate, the Corporation will, at its expense, execute and deliver
in lieu of such certificate a new certificate of like kind representing the Face Value represented by such lost, stolen, destroyed
or mutilated certificate and dated the date of such lost, stolen, destroyed or mutilated certificate.

C.       Headings.
The headings contained herein are for convenience only, do not constitute a part of this Note and will not be deemed to limit or
affect any of the provisions hereof.

IN WITNESS WHEREOF,
the undersigned have executed this Note on April 17, 2019.

 

Signed: ______________

Name: ______________

Title: ______________ 

 

    	 	10Warrant

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED
OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS SUCH
SALE, TRANSFER, PLEDGE OR HYPOTHECATION IS IN ACCORDANCE WITH SUCH ACT AND APPLICABLE STATE SECURITIES LAWS.

Warrant No. _______

No. of Shares of Common Stock:
2,300,000 shares

WARRANT

to Purchase Common Stock of

CleanSpark, Inc.

a Nevada Corporation

This Warrant certifies
that ____________________ (“Purchaser”), is entitled to purchase from CleanSpark, Inc., a Nevada corporation
(“Company”), 2,300,000 shares of Common Stock (or any portion thereof) at an exercise price of $3.50 per share
with respect to 2,000,000 shares, $4.00 with respect to 100,000 shares, $5.00 with respect to 100,000 shares, $7.50 with respect
to 50,000 shares, and $10.00 with respect to 50,000 shares, in each case subject to adjustment hereunder (each, an “Exercise
Price”), all on the terms and conditions hereinafter provided.

Section 1. Certain
Definitions. As used in this Warrant, unless the context otherwise requires:

“Articles”
shall mean the Articles of Incorporation of the Company, as in effect from time to time.

“Common
Stock” shall mean the Company’s authorized common stock, $0.001 par value per share.

“Exercise
Price” shall mean the exercise price per share of Common Stock set forth above, as adjusted from time to time pursuant
to Section 3 hereof.

“Securities
Act” shall mean the Securities Act of 1933, as amended.

“Warrant”
shall mean this Warrant and all additional or new warrants issued upon division or combination of, or in substitution for, this
Warrant. All such additional or new warrants shall at all times be identical as to terms and conditions and date, except as to
the number of shares of Common Stock for which they may be exercised.

“Warrant
Stock” shall mean the shares of Common Stock purchasable by the holder of this Warrant upon the exercise of such Warrant.

“Warrantholder”
shall mean the Purchaser, as the initial holder of this Warrant, and its nominees, successors or assigns, including any subsequent
holder of this Warrant to whom it has been legally transferred.

Section 2. Exercise
of Warrant; Vesting.

(a)       Purchaser
may, at any time and from time to time, exercise this Warrant, in whole or in part. This warrant expires in three years from the
date hereof.

    	 		 

    	 

    

(b)       (i)
The Warrantholder shall exercise this Warrant by means of delivering to the Company at its office identified in Section 14 hereof
(i) a written notice of exercise, including the number of shares of Warrant Stock to be delivered pursuant to such exercise, (ii)
this Warrant and (iii) payment equal to the Exercise Price in accordance with Section 2(b)(ii). In the event that any exercise
shall not be for all shares of Warrant Stock purchasable hereunder, the Company shall deliver to the Warrantholder a new Warrant
registered in the name of the Warrantholder, of like tenor to this Warrant and for the remaining shares of Warrant Stock purchasable
hereunder, within ten (10) days of any such exercise. Such notice of exercise shall be in the Subscription Form set out at the
end of this Warrant.

(ii) The Warrantholder
may elect to pay the Exercise Price to the Company either by cash, certified check or wire transfer.

(c)       Upon
exercise of this Warrant and delivery of the Subscription Form with proper payment relating thereto, the Company shall cause to
be delivered to the Warrantholder via DWAC the aggregate number of fully-paid and nonassessable shares of Common Stock issuable
upon such exercise.

(d)       The
Warrant Stock to be delivered in accordance with this Section 2 shall be in such denominations as may be specified in said notice
of exercise and shall be registered in the name of the Warrantholder or such other name or names as shall be designated in said
notice. Such certificate or certificates shall be deemed to have been issued and the Warrantholder or any other person so designated
to be named therein shall be deemed to have become the holder of record of such shares, including to the extent permitted by law
the right to vote such shares or to consent or to receive notice as stockholders, as of the time said notice is delivered to the
Company as aforesaid.

(e)       The
Company shall pay all expenses payable in connection with the preparation, issue and delivery of stock certificates under this
Section 2, resulting from the exercise of the Warrant and the issuance of Warrant Stock hereunder.

(f)       All
shares of Warrant Stock issuable upon the exercise of this Warrant in accordance with the terms hereof shall be validly issued,
fully paid and nonassessable, and free from all liens and other encumbrances thereon, other than liens or other encumbrances created
by the Warrantholder.

(g)       In
no event shall any fractional share of Common Stock of the Company be issued upon any exercise of this Warrant. If, upon any exercise
of this Warrant, the Warrantholder would, except as provided in this paragraph, be entitled to receive a fractional share of Common
Stock, then the Company shall deliver in cash to such holder an amount equal to such fractional interest.

Section 3. Adjustment
of Exercise Price and Warrant Stock.

(a)       If,
at any time prior to the Expiration Date, the number of outstanding shares of Common Stock is (i) increased by a stock dividend
payable in shares of Common Stock or by a subdivision or split-up of shares of Common Stock, or (ii) decreased by a combination
of shares of Common Stock, then, following the record date fixed for the determination of holders of Common Stock entitled to receive
the benefits of such stock dividend, subdivision, split-up, or combination, the Exercise Price shall be adjusted to a new amount
equal to the product of (I) the Exercise Price in effect on such record date and (II) the quotient obtained by dividing (x) the
number of shares of Common Stock outstanding on such record date (without giving effect to the event referred to in the foregoing
clause (i) or (ii)), by (y) the number of shares of Common Stock which would be outstanding immediately after the event referred
to in the foregoing clause (i) or

    	 	2	 

    	 

    

(ii), if such event had occurred immediately
following such record date. In addition, the Exercise Price may be adjusted in other circumstances set forth in Article 5 of Exhibit
A of the Articles.

(b)       Upon
each adjustment of the Exercise Price as provided in Section 3 (a), the Warrantholder shall thereafter be entitled to subscribe
for and purchase, at the Exercise Price resulting from such adjustment, the number of shares of Warrant Stock equal to the product
of (i) the number of shares of Warrant Stock existing prior to such adjustment and (ii) the quotient obtained by dividing (I) the
Exercise Price existing prior to such adjustment by (II) the new Exercise Price resulting from such adjustment.

(c)       If,
at any time prior to the Expiration Date, there occurs an event which would cause the automatic conversion (“Automatic Conversion”)
of the Warrant Stock into shares of the Company’s common stock (“Common Stock”) in accordance with the Articles,
then any Warrant shall thereafter be exercisable, prior to the Expiration Date, into the number of shares of Common Stock into
which the Warrant Stock would have been convertible pursuant to the Charter if the Automatic Conversion had not taken place.

Section 4. Division
and Combination. This Warrant may be divided or combined with other Warrants upon presentation at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Warrantholder or its agent or attorney. The Company shall pay all expenses in connection with the preparation, issue and delivery
of Warrants under this Section 4, including any transfer taxes resulting from the division or combination hereunder. The Company
agrees to maintain at its aforesaid office books for the registration of the Warrants.

Section 5. Reclassification,
Etc. In case of any reclassification or change of the outstanding Common of the Company (other than as a result of a subdivision,
combination or stock dividend), or in case of any consolidation of the Company with, or merger of the Company into, another corporation
or other business organization (other than a consolidation or merger in which the Company is the continuing corporation and which
does not result in any reclassification or change of the outstanding Common Stock of the Company) at any time prior to the Expiration
Date, then, as a condition of such reclassification, reorganization, change, consolidation or merger, lawful provision shall be
made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Warrantholder,
so that the Warrantholder shall have the right prior to the Expiration Date to purchase, at a total price not to exceed that payable
upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and property receivable upon such
reclassification, reorganization, change, consolidation or merger by a holder of the number of shares of Common Stock of the Company
which might have been purchased by the Warrantholder immediately prior to such reclassification, reorganization, change, consolidation
or merger, in any such case appropriate provisions shall be made with respect to the rights and interest of the Warrantholder to
the end that the provisions hereof (including provisions for the adjustment of the Exercise Price and of the number of shares purchasable
upon exercise of this Warrant) shall thereafter be applicable in relation to any shares of stock and other securities and property
thereafter deliverable upon exercise hereof.

Section 6. Reservation
and Authorization of Capital Stock. The Company shall at all times reserve and keep available for issuance such number of its
authorized but unissued shares of Common Stock as will be sufficient to permit the exercise in full of all outstanding Warrants.

Section 7. Stock
and Warrant Books. The Company will not at any time, except upon dissolution, liquidation or winding up, close its stock books
or Warrant books so as to result in preventing or delaying the exercise of any Warrant.

    	 	3	 

    	 

    

Section 8. Limitation
of Liability. No provisions hereof, in the absence of affirmative action by the Warrantholder to purchase Warrant Stock hereunder,
shall give rise to any liability of the Warrantholder to pay the Exercise Price or as a stockholder of the Company (whether such
liability is asserted by the Company or creditors of the Company).

Section 9. Registration
Rights. For as long as the Warrant remains outstanding, the Company covenants that it shall at all times maintain one or more
current and effective registration statements that the Warrantholder may utilize for the resale of all Warrant Shares.

Section 10. Transfer.
Subject to compliance with the Securities Act and the applicable rules and regulations promulgated thereunder, this Warrant and
all rights hereunder shall be transferable in whole or in part. Any such transfer shall be made at the office or agency of the
Company at which this Warrant is exercisable, by the registered holder hereof in person or by its duly authorized attorney, upon
surrender of this Warrant together with the assignment hereof properly endorsed, and promptly thereafter a new warrant shall be
issued and delivered by the Company, registered in the name of the assignee. Until registration of transfer hereof on the books
of the Company, the Company may treat the Purchaser as the owner hereof for all purposes.

Section 11. Investment
Representations; Restrictions on Transfer of Warrant Stock. Unless a current registration statement under the Securities Act
shall be in effect with respect to the Warrant Stock to be issued upon exercise of this Warrant, the Warrantholder, by accepting
this Warrant, covenants and agrees that, at the time of exercise hereof, and at the time of any proposed transfer of Warrant Stock
acquired upon exercise hereof, such Warrantholder will deliver to the Company a written statement that the securities acquired
by the Warrantholder upon exercise hereof are for the account of the Warrantholder or are being held by the Warrantholder as trustee,
investment manager, investment advisor or as any other fiduciary for the account of the beneficial owner or owners for investment
and are not acquired with a view to, or for sale in connection with, any distribution thereof (or any portion thereof) and with
no present intention (at any such time) of offering and distributing such securities (or any portion thereof).

Section 12. Loss,
Destruction of Warrant Certificates. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or
mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity and/or security satisfactory
to the Company or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Company will make and
deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to
purchase the same aggregate number of shares of Common Stock.

Section 13. Amendments.
The terms of this Warrant may be amended, and the observance of any term herein may be waived, but only with the written consent
of the Company and the Warrantholder.

Section 14. Notices
Generally. Any notice, request, consent, other communication or delivery pursuant to the provisions hereof shall be in writing
and shall be sent by one of the following means: (i) by registered or certified first class mail, postage prepaid, return receipt
requested; (ii) by facsimile transmission with confirmation of receipt; (iii) by nationally recognized courier service guaranteeing
overnight delivery; or (iv) by personal delivery, and shall be properly addressed to the Warrantholder at the last known address
or facsimile number appearing on the books of the Company, or, except as herein otherwise expressly provided, to the Company at
its principal executive office, or such other address or facsimile number as shall have been furnished to the party giving or making
such notice, demand or delivery.

    	 	4	 

    	 

    

Section 15. Successors
and Assigns. This Warrant shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective
permitted successors and assigns.

Section 16. Governing
Law. In all respects, including all matters of construction, validity and performance, this Warrant and the obligations arising
hereunder shall be governed by, and construed and enforced in accordance with the laws of the State of Nevada.

IN WITNESS WHEREOF,
the Company has caused this Warrant to be signed in its name by its Chief Executive Officer.

 

Dated: April 17, 2019CLEANSPARK,
INC.

 

 

By: _______________

Name: _______________

Title: _______________

 

    	 	5	 

    	 

    

 

SUBSCRIPTION FORM

(to be executed only upon exercise
of Warrant)

 

		To:	CleanSpark, Inc.

The undersigned,
pursuant to the provisions set forth in the attached Warrant (No. __ ), hereby irrevocably elects to purchase __________ shares
of the Common Stock covered by such Warrant and herewith makes payment of $__________, representing the full purchase price for
such shares at the price per share provided for in such Warrant.

[ ]        in
my name only; or

[ ]        in
the names of my spouse and myself as community property; or

[ ]        in
the names of my spouse and myself as joint tenants with the right of survivorship; or

[ ]        in
the name of the corporation or business enterprise set forth below, as my nominee.

 

Dated: ____________

Name: _______________________

Signature: _____________________

Address:
______________________

 

    	 	6

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