Document:

Ex.
10.2

 

Note

 

INCEPTION
MINING, INC.

 

SENIOR
SECURED REDEEMABLE CONVERTIBLE NOTE

 

I.
Terms of Note.

 

A.
Designation and Amount. This Senior Secured Redeemable Convertible Note (“Note”) is issued and delivered
to the holder of this Note (each, a “Investor” and collectively, the “Investors”), or order,
by Inception Mining, Inc., a Nevada corporation (“Company”), in the aggregate face value of $4,250,000.00 (“Face
Value”) on May 20, 2019 (“Issuance Date”). The Company will pay the Face Value to Investor in full
on the Maturity Date.

 

B.
Ranking. This Note will rank senior to all common stock, preferred stock, existing and future indebtedness of the Company.

 

C.
Interest.

 

1.
Commencing on the Issuance Date, this Note will accrue compound interest (“Interest”) at a rate equal to
10% 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 20% 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 Company; and (d) the Maturity Date. The Interest Rate used for calculation of the Liquidation Value, Early
Redemption Price and Accrual, 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 or Conversion Premium payable hereunder, will be paid: (a) provided
no Trigger Event has occurred, in the Company’s sole and absolute discretion, immediately in cash; or (b) following the
occurrence of a Trigger Event, or if Company does not for any reason whatsoever timely notify and pay Investor as provided in
Section I.G.1.c below, in shares of Common Stock valued at the Conversion Price. 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 Investor.

 

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.

 

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D.
Protective Provision.

 

1.
So long as any portion of this Note is outstanding, the Company will not, without written approval of the Investor, alter
or amend this Note.

 

2.
A “Deemed Liquidation Event” will mean: (a) a merger or consolidation in which the Company is a constituent
party or a subsidiary of the Company is a constituent party and the Company issues shares of its capital stock pursuant to such
merger or consolidation, except any such merger or consolidation involving the Company or a subsidiary in which the shares of
capital stock of the Company 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) Company issues securities that are senior to the Note in any respect, (c) Investor
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 Company or any subsidiary of the Company of all or substantially all the assets of the Company and its subsidiaries taken
as a whole, or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company if substantially
all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries.

 

3.
The Company 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 Company will be
allocated among the holders of capital stock of the Company in accordance with Section I.E, and the required amount is
paid to Investor 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 Company, 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 Investor will be entitled to be paid out of the assets of the Company 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 Company,
whether voluntary or involuntary, the amounts payable with respect to the Note are not paid in full, the Investors will share
equally and ratably in any distribution of assets of the Company in proportion to the liquidation preference and an amount equal
to all accumulated and unpaid Interest, if any, to which each such Investor is entitled.

 

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F.
Redemption.

 

1.
Company’s Redemption Option. On the Maturity Date, the Company
may redeem the Note by paying Investor in cash an amount equal to 100% of the Liquidation Value.

 

2.
Early Redemption. Prior to the Maturity Date, provided that no Trigger Event has occurred, the Company 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 Investor in cash by wire transfer of immediately available funds an amount (the
“Early Redemption Price”) equal to 140% of the then-outstanding Face Value.

 

4.
Mandatory Redemption. If the Company determines to liquidate, dissolve or wind-up its business and affairs, or effect
any Deemed Liquidation Event, the Company 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 Investor,
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 Company must deliver written notice (each, a “Redemption Notice”) to Investor setting forth (a) the Face
Value the Company 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, the Investor will promptly submit to the Company
the Note. For the avoidance of doubt, the delivery of a Redemption Notice shall not affect Investor’s rights under Section
I.G until after receipt of cash payment by Investor.

 

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 Investor or, subject to the terms and conditions
hereof, the Company; (i) if at the option of Investor, by delivery of one or more written notices to the Company or its transfer
agent (each, a “Investor Conversion Notice”), of the Investor’s election to convert any or all of the
Note or (ii) if at the option of the Company, if the Equity Conditions are met, delivery of written notice to Investor (each,
a “Company Conversion Notice” and, with the Investor Conversion Notice, each a “Conversion Notice”),
of the Company’s election to convert all of any portion of the Note.

 

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 due as of the time the Delivery Notice is given (the “Notice Time”),
and the calculation thereof. The Company has a right to request clarification and explanation on Delivery Notices that are not
legally sufficient or do not satisfy the provisions of relevant laws.

 

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c.
As soon as practicable, and in any event within 1 Trading Day after the Notice Date, time being of the essence, the Company
will do all of the following: (i) transmit the Delivery Notice by facsimile or electronic mail to the Company’s transfer
agent (the “Transfer Agent”), copying Investor, 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 Company is approved
through The Depository Trust Company (“DTC”), authorize and instruct the credit by the Transfer Agent of the
number of Conversion Shares set forth in the Delivery Notice, to Investor’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 Company 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 Investor 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 Investor 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 Company 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 Company
issue a share certificate bearing a restrictive legend.

 

d.
If during or at the end of the Measuring Period the Investor is entitled to receive additional Conversion Shares with regard
to an Initial Notice, Investor may at any time deliver one or more additional written notices to the Company 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 Company for any reason does not issue or cause to be issued to the Investor 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 Investor, as liquidated damages and not as a penalty, the Company will pay in cash to the Investor 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 Investor on a timely basis and to which the Investor is entitled and
(ii) the highest Closing Price of the Common Stock between the date on which the Company should have issued such shares to the
Investor and the actual date of receipt of Conversion Shares by Investor. It is intended that the foregoing will serve to reasonably
compensate Investor for any delay in delivery of Conversion Shares, and not as punishment for any breach by the Company. The Company
acknowledges that the actual damages likely to result from delay in delivery are difficult to estimate and would be difficult
for Investor to prove.

 

f.
Notwithstanding any other provision: all of the requirements of Section I.F and this Section I.G are each independent
covenants; the Company’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 Company’s
obligations under these sections; and under no circumstances may the Company seek or obtain any temporary, interim or preliminary
injunctive or equitable relief to prevent or interfere with any issuance of Conversion Shares to Investor.

 

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g.
Company acknowledges and agrees that monetary damages would be difficult to quantify and prove, and that Investor would not
have an adequate remedy at law for any failure to fully perform under this Section G. If for any reason whatsoever Investor
does not timely receive the number of Conversion Shares stated in any Delivery Notice, Investor will be entitled to a compulsory
remedy of immediate specific performance, temporary, interim and, preliminary and final injunctive relief requiring Company and
its transfer agent, attorneys, officers and directors to immediately issue and deliver the number of Conversion Shares stated
by Investor, which requirement will not be stayed for any reason, without the necessity of posting any bond, and which Company
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 Company will round up to
the nearest full share. The Investor will not be required to deliver the original of this Note in order to effect a conversion
hereunder. The Company will pay any and all taxes which may be payable with respect to the issuance and delivery of any Conversion
Shares.

 

2.
Investor Conversion. In the event of a conversion of any portion of this Note pursuant to a Investor Conversion Notice,
the Company will (a) satisfy the payment of Conversion Premium as provided in Section I.C.2, and (b) issue to the Investor
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.
Company Conversion. The Company will have the right to send the Investor a Company Conversion Notice at any time in
its sole and absolute discretion, if the Equity Conditions are met as of the time such Company Conversion Notice is given. Upon
any conversion of any portion of this Note pursuant to a Company Conversion Notice, the Company 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 Investor 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 Company 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, Adjustment Factor, Maximum Triggering Level, Minimum Triggering Level, 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 will be proportionately increased. If the Company 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, Adjustment Factor, Maximum Triggering Level, Minimum Triggering Level, 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.

 

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5.
Rights. In addition to any other adjustments, if at any time the Company 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 Investor will be entitled to acquire, upon the terms applicable
to such Purchase Rights, the aggregate Purchase Rights which Investor could have acquired if Investor had held the number of shares
of Common Stock acquirable upon conversion of the entire Note held by Investor 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.
“Agreement” means the Note Purchase Agreement or other agreement pursuant to which the Note is issued,
including all exhibits thereto and all related Transaction Documents as defined therein.

 

b.
“Collateral” means all assets of the Company, including without limitation all personal property wherever located,
both now owned and hereafter acquired, including, but not limited to, all equipment, fixtures, inventory, goods, documents, general
intangibles, accounts, deposit accounts (unless a security interest would render a nontaxable account taxable), receivables, contract
rights (including, but not limited to, all of Company’s rights in franchise agreements, license agreements and market development
agreements), chattel paper, patents, trademarks and copyrights (and the good will associated with and registrations and licensing
of them), instruments, letter of credit rights and investment property, capital stock, partnership, membership and equity interests,
of any kind or nature, and all additions and accessions to, all spare and repair parts, special tools, equipment and replacements
for, software used in, all returned or repossessed goods the sale of which gave rise to, and all accessions, additions, amendments,
modifications, replacements, and substitutions to, of or for the foregoing, and all proceeds, supporting obligations and products
of the foregoing, except as set forth in the Disclosure Schedules. All terms which are used in this definition which are defined
in the UCC shall have the same meanings herein as such terms are defined in the UCC, unless this Note shall otherwise specifically
provide.

 

c.
“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.

 

d.
“Conversion Price” means, if there has never been a Trigger Event, a price per share of Common Stock equal
to 100% of the Market Price less $0.01 per share, 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 90% upon the first Trigger Event). In no
event will the Conversion Price be less than the par value per share.

 

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

 

f.
“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 Company has delivered Conversion Shares upon all conversions or redemptions of this Note in accordance with
their terms to the Investor on a timely basis; (iv) the Company 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 restriction; (v) there has been a minimum
of 5 times the amount of Face Value of the Note then being converted by the Company in aggregate trading volume in the prior 20
Trading Days; (vi) all shares of Common Stock to which Investor is entitled have been timely received into Investor’s designated
account in electronic form fully cleared for trading; (vi) the Company otherwise shall have been in compliance with and shall
not have breached any provision, covenant, representation or warranty of any Transaction Document; and (vii) not more than 3 Trigger
Events shall have occurred.

 

g.
“Floor Price” means $0.01 per share of Common Stock. The Conversion Price will not be below the Floor Price.

 

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

 

i.
“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.

 

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

 

k.
“Obligations” include the full and punctual observance and performance
of all present and future duties, covenants, and responsibilities due to Investor by Company under this Note, the Agreement, and
the other Transaction Documents, including without limitation all present and future obligations and liabilities of Company for
the payment of money (extending to all principal amounts, interest, late charges, fees, and all other charges and sums, as well
as all costs and expenses payable by Company).

 

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

 

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m.
“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.

 

n.
“UCC” means the Uniform Commercial Code as adopted and applied in any applicable jurisdiction, including
without limitation Company’s jurisdiction of formation

 

7.
Issuance Limitation. Notwithstanding any other provision, at no time may the Company issue shares of Common Stock to
Investor which, when aggregated with all other shares of Common Stock then deemed beneficially owned by Investor, would result
in Investor 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 Investor may increase such amount to 9.99% upon not less than 61 days’ prior notice to the Company. Company and its
transfer agent will immediately provide Investor 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 Investor or the Company.

 

8.
Conversion at Maturity. Subject to the foregoing paragraph and provided no Trigger Event has occurred, if Company does
not redeem this Note as set forth in Section I.F.2, at close of business on the Maturity Date the full remaining outstanding
Note will be automatically converted into shares of Common Stock at the Conversion Price.

 

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.
Investor does not timely receive the number of Conversion Shares stated in any Conversion Notice, time being of the essence;

 

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

 

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

 

d.
Any violation of or failure to perform any covenant or provision of this Note, the Agreement, 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 Agreement or any Transaction Document is untrue or incorrect in any respect as
of the date when made or deemed made;

 

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f.
The occurrence of any default or event of default under any material agreement, lease, document or instrument to which the
Company 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 Investor sale of all Conversion 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 Company’s notice, written or oral, to Investor, 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 Investor;

 

j.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be
instituted by or against the Company or any subsidiary and, if instituted against the Company 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 Company 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 Company 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 Company or any
of its subsidiaries and are not stayed or satisfied within 30 days of entry;

 

m.
The Company 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 Company 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);

 

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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 Company or any subsidiary or any governmental authority having
jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof, or the Company 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 Investor 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 Company. The Company acknowledges that the actual damages likely to result from a Trigger
Event are difficult to estimate and would be difficult for Investor to prove.

 

II.
Security Agreement.

 

A.
Grant of Security Interest. To secure the Obligations, Company, as debtor, hereby assigns and grants to Investor, as
secured party, a continuing first-position lien on and security interest in, all right, title and interest of the Company, whether
now owned or existing or hereafter created, acquired, or arising, in and to all of the Collateral.

 

B.
Change in Name or Locations. Company’s legal name and jurisdiction of organization are correctly set forth in
the Public Reports. Company has not transacted business at any time during the immediately preceding five-year period, and does
not currently transact business, under any other legal names or trade names. Company’s chief executive office and principal
place of business is at, and the Company keeps and shall keep all of its books and records relating to receivables only at the
location identified in the Public Reports, and the Company has no other executive offices or places of business. Company hereby
agrees that if the location of the Collateral changes from the locations it is currently located in, or if Company changes its
name or form or jurisdiction of organization, or establishes a name in which it may do business, Company will immediately notify
Investor in writing of the additions or changes.

 

C.
Representations and Warranties. Company represents, warrants and covenants to Investor that: (a) Company has good,
marketable and indefeasible title to the Collateral, except as disclosed in the Disclosure Schedules, has not made any prior sale,
pledge, encumbrance, assignment or other disposition of any of the Collateral, and except as disclosed in the Disclosure Schedules,
the Collateral is free from all encumbrances and rights of setoff of any kind except the lien in favor of Investor created by
this Agreement; (b) except as herein provided, Company will not hereafter without Investor’s prior written consent sell,
pledge, encumber, assign or otherwise dispose of any of the Collateral or permit any right of setoff, lien or security interest
to exist thereon except to Investor, except for dispositions of Collateral in the ordinary course of business; (c) Company will
defend the Collateral against all claims and demands of all persons at any time claiming the same or any interest therein; and
(d) Company has provided a true, complete, and current listing of all patents, trademarks, tradestyles, copyrights, and other
intellectual property rights (including all registrations and applications therefor) owned by Company as of the date hereof that
are registered with any governmental authority. Company shall promptly notify Investor in writing of any additional intellectual
property rights acquired or arising after the date hereof, and shall submit to the Investor a supplement to reflect such additional
rights, provided Company’s failure to do so shall not impair the Investor’s security interest therein.

 

    	 	10	 

    	 	 	 

    

 

D.
Covenants. Company covenants that it will:

 

(i)
from time to time and at all reasonable times allow Investor, by or through any of its officers, agents, attorneys, or accountants,
to examine or inspect the Collateral, and obtain valuations and audits of the Collateral, at Investor’s expense, wherever
located. Company shall do, obtain, make, execute and deliver all such additional and further acts, things, deeds, assurances and
instruments as Investor may require to assure to Investor its rights hereunder and in or to the Collateral, and the proceeds thereof,
including waivers from landlords, warehousemen and mortgagees;

 

(ii)
keep the Collateral in good order and repair consistent with commercially reasonable past practices at all times and immediately
notify Investor of any event causing a material loss or decline in value of the Collateral, whether or not covered by insurance,
and the amount of such loss or depreciation;

 

(iii)
only use or permit the Collateral to be used in accordance with all applicable federal, state, county and municipal laws and regulations;

 

(iv)
to the extent applicable, have and maintain insurance at all times with respect to all Collateral against risks of fire (including
so called extended coverage), theft, sprinkler leakage, and other risks (including risk of flood if any Collateral is maintained
at a location in a flood hazard zone) as Investor may reasonably require, in such form, in the minimum amount of the outstanding
principal of the Note and written by such companies as may be reasonably satisfactory to Investor; each such casualty insurance
policy shall contain a standard Investor’s Loss Payable Clause issued in favor of Investor under which all losses thereunder
shall be paid to Investor as Investor’s interest may appear; such policies shall expressly provide that the requisite insurance
cannot be altered or canceled without at least thirty (30) days prior written notice to Investor and shall insure Investor notwithstanding
the act or neglect of Company; upon Investor’s demand, Company shall furnish Investor with evidence of insurance as Investor
may reasonably require; in the event of failure to provide insurance as herein provided, Investor may, at its option, obtain such
insurance and Company shall pay to Investor, on demand, the cost thereof; proceeds of insurance may be applied by Investor to
reduce the Obligations or to repair or replace Collateral, all in Investor ‘s sole discretion;

 

(v)
If any of the Collateral is, at any time, in the possession of a bailee, Company will promptly notify Investor thereof and, if
requested by Investor, shall promptly obtain an acknowledgment from the bailee, in form and substance satisfactory to Investor,
that the bailee holds such Collateral for the benefit of Investor and shall act upon the instructions of Investor, without the
further consent of Company;

 

    	 	11	 

    	 	 	 

    

 

(vi)
Company will not change its legal name or transact business under any other trade name without first giving 30 days’ prior
written notice of its intent to do so to the Investor; and

 

(vii)
Company will promptly pay when due all taxes, assessments and governmental charges and levies upon or against Company or any of
the Collateral, in each case before the same become delinquent and before penalties accrue thereon, unless and to the extent that
the same are being contested in good faith by appropriate proceedings which prevent foreclosure or other realization upon any
of the Collateral and preclude interference with the operation of Company’s business in the ordinary course, and Company
shall have established adequate reserves therefor.

 

E.
Negative Pledge; No Transfer. Company will not sell or offer to sell or otherwise transfer or grant or allow the imposition
of a lien, encumbrance or security interest of any kind upon the Collateral or use any portion thereof in any manner inconsistent
with this Agreement or with the terms and conditions of any policy of insurance thereon. The Company shall warrant and defend
the Collateral against any claims and demands of all persons at any time claiming the same or any interest in the Collateral adverse
to the Investor.

 

F.
Further Assurances. Company hereby irrevocably authorizes Investor at any time and from time to time to file in any
UCC jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral (i) as all assets of
Company or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope
of Article 9 of the UCC or such jurisdiction, or (ii) as being of an equal or lesser scope or with greater detail, and (b) contain
any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing
statement or amendment, including, but not limited to (i) whether Company is an organization, the type of organization and (ii)
any organization identification number issued to Company. Company agrees to furnish any such information to Investor promptly
upon request. Company also ratifies its authorization for Investor to have filed in any UCC jurisdiction any like initial financing
statements or amendments thereto if filed prior to the date hereof.

 

G.
Events of Default. Company shall, at Investor’s option, be in default under this Agreement upon the happening
of any of the following events or conditions (each, an “Event of Default”): (a) a failure to pay any amount
due under this Note, the Agreement or any Transaction Document within 5 business days of the date the same is due; (b) the failure
by Company to perform any of its other obligations under this Note, the Agreement or any Transaction Document within 5 business
days of notice from Investor of the same; (c) falsity, inaccuracy or material breach by Company of any written warranty, representation
or statement made or furnished to Investor by or on behalf of Company; (d) an uninsured material loss, theft, damage, or destruction
to any of the Collateral, or the entry of any judgment against Company or any lien against or the making of any levy, seizure
or attachment of or on the Collateral; (e) the failure of Investor to have a perfected first priority security interest in the
Collateral; (f) any indication or evidence received by Investor that Company may have directly or indirectly been engaged in any
type of activity that might reasonably be expected to result in the forfeiture of any property of Company to any governmental
entity, federal, state or local; (g) the Closing Price of the Common Stock is below $0.05 per share for 20 Trading Days or more;
or (h) the occurrence of any 3 or more Trigger Events.

 

    	 	12	 

    	 	 	 

    

 

H.
Remedies. Upon the occurrence of any Event of Default and at any time thereafter, the Floor Price shall no longer apply,
and Investor may declare all Obligations secured hereby immediately due and payable and shall have, in addition to any remedies
provided herein or by any applicable law or in equity, all the remedies of a secured party under the UCC. Investor’s remedies
include, but are not limited to, to the extent permitted by law, the right to (a) peaceably by its own means or with judicial
assistance enter Company’s premises and take possession of the Collateral without prior notice to Company or the opportunity
for a hearing, (b) render the Collateral unusable, (c) dispose of the Collateral on Company’s premises, and (d) require
Company to assemble the Collateral and make it available to Investor at a place designated by Investor. Unless the Collateral
is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, Investor will
give Company reasonable notice of the time and place of any public sale thereof or of the time after which any private sale or
any other intended disposition thereof is to be made. The requirements of commercially reasonable notice shall be met if such
notice is sent to Company at least 5 business days before the time of the intended sale or disposition. Expenses of retaking,
holding, preparing for sale, selling or the like shall include Investor ‘s reasonable attorney’s fees and legal expenses,
incurred or expended by Investor to enforce any payment due it under this Note either as against Company, or in the prosecution
or defense of any action, or concerning any matter growing out of or connection with the subject matter of this Note and the Collateral
pledged hereunder. Company waives all relief from all appraisement or exemption laws now in force or hereafter enacted.

 

I.
Payment of Expenses. At its option, Investor may, but is not required to: discharge taxes, liens, security interests
or such other encumbrances as may attach to the Collateral; pay for required insurance on the Collateral; and pay for the maintenance,
appraisal or reappraisal, and preservation of the Collateral, as determined by Investor to be necessary.

 

J.
Preservation of Rights. No delay or omission on Investor’s part to exercise any right or power arising hereunder
will impair any such right or power or be considered a waiver of any such right or power, nor will Investor’s action or
inaction impair any such right or power. Investor ‘s rights and remedies hereunder are cumulative and not exclusive of any
other rights or remedies which Investor may have under other agreements, at law or in equity.

 

III.
General.

 

V.
General Provisions.

 

A.
Notice. Unless a different time of day or method of delivery is specifically provided
in the Agreement, any and all notices or other communications or deliveries required or permitted to be provided hereunder will
be in writing and will be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication
is delivered via facsimile or electronic mail prior to 5:00 p.m. New York time on a Trading Day and an electronic confirmation
of delivery is received by the sender, (b) the next Trading Day after the date of transmission, if such notice or communication
is delivered later than 5:00 p.m. New York time or on a day that is not a Trading Day, (c) the next Trading Day following the
date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom
such notice is required to be given. The addresses for such notices and communications are such other address as may be designated
in writing, in the same manner, by such Person.

 

    	 	13	 

    	 	 	 

    

 

B.
Amendments; Waivers. No provision of this Note may be waived or amended except in a written
instrument signed, in the case of an amendment, by Company and Investor or, in the case of a waiver, by the party against whom
enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of
this Note will be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor will any delay or omission of either party to exercise any right hereunder in
any manner impair the exercise of any such right.

 

C.
No Third-Party Beneficiaries. This Note will inure solely to the benefit of the Investor,
and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

D.
Severability. If any provision of this Note is held to be invalid or unenforceable in
any respect, the validity and enforceability of the remaining terms and provisions of this Note will not in any way be affected
or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute
therefor, and upon so agreeing, will incorporate such substitute provision in this Note.

 

E.
Governing Law. All matters between the parties, including without limitation questions
concerning the construction, validity, enforcement and interpretation of the Transaction Documents will be governed by and construed
and enforced in accordance with the laws of the U.S. Virgin Islands, without regard to the principles of conflicts of law that
would require or permit the application of the laws of any other jurisdiction, except for corporation law matters applicable to
Company which will be governed by the corporate law of its jurisdiction of formation. The parties hereby waive all rights to a
trial by jury. In any action, arbitration or proceeding, including appeal, arising out of or relating to any of the Transaction
Documents or otherwise involving the parties, the prevailing party will be awarded its reasonable attorneys’ fees and other
costs and expenses reasonably incurred in connection with the investigation, preparation,
prosecution or defense of such action or proceeding.

 

F.
Arbitration. Any dispute, controversy, claim or action of any kind arising out of, relating
to, or in connection with this Note, or in any way involving Company and Investor or their respective Affiliates, including any
issues of arbitrability, will be resolved solely by final and binding arbitration in English before a retired judge at JAMS, or
its successor, in the Territory of the Virgin Islands, pursuant to the most expedited and Streamlined Arbitration Rules and Procedures
available. Any interim or final award may be entered and enforced by any court of competent jurisdiction. The final award will
include the prevailing party’s reasonable arbitration, expert witness and attorney fees, costs and expenses. Notwithstanding
the foregoing, Investor may in its sole discretion bring an action in Nevada or Utah in aid of arbitration or for temporary, preliminary
or provisional relief pending completion of arbitration.

 

    	 	14	 

    	 	 	 

    

 

G.
Remedies.

 

1.
In addition to being entitled to exercise all rights provided herein or granted by law, including
recovery of damages, each of Investor and Company will be entitled to specific performance under this Note, and equitable and
injunctive relief to prevent any actual or threatened breach under this Note, to the full extent permitted under applicable laws.

 

2.
Without limitation of the foregoing, Company acknowledges that the rights and benefits of Investor
pursuant to Section I.G.1. of this Note are unique and that no adequate remedy exists at law if Company breaches or fails timely
perform any of its obligations thereunder, that it would be difficult to determine the amount of damages resulting therefrom,
that it would cause irreparable injury to Investor, and that any potential harm to Company would be adequately and fully compensable
with monetary damages; accordingly, Investor will be entitled to a compulsory remedy of immediate specific performance, temporary,
interim, preliminary and final injunctive relief to enforce the provisions thereof, including without limitation requiring Company
and its transfer agent, attorneys, officers and directors to immediately take all actions necessary to issue and deliver the number
of Conversion Shares stated by Investor, and prohibiting any Common Stock from being issued or transferred until after all Conversion
Shares have been received by Investor in electronic form and fully cleared for trading, which requirements will not be stayed
for any reason, without the necessity of posting any bond. Company hereby absolutely, unconditionally and irrevocably waives all
objections and rights to oppose any motion, application or request by Investor to issue any number of Conversion Shares, and all
rights to stay or appeal any resulting order, and any appeal filed by Company or on its behalf will be immediately and automatically
dismissed. Company further acknowledges that it has an adequate remedy at law with respect to Section I.G.1. of this Note in a
claim for money damages; accordingly, Company may not restrain or enjoin its transfer agent, Investor or any brokers from receiving
or reselling any Conversion Shares, and any action for temporary, preliminary or final injunctive relief filed by Company or on
its behalf will be immediately and automatically dismissed.

 

H.
Headings. The titles and headings in
this Note 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

 

I.
Time of the Essence. Time is of the essence with respect to all provisions of this Note.

 

J.
Construction. The parties agree that each
of them and/or their respective counsel has reviewed and had an opportunity to revise this Note and, therefore, the normal rule
of construction to the effect that any ambiguities are to be resolved against the drafting party will not be employed in the interpretation
of this Note or any amendments hereto. The language used in this Note will be deemed
to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against
any party. All currency references in this Note are to U.S. dollars.

 

K.
Further Assurances. Each party will take all further actions and execute all further
documents as may be reasonably necessary to implement the provisions and carry out the intent of this Note fully and effectively.

 

L.
Entire Agreement. This Note, together with the Agreement, contains
the entire agreement and understanding of the parties, and supersedes all
prior and contemporaneous agreements, term sheets, letters, discussions, communications
and understandings, both oral and written, which the parties acknowledge have
been merged into this Note. No party, representative, advisor, attorney or agent has relied upon any collateral contract,
agreement, assurance, promise, understanding, statement or representation not expressly set forth herein. The parties hereby absolutely,
unconditionally and irrevocably waive all rights and remedies, at law and in equity, directly or indirectly arising out of or
relating to, or which may arise as a result of, any Person’s reliance on any such statement or assurance.

 

    	 	15	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Note on May 20, 2019.

 

	INCEPTION
    MINING INC.	 
	 	 	 
	Signed:
    	/s/
    Trent D’Ambrosio	 
	 	Trent
    D’Ambrosio, CEO	 

 

    	 	16Ex.
10.3

 

Warrant

 

THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT
UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO INCEPTION MINING INC.
THAT SUCH REGISTRATION IS NOT REQUIRED.

 

Right
to Purchase Shares of Common Stock of Inception Mining Inc.

 

COMMON
STOCK PURCHASE WARRANT #1

 

	Warrant
    Shares: 9,250,000	Issue
    Date: May 20, 2019

 

Inception
Mining Inc., a corporation organized under the laws of the State of Nevada, hereby certifies that, for value received, ____________________
or its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company
(as defined herein) at any time after the Issue Date set forth above for three years following the Issue Date, nine million two
hundred fifty thousand (9,250,000) fully paid and non-assessable shares of Common Stock (as hereinafter defined) at the applicable
Exercise Price per share (as defined below).

 

As
used herein the following terms, unless the context otherwise requires, have the following respective meanings:

 

The
term “Common Stock” includes (i) the Company’s common stock, par value $0.00001; and (ii) any other securities
into which or for which any of the securities described in the preceding clause may be converted or exchanged pursuant to a plan
of recapitalization, reorganization, merger, sale of assets or otherwise.

 

The
term “Company” shall include Inception Mining Inc., a Nevada corporation, and any person or entity which shall succeed,
or assume the obligations of, Inception Mining Inc. hereunder.

 

The
“Exercise Price” applicable under this Warrant shall be a price per share equal to $0.40 with respect to 3,750,000
shares, $0.50 with respect to 3,000,000 shares, and $0.60 with respect to 2,500,000 shares of Common Stock.

 

Article
I. Exercise of Warrant.

 

Section
1.01 Number of Shares Issuable upon Exercise. From and after the date hereof, the Holder shall be entitled to receive,
upon exercise of this Warrant in whole or in part, by delivery of an original or fax copy of an exercise notice in the form attached
hereto as Exhibit A (the “Exercise Notice”) along with payment of the Exercise Price per share, shares of Common
Stock of the Company so long as shares of Common Stock of the Company are available for issuance. All shares of the Common Stock
are immediately exercisable upon the execution of this Warrant as follows:

 

    	 	1	 

    	 	 	 

    

 

Section
1.02 Company Acknowledgment. The Company will, at the time of the exercise of this Warrant, upon the request of the Holder
hereof acknowledge in writing its continuing obligation to afford to such Holder any rights to which such Holder shall continue
to be entitled after such exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any such
request, such failure shall not affect the continuing obligation of the Company to afford to such Holder any such rights.

 

Section
1.03 Callability Right by Company. If the mathematical average of the daily volume weighted average prices of the Common
Stock is equal to or above $0.70 for a period of thirty trading days, then the Company will have the right (at its sole and absolute
discretion) at any time to demand the Holder exercise this Warrant as set forth herein. If the Company demands the exercise as
allowed in this Section and the Holder does not exercise this Warrant within ten business days, then this Warrant shall automatically
expire.

 

Section
1.04 Trustee for Warrant Holders. In the event that a bank or trust company shall have been appointed as trustee for the
Holder of this Warrant, such bank or trust company shall have all the powers and duties of a warrant agent (as described in Section
6 herein) and shall accept, in its own name for the account of the Company or such successor person as may be entitled thereto,
all amounts otherwise payable to the Company or such successor, as the case may be, on exercise of this Warrant pursuant to this
Section 1.

 

Article
II. Procedure for Exercise.

 

Section
2.01 Delivery of Stock Certificates, Etc., on Exercise. The Company agrees that the shares of Common Stock purchased upon
exercise of this Warrant shall be deemed to be issued to the Holder as the record owner of such shares as of the close of business
on the date on which this Warrant shall have been surrendered and payment made for such shares in accordance herewith. As soon
as practicable after the exercise of this Warrant in full or in part, the Company, at Holder’s expense, will cause to be
issued in the name of and delivered to the Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes)
may direct in compliance with applicable securities laws, a certificate or certificates for the number of duly and validly issued,
fully paid and non-assessable shares of Common Stock to which such Holder shall be entitled on such exercise so long as such shares
of Common Stock are available for issuance.

 

Section
2.02 Exercise. Payment may be made in cash by wire transfer of immediately available funds or by certified or official
bank check payable to the order of the Company equal to the applicable aggregate Exercise Price, for the number of Common Shares
specified in the Exercise Notice and the Holder shall thereupon be entitled to receive the number of duly authorized, validly
issued, fully-paid and non-assessable shares of Common Stock as provided herein.

 

    	 	2	 

    	 	 	 

    

 

Article
III. Assignment; Exchange of Warrant. Subject to compliance with applicable securities laws, this Warrant, and the rights
evidenced hereby, may be transferred by any registered holder hereof (a “Transferor”) in whole or in part.
On the surrender for exchange of this Warrant, with the Transferor’s endorsement in the form of Exhibit B attached hereto
(the “Transferor Endorsement Form”) and together with evidence reasonably satisfactory to the Company demonstrating
compliance with applicable securities laws, which shall include, without limitation, the provision of a legal opinion from the
Transferor’s counsel (at the Company’s expense) that such transfer is exempt from the registration requirements of
applicable securities laws, the Company at its expense (but with payment by the Transferor of any applicable transfer taxes) will
issue and deliver to or on the order of the Transferor thereof a new Warrant of like tenor, in the name of the Transferor and/or
the transferee(s) specified in such Transferor Endorsement Form (each a “Transferee”), calling in the aggregate
on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant so surrendered
by the Transferor.

 

Article
IV. Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity
agreement or security reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender
and cancellation of this Warrant, the Company at its expense will execute and deliver, in lieu thereof, a new Warrant of like
tenor.

 

Article
V. Maximum Exercise. Notwithstanding anything herein to the contrary, in no event shall the Holder be entitled to exercise
any portion of this Warrant in excess of that portion of this Warrant upon exercise of which the sum of (a) the number of shares
of Common Stock beneficially owned by the Holder and its Affiliates and (b) the number of shares of Common Stock issuable upon
the exercise of the portion of this Warrant with respect to which the determination of this limitation is being made, would result
in beneficial ownership by the Holder and its Affiliates of any amount greater than 9.99% of the then outstanding shares of Common
Stock. As used herein, the term “Affiliate” means any person or entity that, directly or indirectly through one or
more intermediaries, controls or is controlled by or is under common control with a person or entity, as such terms are used in
and construed under Rule 144 under the Securities Act. For purposes of the second preceding sentence, beneficial ownership shall
be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulations 13(d)-(g) thereunder.
The limitations set forth herein may be waived in whole or in part, upon sixty-one (61) days prior written notice from the Holder
to the Company.

 

Article
VI. Warrant Agent. The Company may, by written notice to the Holder of the Warrant, appoint an agent for the purpose of
issuing Common Stock on the exercise of this Warrant, exchanging this Warrant, and replacing this Warrant, or any of the foregoing,
and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office by such agent.

 

Article
VII. Transfer on the Company’s Books. Until this Warrant is transferred on the books of the Company, the Company
may treat the registered Holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

Article
VIII. Miscellaneous. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument
in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. THIS WARRANT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
OF LAWS. ANY ACTION BROUGHT CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL BE BROUGHT ONLY IN THE STATE COURTS
OF NEVADA OR IN THE FEDERAL COURTS LOCATED IN THE STATE OF NEVADA; PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE THIS
PROVISION AND BRING AN ACTION OUTSIDE THE STATE OF NEVADA. The individuals executing this Warrant on behalf of the Company agree
to submit to the jurisdiction of such courts and waive trial by jury. The prevailing party shall be entitled to recover from the
other party its reasonable attorneys’ fees and costs. In the event that any provision of this Warrant is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of this Warrant. The headings
in this Warrant are for purposes of reference only, and shall not limit or otherwise affect any of the terms hereof. The invalidity
or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision hereof.
The Company acknowledges that legal counsel participated in the preparation of this Warrant and, therefore, stipulates that the
rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation
of this Warrant to favor any party against the other party.

 

    	2

    	 

    

 

IN
WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.

 

	 	INCEPTION
    MINING INC.
	 	 	 
	 	By:
    	/s/
    Trent     D’Ambrosio
	 	Name:	Trent
    D’Ambrosio
	 	Title:	Chief
    Executive Officer

 

    	 	3

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