Document:

First Supplemental Indenture dated February 14, 2017

 Exhibit 4.2 

FIRST SUPPLEMENTAL INDENTURE 

Dated as of February 14, 2017 

to 
 INDENTURE 

Dated as of February 14, 2017 

Between 
 H.B. FULLER COMPANY,

 as Issuer 
 and 

U.S. BANK NATIONAL ASSOCIATION, 

as Trustee 
  

 
 4.000% Notes
due 2027 
  
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	 ARTICLE 1 DEFINITIONS
	  	 	1	  
			
	 Section 1.1
	 	Definition of Terms.	  	 	1	  
		
	 ARTICLE 2 TERMS AND CONDITIONS OF NOTES
	  	 	1	  
			
	 Section 2.1
	 	Designation and Principal Amount.	  	 	1	  
			
	 Section 2.2
	 	Maturity.	  	 	1	  
			
	 Section 2.3
	 	Further Issues.	  	 	2	  
			
	 Section 2.4
	 	Payment.	  	 	2	  
			
	 Section 2.5
	 	Global Securities.	  	 	2	  
			
	 Section 2.6
	 	Interest.	  	 	2	  
			
	 Section 2.7
	 	Authorized Denominations.	  	 	2	  
			
	 Section 2.8
	 	Redemption; Purchase and Sinking Fund.	  	 	2	  
			
	 Section 2.9
	 	Ranking.	  	 	3	  
			
	 Section 2.10
	 	Appointments.	  	 	3	  
			
	 Section 2.11
	 	Defeasance.	  	 	3	  
			
	 Section 2.12
	 	Guarantees.	  	 	3	  
		
	 ARTICLE 3 FORM OF NOTES
	  	 	3	  
			
	 Section 3.1
	 	Form of Notes.	  	 	3	  
		
	 ARTICLE 4 ADDITIONAL COVENANTS
	  	 	3	  
			
	 Section 4.1
	 	Restrictions on Secured Debt.	  	 	3	  
			
	 Section 4.2
	 	Restrictions on Sales and Leasebacks.	  	 	4	  
			
	 Section 4.3
	 	Certain Definitions.	  	 	5	  
		
	 ARTICLE 5 ORIGINAL ISSUE OF NOTES
	  	 	6	  
			
	 Section 5.1
	 	Original Issue of Notes.	  	 	6	  
		
	 ARTICLE 6 MISCELLANEOUS
	  	 	7	  
			
	 Section 6.1
	 	Ratification of Indenture.	  	 	7	  
			
	 Section 6.2
	 	Governing Law.	  	 	7	  
			
	 Section 6.3
	 	Separability.	  	 	7	  
			
	 Section 6.4
	 	Counterparts.	  	 	7	  

  
 i 

 FIRST SUPPLEMENTAL INDENTURE 

FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as of February 14, 2017, between H.B. FULLER COMPANY,
a Minnesota corporation (the “Company”), having its principal place of business at 1200 Willow Lake Boulevard, St. Paul, Minnesota 55110-5101, and U.S. BANK NATIONAL ASSOCIATION, (the “Trustee”), a national banking
association duly organized and validly existing under the laws of the United States of America having its Corporate Trust Office at 60 Livingston Avenue, EP-MN-WS3C, St.
Paul, Minnesota 55107. 
 RECITALS OF THE COMPANY 

A. The Company and the Trustee are party to the Indenture, dated as of February 14, 2017 (the “Indenture”), to provide
for the issuance from time to time of its debentures, notes, bonds and other evidences of indebtedness (the “Debt Securities”). 

B. Pursuant to the terms of the Indenture, the Company desires to provide for the establishment of a new series of its Securities under the
Indenture to be known as its “4.000% Notes due 2027” (the “Notes”), the form and substance and the terms, provisions and conditions thereof to be set forth as provided in the Indenture and this Supplemental Indenture. 

C. This Supplemental Indenture is being entered into pursuant to the provisions of Article 2, Article 3 and Section 901(11) of the
Indenture. 
 NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH: 

For and in consideration of the premises and the purchase of the Notes by the Holders thereof, and for the purpose of setting forth the forms
and terms of the Notes, it is mutually covenanted and agreed for the benefit of all Holders of the Notes, as follows: 
 ARTICLE 1.

 DEFINITIONS 

Section 1.1 Definition of Terms. Terms used but not defined in this Supplemental Indenture shall have the same meaning as
defined in the Indenture, unless the context otherwise requires. 
 ARTICLE 2 

TERMS AND CONDITIONS OF NOTES 

Section 2.1 Designation and Principal Amount. There is hereby authorized and established a
series of Registered Securities under the Indenture, designated as the “4.000% Notes due 2027,” which is initially limited in aggregate principal amount to $300,000,000. 

Section 2.2 Maturity. The Stated Maturity of principal of the Notes shall be February 15, 2027. 

  
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 Section 2.3 Further Issues. The Company may, without the consent
of Holders of the Notes, increase the principal amount of the Notes by issuing additional Notes in the future on the same terms and conditions, except for any differences in the issue date, price to the public, interest accrued prior to the issue
date of such additional Notes, and the initial interest payment date. Any such additional Notes shall be consolidated with the Notes herein provided for, including for purposes of voting and redemptions. If such additional Notes and the Notes herein
provided for are not fungible for U.S. federal income tax purposes, the Company shall cause such additional Notes to have a different CUSIP number than the Notes herein provided for. Notwithstanding the foregoing, no additional Notes may be issued
if any Event of Default has occurred and is continuing with respect to the Notes. 
 Section 2.4 Payment.
Principal of and interest on each Note shall be payable to the Holder thereof in immediately available funds upon presentation of the Note at the office or agency the Company maintains for this purpose, which is initially the Corporate Trust Office,
in any coin or currency of the United States of America which at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may be made at the Company’s option through
the Paying Agent by check mailed to the Holder at the close of business on the Regular Record Date at such address as shall appear in the Security Register or by wire transfer of immediately available funds to an account specified in writing by such
Holder to the Company and the Trustee prior to the relevant Regular Record Date; and provided, further, that the Company through the Paying Agent may pay principal of and/or interest on the Notes in the form of Global Securities
registered in the name of or held by The Depository Trust Company (“DTC”) or such other Depositary as any Company Officer may from time to time designate, or its respective nominee, by wire transfer in immediately available funds to
such Depositary or its nominee, as the case may be, as the Holder of such Notes in the form of Global Securities. 

Section 2.5 Global Securities. Upon the original issuance, the Notes will be represented by Global Securities
registered in the name of Cede & Co., the nominee of DTC. The Company will deposit the Global Securities with DTC or its custodian and register the Global Securities in the name of Cede & Co. 

Section 2.6 Interest. The Notes shall bear interest (computed on the basis of a 360-day year consisting of twelve 30-day months) from February 14, 2017 at the rate of 4.000% per annum, payable semi-annually in arrears. Interest payable on each
Interest Payment Date shall include interest accrued from February 14, 2017, or from the most recent Interest Payment Date to which interest has been paid or duly provided for. The Interest Payment Dates on which such interest shall be payable
are February 15 and August 15, commencing on August 15, 2017; and the Regular Record Date for the interest payable on any Interest Payment Date is the close of business on January 31 or July 31, as the case may be, next
preceding the relevant Interest Payment Date. 
 Section 2.7 Authorized Denominations. The Notes shall be
issuable in denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
 Section 2.8 Redemption;
Purchase and Sinking Fund. The Notes shall not be redeemable at the option of the Company or the Holders except as set forth in Paragraph 3 of the 

  
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Reverse of the Notes. The Company shall be required to purchase the Notes in accordance with the provisions of Paragraph 2 of the Reverse of the Notes. The Notes shall not be entitled to the
benefit of any sinking fund. 
 Section 2.9 Ranking. The Notes shall be senior unsecured debt securities of
the Company, ranking equally with the Company’s other unsecured and unsubordinated Indebtedness. 
 Section 2.10
Appointments. The Trustee shall be the initial Security Registrar and initial Paying Agent for the Notes. 

Section 2.11 Defeasance. Section 403 and Article Fifteen of the Indenture shall be applicable to the
Notes. 
 Section 2.12 Guarantees. The Notes shall not be guaranteed by any Person. 

ARTICLE 3 
 FORM OF NOTES

 Section 3.1 Form of Notes. The Notes and the Trustee’s certificate of authentication thereon shall to be
substantially in the form set forth in Exhibit A hereto. 
 ARTICLE 4 

ADDITIONAL COVENANTS 

Section 4.1 Restrictions on Secured Debt. For so long as the Notes are Outstanding: 

(a) Subject to the exceptions set forth herein, including Section 4.1(b) and Section 4.1(c), the Company shall not, and shall
not permit any Restricted Subsidiary to, incur, issue, assume or guarantee any notes, bonds, debentures or similar evidences of indebtedness for money borrowed, secured by pledge of, or Mortgage or lien on, any Principal Property of the Company or
any Restricted Subsidiary, any shares of stock of any Restricted Subsidiary, or any debt owed to the Company by any Restricted Subsidiary (such pledges, Mortgages and liens being called “Mortgage” or “Mortgages” and
such debt secured by such Mortgages being called “Secured Debt”), without effectively providing that the Notes (together with, any other indebtedness of the Company or such Restricted Subsidiary then existing or thereafter created
which is not subordinate to the Notes) shall be secured equally and ratably with (or prior to) such Secured Debt, so long as such Secured Debt shall be so secured. 

(b) The limitation in Section 4.1(a) shall not apply to the incurrence, issuance, assumption or guarantee of any debt if, immediately
after giving effect thereto, the aggregate amount of all such Secured Debt plus all attributable debt of the Company and its Restricted Subsidiaries in respect of any Sale and Leaseback Transaction (other than debt secured by Permitted Mortgages)
would not exceed 15% of Consolidated Net Tangible Assets. 
 (c) In addition, the limitation in Section 4.1(a) does not apply to (and
in calculating the amount of Secured Debt for the purposes of Section 4.1(b) the Company may disregard) any of the following (all of which are “Permitted Mortgages”): 

(i) any Mortgage existing on February 14, 2017; 

  
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 (ii) Mortgages on property or shares of stock of or debt of, any Person, which Mortgages are
existing at the time (A) such Person became a Restricted Subsidiary, (B) such Person is merged into or consolidated with the Company or any Subsidiary or (C) the Company or a Subsidiary merges into or consolidates with such Person (in
a transaction in which such Person becomes a Restricted Subsidiary); provided, in each case, such Mortgage was not incurred in anticipation of and was outstanding prior to such transaction; 

(iii) Mortgages in favor of, or securing debt owed to, the Company or any Restricted Subsidiary; 

(iv) Mortgages in favor of any governmental body to secure progress, advance or other payments pursuant to any contract or provision of any
statute; 
 (v) Mortgages on property or shares of stock or debt existing at the time of acquisition thereof (including acquisition through
merger or consolidation); 
 (vi) Mortgages on property or shares of stock or debt to secure the payment of all or any part of the purchase
price or construction cost thereof or any improvement thereon, or to secure any debt incurred prior to, at the time of, or within one year after, the acquisition of such property or shares or debt, the completion of any construction or the
commencement of full operation, for the purpose of financing all or any part of the purchase price or construction cost thereof or any improvement thereon; 

(vii) Mortgages incurred in connection with a Sale and Leaseback Transaction satisfying the conditions of Section 4.2(a)(i) or
Section 4.2(a)(ii); 
 (viii) Mortgages consisting solely of encumbrances, rights-of-way, restrictions (including zoning restrictions), minor defects or irregularities in title and other similar charges or encumbrances not, in any material respect, impairing the use of the
encumbered property for its intended purpose; and 
 (ix) any extension, renewal or replacement (or successive extensions, renewals or
replacements), as a whole or in part, of any Permitted Mortgage (including any Mortgages for the sole purpose of extending, renewing, replacing or refinancing debt secured by Permitted Mortgages); provided that such extension, renewal or
replacement Mortgage shall be limited to all or a part of the property or shares of stock or debt that secured the Mortgage extended, renewed or replaced (plus improvements on such property). 

Section 4.2 Restrictions on Sales and Leasebacks. For so long as the Notes are Outstanding: 

(a) The Company shall not, and shall not permit any Restricted Subsidiary to, enter into any arrangement with any Person (not including the
Company or any Restricted Subsidiary) providing for the leasing by the Company or a Restricted Subsidiary for a period, including 

  
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renewals, in excess of three years of any Principal Property the ownership of which has been or is to be sold or transferred, more than 180 days after the completion of construction and
commencement of full operation thereof, by the Company or such Restricted Subsidiary to such Person (or to any Person to whom funds have been or are to be advanced by such Person on the security of such Principal Property) (referred to as a
“Sale and Leaseback Transaction”) unless either: 
 (i) the Company or such Restricted Subsidiary could create Secured Debt
pursuant to the provisions described under Section 4.1 on the Principal Property to be leased in an amount equal to the Attributable Debt with respect to such Sale and Leaseback Transaction without equally and ratably
securing Notes; or 
 (ii) within 180 days after such sale or transfer shall have been made by the Company or by a Restricted Subsidiary, the
Company applies an amount not less than the greater of (A) the net proceeds of the sale of the principal property leased pursuant to such arrangement or (B) the fair market value of the principal property so leased at the time of entering
into such arrangement (as evidenced by an Officers’ Certificate) to the retirement of debt owed by the Company or any of its Subsidiaries that has a maturity of more than one year from the date of the most recent balance sheet of the Company
and its consolidated Subsidiaries (“Funded Debt”), reduced by (X) the principal amount of Notes issued under the Indenture delivered within 180 days after such sale to the Trustee for retirement and cancellation, and
(Y) the principal amount of Funded Debt other than Notes issued under the Indenture, voluntarily retired by the Company within 180 days after such sale. 

(b) No retirement referred to in Section 4.2(a)(ii) may be effected by payment at maturity or pursuant to any mandatory sinking fund
payment or mandatory prepayment provision. 
 Section 4.3 Certain Definitions. For purposes of this
Article 4: 
 (a) “Attributable Debt” means, as to any lease in respect of a Sale and Leaseback Transaction under
which any Person is at the time liable, at any date as of which the amount thereof is to be determined, the total net amount of rent required to be paid by such Person under such lease during the remaining term thereof (or, if earlier, the first
date upon which such lease may be terminated without penalty), discounted from the respective due dates thereof to such date at the rate per annum borne by Debt Securities issued under the Indenture, compounded annually. The net amount of rent
required to be paid under any such lease for any such period shall be the aggregate amount of the rent payable by the lessee with respect to such period after excluding amounts required to be paid on account of maintenance and repairs, insurance,
taxes, assessments, water rates and similar charges. In the case of any lease which is terminable by the lessee upon the payment of a penalty, the Company may elect to calculate such net amount as if the lease were to so terminate, in which case
such net amount shall also include the amount of such penalty, but no rent shall be considered as required to be paid under such lease subsequent to the first date upon which it may be so terminated. 

  
 5 

 (b) “Consolidated Net Tangible Assets” means the aggregate amount of assets
(less applicable reserves and other properly deductible items) of the Company and its Subsidiaries, after deducting therefrom (1) all current liabilities, except for (a) notes and loans payable, (b) current maturities of long-term
debt and (c) current maturities of obligations under capital leases, and (2) all goodwill, trade names, trademarks, patents, unamortized debt discount and expense and other like intangibles, all as set forth on our most recent consolidated
balance sheet and computed in accordance with generally accepted accounting principles in the United States as in effect from time to time. 

(c) “Principal Property” means any single parcel of real estate or permanent improvement thereon owned or leased in
connection with a Sale and Leaseback Transaction by the Company or any Restricted Subsidiary that is located within the United States and the net book value of which on the date as of which the determination is being made exceeds 1% of Consolidated
Net Tangible Assets, other than any real estate or permanent improvement thereon (1) which is a pollution control or other facility financed by obligations issued by a state or local government unit and described in Sections 141(a), 142(a)(5),
142(a)(6), 142(a)(10) or 144(a) of the Internal Revenue Code (or their successor provisions) or by any other obligations the interest of which is excluded under Section 103 of the Internal Revenue Code (or its successor provision), or
(2) which, in the good-faith opinion of the Board of Directors, as evidenced by a Board Resolution, is not of material importance to the total business conducted by the Company and its Subsidiaries, taken as a whole. 

(d) “Restricted Subsidiary” means a wholly owned Subsidiary of the Company substantially all of the assets of which are
located in the United States (excluding territories or possessions) and which owns a Principal Property; provided, however, that the term Restricted Subsidiary shall not include any subsidiary that is principally engaged in
(1) the business of financing; (2) the business of owning, buying, selling, leasing, dealing in or developing real property; or (3) the business of exporting goods or merchandise from or importing goods or merchandise into the United
States. 
 (e) “Subsidiary” means a corporation more than 50% of the outstanding Voting Stock (as defined above) of which
is owned, directly or indirectly, by the Company or by one or more other Subsidiaries. 
 (f) “Voting Stock” of any
specified Person as of any date means the capital stock (or comparable equity interests) of such Person that is at the time entitled to vote generally in the election of the board of directors (or members of the governing body) of such Person. 

ARTICLE 5 
 ORIGINAL
ISSUE OF NOTES 
 Section 5.1 Original Issue of
Notes. The Notes may, upon execution of this Supplemental Indenture, be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall, upon Company Order, authenticate and deliver such Notes as in
such Company Order provided. 

  
 6 

 ARTICLE 6 

MISCELLANEOUS 

Section 6.1 Ratification of Indenture. The Indenture, as
supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein and therein provided; provided,
however, that the provisions of this Supplemental Indenture shall apply solely with respect to the Notes and not to any other series of Debt Securities issued under the Indenture. The provisions of general application set forth in the
Indenture shall apply to this Supplemental Indenture. 
 Section 6.2 Governing Law.
This Supplemental Indenture and the Notes shall be governed by, and construed in accordance with, the law of the State of New York. 

Section 6.3 Separability. In case any provision in this Supplemental Indenture or in the Notes shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 6.4 Counterparts. This Supplemental Indenture may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Indenture. Delivery of a signed copy of this Supplemental Indenture (or a signature page hereto) by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Supplemental Indenture. 

[Signature page follows] 

  
 7 

 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly
executed, as of the date first above written. 
  

					
	H.B. FULLER COMPANY
		
	By:	 	 /s/ Cheryl A. Reinitz

		 	Name:	 	Cheryl A. Reinitz
		 	Title:	 	Vice President and Treasurer

  
 [Signature Page to
First Supplemental Indenture] 

 
					
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

		
	By:	 	 /s/ Donald T. Hurrelbrink

		 	Name:	 	Donald T. Hurrelbrink
		 	Title:	 	Vice President

  
 [Signature Page to
First Supplemental Indenture] 

 EXHIBIT A TO FIRST SUPPLEMENTAL INDENTURE 

[FORM OF NOTE] 

 

This Note is a Global Security within the meaning of the Indenture hereinafter referred to below and is registered in the name
of a Depositary or a nominee of a Depositary. This Note is exchangeable for Notes registered in the name of a Person other than the Depositary or its nominee only in the limited circumstances described in the Indenture, and no transfer of this Note
(other than a transfer of this Note as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary) may be registered except in the limited circumstances described
in the Indenture. 
 Unless this certificate is presented by an authorized representative of The Depository Trust
Company to the issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of the Depository Trust
Company and any payment is made to Cede & Co., any transfer, pledge or other use hereof for value or otherwise by or to any person is wrongful since the registered owner hereof, Cede & Co., has an interest herein. 

H.B. FULLER COMPANY 
  

					
	No. R-[    ]	  	4.000% NOTES DUE 2027	  	$[            ]

  

			
	CUSIP No.:	  	359694 AB2
	ISIN:	  	US359694AB24

 H.B. Fuller Company., a Minnesota corporation (the “Company,” which term includes any
successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
$[            ], as revised by the Schedule of Increases and Decreases attached hereto, on February 15, 2027, and to pay interest thereon from February 14, 2017 or from the most
recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on February 15 and August 15 of each year, commencing on August 15, 2017, at the rate of 4.000% per annum, until the principal hereof is
paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the January 31 or July 31 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any
such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered
at the close of business on a “Special Record Date” for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of the Notes not less than 10 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the
Indenture. 

  
 A-1 

 Reference is hereby made to the further provisions of the Notes set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

[Signature Pages Follow] 

  
 A-2 

 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed. 

Dated: [                    ] 

 

			
	H.B. FULLER COMPANY
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-3 

 This Note is one of the Debt Securities of the series designated therein referred to in the
within-mentioned Indenture. 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

		
	By:	 	  

		 	Name:
		 	Title:

 Dated:
[                    ] 

  
 A-4 

 [REVERSE OF NOTE] 

 

	 	1.	Indenture. 

 This Note is one of a duly authorized issue of Debt Securities of the
Company (the “Notes”), issued and to be issued in one or more series under the Indenture, dated as of February 14, 2017, and a supplemental indenture relating to the Notes dated as of February 14, 2017 (together, the
“Indenture”), between the Company and U.S. Bank National Association, as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a
statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is
one of the series designated on the face hereof, such series initially limited in aggregate principal amount to $300,000,000; provided that the Company may at any time and from time to time, without the consent of any Holder, issue additional
Notes of this series. All terms which are used but not defined in this Note and which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
  

	 	2.	Repurchase at the Option of the Holder. 

 If a Change of Control Triggering Event occurs,
unless the Company has exercised its option to redeem the Notes pursuant to Paragraph 3 hereof, the Company shall make an offer (the “Change of Control Offer”) to each Holder of Notes to purchase all or any part (equal to $2,000 or
any integral multiple of $1,000 in excess thereof) of such Holder’s Notes on the terms set forth herein. 
 In such Change of Control
Offer, the Company shall offer payment in cash (the “Change of Control Payment”) equal to 101% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest, if any, to the date of purchase, subject to the
rights of Holders of such Notes on the relevant Regular Record Date to receive interest due on the relevant Regular Interest Payment Date. 

Within 30 days following the date upon which the applicable Change of Control Triggering Event occurred (or at the Company’s option,
prior to any Change of Control but after the public announcement of the pending Change of Control), to the Company shall send a notice to each holder of Notes, with a copy to the Trustee, which notice shall govern the terms of the Change of Control
Offer. Such notice shall state, among other things, the purchase date, which must be no earlier than 30 days nor later than 60 days from the date such notice is sent, other than as may be required by law (the “Change of Control Payment
Date”). The notice, if sent prior to the date of consummation of the Change of Control, shall state that the Change of Control Offer is conditioned on the Change of Control being consummated on or prior to the Change of Control Payment
Date. 
 On the Change of Control Payment Date, the Company shall, to the extent lawful: 

(a) accept or cause a third party to accept for payment all Notes or portions of Notes properly tendered pursuant to the Change
of Control Offer; 

  
 A-5 

 (b) deposit or cause a third party to deposit with the Paying Agent an amount
equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and 
 (c) deliver or
cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount of notes or portions of Notes being repurchased and that all conditions precedent to the Change of
Control Offer and to the repurchase by the Company of Notes pursuant to the Change of Control Offer have been complied with. 

Notwithstanding anything to the contrary, the Company shall not be required to make a Change of Control Offer if (i) a third party makes
such an offer in the manner, at the times and otherwise in compliance with the requirements for such an offer otherwise required to be made by the Company and such third party purchases all such Notes properly tendered and not withdrawn under its
offer or (ii) a notice of redemption has been given to the holders of all such Notes in accordance with the terms of the Indenture, unless and until there is a default in payment of the Redemption Price. A Change of Control Offer may be made in
advance of a Change of Control, conditional upon such Change of Control, if a definitive agreement is in place of the Change of Control at the time of making of the Change of Control Offer. 

The Company shall comply in all material respects with the requirements of Rule 14e-1 under the
Exchange Act, and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the
provisions of any such securities laws or regulations conflict with the provisions of this Paragraph 2, the Company may comply with those securities laws and regulations and will not be deemed to have breached its obligations under the Change of
Control Offer provisions of the Notes by virtue of any such conflict. 
 For purposes of this Paragraph 2, the following terms shall have
the following specified meanings: 
 “Below Investment Grade Rating Event” means the rating on the Notes is
lowered by each of the rating agencies as a result of a particular Change of Control and the Notes are rated below Investment Grade by each of the rating agencies on any date during the period (as the same may be extended, the “Trigger
Period”) commencing on the earlier of (a) the occurrence of the Change of Control and (b) the first public announcement by the Company of any Change of Control (or pending Change of Control) and ending on the 60th day following the consummation of such Change of Control. If the rating of the Notes is under publicly announced consideration for possible downgrade by any Rating Agency on such 60th day following the consummation of the Change of Control, the trigger period will be extended to last with respect to each such Rating Agency until the date on which such Rating Agency considering
such possible downgrade either (x) rates the Notes below investment grade or (y) publicly announces that it is no longer considering the Notes for possible downgrade; provided, that no such extension will occur if on such 60th day the Notes are rated Investment Grade and are not subject to review for possible downgrade by any Rating Agency. A reduction in rating will be 

  
 A-6 

 
considered to be as a result of a Change of Control only if each Rating Agency making the reduction publicly announces or confirms or informs the Trustee in writing at the Company’s request
that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the Change of Control (whether or not the applicable Change of Control has occurred at the time of the
Below Investment Grade Rating Event). 
 “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” as such term is used in Section 13(d)(3)
of the Exchange Act, such “person” will be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently
exercisable or is exercisable only upon the occurrence of a subsequent condition. 
 “Change of Control”
means the occurrence of any of the following after the date of issuance of the Notes: 
 (1) the direct or indirect sale,
lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the company and its subsidiaries taken as a whole to any
“person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) other than to the company or one of its subsidiaries; 

(2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is
that any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act, it being agreed that an employee of the Company or any of its subsidiaries for whom shares are held under an employee stock ownership,
employee retirement, employee savings or similar plan and whose shares are voted in accordance with the instructions of such employee shall not be a member of a “group” (as that term is used in Section 13(d)(3) of the Exchange Act) solely
because such employee’s shares are held by a trustee under said plan) becomes the ultimate Beneficial Owner, directly or indirectly, of the Company’s Voting Stock representing more than 50% of the voting power of the Company’s
outstanding Voting Stock; 
 (3) the Company consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, us, in any such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock or Voting Stock of such other Person is converted into or exchanged for cash, securities or other
property, other than any such transaction where the Company’s Voting Stock outstanding immediately prior to such transaction constitutes, or is converted into or exchanged for, Voting Stock representing more than 50% of the voting power of the
Voting Stock of the surviving Person or its parent immediately after giving effect to such transaction; or 
 (4) during any
period of 24 consecutive calendar months, the majority of the members of the Company’s board of directors shall no longer be composed of individuals (a) who were members of the Company’s board of directors on the first day of such
period or (b) whose election or nomination to the Company’s board of directors was approved by individuals referred to in clause (a) above constituting, at the time of such election or nomination, at least a majority of the
Company’s board of directors or, if directors are nominated by a committee of the Company’s board of directors, constituting at the time of such nomination, at least a majority of such committee. 

  
 A-7 

 Notwithstanding the foregoing, a transaction will not be deemed to involve a
Change of Control if (i) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (ii) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are
substantially the same as the holders of the Company’s Voting Stock immediately prior to that transaction. 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment
Grade Rating Event. Notwithstanding the foregoing, no Change of Control Triggering Event will be deemed to have occurred in connection with any particular Change of Control unless and until such Change of Control has actually been consummated. 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor
rating category of Moody’s) and a rating of BBB- or better by S&P (or its equivalent under any successor rating category of S&P), and the equivalent investment grade credit rating from any
replacement Rating Agency or Rating Agencies selected by the Company under the circumstances permitting the Company to select a replacement Rating Agency and in the manner for selecting a replacement Rating Agency, in each case as set forth in the
definition of “Rating Agency.” 
 “Moody’s” means Moody’s Investors Service, Inc. and
its successors. 
 “Rating Agency” means each of Moody’s and S&P; provided that if
any of Moody’s or S&P ceases to rate the Notes for reasons outside the Company’s control, the Company may appoint another “nationally recognized statistical rating organization” (as defined under the Exchange Act) as a
replacement for such Rating Agency. The Company shall give written notice of any such appointment to the Trustee. 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., and its successors. 
 “Voting Stock” of any specified Person as of any date means the capital stock
(or comparable equity interests) of such Person that is at the time entitled to vote generally in the election of the board of directors (or members of the governing body) of such Person. 

  
 A-8 

 3. Optional Redemption. The Notes shall be redeemable at any time or
from time to time, in a whole or in part, at the Company’s option, on at least 30 days’ but not more than 60 days’ prior notice to each Holder of Notes to be redeemed (the “Redemption Date” or “Date of
Redemption”), at a redemption price (the “Redemption Price”) that is: 
 (a) if the Redemption Date
is before November 15, 2017 (the “Par Call Date”), an amount equal to the greater of (i) 100% of the principal amount of the notes to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments
that would be due if the Notes matured on the par call date (not including any portion of such payments of interest accrued to the Date of Redemption) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate (as defined below) plus 25 basis points; or 

(b) if the Redemption Date is on or after the Par Call Date, an amount equal to 100% of the principal amount of the Notes to be
redeemed. 
 The Redemption Price for any Notes redeemed pursuant to this Paragraph 3 shall include accrued and unpaid interest, if any, on
the principal amount of such Notes up to, but not including, the Redemption Date, subject to the rights of Holders of such Notes on the relevant Regular Record Date to receive interest due on the relevant Regular Interest Payment Date. 

A partial redemption of Notes may be effected by such method as the Trustee may deem fair and appropriate and may provide for the selection
for redemption of a portion of the principal amount of Notes held by a Holder equal to an authorized denomination or in accordance with the applicable procedures of The Depository Trust Company. 

For purposes of this Paragraph 3, the following terms shall have the following specified meanings: 

“Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. 

“Comparable Treasury Issue” means the United States Treasury security selected by a Quotation Agent as having
a maturity comparable to the Par Call Date that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Par Call Date. 

“Quotation Agent” means the Reference Treasury Dealer appointed by the Company. 

“Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of the Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the
average of all Reference Treasury Dealer Quotations obtained. 

  
 A-9 

 “Reference Treasury Dealer” means (1) Citigroup Global
Markets Inc., J.P. Morgan Securities LLC And Merrill Lynch, Pierce, Fenner & Smith Incorporated, and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities
dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute therefor another primary treasury dealer, and (2) any other Primary Treasury Dealer selected by the Company. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any
Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference
Treasury Dealer as of 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 The provisions of Article
Eleven of the Indenture shall apply to any redemption of the Notes. 
 The Notes are not entitled to the benefit of any sinking fund. 

 

	 	4.	Amendments and Waivers. 

 The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes under the Indenture and the Notes at any time by the Company and the Trustee with the consent of the Holders
of a majority in aggregate principal amount of the Notes at the time Outstanding and, in some cases, without the consent of any Holders. 

The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Notes at the time
Outstanding, on behalf of the Holders of all Notes, to waive compliance by the Company with certain provisions of the Indenture and the Notes and certain past defaults under the Indenture and their consequences. 

Any such consent or waiver by the Holders of Notes shall be conclusive and binding upon such Holders and upon all future Holders of the Notes
and of any Notes issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

 

	 	5.	Effect of Event of Default. 

 If an Event of Default with respect to the Notes shall
occur and be continuing, the principal of the Notes may be declared, or shall immediately become, due and payable in the manner and with the effect provided in the Indenture. 
  

	 	6.	Obligation to Pay Principal and Interest. 

 No reference herein to
the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin
or currency, herein prescribed. 

  
 A-10 

	 	7.	Defeasance. 

 The Indenture contains provisions for defeasance at
any time of the entire indebtedness of the Notes or certain restrictive covenants and Events of Default with respect to such Notes, in each case upon compliance with certain conditions set forth in the Indenture. 

 

	 	8.	Denominations; Exchanges. 

 As provided in the Indenture and in the manner and subject to
certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company maintained for such purpose. The Notes are
issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
 Prior to
due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note
be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
  

	 	9.	Global Security. 

 This Note is a Global Security and is subject to the provisions of the
Indenture relating to Global Securities, including the limitations in Section 305 thereof on transfers and exchanges of Global Securities. 
  

	 	10.	Governing Law. 

 This Note and the Indenture shall be governed by, and construed in
accordance with, the law of the State of New York. 

  
 A-11 

 SCHEDULE OF INCREASES OR DECREASES 

The following increases or decreases in this Global Security have been made: 

 

																	
	 Date of Transfer or Exchange
	  	Amount of
decrease in
Principal
Amount of this
Global Security	 	  	Amount of
increase in
Principal
Amount of this
Global Security	 	  	Principal
Amount of this
Global Security
following such
decrease or
increase	 	  	Signature of
authorized
signatory of
Trustee or
Security Registrar	 
		  				  				  				  			
		  				  				  				  			
		  				  				  				  			

  
 A-12DEBT
SETTLEMENT AGREEMENT

 

This
Debt Settlement Agreement (“Agreement”) is entered into on this __th day of February, 2017 (the “Effective Date”),
by and between Webcor Construction LP, dba Webcor Builders, a California limited partnership, (“Webcor”) and CleanSpark,
Inc., a Nevada corporation, and CleanSpark, LLC, a California limited liability company (together “CleanSpark”) (individually,
a “Party”, and all collectively, the “Parties”).

 

RECITALS

 

WHEREAS,
in 2016, Webcor paid $158,753.49 on behalf of CleanSpark, LLC to various subcontractors, which amount remains due and owing to
Webcor (the “Debt”);

 

WHEREAS,
CleanSpark, LLC committed to repay the Debt as soon as it was financially capable. Subsequent to this commitment, CleanSpark,
LLC was acquired by CleanSpark, Inc. (f.k.a. Stratean Inc.);

 

WHEREAS,
CleanSpark wishes to repay the Debt under the terms and conditions of this Agreement; and

 

NOW,
THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES AGREE
AS SET FORTH BELOW:

 

1.
       Recitals. The foregoing recitals are true and incorporated herein, as though
set forth in full.

 

2.       Payment
to Webcor. 

 

a.       CleanSpark
shall pay and deliver to Webcor the following payment (the “Payment”):

 

i.                   
USD $58,000.00 on or before February 28, 2017; and

ii.                 
50,000 shares of common stock in CleanSpark, Inc., to be issued within 4 days of execution of the Debt Conversion Agreement.

 

b.       In
connection with the obligation set forth in Section 2.a.ii. above, Webcor and CleanSpark, Inc. shall execute the accompanying
Debt Conversion Agreement attached hereto as Exhibit “A.”

 

c.       Upon
execution of this Agreement and the Debt Conversion Agreement and upon receipt of the Payment, Webcor shall accept the same as
full payment and satisfaction of the Debt and the release contained in Section 4 shall be in full force and effect.

 

    	 		 

    	 

    

 

3.
       Definitions used in Section 4. For purpose of Section 4 of this Agreement,
the term “Releasors” shall mean and include the following persons and/or entities: Webcor and its affiliated and/or
subsidiary companies and partnerships, together with any and all past and present trustees, receivers, board members, employees,
officers, directors, shareholders, partners, agents, representatives, subsidiaries, unincorporated divisions, insurance carriers,
sureties, consultants, attorneys, successors, assigns, heirs, executors, administrators, tenants, licensees, invitees, joint venturers,
subcontractors, members, and related persons, predecessors, entities or companies.

 

For
purpose of Section 4 of this Agreement, the term “CleanSpark” shall mean and include the following persons and/or
entities: the named Party (as defined in this Agreement) individually, jointly, severally, and on behalf of its respective affiliated
and/or subsidiary companies and partnerships, together with any and all past and present partners, associates, managers, employees,
members, agents, representatives, subsidiaries, unincorporated divisions, insurance carriers, sureties, consultants, attorneys,
successors, assigns, administrators, tenants, licensees, invitees, joint venturers, subcontractors, and related persons, predecessors,
entities or companies.

 

4.       Release
of CleanSpark. Releasors hereby fully release and discharge CleanSpark of and from all claims, actions, causes of action,
demands, rights, agreements, promises, liabilities, losses, damages, costs and expenses, of every nature and character, description
and amount, either known or unknown, without limitation or exceptions, whether based on theories of contract, breach of contract,
breach of the covenant of good faith and fair dealing, breach of professional and/or fiduciary duty, tort, violation of statute,
ordinance, or any other theory of liability or declaration of rights whatsoever, which Releasors may now have or may hereafter
acquire against CleanSpark, whether asserted or not, arising directly or indirectly from or based on any cause, event, transaction,
act, omission, occurrence, condition or matter, of any kind or nature whatsoever, which has occurred to date or may hereafter
occur relating to or arising out of the Debt. Nothing contained herein is intended to limit Releasors rights as shareholders of
Cleanspark, Inc. upon issuance of the stock noted in Section 2.a.ii., above.

 

It
is understood by the Parties that the facts with respect to which the foregoing release is given may hereafter turn out to be
other than or different from the facts in that connection now known to it or believed by them to be true, and they therefore expressly
assume the risk of the facts turning out to be so different and agree that the foregoing general release shall be in all respects
effective and not subject to termination or rescission by any such difference in facts.

 

5.
       Representations and Warranties.

 

a.
       This Agreement is executed by the Parties without reliance upon any statement or representation
by the persons or parties herein released, or their attorneys or representatives, other than those set forth in this Agreement.

 

    	 	2	 

    	 

    

 

b.
       Each of the Parties represents and warrants that the execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby has been duly authorized by all necessary and appropriate
corporate action.

 

c.
       Each of the persons signing this Agreement represents and warrants that he or she has
the right and full authority to sign on behalf of the party designated immediately above his or her signed name.

 

6.
       General Provisions.

 

a.
       No Admission of Liability. Each of the Parties agrees that this Agreement is
a compromise relating to the matters released herein, and shall never be treated as an admission of liability of any Party for
any purpose, and that liability therefor is expressly denied by each of the Parties.

 

b.
       Execution of Additional Documents. Each of the Parties hereby agrees to perform
any and all acts and to execute and deliver any and all documents reasonably necessary or convenient to carry out the intent and
the provisions of this Agreement and the Debt Conversion Agreement.

 

c.
       Entire Agreement. This Agreement and the accompanying Debt Conversion Agreement
constitute the entire agreement among all of the Parties relative to the subject matter hereof. All negotiations, proposals, modifications
and agreements prior to the date hereof among the Parties are merged into this Agreement and Debt Conversion Agreement and superseded
hereby. There are no other terms, conditions, promises, understandings, statements, or representations, express or implied, among
all of the Parties concerning this Agreement and the Debt Conversion Agreement unless set forth in writing and signed by all of
the Parties.

 

d.
       No Waiver. No action or want of action on the part of any Party at any time to
execute any rights or remedies conferred upon it under this Agreement shall be, or shall be asserted to be, a waiver on
the part of any party hereto of its rights or remedies hereunder.

 

e.
       Amendments. This Agreement may only be modified by an instrument in writing executed
by the parties hereto.

 

f.
       Law of California. This Agreement shall be construed in accordance with the law
of the State of California, and the parties hereto agree that the state or federal courts located in Los Angeles County, California,
shall be the sole and exclusive venue of any action which may arise out of or be filed with respect to this Agreement. Further,
all parties hereto irrevocably consent to personal jurisdiction in the state of California in connection with any action which
may arise out of or be filed with respect to this Agreement.

 

    	 	3	 

    	 

    

 

g.
       Attorneys' Fees. Should any action (at law or in equity, including but not limited
to an action for declaratory relief) or proceeding be brought arising out of, relating to or seeking the interpretation or enforcement
of the terms of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with the
terms of this Agreement, the prevailing party thereto, as decided by the Court, shall be entitled to reasonable attorneys' fees
and costs incurred in addition to any other relief or damages which may be awarded.

 

h.
       No Third Party Beneficiary. This Agreement is for the benefit of the Parties
and those persons included in the definition of “CleanSpark” in section 3 and released in section 4. This Agreement
confers no rights, benefits or causes of action in favor of any other third parties or entities.

 

i.
       Severance. Should any term, part, portion or provision of this Agreement be decided
or declared by the Courts to be, or otherwise found to be, illegal or in conflict with any law of the State of Nevada or the United
States, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms, portions and provision
shall be deemed severable and shall not be affected thereby, providing such remaining parts, terms, portions or provisions can
be construed in substance to constitute the agreement that the Parties intended to enter into in the first instance.

 

j.
       Pronouns, Headings. All pronouns and variations thereof shall be deemed to refer
to the masculine, feminine, or neuter, and to the singular or plural, as the identity of the person may require. Paragraph titles
or captions are used in this Agreement for convenience or reference, and in no way define, limit, extend or describe the scope
or intent of this Agreement or any of its provisions.

 

k.
       Successors and Assigns. This Agreement shall be binding and inure to the benefit
of the parties hereto, their predecessors, parents, subsidiaries and affiliated corporations, all officers, directors, shareholders,
agents, employees, attorneys, assigns, successors, heirs, executors, administrators, and legal representatives of whatsoever kind
or character in privity therewith.

 

l.
       Counterparts. This Agreement may be executed in counterparts, one or more of
which may be facsimiles, but all of which shall constitute one and the same Agreement. Facsimile signatures of this Agreement
shall be accepted by the parties to this Agreement as valid and binding in lieu of original signatures.

 

m.
       Time for Performance. The Parties understand that time is of the essence with
respect to each and every act required by this Agreement. Failure to perform any provision hereof in strict accordance with the
Agreement shall be deemed a material breach of the Agreement.

 

n.
       Understanding of Agreement. The Parties acknowledge that they have fully read
the contents of this Agreement and that they have had the opportunity to obtain the advice of counsel of their choice, and that
they have full, complete and total comprehension of the provisions hereof and

 

    	 	4	 

    	 

    

 

are
in full agreement with each and every one of the terms, conditions and provisions of this Agreement. As such, the Parties agree
to waive any and all rights to apply an interpretation of any and all terms, conditions or provisions hereof, including the rule
of construction that such ambiguities are to be resolved against the drafter of this Agreement. For the purpose of this instrument,
the Parties agree that ambiguities, if any, are to be resolved in the same manner as would have been the case had this instrument
been jointly conceived and drafted.

 

IN
WITNESS WHEREOF, each of the parties has executed this Agreement effective as of the date first written above.

 

WEBCOR
CONSTRUCTION LP DBA WEBCOR BUILDERS 

 

 

By:
/ s/ Matthew R. Reece

 

Print
name: Matthew R. Reece

 

Its:
EVP & CEO

 

 

CLEANSPARK,
INC. 

 

 

By:
/s/ Zachary Bradford

 

Print
name: Zachary Bradford

 

Its:
President and CFO

 

 

CLEANSPARK,
LLC 

 

 

By:
/s/ Zachary Bradford

 

Print
name: Zachary Bradford

 

*Its:
Authorized Representative

 

 

    	 	5	 

    	 

    

 

Exhibit
A

 

NONE
OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE "SUBSCRIPTION AGREEMENT") RELATES HAVE
BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR ANY U.S. STATE SECURITIES
LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, EXCEPT IN ACCORDANCE WITH THE PROVISIONS
OF THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS.

 

DEBT
CONVERSION AGREEMENT

 

TO:
Webcor Construction, LP dba Webcor Builders

 

FROM:CleanSpark,
Inc. (the “Company”)

 

PURCHASE
OF SHARES

 

1.
       Subscription

 

1.1.       On
the basis of the representations and warranties and subject to the terms and conditions set forth herein, the undersigned (the
“Subscriber”) hereby irrevocably agrees to convert $100,000 of the outstanding $158,753.49 (the “Debt”)
into shares of Common Stock of the Company (such subscription and agreement to convert being the “Subscription”),
for an aggregate of 50,000 shares of Common Stock of the Company (the “Shares”).

 

1.2.       On
the basis of the representations and warranties and subject to the terms and conditions set forth herein, the Company hereby irrevocably
agrees to issue the Shares to the Subscriber in exchange for and upon the conversion of the Debt.

 

1.3.       Unless
otherwise provided, all dollar amounts referred to in this Subscription Agreement are in lawful money of the United States of
America.

 

2.       
Payment

 

2.1.       The
Subscriber agrees to convert the Debt into Shares of the Company as provided herein.

 

3.       
Documents Required from Subscriber

 

    	 	6	 

    	 

    

 

3.1.       The
Subscriber must complete, sign and return to the Company two (2) executed copies of this Subscription Agreement.

 

3.2.       The
Subscriber shall complete, sign and return to the Company as soon as possible, on request by the Company, any additional documents,
questionnaires, notices and undertakings as may be required by any regulatory authorities and applicable law.

 

4.       Closing

 

4.1.       Closing
of the transactions contemplated by this Subscription Agreement shall occur on such date as may be mutually agreed by the Company
and Subscriber (the “Closing Date”).

 

5.       Acknowledgements
and Agreements of Subscriber

 

5.1
The Subscriber acknowledges and agrees that:

 

(a)       the
Shares are “restricted securities” as that term is defined in Rule 144 promulgated by the Securities and Exchange
Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”), the
resale of the Shares is restricted by federal and state securities laws and, accordingly, the Shares must be held indefinitely
unless their resale is subsequently registered under the Securities Act or an exemption from such registration is available for
their resale;

 

(b)       Other
than as contemplated herein, the Subscriber acknowledges that the Company has not undertaken, and will have no obligation, to
register any of the Shares under the 1933 Act;

 

(c)       The
Subscriber is representing and warranting that the Subscriber is an accredited investor as the term is defined in Rule 501 of
Regulation D;

 

(d)       The
decision to execute this Subscription Agreement and acquire the Shares agreed to be purchased hereunder has not been based upon
any oral or written representation as to fact or otherwise made by or on behalf of the Company;

 

(e)       The
Subscriber and the Subscriber’s advisor(s) have had a reasonable opportunity to ask questions of and receive answers from
the Company in connection with the issuance of the Shares hereunder, and to obtain additional information, to the extent possessed
or obtainable without unreasonable effort or expense, necessary to verify the accuracy of the information about the Company;

 

(f)       The
books and records of the Company were available upon reasonable notice for inspection, subject to certain confidentiality restrictions,
by the Subscriber during reasonable business hours at its principal place of business, and all documents, records and books in
connection

 

    	 	7	 

    	 

    

 

with
the distribution of the Shares hereunder have been made available for inspection by the Subscriber, the Subscriber's lawyer and/or
advisor(s);

 

(g)       The
Company is entitled to rely on the representations and warranties of the Subscriber contained in this Subscription Agreement and
the Subscriber will hold harmless the Company from any loss or damage it or they may suffer as a result of the Subscriber's failure
to correctly complete this Subscription Agreement;

 

(h)       The
Subscriber will indemnify and hold harmless the Company and, where applicable, its directors, officers, employees, agents, advisors
and shareholders, from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited
to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim,
lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any representation
or warranty of the Subscriber contained in this Subscription Agreement or in any document furnished by the Subscriber to the Company
in connection herewith being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant
or agreement made by the Subscriber to the Company in connection therewith;

 

(i)       The
Subscriber has been advised to consult the Subscriber's own legal, tax and other advisors with respect to the merits and risks
of an investment in the Shares and with respect to applicable resale restrictions, and it is solely responsible (and the Company
is not in any way responsible) for compliance with: (i) any applicable laws of the jurisdiction in which the Subscriber is resident
in connection with the distribution of the Shares hereunder, and (ii) applicable resale restrictions;

 

(j)       Neither
the Commission nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of any
of the Shares;

 

(k)       No
documents in connection with the sale of the Shares hereunder have been reviewed by the Commission or any state securities administrators;

 

(l)       There
is no government or other insurance covering any of the Shares;

 

(m)       This
Subscription Agreement is not enforceable by the Subscriber unless it has been accepted by the Company.

 

6.       Representations,
Warranties and Covenants of the Subscriber

 

6.1.       The
Subscriber hereby represents and warrants to and covenants with the Company (which representations, warranties and covenants shall
survive the Closing) that:

 

    	 	8	 

    	 

    

 

(a)       It
has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant
hereto and, if the Subscriber is a corporate entity, it is duly incorporated and validly subsisting under the laws of its jurisdiction
of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution
and performance of this Subscription Agreement on behalf of the Subscriber;

 

(b)       The
entering into of this Subscription Agreement and the transactions contemplated hereby do not result in the violation of any of
the terms and provisions of any law applicable to, or, if the Subscriber is a corporate entity, the documents of, the Subscriber
or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;

 

(c)       The
Subscriber has duly executed and delivered this Subscription Agreement and it constitutes a valid and binding agreement of the
Subscriber enforceable against the Subscriber;

 

(d)       The
Subscriber has received and carefully read this Subscription Agreement;

 

(e)       The
Subscriber is resident in the jurisdiction set out under the heading "Name and Address of Subscriber" on the signature
page of this Subscription Agreement;

 

(f)       The
Subscriber is purchasing the Shares pursuant to exemptions from prospectus or equivalent requirements under applicable securities
laws;

 

(g)       The
Subscriber is acquiring the Shares as principal for investment only and not with a view to resale or distribution;

 

(h)       The
Subscriber is aware that an investment in the Company is speculative and involves certain risks, including the possible loss of
the entire investment;

 

(i)       The
Subscriber has made an independent examination and investigation of an investment in the Shares and the Company and has depended
on the advice of its legal and financial advisors and agrees that the Company will not be responsible in any way whatsoever for
the Subscriber's decision to invest in the Shares and the Company;

 

(j)       The
Subscriber (i) has adequate net worth and means of providing for its current financial needs and possible personal contingencies,
(ii) has no need for liquidity in this investment, and (iii) is able to bear the economic risks of an investment in the Shares
for an indefinite period of time;

 

(k)       The
Subscriber understands and agrees that the Company and others will rely upon the truth and accuracy of the acknowledgements, representations
and agreements contained in this Subscription Agreement and agrees that if any of such acknowledgements, representations and

 

    	 	9	 

    	 

    

 

agreements
are no longer accurate or have been breached, the Subscriber shall promptly notify the Company;

 

(l)       The
Subscriber (i) is able to fend for him/her/itself in the Subscription; (ii) has such knowledge and experience in business matters
as to be capable of evaluating the merits and risks of its prospective investment in the Shares; and (iii) has the ability to
bear the economic risks of its prospective investment and can afford the complete loss of such investment;

 

(m)       The
Subscriber understands and agrees that the Shares are “restricted securities” as that term is defined in Rule 144
promulgated by the Commission under the Securities Act, the resale of the Shares is restricted by federal and state securities
laws and, accordingly, the Shares must be held indefinitely unless their resale is subsequently registered under the Securities
Act or an exemption from such registration is available for their resale;

 

(n)       The
Subscriber is representing and warranting that it is an "accredited investor" as that term is defined in Rule 501 of
Regulation D of the 1933 Act;

 

(o)       The
Subscriber will notify the Company immediately of any material change in any such information occurring prior to the closing of
the purchase of the Shares;

 

(p)       The
Subscriber is not an underwriter of, or dealer in, the common shares of the Company, nor is the Subscriber participating, pursuant
to a contractual agreement or otherwise, in the distribution of the Shares;

 

(q)       The
Subscriber is not aware of any advertisement of any of the Shares and is not acquiring the Shares as a result of any form of general
solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper,
magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by
general solicitation or general advertising; and

 

(r)       The
Subscriber acknowledges and agrees that the Company shall not consider the Subscriber's Subscription for acceptance unless the
undersigned provides to the Company, along with an executed copy of this Subscription Agreement such other supporting documentation
that the Company or its legal counsel may request to establish the Subscriber's qualification as a qualified investor.

 

7.       Representations
and Warranties Will be relied upon by the Company

 

7.1.       The
Subscriber acknowledges that the representations and warranties contained herein are made by it with the intention that such representations
and warranties may be relied upon by the Company and its legal counsel in determining the Subscriber's eligibility to acquire
the Shares under applicable securities legislation, or (if applicable) the eligibility of others on whose behalf it is

 

    	 	10	 

    	 

    

 

contracting
hereunder to purchase the Shares under applicable securities legislation. The Subscriber further agrees that by accepting delivery
of the certificates representing the Shares on the Closing Date, it will be representing and warranting that the representations
and warranties contained herein are true and correct as at the Closing Date with the same force and effect as if they had been
made by the Subscriber on the Closing Date and that they will survive the acquisition by the Subscriber of the Shares and will
continue in full force and effect notwithstanding any subsequent disposition by the Subscriber of such securities.

 

8.       
Resale Restrictions

 

8.1.       The
Subscriber acknowledges that any resale of the Shares will be subject to resale restrictions contained in the securities legislation
applicable to the Subscriber or proposed transferee. The Subscriber acknowledges that none of the Shares have been registered
under the Securities Act or the securities laws of any state of the United States.

 

9.       Acknowledgement
and Waiver

 

9.1.       The
Subscriber has acknowledged that the decision to acquire the Shares was solely made on the basis of publicly available information.
The Subscriber hereby waives, to the fullest extent permitted by law, any rights of withdrawal, rescission or compensation for
damages to which the Subscriber might be entitled in connection with the distribution of any of the Shares.

 

10.       Legending
and Registration of Subject Securities

 

10.1.       The
Subscriber hereby acknowledges that a legend may be placed on the certificates representing the Shares to the effect that the
Shares represented by such certificates are subject to a hold period and may not be traded until the expiry of such hold period
except as permitted by applicable securities legislation.

 

10.2.       The
Subscriber hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar
and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this Agreement.

 

11.       Governing
Law

 

11.1.       This
Subscription Agreement is governed by the laws of the State of Nevada.

 

12.       
Survival

 

12.1.       This
Subscription Agreement, including without limitation the representations, warranties and covenants contained herein, shall survive
and continue in full force and effect and be binding upon the parties hereto notwithstanding the completion of the purchase of
the Shares by the Subscriber
pursuant hereto.

 

    	 	11	 

    	 

    

 

13.       Assignment

 

13.1.       This
Subscription Agreement is not transferable or assignable.

 

14.       Severability

 

14.1.       The
invalidity or unenforceability of any particular provision of this Subscription Agreement shall not affect or limit the validity
or enforceability of the remaining provisions of this Subscription Agreement.

 

15.       Entire
Agreement

 

15.1.       Except
as expressly provided in this Subscription Agreement and in the agreements, instruments and other documents contemplated or provided
for herein, this Subscription Agreement contains the entire agreement between the parties with respect to the sale of the Shares
and there are no other terms, conditions, representations or warranties, whether expressed, implied, oral or written, by statute
or common law, by the Company or by anyone else.

 

16.       Counterparts
and Electronic Means

 

16.1.       This
Subscription Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall constitute
an original and all of which together shall constitute one instrument. Delivery of an executed copy of this Agreement by electronic
facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution
and delivery of this Agreement as of the date hereinafter set forth.

 

[The
balance of this page intentionally left blank]

 

    	 	12	 

    	 

    

 

IN
WITNESS WHEREOF the Subscriber has duly executed this Subscription Agreement as of the date of acceptance by the Company.

 

Webcor
Construction LP dba Webcor Builders

 

By:
/s/ Matthew R. Reece

 

Its:
EVP & CEO

 

 

 

1751
Harbor Bay Pkwy, Suite 200

(Address
of Subscriber)

 

 

Alameda,
CA 94502

(City,
State or Province, Postal Code of Subscriber)

 

 

20-8399744

(Tax
ID of Subscriber)

 

    	 	13	 

    	 

    

 

ACCEPTANCE

 

The
foregoing Subscription Agreement is hereby accepted by CleanSpark, Inc.

 

 

DATED
the 9th day of February, 2017.

 

 

CleanSpark,
Inc.

 

 

 

By:
/s/ Zachary Bradford

 

 

Its:
President and CFO

 

    	 	14

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