Document:

Pioneer Power Solutions Inc. 8-K

Exhibit 10.2

    CONTRACT MANUFACTURING AGREEMENT 

    This CONTRACT MANUFACTURING AGREEMENT (the “Agreement”) is made as of January 22, 2019, by and between Cleanspark, Inc., a Nevada corporation (“Cleanspark”) and Pioneer Power Solutions, Inc., a Delaware corporation (“Pioneer”).

    Recitals 

    A. Cleanspark and Pioneer Critical Power, Inc., a Delaware corporation. (“PCP”) have entered into a Agreement and Plan of Merger, dated January 22, 2019 (the “Merger Agreement”), providing, among other things, a merger of PCP into a wholly-owned subsidiary of Cleanspark resulting in PCP becoming a wholly-owned subsidiary of Cleanspark (the “Merger”). Execution and delivery of this Agreement is a condition to the consummation of the Merger.

    B. Pioneer has, through its wholly owned subsidiary, a manufacturing facility in Santa Fe Springs, California equipped for manufacturing parallel switchgears, automatic transfer switches and related control and circuit protective equipment, in each case, as currently produced by Pioneer (collectively, the “Products”).

     

    C. Pioneer desires to provide for the manufacture of Products by the Santa Fe Springs, California facility exclusively for purchase by Cleanspark, and Pioneer is willing to sell Products to Cleanspark on an exclusive basis, all on the terms and conditions set forth in this Agreement.

    Terms of Agreement 

    Accordingly, in consideration of the agreements set forth herein and other good and valuable consideration, the parties hereby agree as follows:

    1. Agreement to Manufacture Products. Subject to the terms and conditions of this Agreement, Pioneer shall manufacture Products exclusively for Cleanspark.

    2. Purchases of Products by Cleanspark.

    2.1 Purchase Orders. Cleanspark may, at any time and from time to time, issue to Pioneer purchase orders for Products in such quantities as Cleanspark may determine (“Purchase Orders”). Each Purchase Order shall be in the form attached hereto as Annex 1. Pioneer shall issue a written order acknowledgement for each Purchase Order.

    2.2 Prices. The Products shall be sold to Cleanspark at prices calculated in accordance with the calculation set forth on Annex 2.

    2.3 Title to Products. Except as the parties may otherwise agree in writing, title to the Products shall pass to the Cleanspark when Pioneer delivers the Products to a common carrier for further delivery to Cleanspark or its designee.

    2.4 Risk of Loss. Except as may be otherwise agreed in writing, the risk of loss of the Products shall pass from Pioneer to Cleanspark upon delivery by Pioneer to a common carrier, such that risk of loss of the Products during carriage shall be with Cleanspark.

    2.5 Payment Terms. Pioneer shall deliver invoices to the Cleanspark for sales of Products promptly following receipt of each Purchase Order. Payment of each invoice shall be due from Cleanspark as follows: 1) 10% of the invoice amount upon receipt of the Invoice by Cleanspark, 2) 40% of the invoice amount upon shipment of the Products to which the invoice relates, and 3) 50% of the invoice within 30 days of shipment of such Products.

    2.6 Shipment. Pioneer shall, at Cleanspark’s cost, ship the Products to the destinations specified in writing Cleanspark and in accordance with shipping instructions supplied by Cleanspark. In the absence of instructions from Cleanspark, Pioneer may ship the Products to Cleanspark’s address as set forth in the applicable purchase order by any reasonable means.

     

    
    
        	 	
                    
                	 

    

    
        	 

    

    
     

    2.9 Claims. If Cleanspark notifies Pioneer that Cleanspark is rejecting any Products delivered by Pioneer as damaged, defective or otherwise not conforming to the applicable specifications, then Pioneer shall, with Cleanspark’s cooperation, within 14 days of receipt of such notice, take all necessary actions (e.g., technical visits, inspections and sample analyses) to confirm whether Pioneer will dispute such rejection under this Agreement. If Pioneer and Cleanspark agree that the rejected Products are non-conforming, then Cleanspark may elect to (i) accept the non-conforming Products and receive a discount in an amount mutually agreed by Pioneer and Cleanspark or (ii) require Pioneer to provide replacement Products as promptly as reasonably practicable. If Pioneer requests that any such non-conforming Products be returned to Pioneer, then (A) Cleanspark shall promptly re-package such Products in the manner in which they were delivered and (B) Pioneer shall arrange for such non-conforming Products to be removed from Cleanspark’s (or its customer’s) facilities within 30 days.

    3. No Warranties by Cleanspark. Cleanspark shall not make any guaranty, warranty or representation pertaining to the Products on behalf of Pioneer that is not expressly set forth in Pioneer’s order acknowledgement or as required under applicable state law.

    4. Term and Termination.

    4.1 Term. This Agreement shall have a term of 18 months from the date hereof and may continue beyond such initial term for such additional terms as the parties may mutually agree in a signed writing.

    4.2 Termination for Default.

    (a) Notwithstanding Section 4.1, Pioneer may terminate this Agreement effective immediately upon written notice provided by Pioneer to Cleanspark (i) if payment otherwise due and payable to Pioneer is not made when due and such payment is not made within 30 days from the date of written notice to Cleanspark of such nonpayment; (ii) in the event that any breach or default by Cleanspark under this Agreement shall have continued for 30 days after written notice thereof shall have been given by Pioneer; or (ii) if Cleanspark shall be or become insolvent or if there are instituted by or against Cleanspark proceedings in bankruptcy or under other laws of or pertaining to insolvency, creditors’ rights or reorganization, receivership or dissolution, or if Cleanspark shall make an assignment for the benefit of creditors.

    (b) Notwithstanding Section 4.1, Cleanspark may terminate this Agreement effective immediately upon written notice provided by Cleanspark to Pioneer (i) in the event that any breach or default by Pioneer under this Agreement shall have continued for 30 days after written notice thereof shall have been given Cleanspark to Pioneer; or (ii) if Pioneer shall be or become insolvent or if there are instituted by or against Pioneer proceedings in bankruptcy or under other laws of or pertaining to insolvency, creditors’ rights or reorganization, receivership or dissolution, or if Pioneer shall make an assignment for the benefit of creditors.

    4.4 Outstanding Orders and Further Activity by Cleanspark. Upon termination of this Agreement for any reason, orders received by Pioneer prior to the expiration or termination of this Agreement shall be completed and sold by Pioneer to Cleanspark according to the terms of any such orders, subject to Cleanspark’s payment in full of all outstanding invoices and the invoices for such orders no later than the date of expiration or termination of this Agreement.

    4.5 Liability in the Event of Termination. The parties shall not be liable in any manner whatsoever on account of termination or expiration of this Agreement. The parties shall not, by reason of the expiration or termination of this Agreement at any time or times or for any reason, be liable to any of the other parties for compensation, reimbursement or damages on account of the loss of prospective profits on anticipated sales, on account of expenditures, investments, leases or commitments in connection with the business or goodwill of the other parties, on account of loss of customers or otherwise.

    5. Independent Contractor. Each party and its affiliates, together with the officers, directors, employees, agents, subcontractors and other representatives of such party and of such party’s affiliates (collectively with such affiliates, “Representatives”) performing such party’s obligations under this Agreement, are and shall at all times remain independent contractors with respect to the other party.

     

    6. Indemnification.

     

    
    
        	 	
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    6.1 Pioneer Indemnities. Pioneer shall indemnify and hold Cleanspark and Cleanspark’s Representatives harmless from and against any and all liabilities, losses, proceedings, actions, damages, claims or expenses of any kind, including costs and reasonable attorneys’ fees, which result from (i) any gross negligence or willful misconduct by Pioneer or its Representatives in connection with the obligations of Pioneer under this Agreement, (ii) any breach of this Agreement by Pioneer, (iii) any products liability claim relating to any Product under this Agreement, and (iv) any third party intellectual property infringement claim with regard to (a) any Product or (b) any process used by Pioneer to produce Products under this Agreement.

    6.2 Cleanspark Indemnities. Cleanspark shall indemnify and hold Pioneer and Pioneer’s Representatives harmless from and against any and all liabilities, losses, proceedings, actions, damages, claims or expenses of any kind, including costs and reasonable attorneys’ fees which result from (i) any gross negligence or willful misconduct by Cleanspark or its Representatives in connection with the obligations of Cleanspark under this Agreement, and (ii) any breach of this Agreement by Cleanspark.

    6.3 No Implied Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PIONEER NOR CLEANSPARK, NOR THEIR RESPECTIVE REPRESENTATIVES, MAKE ANY REPRESENTATIONS OR EXTEND ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ALL OF WHICH ARE HEREBY DISCLAIMED.

     

    6.4 Liability Limit. Notwithstanding any other provision in this Agreement to the contrary, in no event shall either party be liable for special, incidental, consequential or punitive damages in connection with this Agreement. In addition, Pioneer’s liability to Cleanspark under this Agreement shall be limited to aggregate amount paid by Cleanspark to Pioneer for Products hereunder.

    7. Force Majeure. No party shall be liable for any failure in the fulfillment of any of its obligations under this Agreement (other than the obligation to pay the purchase price of Products sold and delivered) to the extent that such failure is due to any prevention, delay, interruption, loss or damage occasioned by Force Majeure (defined below). As used herein, “Force Majeure” means (a) an act of God, act of the public enemy, act or threat of terrorism, war declared or undeclared, revolution, riot, insurrection, civil commotion, public demonstration, sabotage, act of vandalism, lightning, fire, flood, storm, drought, earthquake or extreme weather conditions, explosion, breakdown of machinery or jetties, in each case which could not have been prevented by prudent operating practices, (b) any strike, lock out or other industrial action or disturbance and (c) any other cause which is beyond the reasonable control of a party.

    8. Miscellaneous.

    8.1 Severability. If any provision of this Agreement for any reason shall be held to be illegal, invalid or unenforceable, such illegality shall not affect any other provision of this Agreement, but this Agreement shall be construed as if such illegal, invalid or unenforceable provision had never been included herein.

    8.2 Assignment; Binding Effect. No assignment by any party of its rights nor (except as otherwise provided herein) delegation by any party of its obligations under this Agreement shall be permitted unless the other party consents in writing thereto; provided, that either party may assign any of its rights hereunder to, or perform any of its obligations hereunder through, one or more of its affiliates. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

    8.3 Governing Law; Submission to Jurisdiction. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California other than conflict of laws principles thereof directing the application of any law other than that of the state of California. The parties submit to the exclusive jurisdiction of the state and federal courts located in San Diego County, California for any action, suit or other proceeding arising out of this Agreement.

    8.4 Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, by facsimile or other electronic transmission (with confirmation) or by an overnight courier (with confirmation) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

    
    
        	 	
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    if to Pioneer, to:

     

    Pioneer Power Solutions, Inc.
        
400 Kelby Street, 12th Floor

    Fort Lee, New Jersey
        
Attn: Nathan Mazurek, Chief Executive Officer
        
Email: nmazurek@pioneerpowersolutions.com

    with a copy to:

    Haynes and Boone, LLP
        
30 Rockefeller Plaza, 26th Floor
        
New York, NY 10112
        
Attn: Rick A. Werner
        
Email: rick.werner@haynesboone.com
        

        

    

    if to Cleanspark, to:

    CleanSpark, Inc.

    6365 Nancy Ridge Drive, Fl. 2

    San Diego, California 92121
        
Attn: Zachary Bradford, President
        
Facsimile: N/A

    Email: zach@cleanspark.com 

     

    with a copy to:

    The Doney Law Firm
        
Attn: Scott Doney

    Facsimile: N/A
        
Email: scott@doneylawfirm.com

     

    8.5 Entire Agreement. This Agreement including the Annexes attached hereto) contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto, and the printed terms of all quotations and purchase orders exchanged by the parties during the term of this Agreement shall have no force or effect.

    8.6 Waivers and Amendments. This Agreement may be amended, superseded, canceled, renewed or extended only by a written instrument signed by both parties.

    8.7 No Third Party Beneficiaries. Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person other than the parties hereto and their respective permitted successors and assigns, any rights or remedies under or by reason of this Agreement.

     

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    Execution 

    IN WITNESS WHEREOF, the parties have caused this Contract Manufacturing Agreement to be executed as of the day and year first above written.

     

    	 	 	 
	
                Pioneer Power Solutions, Inc. 
            
	 	 
	
                By:
            	
                 
            	
                /s/ Nathan Mazurek
            
	
                Name:
            	
                 
            	
                Nathan Mazurek
            
	
                Title:
            	
                 
            	
                Chief Executive Officer
            
	
                 
            	
                 
            
	
                 
            
	
                Cleanspark, Inc.
            
	
                 
            	
                 
            
	
                By:
            	
                 
            	
                /s/ Zachary Bradford
            
	
                Name:
            	
                 
            	
                Zachary Bradford
            
	
                Title:
            	
                 
            	
                President
            

     

    
    
        	 	
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    Annex 1

     

     Form of Purchase Order

 

 

     

    

    
    
        	 	
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    Annex 2

    Sales Price Calculation for each Product 

     

    The price payable to Pioneer by CleanSpark for the Products shall be negotiated by the parties on a case by case basis, but on all purchases both parties will have a target price of 91% of the of the CleanSpark Customer Purchase Order Price and in no case shall the price be more than 109% of Pioneers Cost. (the “Pioneer Fee”).

    For purposes of this Annex 2, “cost” shall include all costs associated with the production and design of the Product.   These costs include:  raw materials, a reasonable allocation of the direct labor, manufacturing overheads, design engineering overheads, which are consumed or used in the production of the Products.  Cost does not include any selling or administrative expenses. 

    Upon CleanSpark's written request given at least ten (10) business days in advance, Pioneer will provide CleanSpark with access to Pioneer’s books and records relating to the provision of the manufacturing services, during normal business hours, for the purpose of copying and making extracts therefrom, at CleanSpark's expense, to verify Pioneer’s calculation of its costs, including those for labor and allocated overhead.

    As of the date of closing and as a result CleanSpark’s purchase of Pioneer Critical Power Inc., all purchase orders held by CleanSpark will carry of fixed cost equal to 91% of the Customers Purchase Order Price.

    Example:

    	
                CleanSpark Customer
            	
                Purchase order 
            	
                Customer Purchase price
            	
                Pioneer Fee
            
	
                Enchanted rock
            	
                Multiple
            	
                $85,000.00
            	
                $77,350
            
	
                Total open Customer Purchase Orders(January 7, 2018)
            	
                Pioneer Fee
            
	
                $3,632,847
            	
                $3,305,890
            
	 	 	 	 	 	 

    
    	 	 7Pioneer Power Solutions Inc. 8-K  

Exhibit 10.3

     

    NON-COMPETITION AND NON-SOLICITATION AGREEMENT

     

    This Non-Competition and Non-Solicitation Agreement (this "Agreement") is entered into as of January 22, 2019 (the "Effective Date"), by and between CleanSpark, Inc., a Nevada corporation ("Buyer"), and Pioneer Power Solutions Inc., a Delaware corporation ("Shareholder").

     

    RECITALS

     

    A.  This Agreement is being entered into pursuant to and as a condition of that certain Agreement and Plan of Merger (the "Merger Agreement"), dated the date hereof, by and among Buyer, CleanSpark, Acquisition Inc., a Delaware corporation (the "Merger Sub"), and Pioneer Critical Power, Inc., a Delaware corporation (the "Company"), pursuant to which Buyer will acquire all of the outstanding capital stock held by Shareholder of the Company (the "Transaction").  As a result of the Merger Agreement, Merger Sub shall be merged with and into the Company, and the resulting entity shall be referred to as the "Surviving Company."

     

    B. It is anticipated and expected that the Effective Date of this Agreement shall correspond to the Effective Time of the Merger as set forth in Section 1.3 of the Merger Agreement.

     

    C. Shareholder is the sole equity holder of the Company and controls management of the Company, such that it is in possession of confidential and proprietary information, including trade secrets, relating to the business and operations of the Company, and will derive substantial economic benefit from the Transaction as a result of Buyer's purchase of all of Shareholder's equity interest in the Company.

     

    D. The parties recognize and agree that this Agreement is necessary to protect Buyer's interest in the Company, including its goodwill that will be acquired in connection with the Transaction.  As a result, in order to protect its interest in the Company, including its goodwill, Buyer desires to ensure that Shareholder and its Affiliates (as that term is defined in the Merger Agreement) will not compete with the Company for the period set forth in this Agreement, in a business which is in competition with the business of the Company, in all of the geographical areas where the Company has conducted or carried on business prior to the closing of the Transaction pursuant to the terms set forth herein.

     

    E. This Agreement is a material inducement to Buyer to enter into the Transaction, and Shareholder is agreeable to entering into this Agreement with Buyer, on the terms set forth herein, in order to protect Buyer's legitimate interests as a buyer of the stock and goodwill of the Company.

     

    NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

     

    1.  RESTRICTION ON COMPETITION.  Subject to the terms and conditions hereof, Shareholder covenants and agrees that, for the Restricted Period (as defined below), Shareholder and its Affiliates shall not, either directly or indirectly, through an affiliated or controlled entity or person, on Shareholder's own behalf or as an employee, shareholder, officer, director, partner, consultant, proprietor, principal, agent, creditor, security holder, trustee or otherwise in any other capacity (except by ownership of up to one percent (1%) or less of any class of the securities of any publicly held corporation that engages in or plans to engage in operations that are in competition with the Company, the Surviving Company or Buyer, if such securities are set forth in any national securities exchange or have been registered under section 12 (g) of the Exchange Act), own, manage, operate, finance, control, advise, render services to (as a shareholder, employee, officer, director, consultant, owner, partner, volunteer or in any other capacity) or guarantee the obligations of any person or entity that engages in or plans to engage in a business which is in competition

     

    
    
        	 	
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    with the business of the Company, the Surviving Company or Buyer, which for purposes of this Agreement shall mean the business that is described in Exhibit “A” attached hereto and incorporated herein based on geography or a business that is otherwise competitive with the business of Buyer as conducted on the Effective Date (the "Restricted Business") within any state or county within the United States of America in which Buyer or the Surviving Company conducts the Restricted Business during the Restricted Period (the "Restricted Territory").  The term "Restricted Period" shall mean the period commencing on the Effective Date of this Agreement and continuing for a period of four (4) years (or if a court should determine that 4 years is not reasonable, then the parties agree that the longer period of 3 years, or 2 years, or 1 year, as the court shall deem reasonable, shall apply).

     

    2. NONSOLICITATION.  During the Restricted Period, Shareholder and its Affiliates shall not, whether for Shareholder's own account or for the account of any other individual, partnership, firm, corporation or other business organization, directly or indirectly, separately or in association with others, interfere with, impair, disrupt or damage the business of the Surviving Company, Buyer or any affiliated entities by:

     

    (i) soliciting, recruiting, or encouraging any of the Surviving Company's, Buyer's or their affiliated entities' employees or independent contractors to discontinue their employment or engagement with the Surviving Company, Buyer or any affiliated entity or by causing others to solicit, recruit or encourage any of the Surviving Company's, Buyer's or their affiliated entities' employees or independent contractors to discontinue their employment or engagement with the Surviving Company, Buyer or any affiliated entities.

     

    (ii) soliciting, inducing or attempting to induce any person or entity that was a customer, supplier, licensee, licensor, franchisee, consultant or other business associate of the Restricted Business as conducted by the Company, Surviving Company, Buyer or any affiliated entity on or within one year preceding the Effective Date, or during the Restricted Period, to cease doing business with Surviving Company, Buyer or any affiliated entities.

     

    
        3. NONDISPARAGEMENT. From and after the Effective Date, (i) Shareholder and its Affiliates agree not to disparage the business reputation of the Company, Surviving Company, Buyer or any of their affiliated entities, or the personal or business reputations of any of their respective officers, directors or owners,
        and (ii) Buyer and its Affiliates agree not to disparage the business reputation of Shareholder or any of its affiliated entities, or the personal or business reputations of any of their respective officers, directors or owners.
    

     

    4. SEPARATE COVENANTS.  The covenants contained herein shall be construed as if each covenant is divided into separate and distinct covenants with respect to the Restricted Business, each capacity in which Shareholder is prohibited from competing and each part of the Restricted Territory in which the Company is carrying on the Restricted Business.  Each such covenant shall constitute separate and several covenants distinct from all other such covenants.  In addition, each of the parties hereto recognizes that the territorial restrictions contained in this Agreement are properly required for the adequate protection of the interests purchased by Buyer in the Transaction, and that in the event any covenant or other provision contained herein shall be deemed to be illegal, unenforceable or unreasonable by a court or other tribunal of competent jurisdiction with respect to any part of the Restricted Territory, such covenant or provision shall not be affected with respect to any and all other parts of the Restricted Territory, and each of the parties hereto agrees and submits to the reduction of said territorial restriction to such an area as said court shall deem reasonable.  Similarly, in the event any covenant or other provision contained herein shall be deemed to be illegal, unenforceable or unreasonable by a court or other tribunal of competent jurisdiction with respect to the Restricted Period, each of the parties hereto agrees and submits to the shortest reduction of the Restricted Period to such a time period as said court shall deem reasonable.

     

    
    
        	 	
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    5. REPRESENTATIONS AND REMEDIES.  Each of the parties acknowledge that:  (i) Shareholder is deriving substantial economic benefit from his sale of all of his equity in the Company to the Buyer in connection with the Transaction; (ii) the covenants and the restrictions contained in this Agreement are necessary, fundamental and required for the protection of Buyer's interest in the Company; (iii) such covenants relate to matters which are of a special, unique and extraordinary character that gives each of such covenants a special, unique and extraordinary value; (iv) Shareholder is entering into this Agreement solely in connection with Transaction; and (v) a breach of any of such covenants or any other provision of this Agreement will result in irreparable harm and damage to Buyer that cannot be adequately compensated by a monetary award.  Accordingly, it is expressly agreed that in addition to all other remedies available at law or in equity (including, without limitation, money damages from Shareholder), Buyer shall be entitled to seek the remedy of a temporary restraining order, preliminary injunction or such other form of injunctive or equitable relief as may be used by any court of competent jurisdiction to restrain or enjoin any of the parties hereto from breaching any such covenant or provision or to specifically enforce the provisions hereof.

     

    6. NOTICES.  All notices, requests, demands and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered to Buyer in the fashion and at the addresses as specified in Section 7.2 of the Merger Agreement and to Shareholder at: 400 Kelby Street, 12th Floor Fort Lee, New Jersey 07024 or to such other addresses as any party hereto may specify by notice in writing to the other.

     

    7. GOVERNING LAW.  This Agreement shall be construed and interpreted and its performance shall be governed by the laws of the State of Nevada without regard to conflicts of law principles of any jurisdiction.  As a result of the fact that Buyer is headquartered in Las Vegas, Nevada, each of the parties hereto irrevocably consents to the exclusive jurisdiction and venue of the state or federal courts in and around Las Vegas, Nevada in connection with any matter based upon or arising out of this Agreement or the matters contemplated herein, agrees that process may be served upon them in any manner authorized by the laws of the State of Nevada for such persons and waives and covenants not to assert or plead any objection which they might otherwise have to such jurisdiction, venue and such process.

     

    8. SUCCESSORS AND ASSIGNS.  This Agreement is the valid and legally binding obligation of the parties hereto, enforceable against each party in accordance with its terms, and shall inure to the benefit of such parties and their respective successors and assigns.

     

    9.  COUNTERPARTS.  This Agreement may be executed in any number of counterparts and any party hereto may execute any such counterpart, each of which when executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument.  This Agreement shall become binding when one or more counterparts taken together shall have been executed and delivered by the parties by facsimile transmission or otherwise.

     

    10. ENTIRE AGREEMENT.  This Agreement is entered into concurrently with the Merger Agreement, and together with the provisions therein on the same subject, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior written and oral agreements and understandings between the parties with respect to the subject matter of this Agreement.  This Agreement may not be amended except by a written agreement executed by all parties.

     

    11. WAIVER.  The rights and remedies of the parties to this Agreement are cumulative and not alternative.  Neither the failure or any delay by any party in exercising any right, power or privilege under this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or

     

    
    
        	 	
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    privilege or the exercise of any other right, power or privilege.  To the maximum extent permitted by applicable law:  (i) no claim or right arising out of this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other party; (ii) no waiver that may be given by a party will be applicable except in the specific instance for which it is given; and (iii) no notice to or demand on one party will be deemed to be a waiver of any obligation of such party or of the right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement.

     

    12. INDEPENDENCE OF OBLIGATIONS.  The covenants and obligations of Shareholder set forth in this Agreement shall be construed as independent of any other agreement or arrangement between Shareholder, on the one hand, and Buyer, on the other hand, and the existence of any claim or cause of action by Shareholder against Buyer shall not constitute a defense to the enforcement of such covenants or obligations against Shareholder.

     

    13. ADVICE OF COUNSEL.  Each party hereto acknowledges that it has either been represented by independent legal counsel or that it has waived its right to obtain advice of legal counsel in connection with the transactions contemplated by this Agreement.

     

     

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    IN WITNESS WHEREOF, the parties have duly executed this Non-Competition and Non-Solicitation Agreement as of the date first written above.

     

     

    	 	
                CLEANSPARK, INC.
            
	 	 
	 	
                By:
            	/s/ Zachary Bradford
	 	 	 
	 	
                Name:
            	Zachary Bradford
	 	 	 
	 	
                Title:
            	President
	 	 
	 	 
	 	
                SHAREHOLDER
            
	 	 
	 	
                By:
            	/s/ Nathan Mazurek
	 	 	 
	 	
                Name:
            	Nathan Mazurek

     

    
    
        	 	
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    Exhibit A

    The design, manufacture, distribution and service of paralleling switchgear, automatic transfer switches, and related products. 

    
    	 	 6

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