Document:

INDEMNITY AGREEMENT

 

THIS
INDEMNITY AGREEMENT (this “Agreement”) is executed on the 22nd day of January 2019, by PIONEER CRITICAL POWER
INC., a Delaware corporation (“Pioneer Critical”), and PIONEER POWER SOLUTIONS, INC., a Delaware corporation, (“Indemnitor”),
to and in favor of CLEANSPARK, INC., a Nevada corporation (“Indemnitee’).

 

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 Indemnitee, CleanSpark Acquisition, Inc. (the "Merger Sub"), and
Pioneer Critical, pursuant to which Indemnitee will acquire all of the capital stock of Pioneer Critical (the "Transaction").
As a result of the Merger Agreement, the Merger Sub shall be merged with and into Pioneer Critical, and the resulting entity shall
be referred to as the "Surviving Company."

 

B.      
In accordance with the terms of the Merger Agreement and in order to induce Indemnitee to consummate the transactions contemplated
thereby, Indemnitor has agreed to assume those liabilities and obligations related to the claims made by Myers Power Products,
Inc. in the case titled Myers Power Products, Inc. v. Pioneer Power Solutions, Inc., Pioneer Custom Electrical Products, Corp.,
et al., Los Angeles County Superior Court Case No. BC606546 (“Myers Power Case”) as they may relate to Pioneer
Critical or Indemnitee post-closing of the Merger Agreement.

     

NOW, THEREFORE, in consideration of the foregoing
and for other good and valuable consideration, the receipt of which is hereby acknowledged, Indemnitor and Indemnitee hereby agree
us follows:

 

1.      
Assumption. Indemnitor hereby assumes, from and after the date hereof, all the liabilities and obligations of the Surviving
Company under the Myers Power Case as they may relate to the Surviving Company or to Indemnitee post-closing of the Merger Agreement.

 

2.
      Indemnity. Indemnitor hereby agrees, from the closing of the Merger Agreement, to indemnify,
save, defend (at Indemnitor’s sole cost and expense) and hold harmless Indemnitee and the Surviving Company and their respective
officers, directors, agents, members and employees, and the heirs, successors and assigns of each of the foregoing (all of such
persons or entities being collectively referred to herein as “Indemnified Persons” and each such reference shall refer
jointly and severally to each such person), from and against the full amount of any and all “Losses” incurred by any
Indemnified Person by reason of claims made by Myers Power Products, Inc. as presented or substantially similar to that presented
in the Myers Power Case that are brought against the Surviving Company or Indemnitee post-closing of the Merger Agreement. As used
herein, “Losses” shall mean any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits,
judgments, costs, expenses or disbursements (including, but not limited to, all reasonable attorneys’ fees and all other
reasonable professional or consultants’ expenses incurred in investigating, preparing for, serving as a witness in or defending
against any action or proceeding actually commenced against any Indemnified Person), whether or not caused by the negligence of
any of the Indemnified Persons (however, Losses shall not include any liabilities, obligations, losses, damages, penalties, claims,
actions, suits, judgments, costs, expenses and disbursements which are caused by an Indemnified Person’s gross negligence
or willful misconduct).

 

3.
      Payments. Within a reasonable time after any Losses are incurred, the Indemnified Person
shall give notice to Indemnitor together with all reasonable documentation supporting the claim for indemnity; provided, however,
that failure by an Indemnified Person to give such notice shall not relieve Indemnitor from any liability, duty or obligation hereunder
in the absence of material prejudice to Indemnitor, but Indemnitor
shall not be obligated to pay for such Losses until Indemnitor receives notice as required above.

 

    	 		 

    	 

    

 

4.
      Claims. If an indemnification claim is made hereunder, notice of such claim shall be made
to the Indemnitor, accompanied by a copy of any papers theretofore served on the Indemnitor in connection with such claim. Upon
receipt of notice of a claim from an Indemnified Person, the Indemnitor may assume the defense and control of such claim but shall
allow the Indemnified Person a reasonable opportunity to participate in the defense thereof with its own counsel and at its own
expense. The Indemnitor shall select counsel, contractors and consultants of recognized standing and competence; shall take all
steps necessary in the defense or settlement thereof; and shall at all times diligently and promptly pursue the resolution thereof.
In conducting the defense thereof, the Indemnitor shall at all times act as if all damages relating to such claim were for its
own account and shall act in good faith and with reasonable prudence to minimize damages therefrom. The Indemnified Person shall,
and shall cause each of its affiliates, directors, officers, employees, and agents to, cooperate reasonably with the Indemnitor
in the defense of any claim defended by the Indemnitor.

 

5.
      Invalidity. If any provisions of this Agreement shall be held invalid, illegal or unenforceable,
such provisions shall he severable from the rest of this Agreement and the validity, legality, or enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

6.
      Attorneys’ Fees. In any action to enforce or interpret this Agreement, the prevailing
party shall be entitled to receive from the losing party its reasonable attorneys’ fees and costs incurred in connection
therewith.

 

        7.
      Term of Agreement. The term of this Agreement shall expire in five (5) years from the date
of this Agreement.

 

8.
      Notice. 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 Pioneer Critical
or Indemnitee in the fashion and at the addresses as specified in Section 6.2 of the Merger Agreement and to Indemnitor 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.     

 

9.
      Captions, Gender, and Number. Any section or paragraph, title or caption contained in this
Agreement is for convenience only and shall not be deemed a part of this Agreement. As used in this Agreement, the masculine, feminine
or neuter gender, and the singular or plural number, shall each he deemed to include the others whenever the context so allows.

    

10.
      Indemnified Persons’ Rights. The parties hereto expressly acknowledge that this Agreement
is made expressly for the benefit of the Indemnified Persons.

 

11.
      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.

 

12.
      Failure or Indulgence Not Waiver. No failure or delay on the part of an Indemnified Person
in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any power, right or privilege preclude any other or further exercise of any such power, right or privilege. All powers, rights
and privileges hereunder arc cumulative to, and not exclusive of, any powers, tights or privileges otherwise available.

 

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13.
      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 Indemnitee 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.

 

 14.
      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.

 

[Remainder of
Page Intentionally Left Blank]

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

 

INDEMNITEE: CLEANSPARK, INC.

	By: 	/s/ Zachary Bradford	 
	 	Name: Zachary Bradford	 
	 	Title: President	 

INDEMNITOR: PIONEER POWER
SOLUTIONS, INC.

 

	By: 	/s/ Nathan Mazurek	 
	 	Name: Nathan Mazurek	 
	 	Title: Chief Executive Officer	 

 

 

PIONEER CRITICAL POWER, INC.

 

	By: 	/s/ Nathan Mazurek	 
	 	Name: Nathan Mazurek	 
	 	Title: Chief Executive Officer	 

 

    	 	4CONTRACT 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):

    	 	3	 

    	 

    

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.

 

[Remainder of Page Intentionally Blank]

 

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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

 

    	 	6	 

    	 

    

 

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
	 	 	 	 	 	 

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