SEC Contract Filing

Filing Date: 2019-01-28

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>ex10-3.htm
<DESCRIPTION>NON-COMPETITION AND NON-SOLICITATION AGREEMENT
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<P STYLE="text-align: left"><A HREF="ppsi-8k_012219.htm"><FONT STYLE="font-size: 10pt">Pioneer Power Solutions Inc. 8-K</FONT></A><FONT STYLE="font-size: 10pt"><B>&nbsp;&nbsp;</B></FONT></P>

<P STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>Exhibit 10.3</B></FONT></p>
 <p style="color: #212529; margin: 0px; text-align: center; font: 11pt/normal Times New Roman, Times, Serif;"><b>&nbsp;</b></p>
 <p style="color: #212529; margin: 0px; text-align: center; font: 11pt/normal Times New Roman, Times, Serif;"><b>NON-COMPETITION AND NON-SOLICITATION AGREEMENT</b></p>
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 <p style="color: #212529; margin: 0px; text-align: justify; font: 11pt/normal Times New Roman, Times, Serif;">This Non-Competition and Non-Solicitation Agreement (this "<u>Agreement</u>") is entered into as of January 22, 2019 (the "<u>Effective Date</u>"), by and between CleanSpark,&nbsp;Inc., a Nevada corporation ("<u>Buyer</u>"), and Pioneer Power Solutions Inc., a Delaware corporation ("<u>Shareholder</u>").</p>
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 <p style="color: #212529; margin: 0px; text-align: center; font: 11pt/normal Times New Roman, Times, Serif;">RECITALS</p>
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 <p style="color: #212529; margin: 0px; text-align: justify; text-indent: 0.5in; font: 11pt/normal Times New Roman, Times, Serif;">A.&nbsp;&nbsp;This Agreement is being entered into pursuant to and as a condition of that certain Agreement and Plan of Merger (the "<u>Merger Agreement</u>"), dated the date hereof, by and among Buyer, CleanSpark, Acquisition Inc., a Delaware corporation (the "<u>Merger Sub</u>"), and Pioneer Critical Power, Inc., a Delaware corporation (the "<u>Company</u>"), pursuant to which Buyer will acquire all of the outstanding capital stock held by Shareholder of the Company (the "<u>Transaction</u>").&nbsp; 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 "<u>Surviving Company</u>."</p>
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 <p style="color: #212529; margin: 0px; text-indent: 0.5in; font: 11pt/normal Times New Roman, Times, Serif;">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&nbsp;1.3 of the Merger Agreement.</p>
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 <p style="color: #212529; margin: 0px; text-align: justify; text-indent: 0.5in; font: 11pt/normal Times New Roman, Times, Serif;">C.&nbsp;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.</p>
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 <p style="color: #212529; margin: 0px; text-align: justify; text-indent: 0.5in; font: 11pt/normal Times New Roman, Times, Serif;">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.&nbsp; 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.</p>
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 <p style="color: #212529; margin: 0px; text-align: justify; text-indent: 0.5in; font: 11pt/normal Times New Roman, Times, Serif;">E.&nbsp;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.</p>
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 <p style="color: #212529; margin: 0px; text-align: justify; text-indent: 0.5in; font: 11pt/normal Times New Roman, Times, Serif;">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:</p>
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