Document:

ex_315352.htm

Exhibit 10.1

 

SETTLEMENT AND RELEASE AGREEMENT

 

This Settlement and Release Agreement (“Agreement”) is entered into between, by and among (a) Martin B. Bloch (“Bloch”); (b) Tatiana Bloch, Anna Sophia Bloch, a minor, by her guardian Martin B. Bloch, Anna Kochurova, Valery Kacharau, Jerry Bloch, Helen Bloch, Marlon Bishop, Chloe Bishop, and Megan Wylie (the nine preceding individuals referred to collectively as the “Bloch-Related Parties”); (c) Frequency Electronics, Inc. (“FEI”); and (d) the Compensation Committee of the Board of Directors of FEI, in its capacity as administrator of the deferred compensation plan agreements between Martin B. Bloch and FEI (the “Compensation Committee”), the Deferred Compensation Plan, dated March 27, 1980, as amended (the “1980 Plan”), the Deferred Compensation Plan, dated March 7, 2008, as amended and restated (the “2008 Plan”), Dr. Stanton D. Sloane, Richard Schwartz, Gen. Lance W. Lord, USAF (ret.), Jonathan Brolin, and Russell M. Sarachek (the eight preceding entities, Plans, and individuals referred to collectively as the “FEI-Related Parties”). Bloch, the Bloch-Related Parties, FEI, and the FEI-Related Parties may be referred to collectively as the “Parties.”

 

RECITALS

 

WHEREAS, Bloch is the founder and former President, Chief Executive Officer, and Chief Scientist of FEI, and the former Executive Chairman of the Board of Directors of FEI;

 

WHEREAS, Bloch was employed by FEI pursuant to an Employment Agreement, dated March 17, 2008, as amended (“Employment Agreement”);

 

WHEREAS, Bloch and FEI were also parties to an Agreement, dated March 27, 1980, as amended, and an Amended and Restated Agreement, dated March 7, 2008, as amended and restated, each relating to deferred compensation (the 1980 Plan Agreement and the 2008 Plan Agreement referred to collectively as the “Deferred Compensation Agreements”);

 

WHEREAS, a dispute has arisen between FEI and Bloch regarding the FEI Board of Directors’ termination of his employment on January 27, 2020, and the related denial of deferred compensation under the Deferred Compensation Agreements (the “Dispute”), which Dispute has given rise to the following legal and arbitral proceedings:

 

	 	
			(a)

				
			a civil action captioned Bloch v. Frequency Electronics, Inc., Index No. 601369/2020 (Sup. Court, Nassau County) (DeStefano, J.) (the “Employment Action”), including FEI’s appeal of a decision dated September 10, 2020 in the Employment Action, bearing Docket No. 2020-07637 (the “Appeal”), pending in Supreme Court, Appellate Division, Second Department;

			

 

	 	
			(b)

				
			a special proceeding captioned Application of Martin B. Bloch for the Appointment of an Arbitrator, Index No. 605380/2020 (Sup. Court, Nassau County) (DeStefano, J.) (“Special Proceeding I”), including FEI’s appeal of a decision dated February 10, 2021 in Special Proceeding I, bearing Docket Nos. 2021-01336 and 2021-01338 (“Special Proceeding I Appeal”), pending in Supreme Court, Appellate Division, Second Department;

			

 

-1-

 

 

	 	
			(c)

				
			a special proceeding captioned Application of Frequency Electronics, Inc. for a Judgment Staying Arbitration and Related Declaratory Relief, Index No. 611405/2020 (Sup. Court, Nassau County) (DeStefano, J.) (“Special Proceeding II”), including FEI’s appeal of a decision dated February 10, 2021 in Special Proceeding II, bearing Docket No. 2021-01333 (“Special Proceeding II Appeal”), pending in Supreme Court, Appellate Division, Second Department; and

			

 

	 	
			(d)

				
			two arbitration proceedings brought pursuant to the Deferred Compensation Agreements, administered by the American Arbitration Association (“AAA”) and consolidated for hearing under AAA Case No. 01-20-0005-4627 (the “Arbitration Proceeding”);

			

 

The Employment Action, the Appeal, Special Proceeding I, Special Proceeding I Appeal, Special Proceeding II, Special Proceeding II Appeal, and the Arbitration Proceeding are referred to, collectively, as the “Legal Proceedings”.

 

WHEREAS, on August 25, 2021, the Parties entered into an Agreement on Material Terms of Settlement, reflecting their binding agreement on the material terms of a settlement of the Dispute and the Legal Proceedings, which, among other things, indicated that the Parties intended to be bound by the terms of the Agreement on Material Terms of Settlement, notwithstanding their intention to enter into a written settlement agreement setting forth such expanded or additional terms as may be agreed upon; and

 

WHEREAS, the Parties now desire to enter into this Agreement to supersede and replace the Agreement on Material Terms of Settlement, and to settle the Dispute and the Legal Proceedings, subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the premises, mutual covenants, and conditions herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree to the following:

 

1.    Recitals. The foregoing recitals are incorporated in and constitute an integral part of this Agreement.

 

2.    Payment. Subject to applicable withholdings and deductions, FEI will pay Bloch the sum of $6,000,000.00, by wire transfer to:

 

Bank Name:         [***]

ABA: [***]

Account [***]

Account Name: [***]

For Further Credit to: [***]

 

-2-

 

 

no later than September 24, 2021, time being of the essence (“Payment”). The Payment is in satisfaction of Bloch’s claims for damages in the Employment Litigation and the Arbitration Proceeding, including without limitation claims for breaching the Employment Agreement, breaching the Deferred Compensation Agreements, age discrimination, and loss of goodwill and reputation.

 

3.    Termination of Agreements. The Parties acknowledge and agree that, upon delivery of the Payment, the Employment Agreement and Deferred Compensation Agreements are terminated and no longer of any force or effect, and Bloch and FEI shall have no further obligations to each other thereunder; provided, however, that nothing in this Agreement affects any confidentiality or non-disclosure provisions contained in those agreements, which obligations shall continue in accordance with the terms set forth in such agreements.

 

4.    Discontinuance of the Legal Proceedings With Prejudice. Bloch, FEI, and the FEI-Related Parties agree that, upon delivery of the Payment, the Legal Proceedings shall be discontinued, with prejudice and without costs to any party. Simultaneous with execution of this Agreement, attorneys for Bloch, FEI, and the FEI-Related Parties will execute Stipulations of Discontinuance, in the forms annexed hereto as Schedule “A”. Counsel for FEI and the FEI-Related Parties will cause such Stipulations to be filed following issuance of the Payment to Bloch.

 

5.    Additional Documentation. Each Party agrees to execute and provide to the other Parties or their counsel any additional or further documentation that may be reasonably necessary to carry out the obligations in, or otherwise to effectuate the intent and purpose of, this Agreement.

 

6.    Definition of Claims. For purposes of this Agreement, “Claim” includes each, every, any, and all claims, rights, fees, controversies, investigations, demands, damages, judgments, executions, actions, suits, causes of action, liabilities, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialities, convenants, contracts, agreements, promises, torts, variances, trespasses, extents, and demands whatsoever, whether known or unknown, whether suspected or unsuspected, and whether based on facts known or unknown, of any kind or nature whatsoever and whether arising at law, pursuant to statute, or in equity, which a releasing Party may have had, may now have, or may anytime in the future claim to have or have had against any released Party, relating to, arising out of, or in connection with any and all facts, acts or omissions from the beginning of time through the Effective Date, EXCEPT for any and all claims arising out of this Agreement.

 

7.    General Release by Bloch of FEI and FEI-Related Parties. In consideration of this Agreement, and other good and valuable consideration, the receipt and adequacy of which is acknowledged, Bloch, on behalf of himself, his spouse, heirs, successors, and assigns, waives, releases, and discharges FEI and the FEI-Related Parties, and each of their current and former subsidiaries, affiliates, directors, officers, employees, attorneys, agents, predecessors, successors and assigns, from and with respect to any and all Claims, including, but not limited to, any and all Claims, known or unknown, arising out of or relating to (1) all matters arising out of or relating to the Legal Proceedings, and (2) Bloch having been employed by or having served as an officer or director or in any other capacity of FEI, EXCEPT for any and all claims arising out of this Agreement.

 

-3-

 

 

Bloch acknowledges that he is aware that he may hereafter discover Claims presently unknown or unsuspected, or facts in addition to or different from those which he now knows or believes to be true, with respect to the matters released herein or any other matters. Nevertheless, it is his express and knowing intention in executing this Release fully, finally and forever to settle and release all such matters, and all Claims relating thereto, known or unknown, which exist, hereafter may be discovered to have existed, or might have existed, EXCEPT for any and all claims arising out of this Agreement.

 

8.    General Release by FEI and FEI-Related Parties of Bloch. In consideration of this Agreement, and other good and valuable consideration, the receipt and adequacy of which is acknowledged, FEI and the FEI-Related Parties waive, release, and discharge Bloch, his spouse, heirs, successors, attorneys, agents, and assigns, from and with respect to any and all Claims, including, but not limited to, any and all Claims, known or unknown, arising out of or relating to (1) all matters arising out of or relating to the Legal Proceedings, and (2) Bloch having been employed by or having served as an officer or director or in any other capacity of FEI, EXCEPT for and any all claims arising out of this Agreement.

 

FEI acknowledges that it is aware that it may hereafter discover Claims presently unknown or unsuspected, or facts in addition to or different from those which it now knows or believes to be true, with respect to the matters released herein or any other matters. Nevertheless, it is FEI’s and the FEI-Related Parties’ express and knowing intention in executing this Release fully, finally and forever to settle and release all such matters, and all Claims relating thereto, know or unknown, which exist, hereafter may be discovered to have existed, or might have existed, EXCEPT for any and all claims arising out of this Agreement.

 

9.    General Release by FEI of Bloch-Related Parties. In consideration of this Agreement and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, FEI waives, releases and discharges each of the Bloch-Related Parties from and with respect to any and all Claims, EXCEPT for any and all claims arising out of this Agreement.

 

FEI acknowledges that it is aware that it may hereafter discover Claims presently unknown or unsuspected, or facts in addition to or different from those which it now knows or believes to be true, with respect to the matters released herein or any other matters. Nevertheless, it is FEI’s express and knowing intention in executing this Release fully, finally and forever to settle and release all such matters, and all Claims relating thereto, know or unknown, which exist, hereafter may be discovered to have existed, or might have existed, EXCEPT for any and all claims arising out of this Agreement.

 

-4-

 

 

10.    General Release by Bloch-Related Parties of FEI. In consideration of this Agreement and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, each of the Bloch-Related Parties, on their own behalf and on behalf of their spouses, heirs, successors and assigns, waives, releases and discharges FEI from and against any and all Claims, EXCEPT for any and all claims arising out this Agreement.

 

The Bloch-Related Parties acknowledge that they are aware that they may hereafter discover Claims presently unknown or unsuspected, or facts in addition to or different from those which they now know or believe to be true, with respect to the matters released herein or any other matters. Nevertheless, it is each of their express and knowing intention in executing this Release fully, finally and forever to settle and release all such matters, and all Claims relating thereto, known or unknown, which exist, hereafter may be discovered to have existed, or might have existed, EXCEPT for any and all claims arising out of this Agreement.

 

11.    Covenant Not to Sue. In addition to the Parties’ General Releases, each Party covenants and agrees that it, he, or she will not sue upon, file or otherwise assert or interpose a released Claim against any other released Party, or maintain or aid in any way, directly or indirectly, any other person or entity to assert any claim or bring any form of legal proceeding against any other released Party, in any judicial, arbitral or other forum; provided, however, this Covenant Not to Sue does not include within its scope any claims arising out of this Agreement, or prohibit any Party from providing truthful information in connection with a government investigation, or truthful testimony in response to a court order, subpoena, or other form of compulsory process.

 

12.    No Admission of Liability. This Agreement reflects a compromise of disputed claims, does not and shall not be deemed to constitute an admission of liability or wrongdoing by any Party, and shall not be admissible in evidence for any purpose except in connection with the enforcement of this Agreement.

 

13.    Non-Disparagement. No Party shall, directly or indirectly, make any oral or written comment or statement to any third party, by way of example only and without limitation, in or through any form of social media, such as, Facebook, Twitter, MySpace, LinkedIn and the like, any company disclosures, or in response to governmental inquiries, which denigrates the integrity, business operations, conduct, reputation, ethical standards, or character of any other Party, or that Party’s officers, directors, executives, employees, attorneys, agents, or consultants; provided, however, that nothing herein shall prohibit any Party from providing truthful information in connection with a government investigation, or truthful testimony in response to a court order, subpoena, or other form of compulsory process.

 

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14.    Injunctive Relief. Each Party expressly acknowledges that, in the event of any other Party’s breach or prospective breach of Paragraph 13 above, or, as specified in Paragraph 3 above, the confidentiality or non-disclosure provisions of the Employment Agreement or Deferred Compensation Agreements that survive termination of those agreements or this Agreement, it may be difficult or impossible to specify or prove actual damages sustained, or to be sustained in the future, and for that reason the Party that is the subject to potential injury due to the breach or prospective breach will be without an adequate legal remedy and entitled to seek and obtain preliminary and permanent injunctive relief without the need to prove irreparable harm or other injury or to post a bond or other form of security.

 

14.    Denial of Employment. Denial of employment of Bloch in the future by FEI or any of its affiliates shall not constitute a violation of any law, statute, ordinance or regulation, and shall not give rise to any claim of any kind.

 

15.    Removal of Legends. Subject to applicable legal requirements, FEI agrees, upon Bloch’s written request, made at the time he seeks to sell or otherwise transfer shares of restricted FEI stock, to expeditiously remove the stock legends on such shares.

 

16.    Representations and Warranties. Each Party represents and warrants that, as applicable to it, him or her: (a) the Party has requisite legal right to execute this Agreement and carry out and perform its obligations; (b) the Party’s execution of this Agreement has been duly authorized by all necessary corporate action; (c) in the case of the Bloch-Related Parties, any person signing this Agreement on behalf of same or in a representative capacity has all requisite authority and right to do so and thereby to bind the Bloch-Related Party; (d) this Agreement constitutes a legal, valid and binding obligation, enforceable against such Party in accordance with the terms hereof; (e) the Party has not assigned or otherwise transferred to any other person or entity any interest in any claims, actions, demands and/or causes of action it has, or may have, or may claim to have in connection with the matters, entities and persons released herein; and (f) the Party has had an adequate opportunity to consult with attorneys and other persons as it may wish prior to entering into this Agreement, is represented by attorneys of their choosing, and is satisfied with such representation.

 

17.    Governing Law, Exclusive Forum, Jurisdiction, and Jury Trial Waiver.

 

	 	
			a.

				
			This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of New York, applicable to contracts entered into and to be performed in New York, including its statute of limitations, but without regard to conflict of laws provisions thereof (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law) or any law or procedural rule, including any borrowing statute, that would result in the application of the law or procedural rules of any other jurisdiction, including but not limited to another jurisdiction’s statute of limitations.

			

 

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			b.

				
			Any dispute arising out of or relating to this Agreement, including any dispute regarding interpretation of its terms, shall be submitted to arbitration before Justice Stephen Crane (ret.) of JAMS, and his decision shall be final and binding upon the Parties. In the event Justice Crane shall be unavailable JAMS shall appoint the arbitrator in accordance with its Comprehensive Arbitration Rules. Judgment upon any award rendered by Justice Crane or successor arbitrator may be entered in any Federal or State Court in New York only.

			

 

	 	
			c.

				
			Any suit or legal proceeding seeking injunctive relief pursuant to Paragraphs 13 and 14 of this Agreement, or confirmation of any award rendered by Justice Crane or any successor arbitrator pursuant to Paragraph 17(b) above, or collection of any judgment, shall be brought in a Federal or State court of competent jurisdiction situated in New York, which court shall be the sole and exclusive forum for such adjudication. WITH RESPECT TO ANY SUCH SUIT OR LEGAL PROCEEDING, EACH PARTY IRREVOCABLY, UNCONDITIONALLY, AND TO THE FULLEST EXTENT PERMITTED BY LAW: CONSENTS AND SUBMITS TO THE COURT’S EXERCISE OF PERSONAL JURISDICTION OVER IT, HIM, OR HER; WAIVES AND AGREES NOT TO ASSERT ANY DEFENSE OR OBJECTION OF LACK OF PERSONAL JURISDICTION, INCONVENIENT FORUM, OR IMPROPER VENUE; AND WAIVES AND AGREES NOT TO ASSERT ANY RIGHT TO TRIAL BY JURY.

			

 

	 	
			d.

				
			In any proceeding between or among FEI, the FEI-Related Parties, and Bloch, to enforce this Agreement or collect any judgment, the prevailing Party(ies) shall recover its or his reasonable legal fees and costs from the non-prevailing Party(ies), including but not limited to fees and related costs of the arbitrator acting pursuant to Paragraph 17(b) above.

			

 

18.    Severability. If any provision of this Agreement is declared or determined to be invalid and unenforceable by the arbitrator appointed under Paragraph 17(b) above, or by a court of competent authority, none of the remaining provisions shall be affected thereby and all such remaining provisions shall be valid and fully enforceable.

 

19.   Interpretation of Agreement. This Agreement is the result of arm’s-length negotiations and the mutual agreement of the Parties. In case of any ambiguity, no Party shall be deemed to have drafted the Agreement so as to construe the ambiguity against it. The doctrine of contra proferentem shall not apply in any arbitration under Paragraph 17(b) above, or in any judicial proceeding arising out of or related to this Agreement.

 

20.    Entire Agreement. This Agreement constitutes the entire agreement of the Parties regarding its subject matter, superseding all prior agreements and understandings between them, including the Agreement on Material Terms of Settlement, dated August 25, 2021, which is superseded and replaced in its entirety by this Agreement. The Parties acknowledge that, except as expressly set forth herein, no representations, promises or inducements of any kind (oral or written) have been offered or made to induce execution of this Agreement, and expressly disclaim reliance upon any such representation. This Agreement may not be amended, changed, altered or modified, except by written instrument signed by the Parties.

 

-7-

 

 

21.    Acknowledgements. By signing this Agreement, Bloch acknowledges, understands, and expressly agrees that he:

 

a.         has been, and hereby is advised in writing, to discuss this Agreement with an attorney of his choice before signing it;

 

b.         has carefully read and considered this Agreement in its entirety and understands the meaning and significance of all of its terms, including but not limited to the release of unknown Claims that he may not know or suspect exist, even though knowledge of such unknown Claims or the facts upon which they are based might materially have affected his decision to enter into this Agreement;

 

c.         is knowingly and voluntarily waiving and releasing all Claims under the Age Discrimination in Employment Act of 1967, as amended;

 

d.         has not assigned, transferred, conveyed, or purported to convey (nor shall in the future assign, transfer, or convey) any of the Claims released under this Agreement, and shall not make any agreement, understanding, or commitment which would or could prevent or interfere in any manner with her performance of the obligations hereunder;

 

e.         has been given a reasonable time to consider this Agreement before signing it;

 

f.         is competent to execute this Agreement, has agreed to sign this Agreement knowingly and voluntarily, and has not been subjected to undue influence or duress of any kind; and

 

g.         knowingly and voluntarily intends to be legally bound by the Agreement.

 

22.    Effective Date. Once fully executed by the Parties, this Agreement shall be deemed effective as of August 25, 2021 (“Effective Date”).

 

23.    Counterparts. The Parties may execute this Agreement in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument, and each executed counterpart may be exchanged by electronic or facsimile transmission.

 

 

-8-

 

 

IN WITNESS WHEREOF, the Parties have executed and delivered, or caused their duly authorized representative to execute and deliver this Agreement as of the dates set forth below:

 

	
			Dated: 9/19/21

				
			/s/ Martin B. Bloch

				 
	 	
			MARTIN B. BLOCH

				 
	 	 	 
	 	 	 
	
			Dated: 9/19/21

				
			/s/ Tatiana Bloch

				 
	 	
			TATIANA BLOCH

				 
	 	 	 
	 	 	 
	
			Dated: 9/19/21

				
			/s/ Martin B. Bloch

				 
	 	
			ANNA SOPHIA BLOCH, A Minor,

				 
	 	
			By Martin B. Bloch, Her Legal Guardian

				 
	 	 	 
	 	 	 
	
			Dated: 9/19/21

				
			/s/ Anna Kochurova

				 
	 	
			ANNA KOCHUROVA

				 
	 	 	 
	 	 	 
	
			Dated: 9/19/21

				
			/s/ Valery Kachurau

				 
	 	
			VALERY KACHURAU

				 
	 	 	 
	 	 	 
	
			Dated: 9/20/21

				
			/s/ Jerry Bloch

				 
	 	
			JERRY BLOCH

				 
	 	 	 
	 	 	 
	
			Dated: 9/19/21

				
			/s/ Helen Bloch

				 
	 	
			HELEN BLOCH

				 
	 	 	 
	 	 	 
	
			Dated: 9/20/21  

				
			/s/ Marlon Bishop

				 
	 	
			MARLON BISHOP

				 
	 	 	 
	 	 	 
	
			Dated: 9/20/21  

				
			/s/ Chloe Bishop

				 
	 	
			CHLOE BISHOP

				 
	 	 	 
	 	 	 
	
			Dated: 9/19/21

				
			/s/ Megan Wylie

				 
	 	
			MEGAN WYLIE

				 

 

-9-

 

 

	
			Dated: 9/17/21

				
			FREQUENCY ELECTRONICS, INC.

				 
	 	 	 
	 	 	 
	 	
			By: /s/ Dr. Stanton D. Sloane

				 
	 	
			Dr. Stanton D. Sloane

				 
	 	
			President, Chief Executive Officer

				 
	 	 	 
	 	 	 
	
			Dated: 9/20/21

				
			COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF FEI, in its capacity as administrator and also on behalf of the DEFERRED COMPENSATION PLAN AGREEMENT, dated March 27, 1980, as amended, and the DEFERRED COMPENSATION PLAN AGREEMENT, dated March 8, 2008, as amended and restated

				 
	 	 	 
	 	 	 
	 	
			By: /s/ Richard Schwartz

				 
	 	
			Richard Schwartz

				 
	 	
			Chair, Compensation Committee

				 
	 	 	 
	 	 	 
	
			Dated: 9/17/21

				
			/s/ Jonathan Brolin

				 
	 	
			JONATHAN BROLIN

				 
	 	 	 
	 	 	 
	
			Dated: 9/17/21 

				
			/s/ Gen. Lance W. Lord

				 
	 	
			GEN. LANCE W. LORD, USAF (ret.)

				 
	 	 	 
	 	 	 
	
			Dated: 9/21/21

				
			/s/ Russell M. Sarachek

				 
	 	
			M. SARACHEK

				 
	 	 	 
	 	 	 
	
			Dated: 9/20 21

				
			/s/ Richard Schwartz

				 
	 	
			RICHARD SCHWARTZ

				 
	 	 	 
	 	 	 
	
			Dated: 9/19/21

				
			/s/ Dr. Stanton D. Sloane

				 
	 	
			DR. STANTON SLOANE

				 

 

  

-10-CERTAIN INFORMATION, IDENTIFIED BY [*****], HAS
BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL, AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY
DISCLOSED

 

Account Manager: [*****]

Account Number: [*****]

 

CONTRACT
FOR ELECTRIC SERVICE

THIS
CONTRACT for electric service is entered into this 24th day of September,
2021, (“Effective Date”) between Georgia Power Company ("Company") and CLEANBLOK INC. ("Customer").

 

IN
CONSIDERATION of the mutual agreements hereinafter contained, IT IS AGREED:

 

1.         
Scope. Company will supply electric service to Customer, and Customer will purchase, receive and pay Company for
such service in accordance with this Contract.

 

2.         
Rules, Regulations and Rates. Georgia state law and the rules, regulations and applicable rate schedules of Company
as may be filed with and regulated by the Georgia Public Service Commission govern this service
and are incorporated herein by reference. Such laws, rules, regulations and rate schedules are subject to change during the term
of this contract as provided by law. Copies of current rules, regulations and applicable rate schedules are available from Company upon
request and may be attached to this Contract.

 

3.         
Term. The term of this Contract shall be [*****]
from the commencement of electric service under this Contract. The Contract shall continue in effect thereafter until terminated by either
party providing written notice to the other in accordance with the rules, regulations and applicable rate schedules.

 

		4.	Service. The characteristics of the service to be furnished
under this Contract are as follows:

 

		a.	Premise location: 5295 BROOK HOLLOW PKWY NORCROSS, GA 30071

		b.	Frequency: Approximately
[*****]

		c.	Voltage and Phase: [*****]

		d.	Delivery Point: N/A

		e.	Rate Schedule(s):RTP-HA/PLL

	 	 	(for RTP Attach Terms and Conditions and CBL Agreement)

		f.	Service
                                            level: ☐  Transmission
                                            ☒  Primary☐
                                             Secondary ☐
                                             TOU-FCR

		g.	Rate Rider(s): OP

		h.	Commencement of electric service not later than: 9/24/2021

		i.	Contract Capacity: N/A

		j.	Minimum billing demand: [*****]

 

5.         
Additional Provisions. Additional terms and conditions relating to the provision of service to the premises identified
in paragraph 4 herein may be attached hereto. Such attached terms and conditions shall be controlling over any conflicting terms set forth
herein. The following such terms and conditions are attached hereto and incorporated by reference:

 

	 	☒	Build-Up Terms and Conditions (In excess of a two month build-up period. The term designated on this contract shall be extended by the build-up period.)
	 	☐	Demand Plus Energy Credit Terms and Conditions 
	 	☒	Meter-Totalization Terms and Conditions 
	 	☐	Modernization Rider Terms and Conditions
	 	☒	CBL Agreement and Real Time Pricing Terms and Conditions (RTP-DA and RTP-HA)

 

    	 		 

    	CERTAIN INFORMATION, IDENTIFIED BY [*****], HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL, AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

    

 

6.         
Payment. During the term of this Contract, Customer will pay monthly charges calculated in accordance with the applicable
rules, regulations and rate schedules.

 

7.         
Equipment. Customer, at its expense, shall maintain and operate its equipment so that it does not cause unacceptable
voltage fluctuations, unacceptable harmonic current usage, overload, or other disturbances on Company's electrical and communications
systems, or affect the safe, economical and reliable operation of Company's electric system. Customer, at its expense, shall immediately
correct any such unacceptable use of electric power, including the provision of suitable
apparatus to prevent or cure such effects where necessary. The specifications of unacceptable voltage fluctuations and unacceptable harmonic
current usage are outlined in the current copy of the Southern Company Power Quality Policy, which is available upon request.

 

8.         
Limitation of Liability. Company does not guarantee that service will be free from, and Company shall not be liable
for, interruptions, surges, voltage fluctuations or disturbances. Company shall have no liability for any loss or damage from any loss
of service, or delay in providing service.

 

9.         
Assignment of Contract. Customer may not assign this Contract without written consent of Company. Such consent shall
not be unreasonably withheld.

 

10.      
Remedies. In the event of default by either party, the non-defaulting party may pursue any and all judicial and administrative
remedies and relief available.

 

11.      
Non-waiver. The parties agree that this Contract does not preclude
the Company from collecting any additional costs as directed or authorized by a legislative body, administrative body, or court
having jurisdiction over such issues.

 

12.      
Miscellaneous. A waiver of one or more defaults by either party shall
not be deemed a waiver of any other or subsequent default by such party. This Contract, upon becoming effective, shall cancel and supersede
any previously existing agreement covering supply by Company to Customer of electric energy to the premise identified in this contract.
This document, those documents incorporated by reference and any attachments constitute the entire agreement between the parties. No modification
of this Contract, except as provided in paragraph 2 above, shall be binding unless it is in writing
and accepted by Customer and Company. This Contract shall be governed by the laws
of the State of Georgia.

 

13.  
Prior Agreements. This Contract for Electric Service, upon becoming effective, shall cancel and supersede any previously
existing Contracts for Electric Service or other agreement covering service to this premise.

 

IN WITNESS WHEREOF, the parties hereto
have caused this Contract to be executed by their duly authorized representatives, as of the Effective Date hereof.

CLEANBLOK INC.GEORGIA
POWER COMPANY

 

Signature: /s/ Zachary Bradford

Signature: /s/ Kyle Leach

 

Print Name: Zachary
Bradford

Title: VP Pricing; Planning

 

Title: CEO

 

Date: 9/29/2021

    	 	2	 

    	CERTAIN INFORMATION, IDENTIFIED BY [*****], HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL, AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

    

 

INITIAL CUSTOMER BASELINE
LOAD (CBL) AGREEMENT

For New Accounts RTP-HA

 

The customer, CLEANBLOK INC.,
Account Number: [*****],
has agreed that the following information will constitute the basis for their CBL:

CBL Rate: [*****]
Rider: [*****]
Level [*****]

CBL Type: [*****]
Minimum Billing Demand: [*****]
Contract Capacity: [*****]

 

	Initial Month: Initial Year:	Est. Final Total Peak kW**	Est. Final Total kWh**	CBL Peak kW**	CBL kWh**	CBL Billing Demand** (On- Peak/Econ for TOU)
	January	[*****]	[*****]	[*****]	[*****]	[*****]
	February	[*****]	[*****]	[*****]	[*****]	[*****]
	March	[*****]	[*****]	[*****]	[*****]	[*****]
	April	[*****]	[*****]	[*****]	[*****]	[*****]
	May	[*****]	[*****]	[*****]	[*****]	[*****]
	June	[*****]	[*****]	[*****]	[*****]	[*****]
	July	[*****]	[*****]	[*****]	[*****]	[*****]
	August	[*****]	[*****]	[*****]	[*****]	[*****]
	September	[*****]	[*****]	[*****]	[*****]	[*****]
	October	[*****]	[*****]	[*****]	[*****]	[*****]
	November	[*****]	[*****]	[*****]	[*****]	[*****]
	December	[*****]	[*****]	[*****]	[*****]	[*****]
	Peak/Total	[*****]	[*****]	[*****]	[*****]	[*****]

 

* 2 Point CBL Not Available to School or TOU Type Rates

**Data is based on Calendar Month
1⁄2 hourly data and may differ from billing data due to the type CBL selected by the customer, the billing cycle and from mapping
the CBL into future years for billing.

CBL Information:

The Customer shall
pay an Administrative Charge of $ [*****]
per

month. Final CBL is [*****]%
of the total loadshape and is based upon:

☒
 Actual/Estimated Interval/Billing Data from calendar year: 2012 which was developed from:

☒
 Template                       ☐ Interval
Data

☐ Footprint
(Load shape based on a previously demonstrated CBL level for the same customer using similar facilities in terms of basic design and
energy requirements and any equipment used to achieve demonstration level).

☒ Demonstration
(required if not a Footprint or if under [*****]%
of Final Total Commercial Loadshape or [*****]%
of Final Total Industrial Loadshape).

Demonstration Level: [*****]
(Based on highest summer demand in CBL)

Special Term/Conditions (see also Real Time Pricing Terms
and Conditions):

[*****]

 

Georgia Power Company Client
Manager: [*****]

 

 

	
    Customer
    Location: 5295 BROOK HOLLOW PKWY NORCROSS, GA 30071

     

    Signature: /s/ Zachary Bradford

	
     

    Title: CEO

	
     

    Date: 9/29/21

      

    	 	3	 

    	CERTAIN INFORMATION, IDENTIFIED BY [*****], HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL, AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

    

 

REAL
TIME PRICING TERMS AND CONDITIONS

 

1.  
Customer Baseline Load. The Company and the Customer have mutually agreed to an initial Customer Baseline Load ("CBL")
for the stated premise location – see Initial Customer Baseline Load (CBL) Agreement. The Customer agrees to provide, on an annual
basis, pertinent operating information (including holidays and plant shut downs) as necessary or desirable to formulate subsequent CBLs
for such premises. CBL revisions based on load removal will be allowed after a customer is billed on RTP for one year.

 

2.  
Corrective Load Modifications. Georgia Power reserves the right to make minor load modifications for the purpose
of establishing the appropriate load shape for the customer.

 

3.  
Confidentiality of Information. The Customer will use its best efforts to protect hourly price as proprietary information,
and neither the Customer nor its employees, agents or independent contractors will copy, transfer in any way, communicate, disclose, or
disseminate proprietary price information contained therein to any third party.

 

4.  
Customer Demonstration. Customer may be required to demonstrate the ability to respond to high RTP prices by curtailing
load down to the “Approximate CBL Demonstration kW level” for two specified hours. Customer will be given four attempts to
achieve such demonstration.

 

5.  
Effective Date. Georgia Power will exercise its best efforts, but cannot guarantee, that billing under the RTP tariff
will begin on the desired month specified by the Customer. The provisions of these Real Time Pricing Terms and Conditions shall become
effective from the first billing date under the RTP tariff. These Real Time Pricing Terms and Conditions shall terminate automatically
upon the withdrawal, expiration or other termination of the RTP tariff.

 

6.  
Rate Terms. After the Customer has taken RTP service for a period of one year, the Customer may request and obtain
a change in the rate provided that such premise location will continue taking electric service from Company for a total of five years
from the initial billing date under this Contract. The Customer’s contracted CBL level is supported by the revenues generated from
a combination of embedded load on the specific standard bill tariff previously identified and the remaining load at the specific RTP tariff.
If the Customer requests a change in the base tariff associated with the standard bill portion that collects lower embedded revenues,
or a change to the RTP tariff, a new profitability analysis will be required. Based on the results of the new analysis, a contribution
may be required by the Customer or the CBL level may be increased. Contracts will renew annually after expiration of the initial rate
term. The Company may remove the Customer's premises from the RTP tariff if the Customer ceases to qualify for the rate or in the event
of an uncured material breach of these Real Time Pricing Terms and Conditions.

 

7.   
Rules, Regulations and Rates. Georgia state law and the rules, regulations and applicable rate schedules of Company
as may be filed with and regulated by the Georgia Public Service Commission govern this service
and are incorporated herein by reference. Such laws, rules, regulations and applicable rate schedules are subject to change during
the term of this Contract as provided by law. Copies of current rules, regulations and applicable
rate schedules are available from Company upon request and may be attached to this Contract.

 

8.      
Assignment of Contract. Customer may not assign this Contract without the written consent of Company. Such consent
shall not be unreasonably withheld.

 

Customer Initials: /s/ ZB

 

Note:“Minimum
Billing Demand” is the lowest kW from CBL Billing Demand column “Contract
Capacity” is the transformer sizing for the service point

 

    	 	4	 

    	CERTAIN INFORMATION, IDENTIFIED BY [*****], HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL, AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

    

 

INITIAL CUSTOMER BASELINE
LOAD (CBL) AGREEMENT

For New Accounts RTP-DA

 

 

CLEANBLOK INC, New Account

5295 BROOK HOLLOW PKWY NORCROSS,
GA 30071

 

 

CBL Information for Year 1

CBL will be [*****]

 

	Initial Month: Initial Year:	Est. Final Total Peak kW**	Est. Final Total kWh**	CBL Peak kW**	CBL kWh**	CBL Billing Demand** (On- Peak/Econ for TOU)
	January		[*****]	[*****]	[*****]	[*****]
	February	[*****]	[*****]	[*****]	[*****]	[*****]
	March	[*****]	[*****]	[*****]	[*****]	[*****]
	April	[*****]	[*****]	[*****]	[*****]	[*****]
	May	[*****]	[*****]	[*****]	[*****]	[*****]
	June	[*****]	[*****]	[*****]	[*****]	[*****]
	July	[*****]	[*****]	[*****]	[*****]	[*****]
	August	[*****]	[*****]	[*****]	[*****]	[*****]
	September	[*****]	[*****]	[*****]	[*****]	[*****]
	October	[*****]	[*****]	[*****]	[*****]	[*****]
	November	[*****]	[*****]	[*****]	[*****]	[*****]
	December	[*****]	[*****]	[*****]	[*****]	[*****]
	Peak/Total	[*****]	[*****]	[*****]	[*****]	 

 

    	 	5	 

    	CERTAIN INFORMATION, IDENTIFIED BY [*****], HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL, AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

    

 

 

Account Manager:
[*****]

Account Number: [*****]

Customer Name: CleanBlok Inc.

 

METER TOTALIZATION TERMS AND CONDITIONS

1.  
The Premises identified in the electric service contract(s) include all the account addresses listed
in paragraph five of these Meter Totalization Terms and Conditions. Electric service at such account addresses shall be combined such
that all electric usage is recorded through a single meter registration. All buildings, structures, or facilities, and the land on which
they stand, are owned by Customer and are located on the same or contiguous tracts of land.

 

2.   
The meter totalization described in these Meter Totalization Terms and Conditions will be accomplished
through the following metering arrangement to be installed by the Company: Remote Totalization.

 

		3.	Customer agrees to pay for the following:

		a.	the costs of modifying the existing meter(s) or installing new meter(s)
(as appropriate),

		b.	the costs of relocating distribution facilities necessary
to accommodate the single-metering arrangement,

		c.	the cost of any additional facilities,

		d.	the unrecovered cost of serving the existing facilities
under the current metering arrangement.

		e.	the remote totalization translator charges, pursuant
to the Company's Excess Facilities Charge Agreement. Any additional telephone lines necessary for the meter totalization arrangement shall
be provided by Customer unless Customer requests that such lines be provided by Company. In the event Company provides additional phone
lines for the meter totalization arrangement, Customer shall pay Company the costs of such additional lines pursuant to the Company's
Excess Facilities Charge Agreement.

 

The total amount of these items above will be paid: (CHECK
METHOD(S) OF PAYMENT.)

 

	 	☒	According to the terms of Company’s Excess Facilities Charge Agreement.
	 	☐	Customer
agrees to raise CBL to meet financial requirements or to compensate the Company for costs associated with meter totalization.

 

 

4.  
In the event that all or part of the Customer’s facilities located at any of the account addresses listed in paragraph five are
sold, the Customer agrees to notify the Company and to pay all costs associated with separating the Customer’s facilities sold
from this meter-totalized arrangement. Should Customer sell all of its facilities to a single new owner and new owner agrees to the meter
totalization arrangement, the meter totalization arrangement shall continue for the new owner.

 

		5.	Account
                                            Addresses (or descriptive identifier) to be totalized:

		(a)	5295
                                            Brook Hollow Pkwy - Primary Meter 1
	 	 	 
	 	(b) 	5295
                                            Brook Hollow Pkwy - Primary Meter 2
	 	 	 
	 	(c)	 
	 	 	 
	 	(d)	 

 

Customer
Signature: /s/ Zachary Bradford               Date:
9/29/21

  

	Revision 4; August 31, 2018		Page
                                            1 of 1

    	 	6	 

    	CERTAIN INFORMATION, IDENTIFIED BY [*****], HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL, AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

    

 

		Account
                                            Manager:	[*****]		 
		Account
                                            Number:	[*****]	 	 
	 	Premise
                                            Address:	5295 Brook Hollow Pkwy	 	 
			Norcross, GA 30071	 	 

 

EXCESS
FACILITIES CHARGE AGREEMENT

STANDARD
OFFER

This
Excess Facilities Charge Standard Agreement (“Agreement”) is entered into this 24th day of September, 2021 (the
"Effective Date") between Georgia Power Company
("Company") and CleanBlok Inc. ("Customer").

The
Customer has requested that the Company install the excess facilities described below (the “Excess Facilities”) on the Customer’s
premises described below (the Premises). The Excess Facilities shall augment the Company’s standard system on the Premises. Subject
to the terms and conditions contained herein, the Company agrees to install its Excess Facilities on the Premises.

Description
of Excess Facilities:

 

[*****]

Location
of Premises:

 

5295 Brook Hollow Pkwy Norcross,
GA 30071

 

1.     
To compensate the Company for the cost of installing its capital Excess Facilities on the Premises,
the Customer shall pay Excess Facilities Installation Charges to the Company in the amount of:

 

☒  (i) a one
time Excess Facilities Installation Charge of $[*****]

☐
  (ii) monthly installments each in the amount of $_____, for a fixed period of______months

All
such payments shall include additional amounts as may be necessary to pay any applicable taxes. As security for the monthly installments
of the Excess Facilities Charge, the Customer shall deliver to the Company a security deposit of $ n/a (not to exceed the sum
of three monthly installments).

2.     
To compensate the Company for the allocated cost of operating and maintaining its Excess Facilities
at the Premises, the Customer shall pay Excess Facilities Ongoing Charges to the Company in the amount of:

	 	 	☐	(i)	a
                                            one time prepaid Excess Facilities Charge of $[*****]

	 	 	☐	(ii)	monthly
                                            installments, each in the amount of $n/a, for an initial period of twelve (12) months

All
such payments shall include additional amounts as may be necessary to pay any applicable taxes. If all or any portion of the Excess Facilities
Ongoing Charge is to be paid monthly, the Customer’s obligations to make such payments shall automatically renew from year to year
for successive twelve (12) month periods, until thirty (30) days after written notice from either party hereto of its intent to terminate
this Agreement. As security for the monthly installments of the Excess Facilities Ongoing Charge, the Customer shall deliver to the Company
a security deposit of $ n/a (not to exceed the sum of three monthly installments).

 

		3.	Additional
                                            Terms and Provisions.

The
Customer shall provide access to the Company at reasonable times to allow the Company to perform such work and to remove the Excess Facilities
upon termination of this Agreement.

The
Customer shall not increase load (e.g., building or equipment additions) without first notifying the Company. If the Customer's planned
load increase would require extensions or modifications of the Excess Facilities, the Company shall prepare a plan and estimate of the
costs of such extensions or modifications. Implementation of such extensions or modifications may require modification of this Agreement.

 

    	 	7	 

    	CERTAIN INFORMATION, IDENTIFIED BY [*****], HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL, AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

    

 

The
Customer shall not tamper with, move, or adjust any part of the Excess Facilities or allow anyone else on the Premises, other than authorized
Company representatives, to do the same without prior Company approval. The Customer shall be responsible for the acts of those persons
on the Premises who are not authorized Company personnel, agents or subcontractors. The Customer shall not place any future buildings
or hazardous obstructions within twenty-five (25) feet of the Company's substations or lines without prior written approval of the Company.

The
Company shall not be liable for consequential damages resulting from outages of electric current, including but not limited to damages
to equipment or loss of product or profits. The Customer accepts the risk that there may be periodic interruptions of electric service,
which interruptions shall not constitute a breach of this Agreement by the Company or give rise to any claim or set-off by the Customer
against the Company.

The
Customer’s obligation to pay all of the payments due hereunder is absolute and unconditional, and the Customer shall not be entitled
to, and hereby waives the right to claim, any abatement, reduction, set-off, counterclaim, defense, interruption, deferment, recoupment
or deduction with respect to any payments due hereunder, unless an unreasonable interruption occurs as a result of the company’s
negligence or willful misconduct. Receivables covered under this agreement unpaid after 21 days after the bill date are subject to a
late payment charge.

The
Customer is in default of this agreement if the Premises are or become the subject of a foreclosure proceeding, or if the Customer (a)
fails to pay within 30 days from the due date of its monthly bill; (b) fails to perform in accordance with any provision of this Agreement;
(c) is or becomes insolvent or unable to pay its obligations as they become due; or (d) is or becomes the subject of a petition in a
bankruptcy or a petition for a receivership. Also, upon default, the Company may exercise any one or more of its available remedies at
law or equity, including, without limitation, (i) installing meters in multiple locations between Company owned and Customer owned electric
equipment; (ii) changing the service rate to one that will compensate the Company for all amounts owing under this Agreement; and (iii)
removing the Excess Facilities. Partial exercise or non - exercise of any of the Company's rights or remedies shall not constitute a
waiver of any other right or remedy unless such waiver is expressed in writing.

This
Agreement is not a sale or transfer of any interest in the Excess Facilities. The Company is and shall remain the sole owner of the Excess
Facilities, and shall replace or cause the Excess Facilities to be replaced at no additional cost to the customer if the Excess Facilities
are defective or do not perform to the specifications provided. The Customer shall not have any interest or rights in the Excess Facilities.

In
the event of early termination of this Agreement, the Customer shall be responsible for removal costs in an amount determined by the
Company.

This
Agreement will be in force on the Effective Date of this Agreement or at the time the Excess Facilities become functional, whichever
occurs first, and shall continue until all amounts owing to the Company hereunder have been paid in full or the Company has removed the
Excess Facilities, whichever occurs later. This Agreement may be modified only in writing signed by the parties hereto, and may not be
modified by an oral agreement. The Customer agrees to provide such additional information of documentation as the Company requests in
connection with this Agreement including further evidence of its authority to enter into this agreement.

This
Agreement shall be binding upon the successors and assigns of the parties hereto. The Customer may not assign its rights and obligations
hereunder without the Company’s prior written consent which shall not be unreasonably withheld. The Company may assign its rights
and obligations hereunder, or any portion thereof, to any other person or entity without the consent of the Customer.

 

	CUSTOMER: CLEANBLOK INC.	GEORGIA POWER
    COMPANY
	 	 
	Signature: /s/ Zachary Bradford	Signature:  /s/ Kyle
    Leach
	 	 
	Print Name: Zachary Bradford	Title:  VP Pricing; Planning
	 	 
	Title: CEO	 

 

Date: 9/29/21

 

    	 	8

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