Document:

Exhibit 10.2

  

S&W DRAFT 

March 16, 2015

 

DEVELOPMENT AND INDEMNIFICATION AGREEMENT

 

by and among

 

RHODE ISLAND ENERGY PARTNERS, LLC,

 

York
Renewable Energy Partners LLC

 

and

 

BLUE SPHERE CORPORATION

 

Dated as of April 8, 2015

 

    	 

    	 

    

 

TABLE OF
CONTENTS

 

	ARTICLE I.  Consideration	2
	 	 	 
	1.01.	Consideration	2
	1.02.	Holdback	2
	 	 	 
	ARTICLE II.  The Closing	3
	 	 	 
	ARTICLE III.  Representations and Warranties of Development	3
	 	 	 
	3.01.	Organization	3
	3.02.	Authorization of the Documents; No Conflicts.	3
	3.03.	Required Consents or Approvals	4
	3.04.	Capitalization of Project LLC.	4
	3.05.	Defaults	5
	3.06.	Absence of Undisclosed Liabilities	5
	3.07.	Absence of Changes	5
	3.08.	Assets, Properties and Rights; Title.	6
	3.09.	Employees; Employee Benefits.	7
	3.10.	Contracts.	7
	3.11.	Compliance; Licenses and Permits; Environmental Matters.	7
	3.12.	Litigation	9
	3.13.	Tax Matters.	9
	3.14.	Related Party Transactions	9
	3.15.	Brokers	10
	3.16.	Real Property	10
	3.17.	Project Intellectual Property	11
	3.18.	Bank Accounts; Managers; Officers	12
	3.19.	Powers of Attorney	12
	3.20.	Eligibility for Tax Credits	12
	3.21.	Project Development.	12
	3.22.	Regulatory Matters	13
	3.23.	Qualification.	13
	3.24.	Information	14
	 	 	 
	ARTICLE IV.  Representations and Warranties of the Company	14
	 	 	 
	4.01.	Organization	14
	4.02.	Authorization of the Documents; No Conflicts.	14
	4.03.	No Consent or Approval Required	15
	4.04.	Authorization of Series B Units	15
	4.05.	Registration Rights	15
	 	 	 
	ARTICLE V.  Representations and Warranties of the Investor	15
	 	 	 
	5.01.	Authorization of the Documents; No Conflicts.	15
	5.02.	Brokers and Finders	16

 

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TABLE OF CONTENTS

 

	ARTICLE VI. Closing Deliverables	16
	 	 	 
	6.01.	Development’s Closing Deliverables.	16
	6.02.	The Company’s Closing Deliverables	17
	6.03.	Investor’s Closing Deliverables	17
	 	 	 
	ARTICLE VII. Covenants	18
	 	 	 
	7.01.	Tax Characterization	18
	7.02.	Insurance	18
	7.03.	Public Announcements	18
	7.04.	Confidentiality	18
	7.05.	Transfer Taxes	19
	7.06.	Development Release	19
	7.07.	Project LLC Liabilities	19
	7.08.	Original Promissory Notes	19
	7.09.	Further Assurances	20
	 	 	 
	ARTICLE VIII. Indemnification	20
	 	 	 
	8.01.	Survival of Representations, Warranties, Agreements and Covenants, Etc	20
	8.02.	Indemnification.	20
	8.03.	Limits on Indemnification	22
	8.04.	Set-Off Right	22
	 	 	 
	ARTICLE IX. Miscellaneous	22
	 	 	 
	9.01.	Assignment	22
	9.02.	Entire Agreement; Severability	22
	9.03.	Notices	23
	9.04.	Amendments; Waivers	24
	9.05.	Counterparts	24
	9.06.	Headings	24
	9.07.	Governing Law	24
	9.08.	Arbitration	24
	9.09.	Specific Performance	25
	 	 	 
	ARTICLE X. Definitions; Interpretation	25
	 	 	 
	10.01.	Definitions.	25
	10.02.	Index of Certain Other Definitions	31
	10.03.	Rules of Construction	32

 

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EXHIBITS
AND SCHEDULES

 

	Exhibits	 
	 	 
	Exhibit A	Project LLC Purchase Agreement
	Exhibit B	Form of LLC Agreement

 

Disclosure Schedules

 

Development Disclosure Schedules

 

	Schedules	 
	Schedule 3.02	Consents and Notices
	Schedule 3.04	Capitalization of Project LLC
	Schedule 3.06	Project LLC Liabilities
	Schedule 3.07	Absence of Changes
	Schedule 3.08	Description of Assets
	Schedule 3.10	Contracts and Contracts Notices and Consents
	Schedule 3.11(a)	Permits
	Schedule 3.11(b)	Outstanding Permits
	Schedule 3.11(d)	Consents and Notices under Permits and Outstanding Permits
	Schedule 3.12(e)	Storage Tanks
	Schedule 3.12(f)	Environmental Documentation
	Schedule 3.12(g)	Releases
	Schedule 3.14	Related Party Transactions
	Schedule 3.16	Real Property
	Schedule 3.17	Project Intellectual Property
	Schedule 3.18	Bank Accounts; Managers; Officers
	Schedule 3.20	Production Tax Credit
	Schedule 3.21	Project Development
	Schedule 6.01(h)	Biomass supply agreements to be delivered at Closing
	Schedule C	Permitted Encumbrances

 

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DEVELOPMENT AND INDEMNIFICATION
AGREEMENT

 

This Development and Indemnification
Agreement, dated as of April 8, 2015 (this “Agreement”), is entered into by and among Rhode
Island Energy Partners, LLC, a Delaware limited liability company (the “Company”), York Renewable
Energy Partners LLC, a Delaware limited liability company (the “Investor”), and Blue Sphere Corporation,
a Nevada corporation (“Development”). Capitalized terms not otherwise defined herein shall have the meanings
set forth in Section 10.01.

 

WHEREAS, Orbit Energy
Rhode Island, LLC, a Rhode Island limited liability company (“Project LLC”), holds certain development
rights and other assets, including without limitation, certain permits, technology rights and contractual rights necessary for
the construction and operation of a high solids anaerobic digestion and energy generation facility for the production of biogas
and electricity in Johnston, Rhode Island (the “Project”);

 

WHEREAS, Project
LLC was organized by Orbit Energy, Inc., a North Carolina corporation (“Seller”), and, pursuant to a
certain Amended and Restated Orbit Energy Rhode Island, LLC Purchase Agreement (including Exhibit A thereto) made and entered into
by Seller and Development as of January 7, 2015 (the “Prior Purchase Agreement”), Development purchased
100% of the limited liability company interests of Project LLC (the “Interests”) from Seller, and Development
became the sole member of Project LLC on January 7, 2015;

 

WHEREAS, Development,
prior to and during the period in which it was the sole member of Project LLC, on behalf of Project LLC, procured and coordinated
contractual and governmental and permitting rights necessary for the development and construction of the Project;

 

WHEREAS, Development,
Project LLC, the Company and Seller have executed a certain Orbit Energy Rhode Island, LLC Membership Interest Purchase Agreement
dated as of March [●], 2015 (“Project LLC Purchase Agreement”) pursuant to which (i) any automatic
reversion of the Interests from Development to Seller has been deemed not to have occurred, and did not occur, and has been deemed,
and is, null and void, (ii) immediately prior to the Closing hereunder, the Interests shall revert to Seller, and Seller shall
become the sole member of Project LLC, and the Company shall purchase from Seller, the Interests for $386,432 and on the terms
and conditions described therein, and (iii) Seller shall release the Company, the Investor and Project LLC and their respective
assets, including the Project, from any liability for any of the obligations of Development under the Prior Purchase Agreement,
and shall grant to Project LLC a perpetual, royalty-free, nonexclusive license to use certain technology in the Project on the
terms and conditions set forth therein;

 

    	 

    	 

    

 

WHEREAS, the parties
acknowledge and agree that (i) the Company is purchasing the Interests from Seller in reliance on the representations, warranties
and covenants of Seller set forth in the Project LLC Purchase Agreement and the representations and warranties regarding Project
LLC, its assets and liabilities and the Project and the covenants of Development set forth herein; and (ii) in consideration of
the representations and warranties regarding Project LLC, its assets and liabilities and the Project and the covenants of Development
set forth herein, (1) pay to Development a cash payment, subject to the Holdback (as defined herein), equal to the sum of (a) $562,500
(the “Closing Fee”), plus (b) $562,500 (the “Closing Development Fee”
and, together with the Closing Fee, the “Holdback Amount”), plus (c) reimbursement for all documented
payments made prior to the date hereof by Blue Sphere to Austep SpA in connection with the Project in an amount not to exceed $144,000
(the “Austep SpA Reimbursement Fee”), plus (d) reimbursement for all documented payments of document
preparation and start-up costs made prior to the date hereof by Blue Sphere in connection with the Project in an amount not to
exceed $333,500 (the “Preparation Fee” and, together with the Closing Fee, the Closing Development Fee
and the Austep SpA Reimbursement Fee, the “Closing Payment”) and (2) issue to Development 2,275 Series
B units of the Company (“Series B Units”), such that the Investor will be a member of the Company holding
7,725 Series A units (“Series A Units”) representing 77.25% of the limited liability company interests
of the Company, and Development will be admitted as a member of the Company holding 2,275 Series B Units representing 22.75% of
the limited liability company interests of the Company in accordance with the terms of an amended and restated limited liability
company agreement of the Company, the form of which is attached here to as Exhibit B (the “LLC Agreement”);

 

WHEREAS, simultaneously
with the Closing hereunder, the closing of the purchase of the Interests by the Company from Seller pursuant to the Project LLC
Purchase Agreement shall take place;

 

NOW, THEREFORE,
in consideration of the foregoing and the covenants, agreements, representations and warranties contained in this Agreement, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties
hereto hereby agree as follows:

 

ARTICLE I.

Consideration

 

1.01.         Consideration.
Pursuant to the terms of the LLC Agreement and herein, as consideration for the representations, warranties, covenants and obligations
of Development hereunder, at the Closing the Company shall (i) pay to Development, subject to the Holdback, the Closing Payment
by wire transfer of immediately available funds in accordance with the wire transfer instructions previously delivered to the Company,
and (ii) issue to Development 2,275 Series B Units and shall admit Development as a member of the Company in accordance with the
terms of the LLC Agreement, effective as of the Closing (the Closing Payment and the Series B Units, together, the “Consideration”).

 

1.02.         Holdback.
Development hereby agrees that, notwithstanding anything contained in this Agreement to the contrary, if, at or prior to the Closing,
the Investor, in its sole discretion, waives one or both of the PPA Condition and the Interconnection Agreement Condition (each
as defined herein), then the Closing Payment to be paid to Development at the Closing shall be reduced by the Holdback Amount
(the “Holdback”).
In the event that the Investor waives one or both of the PPA Condition and the Interconnection Agreement Condition in accordance
with this Section 1.02, the Holdback Amount shall be paid to Development no later than three (3) Business Days following
the date on which the last of the PPA Condition and the Interconnection Agreement Condition is satisfied.

 

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ARTICLE II.

The Closing

 

The closing hereunder shall
take place simultaneously with the execution of this Agreement on the date of this Agreement (the “Closing Date”)
at the offices of Sullivan & Worcester LLP, One Post Office Square, Boston, MA 02109 (the “Closing”).

 

ARTICLE III.

Representations and Warranties of Development

 

Except as set forth in
the appropriately numbered section of the Development Disclosure Schedules, and as an inducement to the Investor to pay
the Consideration, Development hereby represents and warrants to the Investor as of the date hereof as follows:

 

3.01.         Organization.
Development is a duly organized and validly existing corporation under the laws of Nevada, is duly qualified to do business and
is in good standing in each other jurisdiction where the laws of that jurisdiction require such qualification and has all requisite
corporate power and authority to own, lease and operate the assets used in its business, to carry on its business as presently
conducted, to enter into the Documents to which it is or will be a party, to perform its obligations thereunder, and to consummate
the transactions contemplated thereby. Project LLC is a duly organized and validly existing limited liability company under the
laws of Rhode Island, is duly qualified to do business and is in good standing in each other jurisdiction where the laws of that
jurisdiction require such qualification and has all requisite limited liability company power and authority to own, lease and operate
the assets used in its business, to carry on its business as presently conducted, to enter into the Documents to which it is or
will be a party, to perform its obligations thereunder, and to consummate the transactions contemplated thereby. Development has
made available to the Investor true and complete copies of Development’s and Project LLC’s executed Organizational
Documents, as presently in effect.

 

3.02.         Authorization
of the Documents; No Conflicts.

 

(a)          Each
of Development and Project LLC has all requisite corporate or limited liability company power and authority, as applicable, to
execute, deliver and perform under the Documents to which it is a party and to consummate the transactions contemplated thereby.
The execution, delivery and performance by each of Development and Project LLC of the Documents to which it is a party have been
duly authorized by all requisite board of directors and shareholder action or limited liability company manager and member action,
as applicable, of such entity, and each Document to which Development or Project LLC is a party constitutes a valid and binding
obligation of Development or Project LLC, as applicable, enforceable against Development or Project LLC, as applicable, in accordance
with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditor’s rights and to general equitable principles. The approval of Development’s
shareholders is not required to execute, deliver and perform the Documents to which it is a party or to consummate the transactions
contemplated by the Documents.

 

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(b)          The
execution, delivery and performance by each of Development and Project LLC of the Documents to which it is a party, its consummation
of the transactions contemplated thereby and its compliance with the provisions thereof will not (A) violate any provision of any
Law applicable to Development or Project LLC or any of their respective properties or assets, (B) conflict with or result in any
breach of any of the terms, conditions or provisions of, or constitute (with due notice or lapse of time, or both) a default or
give rise to any right of termination, cancellation or acceleration under their respective Organizational Documents, or (C) except
as set forth on Schedule 3.02(b), conflict with or result in any breach of any of the terms, conditions or provisions of,
or constitute (with due notice or lapse of time, or both) a default or give rise to any right of termination, cancellation or acceleration
under, or result in the creation of any Encumbrance upon any of the properties or assets of Development or Project LLC, including,
without limitation, under any Contract, Permit or Outstanding Permit.

 

3.03.         Required
Consents or Approvals. All filings, consents and approvals set forth on Schedule 3.03(b), Schedule 3.10 and Schedule
3.11(d) have been timely made or obtained, as applicable, and there are no notices, consents, approvals or authorizations of,
declarations to or filings with any Person, including any Governmental Authority, required for the valid authorization, execution
and delivery by each of Development and Project LLC of any Document to which it is a party or for its consummation of the transactions
contemplated thereby.

 

3.04.         Capitalization
of Project LLC.

 

(a)          Project
LLC was organized by Seller and pursuant to the Prior Purchase Agreement, Development purchased 100% the Interests from Seller,
and Development became the sole member of Project LLC on January 7, 2015. Any automatic reversion set forth in the Prior Purchase
Agreement has been deemed not have occurred, and did not occur, and has been deemed, and is, null and void. Pursuant to the Prior
Purchase Agreement and the Project LLC Purchase Agreement, the Interests automatically reverted to Seller without further action
on the date hereof, and effective on the date hereof, Seller again became the sole owner of the Interests and the sole member of
Project LLC.

 

(b)          Schedule
3.04 accurately sets forth for Project LLC, for the periods from its date of formation through the date hereof: (i) the number
and type of its authorized limited liability company interests, (ii) the number and type of its outstanding limited liability company
interests, and (iii) the names and addresses of record of all members and all other holders of its issued and outstanding limited
liability company interests, and the number and types of limited liability company interests held of record by each of them. Project
LLC has no other equity interests other than the limited liability company interests authorized or issued and outstanding, other
than those set forth on Schedule 3.04.

 

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(c)          All
of the issued and outstanding limited liability company interests of Project LLC have been duly authorized and validly issued and
are fully paid and non-assessable, with no personal liability attaching to the ownership thereof. No subscription, warrant, option,
convertible security or other right (contingent or otherwise) to purchase or acquire any equity securities of Project LLC is authorized
or outstanding; Project LLC has no obligation (contingent or otherwise) to issue any subscription, warrant, option, convertible
security or other such right or to issue or distribute to holders of any limited liability company interests or other equity securities
or any evidences of indebtedness or assets; Project LLC has no obligation (contingent or otherwise) to purchase, redeem or otherwise
acquire any of its equity securities or any interest therein or to pay any dividend or make any other distribution in respect thereof,
and there are no outstanding or authorized equity appreciation, phantom equity or similar rights with respect to Project LLC. Other
than as contemplated by this Agreement, since the date of formation of Project LLC, there have not been any members or holders
of limited liability company interests of Project LLC other than Development and Seller.

 

(d)          All
of the issued and outstanding equity securities of Project LLC have been offered, issued and sold by Project LLC in compliance
with applicable federal and state securities Laws. Project LLC has not issued any certificates or other instruments to evidence
its equity interests.

 

(e)          There
is no limited liability company agreement of Project LLC. Seller is the sole member of Project LLC and the sole record and beneficial
owner of all of the issued and outstanding limited liability company interests of Project LLC, and Development has complied with
all requirements required by Law to consummate the transfer of 100% of the limited liability company interests of Project LLC
from Development to Seller and to admit Seller as the sole member of Project LLC.

 

3.05.         Defaults.
Project LLC (i) is not in default under its Organizational Documents or any Contract or Permitted Encumbrance to which it is a
party or by which it or its properties are bound or affected and (ii) is not in material default under any Law applicable to Project
LLC. There exists no condition, event or act which constitutes, or which, after notice, lapse of time or both, would constitute,
a default by Project LLC under any of the foregoing.

 

3.06.         Absence
of Undisclosed Liabilities. Schedule 3.06 sets forth the Liabilities of Project LLC or any of its assets or the Project.
Except at set forth on Schedule 3.06, Project LLC has no Liabilities.

 

3.07.         Absence
of Changes. With respect to Project LLC, since the date of its formation, except as set forth on Schedule 3.07 there
has not been:

 

(a)          any
Material Adverse Event,

 

(b)          any
borrowing or agreement to borrow funds or any Liability incurred by Project LLC,

 

(c)          any
asset or property of Project LLC made subject to any Encumbrance or Lien of any kind other than Permitted Encumbrances,

 

(d)          any
waiver of any right of Project LLC or the cancellation of any debt owed to or claim held by Project LLC,

 

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(e)          any
payment of distributions on, or other distribution with respect to, or any direct or indirect redemption, purchase or acquisition
of, any equity securities of Project LLC,

 

(f)          any
disposition of any material tangible or intangible asset of Project LLC, or any acquisition of any material tangible or intangible
asset by Project LLC,

 

(g)          any
loan by Project LLC to any officer, director, employee, consultant, agent, affiliate or stockholder or member,

 

(h)          any
damage, destruction or loss (whether or not covered by insurance) of any material asset of Project LLC,

 

(i)          any
entry into, or amendment or waiver of any right under, any Contract by Project LLC,

 

(j)          any
change to any material tax elections (except as required by applicable Law), tax accounting period or tax accounting methods (except
as required by applicable Law), any surrender of any right to claim a material tax refund, any settlement or compromise of any
material tax Liability, or any entry into, or payment of, any amount under, any tax indemnity, tax sharing, tax allocation or similar
agreement,

 

(k)          the
filing or commencement of any Claim, litigation or action by or against Project LLC,

 

(l)          any
other transaction not in the ordinary course of business, or

 

(m)          any
agreement or commitment with respect to any of the foregoing matters.

 

3.08.         Assets,
Properties and Rights; Title.

 

(a)          All
of the assets owned, leased, used or held for use and necessary for the development, construction and operation of the Project
are set forth on Schedule 3.08 together with the Project Miscellaneous Assets (collectively, “Project Assets”).

 

(b)          Project
LLC does not own any equity of any kind in any corporation, partnership, limited liability company, joint venture, association
or other entity.

 

(c)          No
Project Assets have been retained by Development or any of its Affiliates.

 

(d)          Following
the consummation of the Project LLC Purchase Agreement and the transactions contemplated by this Agreement, the Company will have
good and valid title to all of the issued and outstanding limited liability company interests in Project LLC, free and clear of
all mortgages, judgments, Claims, liens, security interests, pledges, escrows, charges, pre-emptive rights, rights of first offer
or first refusal, or other encumbrances of any kind or character whatsoever (“Encumbrances”) and the
Company will be the sole member of Project LLC.

 

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3.09.         Employees;
Employee Benefits.

 

(a)          Project
LLC has no employees or independent contractors, and has no Liability with respect to former employees or independent contractors,
if any.

 

(b)          Project
LLC does not have any Liability, under or to, or sponsor, maintain, contribute to or otherwise participate in any Employee Benefit
Plan.

 

3.10.         Contracts.

 

(a)          Schedule
3.10 sets forth an accurate and complete list of all contracts, indentures, leases, agreements and instruments (each, a “Contract”
and collectively, the “Contracts”), whether written or oral (including any and all amendments, modifications,
supplements and side letters with respect thereto), to which Project LLC is a party or by which it or any of its assets (including
the Project and the Leased Real Property) are bound or which comprise or are necessary to any Project Assets.

 

(b)          Except
as set forth in Schedule 3.10, all of the Contracts are in full force and effect and are enforceable in all respects in
accordance with their terms and neither Project LLC nor any other party thereto is in breach or in default under (and no event
has occurred which with notice or the passage of time or both would constitute a breach or default under) any such Contract. No
Person has provided notice that it may, or threatened in writing to, terminate or cancel any Contract. As of the date hereof, no
Contract or Law restricts or inhibits in any way Project LLC’s right or ability to conduct its business in the manner as
currently intended, other than any Law that requires Project LLC to obtain one or more Outstanding Permits. Set forth on Schedule
3.10 is a list of each Contract under which a notice to or consent from a counterparty is required in order to consummate the
transactions contemplated by this Agreement or the Project LLC Purchase Agreement and to develop, construct, own or operate the
Project.

 

3.11.         Compliance;
Licenses and Permits; Environmental Matters.

 

(a)          Schedule
3.11(a) lists all Permits that are currently issued to Project LLC relating to the Project. Project LLC has complied in all
material respects with, and is not in material violation in any respect of, any Law or Permit. To the Knowledge of Development,
there is no fact or circumstance, including a proposed change in Law, which would, or might reasonably be expected to, result in
any material violation by Project LLC of any Law or Permit. All of the Permits listed on Schedule 3.11(a) are final and
in full force and effect, the periods to appeal such Permits have expired, no material violations are outstanding or uncured with
respect to any such Permits, and no Claim is pending or, to the Knowledge of Development, threatened to revoke, limit or materially
modify any such Permits.

 

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(b)          Schedule
3.11(b) lists all of the other Permits (including all pending applications for Permits) that Project LLC still requires, as
of the date hereof, in order to develop, construct, own or operate the Project in the manner as currently intended and in compliance
with Law (the “Outstanding Permits”). Except as set forth on Schedule 3.11(b), complete applications
for all Outstanding Permits have been filed with the appropriate Governmental Authorities, and Development has no reason to believe
the Outstanding Permits will not be issued in due course.

 

(c)          As
of the date hereof, the Permits and the Outstanding Permits constitute all of the licenses, permits, approvals, registrations and
other authorizations that are required to develop, construct, own and operate the Project as currently intended and in compliance
with Law.

 

(d)          Schedule
3.11(d) lists all Permits and Outstanding Permits for which a notice to or consent of a Governmental Authority or other Person
is required in order to consummate the transactions contemplated by this Agreement or the Project LLC Purchase Agreement.

 

(e)          Schedule
3.11(e) contains a complete and accurate list of all active or abandoned aboveground or underground storage tanks located on
the Leased Real Property.

 

(f)          Development
has provided or otherwise made available to the Investor any and all environmental reports, studies, audits, sampling data, site
assessments, risk assessments, economic models and other similar documents with respect to the business or assets of Project LLC
or the Leased Real Property related to compliance with Environmental and Safety Requirements (the “Environmental Documentation”),
which Environmental Documentation is listed on Schedule 3.11(f).

 

(g)          Project
LLC and the Leased Real Property have been and are in material compliance with all Environmental and Safety Requirements, and there
are no Claims pending or, to the Knowledge of Development, threatened with respect to Project LLC, the Leased Real Property or
the Project alleging any failure to so comply or involving any of Project LLC’s current or past operations or any of its
current or past real property. Neither Development nor Project LLC has received any written notice, report or written Claim regarding,
and Development has no Knowledge of, any (A) actual or alleged violation by Project LLC, the Project or the Leased Real Property
of Environmental and Safety Requirements or (B) actual or potential Liability of Project LLC arising under Environmental and Safety
Requirements, including, without limitation, any investigatory, remedial or corrective action obligation. Project LLC has not expressly
assumed or undertaken any Liability of any other Person under any Environmental and Safety Requirement. Project LLC has not generated,
treated, stored, disposed of, arranged for or permitted the disposal of, transported, handled or Released any Hazardous Material,
or owned, operated or leased any real property or assets in a manner that has given rise or is reasonably likely to give rise to
Liabilities pursuant to any Environmental and Safety Requirement, including any Liability for response costs, corrective action
costs, personal injury, property damage, natural resources damage or attorney fees, or any investigative, corrective or remedial
obligations. Except as set forth on Schedule 3.11(g), there has been no Release of any Hazardous Material at or onto the
Leased Real Property or any property owned, leased or operated by Project LLC, and all such properties are free of any Environmental
Liens.

 

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3.12.         Litigation.
There is no litigation, cause of action, challenge, appeal (whether administrative or judicial) arbitration, audit, hearing, suit,
investigation or proceeding (whether civil, criminal, administrative, investigative or informal) commenced or brought by any Person
and conducted, or heard by or before, or otherwise involving, any Governmental Authority or arbitrator (“Proceedings”)
pending or, to Development’s Knowledge, threatened against Project LLC; and neither Project LLC nor any of its assets are
subject to or bound by any injunction, order, judgment or decree of any Governmental Authority.

 

3.13.         Tax
Matters.

 

(a)          All
Tax returns required to be filed by Development (with respect to the Project) and Project LLC have been timely filed and are true,
correct and complete in all material respects, and all Taxes required to have been paid by Development (with respect to the Project)
and by Project LLC have been paid or accrued within the prescribed period or any extension thereof. All Taxes required to be withheld
by Development or Project LLC have been collected and withheld and have been either paid to the respective Governmental Authorities,
set aside in accounts for such purpose, or accrued, reserved against, and entered upon the books and records of the employer.

 

(b)          Project
LLC has been treated as an entity that is disregarded as separate from its owner for United States federal and applicable state
and local income tax purposes at all times since its date of organization. To Development’s Knowledge, no shareholder, officer
or director of Development and no manager, officer or member of either the Company or Project LLC has taken a position, taken any
action, or filed any election inconsistent with such treatment, and to the Knowledge of Development, no Taxing authority has taken
a position inconsistent with such treatment.

 

(c)          Neither
the Company nor Project LLC has been notified that the Internal Revenue Service or any other Taxing authority has raised any issues,
or intends to raise any issues, in connection with any Taxes or Tax return of Development with respect to the Project or in connection
with any Taxes or Tax return of the Company or Project LLC.

 

3.14.         Related
Party Transactions. Except as set forth on Schedule 3.14, no current or former Affiliate, member, shareholder, director,
officer, manager or employee of Development or Project LLC (each, a “Related Party”) is presently, or
since such entity’s inception has been, directly or indirectly through his, her or its affiliation with any other Person,
a party to any transaction providing for the furnishing of services by or to, or rental of real or personal property from or to,
or otherwise requiring cash payments to or by Project LLC. Project LLC is not a party to any Contract or other commitment or transaction
with a Related Party, nor do any Related Parties have any legal or beneficial interest in the assets or property owned or used
by Project LLC or in any Contract to which Project LLC is a party or in any other Person with which Project LLC is or has been
party to a Contract. There are no outstanding Claims, accounts payable or receivable, intercompany loans, indebtedness or other
Liabilities between Project LLC, on the one hand and any Related Party on the other hand and, as of the Closing, all such Liabilities
have been, or as of the Closing will have been repaid in full.

 

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3.15.         Brokers.
Except as set forth on Schedule 3.15, neither Development nor Project LLC, nor any of the officers, directors, employees,
shareholders, managers or members of Development or Project LLC, has employed any broker or finder in connection with the transactions
contemplated by this Agreement or the other Documents, and Development shall be solely responsible for the payment of any such
broker or finder fees.

 

3.16.         Real
Property

 

(a)          Project
LLC does not own and has never owned fee simple title to any real property. Schedule 3.16 lists all real property in which
Project LLC holds a leasehold interest (the “Leased Real Property”). Project LLC has a valid leasehold
interest in the Leased Real Property pursuant to that certain lease with Shelby Realty, Inc., as landlord, as described on Schedule
3.16 (the “Lease”), free and clear of any Liens and Encumbrances, other than Permitted Encumbrances.
Development has delivered or made available to the Investor a true, complete and correct copy of the Lease and the Lease has not
been amended or modified except as disclosed in Schedule 3.16. The Lease is in full force and effect, no uncured written
notice of default has been received by or issued by Development or Project LLC in connection with the Lease and, to Development’s
Knowledge, no event has occurred that, with the giving of notice or the passage of time, would constitute a default under the Lease.
[The consummation of the transactions contemplated by this Agreement and the other Documents does not require the consent of the
landlord under the Lease.]

 

(b)          Development
has delivered or made available to the Investor true, complete and correct copies of all title insurance policies, opinions, abstracts
and surveys in the possession of Development relating to the Leased Real Property. The anticipated use and operation of the Leased
Real Property in connection with the Project do not violate in any material respect any Law, Permitted Encumbrance, covenant, condition,
restriction, easement, license, permit or agreement. There are no Proceedings pending nor, to Development’s Knowledge, threatened
against or affecting the Leased Real Property or any portion thereof or interest therein in the nature or in lieu of appropriation,
condemnation or like proceeding, or of any violation of any zoning law, regulation or rule or other law, order, regulation, rule
or requirement relating to or affecting the Leased Real Property.

 

(c)          Neither
Development nor Project LLC has granted any assignment, lease, license, sublease, easement, concession or other agreement (written
or oral) granting to any Person the right to possess, use or occupy any of the Leased Real Property. No portion of the Leased Real
Property is subject to any right of first refusal, option to purchase or lease granted to any Person except Project LLC.

 

(d)          Neither
Development nor Project LLC has received written notice of any appropriation, condemnation or like proceeding, or of any violation
of any zoning law, regulation or rule or other law, order, regulation, rule or requirement relating to or affecting any of the
Leased Real Property.

 

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(e)          The
electricity, water, telecommunications and other services needed to develop, construct, own and operate the Project are available
at the Leased Real Property. To the Knowledge of Development, there is no fact or circumstance, which would, or might reasonably
be expected to, result in electricity, water, telecommunications and other services necessary to develop, construct, own and operate
the Project becoming unavailable at the Leased Real Property.

 

(f)          Project
LLC has sufficient legal access and use of the Leased Real Property to develop, construct, own and operate the Project as presently
intended.

 

(g)          No
physical work has commenced on the Project on the Leased Real Property.

 

(h)          The
Leased Real Property is all the real property that is necessary for the normal operation and maintenance by Project LLC of the
Project in accordance with its design pursuant to the EPC Agreement and in accordance with Law.

 

3.17.         Project
Intellectual Property

 

(a)          A
list and description of the Project Intellectual Property of Project LLC is set forth on Schedule 3.17(a). Development has
made available to the Investor copies of all material documents relating to all Project Intellectual Property in its possession
(other than computer software that is generally available to consumers at retail and licensed pursuant to “shrink-wrap",
“click-through” or other similar standard license agreements). Except as set forth in Schedule 3.17(a), (i)
the Project Intellectual Property owned by Project LLC Company is valid and enforceable and (ii) Project LLC owns or licenses and
possesses all right, title and interest in and to, or possesses the valid right to use, all of the Project Intellectual Property
free and clear of all Liens.

 

(b)          The
Project Intellectual Property includes all of the Intellectual Property which is necessary for the conduct of Project LLC’s
business as currently conducted, or, with respect to the Project to the extent developed, intended to be conducted, and there are
no other items of Intellectual Property that are material to the ordinary conduct of the business or the proposed business of Project
LLC. The operation of Project LLC’s business, as currently conducted, or, with respect to the Project to the extent developed,
intended to be conducted, and the use of the Project Intellectual Property in connection therewith, do not conflict with, infringe,
dilute, misappropriate or otherwise violate any third party’s Intellectual Property; no claim is pending or threatened in
writing or, to Development’s Knowledge, threatened in any format other than in writing against Project LLC alleging any of
the foregoing. All documents in connection with Project LLC’s title to, validity and enforceability of the Project Intellectual
Property form part of the records or materials in Project LLC’s possession and control. The Project Intellectual Property
is valid, existing and enforceable and has not been adjudged by a court of competent jurisdiction invalid or unenforceable in whole
or in part. None of the Project Intellectual Property is subject to any outstanding consent, settlement, decree, order, injunction,
judgment or ruling from any Governmental Authority (1) restricting the use of such Project Intellectual Property or (2) that would
impair the validity or enforceability of such Project Intellectual Property. No Governmental Authority, university or other organization
(1) has funded Project LLC’s development activities or (2) has any claim of right to, ownership of, or other Encumbrance
on, any of the Project Intellectual Property.

 

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3.18.         Bank
Accounts; Managers; Officers. Schedule 3.18 contains a true and correct list of (i) the names of all banks and other
financial institutions in which Project LLC currently has an account, deposit or safe deposit box, along with the account numbers
and the names of all Persons holding check-signing or withdrawal power or other authority with respect thereto, and (ii) the names
of all managers and, if applicable, officers and directors of Project LLC who served in such positions from January 7, 2015 through
the date hereof and prior to the reversion of the Interests to Seller, and the title and position of each.

 

3.19.         Powers
of Attorney. There are no powers of attorney or any similar documents pursuant to which any Person (other than Project LLC)
has authority to bind or act on behalf of Project LLC or the Project.

 

3.20.         Eligibility
for Tax Credits. As of December 31, 2014, the Project as designed and defined herein was qualified as having commenced construction
for purposes of qualifying the Project for the Production Tax Credit in Section 45 of the Code, and the investment tax credit under
Section 48 of the Code. Schedule 3.20 sets forth a description of the actions taken to achieve such qualification of the
Project, with references to supporting documentation.

 

3.21.         Project
Development.

 

(a)          Except
as set forth on Schedule 3.21, Development and Project LLC have submitted all documentation required by the Transmission
Provider to interconnect the Project to the transmission or distribution system of the Transmission Provider and has obtained all
approvals required by the Transmission Provider in connection with the interconnection of the Project to the Transmission Provider’s
transmission or distribution system. All easements or rights-of-way necessary to interconnect the Project to the Transmission Provider
have been obtained. Development has provided to the Investor a true and complete copy of each such application, approval and related
documents, and Project LLC is and will be in compliance with all applicable requirements of the Transmission Provider.

 

(b)          Except
as set forth on Schedule 3.21, Development and Project LLC have submitted all documentation required by the Power Purchaser
to make arrangements to deliver and sell to the Power Purchaser at the interconnection point any and all output of the Project
and has entered into the Power Purchase Agreement with the Power Purchaser for the delivery and sale of such output, and Project
LLC is in compliance with the terms and conditions of the Power Purchase Agreement. All approvals and actions necessary to make
such Power Purchase Agreement effective to enable Project LLC to commence delivery thereunder have been undertaken, and there are
no facts or circumstances that would be expected to result in non-compliance with the terms and conditions of the Power Purchase
Agreement in the future. Development has provided to the Investor a true and complete copy of the applicable Power Purchase Agreement
and any other related documentation and agreements.

 

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(c)          Except
as set forth on Schedule 3.21, Project LLC has completed and is in compliance with the requirements of the Rhode Island
Public Utilities Commission with respect to all filings and approvals required to be made or obtained in connection with the Project.

 

(d)          Except
as set forth on Schedule 3.21, neither Development nor Project LLC has received written notice (or, to the Knowledge of
Development, any oral notice) from the Power Purchaser, specific to the Project or otherwise, that such Power Purchaser has taken
or has determined to take any action with respect to termination or impairment of any rights under any the Power Purchase Agreement,
system impact or interconnection studies, system facilities agreements or other Contracts relating to interconnection of and purchase
of power from the Project. Except as set forth on Schedule 3.21, Development and Project LLC, as applicable,
have timely made all material deposits and other payments, and filed all reports and other information, required in order to maintain
the Power Purchase Agreement, system impact or interconnection studies, system facilities agreement or any other Contract relating
to interconnection of and purchase of power from the Project.

 

(e)          Development
shall, following the Closing, cooperate with Project LLC in order to effectuate all further notices, filings and consents that
may be required in connection with the Power Purchase Agreement, requirements of the Rhode Island Public Utilities Commission (and
all permits, approvals, authorizations and registrations therewith and related thereto), FERC or otherwise by the Transmission
Provider or Power Purchaser with respect to the change of control of the Project LLC, including taking such reasonable actions
requested by the Investor to facilitate or otherwise assist therewith.

 

3.22.         Regulatory
Matters. The Project is certified as a “Qualifying Facility” by FERC in accordance with the Public Utility Regulatory
Policies Act of 1978, and Project LLC has filed FERC Form No. 556 with respect to the Project and has provided or will provide
notices of “Qualifying Facility” status to the Power Purchaser and the Rhode Island Public Utilities Commission, where
required by FERC and applicable state regulation. The Project shall, at the time it is placed in service, qualify as “new
capacity,” as defined by FERC.

 

3.23.         Qualification.

 

(a)          The
Series B Units are being acquired for investment purposes only for Development’s own account and not with a view to or in
connection with any distribution, reoffer, resale or other disposition not in compliance with the Securities Act and applicable
state securities laws.

 

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(b)          Development
is experienced and sophisticated with respect to the transactions contemplated by this Agreement and has such knowledge and experience
in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Series B Units.
Development is aware that it must bear the economic risk of its investment in the Company for an indefinite period of time because
its Series B Units have not been registered under the Securities Act or under any applicable state securities laws and, therefore,
cannot be sold unless the Series B Units are subsequently registered under the Securities Act and any applicable state securities
laws or pursuant to an exemption thereunder

 

3.24.         Information

 

(a)          The
written information created or developed by Development and provided by Development to the Investor (other than any financial projections)
does not contain any untrue statement of a material fact or omit to state a fact that, in the case of such statement or omission,
could be reasonably expected, individually or in the aggregate, to result in a Material Adverse Effect.

 

(b)          To
Development’s Knowledge, the written information created or developed by any third party and provided by Development to the
Investor does not contain any untrue statement of a material fact or omit to state a fact that, in the case of such statement or
omission, could be reasonably expected, individually or in the aggregate, to result in a Material Adverse Effect.

 

ARTICLE IV.

Representations and Warranties of the Company

 

The Company represents and warrants to Development
as of the date hereof as follows:

 

4.01.         Organization.
The Company is duly organized, validly existing and in good standing under the laws of its jurisdiction of its organization, is
duly qualified to do business and in good standing in each other jurisdiction where the laws of that jurisdiction require such
qualification and has all requisite power and authority to own, lease and operate the assets used in its business, to carry on
its business as presently conducted, to enter into the Documents to which it is or will be a party, to perform its obligations
thereunder, and to consummate the transactions contemplated thereby. The Company has furnished the Investor with true and complete
copies of its executed Organizational Documents, as presently in effect.

 

4.02.         Authorization
of the Documents; No Conflicts.

 

(a)          The
Company has all requisite power and authority to execute, deliver and perform under the Documents to which it is a party and to
consummate the transactions contemplated thereby. The execution, delivery and performance by the Company of the Documents to which
it is a party have been duly authorized by all limited liability company and member action, and the Documents to which it is a
party constitute valid and binding obligations of the Company, enforceable against the Company in accordance with its terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to
or affecting creditor’s rights and to general equitable principles.

 

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(b)          The
execution, delivery and performance by the Company of the Documents to which it is a party, its consummation of the transactions
contemplated thereby and its compliance with the provisions thereof will not (A) violate any provision of any Law applicable to
the Company or any of its properties or assets, (B) conflict with or result in any breach of any of the terms, conditions or provisions
of, or constitute (with due notice or lapse of time, or both) a default or give rise to any right of termination, cancellation
or acceleration under its Organizational Documents, or result in the creation of any Encumbrance upon any of the properties or
assets of the Company or (C) conflict with or result in any breach of any of the terms, conditions or provisions of, or constitute
(with due notice or lapse of time, or both) a default or give rise to any right of termination, cancellation or acceleration under,
or result in the creation of any Encumbrance upon any of the material properties or assets of the Company under any Contract.

 

4.03.         No
Consent or Approval Required. No consent, approval or authorization of, or declaration to or filing with (including pursuant
to any federal or state securities Laws), any Person is required for the valid authorization, execution and delivery by the Company
of any Document to which it is a party or for its consummation of the transactions contemplated thereby, or for the valid authorization,
issuance and delivery of the Series B Units, other than those consents, approvals, authorizations, declarations or filings which
have been obtained or made, as the case may be.

 

4.04.         Authorization
of Series B Units. As of the Closing Date, (i) the authorization, issuance and delivery of the Series B Units have been duly
authorized by all requisite limited liability company and member action on the part of the Company and its members; and (ii) the
Series B Units are validly issued and outstanding pursuant to the LLC Agreement, with no personal liability attaching to the ownership
thereof and, except as otherwise expressly provided by the LLC Agreement, not subject to any preemptive rights, rights of first
refusal or other similar rights of the members of the Company or any other Person.

 

4.05.         Registration
Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of any Series B Units
or any other securities (including debt securities) or equity interests of the Company.

 

ARTICLE V.

Representations and Warranties of the Investor

 

The Investor represents
and warrants to Development and the Company as of the date hereof as follows:

 

5.01.         Authorization
of the Documents; No Conflicts.

 

(a)          The
Investor has all requisite power and authority to execute, deliver and perform its obligations under the Documents to which it
is a party and to consummate the transactions contemplated to be performed by the Investor thereby. The execution, delivery and
performance by the Investor of the Documents to which it is a party have been duly authorized by all requisite limited liability
company and member action of the Investor and its members, and each Document to which it is a party constitutes a valid and binding
obligation of the Investor, enforceable against the Investor in accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditor’s rights
and to general equitable principles.

 

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(b)          The
Investor’s execution, delivery and performance of the Documents to which it is a party, its consummation of the transactions
contemplated thereby and its compliance with the provisions thereof will not (A) violate any provision of any Law applicable to
the Investor or any of its properties or assets or (B) conflict with or result in any breach of any of the terms, conditions or
provisions of, or constitute (with due notice or lapse of time, or both) a default or give rise to any right of termination, cancellation
or acceleration under the constituent agreements of the Investor, or result in the creation of any Encumbrance upon any of the
properties or assets of the Investor.

 

5.02.         Brokers
and Finders. No Person acting on behalf or under the authority of the Investor is or will be entitled to any broker’s,
finder’s, or similar fee or commission from Development in connection with the transactions contemplated hereby by this Agreement
or the other Documents.

 

ARTICLE VI.

Closing Deliverables

 

6.01.         Development’s
Closing Deliverables.

 

At the Closing, Development
shall deliver to the Company the following:

 

(a)          the
LLC Agreement executed by Development;

 

(b)          an
amended and restated Lease executed by Project LLC and Shelby Realty, Inc., as landlord, in form satisfactory to the Investor;

 

(c)          evidence
satisfactory to the Investor that all original promissory notes signed by Project LLC in connection with the Lease, and all amendments
and extensions thereto, have been satisfied and paid in full without liability to Project LLC prior to the Closing;

 

(d)          an
assignment executed by Development and an assignment executed by Seller assigning all Project Assets owned by such entities, if
any, to Project LLC, on terms acceptable to the Investor;

 

(e)          an
executed EPC Agreement between Project LLC and Auspark LLC, and an estoppel certificate from Auspark LLC with respect to such EPC
Agreement, each in form satisfactory to the Investor;

 

(f)          execution
and delivery of the third amendment to a Power Purchase Agreement between Project LLC and National Grid as approved by the Rhode
Island Public Utility Commission (the “PPA Condition”), or waiver of such approval condition in the Investor’s
discretion, in which case the such approval will be obtained and delivered post-Closing;

 

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(g)          execution
and delivery of the final Interconnection Agreement between Project LLC and National Grid, including receipt of any regulatory
approvals as may be necessary from the Rhode Island Public Utility Commission (the “Interconnection Agreement Condition”),
or waiver of such condition in the Investor’s discretion, in which case such a final executed and approved Interconnection
Agreement will be obtained and delivered post-Closing;

 

(h)          copies
of biomass supply agreements between Project LLC and each of the counterparties as set forth on Schedule 6.01(h), on terms
acceptable to the Investor;

 

(i)          except
as otherwise agreed by the Investor, receipt of all permits necessary for the construction and operation of the Project, except
those permits which are not able to be issued until a stage in the Project after the Closing

 

(j)          written
evidence satisfactory to the Investor of the delivery of notices and copies of executed counterparty consents as set forth on Schedule
3.02, Schedule 3.10 and Schedule 3.11(d);

 

(k)          written
evidence satisfactory to the Investor documenting the Austep SpA Reimbursement Fee;

 

(l)          written
evidence satisfactory to the Investor documenting the Preparation Fee;

 

(m)          resignations
of all of the Affiliates of Development who are or ever were managers and officers of Project LLC and executed releases from each
of any claims against Project LLC;

 

(n)          certified
copies of (i) all Organizational Documents of Development and Project LLC and (ii) requisite board of directors, shareholder and
member actions taken by Development to authorize the execution and delivery of the Documents to which it is a party and its consummation
of the transactions contemplated thereby, and such other documents and other instruments as the Investor or its counsel may reasonably
request.

 

6.02.         The
Company’s Closing Deliverables. At the Closing, the Company shall deliver the following to Development:

 

(a)          The
Closing Payment in accordance with Article I, subject to the Holdback; and

 

(b)          The
LLC Agreement executed by the Company.

 

6.03.         Investor’s
Closing Deliverables. At the Closing, the Investor shall deliver the following:

 

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(a)          The
LLC Agreement executed by the Investor;

 

(b)          Copies
of all requisite limited liability company actions taken by the Investor to authorize the Investor’s execution and delivery
of the Documents to which it is a party and its consummation of the transactions contemplated thereby, and such other documents
and other instruments as the Company or its counsel may reasonably request.

 

ARTICLE VII.

Covenants

 

7.01.         Tax
Characterization. Except as otherwise required by applicable Law, the parties will treat the transactions taking place on or
in connection with the Closing for United States federal and applicable state and local income Tax purposes as (i) a taxable purchase
of all of the assets of Project LLC from Seller for cash in the amount of $386,432 plus the amount of liabilities, if any of Project
LLC, immediately followed by (ii) a contribution of all of the assets of Project LLC, subject to any liabilities of Project LLC,
by the Investor to a new partnership (i.e., the Company) in exchange for 100% of the Series A Units and (iii) an undertaking
by Development to provide ongoing assistance to shepherd the Project through development and construction in exchange for 100%
of the Series B Units, which Series B Units will be treated as “profits interests” for United States federal and applicable
state and local income Tax purposes. Consequently, Development will have an opening capital account balance of $0, and the Investor
will have an opening capital account balance equal to the Closing Payment less the Holdback, if any, contributed by the Investor
to the Company at the Closing, to fund the payment of such amount to Development pursuant to this Agreement.

 

7.02.         Insurance.
The Company shall maintain with financially sound and reputable insurers such insurance as is reasonably satisfactory to the Investor
to such extent and against such hazards and liabilities, as is reasonably satisfactory to the Investor. The Company shall at all
times ensure that the LLC Agreement shall provide for indemnification of the Company’s current and former directors/managers
to the fullest extent permitted by applicable Law.

 

7.03.         Public
Announcements. Except as required by applicable Law, none of the parties hereto shall make any public disclosure regarding
the transactions contemplated by this Agreement and the other Documents without the prior consent of the Investor as to both the
form and content of such announcement. Where disclosure is required by applicable Law, the disclosing party will use its good faith
efforts to advise the Investor and to obtain its consent prior to making the disclosure.

 

7.04.         Confidentiality.
Each of the parties hereto hereby agrees that the information regarding a party to this Agreement that was obtained by the other
party to this Agreement during the negotiation and execution of this Agreement or the other Documents, or the effectuation of the
transactions contemplated hereby and thereby, shall be held in confidence by such other party, and such other party shall not make
any disclosure of any such information unless (i) the release of such information is ordered pursuant to a subpoena or other order
from a court or government body of competent jurisdiction or (ii) such information has been made generally available to the public
other than by disclosure in violation of this Agreement or any applicable Law or other restriction. Each party agrees that it shall,
upon learning that disclosure of such information is sought in or by a court or governmental body of competent jurisdiction or
through other means, give prompt notice to the other party and allow the other party, at its expense, to undertake appropriate
action to prevent disclosure of, or to obtain a protective order for, the information.

 

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7.05.         Transfer
Taxes. Development shall be responsible for and pay, or reimburse the Company and the Investor on demand for, all applicable
excise, sales (including any bulk sales), transfer, real estate transfer, documentary, filing and other similar Taxes that may
be imposed upon, or payable or collectible or incurred in connection with, the transactions contemplated by this Agreement and
the other Documents, whether levied on the Investor, the Company, Project LLC or any of their respective Affiliates. The Company
shall be responsible for preparing and timely filing any Tax returns required by applicable Law with respect to any such Taxes.

 

7.06.         Development
Release. Development and its past and present parent companies, subsidiaries, affiliates, divisions, predecessors, successors,
assignees, agents, partners, members, representatives, officers, directors, managers, employees, consultants, licensees, sublicensees,
shareholders, insurers, assigns, and their attorneys, and all persons acting by, through, under or in concert with them or any
of them, other than the Investor, the Company or Project LLC (all collectively referred to as the “Releasors”),
(i) do hereby release and forever discharge the Investor, the Company and Project LLC and each of their respective past and present
parent companies, subsidiaries, Affiliates, divisions, predecessors, successors, assignees, agents, partners, members, representatives,
officers, directors, managers, employees, consultants, licensees, sublicensees, shareholders, insurers, assigns, past and present,
and their attorneys, and all persons acting by, through, under or in concert with them or any of them, other than Development (all
collectively referred to as the “Releasees”), of and from any and all claims, causes of action, suits,
debts, liens, contracts, judgments, agreements, promises, infringements, liabilities, claims, demands, damages, losses, costs,
or expenses of any nature whatsoever, known or unknown, fixed or contingent, which the Releasors or any of them now has or may
hereafter have against the Releasees, or any of them, including any of the respective assets of the Releasees, including without
limitation the Project and the limited liability company interests of Project LLC, relating to or by reason of the Prior Purchase
Agreement, and the failure of Development to perform any obligations under the Prior Purchase Agreement, or the failure of Project
LLC or the Project to perform any of its obligations or obligations imputed to it under the Prior Purchase Agreement, including
to pay the Development Fee, the extension fee, the Seller Participation Fee, the Management Fee (each as defined in the Prior Purchase
Agreement) or the failure to disclose or deliver financial information about the Project or Project LLC, and (ii) do hereby waive
any rights to impose liens, remedies or liabilities on or against any of the Releasees or their assets due to or arising out of
Development’s failure to perform its obligations under the Prior Purchase Agreement or the Project LLC Purchase Agreement.

 

7.07.         Project
LLC Liabilities. Development shall solely be responsible for, and shall have paid when due, and shall timely pay, when due,
all Project LLC Pre-Closing Liabilities and shall indemnify the Company and the Investor pursuant to and in accordance with Article
VIII for all Project LLC Pre-Closing Liabilities.

 

7.08.         Original
Promissory Notes. Within three (3) Business Days following the Closing Date, Development shall deliver the original promissory
notes referenced in Section 6.01(c), to the extent they exist, to the Investor’s counsel at the following address:
Sullivan & Worcester LLP, One Post Office Square, Boston, MA 02109, Attn: Benjamin J. Armour.

 

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7.09.         Further
Assurances. Following the Closing, each of the parties hereto shall execute and deliver such additional documents, instruments,
conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give
effect to the transactions contemplated by this Agreement and the other Documents. Development agrees to use its reasonable best
efforts to assist the Company and Project LLC in obtaining the Outstanding Permits as promptly as practicable following the Closing.

 

ARTICLE VIII.

Indemnification

 

8.01.         Survival
of Representations, Warranties, Agreements and Covenants, Etc. Notwithstanding any investigation made at any time by or on
behalf of any party hereto, all representations and warranties contained in this Agreement or in any other Document will survive
the Closing until the twenty-four (24) month anniversary of the Closing Date; provided, however, that the representations and warranties
contained in any Company Fundamental Representation or any Development Fundamental Representation (collectively, the “Fundamental
Representations”) shall survive until the expiration of the applicable statute of limitations (including applicable
extensions thereof). The covenants and other agreements of the parties contained in this Agreement will survive the Closing until
they are otherwise terminated, whether by their terms or as a matter of Law.

 

8.02.         Indemnification.

 

(a)          Development
(the “Indemnitor”) will indemnify, defend and hold harmless the Investor and its Affiliates (including,
without limitation, the Company and Project LLC) and their respective partners, members, officers, directors, managers, employees,
agents and representatives other than Development (collectively, the “Indemnified Parties”) against all
Losses actually suffered by any Indemnified Party, and none of the Indemnified Parties will be liable to the Company, Project LLC
or any equity holder of the Company for or with respect to any and all Losses, together with all costs and expenses (including
legal and accounting fees and expenses) related thereto or incurred in enforcing this Article VIII, arising from or related
to (x) the breach of any of the representations or warranties of Development to the Investor contained in this Agreement or any
other Document, or (y) the breach of any covenant or agreement of Development contained in this Agreement or any other Document.

 

(b)          An
Indemnified Party shall promptly notify the Indemnitor of any event or occurrence that may give rise to Losses for which such Indemnified
Party (a “Claimant”) may seek recovery from the Indemnitor pursuant to this ‎Article
VIII; provided that, if such event or occurrence is a Claim or Proceeding by a third party (a “Third Party
Claim”), a Claimant shall give such notice thereof in writing as soon as practicable, but in no event later than
twenty (20) days following the receipt of notice of the commencement of any action or Proceeding. Each such notice shall describe
in reasonable detail the basis of the claim for indemnification and, to the extent received, deliver copies of all related notices
and documents (including court filings) concerning such claim. The failure to give notice as required by this Section in respect
of a Third Party Claim in a timely fashion shall not result in a waiver of any right hereunder except to the extent that the ability
of the Indemnitor to defend against such Third Party Claim is actually prejudiced by the failure of the Claimant to give notice
in a timely fashion as required by this Section.

 

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(c)          The
Indemnitor shall be entitled (but not obligated) to assume the defense or settlement of any Third Party Claim. If the Indemnitor
fails to elect in writing within thirty (30) Business Days (or such earlier time as is appropriate: (i) if the failure to make
such election would actually prejudice the defense of such Third Party Claim, (ii) as is necessary to preserve any of the Indemnified
Parties’ rights with respect to such Third Party Claim or (iii) as is otherwise required in accordance with applicable Law)
of the notification referred to above to assume the defense or settlement of such Third Party Claim, or if the Indemnitor makes
such election but fails to deliver a written acknowledgement of the Indemnitor’s liability for such Third Party Claim within
thirty (30) Business Days of the notification referred to above, the Indemnitor shall have no further right to assume the defense
or settlement of such Third Party Claim and the Claimant may engage counsel at the reasonable expense of the Indemnitor to defend,
settle or otherwise dispose of such Third Party Claim, which counsel shall be reasonably satisfactory to the Indemnitor; provided
that the Claimant shall not settle or compromise any such Third Party Claim without the consent or agreement of the Indemnitor
(which consent will not be unreasonably withheld or delayed).

 

(d)          In
cases where the Indemnitor has assumed the defense or settlement of a Third Party Claim, the Indemnitor shall be entitled to assume
the defense or settlement thereof at its expense with counsel reasonably acceptable to Claimant; provided that: (1) the
Claimant (and its counsel) shall be entitled to continue to participate at its own cost (except as provided in Section 8.02(e)
below) in any such Third Party Claim or in any negotiations or proceedings to settle or otherwise eliminate such Third Party Claim;
(2) the Indemnitor shall not be entitled to settle or compromise any such Third Party Claim without the consent or agreement of
the Claimant unless (x) the terms of such settlement provide for no relief other than the payment of monetary damages and (y) the
Claimant will have no liability with respect to payment of such monetary damages; and (3) after written notice by the Indemnitor
to the Claimant of its election to assume control of the defense of any Third Party Claim, the Indemnitor shall not be liable to
such Claimant hereunder for any attorneys’ fees and disbursements and disbursements subsequently incurred by such Claimant
in connection therewith (except as provided below).

 

(e)          Notwithstanding
anything to the contrary in this Section 8.02, the Indemnitor shall continue to pay the reasonable attorneys’ fees
and disbursements and other costs each Claimant may incur relating to such Claimant’s participation in any Third Party Claim
(whether or not the Indemnitor shall have assumed the defense of such Third Party Claim) to the extent such participation relates
to a Claim or defense as to which the Indemnitor or its counsel may have a conflict of interest; provided that the Indemnitor
shall be responsible for the reasonable attorneys’ fees and expenses of no more than one (1) law firm engaged by the Claimant.

 

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8.03.         Limits
on Indemnification. Notwithstanding anything to the contrary contained in this Agreement, the maximum amount of indemnifiable
Losses which may be recovered from the Indemnitor pursuant to ‎Section
8.02(a)(x) (except with respect to the Fundamental Representations) shall be an amount equal to $[●]1
(the “Cap”); provided, however, that the Indemnitor shall not have any obligation to provide an indemnity to
any Indemnified Party until the aggregate amount of all indemnifiable Losses for which the Indemnitor would, but for this proviso,
be liable exceeds $[●]2, at which time the Indemnitor
shall be liable to indemnify the Indemnified Parties for the entire amount of such Losses; provided further, however, that the
preceding limitations of liability in this Section 8.03 shall not apply to any Losses or other claims to the extent resulting
from any Project LLC Pre-Closing Liability, fraud, gross negligence, or willful misrepresentation or misconduct.

 

8.04.         Set-Off
Right. Upon written notice to Development specifying in reasonable detail the basis therefor, the Investor may cause the Company
to set off and pay to an Indemnified Party, any amount to which such Indemnified Party claims to be entitled from Development,
and including any amounts that may be owed under this Article VIII or otherwise, against amounts otherwise payable as distributions
or guaranteed payments to Development or any of its Affiliates under the LLC Agreement (including, without limitation, the Development
Fee, as defined in the LLC Agreement) by virtue of the ownership by Development or any of its Affiliates of Series A Units or Series
B Units or otherwise. The exercise of such right of set-off by the Investor in good faith, whether or not ultimately determined
to be justified, will not constitute a default under this Agreement or the LLC Agreement, regardless of whether Development disputes
such set-off claim. Neither the exercise of, nor the failure to exercise, such right of set-off will constitute an election of
remedies or limit the Investor in any manner in the enforcement of any other remedies that may be available to it.

 

ARTICLE IX.

Miscellaneous

 

9.01.         Assignment.
This Agreement shall bind and inure to the benefit of the parties and each of their respective successors and permitted assigns.
Except as set forth herein, none of the Company, Development and the Investor may assign either this Agreement or any of its rights,
interests, or obligations hereunder without the consent of the other parties, except that the Investor may assign this Agreement
to any Affiliate of the Investor without consent.

 

9.02.         Entire
Agreement; Severability. This Agreement, the Project LLC Purchase Agreement and the LLC Agreement contain the entire understanding
of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings among the parties
with respect to such subject matter, including, without limitation, the Term Sheet dated March [●], 2015 among Development,
Project LLC and Entropy Investment Management LLC. It is the desire and intent of the parties that the provisions of this Agreement
be enforced to the fullest extent permissible under the law and public policies applied in each jurisdiction in which enforcement
is sought. Accordingly, in the event that any provision of this Agreement would be held in any jurisdiction to be invalid, prohibited
or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding
the foregoing, if such provision could be more narrowly drawn so as not be invalid, prohibited or unenforceable in such jurisdiction,
it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting
the validity or enforceability of such provision in any other jurisdiction.

 

 

1 15% of the sum of the Closing Payment plus $386,432.

2 5% of the sum of the Closing Payment plus $386,432.

 

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9.03.         Notices.
All notices, claims, certificates, requests, demands and other communications hereunder shall be in writing and shall be deemed
to have been duly given if personally delivered or if sent by nationally-recognized overnight courier, by telecopy, or by registered
or certified mail, return receipt requested and postage prepaid, addressed as follows:

 

if to the Company or the Investor:

 

c/o York Capital Management

767 Fifth Avenue, 17th Floor, New York, New York 10153

Tel 212-710-6567

Fax 646-514-9321

Attention: General Counsel

Email: mmauro@yorkcapital.com

 

if to Development:

 

Blue Sphere Corporation

301 McCullough Drive, 4th Floor

Charlotte, NC 28262

Attn: Shlomi Palas

 

with copies to:

 

Orit Marom-Albeck, Adv.

4 Berkowitz St. Level 8 (Museum Tower)

Tel-Aviv , Israel, 6423806

Tel: +972-3-7778333

Fax: +972-3-7778444

e-mail: oritma@shibolet.com

 

or to such other address
as any party may have furnished to the other parties in writing in accordance herewith. Any such notice or communication shall
be deemed to have been received (a) in the case of personal delivery, on the date of such delivery if a Business Day or, if not
a Business Day, the next succeeding Business Day, (b) in the case of nationally-recognized overnight courier, on the next Business
Day after the date when sent, (c) in the case of telecopy transmission, when received if a Business Day or, if not a Business Day,
the next succeeding Business Day, and (d) in the case of mailing, on the third Business Day following that on which the piece of
mail containing such communication is posted.

 

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9.04.         Amendments;
Waivers. This Agreement may not be amended except by an instrument in writing signed by the parties hereto. The waiver by any
party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach.
No failure to exercise or delay in exercising any right hereunder, in whole or in part, shall operate as a waiver thereof.

 

9.05.         Counterparts.
This Agreement may be executed in any number of original, electronic or facsimile counterparts, and each such counterpart shall
be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement.

 

9.06.         Headings.
The section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement.

 

9.07.         Governing
Law. This Agreement and all matters arising out of or relating to this Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without giving effect to any law or rule that would cause the laws of any jurisdiction
other than the State of New York to be applied.

 

9.08.         Arbitration.
Any controversy or claim by or between the parties related in any way to this Agreement shall be settled by binding arbitration
administered by the American Arbitration Association (the “AAA”) in accordance with its Commercial Arbitration
Rules; provided that nothing herein shall require arbitration of any claim or charge which, by law, cannot be the subject of a
compulsory arbitration agreement.  Any arbitration proceeding brought under this Agreement shall be conducted in New York
City by a single arbitrator appointed by agreement of the parties within thirty (30) days of receipt by respondent of the demand
for arbitration, or in default thereof by the AAA. Each of the Investor, on behalf of itself and its Affiliates, and the Company
and Development, on behalf of themselves and their respective Permitted Transferees, Related Parties Affiliates and Subsidiaries,
agree to be bound by this arbitration clause provided that they have either (i) signed this contract or a contract that incorporates
this contract by reference or (ii) signed any other agreement to be bound by or cause any of their respective Permitted Transferees,
Related Parties, Affiliates or Subsidiaries to be bound by this arbitration clause.  Each such party agrees that it may be
joined as an additional party to an arbitration involving other parties under any such agreement.  The arbitrator(s) in the
first-filed of such proceeding shall be the arbitrator(s) for the consolidated proceeding. The arbitrator, in rendering an award
in any arbitration conducted pursuant to this provision, shall issue a reasoned award stating the findings of fact and conclusions
of law on which it is based, and the arbitrator shall be required to follow the law of the state designated by the parties herein.
Any judgment or enforcement of any award, including an award providing for interim or permanent injunctive relief, rendered by
the arbitrator may be entered, enforced or appealed from in any court having jurisdiction thereof.  Any arbitration proceedings,
decision or award rendered hereunder, and the validity, effect and interpretation of this arbitration provision, shall be governed
by the Federal Arbitration Act, 9 U.S.C.§ 1 et seq. In any arbitration proceedings under this Agreement, each party shall
pay all of its, his or her own legal fees, including counsel fees, but AAA filing fees and arbitrator compensation shall be paid
pursuant to the AAA Commercial Arbitration Rules, unless otherwise provided by law for a prevailing party.  The parties agree
that, notwithstanding the foregoing, prior to the appointment of the arbitrator, nothing herein shall prevent any party from seeking
preliminary or temporary injunctive relief against any other party in the federal or state courts of New York, County of New York. 
For the avoidance of doubt, any actions for permanent relief or monetary damages shall be settled by arbitration.

 

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9.09.         Specific
Performance. The parties agree that irreparable damage would occur and that the non-breaching party might not have an adequate
remedy at law for money damages in the event that the provisions contained in this Agreement were not performed in accordance with
its specific terms or were otherwise breached by the other party. It is accordingly agreed that the non-breaching party shall be
entitled to specific enforcement of the terms hereof in addition to any other remedy it may be entitled to, without the requirement
of posting a bond or other security.

 

ARTICLE X.

Definitions; Interpretation

 

10.01.         Definitions.

 

Capitalized terms used
and not otherwise defined in this Agreement have the meaning ascribed to them below or in the other locations of this Agreement
specified below:

 

“Affiliate”
means, with respect to any Person, any (a) director, officer, limited or general partner, member or stockholder holding 5% or more
of the outstanding capital stock or other equity interests of such Person, (b) spouse, parent, sibling or descendant of such Person
(or a spouse, parent, sibling or descendant of a Person specified in clause (i) above relating to such Person) and (c) other Person
that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with,
such Person. The term “control” includes, without limitation, the possession, directly or indirectly, of the power
to direct the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Business Day”
means any day except a Saturday, Sunday or a legal holiday or other day on which banking institutions in New York, New York are
authorized or obligated by Law, regulation or executive order to close.

 

“Claim”
means any claim, demand, assessment, judgment, order, decree, action, cause of action, litigation, suit, investigation or other
Proceeding.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Company Fundamental
Representations” means Section 4.01 (Organization), Section 4.02 (Authorization of the Documents; No Conflicts),
and Section 4.04 (Authorization of Series B Units).

 

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“Confidential
Information” means any data or information concerning the Project LLC or its business without regard to form, regarding
(for example and including) (a) proprietary software; (b) product and services pricing and other details, marketing materials and
plans, licenses, prices, costs, contracts, suppliers, customers, and customer lists; (c) the identity, skills, knowledge and compensation
of employees, contractors, and consultants; (e) specialized training; (d) such of the following as are not now in the public domain:
discoveries, developments, trade secrets, processes, formulas, data, lists, and all other works of authorship, mask works, ideas,
concepts, know-how, designs, and techniques, whether or not any of the foregoing is or are patentable, copyrightable, or registrable
under any intellectual property Laws in the United States or any other country; and (f) all other data and information in any way
relating to the business of Project LLC that are customarily considered confidential information.

 

“Development Disclosure
Schedules” means the schedules delivered by Development to the Investor on or prior to the date hereof, setting forth
facts, circumstances and events the disclosure of which, or the inclusion therein, is required or permitted pursuant to any or
all of Development’s covenants, representations and warranties contained in this Agreement.

 

“Development Fundamental
Representations” means Section 3.01 (Organization), Section 3.02 (Authorization of the Documents; No Conflicts),
Section 3.04 (Capitalization of Project LLC), Section 3.08 (Assets, Properties and Rights; Title), Section 3.13
(Tax Matters) and Section 3.15 (Brokers).

 

“Documents”
means this Agreement, the LLC Agreement, the Project LLC Purchase Agreement and all other documents, agreements and instruments
executed and delivered in connection herewith, in each case, as amended, modified or supplemented from time to time.

 

“Employee Benefit
Plan” means any “employee benefit plan” (as such term is defined in §3(3) of ERISA) and any other employee
benefit plan, program or arrangement, including any bonus or other incentive plan, plan for deferred compensation, profit-sharing,
options to acquire stock, stock appreciation rights, stock purchases, or other equity-based plans or arrangements, employee health,
life or other welfare benefit plan, severance arrangement or policy, any employment or consulting agreement, any change in control
agreement or arrangement, any Tax gross-up agreement or arrangement, any plan, arrangement, agreement, program or commitment to
provide for insurance coverage (including any self-insured arrangements), disability benefits, supplemental unemployment benefits,
vacation benefits, retirement benefits, leave of absence, or life or accident benefits (including any voluntary employee benefits
association (as defined in §501(c)(9) of the Code) providing for the same or other benefits).

 

“Environmental
and Safety Requirements” means all Laws and contractual obligations concerning public health and safety, worker health
and safety, and pollution or protection of the environment, including, without limitation, all those relating to the presence,
use, production, generation, handling, transportation, treatment, storage, disposal, distribution, labeling, testing, processing,
discharge, Release, threatened Release, control, investigation or cleanup of any Hazardous Materials.

 

“Environmental
Attributes” means any environmental offsets or allowances, renewable production or investment tax credits, or environmental
attributes, value or credits, or renewable energy certificates, green tags, tradable renewable certificates or portfolio energy
credits or similar intangible property rights of any kind or nature, earned by or attributable to (a) the Project, or (b) the Project
LLC, including those resulting from or associated with the Federal Clean Air Act (including, but not limited to, Title IV of the
Clean Air Act Amendments of 1990), renewable energy certificates (or associated GIS Certificates), or any other state or federal
acts, Laws or regulations that provide offsets, allowances or credits related to energy or emissions.

 

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“Environmental
Liens” means a Lien in favor of a Governmental Authority or other Person (a) for any Liability under an Environmental
and Safety Requirement or (b) for Losses arising from or costs incurred by such Governmental Authority or other Person in response
to a Release or threatened Release of Hazardous Materials.

 

“EPC Agreement”
means the executed Agreement for the Design, Construction and Delivery of a Biogas Plant between Auspark LLC and Orbit Energy Rhode
Island, LLC, to be delivered prior to the Closing pursuant to Section 6.01(e) with respect to the Project.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“FERC”
means the Federal Regulatory Energy Commission.

 

“Governmental
Authority” means any federal, state, municipal, foreign or other government, governmental department, commission, board,
bureau, agency or instrumentality, or any private or public court or tribunal.

 

“Hazardous Material”
means any (a) substance, material, product or waste that is defined, characterized or otherwise considered to be toxic, hazardous,
dangerous, a pollutant, a contaminant, or words of similar import, in or regulated pursuant to any Environmental and Safety Requirement;
(b) petroleum or petroleum product, including crude oil or any fraction thereof; (c) natural gas, synthetic gas, or any mixture
thereof; or (d) polychlorinated biphenyl, asbestos, mold or mold spore, urea formaldehyde foam, or radon.

 

“Intellectual
Property” means (a) Patents, (b) Trademarks, (c) copyrights in any work of authorship, including registrations and applications
for registration, copyrights in computer software or programs, documentation (including without limitation design specifications,
schema specifications, functional specifications, test specifications, requirements specifications and user documentation), databases
and Internet website content, (d) industrial designs, including registrations and applications for registration, (e) data base
rights, (f) Internet domain names, and rights in e-mail addresses, (g) trade secrets, rights in Confidential Information and other
intellectual property rights, and (h) all Claims and rights to sue at law or in equity for any past or future infringement or other
impairment of any of the foregoing, including the right to receive all proceeds and damages therefrom, and all rights to obtain
renewals, continuations, divisions, or other extensions of legal protections pertaining thereto.

 

“Interconnection
Agreement” means that agreement for interconnection of and transmission of energy from the Project to be entered into
by National Grid and Project LLC.

 

“Knowledge”
means with respect to Development, the actual knowledge of Shlomi Palas, Gary Kuehl, Mark Radon, Efim Monosov, Schlomo Zakai and
Roy Amitzur, provided however, absent fraud, these individuals shall have no personal liability under this Agreement.

 

“Law”
means all provisions of laws (including common law), statutes, ordinances, rules, regulations, permits, certificates, orders or
judgments of any Governmental Authority.

 

    	27

    	 

    

 

“Lease”
has the meaning set forth in Section 3.16(a).

 

“Leased
Real Property” has the meaning set forth in Section 3.16(a).

 

“Liability”
means any liability or obligation of any nature (whether known or unknown, matured or unmatured, secured or unsecured, fixed or
contingent, accrued or unaccrued).

 

“Lien”
means any lien, encumbrance, mortgage, deed of trust, security interest, easement, pledge, assessment, lease, adverse claim, levy,
charge, transfer restriction, option or other restriction or third-party right.

 

“Loss”
means any action, cost, damage, disbursement, expense, liability, loss, deficiency, obligation, penalty or settlement of any kind
or nature, including but not limited to, interest or other carrying costs, penalties, reasonable legal, accounting and other professional
fees and expenses incurred in the investigation, collection, prosecution and defense of claims and amounts paid in settlement,
that may be imposed on or otherwise incurred or suffered by the specified Person, excluding any indirect, special, incidental,
consequential, punitive damages or lost profits, except to the extent such damages are recovered by third parties in connection
with Third Party Claims that are indemnified under this Agreement.

 

“Material Adverse
Event” means any material adverse event affecting the business, affairs, operations, assets, properties, Liabilities,
results of operations or condition (financial or otherwise) of the Project LLC or the Project.

 

“National Grid”
means the Narragansett Electric Company, d/b/a National Grid.

 

“Organizational
Documents” means, with respect to any Person, articles of incorporation, articles of organization, certificates of incorporation,
certificates of formation, by-laws, partnership agreements, memoranda of association, articles of association, limited liability
company agreements, joint venture agreements, instruments or documents, individually or collectively, pursuant to which such Person
is established or organized, and that govern the internal affairs of such Person or such documents as may be amended from time
to time.

 

“Patents”
means all patents, patent applications, including utility and design patents, statutory invention registration, including any divisions,
reissues, re-examinations, continuations, renewals and extensions thereof, and all inventions, including the right to file applications
and the priority right.

 

“Permits”
means licenses, permits, approvals, registrations and other authorizations issued by Governmental Authorities.

 

“Permitted Encumbrance”
means any (a) Encumbrances of mechanics or materialmen or other similar liens incurred in the ordinary course of business for sums
not yet due or, if due, the payment of which is being contested in good faith through appropriate proceedings so long as such proceedings
shall not interfere with the development, construction, operation or maintenance of the Project, or a bond or other security has
been posted or provided in such manner and amount as to assure that any amounts determined to be due will be promptly paid in full
when such contest is determined; (b) zoning, building codes and other land use laws regulating the use or occupancy of real property
or the activities conducted thereon which are imposed by any Governmental Authority having jurisdiction over such real property;
or (c) easements, covenants, conditions, restrictions and other similar matters affecting real property and listed on Schedule
C.

 

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“Permitted Transferee”
has the meaning specified in the LLC Agreement.

 

“Person”
shall be construed in the broadest sense and means and includes any natural person, a partnership, a corporation, an association,
a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated organization and any other entity
or Governmental Authority.

 

“Power Purchase
Agreement” means that certain Power Purchase Agreement between National Grid and Project LLC, dated as of May 26, 2011
with respect to the Project, as amended, as presented by Development to the Investor prior to the date of this Agreement.

 

“Power Purchaser”
means National Grid.

 

“Project Intellectual
Property” means, to the extent and only to the extent owned or validly licensed to Project LLC and used exclusively for
the development, permitting, acquisition, installation, ownership, marketing, sale, financing and planned operation of the Project:
all Patents and industrial designs (including any continuations, continuations-in-part, renewals, reissues and applications for
any of the foregoing); copyrights (including any registrations and applications for any of the foregoing); Trademarks, mask works,
service marks, service names, logos, internet domain names (together with all goodwill, registrations and applications related
to the foregoing); technology, know-how, processes, trade secrets, inventions, proprietary rights, proprietary data, formulae,
research and development data, databases, computer software programs and other intellectual property as provided by applicable
Law or any of the Contracts, and any registrations or applications for the same and all goodwill associated therewith.

 

“Project LLC Pre-Closing
Liabilities” means, with respect to the Project LLC, (a) any Liabilities, including, without limitation, any Claim by
a third party to the extent accrued or incurred or otherwise arising or occurring prior to the Closing, and (b) any Liabilities
arising out of or occurring as a result of the Prior Purchase Agreement or Development’s failure to perform its obligations
under the Project LLC Purchase Agreement.

 

“Project Miscellaneous
Assets” means, with respect to the Project, the right of Development or Project LLC to any and all (a) refundable deposits
in connection with any utility service exclusively relating to the development, permitting, acquisition, installation, ownership,
marketing, sale, financing and planned operation of the Project; (b) all videotapes, films, brochures, marketing packages and other
advertising and promotional materials used exclusively in connection with the Project; (c) the work product and goodwill exclusively
relating to the development, permitting, acquisition, installation, ownership, marketing, sale, financing and planned operation
of the Project, including all studies and reports relating to the Project or the technology contemplated to be used therein; (d)
all proposals, estimates, projections and plans prepared by architects or engineers relating exclusively to the development, permitting,
acquisition, installation, ownership, marketing, sale, financing and planned operation of the Project; (e) all rights, title and
interests in and to all Environmental Attributes related to, or to be generated or produced by, the Project after the Closing Date,
and all proceeds and benefits thereof and therefrom; and (f) all other books and records relating to the Project and Project LLC.

 

    	29

    	 

    

 

“Release”
means any spilling, leaking, pouring, emitting, emptying, discharging, injecting, escaping, migrating, seeping, leaching, dumping
or disposing of any substance, material, product or waste (including the abandonment or discarding of a barrel, container or any
other receptacle containing a substance, material, product or waste) into or through the environment.

 

“Releasees”
has the meaning set forth in Section 7.06.

 

“Releasors”
has the meaning set forth in Section 7.06.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Subsidiary”
means, with respect to any Person, any currently existing or future corporation or other entity (a) more than fifty percent (50%)
of the voting stock in which is owned or controlled, directly or indirectly, by such Person or by any Subsidiary of such Person
or (b) which is otherwise controlled, directly or indirectly, by such Person or by any Subsidiary of such Person or otherwise.

 

“Tax” or
“Taxes” means, with respect to any Person, (a) all income taxes (including any tax on or based upon net income,
or gross income, or income as specially defined, or earnings, or profits, or selected items of income, earnings or profits) and
all gross receipts, sales, use, ad valorem, transfer, franchise, license, withholding, payroll, employment, excise, severance,
stamp, occupation, premium, property or windfall profits taxes, alternative or add-on minimum taxes, customs duties or other taxes,
fees, assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional
amounts imposed by any taxing authority (domestic or foreign) on such Person and (b) any Liability for the payment of any amount
of the type described in the immediately preceding clause (a) as a result of (1) being a “transferee” (within the meaning
of Section 6901 of the Code or any other applicable Law) of another Person, (2) being a member of an affiliated, combined, consolidated
or unitary group or (3) any Contract.

 

“Trademarks”
means all registered or unregistered trademarks, trade names, business names, corporate names, brand names, brands, designs, trade
dress, logos, slogans, identifying indicia and service marks, including registrations and applications for registration thereof.

 

“Transmission
Provider” means National Grid.

 

    	30

    	 

    

 

10.02.         Index
of Certain Other Definitions. The following capitalized terms used in this Agreement have the meanings located in the corresponding
Section referred to below:

 

	Term	Section
	AAA	Section 9.08
	Agreement	Preamble
	Austep SpA Reimbursement Fee	Recitals
	Cap	‎Section 8.03
	Claimant	‎Section 8.02(b)
	Closing	Article II 
	Closing Date	Article II 
	Closing Development Fee	Recitals
	Closing Fee	Recitals
	Closing Payment	Recitals
	Company	Preamble
	Consideration	Section 1.01
	Contract	‎Section 3.10
	Development	Preamble
	Encumbrances	‎Section 3.08(d)
	Environmental Documentation	Section 3.11(f)
	Fundamental Representations	‎Section 8.01
	Holdback	Section 1.02
	Holdback Amount	Recitals
	Indemnified Parties	‎Section 8.02(a)
	Indemnitor	‎Section 8.02(a)
	Interconnection Agreement Condition	Section 6.01(g)
	Investor	Preamble
	LLC Agreement	Recitals
	Outstanding Permits	Section 3.11(b)
	PPA Condition	Section 6.01(f)
	Preparation Fee	Recitals
	Prior Purchase Agreement	Recitals
	Proceedings	‎Section 3.12
	Project	Recitals
	Project Assets	Section 3.08
	Project LLC	Recitals
	Project LLC Purchase Agreement	Recitals
	Related Party	‎Section 3.14
	Series A Units	Recitals
	Series B Units	Recitals
	Seller	Recitals
	Third Party Claim	‎Section 8.02(b)

 

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10.03.         Rules
of Construction. The use in this Agreement of the term “including” means “including, without limitation.”
The words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement
as a whole, including the schedules and exhibits, as the same may from time to time be amended, modified, supplemented or restated,
and not to any particular section, subsection, paragraph, subparagraph or clause contained in this Agreement. All references to
sections, schedules and exhibits mean the sections of this Agreement and the schedules and exhibits attached to this Agreement,
except where otherwise stated. The title of and the section and paragraph headings in this Agreement are for convenience of reference
only and will not govern or affect the interpretation of any of the terms or provisions of this Agreement. The use herein of the
masculine, feminine or neuter forms will also denote the other forms, as in each case the context may require or permit. Where
specific language is used to clarify by example a general statement contained herein, such specific language will not be deemed
to modify, limit or restrict in any manner the construction of the general statement to which it relates. The language used in
this Agreement has been chosen by the parties to express their mutual intent, and no rule of strict construction will be applied
against any party. Unless expressly provided otherwise, the measure of a period of one month or year for purposes of this Agreement
will be that date of the following month or year corresponding to the starting date.

 

[Signature pages follow]

 

    	32

    	 

    

 

IN WITNESS WHEREOF, the parties have executed
and delivered this Development and Indemnification Agreement on the date first above written.

 

RHODE ISLAND Energy Partners
LLC

a Delaware limited liability company

 

By: York Renewable Energy Partners LLC, its

Sole Member

 

	By:	 	 
	Name:	 	 
	
        Title:
	 	 

 

[Signature Page: Development and Indemnification
Agreement]

 

    	 

    	 

    

 

York Renewable Energy Partners
LLC

a Delaware limited liability company

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

[Signature Page: Development and Indemnification
Agreement]

 

    	 

    	 

    

 

BLUE SPHERE CORPORATION

a Nevada corporation

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

[Signature Page: Development and Indemnification
Agreement]

 

    	 

    	 

    

 

Exhibit A

Project LLC Purchase Agreement

 

    	 

    	 

    

 

Exhibit B

Form of LLC AgreementExhibit 10.3

 

S&W DRAFT 

March 18, 2015

 

AMENDED AND RESTATED

 

LIMITED LIABILITY COMPANY AGREEMENT OF

 

RHODE ISLAND ENERGY PARTNERS, LLC

 

(A DELAWARE LIMITED LIABILITY COMPANY)

 

Dated as of April 8, 2015

 

    	 

    	 

    

 

Table of
Contents 

 

	 	 	 	Page
	 	 	 	 
	ARTICLE I	DEFINITIONS	2
	 	 	 	 
	SECTION 1.01.	Definitions	2
	 	 	 
	SECTION 1.02.	Interpretation	11
	 	 	 	 
	ARTICLE II	INTRODUCTORY PROVISIONS	11
	 	 	 	 
	SECTION 2.01.	Name; Formation; Continuation; Filings	11
	 	 	 
	SECTION 2.02.	Offices; Registered Office and Agent.	11
	 	 	 
	SECTION 2.03.	Duration	11
	 	 	 
	SECTION 2.04.	Limited Purpose and Authority.	12
	 	 	 
	SECTION 2.05.	No State Law Partnership; No Concerted Action.	12
	 	 	 
	SECTION 2.06.	Lack of Authority of Members	12
	 	 	 
	SECTION 2.07.	No Personal Liability of Members	12
	 	 	 	 
	ARTICLE III	MEMBERSHIP UNITS; ADDITIONAL MEMBERS	12
	 	 	 	 
	SECTION 3.01.	Membership Units.	12
	 	 	 
	SECTION 3.02.	Additional Members	13
	 	 	 
	ARTICLE IV	CAPITAL CONTRIBUTIONS	13
	 	 	 
	SECTION 4.01.	Capital Contributions	13
	 	 	 
	SECTION 4.02.	Additional Capital Contributions.	14
	 	 	 
	SECTION 4.03.	Maintenance of Capital Accounts; No Right of Withdrawal; No Interest.	14
	 	 	 
	SECTION 4.04.	Advances and Loans.	15
	 	 	 	 
	ARTICLE V	BOOKS AND RECORDS	15
	 	 	 	 
	SECTION 5.01.	Books and Records	15
	 	 	 
	SECTION 5.02.	Fiscal Year; Accounting Method	15
	 	 	 
	SECTION 5.03.	Bank Accounts	16
	 	 	 
	SECTION 5.04.	Company Information.	16
	 	 	 	 
	ARTICLE VI	FEES; DISTRIBUTIONS	17
	 	 	 	 
	SECTION 6.01.	Fees Payable to Development	17
	 	 	 
	SECTION 6.02.	Distributions Generally	17
	 	 	 
	SECTION 6.03.	Priority of Distributions Other than from Proceeds of a Liquidation Event.	17
	 	 	 
	SECTION 6.04.	Priority of Distributions upon a Liquidation Event	17

 

    	i

    	 

    

 

	SECTION 6.05.	Tax Distributions	18
	 	 	 
	SECTION 6.06.	Limitation on Distributions	19
	 	 	 
	SECTION 6.07.	Withheld Taxes	19
	 	 	 	 
	ARTICLE VII	MANAGEMENT	19
	 	 	 	 
	SECTION 7.01.	General.	19
	 	 	 
	SECTION 7.02.	The Board of Managers.	20
	 	 	 
	SECTION 7.03.	Officers.	22
	 	 	 
	SECTION 7.04.	Indemnification of Managers and Officers.	23
	 	 	 
	SECTION 7.05.	Matters Requiring Approval of the Board of Managers	23
	 	 	 
	SECTION 7.06.	Matters Requiring the Approval of the Members	25
	 	 	 
	SECTION 7.07.	Managers and Officers Insurance	26
	 	 	 
	SECTION 7.08.	Signing Authority.	26
	 	 	 
	SECTION 7.09.	Project Budgets.	26
	 	 	 	 
	ARTICLE VIII	TAX MATTERS	27
	 	 	 	 
	SECTION 8.01.	Partnership for Tax Purposes	27
	 	 	 
	SECTION 8.02.	Capital Accounts, Allocations and Other Tax Accounting Matters.	27
	 	 	 
	SECTION 8.03.	Tax Returns and Information.	29
	 	 	 
	SECTION 8.04.	Tax Matters Partner and Elections	29
	 	 	 
	SECTION 8.05.	Consistent Tax Treatment	30
	 	 	 	 
	ARTICLE IX	TRANSFER OF MEMBERSHIP UNITS; WITHDRAWALS	30
	 	 	 	 
	SECTION 9.01.	Restrictions Applicable to All Transfers by the Members.	30
	 	 	 
	SECTION 9.02.	Permitted Transfers.	32
	 	 	 
	SECTION 9.03.	Right of First Refusal.	33
	 	 	 
	SECTION 9.04.	Tag-Along Rights.	34
	 	 	 
	SECTION 9.05.	Drag-Along Rights.	35
	 	 	 
	SECTION 9.06.	Right of First Refusal on Development Project Opportunities and Development Buy-Out Right.	35
	 	 	 	 
	ARTICLE X	CERTAIN OBLIGATIONS OF THE COMPANY AND THE MEMBERS	37
	 	 	 	 
	SECTION 10.01.	Other Businesses; Liability and Duties.	37
	 	 	 
	SECTION 10.02.	Insurance	39
	 	 	 
	SECTION 10.03.	Investor Company Employee	39

 

    	ii

    	 

    

 

	ARTICLE XI	DISSOLUTION AND LIQUIDATION	39
	 	 	 	 
	SECTION 11.01.	Dissolution	39
	 	 	 
	SECTION 11.02.	Winding Up.	40
	 	 	 	 
	ARTICLE XII	MISCELLANEOUS	41
	 	 	 	 
	SECTION 12.01.	Injunctive Relief	41
	 	 	 
	SECTION 12.02.	Notices	41
	 	 	 
	SECTION 12.03.	Successors and Assigns	41
	 	 	 
	SECTION 12.04.	Governing Law; Arbitration.	41
	 	 	 
	SECTION 12.05.	Set-Off	42
	 	 	 
	SECTION 12.06.	Entire Agreement; Amendment	43
	 	 	 
	SECTION 12.07.	No Waiver	43
	 	 	 
	SECTION 12.08.	Confidentiality	43
	 	 	 
	SECTION 12.09.	Counterparts	44
	 	 	 
	SECTION 12.10.	Headings	44
	 	 	 
	SECTION 12.11.	Further Assurances	44
	 	 	 
	SECTION 12.12.	Survival of Obligations	44
	 	 	 
	SECTION 12.13.	No Third Party Beneficiaries	44

 

SCHEDULES AND EXHIBITS

 

	Exhibit A	Membership Units and Percentage Interests
	Exhibit B	Addresses for Notices
	Exhibit C	Initial Project Budget

 

    	iii

    	 

    

 

AMENDED AND
RESTATED

 

LIMITED LIABILITY
COMPANY AGREEMENT OF

 

RHODE ISLAND
ENERGY PARTNERS, LLC

 

THIS AMENDED AND
RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of Rhode Island Energy
Partners, LLC, a limited liability company organized under the laws of Delaware (the
“Company”), dated as of April 8, 2015 (the “Effective
Date”), is entered into by and between York Renewable Energy Partners LLC, a limited liability company
organized under the laws of Delaware (“Investor”), and Blue Sphere Corporation, a
corporation organized under the laws of Nevada (“Development”).

 

WITNESSETH:

 

WHEREAS, the Company
was formed on March [●], 2015, under the Delaware Limited Liability Company Act (as amended from time to time, the “Act”),
and Investor was the original member thereof pursuant to a limited liability company agreement of the Company dated as of March
[●], 2015 (the “Original LLC Agreement”);

 

WHEREAS, Orbit Energy
Rhode Island, LLC, a Rhode Island limited liability company (“Project LLC”), holds certain development
rights and other assets, including without limitation, certain permits, technology rights and contractual rights necessary for
the construction and operation of a high solids anaerobic digestion and energy generation facility for the production of biogas
and electricity in Johnston, Rhode Island (the “Project”);

 

WHEREAS, Project
LLC was organized by Orbit Energy, Inc., a North Carolina corporation (“Seller”), and, pursuant to a
certain Amended and Restated Orbit Energy Rhode Island, LLC Purchase Agreement (including Exhibit A thereto) made and entered into
by Seller and Development as of January 7, 2015 (the “Orbit Purchase Agreement”), Development purchased
100% of the limited liability company interests of Project LLC (the “Interests”) from Seller, and Development
became the sole member of Project LLC on January 7, 2015;

 

WHEREAS, Development,
prior to and during the period in which it was the sole member of Project LLC, on behalf of Project LLC, procured and coordinated
contractual and governmental and permitting rights necessary for the development and construction of the Project;

 

WHEREAS, Development,
Project LLC, the Company and Seller have executed a certain Orbit Energy Rhode Island, LLC Membership Interest Purchase Agreement
dated as of March [●], 2015 (“Project LLC Purchase Agreement”) pursuant to which (i) the Company
shall purchase from Seller, the Interests for $386,432 and on the terms and conditions described therein, and (ii) Seller shall
release the Company, the Investor and Project LLC and their respective assets, including the Project, from any liability for any
of the obligations of Development under the Orbit Purchase Agreement, and shall grant to Project LLC a perpetual, royalty-free,
nonexclusive license to use certain technology in the Project;

 

    	1

    	 

    

 

WHEREAS, the parties
acknowledge and agree that (i) any automatic reversion of the Interests from Development to Seller prior to the date hereof has
been deemed not to have occurred, and did not occur, and has been deemed, and is, null and void, (ii) immediately prior to the
closing under the Project LLC Purchase Agreement, the Interests reverted to Seller, and Seller became the sole member of Project
LLC, and the Company purchased the Interests from Seller in reliance on the representations, warranties and covenants of Seller
set forth in the Project LLC Purchase Agreement and the representations and warranties regarding Project LLC, its assets and liabilities
and the Project and the covenants of Development set forth the Development and Indemnification Agreement among the Company, Investor
and Development dated the date hereof (the “Development and Indemnification Agreement”), and (iii) in
consideration of the representations and warranties regarding Project LLC, its assets and liabilities and the Project and the covenants
of Development set forth in the Development and Indemnification Agreement, the Company shall (1) pay to Development a cash payment,
subject to a holdback, equal to $[1,125,000] (the “Closing Payment”), which sum shall include the Closing
Development Fee (as defined herein), and (2) issue to Development 2,275 Series B units of the Company (“Series B Units”),
such that the Investor will be a member of the Company holding 7,725 Series A units (“Series A Units”)
representing 77.25% of the limited liability company interests of the Company, and Development will be admitted as a member of
the Company holding 2,275 Series B Units representing 22.75% of the limited liability company interests of the Company in accordance
with the terms of this Agreement;

 

WHEREAS, Investor
as the sole member of the Company, desires to amend the Original LLC Agreement to establish two new classes of limited liability
company interests represented by Series A Units and Series B Units and admit Development as a Member of the Company; and

 

WHEREAS, Investor
and Development desire to enter into this Agreement to set forth their respective rights and obligations as Members of the Company
and to provide for the management and affairs of the Company and for the conduct of the business of the Company.

 

NOW, THEREFORE,
in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE I

DEFINITIONS

 

SECTION 1.01.         Definitions.
 As used in this Agreement, the following terms shall have the following meanings.

 

“AAA”
has the meaning set forth in Section 12.04(b).

 

“Acceptance Period”
has the meaning set forth in Section 4.02(a).

 

“Accounting Period”
means each calendar year, with the exception of (i) the year ending December 31, 2015, which shall commence on the date hereof,
and (ii) the year in which a Liquidation Event occurs, which shall end on the date of dissolution of the Company.

 

“Act”
has the meaning set forth in the recitals.

 

    	2

    	 

    

 

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly Controlled by, Controlling or under common Control with,
such Person.

 

“Agreement”
has the meaning set forth in the preamble.

 

“Annual Accounts”
has the meaning set forth in Section 5.04(a)(ii)(B).

 

“Applicable Law”
means, for any Person, any domestic or foreign law, rule or regulation, or judgment, decree, order, permit, license, certificate
of authority, order or governmental approval, in each case, of or by any Governmental Authority, to which the Person or any of
its business is subject.

 

“Beneficial Ownership”
means direct or indirect beneficial ownership as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended. The
term “Beneficially Owned” has a correlative meaning.

 

“Board of Managers”
has the meaning set forth in Section 7.01(a).

 

“Budgeted Investment”
means an amount equal to $[19,139,932], the aggregate amount actually required for completion of the Project in accordance with
the initial Project Budget, which is attached hereto as Exhibit C, less the aggregate amount of any debt financing obtained
by the Company or its Subsidiaries in connection with the Project from any unrelated third party or from a Member, including Investor
or an Affiliate of Investor.

 

“Business”
means the business of investing in and developing the Project, either directly or indirectly, including through Project LLC or
one or more Subsidiaries, Affiliates, joint ventures or other third party arrangements.

 

“Business Day”
means any day other than a Saturday, a Sunday or a day on which banks located in New York, New York generally are authorized or
required by law or regulation to close.

 

“Buy-Out Offer
Notice” has the meaning set forth in Section 9.06(e).

 

“Capital Account”
has the meaning set forth in Section 8.02(a).

 

“Capital Contribution”
means, with respect to any Member, the amount of money and the initial gross asset value of any property (other than money) contributed
to the capital of the Company by such Member. For the avoidance of doubt, any amounts actually paid by Investor pursuant to the
Investor Guaranteed Obligations shall be deemed to have been contributed by Investor to the Company and immediately thereafter
used by the Company to satisfy the Company’s obligations with respect to which Investor paid such amounts.

 

“Capital Return
Distributions” means, with respect to any Member holding Series A Units as of any date, any distributions made to such
Member pursuant to Section 6.03(b) or Section 6.04(b).

 

    	3

    	 

    

 

“Claim”
means any claim, demand, assessment, judgment, order, decree, action, cause of action, litigation, suit, investigation or other
Proceeding.

 

“Closing Development
Fee” has the meaning set forth in the definition of Development Fee below.

 

“Code”
means the United States Internal Revenue Code of 1986, as amended from time to time.

 

“Company”
has the meaning set forth in the preamble.

 

“Company Management”
has the meaning set forth in Section 7.03(a).

 

“Confidential
Information” has the meaning set forth in Section 12.08.

 

“Contribution
Date” means, with respect to any Capital Contributions made by any Member, the date on which such Capital Contributions
are made to the Company.

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an
entity, whether through the ownership of securities, by contract or otherwise. The terms “Controlled” and “Controlling”
have correlative meanings.

 

“Development”
has the meaning set forth in the preamble.

 

“Development Appraiser”
has the meaning set forth in Section 9.06(e).

 

“Development Entities”
has the meaning set forth in Section 10.01(a).

 

“Development Fee”
means a fee payable by the Company to Development in an aggregate amount equal to $1,687,500. The Development Fee is payable in
three (3) equal installments of $562,500 each as follows: (i) the first installment of $562,500 shall be included in Closing Payment
and paid on the closing of the Development and Indemnification Agreement (the “Closing Development Fee”);
(ii) the second installment of $562,500 shall be paid on the date of “Mechanical Completion” (as defined in the EPC
Agreement); and (iii) the third installment of $562,500 shall be paid on the “Commercial Operation Date” (as defined
in the EPC Agreement). The parties hereto agree and acknowledge that the installments of the Development Fee shall be treated as
“guaranteed payments” within the meaning of Section 707(c) of the Code.

 

“Development and
Indemnification Agreement” has the meaning set forth in the recitals.

 

“Development Project
Opportunity” has the meaning set forth in Section 9.06(a).

 

“Drag-Along Buyer”
has the meaning set forth in Section 9.05(a).

 

“Drag-Along Member”
has the meaning set forth in Section 9.05(a).

 

“Drag-Along Notice”
has the meaning set forth in Section 9.05(a).

 

    	4

    	 

    

 

“EBITDA”
means, with respect to any period, including an Accounting Period, the earnings before interest, taxes, depreciation and amortization,
calculated in accordance with the methodology used to calculate “EBITDA” in the Project Budgets consistently applied,
with reasonable adjustments, reasonably agreed to by Investor and Development, for prudent, reasonable business decisions made
in the ordinary course of business.

 

“Effective Date”
has the meaning set forth in the preamble.

 

“Entropy”
means Entropy Investment Management LLC, a limited liability company organized under the laws of Delaware.

 

“EPC Agreement”
means the executed Agreement for the Design, Construction and Delivery of a Biogas Plant between Auspark LLC and Project LLC, dated
_______, as amended through the date hereof, with respect to the Project.

 

“Equity Contribution
Election” has the meaning set forth in Section 4.04(a).

 

“Excess Thermal
Energy Profits” means, with respect to any period of calculation, an amount equal to the excess of Company revenues from
the sale of Excess Thermal Energy during such period over Company expenses allocable to the production of such Excess Thermal Energy
(as determined in good faith by the Board of Managers). For purposes of this definition, “Excess Thermal Energy”
means waste heat energy generated by the Project that is not used in the operation of the Project (which operation includes the
warming of anaerobic digester tanks) and which would otherwise be wasted.

 

“Fair Market Value”
means, with respect to any Membership Units, a good faith determination by the Board of Managers through a reasonable application
of a reasonable valuation method of the enterprise value of the Company as a going concern (taking into account net worth, prospects,
market conditions, comparable public and private companies and comparable transactions). If any Member(s) object(s) promptly in
writing to such determination of the enterprise value of the Company by the Board of Managers, such determination of fair market
value will be made by an investment bank (or other valuation expert) of national standing appointed by the Company with the consent
of the objecting Member(s) (such consent not to be unreasonably withheld or delayed) by applying the principles set forth herein,
whose determination will be binding on the parties and whose fees will be paid as follows: (i) split equally between the applicable
Member(s) and the Company if the expert’s determination of Fair Market Value is equal to or between 90% and 110% of the Board
of Managers’ determination of Fair Market Value; (ii) entirely by such Member(s) if the expert’s determination of Fair
Market Value is lower than 90% of the Board of Managers’ determination of Fair Market Value; or (iii) entirely by the Company
if the expert’s determination of Fair Market Value is greater than 110% of the Board of Managers’ determination of
Fair Market Value). Such determination shall be conclusive and binding on all Persons. Any dispute with respect to the appointment
of such investment bank or other valuation expert will be determined in accordance with Section 12.04.

 

“Family”
of an individual includes: (i) the individual; (ii) the individual’s spouse; (iii) any other natural Person who is part of
such individual’s immediate family; and (iv) any other natural Person who resides with such individual.

 

    	5

    	 

    

 

“Feedstock Tipping
Fee Excess Profits” means, with respect to any period of calculation, an amount equal to the feedstock tipping fees received
by the Company during such period in excess of $25 per ton.

 

“Fully Exercising
Member” has the meaning set forth in Section 4.02(a).

 

“Fiscal Year”
means the fiscal year period ending December 31 of each year.

 

“GAAP”
means generally accepted accounting principles in the United States, as consistently applied through the relevant period.

 

“Governance Rights
Successor” has the meaning set forth in Section 7.02(c).

 

“Governmental
Authority” means any domestic or foreign governmental or regulatory authority, agency, court, commission or other governmental
or regulatory entity (including any self-regulatory organization).

 

“Ground Lease”
means that certain Amended and Restated Lease Agreement, dated as of March __, 2015, by and between Shelby Realty, Inc., a Rhode
Island corporation, and [Orbit Energy Rhode Island LLC], a Rhode Island limited liability company, as amended from time to time.

 

“Holder Notice”
has the meaning set forth in Section 9.04(a).

 

“Indemnitee”
has the meaning set forth in Section 7.04(a).

 

“Investor”
has the meaning set forth in the preamble.

 

“Investor Alternate”
has the meaning set forth in the Section 7.02(b).

 

“Investor Appraiser”
has the meaning set forth in the Section 9.06(e).

 

“Investor Arranged
Debt Financing” has the meaning set forth in Section 4.04(a).

 

“Investor Buy-Out”
has the meaning set forth in the Section 9.06(d).

 

“Investor Entities”
has the meaning set forth in Section 10.01(a).

 

“Investor Guaranteed
Obligations” means the sum of (i) that portion of the Investor Arranged Debt Financing, if any, that is guaranteed by
Investor or any of its Affiliates and (ii) the amount of Annual Base Rent (as defined in the Ground Lease) that is guaranteed by
Investor or any of its Affiliates pursuant to that certain Guaranty of Lease entered into in connection with the Ground Lease (in
each case to the extent to which, and for the periods during which, such guaranty obligations remain outstanding).

 

“Investor Guaranteed
Obligations Return” means a rate of return equal to nine percent (9%) per annum, compounded annually, with respect to
the Investor Guaranteed Obligations outstanding from time to time during the relevant calculation period.

 

    	6

    	 

    

 

“Investor Managers”
has the meaning set forth in Section 7.02(a)

 

“IRS”
means the United States Internal Revenue Service.

 

“IRS Notice”
has the meaning set forth in Section 8.02(g).

 

“LIBOR”
means the rate per annum for dollar deposits for the three-month interest period which appears on the Telerate Page 3750 (or such
other successor place) at approximately 11:00 a.m., London time, on the day that is two (2) Business Days prior to the first day
of such interest period.

 

“Liquidation Event”
means any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary.

 

“Management Accounting
Policies” means the accounting policies and procedures utilized by management in preparing the management reports referred
to in Section 5.04(a)(iii) and the Annual Accounts, applied on a consistent basis, including for periods prior to the Effective
Date.

 

“Manager”
means any person hereafter elected to act and serving as a member of the Board of Managers as provided in this Agreement but does
not include any person who has ceased to be a member of the Board of Managers.

 

“Members”
means Development and Investor, and all other Persons who may be admitted from time to time as a member of the Company pursuant
to this Agreement.

 

“Members’
Estimated Tax Liability” has the meaning set forth in Section 6.05.

 

“Membership Units”
means, collectively, the Series A Units and Series B Units.

 

“New Units”
has the meaning set forth in Section 4.02(a).

 

“Net Available
Cash” shall mean, at any time, all cash of the Company less the sum of amounts reserved for the Project Budget (as amended,
modified and supplemented and as approved in accordance with Section 7.08), or, as reasonably determined by the Board of
Managers after consultation with Company Management, for payment of expenses, liabilities and obligations (whether fixed or contingent)
and for establishment of appropriate reserves for expenses, liabilities and obligations that are reasonably likely to arise.

 

“Offered Interests”
has the meaning set forth in Section 9.03(a).

 

“Offer Notice”
has the meaning set forth in Section 9.03(a).

 

“Offer Period”
has the meaning set forth in Section 9.03(b).

 

“Offeree”
has the meaning set forth in Section 9.03(a).

 

“Offeror”
has the meaning set forth in Section 9.03(a).

 

    	7

    	 

    

 

“Officers”
has the meaning set forth in Section 7.03(b).

 

“Orbit Purchase
Agreement” has the meaning set forth in the recitals.

 

“Original LLC
Agreement” has the meaning set forth in the recitals.

 

“Other Officers”
has the meaning set forth in Section 7.03(b).

 

“Ownership Threshold”
has the meaning set forth in Section 7.02(a).

 

“Percentage Interest”
means the percentage interest shown for each Member in Exhibit A.

 

“Permitted Transfer”
has the meaning set forth in Section 9.01(a).

 

“Permitted Transferee”
means, with respect to a Member, one or more of its Affiliates (or any of their respective members, stockholders, managers, officers
or directors); provided, however, that, in each case, no Person shall be a Permitted Transferee (i) if the Transfer
to such Person is made with the intent that the Transferee will make a subsequent Transfer or that the transferor will subsequently
Transfer interests in such Transferee in order to avoid the Transfer restrictions that would otherwise be applicable and (ii) unless
such Person agrees in writing with the Company at the time of such Transfer to Transfer back to a Permitted Transferee the transferred
Membership Units if such Person ceases to be a Permitted Transferee.

 

“Person”
means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership or other
entity.

 

“Preemptive Rights
Offer Notice” has the meaning set forth in Section 4.02(a).

 

“Proceeding”
means any claim, counterclaim or other Claim at law or in equity or by or before any Governmental Authority or other agency.

 

“Project”
means the development, construction and operation of a high solids anaerobic digestion and energy generation facility for the production
of biogas and electricity in Johnston, Rhode Island.

 

“Project Budget”
has the meaning set forth in Section 7.08(a).

 

“Project LLC”
has the meaning set forth in the recitals.

 

“Project LLC Purchase
Agreement” has the meaning set forth in the recitals.

 

“Project Opportunity
Offer Notice” has the meaning set forth in Section 9.06(a).

 

“Project Opportunity
Offer Period” has the meaning set forth in Section 9.06(b).

 

“Project Opportunity
Right of First Refusal” has the meaning set forth in Section 9.06(a).

 

    	8

    	 

    

 

“Pro Rata Amount”
means the product of (i) the total number of Membership Units held by a Member exercising its tag-along rights under Section
9.04 and (ii) (A) the number of Membership Units to be Transferred by Investor, divided by (B) the total number of Membership
Units held by Investor immediately prior to the proposed Transfer.

 

“Related Party”
means (i) with respect to a Person that is a natural person, (a) each other member of such natural person’s Family; (b) any
Person that is directly or indirectly Controlled by any one or more members of such natural person’s Family; (c) any Person
in which such natural person or members of such natural person’s Family hold (individually or in the aggregate) a Material
Interest (as defined below); and (d) any Person with respect to which one or more members of such natural person’s Family
serves as a director, manager, officer, shareholder, partner, member, executor or trustee (or in a similar capacity); and (ii)
with respect to a Person other than a natural person, (a) any Affiliate of a Person that serves as a director, officer, partner,
executor or trustee of such specified Person; (b) any Person that serves as a director, manager, officer, shareholder, partner,
member, executor or trustee of such specified Person (or in a similar capacity); (c) any Person for which such specified Person
serves as a general partner, manager or trustee (or in a similar capacity) or (d) any Person in whom such specified Person has
a Material Interest. For purposes of this definition, “Material Interest” means direct or indirect beneficial
ownership of voting securities or other voting interests representing at least five percent (5%) of the outstanding voting power
of a Person or equity securities or other equity interests representing at least five percent (5%) of the outstanding equity securities
or equity interests in a Person.

 

“Reply Notice”
has the meaning set forth in Section 9.03(b).

 

“Reply Period”
has the meaning set forth in Section 9.06(b).

 

“Return Percentage”
means, for any Member holding Series A Units, a rate of return equal to nine percent (9%) per annum, compounded annually, with
respect to (i) such holder’s Unrecovered Capital Contributions outstanding from time to time during the relevant calculation
period, and (ii) the amount of all Investor Guaranteed Obligations outstanding from time to time during the relevant calculation
period.

 

“Safe Harbor Valuation
Election” has the meaning set forth in Section 8.02(g).

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Securities Act”
means the Securities Act of 1933, as amended, or any successor Federal statute thereto, and the rules and regulations of the SEC
promulgated thereunder.

 

“Series A Units”
has the meaning set forth in the recitals.

 

“Series B Units”
has the meaning set forth in the recitals.

 

“Subsidiary”
means, for any Person (the “parent”) at any date, any other Person (i) the accounts of which would be consolidated
with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in
accordance with GAAP as of such date, (ii) of which securities or other ownership interests representing more than fifty percent
(50%) of the equity or more than fifty percent (50%) of the ordinary voting power or, in the case of a partnership, more than fifty
percent (50%) of the general partnership interest or economic interests are, as of such date, owned, Controlled or held, or (iii)
that is, as of such date, otherwise Controlled by the parent or one or more Subsidiaries of the parent.

 

    	9

    	 

    

 

“Tag-Along Notice”
has the meaning set forth in Section 9.04(a).

 

“Tag-Along Price”
has the meaning set forth in Section 9.04(a).

 

“Tax”
means any United States Federal, state, local or foreign tax or other governmental charge, fee, levy or assessment of whatever
kind or nature, including all United States Federal, state, local or foreign income, gross receipts, windfall profits, severance,
property, production, sales, use, license, excise, franchise, employment, premium, recording, documentary, transfer, back-up withholding,
turnover, net asset, capital gains, value added, estimated, ad valorem, payroll and employee withholding, stamp, customs, occupation
or similar taxes, and any social charges or contributions together with any interest, additions, or penalties with respect to these
Taxes and any interest in respect of any additions or penalties.

 

“Tax Distribution”
has the meaning set forth in Section 6.05.

 

“Tax Distribution
Rate” has the meaning set forth in Section 6.05.

 

“Tax Matters Member”
shall have the meaning set forth in Section 8.04.

 

“Tax Proceeding”
shall have the meaning set forth in Section 8.03(c).

 

“Tax Return”
shall have the meaning set forth in Section 8.03(a).

 

“Transfer”
means, with respect to any Membership Unit (or other equity interest in any Person), any direct or indirect sale, transfer, assignment,
pledge, hypothecation or other disposition of such Membership Unit (or such other equity interest), including any disposition of
the economic or other risks of ownership through hedging transactions or derivatives involving such Membership Unit (or such other
equity interest).

 

“Transferee”
has the meaning set forth in Section 9.01(a).

 

“Treasury Regulations”
means the income tax regulations, including temporary regulations, promulgated under the Code, as such regulations may be amended
from time to time (including corresponding provisions of succeeding regulations).

 

“Unpaid
Investor Guaranteed Obligations Return” means, with respect to Investor as of any date, the excess, if any, of (i) the
accrued Investor Guaranteed Obligations Return from the date on which the applicable Investor Guaranteed Obligations were incurred
through the date of calculation over (ii) the sum of all amounts previously distributed to Investor pursuant to Section 6.04(a).

 

“Unpaid
Return Percentage” means, with respect to any Member holding Series A Units as of any date, the excess, if any, of (i)
the accrued Return Percentage with respect to such Series A Units, from the Effective Date through the date of calculation over
(ii) the sum of all amounts previously distributed to such Member pursuant to Section 6.04(b).

 

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“Unrecovered
Capital Contribution” means, with respect to any Member holding Series A Units as of any date, the excess, if any, of
(i) the sum of the Capital Contributions made by such Member with respect to such Series A Units as of such date over (ii) the
sum of the total amount of Capital Return Distributions made with respect to such Member’s Series A Units prior to such date.

 

SECTION 1.02.         Interpretation.
In this Agreement, unless the contrary intention appears: (a) a reference to an Article, Section or Exhibit is a reference
to an Article or Section of, or Exhibit to, this Agreement, and references to this Agreement include any recital in and Exhibit
to, this Agreement; (b) the Exhibits form an integral part of and are hereby incorporated by reference into this Agreement; (c)
headings and the Table of Contents are inserted for convenience only and shall not affect the construction or interpretation of
this Agreement; (d) unless the context otherwise requires, words importing the singular include the plural and vice versa, words
importing the masculine include the feminine and vice versa; (e) any agreement referred to herein shall mean such agreement as
amended, supplemented and modified as of the date hereof, or thereafter, to the extent permitted by the applicable provisions thereof
and, if applicable, hereof, shall include all annexes, exhibits, schedules and other documents or agreements attached thereto;
(f) the words “hereof,” “herein,” “hereinabove,” and words of similar meaning shall refer to
this Agreement as a whole and not to any particular Article, Section or paragraph; and (g) the words “include,” “includes”
and “including” are not limiting.

 

ARTICLE II

INTRODUCTORY PROVISIONS

 

SECTION 2.01.         Name;
Formation; Continuation; Filings. The name of the Company shall be “Rhode Island Energy
Partners, LLC”, and all Company business shall be conducted in such name or such other names that comply with Applicable
Law as the Board of Managers may select from time to time.

 

SECTION 2.02.         Offices;
Registered Office and Agent.

 

(a)          The
Company’s initial principal office shall be located at c/o of Investor, 767 Fifth Avenue, 17th Floor, New York, New York
10153. The Company may locate its principal office at any other place or places as the Board of Managers may from time to time
deem necessary or advisable.

 

(b)          The
name of the registered agent of the Company shall be Corporation Service Company, and the address of the registered office shall
be c/o Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808.

 

SECTION 2.03.         Duration.
The Company shall continue in existence until a Certificate of Cancellation is filed with the Secretary of State of the State of
Delaware as provided in the Act, unless the Company is earlier dissolved in accordance with the provisions of this Agreement.

 

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SECTION 2.04.         Limited
Purpose and Authority.

 

(a)          The
purpose of the Company shall be to engage in the Business and other activities related thereto or to engage in any other act or
activity that is permitted by Applicable Law that has been duly authorized by the Board of Managers.

 

(b)          Subject
to the terms, conditions and limitations of this Agreement, the Company shall have the power and authority to do all such other
acts and things as may be necessary, desirable, expedient, convenient for, or incidental to the furtherance and accomplishment
of the foregoing purpose.

 

SECTION 2.05.         No
State Law Partnership; No Concerted Action.

 

(a)          Notwithstanding
the provisions of Article VIII, the Members intend that the Company shall not be a partnership (including a general partnership
or a limited partnership) or joint venture and that no Member shall be a partner or joint venturer of any other Member with respect
to the business of the Company for any purposes other than United States Federal, state and local Tax purposes, and this Agreement
shall not be construed to suggest otherwise.

 

(b)          Each
Member hereby acknowledges and agrees that, except as expressly provided herein, in performing its obligations or exercising its
rights hereunder, it is acting independently and is not acting in concert with, on behalf of, as agent for, or as joint venturer
or partner of, any other Member. Other than in respect of the Company, nothing contained in this Agreement shall be construed as
creating a corporation, association, joint stock company, business trust, organized group of persons, whether incorporated or not,
among or involving any Member or its Affiliates, and nothing in this Agreement shall be construed as creating or requiring any
continuing relationship or commitment as between such parties other than as specifically set forth herein. Nothing contained in
this Agreement shall be construed as creating any fiduciary relationship of any nature between any Member and any other Member.

 

SECTION 2.06.         Lack
of Authority of Members. Except as expressly set forth herein, the Members shall not have the authority or power to
act for or on behalf of the Company, to do any act that would be binding on the Company, or to incur any expenditures, debts, liabilities
or obligations on behalf of the Company.

 

SECTION 2.07.         No
Personal Liability of Members. Except as provided in the Act, the debts, obligations and liabilities of the Company, whether
arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Member shall
be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member of the Company.

 

ARTICLE III

MEMBERSHIP UNITS; ADDITIONAL MEMBERS

 

SECTION 3.01.         Membership
Units.

 

(a)          Each
Member shall have a limited liability company interest in the Company. The limited liability company interests in the Company shall
be divided into Series A limited liability company interests represented by Series A Units and Series B limited liability company
interests represented by Series B Units. Exhibit A hereto sets forth the type and number of Membership Unit owned by each
Member as well as such Member’s Percentage Interest as of the Effective Date. The Membership Units shall not be evidenced
by certificates.

 

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(b)          As
of the Effective Date and upon the closings of the transactions contemplated by the Project LLC Purchase Agreement and the Development
and Indemnification Agreement, as partial consideration under the Development and Indemnification Agreement, the Company hereby
issues to Development 2,275 Series B Units and admits Development as a Member of the Company which issuance and admission is approved
by Investor.

 

(c)          Except
in accordance with Section 4.02, the Board of Managers shall have no right to establish or issue new or additional series
of limited liability company interests or units without the written consent of the Members in accordance with Section 7.06
and amendment of this Agreement to provide for such designation or issuance.

 

(d)          The
Membership Units and Percentage Interests of the Members shall be adjusted from time to time to reflect (i) the issuance of additional
Membership Units in accordance with Section 4.02, (ii) the Transfer by a Member of its Membership Units in accordance with
Article IX, (iii) the admission of a new Member in accordance with Section 3.02 and (iv) such other events as otherwise
may give rise to a change in the Members’ ownership of their respective Membership Units under this Agreement. Upon any change
in a Member’s Membership Units or Percentage Interest, the Board of Managers shall amend Exhibit A to properly reflect
such change, and the Board of Managers shall deliver a copy of Exhibit A, as so amended, to each Member.

 

SECTION 3.02.         Additional
Members. After the Effective Date, a Person may be admitted to the Company as a Member subject
to the restrictions on Transfers of Membership Units in Article IX and the restrictions on issuances of new limited
liability company interests in the Company in Section 4.02, Section 7.05 and Section
7.06.

 

ARTICLE IV

CAPITAL CONTRIBUTIONS

 

SECTION 4.01.         Capital
Contributions. As of the Effective Date, Investor has contributed to the Company the amounts set forth on the ledger of Investor’s
Capital Account. Following the Effective Date, Investor shall, from time to time, make additional Capital Contributions to the
Company, including upon an Equity Contribution Election (as defined herein), at such times and in such amounts as may be determined
by the Board of Managers, and in accordance with the Project Budget and the terms and conditions of this Agreement, to fund the
development and construction of the Project; provided that Investor shall not be obligated to make additional Capital Contributions
to the Company in an aggregate amount that exceeds the Budgeted Investment. The timing of the Capital Contributions will be based
on the development schedule for the Project and the Board of Managers will determine, and report to Investor, the timing and amount
of the Capital Contributions to be made by Investor. Investor shall be provided at least ten (10) Business Days’ notice prior
to the due date of a Capital Contribution, which notice shall be delivered at least ten (10) Business Days prior to the relevant
milestone date set forth in the Project Budget, unless otherwise determined by the Board of Managers and agreed to by Investor.
Company Management will report the development schedule of the Project to the Board of Managers on a monthly basis. In no event
shall Development or any holder of Series B Units be required make Capital Contributions to the Company. Except as otherwise specifically
provided in this Agreement, no Capital Contributions by Investor will be in exchange for additional Series A Units.

 

    	13

    	 

    

 

SECTION 4.02.         Additional
Capital Contributions.

 

(a)          At
any time after the Effective Date, and provided that the Board of Managers determines in good faith that equity capital in addition
to the Budgeted Investment is needed by the Company and is in the best interests of the Project, the Board of Managers shall, in
good faith, determine the amount of additional capital needed, the use therefor, the then enterprise value of the Company (taking
into account net worth, prospects, market conditions, comparable public and private companies and comparable transactions), and
the number of additional Series A Units to be offered and sold by the Company (“New Units”), and the
purchase price per New Unit. The Company shall give written notice (the “Preemptive Rights Offer Notice”)
to each Member, stating the amount of additional capital to be raised, the use therefor, the then enterprise value of the Company,
the number of New Units offered and the purchase price per New Unit. By written notice to the Company within thirty (30) Business
Days after the Preemptive Rights Offer Notice is given (“Acceptance Period”), each Member may elect to
purchase, at the price and on the terms specified in the Preemptive Rights Offer Notice, up to that portion of New Units which
equals such Member’s Percentage Interest in the Company. At the expiration of the Acceptance Period, the Company shall promptly
notify, in writing, each Member that elects to purchase all the New Units available to such Member (“Fully Exercising
Member”) of any other Member’s failure to do likewise. During the ten (10) day period commencing after the
Company has given such notice, each Fully Exercising Member may, by giving written notice to the Company, elect to purchase, in
addition to the number of New Units specified above, up to all of the New Units not subscribed for by any other Members. The closing
of any purchase pursuant to this Section 4.02 shall occur within sixty (60) days of the date the Preemptive Rights Offer
Notice is given. The provisions of this Section 4.02(a) may be waived by the vote or written consent of the Members representing
a majority of the Series A Units and the Members representing a majority of the Series B Units.

 

(b)          If
the Members do not subscribe for all of the New Units, subject to Section 7.06, the Company may offer and sell additional
limited liability company interests in order to raise the additional capital to any Person on such terms and conditions as the
Board of Managers may determine.

 

SECTION 4.03.         Maintenance
of Capital Accounts; No Right of Withdrawal; No Interest.

 

(a)          Separate
Capital Accounts shall be maintained for each Member pursuant to Section 8.02.

 

(b)          Except
as otherwise provided herein, no interest shall be paid to any Member in respect of its Capital Account balance.

 

    	14

    	 

    

 

(c)          In
the event all or any portion of a Membership Unit is transferred in accordance with the terms of this Agreement, the Transferee
shall succeed to the Capital Account of the transferor to the extent it relates to the portion of the Membership Unit so Transferred.

 

(d)          An
Unrecovered Capital Contribution shall not be a liability of the Company or any Member, and no Member shall be required to contribute
or to lend any cash or assets to the Company to enable the Company to return any Member’s Unrecovered Capital Contribution.

 

SECTION 4.04.         Advances
and Loans.

 

(a)          If
the Company does not have sufficient cash to pay its obligations, the Board of Managers shall use reasonable efforts to procure
funding from an outside lender which is not an Affiliate of any of the Members; provided, that if such financing cannot be obtained
on terms satisfactory to the Board of Managers, Investor shall, at the request of the Board of Managers, arrange for up to $9,639,932
in principal amount of debt financing (“Investor Arranged Debt Financing”), as and when needed by the
Company as determined in good faith by the Board of Managers, provided, however, such financing shall not take the form of a loan
directly from Investor. At any time following such a request by the Board of Managers to Investor, Investor may elect (“Equity
Contribution Election”) by a written notice to the Board of Managers and the other Members, to make additional capital
contributions to the Company pursuant and subject to Section 4.01.

 

(b)          Any
Member may, at the request of the Board of Managers, advance additional funds in excess of the funds described in Section 4.04(a)
above as and when needed. An advance described in this Section 4.04(b) shall constitute a loan from the participating Member(s)
to the Company, shall bear interest at a market interest rate from the date of the advance until the date of payment, and shall
otherwise be on market terms for similar loans to similar businesses from institutional lenders, and shall not be a Capital Contribution.

 

ARTICLE V

BOOKS AND RECORDS

 

SECTION 5.01.         Books
and Records. The Board of Managers shall cause to be performed all general and administrative services on behalf of
the Company in order to assure that complete and accurate books and records of the Company are maintained at such place designated
by the Board of Managers showing the names, addresses and respective Membership Units and Percentage Interests of the relevant
Members, all receipts and expenditures, assets and liabilities, profits and losses, and all other records necessary for recording
the Company’s respective business and affairs.

 

SECTION 5.02.         Fiscal
Year; Accounting Method. The fiscal year of the Company for financial reporting purposes shall be the Fiscal Year. The taxable
year of the Company shall also be the Fiscal Year unless the Company is required by Section 706 of the Code to use a different
taxable year. The Company shall report its income for Tax purposes on the accrual method of accounting, shall report all activities
of the Company as trade or business activities and shall treat its investments in power generation facility companies (or in their
assets in the case such companies are treated as disregarded entities for United States Federal income Tax purposes) as capital
assets within the meaning of Section 1221(a) of the Code, or as “property used in the trade or business” within the
meaning of Section 1231(b) of the Code, as applicable, and in each case, unless and until the Company obtains an opinion of counsel
knowledgeable in United States Federal income Tax matters stating that other treatment should be considered to be more appropriate.

 

    	15

    	 

    

 

SECTION 5.03.         Bank
Accounts. All funds of the Company will be deposited in its name in an account or accounts maintained with such bank
or banks selected by the Company. The funds of the Company shall not be commingled with the funds of any Member. Checks will be
drawn upon the Company account or accounts only for the purposes of the Company and shall be signed by one or more authorized Officers
of the Company.

 

SECTION 5.04.         Company
Information.

 

(a)          The
Company agrees to deliver to each Member:

 

(i)          within
forty-five (45) days after the end of the fiscal quarters of each Fiscal Year, unaudited quarterly consolidated and consolidating
financial statements of the Company and its consolidated Subsidiaries prepared in accordance with the Management Accounting Policies;

 

(ii)         within
seventy-five (75) days after the end of each Fiscal Year, (A) audited annual financial statements of the Company and its consolidated
Subsidiaries prepared in accordance with GAAP and (B) unaudited annual financial statements of the Company and its consolidated
Subsidiaries prepared in accordance with the Management Accounting Policies and including a calculation of EBITDA and the cumulative
EBITDA since the Effective Date (the financial statements referred to in this clause (ii), the “Annual Accounts”);

 

(iii)        within
ten (10) days after the end of each calendar month during the period the Project remains under development or construction, management
reports for that month and for the year to date compared against the Project Budget and, if applicable, against the same period
for the prior calendar month and year; and

 

(iv)        with
reasonable promptness, such other data and information as from time to time may be reasonably requested by such Member;

 

provided
that all Members (other than Investor) shall execute, prior to disclosing any Confidential Information of the Company to such Member’s
equity holders, a non-disclosure agreement with such equity holders, in form and substance reasonably satisfactory to the Company
and Investor that provides for the protection of Confidential Information that is at least as protective as the requirements set
forth in Section 12.08 hereto.

 

(b)          The
Company shall afford, and shall cause its Subsidiaries and its and their respective officers, directors, managers, employees, auditors,
counsel and agents to afford, Investor and all other Members reasonable access during regular business hours to the Company’s
and its Subsidiaries’ respective officers, directors, managers, employees, auditors, counsel and agents and to all of the
Company’s respective properties, books and records, and shall furnish (including the right to copy) all Members (and their
respective employees and agents) with all financial, operating and other data and information as each may reasonably request.

 

    	16

    	 

    

 

(c)          Company
Management shall direct the preparation of the Annual Accounts and shall use its reasonable best efforts to deliver the Annual
Accounts to the Board of Managers within sixty (60) days after the end of each Fiscal Year.

 

ARTICLE VI

FEES; DISTRIBUTIONS

 

SECTION 6.01.         Fees
Payable to Development. The Company shall pay to Development the Development Fee in three installments as set forth in the
definition of the Development Fee hereunder.

 

SECTION 6.02.         Distributions
Generally. Subject to the Act and this Agreement, and the provisions of any other agreement to which the Company may be bound,
the Board of Managers shall be entitled to determine the amounts and timing of payment of any distributions to Members, provided
that, other than Tax Distributions, the Company shall make distributions in respect of any Fiscal Year only after the approval
of the Annual Accounts for such year by the Board of Managers. All distributions will be made from, and will be limited to, Net
Available Cash.

 

SECTION 6.03.         Priority
of Distributions Other than from Proceeds of a Liquidation Event. 

 

Subject
to Section 6.04 (which shall apply instead of this Section 6.03 with respect to proceeds of a Liquidation Event),
the Company shall make distributions in cash to the Members in the following order
of priority:

 

(a)          first,
the amount of any Feedstock Tipping Fee Excess Profits shall be distributed 20% to Investor and 80% to Development; 

 

(b)          second,
the amount of any Excess Thermal Energy Profits shall be distributed 50% to Investor and 50% to Development; and

 

(c)          third,
all other distributions shall be made to the Members in proportion to their respective Percentage Interests.

 

SECTION 6.04.         Priority
of Distributions upon a Liquidation Event. Subject to Section 11.02, proceeds received by the Company in connection
with any Liquidation Event shall be distributed to the Members in the following order of priority:

 

(a)          first,
100% to Investor until the Unpaid Investor Guaranteed Obligations Return is reduced to zero;

 

    	17

    	 

    

 

(b)          second,
100% to the Members holding Series A Units, in proportion to their respective Unpaid Return Percentages, until their Unpaid Return
Percentages are reduced to zero;

 

(c)          third,
100% to the Members holding Series A Units, in proportion to their respective Unrecovered Capital Contributions, until their Unrecovered
Capital Contributions are reduced to zero; and

 

(d)          fourth,
to the Members in proportion to their respective Percentage Interests.

 

SECTION 6.05.         Tax
Distributions. In the event that the cumulative amount of distributions made to the Members pursuant to Section 6.03
hereof for any Fiscal Year of the Company is less than the cumulative amount of distributions that would have been made pursuant
to this Section 6.05 at any time during such Fiscal Year, then the Board of Managers shall, to the extent of Available Net
Cash, make a distribution (a “Tax Distribution”) to the Members entitled thereto not later than the date
specified below, in an amount sufficient to cause the cumulative amount of distributions made to the Members pursuant to Section
6.03 and this Section 6.05 with respect to such Fiscal Year to equal the following amounts as of the end of the calendar
month preceding each of the following specified dates: (1) prior to the tenth day of April in an amount equal to 1/4 of the Members’
Estimated Tax Liability as of March 31; (2) prior to the tenth day of June in an amount equal to 1/2 of the Members’ Estimated
Tax Liability as of May 31; (3) prior to the tenth day of September in an amount equal to 3/4 of the Members’ Estimated Tax
Liability as of August 31; and (4) prior to the tenth day of January of the following Fiscal Year of the Company in an amount equal
to the Members’ Estimated Tax Liability as of December 31 of the immediately preceding Fiscal Year of the Company. For purposes
of this Section 6.05, the “Members’ Estimated Tax Liability” means the product of
(i) the taxable income of the Company, determined without regard to any income, gain, loss or deduction attributable any “built-in
gain” within the meaning of (and the elimination of any book-tax disparity related thereto pursuant to) Section 704(c) of
the Code, for the then current Fiscal Year of the Company (except that the January distribution shall be for the prior Fiscal Year),
as projected from time to time in good faith by the Board of Managers, multiplied by (ii) the Tax Distribution Rate, which
amount shall be distributed among the Members pro rata in proportion to their respective estimated approximate allocable
shares of such taxable income for such Fiscal Year, as so projected; provided, however, that the Tax Distribution payable
to the Members for a Fiscal Year of the Company (or portion thereof) shall be reduced to reflect net losses and deductions (i.e.,
the excess of losses and deductions over income and gains) and credits allocated by the Company to the Members generally for United
States Federal income Tax purposes in any and all earlier periods (except to the extent previously applied to reduce a Tax Distribution
or to the extent the carryforward period for such losses or credits has expired). For purposes of this Section 6.05, the
“Tax Distribution Rate” shall initially mean such percentage as may be approved by the Board of Managers
from time to time as the approximate highest current marginal combined United States Federal and state income Tax rate applicable
to an individual resident in the State of New York, taking into account the character of the income (such as ordinary income or
capital gains) as reasonably determined by the Board of Managers (determined after giving effect to the deduction (if allowable)
of state income Taxes for United States Federal income Tax purposes). All amounts distributed to Members pursuant to this Section
6.05 shall be advances of amounts otherwise distributable to Members under the provisions of Sections 6.03 and 6.04
hereof. Notwithstanding the foregoing, no Tax Distributions shall be made in connection with a Liquidation Event or with respect
to any proceeds realized by the Company upon any transaction (other than in the ordinary course of business of the Company) at
the time of or in connection with such Liquidation Event.

 

    	18

    	 

    

 

SECTION 6.06.         Limitation
on Distributions. Notwithstanding any provisions herein to the contrary, the Company shall not make a distribution to
any Member if such distribution would violate the Act.

 

SECTION 6.07.         Withheld
Taxes. Any amount that the Company is required to withhold and deposit with any Governmental Authority with respect to any
United States Federal, state or local Tax liability of a Member shall be treated as an amount distributed to such Member and shall
reduce, dollar for dollar, any distribution that would otherwise be made to such Member pursuant to Section 6.03 or Section
6.04 for that or any subsequent period. Any amounts withheld with respect to any payment or allocation by the Company to the
Members prior to the date that such Member would otherwise have received the distribution of such amounts, shall be treated as
a loan by the Company to such Member, which loan shall be subject to interest at a rate equal to LIBOR plus two percent (2%).

 

ARTICLE VII

MANAGEMENT

 

SECTION 7.01.         General.

 

(a)          Except
as expressly required by this Agreement and by non-waivable provisions of Applicable Law where approval by a Member is mandated,
(i) the powers of the Company shall be exercised by or under the authority of, and the business and affairs of the Company shall
be managed under the direction of, a board of managers (the “Board of Managers”) and (ii) the Board of
Managers may make all decisions and take all actions for the Company not otherwise provided for in this Agreement. Unless otherwise
specified herein, any decision or action by the Board of Managers shall be determined by the affirmative vote of a majority in
number of the Managers. The Managers shall be the managers of the Company within the meaning of Section 18-101(10) of the Act.
The Board of Managers must act as a board, and no individual Manager, as such, shall have any authority to bind or act for, or
assume any obligation or responsibility on behalf of, the Company unless expressly authorized to do so by action taken by the Board
of Managers in accordance with this Agreement.

 

(b)          For
situations where this Agreement or non-waivable provisions of Applicable Law require approval of the Members, the Members shall
vote as a single class. Unless otherwise specified herein, any decision or action by the Members shall be determined by the vote
of Members holding a majority of the Membership Units. With respect to all other situations, the Members shall not be entitled
to vote on or consent to or approve or disapprove actions or decisions regarding the Company.

 

    	19

    	 

    

 

SECTION 7.02.         
The Board of Managers.

 

(a)          The
Board of Managers shall be composed of three (3) Managers. As long as Investor and its Affiliates own, in the aggregate, a number
of Membership Units not less than 50% of the Membership Units of the Company, adjusting for unit splits, unit dividends or distributions
or other similar cashless transactions affecting the number of Membership Units outstanding (the “Ownership Threshold”),
Investor shall have the right to appoint a majority of the Managers on the Board of Managers (the “Investor Managers”).
As long as Development and its Affiliates own, in the aggregate, not less than 50% of the Membership Units Beneficially Owned by
Development as of the Effective Date (adjusting for unit splits, unit dividends or distributions or other similar cashless transactions
affecting the number of Membership Units outstanding), Development shall have the right to appoint one (1) Manager (the “Development
Manager”). Upon Investor and its Affiliates in the aggregate ceasing to hold Membership Units greater than or equal
to the Ownership Threshold, Investor shall immediately cause the Investor Managers to resign from the Board of Managers, and the
number of Managers on the Board of Managers will be allocated between the Members in proportion to the number of Membership Units
held by each Member; provided, that such event shall not otherwise affect the rights of Development to appoint a Manager
as provided in this Section 7.02(a). Each of the Members will then have the right to appoint the number of Managers allocated
to it. Upon Development and its Affiliates ceasing to own, in the aggregate, at least 50% of the Membership Units Beneficially
Owned by Development as of the Effective Date, Development shall immediately cause the Development Manager to resign from the Board
of Managers, and the number of Managers on the Board of Managers will be allocated between the Members in proportion to the number
of Membership Units held by each Member; provided, that such event shall not otherwise affect the rights of Investor to
appoint two Managers as provided in this Section 7.02(a). Each of the Members will then have the right to appoint the number
of Managers allocated to it. The names of the initial Managers are as follows:

 

	Type of Nominee	Name
	 	 
	Investor Manager	[Wyatt Wachtel]
	 	 
	Investor Manager	[David March]
	 	 
	Development Manager	[Shlomi Palas]

 

(b)          Investor
shall have the right, so long as it has the right to appoint one or more Managers pursuant to Section 7.02(a), to appoint
an alternate Manager (the “Investor Alternate”) to attend meetings in lieu of any Manager designated
by it, which such Investor Alternate may be another Investor Manager. Each such alternate shall be considered an Investor Manager
for purposes of this Article VII, but only in substitution for such designated Investor Manager.

 

(c)          If
Investor Transfers to another Person Membership Units in accordance with this Agreement, Investor shall be entitled, in its sole
discretion, to Transfer, in whole or in part, its rights under this Article VII (including, without limitation, the right
to appoint Managers and alternate Managers and the right to approve certain matters pursuant to Section 7.05), to such Transferee
(the “Governance Rights Successor”). The Governance Rights Successor shall be the sole person entitled
to exercise Investor’s rights under this Article VII and shall otherwise succeed to the rights of Investor under this
Article VII to further Transfer such rights. No new Member shall have any right to appoint a Manager except as specifically
set forth herein.

 

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(i)          Investor
shall have the exclusive right to remove, with or without cause, any Investor Manager (and any Manager otherwise allocated to it
under Section 7.02(a)) or Investor Alternate and to fill any vacancy created by the death, disability, removal or resignation
of any Investor Manager or Investor Alternate (or any such Manager otherwise allocated to it under Section 7.02(a)).

 

(ii)         Development
shall have the exclusive right to remove, with or without cause, the Development Manager (and any Manager otherwise allocated to
it under Section 7.02(a)) and to fill any vacancy created by the death, disability, removal or resignation of the Development
Manager (or any such Manager otherwise allocated to it under Section 7.02(a)).

 

(d)          The
Board of Managers shall meet on a regular basis and, in any event, not less than four (4) times per year at times to be determined
by the Board of Managers for the purpose of transacting any business. In addition, any Manager may call a special meeting of the
Board of Managers for any matter that the Manager determines in good faith is appropriate for consideration thereat. Meetings of
the Board of Managers may be held at the principal office of the Company or at such reasonable time and place as shall be designated
in the notice of such meeting. Each Manager shall be given at least two (2) weeks’ notice of any regular meeting of the Board
of Managers and at least three (3) Business Days’ notice of any special meeting of the Board of Managers; provided
that each notice of a meeting of the Board of Managers to an Investor Manager shall be delivered by electronic mail to such Investor
Manager to the e-mail address specified by such Investor Manager to the Company from time to time and, provided further
that (i) attendance at such meeting shall be deemed a waiver of such notice (unless a specific objection regarding inadequate notice
is raised) and (ii) notice to any Manager may be waived in writing by such Manager at any time. Each of the Managers shall make
reasonable concessions and accommodations to reschedule or postpone meetings of the Board of Managers such that all Managers may
attend either in person or by telephone or similar communication equipment.

 

(e)          Subject
to the delivery of proper notification of a meeting (or waiver of such notice), attendance by a majority of the Managers in office
at any time shall constitute a quorum for purposes of holding such meeting; provided, however, that approval of any action
shall be in accordance with Section 7.01(a). Any Manager may be present at any meeting in person or by means of telephone
or similar communication equipment by means of which each person participating in the meeting can hear and speak to each other.

 

(f)          Any
action required or permitted to be taken at any meeting of the Board of Managers may be taken without a meeting if a majority of
the Managers consent to such action in writing; provided, that each other Manager shall receive prompt notice of such consent.

 

(g)          A
Manager may participate in any meeting telephonically or by any other means by which he or she can be heard and can hear the other
Managers. For the purposes of establishing a quorum and taking any action at the meeting, the Managers participating pursuant to
this Section 7.02(g) shall be deemed present in person at the meeting, and the place of the meeting shall be the place of
origination of the conference telephone conversation or other comparable communication technique.

 

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(h)          From
time to time, the Board of Managers may establish one or more committees with such composition, responsibilities and powers as
the Board of Managers may determine. Committees shall meet at such times as they or the Board of Managers direct. At least one
(1) Manager appointed by Investor and at least one (1) Manager appointed by Development shall have the right (but not the obligation)
to be on such committees. The decisions of any committee shall be subject to the ultimate approval of the Board of Managers.

 

(i)          No
Manager shall be compensated by the Company for services rendered in his or her capacity as a Manager (including as a member of
any committee of the Board of Managers); provided, however, that the Company shall pay or reimburse reasonable expenses
incurred by the Managers invited by the Board of Managers for attending any meeting of the Board of Managers and committees thereof
or traveling to the Company’s offices and facilities for oversight purposes and for any fees or expenses incurred by the
Managers or the Members on behalf of the Company in connection with the management of the Company.

 

(j)          Each
Manager shall hold office until his or her successor shall have been appointed and qualified or until his or her earlier resignation,
removal, death or disability.

 

SECTION 7.03.         Officers.

 

(a)          The
Board of Managers may, from time to time, designate one or more Persons (which may include a management or services company) to
manage the day-to-day business operations and affairs of the Company and its Subsidiaries and to supervise the Other Officers of
the Company and its Subsidiaries, subject to the direction, supervision and control of the Board of Managers (such Person or Persons,
“Company Management”). Company Management shall have such other powers and perform such other duties
as usually pertain to executive officers and as from time to time may be assigned to them by the Board of Managers. Company Management
may, from time to time, delegate its powers and authority to such officers, employees and other agents of the Company and its Subsidiaries
as it shall deem appropriate.

 

(b)          The
Board of Managers may, from time to time, designate one or more persons to be officers of the Company and its Subsidiaries other
than Company Management (the “Other Officers” and, together with Company Management, the “Officers”).
The Other Officers so designated shall have such authority and perform such duties as the Board of Managers may, from time to time,
delegate to them.

 

(c)          The
services of Company Management and any Officer shall be at the expense of the Company.

 

(d)          Each
Officer shall serve until the earlier of his or her death, disability, resignation, removal or termination by the Board of Managers.
Any vacancy occurring in the office of any Officer may be filled by the Board of Managers.

 

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(e)          Company
Management and the Other Officers shall, solely in his or her respective capacity as an officer of the Company, owe the Company
the same fiduciary and other duties and obligations as an officer holding an equivalent position in a Delaware corporation owes
to such corporation.

 

SECTION 7.04.         Indemnification
of Managers and Officers.

 

(a)          The
Company shall indemnify and hold harmless, to the fullest extent permitted by Applicable Law, any Person who was or is a party
or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative and whether brought by or on behalf of the Company by reason of the fact that such person is or
was a Member, Manager or an Officer of the Company (each, an “Indemnitee”), against reasonable and documented
expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by
him in connection with such action, suit or proceeding; provided, however, no Indemnitee shall be entitled to indemnification
under this Section 7.04(a) if his, her or its actions were in bad faith, were not done with the reasonable belief that such
actions were in the best interests of the Company or were a criminal act.

 

(b)          The
Company shall pay or reimburse reasonable and documented expenses (including reasonable attorneys’ fees) incurred by an Indemnitee
in defending a civil, criminal, administrative or investigative action, suit or proceeding brought by a party (other than a direct
action by the Company) against the Indemnitee in advance of the final disposition of such action, suit or proceeding upon receipt
of an undertaking by or on behalf of such Indemnitee to repay such amount if it shall ultimately be determined that such Indemnitee
is not entitled to be indemnified by the Company as authorized in this Section 7.04.

 

(c)          Notwithstanding
any other provision of this Section 7.04, the Company shall pay or reimburse reasonable and documented expenses (including
reasonable attorneys’ fees) incurred by an Indemnitee in connection with such Indemnitee’s appearance as a witness
or other participant on behalf of the Company in a proceeding involving or affecting the Company at a time when the Indemnitee
is not a named defendant or respondent in the proceeding.

 

(d)          The
right of indemnification and reimbursement provided in this Section 7.04 shall be in addition to any rights to which an
Indemnitee may otherwise be entitled and shall inure to the benefit of the executors, administrators, personal representatives,
successors or assigns of each Indemnitee.

 

(e)          The
rights to indemnification and reimbursement provided for in this Section 7.04 may be satisfied only out of the assets of
the Company, and none of the Members shall be personally liable for any claim for indemnification or reimbursement under this Section
7.04.

 

SECTION 7.05.         Matters
Requiring Approval of the Board of Managers. In addition to any other approval specifically required hereunder, the
prior approval of the Board of Managers shall be required before the Company or any of its Subsidiaries may take, or commit to
take, any of the following actions following the Effective Date:

 

(a)          the
issuance of any limited liability company interests;

 

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(b)          the
admission of any additional or substitute Member;

 

(c)          the
adoption of any Project Budget (other than the initial Project Budget attached hereto) and any amendment or modification thereto
and approval of the Annual Accounts;

 

(d)          the
entrance into any (i) power purchase agreement, (ii) agreement for the purchase or sale of the Project, or (iii) material agreement
outside of the normal course of business;

 

(e)          any
capital expenditure deviating materially from the projection for such expenditure set forth in the Project Budget (approved in
accordance with Section 7.08);

 

(f)          any
merger, consolidation, reorganization, recapitalization or similar business combination involving the Company or any Subsidiary
or the creation of any Subsidiary;

 

(g)          the
payment of any distribution, other than Tax Distributions pursuant to Section 6.05;

 

(h)          the
determination of significant regulatory issues or litigation, including, without limitation, any decision to initiate, forego or
settle any material litigation or arbitration, or the entering into discussions, or negotiations, with any Governmental Authority
in connection with any investigation, proceedings or threatened investigation or proceedings, or any material inquiry;

 

(i)           any
bankruptcy, suspension of payments, assignment to creditors or any similar event or action of the Company or any of its Subsidiaries;

 

(j)           any
liquidation, dissolution or winding up of the Company, or the sale of any of its Subsidiaries, or the sale of substantially all
of the assets of the Company or any Subsidiary;

 

(k)          the
appointment and/or removal of independent auditors or any material change in accounting policies and principles or internal control
procedures;

 

(l)           the
retention of any investment bank or similar financial advisor on behalf of the Company or any Subsidiaries;

 

(m)         the
incurrence, assumption or guarantee of any debt, or the incurrence of any liens in respect of any debt of the Company;

 

(n)          any
Related Party transaction; provided that any action or decision relating to a contract or other arrangement between Development
or one of its Affiliates and the Company or any of its Subsidiaries will be made on behalf of the Company solely by Investor, including,
but not limited to, whether to enter into such contract or other arrangement or to exercise rights under such contract or other
arrangement;

 

(o)          the
creation of an equity incentive, profit sharing or bonus pool compensation plan and any distributions thereunder;

 

    	24

    	 

    

 

(p)          the
hiring or engagement of any new employee with compensation above $50,000 or consultant and the entering into of any employment
agreement with a term exceeding one (1) year;

 

(q)          any
action with respect to Tax matters (other than those assigned to the Tax Matters Member hereunder) as may from time to time be
required or advisable under the Treasury Regulations or other provisions of Applicable Law, including without limitation the making
and filing of any Tax returns or elections for United States Federal, state, local and foreign Tax purposes;

 

(r)          any
material change in the nature of the Business;

 

(s)          any
transaction or agreement between the Company’s Officers, Managers or Members (excluding Investor) or any Related Party of
the foregoing, on one hand, and the Company or any of its Affiliates (excluding the Company’s Officers and Managers and the
Members), on the other hand;

 

(t)          any
action that would, or could reasonably be expected to, have material adverse Tax consequences for any Member or any Affiliate of
any Member or material adverse regulatory consequences for any Member or any Affiliate of any member;

 

(u)          any
action that would, or could reasonably be expected to, have an adverse effect on the reputation of Investor or its Affiliates;
and

 

(v)         any
action reasonably related to, or any agreement to or commitment to, or causing any Subsidiary to agree or commit to, do any of
the actions set forth in clauses (a) through (u) above.

 

SECTION 7.06.         Matters
Requiring the Approval of the Members. The prior approval of the Members holding a majority of the then outstanding
Series A Units and the Members holding a majority of the then outstanding Series B Units shall be required before the Company or
any of its Subsidiaries may take or commit to take any of the following actions:

 

(a)          except
as otherwise specifically authorized in this Agreement, any transaction between the Company or any Subsidiary, on the one hand,
and Investor and any Affiliate of Investor or Entropy or any Affiliate of Entropy, on the other hand, on terms which are less favorable
to the Company or its Subsidiary than terms generally available to similarly situated businesses for similar transactions in similar
markets;

 

(b)          any
issuance of any Membership Units at a price less than Fair Market Value; and

 

(c)          any
deviation from the Project Budget if such deviation is the direct result of a transaction which is on terms which are less favorable
to the Company or its Subsidiary than terms generally available to similarly situated businesses for similar transactions in similar
markets.

 

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SECTION 7.07.         Managers
and Officers Insurance. The Company shall maintain directors’ and officers’ liability insurance on terms that are
customary for the nature, scope and size of the Company’s and its Subsidiaries’ businesses.

 

SECTION 7.08.         Signing
Authority.

 

(a)          The
Company shall adhere to the York Renewable Energy Partners and Affiliates Policy for Signature Authority (as may be amended from
time to time) (the “Signature Policy”).

 

(b)          The
York Signatories and the Entropy Principals (each as defined in the Signature Policy) are authorized and directed, in the name
of and on behalf of the Company, but solely to the extent permitted by the terms of the Signature Policy, to execute and deliver
any and all agreements, instruments, contracts, certificates and any other documents that create a binding obligation upon the
Company, provided such obligation is permitted by, or has been properly approved in accordance with, this Agreement.

 

(c)          The
York Signatories and Entropy Principals are authorized and directed, in the name of and on behalf of each of the Company’s
direct and indirect subsidiaries (each, a “Project SPV”), but solely to the extent permitted by the terms of
the Signature Policy, to execute and deliver any and all agreements, instruments, contracts, certificates and any other documents
that create a binding obligation upon a Project SPV, provided such obligation is permitted by, or has been properly approved in
accordance with, the terms of the Project SPV’s Limited Liability Company Agreement.

 

SECTION 7.09.         Project
Budgets.

 

(a)          Company
Management shall deliver to the Board of Managers a budget for the Project, which shall include capital expenditures, cash flow,
projected EBITDA and other financial projections (setting forth in detail the assumptions therefor) for the Project for the period
from initial development through completion and/or sale by the Company (“Project Budget”). The initial
Project Budget is attached hereto as Exhibit C. Any subsequent Project Budget shall be delivered to the Board of Managers
at least thirty (30) days prior to the end of the then-current Fiscal Year.

 

(b)          After
receipt of any Project Budget (except for the initial Project Budget), the Board of Managers shall have ten (10) days to review
it. The Board of Managers shall deliver notice to Company Management on or prior to the tenth (10th) day after receipt
of any Project Budget specifying in reasonable detail all disputed items and the basis therefor and the amount of any proposed
adjustments. No later than five (5) days after receiving the proposed adjustments to any Project Budget from the Board of Managers,
Company Management shall propose a revised Project Budget to the Board of Managers, which shall take into account the proposed
adjustments received from the Board of Managers. Any revised Project Budget shall be subject to the approval of the Board of Managers,
and, if applicable, in accordance with Section 7.06. If after the receipt of any
revised Project Budget, the Board of Managers has additional disputed amounts and proposed adjustments to such Project Budget,
the Board of Managers and Company Management shall work in good faith to resolve any such disputed amounts and proposed adjustments.

 

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ARTICLE VIII

TAX MATTERS

 

SECTION 8.01.         Partnership
for Tax Purposes. The Company will be classified as a partnership for U.S. Federal income Tax and applicable state and local
income Tax purposes, effective from the Effective Date, and neither the Company nor any Member shall take any action or position
that is inconsistent with such classification. The Subsidiaries wholly owned by the Company will be treated as disregarded entities
for U.S. Federal income Tax and applicable state and local income Tax purposes.

 

SECTION 8.02.         Capital
Accounts, Allocations and Other Tax Accounting Matters.

 

(a)          Capital
Accounts.  The Company shall maintain, for U.S. Federal, state and local income Tax purposes, capital accounts (each,
a “Capital Account”) for the Members in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv),
including, without limitation, the “minimum gain chargeback” provisions of Treasury Regulation Section 1.704-2(f) and
the “qualified income offset” provisions of Treasury Regulation Section 1.704-1(b)(2)(ii)(d).

 

(b)          Allocations
of Items of Income, Gain, Deduction and Loss.  All items of income, gain, deduction and loss of the Company as determined
for United States Federal income Tax purposes shall be allocated among the Members, and shall be credited or debited to their respective
Capital Accounts in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv), so as to ensure to the maximum extent possible
that such allocations satisfy the economic effect equivalence test of Treasury Regulation Section 1.704-1(b)(2)(ii)(i).
In accordance therewith, all items that can have economic effect shall be allocated in such a manner that the balance of each Member’s
Capital Account at the end of any taxable year of the Company (increased by the sum of (i) such Member’s “share
of partnership minimum gain” as defined in Treasury Regulation Section 1.704-2(g)(1) plus (ii) such Member’s
“share of partner nonrecourse debt minimum gain” as defined in Treasury Regulation Section 1.704-2(i)(5)) would be
positive in the amount of cash that such Member would receive if the Company sold all of its assets for an amount of cash equal
to the book value (as determined pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(g)) of such assets (reduced,
but not below zero, by the amount of nonrecourse debt to which property is subject) and all of the cash of the Company remaining
after payment of all liabilities (other than nonrecourse liabilities) of the Company were distributed in liquidation of the Company
immediately following the end of such taxable year pursuant to Article VI hereof. All items of income, gain, deduction and loss
that cannot have economic effect (including nonrecourse deductions) shall be allocated in accordance with each Member’s interest
in the Company (i.e., the “partner’s interest in the partnership” within the meaning of Section 704(b)
of the Code and the Treasury Regulations thereunder) which, unless otherwise required by Section 704(b) of the Code and the Treasury
Regulations thereunder, shall be in proportion to the Members’ respective Percentage Interests.

 

(c)          Relationship
Between Book and Tax Allocations. Items of income, gain, deduction and loss for purposes of determining the Members’
Capital Accounts (that is, for “book purposes”) shall be determined using the same methods of accounting used by the
Company in determining such items for United States Federal income Tax purposes. All items of income, gain, deduction, loss or
credit for Tax purposes shall be determined in accordance with the Code and, except to the extent otherwise required by the Code,
shall be allocated to and among the Members in the same percentages in which the Members share in corresponding book items allocated
to their Capital Accounts.

 

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(d)          Certain
Allocations with Respect to Contributed Property. In accordance with Section 704(c) of the Code and the Treasury Regulations
thereunder, items of depreciation, amortization, gain, loss and deduction with respect to any property contributed to the capital
of the Company shall, solely for Tax purposes, be allocated among the Members so as to take account of any variation between the
adjusted basis of such property to the Company for United States Federal income Tax purposes and its initial book value, such allocation
to be made by the Board of Managers in accordance with any permissible method under applicable Treasury Regulations.

 

(e)          Tax
Elections. Any elections or other decisions relating to allocations of income, gain, deduction, loss or credit hereunder or
any other Tax elections (including elections under Section 754 of the Code) that must be made at the Company level (as opposed
to by the Members) shall be made (or not made) by the Board of Managers in its sole discretion.

 

(f)          Membership
Units Held During Portion of Taxable Year. For purposes of determining the income, gain, loss, deduction or credit, or any
other items allocable to any period, such items shall be determined on a daily, monthly or other basis as determined by the Board
of Managers using any permissible method under Section 706 of the Code and the Treasury Regulations thereunder.

 

(g)          Safe
Harbor Valuation Election. Notwithstanding any provision of this Agreement to the contrary, the Board of Managers, without
the consent of any Member, is hereby authorized to elect, on behalf of the Company and each of the Members, to make the “safe
harbor election” (the “Safe Harbor Valuation Election”) described in IRS Notice 2005-43 (the “IRS
Notice”) pursuant to which each “safe harbor partnership interest” (as defined in the IRS Notice) that
is issued by the Company to a service provider (including, without limitation, any Person that is an indirect member of the Company)
while the election is in effect, in connection with services provided to the Company or any Affiliate of the Company, will be treated
as having a value equal to the “liquidation value” of such interest as determined in the manner described in the IRS
Notice. The Board of Managers is directed to make the Safe Harbor Valuation Election after the revenue procedure proposed in the
Notice is issued in final form, and may, in its discretion, make such an election or a similar election if such revenue procedure
(or guidance of a similar nature) is ultimately issued by the IRS in modified form. The Safe Harbor Valuation Election will be
binding on the Company and each Member (including any Person to whom any Membership Unit is Transferred in connection with the
performance of services) with respect to each issuance of such a “safe harbor partnership interest” while such election
is in effect. The Company and each Member (including any service provider receiving any Membership Unit in connection with the
performance of services) agree to comply with any reasonable request of the Board of Managers that, in the Board of Managers’
good faith judgment, is necessary to comply with the requirements of the Safe Harbor Valuation Election described in the proposed
revenue procedure, as incorporated in the anticipated revenue procedure or other guidance issued in final form, with respect to
all Membership Units that are issued in connection with the performance of services while such election remains in effect. Such
Safe Harbor Valuation Election will remain in effect until terminated in accordance with the rules set forth in the anticipated
IRS guidance described in the IRS Notice as ultimately issued. The Board of Managers is further authorized, in its discretion and
without the consent of any Member, to revoke a Safe Harbor Valuation Election previously made on behalf of the Company and each
of its Members; provided that such revocation may be made only with the written consent of each Member providing services
to the Company with respect to whom such revocation would result in an inclusion in such Member’s income in connection with
the issuance of an Company Interest to such Member, or in other adverse Tax consequences to such Member.         

 

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SECTION 8.03.         Tax
Returns and Information.

 

(a)          The
Board of Managers shall cause to be prepared by an independent nationally recognized accounting firm approved by Investor at the
expense of the Company and shall timely file or cause to be filed all required and necessary Tax or information returns and all
other filings for the Company (“Tax Returns”), prepared in accordance with Applicable Law.

 

(b)          The
Board of Managers shall cause, at the expense of the Company, to be provided to each Member, no later than sixty (60) days after
the end of the Company’s taxable year, a good faith estimate of the amounts to be shown on the Tax Return of the Company
(and any direct or indirect Subsidiary of the Company to the extent such information is reasonably required by such Member (or
by a holder of a direct or indirect interest therein) in order to properly comply with its Tax filing requirements) and shall cause
to be provided to each Member all other information as may be reasonably requested by such Member in order to enable such Member
(or the holder of a direct or indirect interest therein) to comply with its Tax obligations, including, without limitation, copies
of notices from Tax authorities and other Tax-related information received by the Company.

 

(c)          The
Board of Managers shall promptly notify each of the Members of any pending or threatened audit, examination, contest, litigation
or other proceedings by or against any Tax authority (a “Tax Proceeding”) in respect of the Company or
any of its Subsidiaries and shall provide each of the Members with timely and reasonably detailed accounts of developments in each
such Tax Proceeding. At their election and at their own cost and expense, each of the Members shall be entitled to participate
in such Tax Proceeding.

 

SECTION 8.04.         Tax
Matters Partner and Elections.  All of the Members hereby specifically agree and consent that Investor may, on behalf
of the Company, at any time, and without further notice to or consent from any Member, subject to the provisions of this Article
VIII, act as the tax matters partner within the meaning of Section 6231(a)(7) of the Code (the “Tax Matters Member”)
for U.S. Federal income, state or local Tax purposes and exercise any authority permitted to a tax matters partner under such Code
section and the accompanying Treasury Regulations, and take whatever steps Investor, in its reasonable discretion, deems necessary
or desirable to perfect such designation, including filing any forms and documents with the IRS.

 

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SECTION 8.05.         Consistent
Tax Treatment. The Members are aware of the income Tax consequences of the allocations made
by this Agreement and the provisions of the Code and Treasury Regulations that are incorporated herein by reference thereto and
hereby agree to be bound by and utilize those allocations as reflected on the information returns of the Company in reporting their
shares of Company income, gain, deduction, loss and credits for United States Federal and applicable state and local income Tax
purposes. Each Member agrees to report its distributive share of Company items of income, gain, loss, deduction and credit on its
separate return in a manner consistent with the reporting of such items to it by the Company.

 

ARTICLE IX

TRANSFER OF MEMBERSHIP UNITS; WITHDRAWALS

 

SECTION 9.01.         Restrictions
Applicable to All Transfers by the Members.

 

(a)          Each
Member agrees with each other Member and the Company that such Member shall not Transfer to any Person (a “Transferee”)
all or any portion of its Membership Units except as hereinafter expressly permitted in this Article IX (each such permitted
Transfer, a “Permitted Transfer”). Any purported Transfer of Membership Units other than a Permitted
Transfer shall be null and void.

 

(b)          No
Member shall Transfer any of its Membership Units at any time if such action would:

 

(i)          constitute
a violation of any Applicable Laws of any jurisdiction or a breach of the conditions to any exemption from registration of securities
under any Applicable Laws;

 

(ii)         affect
the Company’s existence or qualification as a limited liability company under the Act or any other Applicable Law that is
or might be applicable to the Company;

 

(iii)        jeopardize
the classification of the Company as a partnership for United States Federal income Tax purposes; provided that this Section
9.01(b)(iii) shall not apply to the purchase of all of the other Members’ Membership Units by Investor or the Company
pursuant to Section 9.03 or the purchase of all of Investor’s and Investor’s Affiliates’ Membership Units
by Development pursuant to Section 9.06;

 

(iv)        cause
the Project to become wholly or partly a “tax-exempt use property” within the meaning of Section 168(h) of the Code
or increase the share of the Project that is already tax-exempt use property;

 

(v)         cause
the Company to terminate as a partnership under Section 708(b) of the Code unless the non-transferring Members have been indemnified
for any adverse Tax effects;

 

(vi)        subject
the Company or any of its Subsidiaries to utility regulation to which it is not already subject; or

 

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(vii)       violate
any change in control or anti-assignment restrictions in any loan agreements, power purchase agreements or other contracts or agreements
that are material to the Business.

 

(c)          Each
Transferee of Membership Units shall execute and deliver a counterpart of this Agreement. Each such Transferee of Membership Units
shall thereafter be deemed to be a Member hereunder and shall have the benefit of, and be subject to, all of the rights, obligations
and limitations with respect to such Transferred Membership Units (including the restrictions on Transfers set forth in this Article
IX) to the same extent as the Transferring Member under this Agreement; provided, that in the event of a Transfer by
a Member to an Affiliate, such Member shall not be relieved of its obligations hereunder.

 

(d)          Any
Transfer of Membership Units hereunder shall not release the Transferring Member from any liability or obligation it may have hereunder
with respect to liabilities and obligations incurred prior to the date of such Transfer or with respect to Membership Units that
it continues to own after the date of such Transfer.

 

(e)          The
Company hereby irrevocably elects that each interest in the Company shall constitute a “security” within the meaning
of Article 8 of the Uniform Commercial Code (including Section 8-102(a)(15) thereof) as in effect from time to time in the States
of Delaware and New York.

 

(f)          Each
Transferee of Membership Units by executing and delivering a counterpart of this Agreement in accordance with Section 9.01(c)
shall be deemed to have made the following representations and warranties as a Member as of the date of such execution and delivery.

 

(i)          EACH
MEMBER HEREBY REPRESENTS AND WARRANTS TO THE COMPANY THAT: (i) THE MEMBERSHIP UNIT OF THE MEMBER IS BEING ACQUIRED FOR INVESTMENT
PURPOSES ONLY FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO OR IN CONNECTION WITH ANY DISTRIBUTION, OFFER, RESALE, OR OTHER DISPOSITION
NOT IN COMPLIANCE WITH THE SECURITIES ACT AND THE RULES AND REGULATIONS THEREUNDER AND APPLICABLE STATE SECURITIES LAWS; (ii) THE
MEMBER IS AWARE THAT IT MUST BEAR THE ECONOMIC RISK OF ITS INVESTMENT IN THE COMPANY FOR AN INDEFINITE PERIOD OF TIME BECAUSE MEMBERSHIP
UNITS IN THE COMPANY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND, THEREFORE,
CANNOT BE SOLD UNLESS THE MEMBERSHIP UNITS ARE SUBSEQUENTLY REGISTERED UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
LAWS; AND (iii) THE MEMBER IS AWARE THAT THIS AGREEMENT PROVIDES SUBSTANTIAL RESTRICTIONS ON THE ABILITY OF A MEMBER TO SELL, TRANSFER,
ASSIGN, MORTGAGE, HYPOTHECATE OR OTHERWISE ENCUMBER ITS MEMBERSHIP UNITS.

 

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(ii)         Each
Member hereby further represents and warrants to the Company and each other Member that (i) if such Member is a corporation, it
is duly organized, validly existing, and in good standing under the laws of its state of incorporation and is duly qualified and
in good standing as a foreign corporation in the jurisdiction of its principal place of business (if not incorporated therein);
(ii) if such Member is a limited liability company, it is duly organized, validly existing, and (if applicable) in good standing
under the law of the state of its organization and is duly qualified and (if applicable) in good standing as a foreign limited
liability company in the jurisdiction of its principal place of business (if not organized therein); (iii) if such Member is an
individual, such Member is of legal age to execute this Agreement and is legally competent to do so, (iv) if such Member is a partnership,
trust, or other entity, it is duly formed, validly existing, and (if applicable) in good standing under the law of the state of
its formation, and if required by law is duly qualified to do business and (if applicable) in good standing in the jurisdiction
of its principal place of business (if not formed therein); (v) such Member has full corporate, limited liability company, partnership,
trust, or other applicable power and authority to execute and deliver this Agreement and to perform its obligations hereunder and
all necessary actions by the shareholders, members, partners, beneficiaries, directors, managers, trustees, officers or other Persons
necessary for the due authorization, execution, delivery and performance of this Agreement by that Member have been duly taken;
(vi) such Member has duly executed and delivered this Agreement, (vii) this Agreement constitutes a valid and binding agreement,
enforceable against such Member in accordance with its terms; and (viii) such Member’s authorization, execution, delivery,
and performance of this Agreement do not conflict with any other agreement or arrangement to which such Member is a party or by
which it is bound. Each Member has made all filings with, given any notification to, and obtained any authorization from any Governmental
Authority that may be necessary to execute and deliver this Agreement and perform its obligations under this Agreement.

 

SECTION 9.02.         Permitted
Transfers.

 

(a)          Subject
to the provisions of this Article IX, no Member (other than Investor) may Transfer any portion of its Membership Units at
any time without the prior written consent of Investor, which consent shall not be unreasonably withheld.

 

(b)          All
Members shall otherwise comply with Section 9.01 and the following terms and conditions:

 

(i)          such
Member and its Transferee must execute, acknowledge, and deliver to the Company such instruments of Transfer and assignment with
respect to such Transfer as are in form and substance reasonably satisfactory to the Company, including the execution of this Agreement;

 

(ii)         such
Member must provide the Company with the notification required by Section 6050K(c)(1) of the Code; and

 

(iii)        if
requested by the Board of Managers, such Member must deliver to the Company an opinion of reputable counsel that such Transfer
will not cause the Company to be treated as a publicly traded partnership for United States Federal income Tax purposes or would
otherwise jeopardize the treatment of the Company as a partnership for United States Federal income Tax purposes (or such other
opinion as reasonably requested by the Board of Managers).

 

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(c)          In
the event the conditions set forth in Section 9.02(a) or (b) are not satisfied in connection with any Transfer subject
thereto, the Company shall not recognize the attempted purchaser, assignee, or Transferee for any purpose whatsoever, such Transfer
shall be null and void, the Member attempting such Transfer shall have breached this Agreement, and the Company and the other Members
shall have all remedies available for breach of contract. A Transferee shall automatically be admitted as a Member of the Company
with respect to the Transferred Membership Units upon consummation of the Transfer in compliance with this Article IX.

 

SECTION 9.03.         Right
of First Refusal.

 

(a)          If
any Member, other than Investor, holding a greater than one percent (1%) Percentage Interest in the Company proposes to Transfer
any Membership Units (the “Offeror”) (other than a Member exercising its tag-along right under Section
9.04 or a Transfer by a Member to a Permitted Transferee), such Member shall deliver to the Company and Investor (each, an
“Offeree”) a notice of such proposal (an “Offer Notice”), which Offer Notice
shall (i) specify the series and number of Membership Units, and the Percentage Interest represented thereby, proposed to be sold
(the “Offered Interests”) and the applicable purchase price, and material terms of the proposed sale,
and (ii) offer Investor first and the Company second the option to acquire all or a portion of such Offered Interests upon the
same terms and subject to the same conditions as set forth in the Offer Notice.

 

(b)          For
a period of fifteen (15) Business Days (the “Offer Period”) following the Offerees’ receipt of
such notice, the Offerees shall have the option, exercisable upon delivery of a reply notice (a “Reply Notice”)
to the Offeror, to require the Offeror to Transfer to the Offeree the Offered Interests at the price per Membership Unit specified
in the Offer Notice, it being understood that the Company shall have the right to deliver a Reply Notice only as and to the extent
that Investor shall have first declined to exercise its rights under this Section 9.03 in respect of all of the Offered
Interests.

 

(c)          In
the event an Offeree or Offerees make a timely election pursuant to Section 9.03(b) to acquire all of the Offered Interests,
as soon as reasonably practical, but in any event not more than fifteen (15) Business Days following the deadline for Reply Notices,
the Offeror and the Offeree(s) shall close the Transfer of the specified Membership Units. Upon such closing, the Offerees shall
deliver to the Offeror in immediately available funds the purchase price specified in the Offer Notice, and the Offeror shall deliver
to each such Offeree a duly executed instrument of assignment, representing the Membership Units to be Transferred.

 

(d)          In
the event no Offeree makes a timely election pursuant to Section 9.03(b) to acquire all and not less than all of the Offered
Interests, for a period of ninety (90) days following the expiration of the Offer Period, the Offeror shall be entitled, without
further obligation to the Offerees (other than those making an election pursuant to Section 9.04), to Transfer the Offered
Interests to a third party on terms and conditions substantially the same as those in the Offer Notice and at a price per Membership
Unit not less than the price specified in the Offer Notice (with the fair market value of any non-cash consideration determined
in accordance with the procedure set forth in the definition of Fair Market Value).

 

    	33

    	 

    

 

SECTION 9.04.         Tag-Along
Rights.

 

(a)          If
Investor proposes to Transfer Membership Units to any Person (other than a Transfer to a Permitted Transferee in accordance with
Section 9.02(b)), Investor shall deliver to the Company and all other Members a written notice of such proposed sale (a
“Tag-Along Notice”), specifying the series and number of Membership Units it intends to sell, such other
Member’s Pro Rata Amount of such Membership Units, the purchase price per Membership Unit (the “Tag-Along Price”)
and any other material terms and conditions of the proposed sale. Each of the other Members shall have the right to participate
in the proposed sale by Transferring at the same price and on the other terms and conditions specified in the Tag-Along Notice,
any portion of its Pro Rata Amount of the Membership Units in such sale by delivering a written notice (the “Holder
Notice”) during the thirty (30)-day period after the date of delivery of the Tag-Along Notice. Upon the expiration
of such thirty (30)-day period, Investor may consummate such proposed sale, selling the number of Membership Units indicated in
the Tag-Along Notice (less the aggregate number of Membership Units that each of the other Members has indicated an intent to sell
in such transaction by delivery to Investor of the Holder Notice) along with the Membership Units with respect to which each of
the other Members has indicated an intent to sell in such transaction by delivery of the Holder Notice, at any time up to ninety
(90) days after delivery of the Tag-Along Notice.

 

(b)          If
the Membership Units proposed to be Transferred by Investor and the other Members as indicated on the Holder Notices exceeds the
number of Membership Units to be acquired by the proposed Transferee, then each of Investor and the other Members shall Transfer
a pro rata portion (based on their respective Percentage Interests as a percentage of the aggregate Percentage Interest of all
Members selling Membership Units immediately prior to such Transfer) of such number of Membership Units that the proposed Transferee
is willing to acquire.

 

(c)          Each
Member exercising its rights under this Section 9.04 shall execute and deliver such instruments of conveyance and transfer,
including any sales or indemnification agreements, and take such actions as may reasonably be requested to consummate the proposed
sale of the Membership Units on the same terms and conditions as Investor; provided, however, that in no event shall
a Member be held liable for any breach of any other Member in respect of its representations, warranties or obligations, and the
aggregate amount of liability for each Member in connection with such Transfer shall in no event exceed the gross proceeds for
its Transferred Membership Units; provided, further, that if the Transfer giving rise to the rights under this Section
9.04 consists of at least 50% of Investor’s Membership Units, then each other Member shall be afforded the same protections
provided under Section 9.05(c) with respect to such Member’s exercise of its rights under this Section 9.04.

 

(d)          The
aggregate purchase price to be paid to a selling Member for Membership Units under this Section 9.04 will be determined
by the principal outside accountants to the Company and will equal the aggregate amount that would be distributed to such selling
Member pursuant to Section 6.04 if all of the Company’s assets and liabilities had been sold at an aggregate purchase
price equal to the product of (i) the Tag-Along Price multiplied by (ii) the number of issued and outstanding Membership Units
as of the date of the Tag-Along Notice.

 

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SECTION 9.05.         Drag-Along
Rights.

 

(a)          If
Investor proposes to Transfer all of the Membership Units owned by it and its Affiliates, to any Person other than a Permitted
Transferee (the “Drag-Along Buyer”), Investor will deliver a written notice not later than twenty (20)
Business Days prior to the proposed date of consummation of such proposed sale (a “Drag-Along Notice”)
to each Member other than Investor and any Affiliate of Investor (each, a “Drag-Along Member”), stating
that Investor wishes to exercise its right under this Section 9.05 with respect to such Transfer, and setting forth the
name and address of the Drag-Along Buyer, a description of the transaction, the proposed amount and form of the consideration,
and all other material terms and conditions offered by the Drag-Along Buyer.

 

(b)          Upon
delivery of a Drag-Along Notice, each Drag-Along Member shall be required to Transfer all of its Membership Units to the Drag-Along
Buyer, upon the same terms and conditions (including as to price (subject to Section 9.05(e)), time of payment and form
of consideration) as agreed by Investor and the Drag-Along Buyer.

 

(c)          Each
Member agrees to take all reasonable actions necessary or desirable, consistent with actions taken by Investor, to carry out the
purpose of this Section 9.05 and execute all documents reasonably requested by Investor to effect the Transfer to the Drag-Along
Buyer; provided that no Member shall be required to make representations and warranties in connection with a Transfer to
a Drag-Along Buyer other than customary representations and warranties, on a several and not joint basis, regarding (i) the power
and authority of that Member to engage in the Transfer, (ii) the existence of any material violations as a result of such Transfer
under any material agreement to which such Member is a party, (iii) the absence of any consents or approvals (other than those
which have been obtained), and (iv) that the Member has good and marketable title to its Membership Units, free and clear of all
liabilities, liens and encumbrances. If the other Members have any indemnification obligations in connection with such Transfer,
the terms and conditions of each such Member’s indemnification obligation shall be several and shall not exceed the net proceeds
to such Member in connection with such Transfer. Each Member agrees to pay its pro rata share of the expenses incurred in connection
with a Transfer pursuant to this Section 9.05.

 

(d)          If
any Drag-Along Member fails to Transfer to the Drag-Along Buyer its Membership Units to be sold pursuant to this Section 9.05,
each Member agrees that the Company may cause such Membership Units to be Transferred to the Drag-Along Buyer on the Company’s
books in consideration of the purchase price.

 

(e)          The
proceeds of any sale pursuant to this Section 9.05 shall be distributed in accordance with Section 6.04.

 

SECTION 9.06.         Right
of First Refusal on Development Project Opportunities and Development Buy-Out Right.

 

    	35

    	 

    

 

(a)          If
during the period commencing on the Effective Date and ending on the fifth anniversary of the Effective Date, Development or any
of its Related Parties proposes to sell any equity or assets relating to or in connection with the development, construction or
operation by Development or such Related Parties of an energy generation facility to a third party (a “Development
Project Opportunity”), Development or the applicable Related Party shall deliver to Entropy a written notice of such
Development Project Opportunity (a “Project Opportunity Offer Notice”), which Project Opportunity Offer
Notice shall (i) specify the applicable purchase price and material terms of the proposed sale and shall include a description
of the equity and assets to be sold, and such financial, regulatory, Tax and other information material to an investor in order
to make an investment determination with respect to the Development Project Opportunity, and (ii) offer Entropy (which for purposes
of Section 9.06(a)-(c), shall include Investor and the Related Parties of Entropy and Investor) the option to acquire all
or a portion of such Development Project Opportunity (“Project Opportunity Right of First Refusal”).

 

(b)          For
a period of twenty (20) Business Days (the “Project Opportunity Offer Period”) following Entropy’s
receipt of a Project Opportunity Offer Notice, Entropy shall have the option, exercisable upon delivery of a written reply notice
(“Reply Notice”) to Development, to require Development to grant to Entropy a sixty (60) day exclusive
right for Entropy to perform due diligence, negotiate definitive agreements to acquire and consummate the acquisition of, the equity
or the assets relating to the Development Project Opportunity, on such terms as may be agreed to by the parties following good
faith negotiations. For the avoidance of doubt, the exercise by Entropy of the Project Opportunity Right of First Refusal relating
to a Development Project Opportunity shall not obligate Entropy to acquire the assets or equity relating to such Development Project
Opportunity, which obligation shall arise only upon the execution and delivery by Entropy of a definitive acquisition or similar
agreement with respect to such equity or assets.

 

(c)          If
Entropy fails to make a timely election pursuant to Section 9.06(b) with respect to any Development Project Opportunity,
Development shall be free, without further obligation to Entropy for a period of 180 days following the expiration of the applicable
Project Opportunity Offer Period, to sell or otherwise deal with the equity or the assets relating to such Development Project
Opportunity to a third party on terms not materially more favorable to such third party than those contained in the Project Opportunity
Offer Notice. If Development fails to consummate such proposed sale or other transaction within such 180-day period, then any proposed
sale or transaction relating to such Development Project Opportunity shall again become subject to the right of first refusal obligations
and procedures set forth in Section 9.06(a)-(c).

 

(d)          At
any time on one occasion after the first anniversary date of the “Commercial Operation Date” (as defined
in the EPC Agreement), Development shall have the right to acquire all the Membership Units held by Investor and its Affiliates
(such acquisition, an “Investor Buy-Out”), on terms customary for similar transactions and acceptable
to Investor, for a cash purchase price equal to the product of (i) the appraised value of the Company (as determined in accordance
with Section 9.06(e)), multiplied by (ii) the Percentage Interest of Investor and its Affiliates on the closing date of
such acquisition.

 

    	36

    	 

    

 

(e)          To
exercise the Investor Buy-Out right, Development shall deliver to Investor a written binding irrevocable offer (“Buy-Out
Offer Notice”) to acquire all the Membership Units held by Investor and its Affiliates in the Investor Buy-Out. Promptly
upon receipt of the Buy-Out Offer Notice, promptly, Investor shall select an appraiser (the “Investor Appraiser”),
and Development shall select an appraiser (the “Development Appraiser”). Investor and Development shall
each notify the other in writing of the name and contact information of its respective appraiser. The Investor Appraiser and the
Development Appraiser shall promptly select a third appraiser, who shall be an independent seasoned appraiser experienced in the
appraisal of the business engaged in by Project LLC and the Company in the geographic markets in which they operate. The third
appraiser shall determine the fair market value of the Company, through a reasonable application of a reasonable valuation method
of the enterprise value of the Company as a going concern (taking into account net worth, prospects, market conditions, comparable
public and private companies and comparable transactions), which determination shall be binding. The Company shall cooperate with
the third appraiser and provide it with such information about its business and operations and the business and operations of Project
LLC as may be reasonably requested by the third appraiser and reasonably required to perform the appraisal. The closing of the
Investor Buy-Out shall take place within forty-five (45) days after the determination of the fair market value of the Company by
the third appraiser.

 

(f)          Notwithstanding
anything to the contrary set forth herein, Development shall have no right to effect the Investor Buy-Out at any time after Investor
has delivered a Tag-Along Notice in accordance with Section 9.04(a) or a Drag-Along Notice in accordance with Section
9.05(a).

 

(g)          As
long as Development and its Related Parties have presented, in the aggregate, to Entropy at least two Development Project Opportunities
in accordance with Section 9.06(a)-(c) during each calendar year (beginning with calendar year 2015), the purchase price
to be paid by Development for the Membership Units of Investor and its Affiliates pursuant to Section 9.06(d) shall be reduced
such that it will be equal to the product of (i) the appraised value of the Company (as determined in accordance with Section
9.06(e)), multiplied by (ii) the Percentage Interest of Investor and its Affiliates on the closing date of such acquisition,
multiplied by (iii) 0.9. If Development and its Related Parties fail to present at least two such Development Project Opportunities
during any calendar year as described in the immediately preceding sentence, then (x) such 10% discount on the purchase price to
be paid by Development for the Membership Units of Investor and its Affiliates pursuant to Section 9.06(d) shall no longer
be applicable, and (y) Investor shall no longer be entitled to a right of first refusal with respect to Project Development Opportunities
pursuant to Section 9.06(a)-(c).

 

ARTICLE X

CERTAIN OBLIGATIONS OF THE COMPANY AND THE MEMBERS

 

SECTION 10.01.         Other
Businesses; Liability and Duties.

 

(a)          Except
as otherwise expressly provided herein, each of Investor, the Investor Managers and the Investor Alternate, and their respective
Affiliates, on the one hand (together, the “Investor Entities”) and Development, the Development Manager,
and their respective Affiliates, on the other hand (together, the “Development Entities”), may engage
in or possess an interest in any other business venture of any nature or description, on its own account, or in partnership with,
or as an employee, officer, director, trustee, manager, stockholder, member or beneficiary of any other Person.

 

    	37

    	 

    

 

(b)          Without
limiting the generality of the foregoing, each of the Investor Entities and Development Entities may invest in, or provide services
to, any Person that directly or indirectly competes with the Company or any of its Subsidiaries, and none of the Investor Entities
or Development Entities will have any obligation to present any business opportunity to the Company or any of its Subsidiaries,
even if the opportunity is one that the Company or any Subsidiary of the Company might reasonably be deemed to have pursued or
had the ability or desire to pursue if granted the opportunity to do so, and the Investor Entities and Development Entities shall
not be liable to the Company or any Subsidiary of the Company or any Member for breach of any fiduciary or other duty, as a Member,
Manager, alternate Manager or otherwise, solely by reason of the fact that Investor, Development or any of the other Investor Entities
or Development Entities pursues or acquires such business opportunity, directs such business opportunity to another Person or fails
to present such business opportunity, or information regarding such business opportunity, to the Company or any Subsidiary of the
Company. The Company renounces any interest or expectancy of the Company in, or being offered to participate in any such opportunity.

 

(c)          Each
Member (for itself and on behalf of the Company) hereby, to the fullest extent permitted by Applicable Law but subject to Section
10.01(d) and (e):

 

(i)          confirms
that Investor and Development have no duty to any other Member or to the Company or any Subsidiary of the Company as a result of
this Agreement other than specific covenants and agreements set forth in this Agreement;

 

(ii)         acknowledges
and agrees that (A) in the event of any conflict of interest between the Company and any Investor Entity or Development Entity
that may from time to time arise, such Investor Entity or Development Entity may act in its best interest and (B) no such Investor
Entity or Development Entity shall be obligated to (1) reveal to the Company or any Subsidiary of the Company confidential information
belonging to or relating to the business of such Person or (2) recommend or take any action in its capacity as a Member, Manager
or alternate Manager thereof, as the case may be, that prefers the interest of the Company or any Subsidiary of the Company over
the interest of such Person; and

 

(iii)        waives
any claim or cause of action against each Investor Entity and Development Entity and any officer, employee, agent or Affiliate
thereof, that may from time to time arise in respect of a breach by any such Person of any duty or obligation disclaimed under
clauses (i) and (ii) of this Section 10.01(c).

 

(d)          Investor,
for itself and on behalf of the other Investor Entities, and Development, for itself and on behalf of the other Development Entities,
each agrees that the waivers, acknowledgments and agreements set forth in Section 10.01(c)(iii) shall not apply to any alleged
claim or cause of action against any Investor Entity or Development Entity, as the case may be, or any of their respective employees,
officers, directors, agents or authorized representatives based upon the breach or non-performance by an Investor Entity or Development
Entity of this Agreement or by any Investor Entity or Development Entity of any other agreement to which the Company and such Investor
Entity or Development Entity is a party.

 

    	38

    	 

    

 

(e)          The
provisions of this Section 10.01, to the extent that they restrict the duties and liabilities of a Member, Manager or alternate
Manager otherwise existing at law or in equity, are agreed by the Members to replace such duties and liabilities of such Member,
Manager or alternate Manager that might otherwise exist but for this Agreement.

 

(f)          
The Company, any Subsidiary of the Company and the Members shall have no rights by virtue of this Agreement in and to any other
business ventures or the income or profits derived therefrom, and the pursuit of any such venture held or engaged by any Investor
Entity or Development Entity.

 

(g)          Nothing
contained in this Agreement shall be construed as creating any fiduciary relationship of any nature between any Member and any
other Member.

 

(h)          Notwithstanding
anything in this Agreement to the contrary (including without limitation the provisions of Section 10.01(a)-(g)), the provisions
of this Section 10.1 are subject to Investor’s right of first refusal with respect to Project Development Opportunities.

 

SECTION 10.02.         Insurance.
 The Company shall maintain or cause to be maintained, with financially sound and reputable insurers, key person insurance,
public liability insurance, property damage insurance, business interruption insurance and casualty insurance as may customarily
be carried or maintained under similar circumstances by Persons engaged in similar businesses as the Company and its Subsidiaries.

 

SECTION 10.03.         Investor
Company Employee. For the avoidance of doubt, Investor shall have the right, but not the obligation,
to employ a person at the Company on commercially reasonable terms or have such employee visit the Company at reasonable times
and with reasonable notice to oversee the business and operations of the Company. Such employee shall be given full access to the
Company’s books and records and its personnel. The reasonable travel expenses of such employee shall be paid for by the Company.

 

ARTICLE XI

DISSOLUTION AND LIQUIDATION

 

SECTION 11.01.         Dissolution.
 The Company shall be dissolved and its affairs wound up:

 

(a)          at
any time there are no Members of the Company unless the business of the Company is continued without dissolution in a manner permitted
by the Act;

 

(b)          upon
the occurrence of a Liquidation Event; or

 

(c)          upon
the entry of a decree of judicial dissolution of the Company pursuant to Section 18-802 of the Act.

 

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SECTION 11.02.         Winding
Up.

 

(a)          Upon
dissolution pursuant to Section 11.01, the Board of Managers, or in the case of dissolution pursuant to Section 11.01(a),
Investor, shall appoint a liquidator. The liquidator will proceed as promptly as practicable to wind up the affairs of the Company
and make final distributions as provided in this Section 11.02. The liquidator may sell (which may include sales to Members),
and will use commercially reasonable efforts to obtain the best possible price for, any or all of the Company property. In no event,
without the approval of the Members representing at least eighty percent (80%) of the Membership Units, will a sale to a Member
be for less than fair market value. Any assets of the Company not sold by the liquidator will be deemed sold for their fair market
value. The appointment of any one or more liquidating trustees may be revoked, or a successor or additional liquidating trustee(s)
may be appointed, by the Board of Managers.

 

(b)          Upon
a Liquidation Event, all of the Company’s assets, or the proceeds therefrom, shall be distributed in the following order
of priority:

 

(i)          first,
to creditors of the Company, including any Member in its capacity as a creditor, to the extent otherwise permitted by Applicable
Law, in satisfaction of debts, liabilities and obligations of the Company;

 

(ii)         second,
to the payment of the expenses of liquidation;

 

(iii)        third,
for the setting up of any reserves that the Board of Managers, Investor or the liquidating trustee(s), as the case may be, may
deem reasonably necessary for any contingent, conditional or unmatured claims and obligations of the Company, including but not
limited to any unpaid amounts due and payable by the Company pursuant to the indemnity provisions set forth in this Agreement,
provided such amount has been agreed upon by the parties to this Agreement or determined by a court or arbitration panel of competent
jurisdiction or otherwise finally determined; and

 

(iv)        fourth,
to the Members as provided in Section 6.04.

 

(c)          Any
amount set up as a reserve pursuant to Section 11.02(b)(iii) that is subsequently released shall be distributed to the Members
in accordance with clause (iv) of Section 11.02(b).

 

(d)          At
no time during the term of the Company or upon dissolution or liquidation of the Company shall a Member with a deficit balance
in its Capital Account have any obligation to the Company or to the other Members to restore such deficit balance, except as may
be required by Applicable Law or in respect of any deficit balance resulting from a distribution made in contravention of this
Agreement.

 

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ARTICLE XII

MISCELLANEOUS

 

SECTION 12.01.         Injunctive
Relief.  It is hereby agreed and acknowledged that it will be difficult to measure in money
the damages that would be suffered if the parties hereto failed to comply with any of the obligations herein imposed on them (and
that every such obligation is material) and that in the event of any such failure, an aggrieved Person will be irreparably damaged
and will not have an adequate remedy at law. Any such Person shall, therefore, be entitled to injunctive relief, including specific
performance, to enforce such obligations (in addition to remedies at law or damages), and if any action should be brought in equity
to enforce any of the provisions of this Agreement, none of the parties hereto shall raise the defense that there is an adequate
remedy at law.

 

SECTION 12.02.         Notices.
All notices, requests, consents, agreements or other communications under this Agreement must be in writing to be effective and
will take effect (or be deemed to have been given or delivered, as the case may be): (a) on the Business Day sent, when delivered
by hand, by electronic mail (with read receipt confirmation) or facsimile transmission (with confirmation) during normal business
hours of the recipient, (b) on the Business Day following the Business Day of sending, if delivered by internationally recognized
overnight courier, in each case, to such party at its address (or number) set forth on Exhibit B or such other address (or
number) as the party may specify by notice.

 

SECTION 12.03.         Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Members and the Company, and
their respective successors and Permitted Transferees. This Agreement is personal to the Members and the Company, and neither any
Member nor the Company may assign or Transfer (except to Permitted Transferees) the rights accruing hereunder, and (except as aforesaid
or as permitted by this Agreement) performance of any duties by any Member or the Company not be delegated or assumed by any other
Person without the prior written consent of the other Members and the Company. For purposes of this Agreement, any references to
a Member shall be deemed to include such Member’s Permitted Transferees. Assignments or delegations made in violation of
this Section 12.03 shall be null and void. Nothing in this Agreement, expressed or implied, is intended to confer on any
Person other than the parties hereto (or their respective successors and permitted assigns) or any indemnified party under Section
7.04, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

SECTION 12.04.         Governing
Law; Arbitration.

 

(a)          This
Agreement and all matters arising out of or relating to this Agreement shall be governed by and construed in accordance with the
internal Laws of the State of Delaware without regard to any otherwise applicable conflicts-of-laws principles.

 

    	41

    	 

    

 

(b)          Any
controversy or claim by or between the parties related in any way to this Agreement shall be settled by binding arbitration administered
by the American Arbitration Association (the “AAA”) in accordance with its Commercial Arbitration Rules; provided
that nothing herein shall require arbitration of any claim or charge which, by Law, cannot be the subject of a compulsory arbitration
agreement. Any arbitration proceeding brought under this Agreement shall be conducted in New York City by a single arbitrator appointed
by agreement of the parties within thirty (30) days of receipt by respondent of the demand for arbitration, or in default thereof
by the AAA. Each of Investor, on behalf of itself and its Affiliates, and Development, on behalf of itself and its respective Permitted
Transferees, Related Parties, Affiliates and Subsidiaries, agrees to be bound by this arbitration clause provided that it has either
(i) signed this Agreement or an agreement that incorporates this Agreement by reference or (ii) signed any other agreement to be
bound by or cause any of its respective Permitted Transferees, Related Parties, Affiliates or Subsidiaries to be bound by this
arbitration clause. The arbitrator, in rendering an award in any arbitration conducted pursuant to this provision, shall issue
a reasoned award stating the findings of fact and conclusions of law on which it is based, and the arbitrator shall be required
to follow the Law of the state designated by the parties herein. Any judgment or enforcement of any award, including an award providing
for interim or permanent injunctive relief, rendered by the arbitrator may be entered, enforced or appealed from in any court having
jurisdiction thereof. Any arbitration proceedings, decision or award rendered hereunder, and the validity, effect and interpretation
of this arbitration provision, shall be governed by the Federal Arbitration Act, 9 U.S.C.§ 1 et seq. In any arbitration proceedings
under this Agreement, each party shall pay all of its own legal fees, including counsel fees, but AAA filing fees and arbitrator
compensation shall be paid pursuant to the AAA Employment Arbitration Rules, unless otherwise provided by Law for a prevailing
party. The parties agree that, notwithstanding the foregoing, prior to the appointment of the arbitrator, nothing herein shall
prevent any party from seeking preliminary or temporary injunctive relief against any other party in the United States Federal
or state courts of New York, County of New York. For the avoidance of doubt, any actions for permanent relief or monetary damages
shall be settled by arbitration.

 

SECTION 12.05.         Set-Off.
 Amounts owed under this Agreement or the Development and Indemnification Agreement
or the Project LLC Purchase Agreement to any Member or to any Transferee or assignee thereof by any other Member or Affiliate of
any other Member shall be subject to set-off or recoupment to the extent necessary to satisfy any unsatisfied indemnification obligations
under this Agreement, the Development and Indemnification Agreement or the Project LLC Purchase Agreement, upon written notice
to the Member against whose assets the right of set-off is being made. The exercise of such right of set-off by Investor in good
faith, whether or not ultimately determined to be justified, will not constitute a default under this Agreement, the Development
and Indemnification Agreement, the Project LLC Purchase Agreement or the Orbit Purchase Agreement. Amounts owed to the Company
or any Subsidiary of the Company by any Member or any Affiliate of any Member shall be subject to set-off or recoupment to the
extent necessary to satisfy any such unsatisfied obligations upon written notice to the Member against whose assets the right of
set-off is being made. The exercise of such right of set-off by the Company in good faith, whether or not ultimately determined
to be justified, will not constitute a default under this Agreement. Not in limitation of the foregoing, pursuant to the Project
LLC Purchase Agreement and the Orbit Purchase Agreement, Development has certain obligations to make certain payments and pay certain
fees and expenses to counterparties to such agreements, including without limitation, the development fee, the seller participation
fee, an extension fee, the management fee and other fees and expenses described in such agreements, and if Development fails to
perform its obligations under the Project LLC Purchase Agreement or the Orbit Purchase Agreement, and the Company or its Subsidiary
deems it necessary or advisable for their respective businesses or otherwise, to pay all or a portion of such fees or to perform
any of the obligations of Development under the Project LLC Purchase Agreement or the Orbit Purchase Agreement, then any such amounts
paid by the Company and/or its Subsidiary shall be subject to set-off or recoupment to the extent necessary to satisfy any such
unsatisfied obligations upon written notice to Development.

 

    	42

    	 

    

 

SECTION 12.06.         Entire
Agreement; Amendment. This Agreement (including the exhibits hereto) contains the entire agreement
among the parties hereto with respect to the transactions contemplated herein, supersede all prior written agreements and negotiations
and oral understandings, if any, and this Agreement (including exhibits hereto) may be amended or waived only upon the vote or
written consent of the Members holding at least a majority of the Membership Units, voting together as a single class, provided,
that any amendment of this Agreement that may be reasonably interpreted as adversely affecting the rights or obligations of Development
shall require the consent of Development and, provided, further, at any time Investor ceases to own a majority of
the aggregate Membership Units of the Company, any amendment that may be reasonably interpreted as adversely affecting the rights
of Investor shall require the consent of Investor. The Board of Managers shall send each Member a copy of any amendment adopted
pursuant to this Section 12.06.

 

SECTION 12.07.         No
Waiver. No failure to exercise and no delay in exercising any right, power or privilege of a Member shall operate as a waiver
or as a consent to the modification of the terms hereof unless given by that Member in writing.

 

SECTION 12.08.         Confidentiality.
Each Member shall use reasonable efforts to keep, and shall ensure that its officers and employees use reasonable efforts
to keep, from and after the Effective Date through a period of one (1) year from the date such Member no longer owns any Membership
Units, unless otherwise agreed to by the Members, confidential and shall not use except on behalf of the Company all information
(“Confidential Information”) acquired from the Company or its Subsidiaries or from the other Members
or their Affiliates pursuant to this Agreement or otherwise, including the contents of this Agreement and the identity of the
Members, except that the foregoing restriction shall not apply to any information that (a) is or hereafter becomes generally available
to the public other than by reason of any default with respect to a confidentiality obligation under this Agreement; (b) was already
known to the recipient; (c) is disclosed to the recipient by a third party who, to the recipient’s knowledge, is not in
default of any confidentiality obligation to the disclosing party hereunder; (d) was developed by or on behalf of the receiving
Member without reliance on confidential information received hereunder; (e) is disclosed by any Member to its auditors, attorneys,
financial advisors, consultants and other advisors, provided, that any such auditors and attorneys have been informed of
the confidential nature of such information, and any such financial advisors, consultants and other advisors have signed a confidentiality
agreement agreeing to treat such information as confidential; and provided further that such disclosure does
not thereby permit disclosure by such Member to others; (f) is disclosed to any partners of, investors in or advisors or consultants
to any such Member or to any prospective partner to such Member or any Affiliate of any such Member or such prospective partner
or such prospective partner’s advisors or consultants; provided that information disclosed pursuant to this clause
(f) shall only include summary financial information, historical financial results, a description of the Business and a description
of this Agreement and the Development and Indemnification Agreement; (g) to any bona fide purchaser or prospective purchaser of
Membership Units provided that such purchaser or prospective purchaser has signed a customary confidentiality and /or non-disclosure
agreement pursuant to which the Company is a beneficiary of the confidentiality provisions therein; (h) is disclosed to a regulatory
authority to the extent that disclosure is, in the party’s good faith judgment, required or appropriate; provided,
that such party requests confidential treatment for any information so disclosed or (i) is otherwise required to be disclosed
in compliance with Applicable Laws or regulations or order by a court or other regulatory body having competent jurisdiction.
Each Member further agrees not to use any Confidential Information obtained by such Member in connection with a specific transaction
being considered by the Company for any purpose other than in consideration of such transaction.

 

    	43

    	 

    

 

SECTION 12.09.         Counterparts.
 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

 

SECTION 12.10.         Headings.
 The section and other headings contained in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

 

SECTION 12.11.         Further
Assurances. From time to time, at the reasonable request of any party hereto and without further consideration, each
other party hereto shall execute and deliver such additional documents and take all such further action as may be necessary or
appropriate to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this
Agreement or to carry out the terms of this Agreement.

 

SECTION 12.12.         Survival
of Obligations. The obligations of the parties hereto under Section 7.04, Section 10.01, Section 12.01,
Section 12.04, Section 12.05 and Section 12.08 of this Agreement shall survive any expiration, termination
or cancellation of this Agreement.

 

SECTION 12.13.         No
Third Party Beneficiaries. Nothing in this Agreement shall be construed as giving any Person, other than the parties
hereto, their successors and permitted assigns, any right, remedy or claim under or in respect of this Agreement or any provision
hereof, except that (i) any Person who is entitled to indemnification pursuant to Section 7.04 and is not party to this
Agreement shall be a third party beneficiary of this Agreement to the extent required for purposes of such Section 7.04
and (ii) Entropy shall be a third party beneficiary of this Agreement to the extent required for the purposes of Article VII
and Section 9.06.

 

[Remainder
of Page Intentionally Left Blank]

 

    	44

    	 

    

 

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

  

	 	Rhode Island Energy Partners, LLC
	 	 
	 		By:	York Renewable Energy Partners LLC, its Sole Member
	 	 	 	 
	 	 	 	By:	 
	 	 	 		Name:
	 	 	 		Title:

 

Signature Page to Amended and Restated Limited
Liability Company Agreement

 

    	 

    	 

    

 

	 	York Renewable Energy Partners LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Signature Page to Amended and Restated Limited
Liability Company Agreement

 

    	 

    	 

    

 

	 	Blue Sphere Corporation
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Signature Page to Amended and Restated Limited
Liability Company Agreement

 

    	 

    	 

    

 

EXHIBIT A

MEMBERSHIP UNITS AND PERCENTAGE INTERESTS

 

	Member	 	Series and Number of

    Membership Units	 	Percentage Interest	 
	 	 	 	 	 	 
	York Renewable Energy Partners, LLC	 	7,725 Series A Units	 	77.25	%
	 	 	 	 	 	 
	Blue Sphere Corporation	 	2,275 Series B Units	 	22.75	%

 

    	A-1

    	 

    

 

EXHIBIT B

ADDRESSES FOR NOTICE

 

if to the Company or Investor:

 

c/o York Capital Management

767 Fifth Avenue, 17th Floor, New York, New York 10153

Tel 212-710-6567

Fax 646-514-9321

Attention: General Counsel

Email: mmauro@yorkcapital.com

 

if to Development:

 

Blue Sphere Corporation

301 McCullough Drive, 4th Floor

Charlotte, NC 28262

Attn: Shlomi Palas

 

with copies to:

 

Orit Marom-Albeck, Adv.

4 Berkowitz St. Level 8 (Museum Tower)

Tel-Aviv , Israel, 6423806

Tel: +972-3-7778333

Fax: +972-3-7778444

e-mail: oritma@shibolet.com

 

    	B-1

    	 

    

 

EXHIBIT C

INITIAL PROJECT BUDGET

 

    	C-1

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