Document:

Blue Sphere Corp. 10-Q 

Exhibit 10.7

 

ORBIT
ENERGY CHARLOTTE, LLC MEMBERSHIP

INTEREST PURCHASE AGREEMENT

 

among

 

ORBIT
ENERGY, INC.,

ORBIT ENERGY CHARLOTTE, LLC,

BLUE SPHERE CORPORATION, INC.,

 

and

 

CONCORD
ENERGY PARTNERS, LLC

 

dated as of

January
30, 2015

 

    	 

    	 

    

 

TABLE
OF CONTENTS

	ARTICLE I PURCHASE AND SALE	3
	ARTICLE II REPRESENTATIONS AND WARRANTIES OF SELLER	3
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF BUYER	5
	ARTICLE IV COVENANTS	6
	ARTICLE V CLOSING DELIVERIES AND CONDITIONS	9
	ARTICLE VI MISCELLANEOUS	10

 

    	 

    	 

    

 

ORBIT
ENERGY CHARLOTTE, LLC MEMBERSHIP

INTEREST PURCHASE AGREEMENT

This Agreement, dated
as of January 30, 2015 is entered into by and between Orbit Energy, Inc., a North Carolina corporation (“Seller”),
Concord Energy Partners, LLC, a Delaware limited liability company (“Buyer”), Orbit Energy Charlotte, LLC, a
North Carolina limited liability company (“Project LLC”) and Blue Sphere Corporation, a Nevada corporation (“Blue
Sphere”).

WITNESSETH:

WHEREAS, Project
LLC holds certain development and other rights necessary and appropriate to develop, construct and operate a high solids anaerobic
digestion and energy generation facility for the production of biogas and electricity in Charlotte, North Carolina (the “Project”);

WHEREAS, Seller
and Blue Sphere are parties to that certain Amended and Restated Orbit Energy Charlotte, LLC Purchase Agreement, (including Exhibit
A thereto) made and entered into as of November 19, 2014 (the “Prior Purchase Agreement”), pursuant to which
Blue Sphere purchased 100% of the limited liability company interests of Project LLC, along with certain contractual, governmental
and permitting rights relating to the Project (collectively, in addition to the 100% limited liability company interests of Project
LLC, the “Interests”) from Seller, and became the sole member of Project LLC, a copy of which agreement is attached
hereto and incorporated herein as Exhibit A. For the avoidance of doubt, the terms “Interests” as used throughout
this Agreement includes without limitation, any and all Rights (as hereinafter defined) acquired by Project LLC (or by Blue Sphere
on behalf of Project LLC) during Blue Sphere’s period of ownership;

WHEREAS, under
the Prior Purchase Agreement, (i) Blue Sphere acknowledges and agrees that it has an obligation to make certain payments to Seller,
including, without limitation, pursuant to Section 2, Section 3 and Section 4 of the Prior Purchase Agreement, including a Seller
Participation Fee, a Development Fee, an extension fee, and a Management Fee (all as defined in the Prior Purchase Agreement),
and to perform certain other obligations under the Prior Purchase Agreement (collectively, all of Blue Sphere’s obligations
to perform under the Prior Purchase Agreement as set forth therein and herein are referred to herein as the “Blue Sphere
Obligations”), and (ii) Seller has granted certain technology rights to Blue Sphere and/or Project LLC for use in the
Project;

WHEREAS, Blue
Sphere, during the period in which it was the sole member of Project LLC, on behalf of Project LLC, procured and coordinated certain
contractual and governmental and permitting rights necessary for the development and construction of the Project (collectively,
the “Rights”);

WHEREAS, Blue
Sphere, Seller and York Renewable Energy Partners LLC, a Delaware limited liability company (“York”), have been
engaged in negotiations to effect a transaction whereby Blue Sphere would contribute 100% of the Interests to Buyer and York would
make certain capital contributions to Buyer, such that Blue Sphere and York would become the sole members of Buyer, and Buyer would
become the sole member of Project LLC (“Previous Transaction”);

 

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WHEREAS, in
contemplation of the Previous Transaction and payment by Blue Sphere of the Development Fee to Seller as well as Blue Sphere’s
performance of the Blue Sphere Obligations, Seller executed and delivered a release to Buyer, pursuant to which Seller released
Buyer, York and Project LLC and their respective assets, including the Project, from any liability for any of the Blue Sphere Obligations
under the Prior Purchase Agreement, including without limitation, the Seller Participation Fee, the Development Fee, an extension
fee and the Management Fee, and granted to Project LLC a perpetual, royalty-free, nonexclusive license to use certain technology
in the Project (the “Release”, a copy of which is attached hereto and incorporated herein as Exhibit B);

WHEREAS, the
Previous Transaction has not been consummated;

WHEREAS, pursuant
to Section 3.3 of the Prior Purchase Agreement, if payment in full of the Development Fee (as defined in the Prior Purchase Agreement)
is not made by Blue Sphere on December 15, 2015, as extended to January 15, 2015, the Interests automatically revert to Seller
without further action, and effective on the date hereof, with the consent of Blue Sphere, Seller and Buyer, such reversion is
deemed to have occurred and Seller is the sole legal and beneficial the owner of the Interests;

WHEREAS, Blue
Sphere, Seller and Buyer desire, in lieu of the Previous Transaction to enter into the following transaction: (i) Seller shall
sell and Buyer shall purchase the Interests for the consideration described herein and Buyer shall become the sole member of Project
LLC; (ii) Blue Sphere, York and Buyer shall enter into a certain Development and Indemnification Agreement pursuant to which Blue
Sphere shall make certain representations and warranties regarding Project LLC, its assets and liabilities and the Project and
undertake certain covenants and indemnification obligations to Buyer relating thereto, and contribute to Project LLC certain assets
relating to the Project in exchange for consideration stated therein; (iii) York, Buyer and Blue Sphere shall enter into an amended
and restated limited liability company agreement pursuant to which York shall make certain capital contributions to Buyer as a
member of Buyer holding Series A units representing 75% of the limited liability company interests of Buyer, and Blue Sphere shall
become a member of Buyer holding Series B units representing 25% of the limited liability company interests of Buyer; and (iv)
Seller shall confirm the Release and the grant to Project LLC of the license described therein in light of the transactions contemplated
by the foregoing by its execution of this Agreement;

WHEREAS, subject
to the terms and conditions hereof, Seller desires to sell all of the Interests to Buyer, and Buyer wishes to purchase all of the
Interests from Seller; and

WHEREAS, Blue
Sphere, Seller and Buyer desire to confirm certain of their respective obligations under the Prior Purchase Agreement, including
under the Release;

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

 

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Article
I 

Purchase and Sale

Section
1.01

Purchase and
Sale.

Subject to the terms
and conditions set forth herein, at the Closing (as defined herein), Seller shall sell to Buyer, and Buyer shall purchase from
Seller, all of Seller’s right, title and interest in and to the Interests free and clear of any mortgage, pledge, lien, charge,
security interest, claim or other encumbrance (“Encumbrance”), and Seller abandons all economic and ownership
interest in the Interests in favor of Buyer, for the consideration specified in Section 1.02, and effective with the Closing, Seller
shall cease to be a member of Project LLC, consents to the admission of Buyer as the sole member of Project LLC, and Buyer shall
be admitted as the sole member of Project LLC.

Section
1.02

Purchase Price.

Buyer shall pay to
Seller $917,764 as the purchase price for the Interests (such amount referred to herein as the “Closing Purchase Price”).
Buyer shall pay the Closing Purchase Price to Seller at the Closing (as defined herein) in cash, by wire transfer of immediately
available funds in accordance with the wire transfer instructions provided by Seller to Buyer.

Section
1.03

Closing.

The closing of the
transactions contemplated by this Agreement (the “Closing”) 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, Massachusetts 02109.

Article
II 

Representations and Warranties of Seller

Seller represents
and warrants to Buyer that the statements contained in this Article II are true and correct as of the date hereof. For purposes
of this Article II, “Seller’s knowledge,” “knowledge of Seller” and any similar phrases shall
mean the actual knowledge of any director or officer of Seller, after due inquiry.

Section
2.01

Organization
and Authority of Seller; Enforceability.

Seller is a corporation
duly organized, validly existing and in good standing under the laws of the State of North Carolina. Seller has the corporate power
and authority to enter into this Agreement and the documents to be delivered hereunder, to carry out its obligations hereunder
and to consummate the transactions contemplated hereby. This Agreement and the documents to be delivered hereunder have been duly
executed and delivered by Seller, and (assuming due authorization, execution and delivery by Buyer) this Agreement and the documents
to be delivered hereunder constitute legal, valid and binding obligations of Seller, enforceable against Seller in accordance with
their respective terms, except as may be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity.

 

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Section
2.02

No Conflicts;
Consents.

The execution, delivery
and performance by Seller of this Agreement and the documents to be delivered hereunder, and the consummation of the transactions
contemplated hereby, do not and will not: (i) violate or conflict with the articles of incorporation, by-laws or other organizational
documents of Seller; (ii) violate or conflict with any judgment, order, decree, statute, law, ordinance, rule or regulation applicable
to Seller; (iii) conflict with, or result in (with or without notice or lapse of time or both) any violation of, or default under,
or give rise to a right of termination, acceleration or modification of any obligation or loss of any benefit under any contract
or other instrument to which Seller is a party; (iv) result in any violation, conflict with or constitute a default under Project
LLC’s Articles of Organization; or (v) result in the creation or imposition of any Encumbrance on the Interests.

Section
2.03

Legal Proceedings.

There is no claim, action, suit, proceeding
or governmental investigation (“Action”) of any nature pending or, to Seller’s knowledge, threatened against
or by Seller (i) relating to or affecting the Interests; or (ii) that challenges or seeks to prevent, enjoin or otherwise delay
the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise to, or serve as
a basis for, any such Action.

Section
2.04

Ownership
of Interests; Limited Liability Company Agreement.

(a)

Seller organized and
was the sole member of Project LLC from March 16, 2010, the date of its formation as a limited liability company under the laws
of the State of North Carolina, through November 19, 2014, the effective date of the Prior Purchase Agreement.

(b)

From the date of formation
of Project LLC through November 19, 2014 there was no limited liability company agreement for Project LLC.

(c)

Pursuant to the Prior
Purchase Agreement, Seller transferred and abandoned 100% of the limited liability company interests of Project LLC, including
all the economic and ownership rights in Project LLC owned by Seller to Blue Sphere, and consented to the admission of Blue Sphere
as the sole member of Project LLC, and Blue Sphere was admitted as the sole member, of Project LLC, effective November 19, 2014.

(d)

Effective on the date
hereof, pursuant to Section 3.3 of the Prior Purchase Agreement, ownership of the Interests reverted to Seller, and Seller became
and is the sole legal, beneficial, record and equitable owner of the Interests, free and clear of all Encumbrances whatsoever and
is the sole member of Project LLC.

(e)

The Interests were
issued in compliance with applicable laws. The Interests were not issued in violation of the organizational documents of Project
LLC or any other agreement, arrangement or commitment to which Seller or Project LLC was a party during the periods when the Interests
were owned by Seller and, to the knowledge of Seller, are not subject to and were not issued or otherwise transferred in violation
of any preemptive or similar rights of any person or entity.

 

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(f)

To the knowledge of
Seller, the Interests are not subject to any restriction with respect to their transferability (other than restrictions on transfer
under applicable federal and state securities laws); there are no outstanding or authorized options, warrants, subscriptions, calls,
puts, conversion or other rights, contracts, agreements, commitments or understandings of any kind respecting the Interests or
obligating Seller to sell, purchase or return any of the Interests and there are no other securities convertible into, exchangeable
for or evidencing the right to subscribe for any of the Interests.

Section
2.05

Brokers.

Except for Seller’s
agreement with Excelsior Capital, which shall be the sole obligation of Seller, no broker, finder or investment banker is entitled
to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement
based upon arrangements made by or on behalf of Seller.

Section
2.06

Non-foreign
Status.

Seller is not a foreign
person as such term is used in Treasury Regulation Section 1.1445-2.

Article
III 

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents
and warrants to Seller that the statements contained in this Article III are true and correct as of the date hereof. For
purposes of this Article III, “Buyer’s knowledge,” “knowledge of Buyer” and any similar phrases
shall mean the actual knowledge of any director or officer of Buyer, after due inquiry.

Section
3.01

Organization
and Authority of Buyer; Enforceability.

Buyer is a limited
liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. Buyer has full
limited liability company power and authority to enter into this Agreement and the documents to be delivered hereunder, to carry
out its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by
Buyer of this Agreement and the documents to be delivered hereunder and the consummation of the transactions contemplated hereby
have been duly authorized by all requisite limited liability company action on the part of Buyer. This Agreement and the documents
to be delivered hereunder have been duly executed and delivered by Buyer, and (assuming due authorization, execution and delivery
by Seller) this Agreement and the documents to be delivered hereunder constitute legal, valid and binding obligations of Buyer
enforceable against Buyer in accordance with their respective terms, except as may be limited by any bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally or by general
principles of equity.

 

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Section
3.02

No Conflicts;
Consents.

The execution, delivery
and performance by Buyer of this Agreement and the documents to be delivered hereunder, and the consummation of the transactions
contemplated hereby, do not and will not: (i) violate or conflict with the certificate of formation or limited liability company
agreement of Buyer; or (ii) violate or conflict with any judgment, order, decree, statute, law, ordinance, rule or regulation applicable
to Buyer. No consent, approval, waiver or authorization is required to be obtained by Buyer from any person or entity (including
any governmental authority) in connection with the execution, delivery and performance by Buyer of this Agreement and the consummation
of the transactions contemplated hereby.

Section
3.03

Investment
Purpose.

Buyer is acquiring
the Interests solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with,
any distribution thereof. Buyer acknowledges that the Interests are not registered under the Securities Act of 1933, as amended,
or any state securities laws, and that the Interests may not be transferred or sold except pursuant to the registration provisions
of the Securities Act of 1933, as amended, or pursuant to an applicable exemption therefrom and subject to state securities laws
and regulations, as applicable.

Section
3.04

Brokers.

No broker, finder
or investment banker is entitled to any brokerage, finder’s or other fee or commission from Seller in connection with the
transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer.

Section
3.05

Legal Proceedings.

There is no Action
pending or, to Buyer’s knowledge, threatened against or by Buyer or any affiliate of Buyer that challenges or seeks to prevent,
enjoin or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may
give rise to, or serve as a basis for, any such Action.

Article
IV 

COVENANTS

Section
4.01

Confidentiality.

From and after the
Closing, Seller shall, and shall cause its affiliates to, hold, and shall use its reasonable best efforts to cause its or their
respective representatives to hold, in confidence any and all information, whether written or oral, concerning Project LLC or Buyer,
except to the extent that Seller can show that such information (i) is generally available to and known by the public through no
fault of Seller, any of its affiliates or their respective representatives; or (ii) is lawfully acquired by Seller, any of its
affiliates or their respective representatives from and after the Closing from sources which are not prohibited from disclosing
such information by a legal, contractual or fiduciary obligation. If Seller or any of its affiliates or their respective representatives
are compelled to disclose any information by judicial or administrative process or by other requirements of law, Seller shall promptly
notify Buyer in writing and shall disclose only that portion of such information which Seller is advised by its counsel in writing
is legally required to be disclosed, provided that Seller shall use reasonable best efforts to obtain an appropriate protective
order or other reasonable assurance that confidential treatment will be accorded such information.

 

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Section
4.02

Public Announcements.

Unless otherwise
required by applicable law (based upon the reasonable advice of counsel), no party to this Agreement shall make any public announcements
in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior
written consent of the other parties (which consent shall not be unreasonably withheld or delayed), and the parties shall cooperate
as to the timing and contents of any such announcement.

Section
4.03

Transfer Taxes.

Seller shall pay,
and shall reimburse Buyer for, any sales, use or transfer taxes, documentary charges, recording fees or similar taxes, charges,
fees or expenses, if any, that become due and payable as a result of the transactions contemplated by this Agreement. 

Section
4.04

Seller Release;
Continuing Obligations of Blue Sphere.

Each of Seller and
Blue Sphere and their respective (as applicable) 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 Project LLC (all collectively referred to as the “Releasors”), (i) do hereby
release and forever discharge Project LLC, Buyer, Entropy Investment Management, LLC, York and each of their (as applicable) 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 any of the Releasees which are also Releasors (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 Interests, relating to or by reason of the Prior Purchase Agreement
and the failure of Blue Sphere 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 Seller Participation Fee, the extension fee, the Management Fee (each as defined in the Prior Purchase
Agreement), the obligation to enter into an operation agreement with Seller, 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 Blue Sphere’s failure to perform its obligations under the Prior
Purchase Agreement from the beginning of time to the date of this Agreement. Blue Sphere hereby specifically acknowledges and agrees
to its continuing responsibility to pay and perform the Blue Sphere Obligations under the Prior Purchase Agreement, which include,
without limitation, the payment of the Management Fee by Blue Sphere and the payment of the Seller Participation Fee by Blue Sphere,
as such terms are defined and described in the Prior Purchase Agreement. The foregoing release shall not apply to the other obligations
of the parties hereto set forth in this Agreement. The Blue Sphere Obligations shall be the sole responsibility and liability of
Blue Sphere, and any failure by Blue Sphere to pay or perform all of the Blue Sphere Obligations hereunder shall have no effect
on the right, title and interest in and to the Interests or the Rights acquired by Buyer hereunder.

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Section
4.05

Technology
License and Technology Incorporation.

Without limiting
the scope of the release set forth in Section 4.04 above, Seller hereby grants Project LLC an unconditional, perpetual, assignable,
royalty-free nonexclusive license to use the Technology (as defined in the Prior Purchase Agreement) for HSAD Units (as defined
in the Prior Purchase Agreement), and Project LLC (or its successor) and Buyer agrees to incorporate the Technology and HSAD Units
as part of the Project, (as defined in the Prior Purchase Agreement) subject to the following terms and conditions:

(a)

At such time as the
Technology has been fully demonstrated to meet all technical and operational parameters for use in the Project and all applicable
thresholds, requirements and criteria set forth in the Prior Purchase Agreement (including as set forth in Exhibit A to the Prior
Purchase Agreement and any other relevant exhibits and annexes), and subject to subsection (c) hereof, Project LLC shall incorporate
the Technology and the requisite HSAD Units into the Project, up to a total maximum capacity of 100 tons per day.

(b)

Blue Sphere acknowledges
and agrees that it shall be responsible for all costs of evaluating and incorporating the Technology and the HSAD Units, both direct
and indirect, including all payments to Seller and all increased costs, expenses and any damages incurred in connection with the
design, installation, integration, operation and maintenance of the Technology incorporated into the Project, which, for the purposes
of clarity, shall include the payment of the Management Fee (as defined in the Prior Purchase Agreement) to Seller.

(c)

Each of the following
shall be conditions precedent to the requirement that Project LLC incorporate the Technology and the HSAD Units into the Project
and to the continued operation of the Technology and HSAD Units as part of the Project: (1) Seller shall provide Project LLC a
Performance Guarantee, in form and substance satisfactory to Project LLC, meeting the requirements for such Performance Guarantee
under the terms set forth in Section 2.4 of the Prior Purchase Agreement; (2) the incorporation of the Technology shall have been
determined by Project LLC to (i) be capable of feasible integration within the overall engineering design, construction and delivery
agreement with Auspark LLC and any other project contractors (collectively, the “EPC Agreements”) and will not
adversely impact the Project’s performance or void any warranties under the EPC Agreements; and (ii) not reasonably be expected
to result in any material adverse impact on the Project or in Project LLC incurring any liabilities to any third party. Upon such
time as the HSAD Units are incorporated into the Project, Blue Sphere, Project LLC and Buyer shall cooperate in good faith with
Seller to enter into an operation agreement the terms of which shall govern the technical terms on which the HSAD Units will be
incorporated into the Project, which shall include, inter alia, agreement as to feedstock for the HSAD Units, auxiliary resources
to be devoted to the HSAD Units, and such other terms as the parties may agree to in good faith in order to permit Seller to perform
its obligations hereunder.

 

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(d)

For the avoidance of
doubt, in no event shall any of the Releasees have any financial obligation to Seller in connection with the Technology, and the
nonexclusive license granted by Seller hereunder shall be freely assignable to any third party in connection with a sale or transfer
of any interest in the Project or Project LLC, including any future debt or equity financing.

(e)

Seller hereby represents
and warrants to Project LLC that Seller owns or holds a valid license to any and all intellectual property relating to the Technology
and has full authority to grant the license granted hereunder and that Project LLC’s use of the Technology and the license
and/or any subsequent transfer thereof will not infringe on the rights of any third parties or give rise to any claims on the part
of any third parties.

(f)

Seller agrees to indemnify
and hold harmless Project LLC from any claims, damages, losses, liabilities and/or costs (including for the avoidance of doubt,
reasonable counsel fees) (i) relating to or arising out of Project LLC’s use of the HSAD Units, the Technology or the license
granted hereunder or (ii) against or in respect of Project LLC arising out of Seller’s conduct that occurred on or prior
to November 19, 2014. To the extent Seller lacks the funds to fulfill its indemnity obligations hereunder, Seller pledges its rights,
title and interest in, to and under the Technology to Project LLC for Project LLC’s full and unfettered use until such time
as Project LLC has been made whole and recouped any losses, costs or other out-of-pocket amounts.

Section
4.06

Further Assurances.

Following the Closing,
each of the parties hereto shall, and shall cause their respective affiliates to, 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.

Article
V 

CLOSING DELIVERIES AND CONDITIONS

Section
5.01

Seller’s
Deliveries.

At the Closing, to
the extent applicable, Seller shall deliver to Buyer the following:

(a)

The written resignation
or resignations of Seller’s representatives, if any, serving as managers, officers or any other position with or on behalf
of Project LLC, such resignations to be effective as of the date hereof.

(b)

A certificate of the
Secretary or Assistant Secretary (or equivalent officer) of Seller certifying as to (i) the resolutions of the board of directors
of Seller, duly adopted and in effect, which authorize the execution, delivery and performance of this Agreement and the transactions
contemplated hereby, and (ii) the names and signatures of the officers of Seller authorized to sign this Agreement and the documents
to be delivered hereunder.

(c)

A certificate pursuant
to Treasury Regulations Section 1.1445-2(b) that Seller is not a foreign person within the meaning of Section 1445 of the Internal
Revenue Code of 1986, as amended.

 

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Section
5.02

Buyer’s
Deliveries.

At the Closing, Buyer
shall deliver the Closing Purchase Price to Seller.

Section
5.03

Other Closing
Conditions.

Each of Blue Sphere,
York and Buyer shall have executed and delivered to the other (i) the amended and restated limited liability company agreement
of Buyer together with all exhibits thereto in form satisfactory to Buyer dated the date hereof (“Concord LLC Agreement”),
and (ii) the Development and Indemnification Agreement (“Development Agreement”) together with all exhibits
and schedules thereto and closing deliverables thereunder, in form satisfactory to Buyer and the transactions contemplated under
such agreements and documents shall have been consummated.

Article
VI 

MISCELLANEOUS

Section
6.01

Expenses.

Except as otherwise
specifically provided herein, all costs and expenses incurred in connection with this Agreement and the transactions contemplated
hereby shall be paid by the party incurring such costs and expenses.

Section
6.02

Notices.

All notices, requests,
consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given
(i) when delivered by hand (with written confirmation of receipt); (ii) when received by the addressee if sent by a nationally
recognized overnight courier (receipt requested); (iii) on the date sent by facsimile or e-mail of a PDF document (with confirmation
of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business
hours of the recipient or (iv) on the third day after the date mailed, by certified or registered mail, return receipt requested,
postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address
for a party as shall be specified in a notice given in accordance with this Section 6.02):

	If to Seller:	
        Orbit Energy, Inc.

        900 Ridgefield Dr., Suite 145

        Raleigh, NC 27609

        Telephone: 919-882-3980

        Fax: 919-954-0379

        Email:

        Attention: Chief Executive Officer

	 	 
	If to Buyer or Project LLC:	
        c/o York Capital Management

        767 Fifth Avenue, 17th Floor

        New York, New York 10153

        Telephone 212-710-6567

        Fax 646-514-9321

        Attention: Investment Counsel

        Email: mmauro@yorkcapital.com

 

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	If to Blue Sphere:	
        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

        Telephone: +972-3-7778333

        Fax: +972-3-7778444

        e-mail: oritma@shibolet.com

 

Section
6.03

Headings.

The headings in this
Agreement are for reference only and shall not affect the interpretation of this Agreement.

Section
6.04

Severability.

If any term or provision
of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other
jurisdiction.

Section
6.05

Entire Agreement.

This Agreement, together
with the Concord LLC Agreement and the Development Agreement and the exhibits and schedules thereto constitute the sole and entire
agreement of the parties to this Agreement with respect to the subject matter contained herein (the “Documents”),
and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject
matter.

Section
6.06

Successors
and Assigns.

This Agreement shall
be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. No
party may assign its rights or obligations hereunder without the prior written consent of the other parties, which consent shall
not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.

 

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Section
6.07

Third Party
Beneficiaries.

This Agreement is
for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or
implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any
nature whatsoever under or by reason of this Agreement, except that York shall be a third party beneficiary of this Agreement.

Section
6.08

Amendment
and Modification.

This Agreement may
only be amended, modified or supplemented only by an agreement in writing signed by each party hereto, provided however, if Sections
4.04 or 4.05 are not amended, a writing signed by Blue Sphere shall not be required to effect such amendment, modification or supplement.

Section
6.09

Waiver.

No waiver by any
party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving.
No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified
by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure
to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed
as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or privilege.

Section
6.10

Governing
Law.

This Agreement shall
be governed by and construed in accordance with the internal laws of the State of North Carolina without giving effect to any choice
or conflict of law provision or rule (whether of the State of North Carolina or any other jurisdiction).

 

    	12

    	 

    

 

Section
6.11

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 Charlotte, North Carolina 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 Buyer, Project LLC, Seller and Blue Sphere, 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 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 North Carolina. For the avoidance of doubt, any actions for permanent relief or monetary
damages shall be settled by arbitration.

Section
6.12

Specific Performance.

The parties agree
that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and
that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are
entitled at law or in equity. Each party hereto (i) agrees that it shall not oppose the granting of such specific performance or
relief and (ii) hereby irrevocably waives any requirements for the security or posting of any bond in connection with such relief.

Section
6.13

Counterparts.

This Agreement may
be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and
the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall
be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

[SIGNATURE PAGE FOLLOWS]

 

    	13

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto
duly authorized.

	 	Orbit Energy, Inc.
	 	 
	 	 
	 	By:
	 	 
	 	Name:
	 	Title:
	 	 
	 	 
	 	Orbit Energy Charlotte, LLC
	 	 
	 	 
	 	By:
	 	 
	 	Name:
	 	Title:

 

 

    	[LLC Member Interest Purchase Agreement – Signature Page]

    	 

    

 

	 	Concord Energy Partners, LLC
	 	 
	 	 
	 	
        By:

        York Renewable Energy
Partners LLC,

its Sole Member

	 	 
	 	 
	 	By:
	 	 
	 	Name:Richard P.  Swanson
	 	Title:  General Counsel

 

 

 

 

    	[LLC Member Interest Purchase Agreement – Signature Page]

    	 

    

 

	 	Blue Sphere Corporation
	 	 
	 	 
	 	By:
	 	 
	 	Name:Shlomi Palas
	 	Title:  CEO

 

 

 

    	[LLC Member Interest Purchase Agreement – Signature Page]

    	 

    

 

Exhibit A – Prior Purchase Agreement

 

 

 

    	 

    	 

    

 

AMENDED
AND RESTATED ORBIT ENERGY CHARLOTTE, LLC PURCHASE AGREEMENT

This amended and
restated Orbit Energy Charlotte, LLC Purchase Agreement (this “Agreement”) is made and entered into as
of November 19, 2014 (the “Effective Date”) by and between Bluesphere Corporation, a Nevada corporation
(“Purchaser”), and Orbit Energy, Inc., a North Carolina corporation (“Seller”).

RECITALS

A.

Seller has established
Orbit Energy Charlotte, LLC (the “LLC”) to implement an anaerobic digestion and energy generation project
in Concord, North Carolina or at an alternate site in North Carolina (the “Project”).

B.

In accordance with
the terms of this Agreement, Seller desires to sell and transfer 100% of its right, title and interest in, to and under the LLC
to Purchaser and Purchaser desires to purchase and accept 100% of the right, title and interest in, to and under the LLC for the
purpose of implementing the Project.

Now. therefore, the
parties hereby agree as follows.

1.

RECITALS.
The foregoing recitals are incorporated by reference as if fully set forth herein.

2.

SALE AND PURCHASE
OF THE LLC.

2.1

Terms of Sale
and Purchase. Subject to the terms and conditions of this Agreement, Seller hereby sells, assigns, conveys and transfers
to Purchaser, and Purchaser hereby purchases, accepts and receives from Seller, 100% of its right, title and interest (for the
avoidance of doubt, both economic and ownership) in, to and under the LLC in exchange for Purchaser’s payment to Seller
of (i) a development fee of $900,000 as well as reimbursement of an amount equal to an additional $17,764 in immediately available
funds pursuant to wiring instructions to be provided separately (the “Development Fee”) to be paid in
accordance with Section 3.1 below and (ii) an amount equal to thirty percent (30%) of the Project” s distributable cash
flow after the Purchaser and the party(ies) making an equity investment in the Project fully recoup their respective investment
in the Project (such investment(s) to be calculated solely as amounts expended in and for the construction of the Project) and
the Project achieves a thirty (30%) percent internal rate of return (the “IRR”), which, for the avoidance
of doubt, will take into account and be computed on the basis of any and all benefits from tax credits, depreciation and other
incentives of any nature (such payment to the Seller, the “Seller Participation Payment”). The Seller
Participation Payment shall be paid by Purchaser to Seller on a quarterly basis commencing the first quarter in which the Project
achieves the IRR. Within 45 days of the end of the fiscal year of each of the LLC, Seller will be provided the audited financials
of the LLC, including the cash distributions to the members of each of the foregoing. Purchaser hereby guarantees the Seller Participation
Payment.

 

    	 

    	 

    

 

2.2

Seller,
as the sole member of the LLC, hereby (i) admits Purchaser as a member of the LLC and (ii) abandons 100% of its ownership and economic
interest in the LLC with such abandonment to take effect immediately and without any further action after Purchaser becomes an
ownership member of the LLC. In this connection, Seller will take any and all actions necessary or helpful to record and/or reflect
ownership of the LLC in Purchaser’s name with all applicable governmental authorities and non-governmental third-parties
as soon as practicable and, going forward, as and when requested by Purchaser.

2.3

[intentionally
omitted].

2.4

HSAD License.
Purchaser shall incorporate high solid anaerobic digester units designed by Seller (the “HSAD Units”)
in the planning, implementation, design, and operation of the Project. Seller shall provide Purchaser with (i) the detailed design
and engineering of such HSAD Units as is required for all applicable permitting and fabrication purposes and (ii) a performance
guarantee in respect of the HSAD Units from a third party which shall guarantee to Purchaser that the rate of gas production from
the HSAD Units shall be equal to or greater than that from other digesters used in the Project for a period of three years from
the date on which the HSAD Units are used for power production in the Project, and, if there is a shortfall in production relative
to that of other digesters in the Project. Seller or the third party providing the performance guarantee shall pay an amount equal
to the difference to Purchaser. Purchaser will use its reasonable efforts to procure acceptance by the party(ies) financing the
inclusion of the HSAD Units in the Project of a performance guarantee directly from Seller permitting Purchaser to withhold in
escrow payments otherwise due to Seller in escrow in amount up to $100,000, against which Purchaser, at its option, could offset
amounts owed to it due to breaches of the performance guarantee (the “Orbit PG”). Any outstanding escrow amount held
by Purchaser would be released to Seller upon the earlier to occur of: (i) thirty-six (36) consecutive months without a breach
of the performance guarantee or (ii) the termination of the Operation Agreement. If Purchaser is unable to procure acceptance
of the Orbit PG, Seller shall be required to obtain a market-standard performance guarantee in form and substance reasonably acceptable
to Purchaser. Seller agrees to cover the cost of such market-standard performance guarantee up to an amount equal to what a market-standard
performance guarantee for a bankable high solid anaerobic digester technology costs. Purchaser will cover any cost to be incurred
in excess thereof. The HSAD Units shall be used by the LLC and the Project in and for the production of power, and shall be an
integral part of the Project. That certain letter agreement between Seller and Purchaser dated as of April 4, 2013 is attached
hereto as Exhibit A and its terms are hereby incorporated by reference. Neither Purchaser nor any third party shall be
permitted to operate or access the HSAD Units except pursuant to the terms of an operation agreement (the “Operation
Agreement”) to be negotiated in good faith between Seller and Purchaser prior to March 1, 2015, which shall provide,
inter alia, for the respective obligations of the Purchaser to maintain and operate the HSAD Units (including the ancillary equipment
supporting the HSAD Units) and for Seller to manage the HSAD Units. Seller shall fully cooperate in good faith to provide Purchaser
such budgets. specifications, site plans and other information that Purchaser may reasonably request from time to time in order
to accomplish the foregoing; provided that, Purchaser shall be solely responsible for the cost of the implementation, construction
and operation of the Units. Seller hereby grants Purchaser an unconditional and irrevocable, non-exclusive license to use Seller’s
high solids anaerobic digestion (HSAD) technology consisting of a proprietary process that uses an anaerobic digester design developed
by the U.S. Department of Energy and subsequently modified by Seller in combination with the proprietary bacteria to be supplied
by Seller (the “Technology”) at the Project site for so long as the Project is in operation (the “License”).
Purchaser may freely sell or transfer the License in the event of a sale or transfer of its rights in the Project to another party.

    	 

    	 

    

 

3.

DEVELOPMENT
FEE PAYMENT EXTENSION AND RETURN OF THE LLC TO SELLER.

3.1

Development
Fee Payment. Subject to Section 3.2 below, Purchaser shall pay the Development
Fee to Seller in immediately available funds in accordance with separately provided instructions by no later than December 15,
2014 (the “Payment Date”).

3.2

Extension.
Notwithstanding anything else to the contrary herein, Purchaser shall have the option to extend the Payment Date until
January 15, 2015 upon the payment of $75,000 to Seller in immediately available funds on December 15, 2014 wired to the account
of Seller pursuant to separately provided instructions.

3.3

Return of
LLC to Seller. If payment in full of the Development Fee is not made by Purchaser on the Payment Date as set forth above,
all right, title and interest in the LLC (including all permits, deposits, interconnection studies and agreements held by or related
to the LLC) shall automatically revert to Seller without any further action by either party and without cost or transfer of liability
to Seller. In the event of such a reversion: (i) Purchaser shall cooperate in good faith with Seller to provide such documentation
and to take such actions as Seller may reasonably request to evidence and effect such reversion to Seller, including, but not
limited to, abandoning its economic and ownership interest in the LLC; and (ii) Purchaser shall indemnify and hold harmless Seller
from any claims, damages, losses, liabilities and/or costs (including, for the avoidance of doubt, reasonable counsel fees) against
or in respect of the LLC due to or arising out of Purchaser’s conduct that occurred during the period of time that Purchaser
was a member of the LLC.

4.

PROJECT MANAGEMENT.

4.1

Seller
hereby agrees to manage the implementation and operation of the HSAD Units subject to any agreements entered into or to be entered
into in respect of the Project by Purchaser and the supervision and control of Purchaser. With respect to the HSAD Units, Seller
shall cooperate with Purchaser and provide relevant information pertaining to the LLC’s obligations regarding (i) reporting
to all applicable authorities, (ii) permit compliance and renewal, (iii) presence at the site and operation, service and maintenance
of the anaerobic digester plant, in each case, as required or helpful, (iv) ongoing identification of feedstock sources, compost
off-takers and other third-parties for use in the Project and (v) such other actions as may be required or desirable in the reasonable
discretion of either Seller or Purchaser. Seller shall provide such management services as a reasonably prudent operator and the
LLC shall pay Seller an annual fee of U.S. $187,500 therefor, which shall be payable in monthly installments of 1/12 thereof (the
“Management Fee”). The first such payment shall be payable on the sooner
of: (i) the first day of the month occurring after the Project is operational; or (ii) November 19, 2015, and, subject to Sections
4.2 and 4.3, shall thereafter be paid on the first day of each month for so long as the Project is operational.

 

    	 

    	 

    

 

4.2

Seller
hereby agrees to forego receipt of the full Management Fee in the second and third year from the date hereof if the transfer of
Orbit Energy Rhode Island, LLC from Seller to Purchaser pursuant to that Amended and Restated Orbit Energy Rhode Island Purchase
Agreement of even date herewith (“OERI Amended and Restated Purchase Agreement”) does not take place due solely to
(i) Seller’s failure to obtain consent to change of control in respect of the power purchase agreement dated May 26, 2011,
as amended, from the Narragansett Electric Company d/b/a National Grid; provided that, National Grid’s rejection of Seller’s
proposed transferee and/or Purchaser’s EPC contractor shall not be considered a failure of Seller to obtain consent or (ii)
failure by the owner of the site to be used by OERI in its project to provide information required to provide a lease guarantee
from the Purchaser. For the purposes of clarity, if the foregoing transfer or execution does not take place due to reasons other
than the Seller’s failure to obtain such consent (unless such failure is due to National Grid rejecting Seller’s proposed
transferee or Purchaser’s EPC contractor or failure by the OERI site owner to provide information required to provide a lease
guarantee as set forth above, then the Management Fee shall be payable in full.

4.3

Notwithstanding
anything else to the contrary herein, Seller hereby agrees that in the event that if the HSAD Units are not used in the Project
due to Seller’s fault or fail to perform and the terms of the performance guaranty are not complied with by Seller or any
third party guarantor, Purchaser’s obligation to pay the Management Fee shall be limited to four years from the date of first
payment of the Management Fee (if the HSAD Units are not used at all) or four years after the date on which the HSAD Units no longer
perform in accordance with their specifications and the terms of the performance guaranty are not complied with by Seller.

5.

REPRESENTATIONS
AND WARRANTIES OF SELLER. Seller represents and warrants to Purchaser as follows.

5.1

No
Broker-Dealer. Except for the involvement of Excelsior Capital, Seller has
not effected this transfer of the LLC by or through any intermediaries.

5.2

Title
to the LLC. Seller has valid marketable title to the LLC, free and clear of any
pledge, lien, security interest, encumbrance, claim or equitable interest (“Encumbrances”). Upon the sale and
transfer of the LLC, and payment therefor, in accordance with the provisions of this Agreement, Purchaser will acquire valid marketable
title to the LLC, free and clear of any pledge, lien. security interest, encumbrance, claim or equitable interest.

5.3

Consents.
All consents, approvals, authorizations and orders required for the execution and delivery of this Agreement and the
transfer of the LLC under this Agreement have been obtained and are in full force and effect.

5.4

Authority.
Seller has full legal right, power and authority to enter into and perform its obligations under this Agreement and
to transfer the LLC under this Agreement, and Seller is not obligated to transfer the LLC to any other person or entity. Seller
has been duly organized and is validly existing in good standing under the laws of the jurisdiction of its organization as the
type of entity that it purports to be and all corporate or other entity actions necessary to authorize the transactions contemplated
by this Agreement have been duly taken. The person(s) executing and delivering this Agreement on behalf of Seller are duly authorized
to do so.

    	 

    	 

    

 

5.5

Intellectual
Property. Seller owns or holds a valid license to any and all intellectual property
relating to the Technology and has full authority to grant the License. Purchaser’s use of the Technology and License and/or
any subsequent transfer thereof will not infringe on the rights of any third parties or give rise to any claims on the part of
any third-parties.

6.

COMPLIANCE WITH
LAWS AND REGULATIONS. The sale and transfer of the LLC and the implementation and management of the Project will be subject
to and conditioned upon compliance by Purchaser with all applicable state and federal laws and regulations at the time of such
sale, transfer, implementation and/or management.

7.

GENERAL PROVISIONS.

7.1

Successors
and Assigns; Assignment. Except as otherwise provided in this Agreement, this Agreement, and the rights and obligations
of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns. heirs, executors,
administrators and legal representatives. Each party hereto may assign its rights in, to and under this Agreement with the consent
of the other party with such consent not to be unreasonably withheld or delayed.

7.2

Governing
Law. This Agreement will be governed by and construed in accordance with
the laws of the State of North Carolina without giving effect to its body of laws pertaining to conflict of laws.

7.3

Notices.
Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will
be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of
the following: (a) at the time of personal delivery, if delivery is in person; (b) one (1) business day after deposit with an
express overnight courier for United States deliveries, or two (2) business days after such deposit for deliveries outside of
the United States; or (c) three (3) business days after deposit in the United States mail by certified mail (return receipt requested)
for United States deliveries. All notices for delivery outside the United States will be sent by express courier. All notices
not delivered personally will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified
at the address set forth below the signature lines of this Agreement or at such other address as such other party may designate
by one of the indicated means of notice herein to the other party hereto. A “business day” shall be a day, other than
Saturday or Sunday, when the banks in the city of New York are open for business.

7.4

Further Assurances.
The parties agree to execute such further documents and instruments and to take such further actions as may be reasonably
necessary to carry out the purposes and intent of this Agreement.

7.5

Titles
and Headings. The titles, captions and headings of this Agreement are included
for ease of reference only and will be disregarded in interpreting or construing this Agreement. Unless otherwise specifically
stated, all references herein to “sections” and “exhibits” will mean “sections” and “exhibits”
to this Agreement.

 

    	 

    	 

    

 

7.6

Entire
Agreement. This Agreement and the documents referred to herein constitute
the entire agreement and understanding of the parties with respect to the subject matter of this Agreement and supersede all prior
understandings and agreements, whether oral or written, between or among the parties hereto with respect to the specific subject
matter hereof.

7.7

Severability.
If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid,
illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the
parties hereto. If such clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the
remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent
not enforceable) never been contained in this Agreement. Notwithstanding the forgoing. if the value of this Agreement based upon
the substantial benefit of the bargain for any party is materially impaired, which determination as made by the presiding court
or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good
faith negotiations.

7.8

Amendment
and Waivers. This Agreement may be amended only by a written agreement executed
by each of the parties hereto. No amendment of or waiver of, or modification of any obligation under this Agreement will be enforceable
unless set forth in a writing signed by the party against which enforcement is sought. Any amendment effected in accordance with
this section will be binding upon all parties hereto and each of their respective successors and assigns. No delay or failure
to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other
instance. No waiver granted under this Agreement as to any one provision herein shall constitute a subsequent waiver of such provision
or of any other provision herein, nor shall it constitute the waiver of any performance other than the actual performance specifically
waived.

7.9

Confidentiality.
Each of Seller and Purchaser agrees that it will keep confidential and will not disclose or use for any purpose any
information about the terms or existence of this Agreement and the transactions contemplated hereby and any confidential information
obtained from the Company in connection herewith, unless any such information (a) is known or becomes known to the public in general
(other than as a result of a breach of this Agreement by the disclosing party), or (b) is or has been made known or disclosed
to the disclosing party by a third party without a breach of any confidentiality obligations by such third party; provided,
however, that either Seller or Purchaser may disclose such information (i) to its attorneys, accountants, consultants,
financiers and other professionals to the extent necessary to obtain their services in connection with the transfer and ownership
of the LLC or the implementation of the Project; (ii) to any affiliate in the ordinary course of business, provided that such
affiliate agrees to maintain the confidentiality of such information in accordance herewith; or (iii) as may be required by law,
including without limitation Purchaser’s disclosure obligations under applicable U.S. securities laws, provided that
the disclosing party promptly notifies the other parties hereto in advance of such disclosure and agrees to cooperate to take
reasonable steps to minimize the extent of any such required disclosure. Any public statements regarding the LLC or the Project
shall be mutually agreed to in writing in advance by the parties hereto, and shall in no event occur sooner than three (3) days
after the payment in full of the Development Fee. All public statements shall identify the Seller and Purchaser as joint developers
of the Project. Notwithstanding anything else to the foregoing herein, the Purchaser’s 8-K reporting this agreement, which
shall be released three days after the payment of the development fee, shall contain a copy hereof as an exhibit to such 8-K.

    	 

    	 

    

 

7.10

Counterparts;
Facsimile Signatures. This Agreement may be executed in any number of counterparts, each of which when so executed and
delivered will be deemed an original, and all of which together shall constitute one and the same agreement. This Agreement may
be executed and delivered by facsimile or other means of electronic delivery and upon such delivery the signature will be deemed
to have the same effect as if the original signature had been delivered to the other party.

7.11

Expenses.
Each party hereto shall pay its own expenses in connection with this Agreement.

7.12

Specific
Performance. Unless this Agreement has been terminated, each party to this
Agreement acknowledges and agrees that any breach by it of this Agreement shall cause any (or either) of the other parties irreparable
harm which may not be adequately compensable by money damages. Accordingly, except in the case of termination, in the event of
a breach or threatened breach by a party of any provision of this Agreement, each party shall be entitled to seek the remedies
of specific performance, injunction or other preliminary or equitable relief, without having to prove irreparable harm or actual
damages. The foregoing right shall be in addition to such other rights or remedies as may be available to any party for such breach
or threatened breach, including but not limited to the recovery of money damages.

7.13

Indemnification/Pledge.
Seller hereby agrees to indemnify and hold harmless Purchaser from any claims, damages, losses, liabilities and/or
costs (including, for the avoidance of doubt, reasonable counsel fees) (i) relating to or arising out of Purchaser’s use
of the HSAD Units, Technology or License or (ii) against or in respect of the LLC due to or arising out of Seller’s conduct
that occurred on or prior to the date hereof. To the extent that Seller lacks the funds to fulfill its indemnity obligations hereunder,
Seller hereby pledges its rights, title and interest in, to and under the Technology to Purchaser for Purchaser’s full and
unfettered use until such time as Purchaser has been made whole and recouped any losses, costs or other out-of-pocket amounts.

7.14

Costs
of Enforcement. If any party to this Agreement seeks to enforce its rights
under this Agreement by legal proceedings against any other party to this Agreement, the non-prevailing party or parties named
in such legal proceedings shall pay all costs and expenses incurred by the prevailing party or parties, including, without limitation,
all reasonable attorneys’ fees.

IN WITNESS WHEREOF,
Seller and Purchaser have each executed this Agreement as of the Effective Date.

 

 

    	 

    	 

    

 

 

	
        SELLER:

        _____________________________

         

        By:

        _____________________________

         

        Address:

        _____________________________

        _____________________________
	
        PURCHASER:

        _____________________________

         

        By:

        _____________________________

         

        Address:

        _____________________________

        _____________________________

 

 

 

    	 

    	 

    

 

 

 

    	 

    	 

    

 

Exhibit B – Release

 

 

    	 

    	 

    

 

RELEASE

THIS RELEASE (the
“Release”) is made and entered into as of the 22nd day of January, 2015 by and among Orbit Energy, Inc., a North Carolina
corporation (“Seller”), Blue Sphere Corporation, a Nevada corporation (“Blue Sphere”), and Orbit Energy
Charlotte, LLC, a North Carolina limited liability company (“Orbit”) with reference to the following facts:

A.

WHEREAS, Seller and
Blue Sphere are parties to a certain Amended and Restated Orbit Energy Charlotte, LLC Purchase Agreement, (including Exhibit A
thereto) made and entered into as of November 19, 2014 (the “Purchase Agreement”), pursuant to which Blue Sphere purchased
100% of the limited liability interests of Orbit (the “Interests”) from Seller, a copy of which agreement is attached
hereto as Exhibit A.

B.

WHEREAS, pursuant to
the Purchase Agreement, (i) Blue Sphere and/or Orbit has, or may have, an obligation to (1) make certain payments to Seller, including
without limitation, pursuant to Section 2, Section 3 and Section 4 of the Purchase Agreement, including a Seller Participation
Fee, a Development Fee, an extension fee, and a Management Fee (all as defined in the Purchase Agreement), and (2) perform certain
other obligations under the Purchase Agreement to or in connection with Seller, and (ii) Seller has granted certain rights to Blue
Sphere and/or Orbit relating to the Project;

C.

WHEREAS, Blue Sphere,
Concord Energy Partners LLC, a Delaware limited liability company (“Holdco”) and York Renewable Energy Partners LLC
(“York”) intend to consummate a transaction whereby Blue Sphere will contribute 100% of the Interests to Holdco and
York will make certain capital contributions to Holdco, such that Blue Sphere and York will become the sole members of Holdco,
and Holdco will become the sole member of Orbit (the “Transaction”) pursuant to the terms of a certain Contribution
Agreement by and among Holdco, York and Blue Sphere, a certain Contribution Agreement by and between Holdco and Blue Sphere and
a certain Amended and Restated Limited Liability Agreement of Holdco (the “Transaction Documents”);

D.

WHEREAS, a condition
of the Transaction is that Blue Sphere have good title to the Interests, free and clear of all encumbrances of any kind or nature,
and that Orbit have no liability or obligation to Seller under the Purchase Agreement nor that any of Orbit’s assets nor
any assets relating to the Project (as defined below) be subject to any liability or obligation under the Purchase Agreement, other
than as expressly stated herein;

E.

WHEREAS, a further
condition of the Transaction is that all of the development rights, 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 Charlotte, North Carolina (the “Project”) be owned by Orbit and not by Blue Sphere or any affiliate
of Blue Sphere;

 

    	- 1 -

    	 

    

 

F.

WHEREAS, other than
as expressly stated herein, Orbit wishes (i) to be released from any and all and all obligations to Seller with respect to the
Purchase Agreement, including without limitation, the payment of such Development Fee, extension fee, Seller Participation Fee
and Management Fee, the disclosure or delivery of financial or other information relating to Orbit or the Project to Seller, and
the obligation of Orbit or the Project to use any technology of Seller; (ii) that all of the assets relating to the Project be
released from all obligations under the Purchase Agreement by Seller and Blue Sphere, and (iii) that all liens, remedies or liabilities
of Seller, whenever arising, arising out of such obligations or the failure of Blue Sphere or Orbit to perform any of such obligations
be released by Seller and Blue Sphere with respect to Orbit, and each of Seller and Blue Sphere agrees to such releases;

THEREFORE, for valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound hereby, the parties
hereto mutually agree as follows:

1.

Seller Release.
Effective upon the consummation of the Transaction, each of Seller and Blue Sphere and their respective (as applicable) 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 Orbit (all collectively
referred to as the “Releasors”), (i) do hereby release and forever discharge Orbit, Holdco, Entropy Investment Management,
LLC, York and each of their (as applicable) 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 any of the Releasees which are also Releasors (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 Interests, relating to or by reason
of the Purchase Agreement and the failure of Blue Sphere to perform any obligations under the Purchase Agreement, or the failure
of Orbit or the Project to perform any of its obligations or obligations imputed to it under the Purchase Agreement, including
to pay the Development Fee, the Seller Participation Fee, the extension fee, the Management Fee (each as defined in the Purchase
Agreement), the obligation to enter into an operations agreement with Seller, or the failure to disclose or deliver financial information
about the Project or Orbit, 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 Blue Sphere’s failure to perform its obligations under the Purchase Agreement,
including without limitation, any reversion of the Interests to Seller pursuant to Section 3.3 of the Purchase Agreement, from
the beginning of time to the date of this Agreement. The foregoing shall not apply to the obligations of the parties hereto set
forth in this Release.

2.

Orbit Technology
License and Incorporation. Without limiting the scope of the release set forth in Section 1 above, Seller hereby grants
Orbit an unconditional, perpetual, assignable, royalty-free nonexclusive license to the Technology (as defined in the Purchase
Agreement) for HSAD Units (as defined in the Purchase Agreement), and Orbit (or its successor) agrees to incorporate the Technology
and HSAD Units as part of the Project, (as defined in the Purchase Agreement) subject to the following terms and conditions:

 

    	- 2 -

    	 

    

 

a)

At such time as the
Technology has been fully demonstrated to meet all technical and operational parameters for use in the Project and all applicable
thresholds, requirements and criteria set forth in the Purchase Agreement (including as set forth in Exhibit A to the Purchase
Agreement and any other relevant exhibits and annexes), and subject to subsection (c) hereof, Orbit shall incorporate the Technology
and the requisite HSAD Units into the Project, up to a total maximum capacity of 100 tons per day.

b)

Blue Sphere acknowledges
and agrees that it shall be responsible for all costs of evaluating and incorporating the Technology and the HSAD Units, both direct
and indirect, including all payments to Seller and all increased costs, expenses and any damages incurred in connection with the
design, installation, integration, operation and maintenance of the Technology incorporated into the Project, including as more
fully set forth in the Transaction Documents, which, for the purposes of clarity, shall include the payment of the Management Fee
(as defined in the Purchase Agreement) to Seller.

c)

Each of the following
shall be conditions precedent to the requirement that Orbit incorporate the Technology and the HSAD Units into the Project and
to the continued operation of the Technology and HSAD Units as part of the Project: (1) Seller shall provide Orbit a Performance
Guarantee, in form and substance satisfactory to Orbit, meeting the requirements for such Performance Guarantee under the terms
set forth in Section 2.4 of the Purchase Agreement; (2) the incorporation of the Technology shall have been determined by Orbit
to (i) be capable of feasible integration within the overall engineering design, construction and delivery agreement with Auspark
LLC and any other project contractors (collectively, the “EPC Agreements”) and will not adversely impact the Project’s
performance or void any warranties under the EPC Agreements; and (ii) not reasonably be expected to result in any material adverse
impact on the Project or in Orbit incurring any liabilities to any third party.

d)

For the avoidance of
doubt, in no event shall any of the Releasees have any financial obligation to Seller in connection with the Technology, and the
nonexclusive license granted by Seller hereunder shall be freely assignable to any third party in connection with a sale or transfer
of any interest in the Project or Orbit, including any future debt or equity financing.

e)

Seller hereby represents
and warrants to Orbit that Seller owns or holds a valid license to any and all intellectual property relating to the Technology
and has full authority to grant the license granted hereunder and that Orbit’s use of the Technology and the license and/or
any subsequent transfer thereof will not infringe on the rights of any third parties or give rise to any claims on the part of
any third parties.

f)

Seller agrees to indemnify
and hold harmless Orbit from any claims, damages, losses, liabilities and/or costs (including for the avoidance of doubt, reasonable
counsel fees) (i) relating to or arising out of Orbit’s use of the HSAD Units, the Technology or the license granted hereunder
or (ii) against or in respect of Orbit arising out of Seller’s conduct that occurred on or prior to November 19, 2014. To
the extent Seller lacks the funds to fulfill its indemnity obligations hereunder, Seller pledges its rights, title and interest
in, to and under the Technology to Orbit for Orbit’s full and unfettered use until such time as Orbit has been made whole
and recouped any losses, costs or other out-of-pocket amounts.

 

    	- 3 -

    	 

    

 

3.

Indemnification
by Blue Sphere. Blue Sphere shall indemnify, defend and hold harmless the Releasees against all actions, costs, damages,
disbursements, expenses, liabilities, losses, deficiencies, obligations, penalties or settlements 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 (“Losses”),
that may be imposed on or otherwise incurred or suffered by any of the Releasees as a result of the Purchase Agreement, or as a
result of incorporation of the Technology or the HSAD Units into the Project under Section 2 above, except if such Losses are directly
resulting from a breach by such Releasee of any of its obligation under the Transaction Documents.

4.

Third Party Beneficiaries.
Each of Holdco, York and Entropy Investment Management, LLC shall be third party beneficiaries under this Release.

5.

Governing Law.
This Release shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, without reference
to conflict of laws principles.

6.

Counterparts.
This Release may be executed in several counterparts and all such executed counterparts shall constitute one agreement, which shall
be binding on the parties notwithstanding that all parties are not signatories to the same counterpart or counterparts.

7.

Further Assurances.
The parties hereby agree to execute, acknowledge and deliver such other statements, certificates, affidavits, instruments, and
other documents as may be reasonably requested by the other party in order to confirm, perfect, evidence or otherwise effectuate
the assignment and assumption effected hereby.

IN WITNESS WHEREOF,
the parties have executed this Release for delivery as of the date first written above.

	
        ORBIT ENERGY, INC.:

         

         

        By:________________________________

        Print Name: Anwar Shareef

        Title: CEO
	
        ORBIT ENERGY CHARLOTTE, LLC:

         

         

        By:________________________________

        Print Name: Shlomi Palas

        Title: CEO

 

 

    	- 4 -Blue Sphere Corp. 10-Q

 

Exhibit 10.14

 

FRAMEWORK EBITDA GUARANTEE AGREEMENT

Entered on the date of July 17, 2015

Between

AUSTEP S.p.A. (“Austep”),
registered identification number 11620890159, a company incorporated under the laws of Italy directly or indirectly through any
of its subsidiaries, with registered office in Milan (Italy), Via Mecenate 76/45, represented by its legal representative PhD.
Alessandro Massone, CEO;

and

Bluesphere Corporation (“Bluesphere”),
registered identification number 98-0550257, a company incorporated under the laws of Nevada directly or indirectly through any
of its subsidiaries, with registered office in 301 McCullough Drive, 4th Floor Charlotte, NC 28262 represented by its
legal representative Mr. Shlomo Palas, CEO;

(AUSTEP and Bluesphere will be referred
to under this Agreement individually as a “Party” and together as the “Parties”)

Whereas

a)

Austep is an Italian based technology
provider and an EPC contractor of biogas plants, specializing in the design, construction, operation and the servicing of anaerobic
digestion plants within Italy and worldwide;

b)

Bluesphere, a listed company specializing
in the Waste-to-Energy (W2E) industry, has reached a strategic decision to acquire already built and under operation anaerobic
digestion plants (hereinafter the “AD Plants” or “Plants”), within the Italian market (hereinafter
the “Territory”) which were built and commissioned until the 31st of December 2012, based on the
subsidizing policy then existing, of 280 €/Mwh feed in tariff, valid for 15 (fifteen) years;

c)

the potential AD Plants for acquisition
are all capable of producing up to 999kw/h of electricity and heat, based on the above feed in tariff;

d)

the AD Plants were mostly facing
operational, technical and functional problems, and as a result were unable to meet the expected financial results as originally
anticipated by the developers of the AD Plants;

e)

each AD Plant is usually built,
owned and managed through a limited liability Italian SPV company (“Plant SPV”);

f)

Bluesphere is handling negotiations
with several owners of Plants SPV in order to acquire either the entire outstanding capital of the Plant SPV or a controlling participation
into the Plant SPV, and prior to the entering of binding purchase agreements, with the Plant SPV owners, Bluesphere is interested
in securing the future EBITDA of the Plants, should Bluesphere choose to acquire the relevant Plant SPV owning the Plants or some
of them;

 

    	 

    	 

    

 

g)

Austep, due to its in-depth expertise
in operating and servicing of such Plants, and based on a preliminary inspection of the AD Plants whose acquisition Bluesphere
is negotiating, states that under a strict and in-depth operational supervision of the acquired Plants, the EBITDA of the Plants
could be guaranteed for a period of time, starting 6 months following the Purchase Date, and ending at the end of the Power Purchase
Agreement period;

Now, therefore,

the Parties have agreed to enter into
a cooperation agreement setting the guidelines for the operation of the acquired Plants and the guarantee of EBITDA:

1.

Preambles, Annexes and Interpretation

1.1.

The Preambles
to this Agreement and its Annexes comprise an integral part thereof.

2.

Definitions

For purpose of this Agreement,
the following terms, set alphabetically, have the meanings set forth below:

2.1.

“AD
Plant” or “Plant” – anaerobic digestion plants in Italy, whose purchase Bluesphere
i) is negotiating and it has been inserted in the list of Plant’s under Bluesphere’s review provided for in
Section 13.8 hereinafter or ii) has completed, as the case may be; Purchase can also mean purchasing stake in the entity
owning the Plant;

2.2.

“Agreement”
– This Framework EBITDA Guarantee Agreement entered into between Austep and Bluesphere, and its Annexes;

2.3.

“Annual
EBITDA Review Process” – A review process performed at the end of each calendar year for the determination
of the annual EBITDA;

2.4.

“Austep
DD Period” – A period of 4 (four) weeks, beginning on the date of Bluesphere’s entrance into a binding
LOI, during which Austep shall perform a technical DD, and issue a Report;

2.5.

“DD”
– Due diligence; the analysis of Austep of an AD Plant in preparation for the purchase
of the Plant SPV by Bluesphere; 

2.6.

“EBITDA”
– An accounting-based term meaning earnings before interest, tax, depreciation, and amortization of the reviewed or inspected
entity, based on generally accepted accounting principles as specified in Annex A to this Agreement;

2.7.

“Event
of Force Majeure” – as defined in Section 14;

2.8.

“GSE”
– Gestore dei Sistemi Energetici;

2.9.

“Guaranteed
Plant EBITDA” – The Plant EBITDA which Austep guarantees to each Plant - pursuant to a Guaranteed EBITDA Agreement
as provided for by this Agreement - for the period beginning 6 (six) months following the Purchase Date, and ending at the end
of the Power Purchase Agreement;

2.10.

“Guaranteed
Plant EBITDA Agreement” – An agreement entered into between each Plant SPV and Austep, as the operator substantially
in the form attached hereto under Annex B hereto;

2.11.

“Initial
Expected Plant EBITDA” – The Plant EBITDA which Austep expects to be able to reach for each Plant pursuant
to the relevant EBITDA Guarantee Agreement for the Initial Period;

 

    	 

    	 

    

 

2.12.

“Initial
Period” – A period of 6 (six) months, starting on the Purchase Date of a Plant SPV by Bluesphere;

2.13.

“LOI”
– Letter of intent with an Owner outlining a basic agreement between the Owner and Bluesphere to purchase the Plant SPV before
a final and conclusive agreement is reached;

2.14.

“Negative
Notice” – A notice issued by Bluesphere rejecting the proposed acquisition of a Plant SPV following a DD performed
by Austep;

2.15.

“Owner”
– the owner/s of a Plant SPV purchased, or contemplated for purchase by Bluesphere;

2.16.

“Positive
Notice” – A notice issued by Bluesphere accepting the proposed acquisition of a Plant SPV based on the Report;

2.17.

“Power
Purchase Agreement” – the Power Purchase Agreement in force for each Plant between GSE and the said relevant
Plant SPV;

2.18.

“Purchase
Date” – the date of completion of all conditions necessary to bring the purchase of a Plant SPV into effect;

2.19.

“Regulatory
Requirements” – all regulatory provisions, instructions, permits, and licenses, pertaining to the operation
and maintenance of the Plant, as may be applicable from time to time, including without limitation, treatment of sewage, land and
air pollution, emission standards, noise regulation, biomass stock PPA requirements etc.;

2.20.

“Report”
– A report prepared and issued by Austep to Bluesphere, pursuant to performance of DD, covering the issues stipulated in
this Agreement and any additional issues Austep thinks should be included in the DD process;

2.21.

“Term”
– the term of the Agreement;

2.22.

“60
Day DD Period” – A 60 (sixty) day period, stipulated in the LOI, and beginning on the date of Bluesphere’s
entrance into a binding LOI with the Owner, during which Bluesphere negotiates a purchase agreement with the Owner regarding the
Plant SPV.

3.

Performance of DD and Issuance
of a Report

3.1.

Bluesphere is
currently handling negotiations with several Owners of Plant SPVs owning and managing Plants with the characteristics detailed
under Annex C.

3.2.

Within 5 Working
Days following the date in which Bluesphere enters into a binding LOI, Bluesphere shall send a written notice to Austep i)
informing Austep of the execution of such LOI, ii) providing Austep with preliminary information thereof such as and including:
the commissioning date of the Plant, the location, the technology based on which it was built, and the mix of substrates used until
then as Bluesphere was informed by the Owner of the AD Plant at the time of preparing the abovementioned written notice to Austep
and iii) specifying the date when Austep DD activities should start.

4.

Austep
DD and Report

4.1.

During Austep
DD Period, Austep shall perform a technical DD of the Plant and shall send Bluesphere a written Report covering the following issues:

 

    	 

    	 

    

 

·

a technical
review of the Plant covering the existing technology used in the Plant;

·

an analysis
of the expected lifespan of the different components used in the Plant;

·

the expected
service and maintenance costs of the Plant.

4.2.

The Report shall
also contain the necessary improvements to be performed in order to reach the Guaranteed Plant EBITDA. The Report shall include
the technical description of the required improvements, their expected budget and the Guaranteed Plant EBITDA. It is agreed between
the Parties that expenses arising from regulation introduced by the authorities following the date in which Austep has performed
its technical DD and any expenses and/or costs deriving directly from an Event of Force Majeure shall not be covered under the
definition of the Guaranteed Plant EBITDA.

4.3.

The Report shall
contain a written confirmation that the Plant is formally in full compliance with all applicable Regulatory Requirements in force
at the moment of issuance of the confirmation or the necessary improvements to be performed in order to reach full compliance.

4.4.

Austep acknowledges
that Bluesphere will decide whether or not to purchase a Plant SPV based first and foremost on the Report, the Guaranteed Plant
EBITDA and the terms of the Guaranteed Plant EBITDA Agreement to be entered with the relevant Plant SPV.

4.5.

At
the end of Austep DD Period, and before the elapse of the 60 Day DD Period, the Parties shall negotiate in good faith and agree
on: 

4.5.1.

the operational,
service and maintenance costs and any other running costs to be paid by the Plant SPV to Austep during the Initial Period and the
Initial Expected Plant EBITDA;

4.5.2.

the turnover
and the Guaranteed Plant EBITDA to be reached by the Plant owned by the newly acquired Plant SPV.

4.6.

The terms and
conditions of the Guaranteed Plant EBITDA Agreement to be executed by each relevant Plant SPV simultaneously with its acquisition
by Bluesphere.

4.7.

The Guaranteed
Plant EBITDA Agreement shall contain the explicit remuneration to be paid to Austep during the Initial Period, the agreed turnover
and Guaranteed Plant EBITDA based on the following principles:

 

    	 

    	 

    

 

4.7.1.

Each Plant
SPV shall pay to Austep an amount every month, to be calculated as indicated in Annex A for Plant’s operation,
services and maintenance – including, without limitation: feedstock supply, consumable, equipment and all periodic, preventive
and breakdown maintenance, treatments, and services (such as overhaul; repair of generators and engines, and of any other system
in the Plant, regardless of the cause or reason for the breakage), as will be set forth in a periodic maintenance programme –
against monthly invoices to be submitted by Austep (“Austep Remuneration”). It is agreed that monthly invoices
regarding the Austep Remuneration will be paid by each Plant SPV for work and expenses actually performed and incurred by Austep,
within 60 (sixty) days from the invoice date, subject to the provision of Section 4.7.8, and no more than 7 (seven) days following
the date on which the Plant SPV actually receives the applicable payment from GSE for the month corresponding to that for which
each such invoice was issued, with the exception of an amount equal to the VAT accrued on each invoice (each a “Delayed
Amount”), up to an aggregate maximum amount of € 170,000.00 per each SPV, that will be paid within 18 (eighteen)
months from the payment date of each invoice according to procedure indicated in following Section 10.6 hereinafter.

4.7.2.

Notwithstanding
the above, Austep will be entitled to issue at the end of the first month of activity an invoice for the overall Austep Remuneration
amount for the first 4 (four) months of operation following the execution of each Guaranteed Plant EBITDA Agreement (the “First
Invoice”). The payment terms of the first invoice, subject to the applicable Delayed Amount, shall be: 1⁄4 at 60
(sixty) days invoice date, 1⁄4 at 90 (ninety) days invoice date, 1⁄4 at 120 (one hundred twenty) days invoice date and
1⁄4 at 150 (one hundred fifty) days invoice date all subject to section 4.7.8 and provided however, that the payments received
by the relevant Plant SPV from GSE are sufficient to cover each relevant payment instalment. The First Invoice amount shall be
adjusted prior to payment of each instalment to reflect the actual work and expenses performed and incurred by Austep during the
period corresponding to the applicable instalment.

4.7.3.

Should Austep
choose to request a short term financial advance on the First Invoice, Bluesphere undertakes to cause the relevant Plant SPV to
bear and reimburse to Austep the interest accrued on the financing and charged by the financing entity, estimated at approximately
€ 2,500.00 for each relevant Plant SPVs and all subject to the advance written approval of Bluesphere.

4.7.4.

All
subsequent invoices of the Austep Remuneration shall be in accordance to Section ‎4.7.1
above. For the avoidance of any doubt, current payments made by the SPV on a monthly basis shall be inclusive of VAT.

4.7.5.

Without derogating
from any other provision in each relevant Guaranteed Plant EBITDA Agreement, at the end of each calendar year the Parties shall
conduct the Annual EBITDA Review Process and act accordingly.

4.7.6.

Without derogating
from Sections 4.8 and 4.10 hereinafter, the Austep Remuneration shall be the sole payments to Austep for all its costs, expenses,
services etc. Austep will not be entitled to any additional payment whatsoever.

 

    	 

    	 

    

 

4.7.7.

Should Bluesphere
decide to acquire a Plant SPV and the Parties reached a Guaranteed Plant EBITDA Agreement on the relevant Plant and Bluesphere
as stakeholder/shareholder in the Plant SPV, shall have the power according to the relevant SPV’s corporate bylaws, including
shareholders agreements – Bluesphere undertakes to cause each Plant SPV to enter into the relevant Guaranteed Plant EBITDA
Agreement negotiated with Austep at the consummation of the closing. In any other case where Bluesphere does not have such power,
Bluesphere undertakes to use its best efforts to procure the execution of the Guaranteed Plant EBITDA Agreement.

4.7.8.

To dispel any
doubt, all payments due to Austep shall be made only from proceeds received from GSE for the generation of electricity in the Plant
for the period of each invoice and, after the Initial Period, following and subject to the Guaranteed Plant EBITDA. After the Initial
Period, in the event the payments received from GSE are not sufficient to cover both the Guaranteed Plant EBITDA and the payments
to Austep, and provided that such insufficiency of payments does not result from Austep’s fault, those payments to Austep
- as may be available after full coverage of the Guaranteed EBITDA - shall be postponed until the proceeds received from GSE shall
enable to cover the Guaranteed Plant EBITDA (the “Postponed Payments”).

4.8.

Should the Parties
fail to reach a Guaranteed Plant EBITDA Agreement for specific Plant under Sections 4.6 and 4.7, Austep shall be entitled to receive
an agreed sum of i) € 2,500.00 per the said Plant in the event that Bluesphere does not enter into an agreement regarding
the specific Plant with a third party, and ii) € 5,000.00 in the event that Bluesphere enters into an agreement regarding
the specific Plant with a third party other than Austep.

4.9.

Within 2 (two)
weeks following the date of completion of the DD performed by Austep, taking into account the results of the DD performed by Austep
and the Report, Bluesphere shall decide whether it is willing to acquire Plant SPV owning the inspected Plant or whether it shall
issue a Negative Notice.

4.10.

Once
a Negative Notice is issued by Bluesphere, and Bluesphere has decided not to acquire the Plant SPV solely for legal reasons or
financing issues that are not results of the technical conclusions Bluesphere shall pay Austep for the DD
performed by Austep an amount equal to € 5,000.00, per each Plant which has been rejected by Bluesphere.

4.11.

To dispel any
doubt, Bluesphere shall be exempt from paying the abovementioned agreed sum to Austep, if the reason for rejecting the acquisition
is due to technical reasons.

4.12.

Once Bluesphere
has issued a Positive Report announcing the Owner of its commitment to enter into a definitive purchase agreement with regards
to a Plant SPV, Bluesphere shall issue within 3 (three) business days a written confirmation to Austep with respect to the following
issues:

4.12.1.

a written confirmation
of the improvements approved for investments;

4.12.2.

inform Austep
of the starting date of the Initial Period;

 

    	 

    	 

    

 

4.12.3.

provide Austep
with all the detailed documentation and information reasonably requested by Austep and available to Bluesphere enabling Austep
to operate the Plant owned by the Plant SPV in an efficient and prudent way.

5.

Implementation of New Recipes

5.1.

The Parties
agree that the implementation of new recipes, and the normalized operation necessary to reach the Guaranteed Plant EBITDA shall
not last more than the Initial Period, during which Austep shall strive to regulate the feed in process, and the operation of the
Plant.

6.

Austep’s Obligations

6.1.

Following the
Purchase Date and the execution of the Guaranteed Plant EBITDA Agreement with each Plant SPV, Austep shall become the sole responsible
party for the, operation, maintenance, and supervision of the Plant, including but not limited to the supply of substrates thereof:

6.1.1.

During the
Initial Period the Initial Expected Plant EBITDA shall apply and Austep shall implement the improvements approved by Bluesphere,
and the new recipe for reaching the Guaranteed Plant EBITDA. To dispel any doubt, the improvements suggested by Austep for Bluesphere’s
approval shall contemplate the repair of any deficiency in the original construction of the Plant, to meet all applicable Regulatory
Requirements in force at the date of the release of the DD report indicated in Section 4.2, and to ensure the operation of the
Plant in compliance with the technology provider the manual of operation.

6.1.2.

Following the
Initial Period, the Guaranteed Plant EBITDA, shall be in full effect, and Austep shall have no right to claim for additional charges
exceeding those specified in this Agreement, in Annex C and in Annex A for the purpose of complying with the Guaranteed
Plant EBITDA, and for any other purposes other than for an Event of Force Majeure or changes of regulations which have been introduced
following the DD date, unless agreed in writing between the Parties of each relevant Guaranteed Plant EBITDA Agreement.

6.1.3.

Austep shall
be bound to operate the Plant in best practices and a prudent manner, and in full compliance with all the technical requirements
of the equipment manufacturers and suppliers and all rules and regulations, in force from time to time including but not limited
to the covenants and obligations stipulated in the permits granted to each SPV for the construction and operation of the Plants,
environmental, health and safety regulations. Austep shall promptly inform in writing Bluesphere of the entrance into force of
any new rule and/or Regulatory Requirements that may affect the Plant operation specifying the improvements to be made to the Plant
in order to comply with the new requirements and their costs. Once obtained Bluesphere approval, Austep shall perform the indicated
improvements and Bluesphere shall reimburse the costs to Austep at the conditions agreed between the Parties. Should Bluesphere
not approve the improvements, Austep will be exempted from full compliance liability provided for in Section 6.1.4 hereinafter.

 

    	 

    	 

    

 

6.1.4.

To dispel any
doubt, and without derogating from the aforesaid, Austep shall bear the sole and complete responsibility for full compliance with
any and all Regulatory Requirements pertaining to the operation of the Plant, as applicable from time to time and will be responsible
to pay any fines imposed by the authorities for lack of compliance. 

7.

Annual Plant EBITDA Review
Process

7.1.

The Guaranteed
Plant EBITDA Agreements to be entered into by AUSTEP and each Plant SPV shall contemplate the annual Plant EBITDA Review Process
specified in the following Sections.

7.2.

The financial
statements of each Plant will be audited by an Auditor nominated by Bluesphere. Austep shall have the right to review the financial
reports prepared by the nominated Auditor, and contest the Plant EBITDA as presented by the nominated Auditor.

7.3.

At the end of
each calendar year the Parties will review the results of operation of the Plant as presented and audited by the appointed Auditor,
and the following shall occur:

7.3.1.

Austep shall
send to each relevant Plant SPV, with copy to Bluesphere, a written report detailing the amounts to be excluded from, or added
to the EBITDA, if at all.

7.3.2.

In the event
the Parties were unable to agree on the amount of the Plant EBITDA and the expenses to be included or excluded thereof, a CPA of
Ernst Young accounting firm, in Milan, Italy, shall be appointed as a Ruler to quantify the amount of EBITDA, based on the guidelines
specified under each Guaranteed Plant EBITDA Agreement. The Ruler’s decision shall be in English and reached within 10 (ten)
working days following his nomination and his decision shall become final and binding. The Parties shall bear the costs of the
Ruler on a 50/50 basis.

7.3.3.

If the Plant
EBITDA included in the Plant audited financial statements and agreed between the Parties, or as quantified by the Ruler is lower
than the Guaranteed Plant EBITDA specified in the relevant Guaranteed Plant EBITDA Agreement, Austep shall, within 60 (sixty) days
following the date of quantifying the Plant EBITDA, reimburse the relevant Plant SPV for the missing Plant EBITDA.

 

    	 

    	 

    

 

7.3.4.

If the Plant
EBITDA as included in the Plant audited financial statements and agreed between the Parties, or as quantified by the Ruler, is
higher than the Guaranteed Plant EBITDA specified in the Guaranteed Plant EBITDA Agreement (the “Yearly Positive Difference”),
the Relevant Plant SPV shall within 60 (sixty) days following the date of quantifying the Plant EBITDA, reimburse Austep for 90%
of the Yearly Positive Difference. Notwithstanding the above, in the event that Austep shall accumulate any Postponed Payments,
as set forth below in Section 7.5, the SPV’s quota of the Yearly Positive Difference shall first be utilized for the payment
of the Postponed Payments, and the remaining balance, if any, of the SPV’s quota of the Yearly Positive Difference shall
remain finally with the SPV.

7.4.

For clarity
sake, the amount of Guaranteed Plant EBITDA shall be after payment of all operational costs, including all those detailed in Section
4.7.1 above and costs of a commonly used insurance policy covering theft, machinery breakdown and business interruption, as accustomed
in the industry. It is also agreed that in the calculation of the Guaranteed Plant EBITDA the costs relating to the Plant financing
(including any financial leasing activated for the construction of the Plant) and management fee due to Bluesphere, the rent or,
in general, any consideration to be paid for the use of the land where the Plant is located and which is not owned by the SPV,
if any, shall be excluded.

7.5.

To dispel any
doubt, all payments due to Austep shall be made only from proceeds received from GSE for the generation of electricity in the Plant
and following and subject to the Guaranteed Plant EBITDA. In the event the payments received from GSE are not sufficient to cover
both the Guaranteed Plant EBITDA and the payments to Austep, and provided that such insufficiency of payments does not result from
Austep’s fault, those payments to Austep - as may be available after full coverage of the Guaranteed EBITDA - shall be postponed
until the proceeds received from GSE shall enable to cover the Postponed Payments.

8.

Exclusivity

8.1.

The Parties
acknowledge that Austep entered this Agreement based on the understanding that Bluesphere intends to purchase at least 3 (three)
Plants.

8.2.

Without derogating
from any provisions of this Agreement, it is agreed between the Parties that Austep shall have an exclusive first right to enter
into a Guaranteed Plant EBITDA Agreement with Plant SPVs acquired by Bluesphere for 15 (fifteen) Plant SPVs Blueshpere shall acquire
in Italy. Once Bluesphere has completed the purchase of 15 (fifteen) Plant SPVs, the Parties shall negotiate, in good faith, exclusivity
for an additional number of Plant SPVs in Italy. This provision shall not be deemed as an unconditional obligation of Bluesphere
to grant Austep exclusivity for any additional number of Plant SPVs.

8.3.

For clarity
sake, if Austep has refused to enter into a Guaranteed Plant EBITDA Agreement for any of the acquired Plant SPVs, or the Parties
were unable to agree on the amount of the Guaranteed Plant EBITDA, or the Parties failed to reach an agreement under Section 4
and its sub-sections, Bluesphere shall have the right to negotiate and enter a Plant EBITDA guarantee agreement for such Plant
SPV with another party, and Austep shall have no claim against Bluesphere in that respect.

 

    	 

    	 

    

 

9.

Term and Termination of the
Agreement

9.1.

This Agreement
shall come into effect on the signing by both Parties.

9.2.

The term of
each EBITDA Guarantee Agreement is for the period of validity of each relevant PPA, starting on the signing date of each Guaranteed
Plant EBITDA Agreement and ending on the date of the end period of each relevant PPA.

9.3.

This Agreement
will expire with the expiration of the latest Guaranteed Plant EBITDA Agreement entered into in execution of this Agreement, unless
renewed with both Parties’ consent, given in a written notice sent to the other Party at least 6 (six) months prior to the
conclusion of Term of the Agreement.

9.4.

On every visit
in the site, Bluesphere shall comply with the safety regulations and will notify Austep in writing and in advance of its intention
to visit the site. During the Term of the Agreement Austep will provide Bluesphere with all data and materials of each AD Plant.
In addition, and without derogating from any of Austep’s obligations and liabilities according this Agreement, the Plant
Guaranteed EBIDTA Agreement and any applicable law, Bluesphere shall perform supervisions from time to time at Bluesphere’s
sole discretion and as it sees fit, provided that such supervisions shall not delay or obstruct the regular operation of the Plant,
and as much as possible shall be performed during regular working days and hours.

9.5.

During the term
of each Guaranteed Plant EBITDA Agreement, Austep will operate the Plants with sufficient and qualified manpower to ensure the
proper and ongoing operation of the Plants.

9.6.

The Parties
hereby agree that during the term of each Guaranteed Plant EBIDTA Agreement, but not before the elapse of 3 (three) years from
the signing of each Guaranteed Plant EBIDTA Agreement, Austep will have the right to terminate the Guaranteed Plant EBITDA Agreement
only if:

9.6.1.

it has offered
each relevant Plant SPV an alternative solution to operate the Plant under the same or better terms; and

9.6.2.

the relevant
Plant SPV has given its written consent for the alternative solution, which will not be unreasonably refused.

9.7.

Notwithstanding
any other provision of this Agreement, Bluesphere is entitled to terminate this Agreement before the conclusion of its Term in
the event Austep becomes bankrupt or insolvent, or goes into liquidation, or has a receiving or administration order made against
it or carries on business under a receiver, trustee or manager for the benefit of its creditors, or if any act is done or event
occurs which (under Applicable Law) has a similar effect to any of these acts or events.

9.8.

Notwithstanding
any other provision of this Agreement, the Parties are entitled to terminate this Agreement before the conclusion of its Term in
the event the other Party substantially violates terms of this Agreement and has not ceased this violation and remedied the consequences
thereof within four 4 (four) weeks of a written demand.

 

    	 

    	 

    

 

9.9.

Without derogating
from Section 9.8, the Parties hereby agree that in each Guaranteed Plant EBITDA Agreement the relevant Plant SPV shall be entitled
to terminate the Guaranteed Plant EBITDA Agreement before the conclusion of its term if the Plant EBITDA for 2 (two) consecutive
years has not reached, by more than 10%, the Guaranteed Plant EBITDA per each of the respective years even though Austep has reimbursed
the missing Guaranteed Plant EBITDA, by giving Austep a written notice of 90 (ninety) days prior to such termination.

9.10.

Upon termination
of this Agreement, Austep shall furnish Bluesphere and the relevant Plant SPV with all information, data and documentation, pertaining
to the operation, maintenance, and treatment of the Plant, including without limitation any information and data regarding suppliers
of substrates and other equipment, and machinery and engine technicians and all agreements related to the AD Plant. In any event
of termination and without derogating from any of Austep obligations due under this Agreement, and from any of the remedies available
to Bluesphere, Austep shall make its best efforts to include in every agreement relating to or relevant to the Plant’s operation,
(excluding the agreements specified in Section 16.2) a clause of optional assignment to the SPV and will take all necessary actions
to assign to the SPV, or to Bluesphere as the case maybe all relevant operational agreements of the Plant [such as feedstock supply,
engine maintenance and warranties].

9.11.

To
dispel any doubt, termination of this Agreement prior to the conclusion of its Term, for any cause, shall not derogate from any
rights or remedies available to the Parties at law or in equity, or pursuant to this Agreement.

10.

Guarantees

10.1.

Austep hereby
irrevocably undertakes to fulfill all its obligations, whether now existing or arising hereafter, under this Agreement and under
the Guaranteed Plant EBITDA Agreements, including all annexes, exhibits, schedules, amendments, modifications, renewals and extensions
thereto, as from time to time amended, restated, supplemented or otherwise modified, regardless of the existence of any other security,
guarantee or surety given by Austep for fulfillment of its said obligations.

10.2.

Austep undertakes
to provide each Plant SPV upon execution of each Guaranteed Plant EBITDA Agreement with an Advance Loss of Profit Insurance policy
(“ALOP”), issued by a primary insurance company authorized to conduct business in Italy covering an amount equal
to 12 (twelve) months of the Guaranteed Plant EBITDA of the relevant Plant, to Bluesphere’s satisfaction, In addition, in
the event of termination of a relevant Guaranteed Plant EBITDA Agreement, Austep shall guarantee to the relevant Plant SPV the
supply, either through existing feedstock in storage or through supplier’s contractual commitments, sufficient feedstock
to regularly operate the relevant Plant until the next harvest, provided however that the next harvest is covered by a written
engagement which is for a period no less than 6 (six) months.

 

    	 

    	 

    

 

10.3.

The ALOP insurance
shall indicate Austep, Bluesphere, Bluesphere Italy (a subsidiary Bluesphere or any of its subsidiaries will found in Italy, from
time to time, for the purposes of this agreements) and the Plant SPV as the insured/beneficiary of the policy and Bluesphere, Bluesphere
Italy and the Plant SPV shall be entitled to trigger the policy,

10.4.

The ALOP insurance
specification and policy, approved by Bluesphere and the Plant SPV, shall be attached as an annex to the Plant EBITDA Guarantee
Agreement signed with each Plant SPV.

10.5.

Austep shall
procure, at its own expense, the abovementioned ALOP insurance policy, and fulfil all the conditions thereof, including without
limitation, pay the deductibles; fully and punctually pay the premiums; and arrange for, and ensure that the insurance coverage
is in effect according to Austep’s undertakings.

10.6.

Austep shall
manage the ALOP insurance claim vis-à-vis the insurance company, and shall retain the reimbursement proceeds received
for the repair of the damages directly incurred by Austep.

10.7.

Austep in order
to cover the risk of an increase of substrates costs, shall, for each Guaranteed Plant Agreement, set aside and deposit the amount
as set forth hereinbelow in a special bank account to be opened by Austep dedicated for the purpose of this Section with a primary
Italian bank (the “Guaranty Account”). The amounts deposited in the Guaranty Account (the “Guaranty
Amounts”) shall constitute a guarantee for the risk of increase of substrates costs and shall be used only with the written
consent of Plant SPVs and/or Bluesphere Italy and/or any other subsidiary of Bluesphere as Bluesphere shall instruct (“Bluesphere
Entities”). Austep shall cause Bluesphere Entities to be registered as a co-signatory of the Guaranty Account, so that
the signature of Bluesphere Entities shall be required for all intents and purposes with respect to the Guaranty Account and/or
use of the Guaranty Amounts. Austep shall open the Guaranty Account, with the joint signature powers of the Bluesphere Entities
as above indicated simultaneously with the execution of the first Guaranteed Plant EBITDA Agreement. In the event of an aggregate
increase in the price of substrate of 10% or more within a 12 (twelve) month period, Bluesphere Entities shall have the right,
at its sole discretion, to exercise the guarantee pursuant to this Section. In the event that Bluesphere Entities elect to exercise
the guarantee, a sum representing the actual increase in substrate costs shall be released out of the Guaranty Account for the
purpose of purchasing substrate for the operations of the Plant SPVs over the subsequent 12 (twelve) months period.

Beginning on the 19th
month following the date of the first invoice submitted by Austep to each Plant SPV, Bluesphere shall cause the applicable Plant
SPV to pay into the Guaranty Account each Delayed Amount which becomes due and payable according to the provisions of Section 4.7.1
above, up to the amount of € 85,000.00 per each Plant SPV (the “Guaranty Amounts Limit”). Once the Guaranty
Amounts Limit has been reached, Delayed Amounts which become due and payable as aforesaid shall be paid directly to Austep. Notwithstanding
the above, except as provided in following Section 10.7, in no event shall the Guaranty Amounts together with the aggregate outstanding
Delayed Amounts exceed an aggregate value of € 170,000.00 for each Plant SPV.

 

    	 

    	 

    

 

Upon an exercise of the guarantee,
Bluesphere shall immediately cause each relevant Plant SPV to pay into the Guaranty Account each Delayed Amount which becomes due
and payable until the Guaranty Amounts Limit has been restored, at which point subsequent Delayed Amounts which become due and
payable as aforesaid shall be paid directly to Austep.

10.8.

The Parties
undertake to meet every 2 (two) years in order to evaluate if, in light of the market situation, the Guaranty Amount provided for
each SPV is sufficient, insufficient or in excess taking into consideration of the purpose of the guarantee and take the appropriate
measures, provided however in the event of no consent between the Parties the above amount and mechanism shall continue to be in
force.

10.9.

The Guaranty
pursuant Section 10.7 shall survive for a period of 3 years following the termination of this Agreement due to Sections 9.7 and
9.9 of this Agreement, and due to Section 9.8, other than if such termination was due to a violation by the SPV and in any event
for a period not exceeding 12 (twelve) months after the full Term of this Agreement, during which time the Guaranty Account and
the Guaranty Amounts will continue to be used to guarantee the price of substrate and no breach or violation by Austep of any of
its undertakings and/or representations under this Agreement and/or each Guaranteed Plant EBITDA Agreement, shall in any way derogate
from its obligations pursuant to this Section which shall continue to have full force and effect

11.

The Right to Offset

11.1.

In the event
of not reaching the Guaranteed Plant EBIDTA in a Plant SPV, Bluesphere shall be entitled to offset any payment due to Austep under
the applicable Guaranteed Plant EBITDA Agreement from any payment due to Austep by another Plant SPV in accordance with any other
Guaranteed Plant EBITDA Agreement. For clarity sake, each Guaranteed Plant EBITDA Agreement will provide a specific payment delegation
procedure to permit a relevant Plant SPV to make payments on behalf of Austep in favor of any other SPV.

11.2.

Bluesphere and
Each Plant SPV shall have a retention of title on the insurance policies to be procured by Austep with regards to the Plant, or
alternatively Bluesphere and the relevant Plant SPV shall be added to the insurance policy as a 2nd beneficiary in addition
to Austep.

12.

Bluesphere Guarantee

12.1.

Bluesphere shall
irrevocably, primarily and unconditionally guarantee to Austep all payments – including any Postponed Payments – due
to Austep under this Agreement and any relevant Guaranteed Plant EBITDA Agreement, which may be due to Austep only after full coverage
of the relevant Guaranteed Plant EBITDA, provided that Austep has sent a written notice of claim to the relevant Plant SPV and
the Plant SPV has not reacted within 15 (fifteen) business days of receipt of the written notice.

 

    	 

    	 

    

 

12.2.

Bluesphere
hereby gives its consent, or undertakes to make its best efforts to ensure that each Guaranteed Plant EBITDA Agreement will include
the relevant Plant SPV’s commitment to cover all direct costs and expenses of attorneys’ fees, incurred by Austep
in the event the relevant Plant SPV does not transfer to Austep payments due to it, provided that:

a)

Austep has
sent a written notice of claim to the relevant Plant SPV and the Plant SPV has not complied within 15 (fifteen) business days of
receipt of the written notice; and

b)

such abovementioned
costs and expenses have been awarded to Austep as a result of the arbitration procedure provided for by each relevant Guaranteed
Plant EBITDA Agreement.

13.

Confidentiality
of Information and Non-Competition

13.1.

For the duration
of this Agreement, and for 5 (five) years following its termination, each Party shall keep all information received from the other
Party and marked confidential (hereinafter the “Confidential Information”).

13.2.

The Confidential
Information shall not be divulged without both Parties’ written consent given in advance. The Parties may not use the Confidential
Information for any purpose other than the purposes set out in this Agreement, except if needed by Bluesphere and/or each relevant
Plant SPV for the operation of the Plants. This provision will survive the termination of the Agreement or the conclusion of its
Term. The Parties shall uphold the confidentiality of, and shall not use other than for the purposes set out in this Agreement,
any Confidential Information related to the AD Plant, including documents, data, technical, business, financial and/or any other
written and or oral information regarding the Project which was prepared by any of the Parties, except for:

13.2.1.

when the information
becomes part of the public domain (and not as a result of the breach of this Agreement);

13.2.2.

when the information
was in the one Party’s possession prior to receiving it form the other Party;

13.2.3.

when the information
was received by a third party which is not, to the knowledge of the receiving Party, in breach of an obligation of confidentiality,
and is therefore not subject to the limitations of its exposure;

13.2.4.

when the information
is requested by any governmental, regulatory, judicial or other such body under applicable legislation, regulations or rules.

13.3.

Each Party shall
take reasonable measures to protect Confidential Information.

13.4.

A Party may
divulge the Confidential Information to its consultants, technical or commercial consultants, accountants, auditors, counsels,
investors, bankers and subsidiaries (hereinafter the “Consultants”) to the extent it is necessary for the development
of a relevant AD Plant. A Party transferring Confidential Information to Consultants must inform them of its confidential nature
and guarantee their commitment to keeping such information confidential.

 

    	 

    	 

    

 

13.5.

None of the
Parties including their consultants, representatives, sub-contractors or any of their related parties will use or disclose any
of the Confidential Information obtained from the other Party during the period of this Agreement for a purpose other than the
development of a joint AD Plant Such Confidential Information will not be held as confidential if it were proven to be publicly
available prior to it being transferred to the Consultants.

13.6.

In case of a
material breach of this Agreement, the non-breaching Party shall send a notice of such a breach to the breaching Party. If the
breaching Party fails to remedy such a breach within 60 (sixty) days of the receipt of such notice, the other Party shall have
the right to terminate this Agreement in a written form to the breaching Party any time thereafter.

13.7.

Austep hereby
agrees that during the Term of the Agreement it will not, directly or indirectly, without
the prior written and explicit consent of Bluesphere, present, or make an offer, to any third investor with respect to any
Plant falling within the framework of this Agreement, i) for the duration of the exclusivity granted to Bluesphere for the
purchase or ii) – in the event no exclusivity has been granted to Bluesphere – for a maximum period of 90 (ninety)
days from the communication provided for in following Section 13.8, or iii) with respect to any Plant(s) Austep has proposed
to Bluesphere’s, and which Bluesphere has accepted to consider, and started to proceed with LOI within a period of 60 (sixty)
days.

13.8.

The Parties
shall agree on a written list of Plants under Bluesphere review, attached hereto as Annex
C, which will specify the term of the exclusivity granted to Bluesphere and that will be up-dated from time to time
by written communication sent by Bluesphere to Austep. Austep shall give its consent, which shall not be unreasonably denied, to
the up-dating of list with the Plants communicated by Bluesphere.

13.9.

The acceptance
by Bluesphere to examine a Project offered by Austep should be given in writing within 15 (fifteen) days from the date Bluesphere
received the preliminary necessary information from Austep.

13.10.

In the elapse
of the terms provided for in Section 13.7, Austep will be free to offer to any third party a guarantee EBITDA proposal or any other
proposal for the operation and maintenance of the relevant Plants.

14.

Force Majeure

14.1.

Failure of a
Party to execute, or delay in a Party’s execution of this Agreement or part thereof, shall not constitute a breach of this
Agreement if caused by an Event of Force Majeure.

14.2.

An Event of
Force Majeure means events beyond the reasonable control of either Party, which constitutes exceptional and unforeseeable circumstances,
as stipulated hereunder, and which are the direct cause of:

(1)

material and unavoidable physical
damage or destruction to the Plant;

(2)

delay and/or interruption of the
full and regular operation of the Plant for more than 3 (three) consecutive days;

and which, despite the exercise
of diligent efforts, such Party was unable to prevent, limit or minimize.

    	 

    	 

    

 

14.3.

A Party affected
by an Event of Force Majeure shall inform the other Party in writing within 3 (three) days of such occurrence, and in addition
shall provide supporting documentation and evidence regarding the circumstances which constitute the Event of Force Majeure, specifying
why under these circumstances the implementation, or the timely implementation, of a contractual obligation was not possible, and
proving that such failure or delay were the direct result of those circumstances.

14.4.

Pursuant to
all of the above, the following events only could constitute an Event of Force Majeure, so long as such events are the direct cause
of failure to execute or delay in execution, as can be proven, and as stated above (for avoidance of doubt any events which is
not specifically set forth as Force Majeure event cannot be deemed as a Force Majeure event): acts of public enemies; orders or
restraints of any kind of the government of the Italian Republic or any of its departments, agencies, political subdivisions or
officials, or any civil or military authority; earthquakes; fires; hurricanes; tornadoes; floods; explosions; partial or entire
failure of national utilities. Furthermore the Parties agree that the occurrence of hidden construction fault and/or defects of
the Plant which delay or interrupt the regular operation of the Plant and which Austep could not have discovered in its DD review
process, shall be considered as an Event of Force Majeure, provided however that such fault and/or defects could not be cured without
affecting the Guaranteed EBIDTA.

15.

Waiver - Remedies

15.1.

All remedies
specified in this Agreement or otherwise available shall be cumulative and in addition to any other remedy provided hereunder or
now or hereafter available at law or in equity. No waiver with respect to any breach or default hereunder, whether or not the other
Party received notice thereof, shall be deemed to be a waiver with respect to any subsequent breach or default, whether of similar
or different nature; nor shall the failure of a Party to insist upon the performance by the other of any term hereof be deemed
a waiver of the rights of the first-mentioned Party with respect thereto.

16.

Assignment

16.1.

The rights and
obligations of the Austep pursuant to this Agreement shall not be assigned to a third party without Bluesphere’s written
prior consent. Bluesphere shall not unreasonably withhold its consent.

16.2.

Assignability
of Subcontracts. All of Austep’s operational subcontracts necessary the performance of work under this Agreement, including
substrate/feedstock supply agreements, the engine maintenance agreement, shall be assignable to Bluesphere and/or the relevant
Plant SPV, in the case of a default by Austep under the applicable Plant Guaranteed EBIDTA agreement, and Bluesphere and/or the
relevant Plant SPV shall have be entitled to receive such additional documentation it requires with respect to such assignment.
For clarity sake, Austep, Bluesphere Italy and/or the Plant SPV shall be the beneficiary/insured of the ALOP insurance policies
and Bluesphere Italy and/or the Plant SPV shall be entitled, at their sole discretion, to trigger the ALOP insurance by written
notice to the insurance company in case of default/termination.

    	 

    	 

    

 

17.

Conflict Resolution and Jurisdiction

17.1.

The Parties
will attempt to resolve all conflicts and disputes relating to this Agreement by negotiation. Should the Parties be unsuccessful
in resolving their dispute within 90 (ninety) days, the dispute shall be brought before an arbitration panel.

17.2.

Any dispute,
controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be settled
by arbitration in accordance with the Arbitration Rules of the International Chamber of Commerce, Paris (ICC) as are presently
in force. The number of arbitrators shall be 3 (three). The place of arbitration shall be Lugano (Switzerland) . The language to
be used in the arbitral proceedings shall be English. The decision of the Arbitrator shall be final and conclusive.

18.

Miscellaneous

18.1.

This Agreement
including the Annexes (whether attached to this Agreement on its signing date or added later in accordance with the provisions
of this Agreement) hereto constitute the entire and only agreement between the Parties, and no modification of the terms and conditions
contained herein shall be binding unless agreed upon in writing and signed by both Parties.

18.2.

Notices.
All notices and other communications required or desired to be communicated by one Party to the other shall be in writing and shall
be deemed given when sent by email, facsimile, or manual delivery or 10 (ten) days after mailing by registered airmail to the respective
addresses set forth below or to such other addresses as may be designated by a written notice to the other Party, provided, however,
that any notice of change of address shall be effective only upon receipt:

To Austep:

Address: 

Via Mecenate 76/45

20138 Milan – Italy

Facsimile:

+39 02 58019422

Email: 

a.massone@austep.com

 

To Bluesphere:

Address:

301 McCullough Drive, 4th Floor

Charlotte, NC 28262

Email:

Roy@bluespherecorporate.com

 

    	 

    	 

    

 

IN WITNESS HEREOF, the parties have duly executed
this Agreement.

 

	By: BLUESPHERE CORPORATION	By: AUSTEP S.p.A.
	Name: Shlomi Palas	Name: Alessandro Massone
	Title: CEO	Title: CEO
	Company: BlueSphere Corporation	Company: Austep S.p.A.
	Date: 	Date:

 

 

    	 

    	 

    

 

Annex A - Principles for EBITDA Calculation

Annex B – Guaranteed Plant EBTDA Agreement
format

Annex C - Specifications of Plants
under Review or Negotiation

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