Document:

Exhibit 10.1

 

 

January 29, 2015

 

Orbit Energy, Inc.

900 Ridgefield Drive, Suite 145

Raleigh, NC 27609

Attn: Anwar Shareef, CEO

 

		Re:	Orbit Energy Charlotte, LLC

 

Dear Anwar:

 

Reference is made
to that Amended and Restated Orbit Energy Charlotte, LLC Purchase Agreement dated November 19, 2014 (the “Amended SPA”)
between Bluesphere Corporation, a company organized and existing under the laws of the State of Nevada (“BSC”) and
Orbit Energy Inc., a company organized and existing under the laws of the State of North Carolina (“Orbit”).

 

Notwithstanding
the fact that the transactions contemplated by the Amended SPA have been restructured and that a new agreement replacing the Amended
SPA will be executed by Orbit, BSC and a certain third-party (the “New SPA”), we hereby confirm and agree that except
for the payment of the Development Fee, which, pursuant to the New SPA, will be paid by a third-party, our obligations to and/or
to the benefit of Orbit in Sections 2.1, 2.4, 4.1 and 4.3 of the Amended SPA remain in full force and effect, but subject, in each
case, to the terms and conditions applicable to such obligations in the Amended SPA (the “Terms and Conditions”).

 

By counter-signing
below, you hereby agree to sign the New SPA in a timely manner and confirm and agree that the Terms and Conditions remain in full
force and effect.

 

	 	Yours truly,	 
	 	 	 
	 	Bluesphere Corporation	 
	 	 	 
	 	 	 
	 	By: Shlomi Palas	 
	 	Title: CEO	 
	 	 	 
	 	Agreed and accepted:	 
	 	 	 
	 	Orbit Energy Inc.	 
	 	 	 
	 	 	 
	 	By: Anwar Shareef	 
	 	Title: CEO	 

 

35 Asuta St. Even Yehuda, Israel 40500 | Tel: +972-9-8917438,
Fax: +972-9-8998615

London Office: Pall Mall 100 St. James London, SW1Y
5NQ UK | Tel: +44-020-73213716

www.bluespherecorporate.comExhibit 10.2

 

EXECUTION COPY

 

DEVELOPMENT AND INDEMNIFICATION AGREEMENT

 

by and among

 

CONCORD ENERGY PARTNERS, LLC,

 

York
Renewable Energy Partners LLC

 

and

 

BLUE SPHERE CORPORATION

 

Dated as of January 30, 2015

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	Section 1.      Consideration	2
	 	 	 
	Section 2.      The Closing	2
	 	 	 
	Section 3.      Representations and Warranties of Development	2
	 	 	 
	(a)	Organization	3
	(b)	Authorization of the Documents; No Conflicts	3
	(c)	Required Consents or Approvals	4
	(d)	Capitalization of Project LLC	4
	(e)	Defaults	5
	(f)	Absence of Undisclosed Liabilities	5
	(g)	Absence of Changes	5
	(h)	Assets, Properties and Rights; Title	6
	(i)	Employees; Employee Benefits	6
	(j)	Contracts	7
	(k)	Compliance; Licenses and Permits; Environmental Matters	7
	(l)	Litigation	8
	(m)	Tax Matters	9
	(n)	Related Party Transactions	9
	(o)	Brokers	10
	(p)	Real Property	10
	(q)	Project Intellectual Property	11
	(r)	Bank Accounts; Managers; Officers  .	12
	(s)	Powers of Attorney  .	12
	(t)	Eligibility for Tax Credits	12
	(u)	Project Development	12
	(v)	Regulatory Matters	13
	(w)	Qualification	13
	(x)	Information	14
	 	 	 
	Section 4.      Representations and Warranties of the Company	14
	 	 	 
	(a)	Organization	14
	(b)	Authorization of the Documents; No Conflicts	14
	(c)	No Consent or Approval Required	15
	(d)	Authorization of Series B Units	15
	(e)	Registration Rights	15
	 	 	 
	Section 5.      Representations and Warranties of the Investor	15
	 	 	 
	(a)	Authorization of the Documents; No Conflicts	16
	(b)	Brokers and Finders	16
	 	 	 
	Section 6.      Closing Deliverables	16
	 	 	 
	(a)	Development’s Closing Deliverables	16

  

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TABLE OF CONTENTS

 

	(b)	The Company’s Closing Deliverables	18
	(c)	Investor’s Closing Deliverables	18
	 	 	 
	Section 7.      Covenants	18
	 	 	 
	(a)	Tax Characterization	18
	(b)	Insurance	19
	(c)	Public Announcements	19
	(d)	Confidentiality	19
	(e)	Transfer Taxes	19
	(f)	Development Release	20
	(g)	Project LLC Liabilities	20
	(h)	Cancelled Promissory Notes	20
	(i)	Further Assurances	20
	 	 	 
	Section 8.      Indemnification	20
	 	 	 
	(a)	Survival of Representations, Warranties, Agreements and Covenants, Etc.	20
	(b)	Indemnification	21
	(c)	Limits on Indemnification	22
	(d)	Set-Off Right	23
	 	 	 
	Section 9.      Assignment; Parties in Interest	23
	 	 
	Section 10.      Entire Agreement; Severability.	23
	 	 
	Section 11.      Notices.	23
	 	 
	Section 12.      Amendments; Waivers	25
	 	 
	Section 13.      Counterparts	25
	 	 
	Section 14.      Headings	25
	 	 
	Section 15.      Governing Law	25
	 
	Section 16.      Arbitration	25
	 	 
	Section 17.      Specific Performance	26
	 	 
	Section 18.      Definitions; Interpretation	26
	 	 	 
	(a)	Definitions	26
	(b)	Index of Certain Other Definitions	32
	(c)	Rules of Construction	33

 

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EXHIBITS
AND SCHEDULES

 

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

 

Disclosure Schedules

 

Development Disclosure Schedules

 

	Schedules	 
	 	 
	Schedule 3(b)	Consents and Notices
	Schedule 3(d)	Capitalization of Project LLC
	Schedule 3(f)	Project LLC Liabilities
	Schedule 3(g)	Absence of Changes
	Schedule 3(h)	Description of Assets
	Schedule 3(j)	Contracts and Contracts Notices and Consents
	Schedule 3(k)(i)	Permits
	Schedule 3(k)(ii)	Outstanding Permits
	Schedule 3(k)(iv)	Consents and Notices under Permits and Outstanding Permits
	Schedule 3(k)(v)	Storage Tanks
	Schedule 3(k)(vi)	Environmental Documentation
	Schedule 3(k)(vii)	Releases
	Schedule 3(n)	Related Party Transactions
	Schedule 3(p)	Real Property
	Schedule 3(q)	Project Intellectual Property
	Schedule 3(r)	Bank Accounts; Managers; Officers
	Schedule 3(s)	Powers of Attorney
	Schedule 3(t)	Production Tax Credit
	Schedule 3(u)	Project Development
	Schedule 6(a)(x)	Biomass supply agreements to be delivered at Closing
	Schedule C	Permitted Encumbrances

 

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DEVELOPMENT AND INDEMNIFICATION
AGREEMENT

 

This Development and
Indemnification Agreement, dated as of January 30, 2015 (this “Agreement”), is entered into by and among
Concord Energy Partners, LLC, a Delaware limited liability company (the “Company”), York Renewable
Energy Partners LLC, a Delaware limited liability company (the “Investor”), and Blue Sphere Corporation,
a Nevada corporation (“Development”). Capitalized terms not otherwise defined herein shall have the meanings
set forth in ‎Section 18.

 

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

 

WHEREAS, Project
LLC was organized by Orbit Energy, Inc., a North Carolina corporation (“Seller”) and pursuant to a certain
Amended and Restated Orbit Energy Charlotte, LLC Purchase Agreement, (including Exhibit A thereto) made and entered into by Seller
and Development as of November 19, 2014 (the “Orbit Purchase Agreement”), Development purchased 100%
of the limited liability company interests of Project LLC (the “Interests”) from Seller, and Development
became the sole member of Project LLC on November 19, 2014;

 

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

 

WHEREAS, Development,
Buyer and the Investor have been engaged in negotiations to effect a transaction whereby Development would contribute 100% of the
Interests to the Company and the Investor would make certain capital contributions to the Company, such that Development and the
Investor would become the sole members of the Company, and the Company would become the sole member of Project LLC (“Previous
Transaction”), however the Previous Transaction was not consummated;

 

WHEREAS, under
the Orbit Purchase Agreement, Development has an obligation to make certain payments to Seller, including without limitation, a
Development Fee, (as defined in the Orbit Purchase Agreement) and pursuant to Section 3.3 of the Orbit Purchase Agreement, if payment
in full of the Development Fee is not made by Development 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 Development, the Investor,
Seller and the Company, such reversion occurred and Seller became the sole legal and beneficial owner of the Interests and the
sole member of Project LLC;

 

    	 

    	 

    

 

WHEREAS, in
lieu of the Previous Transaction, Development, Seller and the Company have determined that immediately prior to the Closing hereunder,
the Company shall (1) purchase, pursuant to the terms and conditions of the Orbit Energy Charlotte, LLC Membership Interest Purchase
Agreement among the Company, Seller, Project LLC and Development dated the date hereof, (attached hereto as Exhibit A) (“Project
LLC Purchase Agreement”), 100% of the Interests from Seller for $917,764, in reliance on the representations, warranties
and covenants of Seller set forth in the Project LLC Purchase Agreement and the representations and warranties regarding Project
LLC, its assets and liabilities and the Project and the covenants of Development set forth herein; and (2) in consideration of
the representations and warranties regarding Project LLC, its assets and liabilities and the Project and the covenants of Development
set forth herein, pay to Development $1,250,000 and issue to Development 250 Series B units of the Company (“Series
B Units”), such that the Investor will be a member of the Company holding 750 Series A units (“Series
A Units”) representing 75% of the limited liability company interests of the Company, and Development will be admitted
as a member of the Company holding 250 Series B Units representing 25% of the limited liability company interests of the Company
in accordance with the terms of an amended and restated limited liability company agreement of the Company, the form of which is
attached here to as Exhibit B (the “LLC Agreement”);

 

WHEREAS, contemporaneous
with the Closing hereunder, the closing of the purchase of the Interests by the Company from Seller shall take place;

 

WHEREAS, Project
LLC has executed a Purchase and Sale Agreement with Hillcrest Investors, Inc. dated May 3, 2013, as amended to date, to acquire
certain real property located at 600 Johnson Road, Charlotte, North Carolina, on which the Project shall be located, the closing
of which shall take place on the Closing Date immediately following the Closing hereunder (the “Real Property Closing”);

 

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

 

Section 1. Consideration

 

Pursuant to the terms
of the LLC Agreement and herein, as consideration for the representations, warranties, covenants and obligations of Development
hereunder, at the Closing the Company shall (i) pay to Development $1,250,000 in cash (the “Cash Consideration”),
by wire transfer of immediately available funds in accordance with the wire transfer instructions previously delivered to the Company,
and (ii) issue to Development 250 Series B Units and shall admit Development as a member of the Company in accordance with the
terms of the LLC Agreement, effective as of the Closing (the Cash Consideration and the Series B Units, together, the “Consideration”).

 

Section 2. The Closing

 

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

 

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Section 3. Representations and Warranties
of Development

 

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

 

(a)          Organization

 

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

 

(b)          Authorization
of the Documents; No Conflicts

 

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

 

(ii)         The
execution, delivery and performance by each of Development and Project LLC of the Documents to which it is a party, its consummation
of the transactions contemplated thereby and its compliance with the provisions thereof will not (A) violate any provision of any
Law applicable to Development or Project LLC or any of their respective properties or assets, (B) conflict with or result in any
breach of any of the terms, conditions or provisions of, or constitute (with due notice or lapse of time, or both) a default or
give rise to any right of termination, cancellation or acceleration under their respective Organizational Documents, or (C) except
as set forth on Schedule 3(b), conflict with or result in any breach of any of the terms, conditions or provisions of, or
constitute (with due notice or lapse of time, or both) a default or give rise to any right of termination, cancellation or acceleration
under, or result in the creation of any Encumbrance upon any of the properties or assets of Development or Project LLC, including,
without limitation, under any Contract, Permit or Outstanding Permit.

 

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(c)          Required
Consents or Approvals

 

All filings, consents
and approvals set forth on Schedule 3(b), Schedule 3(j) and Schedule 3(k)(iv) have been timely made or obtained,
as applicable, and there are no notices, consents, approvals or authorizations of, declarations to or filings with any Person,
including any Governmental Authority, required for the valid authorization, execution and delivery by each of Development and Project
LLC of any Document to which it is a party or for its consummation of the transactions contemplated thereby.

 

(d)          Capitalization
of Project LLC

 

(i)          Project
LLC was organized by Seller and pursuant to the Orbit Purchase Agreement, Development purchased 100% the Interests from Seller,
and Development became the sole member of Project LLC on November 19, 2014. Pursuant to Section 3.3 of the Orbit Purchase Agreement,
the Interests automatically reverted to Seller without further action, and effective on the date hereof, Seller again became the
sole owner of the Interests and the sole member of Project LLC.

 

(ii)         Schedule
3(d) accurately sets forth for Project LLC, for the periods from its date of formation through the date hereof: (i) the number
and type of its authorized limited liability company interests, (ii) the number and type of its outstanding limited liability company
interests, and (iii) the names and addresses of record of all members and all other holders of its issued and outstanding limited
liability company interests, and the number and types of limited liability company interests held of record by each of them. Project
LLC has no other equity interests other than the limited liability company interests authorized or issued and outstanding, other
than those set forth on Schedule 3(d).

 

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

 

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

 

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

 

(e)          Defaults

 

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

 

(f)          Absence
of Undisclosed Liabilities

 

Schedule 3(f)
sets forth the Liabilities of Project LLC or any of its assets or the Project. Except at set forth on Schedule 3(f), Project
LLC has no Liabilities.

 

(g)          Absence
of Changes

 

With respect to Project
LLC, since the date of its formation, except as set forth on Schedule 3(g) there has not been:

 

(i)          any
Material Adverse Event,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(h)          Assets,
Properties and Rights; Title

 

(i)          All
of the assets owned, leased, used or held for use and necessary for the development, construction and operation of the Project
are set forth on Schedule 3(h) together with the Project Miscellaneous Assets (collectively, “Project Assets”).

 

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

 

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

 

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

 

(i)          Employees;
Employee Benefits

 

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

 

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

 

(j)          Contracts

 

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

 

(ii)         Except
as set forth in Schedule 3(j), all of the Contracts are in full force and effect and are enforceable in all respects in
accordance with their terms and neither Project LLC nor any other party thereto is in breach or in default under (and no event
has occurred which with notice or the passage of time or both would constitute a breach or default under) any such Contract. No
Person has provided notice that it may, or threatened in writing to, terminate or cancel any Contract. As of the date hereof, no
Contract or Law restricts or inhibits in any way Project LLC’s right or ability to conduct its business in the manner as
currently intended, other than any Law that requires Project LLC to obtain one or more Outstanding Permits. Set forth on Schedule
3(j) is a list of each Contract under which a notice to or consent from a counterparty is required in order to consummate the
transactions contemplated by this Agreement or the Project LLC Purchase Agreement and to develop, construct, own or operate the
Project.

 

(k)          Compliance;
Licenses and Permits; Environmental Matters

 

(i)          Schedule
3(k)(i) lists all Permits that are currently issued to Project LLC relating to the Project. Project LLC has complied in all
material respects with, and is not in material violation in any respect of, any Law or Permit. To the Knowledge of Development,
there is no fact or circumstance, including a proposed change in Law, which would, or might reasonably be expected to, result in
any material violation by Project LLC of any Law or Permit. All of the Permits listed on Schedule 3(k)(i) are final and
in full force and effect, the periods to appeal such Permits have expired, no material violations are outstanding or uncured with
respect to any such Permits, and no Claim is pending or, to the Knowledge of Development, threatened to revoke, limit or materially
modify any such Permits.

 

(ii)         Schedule
3(k)(ii) lists all of the other Permits (including all pending applications for Permits) that Project LLC still requires, as
of the date hereof, in order to develop, construct, own or operate the Project in the manner as currently intended and in compliance
with Law (the “Outstanding Permits”). Except as set forth on Schedule 3(k)(ii), complete applications
for all Outstanding Permits have been filed with the appropriate Governmental Authorities, and Development has no reason to believe
the Outstanding Permits will not be issued in due course.

 

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

 

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

 

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

 

(vi)        Development
has provided or otherwise made available to Investor any and all environmental reports, studies, audits, sampling data, site assessments,
risk assessments, economic models and other similar documents with respect to the business or assets of Project LLC or the Real
Property related to compliance with Environmental and Safety Requirements (the “Environmental Documentation”),
which Environmental Documentation is listed on Schedule 3(k)(vi).

 

(vii)       Project
LLC and the Real Property have been and are in material compliance with all Environmental and Safety Requirements, and there are
no Claims pending or, to the Knowledge of Development, threatened with respect to Project LLC, the Real Property or the Project
alleging any failure to so comply or involving any of Project LLC’s current or past operations or any of its current or past
real property. Neither Development nor Project LLC has received any written notice, report or written Claim regarding, and Development
has no Knowledge of, any (A) actual or alleged violation by Project LLC, the Project or the Real Property of Environmental and
Safety Requirements or (B) actual or potential Liability of Project LLC arising under Environmental and Safety Requirements, including,
without limitation, any investigatory, remedial or corrective action obligation. Project LLC has not expressly assumed or undertaken
any Liability of any other Person under any Environmental and Safety Requirement. Project LLC has not generated, treated, stored,
disposed of, arranged for or permitted the disposal of, transported, handled or Released any Hazardous Material, or owned, operated
or leased any real property or assets in a manner that has given rise or is reasonably likely to give rise to Liabilities pursuant
to any Environmental and Safety Requirement, including any Liability for response costs, corrective action costs, personal injury,
property damage, natural resources damage or attorney fees, or any investigative, corrective or remedial obligations. Except as
set forth on Schedule 3(k)(vii), there has been no Release of any Hazardous Material at or onto the Real Property or any
property owned, leased or operated by Project LLC, and all such properties are free of any Environmental Liens.

 

(viii)      Project
LLC has entered a Brownfields Agreement with the North Carolina Department of Environmental and Natural Resources with respect
to the Project and the Real Property, and Project LLC is in compliance with all terms and conditions of the Brownfields Agreement.

 

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(l)          Litigation

 

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

 

(m)          Tax
Matters

 

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

 

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

 

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

 

(n)          Related
Party Transactions

 

Except as set forth
on Schedule 3(n), no current or former Affiliate, member, shareholder, director, officer, manager or employee of Development
or Project LLC (each, a “Related Party”) is presently, or since such entity’s inception has been,
directly or indirectly through his, her or its affiliation with any other Person, a party to any transaction providing for the
furnishing of services by or to, or rental of real or personal property from or to, or otherwise requiring cash payments to or
by Project LLC. Project LLC is not a party to any Contract or other commitment or transaction with a Related Party, nor do any
Related Parties have any legal or beneficial interest in the assets or property owned or used by Project LLC or in any Contract
to which Project LLC is a party or in any other Person with which Project LLC is or has been party to a Contract. There are no
outstanding Claims, accounts payable or receivable, intercompany loans, indebtedness or other Liabilities between Project LLC,
on the one hand and any Related Party on the other hand and, as of the Closing, all such Liabilities have been, or as of the Closing
will have been repaid in full.

 

    	9

    	 

    

 

(o)          Brokers

 

Except as set forth
on Schedule 3(o), neither Development nor Project LLC, nor any of the officers, directors, employees, shareholders, managers
or members of Development or Project LLC, has employed any broker or finder in connection with the transactions contemplated by
this Agreement or the other Documents, and Development shall be solely responsible for the payment of any such broker or finder
fees.

 

(p)          Real
Property

 

(i)          Development
has delivered or made available to the Investor true, complete and correct copies of (A) the purchase and sale agreement between
Project LLC and Hillcrest Investors, Inc. together with any all amendments thereto (the “Real Property Purchase Agreement”)
with respect to the real property described on Schedule 3(p) (together with all appurtenances thereto and buildings, improvements,
structures, fixtures and facilities located thereon (the “Real Property”), (B) the forms of conveyance
documents, including the deed, by which Project LLC shall acquire the Real Property, and (C) all title insurance policies, opinions,
abstracts and surveys in the possession of Development relating to the Real Property. Project LLC is not in default under the Real
Property Purchase Agreement and, to Development’s Knowledge, the seller under the Real Property Purchase Agreement is not
in default thereunder. The anticipated use and operation of the Real Property in connection with the Project do not violate in
any material respect any Law, Permitted Encumbrance, covenant, condition, restriction, easement, license, permit or agreement.
No material improvements constituting a part of the Real Property encroach on real property owned or leased by a Person other than
Project LLC. There are no Proceedings pending nor, to Development’s Knowledge, threatened against or affecting the Real Property
or any portion thereof or interest therein in the nature or in lieu of appropriation, condemnation or like proceeding, or of any
violation of any zoning law, regulation or rule or other law, order, regulation, rule or requirement relating to or affecting the
Real Property.

 

(ii)         Upon
acquisition of the Real Property pursuant to the Real Property Purchase Agreement in the Real Property Closing, Project LLC shall
have good and marketable fee simple title to the Real Property free and clear of Encumbrances and Liens except for Permitted Encumbrances.
Project LLC does not own or lease, and has never owned or leased, any real property other than the Real Property.

 

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

 

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

 

    	10

    	 

    

 

(v)         Following
the Real Property Closing, Project LLC will have sufficient legal access and use of the Real Property to develop, construct, own
and operate the Project as presently intended.

 

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

 

(vii)       Project
LLC has (1) not engaged any contractors, and is not otherwise aware of any work that has been performed at the Real Property, within
the fifteen (15) days prior to the Closing Date other than the following: Auspark, LLC, Combs Concrete Construction, Siteworks,
LLC, and HD Supply Waterworks, LTD, and (2) has complied with all requirements of the North Carolina lien law (North Carolina General
Statutes, sections 44A 11.1 -11.2). All of the representation and certifications made by Project LLC in that certain Owner’s
Affidavit and Indemnity Agreement in favor of Morehead Title Company in connection with the Real Property Closing are true and
correct.

 

(q)          Project
Intellectual Property

 

(i)          A
list and description of the Project Intellectual Property of Project LLC is set forth on Schedule 3(q)(i). Development has
made available to the Investor copies of all material documents relating to all Project Intellectual Property in its possession
(other than computer software that is generally available to consumers at retail and licensed pursuant to “shrink-wrap",
“click-through” or other similar standard license agreements). Except as set forth in Schedule 3(q)(i), (i)
the Project Intellectual Property owned by Project LLC Company is valid and enforceable and (ii) Project LLC owns or licenses and
possesses all right, title and interest in and to, or possesses the valid right to use, all of the Project Intellectual Property
free and clear of all Liens.

 

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

 

    	11

    	 

    

 

(r)          Bank
Accounts; Managers; Officers Schedule 3(r) contains a true and correct list of (i)
the names of all banks and other financial institutions in which Project LLC currently has an account, deposit or safe deposit
box, along with the account numbers and the names of all Persons holding check-signing or withdrawal power or other authority with
respect thereto, and (ii) the names of all managers and, if applicable, officers and directors of Project LLC who served in such
positions from November 19, 2014 through the date hereof and prior to the reversion of the Interests to Seller, and the title and
position of each.

 

(s)          Powers
of Attorney Schedule 3(s) sets forth all powers of attorney or any similar documents
pursuant to which any Person (other than Project LLC) has authority to bind or act on behalf of Project LLC or the Project.

 

(t)          Eligibility
for Tax Credits As of December 31, 2014, the Project as designed and defined herein was qualified
as having commenced construction for purposes of qualifying the Project for the Production Tax Credit in Section 45 of the Code,
and the investment tax credit under Section 48 of the Code. Schedule 3(t) sets forth a description of the actions taken
to achieve such qualification of the Project, with references to supporting documentation. Except as set forth on Schedule 3(t),
the Project as designed will be eligible for North Carolina Tax Credits.

 

(u)          Project
Development 

 

(i)          Except
as set forth on Schedule 3(u), Development and Project LLC have submitted all documentation required by the Transmission
Provider to interconnect the Project to the transmission or distribution system of the Transmission Provider and has obtained all
approvals required by the Transmission Provider in connection with the interconnection of the Project to the Transmission Provider’s
transmission or distribution system. All easements or rights-of-way necessary to interconnect the Project to the Transmission Provider
have been obtained. Development has provided to the Investor a true and complete copy of each such application, approval and agreement,
including the Interconnection Agreement, and Project LLC is in compliance with the terms and conditions of the Interconnection
Agreement.

 

(ii)         Except
as set forth on Schedule 3(u), Development and Project LLC have submitted all documentation required by the Power Purchaser
to make arrangements to deliver and sell to the Power Purchaser at the interconnection point any and all output of the Project
and has entered into the Power Purchase Agreement with the Power Purchaser for the delivery and sale of such output, and Project
LLC is in compliance with the terms and conditions of the Power Purchase Agreement. All approvals and actions necessary to make
such Power Purchase Agreement effective to enable Project LLC to commence delivery thereunder have been undertaken, and there are
no facts or circumstances that would be expected to result in non-compliance with the terms and conditions of the Power Purchase
Agreement or the Interconnection Agreement in the future. Development has provided to the Investor a true and complete copy of
the applicable Power Purchase Agreement, the Interconnection Agreement, and any other related documentation and agreements.

 

    	12

    	 

    

 

(iii)        Except
as set forth on Schedule 3(u), Project LLC has completed and is in compliance with the requirements of the North Carolina
Utilities Commission with respect to all filings and approvals required to be made or obtained in connection with the Project,
including (1) obtaining a Certificate of Public Convenience and Necessity with respect to the Project, (2) the reporting requirements
set forth in North Carolina Utilities Commission Rule R8-65 (Report of Proposed Construction), and (3) properly submitting an Application
to Register a Renewable Energy Facility or New Renewable Energy Facility pursuant to North Carolina Utilities Commission Rule R8-66.

 

(iv)        Except
as set forth on Schedule 3(u), neither Development nor Project LLC has received written notice (or, to the Knowledge of
Development, any oral notice) from the Power Purchaser, specific to the Project or otherwise, that such Power Purchaser has taken
or has determined to take any action with respect to termination or impairment of any rights under any the Power Purchase Agreement,
Interconnection Agreement, system impact studies, system facilities agreements or other Contracts relating to interconnection of
and purchase of power from the Project. Except as set forth on Schedule 3(u), Development and Project LLC,
as applicable, have timely made all material deposits and other payments, and filed all reports and other information, required
in order to maintain the Power Purchase Agreement, Interconnection Agreement, system impact study, system facilities agreement
or any other Contract relating to interconnection of and purchase of power from the Project.

 

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

 

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

 

(w)          Qualification

 

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

 

    	13

    	 

    

 

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

 

(x)          Information

 

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

 

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

 

Section 4. Representations and Warranties
of the Company

 

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

 

(a)          Organization

 

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

 

(b)          Authorization
of the Documents; No Conflicts

 

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

 

    	14

    	 

    

 

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

 

(c)          No
Consent or Approval Required

 

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

 

(d)          Authorization
of Series B Units

 

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

 

(e)          Registration
Rights

 

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

 

Section 5. Representations and Warranties
of the Investor

 

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

 

    	15

    	 

    

 

(a)          Authorization
of the Documents; No Conflicts

 

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

 

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

 

(b)          Brokers
and Finders

 

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

 

Section 6. Closing
Deliverables

 

(a)          Development’s
Closing Deliverables

 

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

 

(i)          The
Project LLC Purchase Agreement executed by Development;

 

(ii)         The
LLC Agreement executed by Development;

 

(iii)        Evidence
satisfactory to the Investor that, effective upon the Real Property Closing, (a) all conditions precedent to closing the acquisition
of the Real Property by Project LLC pursuant to the Real Property Purchase Agreement will be satisfied or waived (including, without
limitation, copies of the executed deed, bill of sale and any assignment and assumption agreements required by the Real Property
Purchase Agreement), and (b) a title company reasonably satisfactory to the Investor will be irrevocably committed to issue to
Project LLC an owner’s policy of title insurance insuring that Project LLC holds a good and marketable title in fee simple
to the Real Property, free and clear of all Liens except for Permitted Encumbrance, together with any endorsements thereto reasonably
requested and available (including, without limitation, a non-imputation endorsement) and otherwise in a form reasonably acceptable
to the Investor;

 

    	16

    	 

    

 

(iv)        Evidence
satisfactory to the Investor that, effective upon the Real Property Closing, a non-imputation affidavit and such other reasonable
certificates, affidavits and other documents as may be required by the title company to issue the title policy described in clause
(iii)(b) above will be delivered;

 

(v)         A
true and correct copy of the final form of settlement statement regarding the closing of the Real Property Purchase Agreement to
be signed by the seller thereunder and Project LLC effective upon the Real Property Closing;

 

(vi)        The
form of ALTA survey of the Real Property acceptable to the Investor and sufficient for the title insurer to delete all standard
survey exceptions from the title insurance policy to be issued to Project LLC effective upon the Real Property Closing;

 

(vii)       An
assignment executed by Development and an assignment executed by Hillcrest Investors, Inc. assigning all Project Assets owned by
such entities to Project LLC, on terms acceptable to the Investor;

 

(viii)      A
termination agreement executed by Development and the other parties named on Schedule 3(s) terminating all powers of attorney
with respect to Project LLC and the Project, including without limitation, those set forth on Schedule 3(s);

 

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

 

(x)          Copies
of biomass supply agreements between Project LLC and each of the counterparties as set forth on Schedule 6(a)(x), on terms
acceptable to the Investor;

 

(xi)         Written
evidence of the delivery of notices and copies of executed counterparty consents as set forth on Schedule 3(b), Schedule
3(j) and Schedule 3(k)(iv);

 

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

 

(xiii)       An
executed termination notice from Caterpillar Financial Services Corporation of the valid termination of that certain Amended and
Restated Construction Financing Agreement between Project LLC and Caterpillar Financial Services Corporation dated as of June 6,
2014 in form satisfactory to the Investor;

 

(xiv)      Evidence
satisfactory to Investor that all original promissory notes signed by Project LLC in favor of Hillcrest Investors, Inc. in connection
with the Real Property Purchase Agreement have been satisfied and paid in full without liability to Project LLC prior to the Closing;
and

 

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

 

    	17

    	 

    

 

(b)          The
Company’s Closing Deliverables

 

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

 

(i)          The
Project LLC Purchase Agreement executed by Seller and the Company;

 

(ii)         The
Cash Consideration in accordance with Section 1.

 

(iii)        The
LLC Agreement executed by the Company.

 

(c)          Investor’s
Closing Deliverables

 

At the Closing,
the Investor shall deliver the following:

 

(i)          The
LLC Agreement executed by the Investor;

 

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

 

Section 7. Covenants

 

(a)          Tax
Characterization

 

Except as otherwise
required by applicable Law, the parties will treat the transactions taking place on or in connection with the Closing for United
States federal and applicable state and local income Tax purposes as (i) a taxable purchase of all of the assets of Project LLC
from Seller for cash in the amount of $917,764 plus the amount of liabilities, if any of Project LLC, immediately followed by (ii)
a contribution of all of the assets of Project LLC, subject to any liabilities of Project LLC, by the Investor to a new partnership
(i.e., the Company) in exchange for 100% of the Series A Units and (iii) an undertaking by Development to provide ongoing
assistance to shepherd the Project through development and construction in exchange for 100% of the Series B Units, which Series
B Units will be treated as “profits interests” for United States federal and applicable state and local income Tax
purposes. Consequently, Development will have an opening capital account balance of $0, and the Investor will have an opening capital
account balance equal to $2,167,764 (including $1,250,000 contributed by Investor to the Company to fund the payment of such amount
to Development pursuant to the Development and Indemnification Agreement).

 

    	18

    	 

    

 

(b)          Insurance

 

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

 

(c)          Public
Announcements

 

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

 

(d)          Confidentiality

 

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

 

(e)          Transfer
Taxes

 

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

 

    	19

    	 

    

 

(f)          Development
Release

 

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

 

(g)          Project
LLC Liabilities

 

Development shall solely
be responsible for, and shall have paid when due, and shall timely pay, when due, all Project LLC Pre-Closing Liabilities and shall
indemnify the Company and the Investor pursuant to and in accordance with Section 8 for all Project LLC Pre-Closing Liabilities.

 

(h)          Original
Promissory Notes

 

Within three (3) Business
Days following the Closing Date, Development shall deliver the original promissory notes referenced in Section 6(a)(xiv),
to the extent they exist, to Investor’s counsel at the following address: Sullivan & Worcester LLP, One Post Office Square,
Boston, MA 02109, Attn: Benjamin J. Armour.

 

(i)          Further
Assurances

 

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

 

Section 8. Indemnification

 

(a)          Survival
of Representations, Warranties, Agreements and Covenants, Etc.

 

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

 

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(b)          Indemnification

 

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

 

(ii)         Indemnification
Procedures.

 

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

 

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

 

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(C)         In cases where
the Indemnitor has assumed the defense or settlement of a Third Party Claim, the Indemnitor shall be entitled to assume the defense
or settlement thereof at its expense with counsel reasonably acceptable to Claimant; provided that: (1) the Claimant (and
its counsel) shall be entitled to continue to participate at its own cost (except as provided in Section 8(b)(ii)(D) below)
in any such Third Party Claim or in any negotiations or proceedings to settle or otherwise eliminate such Third Party Claim; (2)
the Indemnitor shall not be entitled to settle or compromise any such Third Party Claim without the consent or agreement of the
Claimant unless (x) the terms of such settlement provide for no relief other than the payment of monetary damages and (y) the Claimant
will have no liability with respect to payment of such monetary damages; and (3) after written notice by the Indemnitor to the
Claimant of its election to assume control of the defense of any Third Party Claim, the Indemnitor shall not be liable to such
Claimant hereunder for any attorneys’ fees and disbursements and disbursements subsequently incurred by such Claimant in
connection therewith (except as provided below).

 

(D)         Notwithstanding
anything to the contrary in this Section 8‎(b), the Indemnitor shall continue
to pay the reasonable attorneys’ fees and disbursements and other costs each Claimant may incur relating to such Claimant’s
participation in any Third Party Claim (whether or not the Indemnitor shall have assumed the defense of such Third Party Claim)
to the extent such participation relates to a Claim or defense as to which the Indemnitor or its counsel may have a conflict of
interest; provided that the Indemnitor shall be responsible for the reasonable attorneys’ fees and expenses of no
more than one (1) law firm engaged by the Claimant.

 

(c)          Limits
on Indemnification

 

Notwithstanding anything
to the contrary contained in this Agreement, the maximum amount of indemnifiable Losses which may be recovered from the Indemnitor
pursuant to ‎Section 8 (b)(i)(x) (except with respect to the Fundamental
Representations) shall be an amount equal to $325,165 (the “Cap”); provided, however, that
the Indemnitor shall not have any obligation to provide an indemnity to any Indemnified Party until the aggregate amount of all
indemnifiable Losses for which the Indemnitor would, but for this proviso, be liable exceeds $108,388, at which time the Indemnitor
shall be liable to indemnify the Indemnified Parties for the entire amount of such Losses; provided further, however,
that the preceding limitations of liability in this Section 8(c) shall not apply to any Losses or other claims to the extent
resulting from any Project LLC Pre-Closing Liability, fraud, gross negligence, or willful misrepresentation or misconduct.

 

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(d)          Set-Off
Right

 

Upon written notice
to Development specifying in reasonable detail the basis therefor, the Investor may cause the Company to set off and pay to an
Indemnified Party, any amount to which such Indemnified Party claims to be entitled from Development, and including any amounts
that may be owed under this Section 8 or otherwise, against amounts otherwise payable as distributions or guaranteed payments
to Development or any of its Affiliates under the LLC Agreement (including, without limitation, the Development Fee, as defined
in the LLC Agreement) by virtue of the ownership by Development or any of its Affiliates of Series A Units or Series B Units or
otherwise. The exercise of such right of set-off by the Investor in good faith, whether or not ultimately determined to be justified,
will not constitute a default under this Agreement or the LLC Agreement, regardless of whether Development disputes such set-off
claim. Neither the exercise of, nor the failure to exercise, such right of set-off will constitute an election of remedies or limit
the Investor in any manner in the enforcement of any other remedies that may be available to it.

 

Section 9. Assignment; Parties in
Interest

 

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

 

Section 10. Entire Agreement; Severability

 

This Agreement, the
Project LLC Purchase Agreement and the LLC Agreement contain the entire understanding of the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings among the parties with respect to such subject matter, including,
without limitation, the Term Sheets dated November 3 and 4, 2014, and dated January 8, 2015 among Development, Project LLC and
Entropy Investment Management LLC. It is the desire and intent of the parties that the provisions of this Agreement be enforced
to the fullest extent permissible under the law and public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, in the event that any provision of this Agreement would be held in any jurisdiction to be invalid, prohibited or unenforceable
for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of
this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing,
if such provision could be more narrowly drawn so as not be invalid, prohibited or unenforceable in such jurisdiction, it shall,
as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.

 

Section 11. Notices

 

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

 

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if to the Company or the Investor:

 

c/o York Capital Management

 

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

 

Tel 212-710-6567

 

Fax 646-514-9321

 

Attention: General Counsel

 

Email: mmauro@yorkcapital.com

 

if to Development:

 

Blue Sphere Corporation

 

301 McCullough Drive, 4th Floor

 

Charlotte, NC 28262

 

Attn: Shlomi Palas

 

with copies to:

 

Orit Marom-Albeck, Adv.

 

4 Berkowitz St. Level 8 (Museum Tower)

 

Tel-Aviv , Israel, 6423806

 

Tel: +972-3-7778333

 

Fax: +972-3-7778444

 

e-mail: oritma@shibolet.com

 

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

 

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Section 12. Amendments; Waivers

 

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

 

Section 13. Counterparts

 

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

 

Section 14. Headings

 

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

 

Section 15. Governing Law

 

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

 

Section 16. Arbitration

 

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

 

    	25

    	 

    

 

Section 17. Specific Performance

 

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

 

Section 18. Definitions; Interpretation

 

(a)          Definitions

 

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

 

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

 

“ALTA”
means the American Land and Title Association.

 

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

 

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

 

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

 

    	26

    	 

    

 

“Company Fundamental
Representations” means Section 4(a) (Organization), Section 4(b) (Authorization of the Documents; No Conflicts), and
Section 4(d) (Authorization of Series A Units).

 

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

 

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

 

“Development
Fundamental Representations” means Section 3(a) (Organization), Section 3(b) (Authorization of the Documents;
No Conflicts), Section 3(d) (Capitalization of Project LLC), Section 3(h) (Assets, Properties and Rights; Title),
Section 3(m) (Tax Matters) and Section 3(o) (Brokers).

 

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

 

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

 

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

 

    	27

    	 

    

 

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

 

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

 

“EPC
Agreement” means that certain Amended and Restated Turnkey Agreement for the Design, Construction and Delivery of a Biogas
Plant between Auspark LLC and Orbit Energy Charlotte, LLC, dated June 5, 2014, as amended through the date hereof, with respect
to the Project.

 

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

 

“FERC”
means the Federal Regulatory Energy Commission.

 

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

 

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

 

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

 

    	28

    	 

    

 

“Interconnection
Agreement” means that certain North Carolina Interconnection Agreement between Duke Energy Carolinas, LLC and Orbit Energy
Charlotte, LLC, dated November 25, 2013.

 

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

 

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

 

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

 

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

 

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

 

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

 

“North Carolina
Tax Credit” means tax credits for investing in renewable energy projects allowable under Sections 105-129 et seq.
of the General Statutes of North Carolina.

 

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

 

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

 

    	29

    	 

    

 

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

 

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

 

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

 

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

 

“Power Purchase
Agreement” means that certain Amended and Restated Renewable Energy Power Purchase Agreement between Duke Energy Carolinas,
LLC and Orbit Energy Charlotte, LLC, dated on or about October 2012, with respect to the Project, as amended by a First Amendment
dated April 25, 2013 and a Second Amendment dated January 31, 2014, as presented by Development to Investor prior to the date of
this Agreement.

 

“Power Purchaser”
means Duke Energy Carolinas, LLC.

 

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

 

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

 

    	30

    	 

    

 

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

 

“Purchase
Agreement” has the meaning set forth in Section 3(p)(ii).

 

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

 

“Releasees”
has the meaning set forth in Section 7(f).

 

“Releasors”
has the meaning set forth in Section 7(f).

 

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

 

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

 

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

 

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

 

“Transmission
Provider” means Duke Energy Carolinas, LLC.

 

(b)          Index
of Certain Other Definitions

 

The following capitalized terms used in
this Agreement have the meanings located in the corresponding Section referred to below:

 

	Term	Section
	AAA	‎Section 16
	Agreement	Preamble
	Cap	‎Section 8(c)
	Claimant	‎Section 8(b)(ii)
	Closing	‎Section 2  
	Closing Date	‎Section 2
	Company	Preamble
	Cash Consideration	Section 1
	Contract	‎Section 3(j)
	Development	Preamble
	Encumbrances	‎Section 3(h)(iv)
	Fundamental Representations	‎Section 8(a)
	Indemnified Parties	‎Section 8(b)(i)
	Indemnitor	‎Section 8(b)(i)
	Investor	Preamble
	Orbit Purchase Agreement	Recitals
	Outstanding Permits	‎Section 3(k)(i)
	Proceedings	‎Section 3(l)
	Project	Recitals
	Project Assets	Section 3(h)
	
        Project LLC

        Project LLC Purchase Agreement
	
        Recitals

        Recitals

	
        Real Property‎

        Real Property Closing
	
        Section 3(p)

        Recitals

	Related Party	‎Section 3(n)
	Series A Units	Recitals
	
        Series B Units

        Seller
	
        Recitals

        Recitals

	Third Party Claim	‎Section 8(b)(ii)

 

    	32

    	 

    

 

(d)          Rules
of Construction

 

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

 

[Signature pages follow]

 

    	33

    	 

    

 

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

 

	Concord Energy Partners LLC	 
	a Delaware limited liability company	 
	 	 
	By: York Renewable Energy Partners LLC, its	 
	Sole Member	 
	 	 	 
	By:	 	 
	 	 
	Name: Richard P. Swanson 	 
	 	 
	Title: General Counsel	 

 

[Signature Page: Development and Indemnification Agreement]

  

    	 

    	 

    

 

	York Renewable Energy Partners LLC	 
	a Delaware limited liability company	 
	 	 	 
	By:	 	 
	 	 
	Name: Richard P. Swanson	 
	 	 
	Title: General Counsel	 

 

[Signature Page: Development and Indemnification Agreement]

 

    	 

    	 

    

 

	BLUE SPHERE CORPORATION	 
	a Nevada corporation	 
	 	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

[Signature Page: Development and Indemnification Agreement]

 

    	 

    	 

    

 

Exhibit A

Project LLC Purchase Agreement

 

    	 

    	 

    

 

Exhibit B

Form of LLC Agreement

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