Document:

Exhibit

 
EXECUTION COPY 

$125,000,000 
 
 
EZCORP, INC.
 
2.875% Convertible Senior Notes due 2024 
 
 
PURCHASE AGREEMENT

June 29, 2017

June 29, 2017

UBS Securities LLC
Jefferies LLC
As Representatives of the Initial Purchasers

		
	c/o 
	UBS Securities LLC

1285 Avenue of the Americas
New York, New York 10019

Jefferies LLC 
520 Madison Avenue 
New York, New York 10022

Ladies and Gentlemen:
EZCORP, Inc., a Delaware corporation (the “Company”), proposes to issue and sell to the several purchasers named in Schedule I hereto (the “Initial Purchasers”) $125,000,000 aggregate principal amount of the Company’s 2.875% Convertible Senior Notes due 2024 (the “Firm Securities”) and, at the election of the Representatives (as defined below), to issue and sell up to an aggregate of $18,750,000 additional principal amount of its 2.875% Convertible Senior Notes due 2024 (the “Optional Securities” and, together with the Firm Securities, the “Securities”). UBS Securities LLC and Jefferies LLC have agreed to act as the representatives of the several Initial Purchasers (the “Representatives”) in connection with the offering and sale of the Securities.  Shares of the Company’s Class A Non-Voting Common Stock, par value $0.01 per share, are hereinafter referred to as the “Common Stock.” The Securities will be convertible into cash, shares of Common Stock (the “Underlying Securities”) or a combination of cash and Underlying Securities, at the Company’s election.     
The Securities will be issued pursuant to the provisions of an indenture, to be dated as of July 5, 2017 (the “Indenture”), among the Company and Wells Fargo Bank, N.A., as trustee (the “Trustee”).
All references herein to the “Credit Agreement” shall be to that certain Financing Agreement, dated as of September 12, 2016 (as amended, amended and restated or otherwise modified), among the Company, certain domestic subsidiaries of the Company from time to time party thereto, the Lenders party thereto, and Fortress Credit Co LLC (as Administrative Agent and Collateral Agent). 
The Company understands that the Initial Purchasers propose to make an offering of the Securities on the terms and in the manner set forth herein and in the Time of Sale Memorandum (as defined herein) and agrees that the Initial Purchasers may resell, subject to the conditions set forth herein, all or a portion of the Securities to purchasers (the “Subsequent Purchasers”) on the terms set forth in the Time of Sale Memorandum (the first time when sales of the Securities were made, which was 8:00 a.m., New York City time, on the date of this Agreement, is referred to as the “Time of Sale”).  The Securities will be offered without being registered under the Securities Act of 1933, as amended (the “Securities Act”), to qualified institutional buyers in compliance with the exemption from registration provided by Rule 144A under the Securities Act (“Rule 144A”).  Pursuant to the terms of the Securities and the Indenture, investors who acquire Securities shall be deemed to have agreed that Securities may be resold or otherwise transferred, after the date hereof, only if such Securities are registered for sale under the Securities Act or if an exemption from the registration requirements of the Securities Act is available (including the exemptions afforded by Rule 144A).  The Company hereby confirms that it has authorized the use of the Time of Sale Memorandum, the Final Memorandum (as defined herein) and any Additional Written Offering Communications (as defined herein) in connection with the offer and sale of the Securities by the Initial Purchasers.
In connection with the sale of the Securities, the Company has prepared and delivered to each Initial Purchaser copies of a preliminary offering memorandum, dated June 27, 2017 (the “Preliminary Memorandum”), and prepared and delivered to each Initial Purchaser copies of a pricing term sheet, dated June 29, 2017 (the “Pricing Term Sheet”), describing the terms of the Securities and the Common Stock, each for use by such Initial Purchaser in connection with its solicitation of offers to purchase the Securities.  For purposes of this Agreement, “Additional Written Offering Communication” means any written communication (as defined in Rule 405 under the Securities Act) that constitutes an offer to sell or a solicitation of an offer to buy the Securities other than the Preliminary Memorandum, the Pricing Term Sheet or the Final Memorandum; “Time of Sale Memorandum” means the Preliminary Memorandum together with the Pricing Term Sheet and each Additional Written Offering Communication or other information, if any, each identified in Schedule II hereto under the caption “Time of Sale Memorandum”; and “General Solicitation” means any offer to sell or solicitation of an offer to buy the Securities by any form of general solicitation or advertising (as those terms are used in Regulation D under the Securities Act).  Promptly after this Agreement is executed and delivered, the Company will prepare and deliver to each Initial Purchaser a final offering memorandum, dated the date hereof (the “Final Memorandum”). As used herein, the terms “Preliminary Memorandum,” “Time of Sale Memorandum” and “Final Memorandum” shall include the documents, if any, incorporated by reference therein prior to the Time of Sale.  The terms “supplement,” “amendment” and “amend” as used herein with respect to the Preliminary Memorandum, the Time of Sale Memorandum or the Final Memorandum shall include all documents subsequently filed by the Company with the Securities and Exchange Commission (the “Commission”) pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act” which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder), that are deemed to be incorporated by reference therein.

1.Representations and Warranties. The Company hereby represents and warrants to, and agrees with each Initial Purchaser that, as of the Time of Sale and as of the Closing Date:
(a)    (i) Each document, if any, filed or to be filed pursuant to the Exchange Act and incorporated by reference in the Preliminary Memorandum, the Time of Sale Memorandum or the Final Memorandum complied or will comply when so filed in all material respects with the Exchange Act, (i) the Time of Sale Memorandum at the Time of Sale did not, and at the Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, (iii) any Additional Written Offering Communication prepared, used or referred to by the Company, when considered together with the Time of Sale Memorandum, at the Time of Sale did not, and at the Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, (iv) any General Solicitation that is not an Additional Written Offering Communication, made by the Company or by the Initial Purchasers with the consent of the Company, when considered together with the Time of Sale Memorandum, at the Time of Sale did not, and at the Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and (v) the Final Memorandum as of its date and at the Closing Date will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that the representations and warranties set forth in this paragraph do not apply to statements in or omissions from the Time of Sale Memorandum, the Final Memorandum, any Additional Written Offering Communication or any General Solicitation based upon information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representatives expressly for use therein.
(b)    Except for the Additional Written Offering Communications, if any, identified in Schedule II hereto and furnished to you before first use, the Company has not prepared, used or referred to, and will not, without your prior consent, prepare, use or refer to, any Additional Written Offering Communication.
(c)    The Company has been duly incorporated, is validly existing as a corporation in good standing under the laws of the State of Delaware, has the corporate power and authority to own its property and to conduct its business as described in the Time of Sale Memorandum, and to enter into and perform its obligations under each of this Agreement, the Indenture and the Securities (together, the “Transaction Documents”).  The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not be reasonably expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.  For purposes of this Agreement, the term “subsidiary” has the meaning set forth in Rule 405 under the Securities Act but excludes Cash Converters International Limited.
(d)    Each subsidiary of the Company (i) has been duly incorporated or formed, as applicable, is validly existing as a corporation, limited liability company or partnership, as applicable, in good standing under the laws of the jurisdiction of its incorporation or formation, as applicable, except to the extent that the failure to be in good standing would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, and (ii) has the corporate, limited liability company or partnership power, as applicable, and authority to own its property and to conduct its business as described in the Time of Sale Memorandum and to enter into and perform its obligations under each of the Transaction Documents, as applicable.  Each subsidiary is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole; all of the issued partnership interests, limited liability company interests or shares of capital stock, as applicable, of each subsidiary have been duly and validly authorized and issued in accordance with the organizational documents of such subsidiary, are (except for general partner interests) fully paid (to the extent required under such subsidiary’s organizational documents) and non-assessable, except as such non-assessability may be affected by Section 18-607 of the Delaware Limited Liability Company Act or comparable provisions of the corporate laws of such subsidiary’s jurisdiction of organization or formation. All, or the lesser percentage with respect to those subsidiaries listed on Schedule III hereto, shares of capital stock, limited liability company interests or limited partnership interests (except for directors’ qualifying shares or interests) of the subsidiaries are owned directly or indirectly by the Company, free and clear of all liens, encumbrances, equities or claims (“Liens”), except for those that arise under the Credit Agreement.
(e)    This Agreement has been duly authorized, executed and delivered by the Company.
(f)    The authorized capital stock of the Company conforms as to legal matters to the description thereof contained in each of the Time of Sale Memorandum and the Final Memorandum.  The shares of Common Stock outstanding as of the date hereof have been duly authorized and are validly issued, fully paid and non-assessable.
(g)    The Securities have been duly authorized and, when executed and authenticated in accordance with the provisions of the Indenture, assuming due authentication of the Securities by the Trustee, and delivered to and paid for by the Initial Purchasers in accordance with the terms of this Agreement, will be valid and binding obligations of the Company, enforceable in accordance with their terms (except as enforceability may be limited by (i) applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (ii) public policy, applicable law relating to fiduciary duties and an implied covenant of good faith and fair dealing (the exceptions in (i) and (ii), together, the “Enforceability Exceptions”)), and will be entitled to the benefits of the Indenture.
(h)    [Reserved]
(i)    [Reserved]
(j)    The maximum number of Underlying Securities initially issuable upon conversion of the Securities (including the maximum number of additional Underlying Securities by which the Conversion Rate (as such term is defined in the Indenture) may be increased upon conversion in connection with a Make-Whole Fundamental Change (as such term is defined in the Indenture) and assuming (x) the Company elects, upon each conversion of the Securities, to deliver solely shares of Common Stock, other than cash in lieu of fractional shares, in settlement of each conversion and (y) the Initial Purchasers exercise their option to purchase the Additional Securities in full (the “Maximum Number of Underlying Securities”)) have been duly authorized and reserved and, when and to the extent issued and delivered by the Company upon conversion of the Securities in accordance with the terms of the Securities, will be validly issued, fully paid and non‐assessable, and the issuance of the Underlying Securities will not be subject to any preemptive or similar rights. 
(k)    The Indenture has been duly authorized by the Company and, on the Closing Date, will have been duly executed and delivered by the Company, and will constitute a valid and binding agreement of the Company, enforceable in accordance with its terms, except as enforceability may be limited by the Enforceability Exceptions.
(l)    The Securities to be purchased by the Initial Purchasers from the Company will on the Closing Date be substantially in the form contemplated by the Indenture.  The Securities and the Indenture will conform in all material respects to the descriptions thereof in the Time of Sale Memorandum and the Final Memorandum.
(m)    The Company’s capitalization is as set forth in the Time of Sale Memorandum and the Final Memorandum under the caption “Capitalization” (other than for subsequent issuances of capital stock, if any, pursuant to employee benefit plans described in the Time of Sale Memorandum and the Final Memorandum, upon exercise of outstanding options described in the Time of Sale Memorandum and the Final Memorandum or upon conversion of the Class B Voting Common Stock, par value $0.01, of the Company as described in the Time of Sale Memorandum and the Final Memorandum).  
(n)    Neither the Company nor any of its subsidiaries is (i) in violation of its charter, bylaws or other constitutive document or (ii) in default (or, with the giving of notice or lapse of time, would be in default) (“Default”) under any indenture, mortgage, loan or credit agreement, note, contract, franchise, lease or other instrument to which the Company or any of its subsidiaries is a party or by which it or any of them may be bound (including, without limitation, the Credit Agreement), or to which any of the property or assets of the Company or any of its subsidiaries is subject (each, an “Existing Instrument”), except, in the case of clause (ii) above, for such Defaults as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.  The Company’s execution, delivery and performance of the Transaction Documents, and the issuance and delivery of the Securities, and consummation of the transactions contemplated hereby and thereby and by the Time of Sale Memorandum and the Final Memorandum (i) will not result in any violation of the provisions of the charter, bylaws or other constitutive document of the Company or any of its subsidiaries, (ii) will not conflict with or constitute a breach of, or Default or a Debt Repayment Triggering Event (as defined below) under, or result in the creation or imposition of any Lien upon any property or assets of the Company or any of its subsidiaries pursuant to, or require the consent of any other party to, any Existing Instrument and (iii) will not result in any violation of any law, administrative regulation or administrative or court decree applicable to the Company or any of its subsidiaries,  except, with respect to clause (ii) and (iii), for such conflicts, breaches, Defaults, Debt Repayment Triggering Events, Liens or violations as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.  As used herein, a “Debt Repayment Triggering Event” means any event or condition which gives, or with the giving of notice or lapse of time would give, the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of its subsidiaries.
(o)    Based on the representations and warranties of the Initial Purchasers contained in Section ‎‎7 hereof, no consent, approval, authorization, filing with or other order of, or qualification with, any court or other governmental or regulatory authority or agency is required for the Company’s execution, delivery and performance of the Transaction Documents, or the issuance and delivery of the Securities, or consummation of the transactions contemplated hereby and thereby and by the Time of Sale Memorandum and the Final Memorandum, except for such consents, approvals, authorizations, filings, orders or qualifications (i) as may be required under the securities or “Blue Sky” laws of the several states of the United States or provinces of Canada in connection with the purchase and sale of the Securities by the Initial Purchasers, (ii) as have been obtained or made by the Company and are in full force and effect, (iii) as may be required under the Exchange Act or (iv) such consents, approvals, authorizations, filings, orders or qualifications that, if not obtained, would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.
(p)    There has not occurred any material adverse change, or any development involving a prospective material adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its subsidiaries, taken as a whole, from that set forth in the Time of Sale Memorandum (excluding any amendment or supplement thereto) and the Final Memorandum (excluding any amendment or supplement thereto) provided to prospective purchasers of the Securities.
(q)    Subsequent to the respective dates as of which information is given in each of the Time of Sale Memorandum and the Final Memorandum, (i) the Company and its subsidiaries have not incurred any liability or obligation, direct or contingent, that is material to the Company and its subsidiaries, taken as a whole, nor entered into any transaction material to the Company and its subsidiaries, taken as a whole; (ii) the Company has not purchased any of its outstanding capital stock, nor declared, paid or otherwise made any dividend or distribution of any kind on its capital stock; and (iii) there has not been any material change in the capital stock, short‐term debt or long‐term debt of the Company or any of its subsidiaries, except in each case as described in each of the Time of Sale Memorandum and the Final Memorandum, respectively.
(r)    Other than proceedings accurately described in all material respects in the Time of Sale Memorandum, there are no legal or governmental proceedings pending or, to the Company’s knowledge, threatened to which the Company or any of its subsidiaries is a party or to which any of the properties of the Company or any of its subsidiaries is subject that would, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, or that would, individually or in the aggregate, reasonably be expected to have a material adverse effect on the power or ability of the Company to perform its obligations under the Transaction Documents or to consummate the transactions contemplated hereby and thereby and by the Time of Sale Memorandum and the Final Memorandum.  No material labor dispute with the employees of the Company or any of its subsidiaries exists or, to the Company’s knowledge, is threatened or imminent.
(s)    Except as would not, individually or in the aggregate, be reasonably expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole:  (i) each of the Company and its subsidiaries and their respective operations and facilities are in compliance with, and not subject to any known liabilities under, Environmental Laws (as defined below), which compliance includes, without limitation, having timely applied for or received, and being in compliance with the terms and conditions of, any permits, licenses or other governmental authorizations or approvals received as required under Environmental Laws for the business, properties and facilities of the Company or its subsidiaries as currently owned or operated; (ii) there is no claim, action or cause of action filed with a court or governmental authority, no investigation with respect to which the Company or any of its subsidiaries has received written notice, and no written notice by any governmental authority or other third party alleging liability on the part of the Company or any of its subsidiaries based on or pursuant to any Environmental Law; (iii) neither the Company nor any of its subsidiaries is conducting or paying for, in whole or in part, any investigation, response or other corrective action pursuant to any Environmental Law at any real property; (iv) no lien or encumbrance has been recorded pursuant to any Environmental Law with respect to any assets, facility or property owned, operated or leased by the Company or any of its subsidiaries; and (v) to the Company’s knowledge, there are no conditions or occurrences, including, without limitation, the Release (as defined below) or threatened Release of any Material of Environmental Concern (as defined below) at any real property currently or, to the knowledge of the Company, formerly owned, operated or leased by the Company or any of its subsidiaries, that would reasonably be expected to result in a violation of or liability under any Environmental Law on the part of the Company or any of its subsidiaries, including without limitation, any such liability which the Company or any of its subsidiaries has retained or assumed either contractually or by operation of law.
For purposes of this Agreement, “Environment” means ambient air, surface water, groundwater, drinking water, soil, surface and subsurface strata, and natural resources such as wetlands, flora and fauna. “Environmental Laws” means the applicable common law and all applicable federal, state and local laws or regulations, ordinances, codes, orders, decrees, judgments and injunctions issued, promulgated or entered thereunder, relating to pollution or protection of the Environment or human health (to the extent relating to exposure to Materials of Environmental Concern), including without limitation, those relating to (i) the Release or threatened Release of Materials of Environmental Concern; and (ii) the manufacture, processing, distribution, use, generation, treatment, storage, transport, handling or recycling of Materials of Environmental Concern.  “Materials of Environmental Concern” means any substance, material, pollutant, contaminant, chemical, waste, compound or constituent, in any form, including without limitation, petroleum and petroleum products, subject to regulation or which can give rise to liability under any Environmental Law.  “Release” means any release, spill, emission, discharge, deposit, disposal, leaking, pumping, pouring, dumping, emptying, injection or leaching into the Environment, or into, from or through any building, structure or facility.
(t)    In the ordinary course of its business, the Company periodically reviews the effect of Environmental Laws on the business, operations and properties of the Company and its subsidiaries, in the course of which it identifies and evaluates associated costs and liabilities that are reasonably likely to be incurred pursuant to such Environmental Laws (including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related constraints on operating activities and any potential liabilities to third parties).  On the basis of such review and the amount of its established reserves, the Company has reasonably concluded that such associated costs and liabilities would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.
(u)    The Company is not, and after giving effect to the offering and sale of the Securities and the application of the proceeds thereof as described in the Final Memorandum will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”).
(v)    None of the Company, any affiliate (as defined in Rule 501(b) of Regulation D under the Securities Act, an “Affiliate”), or any person acting on its or any of their behalf (other than the Initial Purchasers, as to whom the Company makes no representation or warranty) has, directly or indirectly, solicited any offer to buy or offered to sell, or will, directly or indirectly, solicit any offer to buy or offer to sell, in the United States or to any United States citizen or resident, any security which is or would be integrated with the sale of the Securities in a manner that would require the Securities to be registered under the Securities Act.  None of the Company, its Affiliates, or any person acting on its or any of their behalf (other than the Initial Purchasers, as to whom the Company makes no representation or warranty) has prepared, used or referred to or made any General Solicitation other than any General Solicitation, if any, identified on Schedule II hereto, and furnished to you before first use or used in accordance with Section ‎6(i) hereof (each a “Permitted General Solicitation”), or those made with the prior written consent of the Representatives.  
(w)    Subject to compliance by the Initial Purchasers with the procedures set forth in Section ‎7 hereof, it is not necessary in connection with the offer, sale and delivery of the Securities to the Initial Purchasers and to each Subsequent Purchaser in the manner contemplated by this Agreement and the Time of Sale Memorandum to register the Securities under the Securities Act or to qualify the Indenture under the Trust Indenture Act of 1939.
(x)    When issued on the Closing Date, the Securities will be eligible for resale pursuant to Rule 144A and will not be of the same class (within the meaning of Rule 144A of the Act) as securities of the Company or its subsidiaries listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated interdealer quotation system.
(y)    None of the Company, any of its subsidiaries or Affiliates, nor any director, officer, or employee of the Company or any of its subsidiaries, or to the Company’s knowledge, any agent or representative of the Company or of any of its subsidiaries, has taken or will take any action in furtherance of an unlawful offer, payment, promise to pay, or authorization or approval of the payment or giving of money, property, gifts or anything else of value, directly or indirectly, to any “government official” (including any officer or employee of a government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office) to influence official action or secure an improper advantage; and the Company and its subsidiaries, and to the Company’s knowledge, their Affiliates have conducted their businesses in compliance with applicable anti-corruption laws and have instituted and maintained and will continue to maintain policies and procedures designed to promote and achieve compliance with such laws and with the representation and warranty contained herein.
(z)    The operations of the Company and its subsidiaries are and have been conducted at all times in material compliance with all applicable financial recordkeeping and reporting requirements, including those of the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the applicable anti-money laundering statutes of jurisdictions where the Company and its subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened. 
(aa)    (i)  None of the Company, any of its subsidiaries or any director, officer, or employee thereof, or, to the Company’s knowledge, any agent, Affiliate or representative of the Company or any of its subsidiaries, is an individual or entity (“Person”) that is, or is owned or controlled by a Person that is:
(A)  the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”), the United Nations Security Council (“UNSC”), the European Union (“EU”), Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”), or
(B)  located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Crimea, Cuba, Iran, North Korea and Syria).
(ii)  The Company represents and covenants that it will not, directly or indirectly, use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds, to any subsidiary, joint venture partner or other Person:
(A)  to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions; or
(B)  in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).
(bb)    In the past five years, the Company and its subsidiaries have not knowingly engaged in, are not now knowingly engaged in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.
(cc)    Except as would not, individually or in the aggregate, be reasonably expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, the operations of the Company and its subsidiaries are and have been conducted at all times in compliance with all truth-in-lending related laws, all gun and firearm laws, all laws of each state and locality in which the Company or any of its subsidiaries or franchisees do business that are applicable to employers, pawnbrokers, jewelers, second-hand goods dealers, payday lenders, online or internet lenders, check cashers and title lenders, all state and federal franchising and business opportunity laws, all usury and consumer protection related laws, including, without limitation, the Gramm-Leach-Bliley Act, the Truth in Lending Act, the Equal Credit Opportunity Act, the Electronic Fund Transfer Act, the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Americans With Disabilities Act, together, in each case, with all rules and regulations thereunder and any related or similar rules or regulations issued, administered or enforced by any governmental agency; and in each case, to the extent that such laws, rules, or regulations are applicable to the operations of the Company and its subsidiaries.  Except for federal regulator examinations in the ordinary course of business and except as described in all material respects in the Time of Sale Memorandum, no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to any such law, rule, or regulation, and that could reasonably be expected to materially adversely affect the ability of the Company and its subsidiaries to conduct their operations under such law, rule, or regulation is pending or, to the knowledge of the Company, threatened.
(dd)    Each of Deloitte & Touche LLP and BDO USA, LLP (together with Deloitte & Touche LLP, the “Independent Accountants”) is an independent public or certified public accountant within the meaning of the Rules of Professional Conduct/Code of Ethics (or similar rules) and Regulation S-X under the Securities Act and the Exchange Act, and any non-audit services provided to the Company by such Independent Accountant have been approved by the audit committee of the board of directors of the Company.
(ee)    The financial statements, together with the related schedules and notes, of the Company and its consolidated subsidiaries included in the Time of Sale Memorandum present fairly in all material respects the consolidated financial position of the Company and its consolidated subsidiaries as of and at the dates indicated and the results of their operations and cash flows for the periods specified.  Such financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applied on a consistent basis throughout the periods involved, except as may be expressly stated in the related notes thereto.  The fiscal year financial data set forth in the Time of Sale Memorandum under the caption “Summary Historical Consolidated Financial and Operating Data” fairly present in all material respects the information set forth therein on a basis consistent with that of the audited financial statements incorporated by reference in the Time of Sale Memorandum, and the interim period financial data set forth in the Time of Sale Memorandum under the caption “Summary Historical Consolidated Financial and Operating Data” fairly present in all material respects the information set forth therein on a basis consistent with that of the unaudited financial statements incorporated by reference in the Time of Sale Memorandum.  The statistical and market‐related data and forward‐looking statements included in the Time of Sale Memorandum are based on or derived from sources that the Company believes to be reliable and accurate in all material respects and represent their good faith estimates that are made on the basis of data derived from such sources. 
(ff)    The Company and its subsidiaries own or possess, or can acquire on reasonable terms, all material patents, patent rights, licenses, inventions, copyrights, know‐how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks and trade names currently employed by them in connection with the business now operated by them described in the Time of Sale Memorandum or the Final Memorandum, except where the failure to own or possess such legal right to use such patent, patent right, license, invention, copyright, know how, trademark, service mark or trade name would not, individually or in the aggregate, be reasonably expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, and neither the Company nor any of its subsidiaries has received any notice of infringement of or conflict with asserted rights of others with respect to any of the foregoing which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would be reasonably expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.
(gg)    The Company and its subsidiaries possess all licenses, certificates, authorizations and permits (“permits”) issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses in the manner described in the Time of Sale Memorandum, except for such permits which, if not obtained, would not, individually or in the aggregate, be reasonably expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.  Except for federal, state and local regulator examinations in the ordinary course of business, neither the Company nor any of its subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would be reasonably expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, except as described in the Time of Sale Memorandum.
(hh)    The permits are the only licenses, certificates, authorizations and permits that are required under any statutes, rules and regulations of governmental agencies or regulatory bodies of the United States (including the Gun Control Act of 1968, as amended by the Brady Handgun Violence Prevention Act of 1993 and other legislation) and of the respective states in which the Company and its subsidiaries operates that are currently in effect, to the extent such statutes, rules or regulations govern the licensing of the Company and its subsidiaries to deal in firearms and the receipt, possession and transfer of firearms by the Company and its subsidiaries (the “Firearms Laws”), for the Company and its subsidiaries to engage in the firearms transactions it currently offers in the manner described in the Time of Sale Memorandum. The Company and its subsidiaries are in compliance with all applicable requirements of the Firearms Laws, including the submission of all reports and filings and the payment of all fees required by the applicable regulatory agencies, except to the extent that any non-compliance with such requirements would not, individually or in the aggregate, be reasonably expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole. There are (A) no pending or threatened criminal or administrative complaints, investigations, actions or other proceedings, except for regulatory inspections in the ordinary course of business and (B) no orders, decisions, or decrees issued within the last twelve months that could reasonably be expected to have a material adverse effect on the validity of the permits, or the ability of the Company and its subsidiaries to engage in firearms transactions pursuant to the Fireams Laws in the manner described in the Time of Sale Memorandum. 
(ii)    The Company and its subsidiaries have good and indefeasible title in fee simple to all real property and good and marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries, taken as a whole, in each case free and clear of all Liens and defects except those that (i) arise under the Credit Agreement, (ii) are described in the Time of Sale Memorandum or (iii) do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company and its subsidiaries; and any real property and buildings held under lease by the Company and its subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its subsidiaries, in each case except those arising under the Credit Agreement or described in the Time of Sale Memorandum.
(jj)    The Company and each of its subsidiaries have filed all tax returns required to be filed through the date of this Agreement or have requested extensions of the due date for the filing thereof (except where the failure to file would not, individually or in the aggregate, be reasonably expected to have a material adverse effect) and have paid all taxes (except for cases in which the failure to pay would not, individually or in the aggregate, be reasonably expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, or, except as currently being contested in good faith and for which reserves required by GAAP have been created in the financial statements of the Company), and no tax deficiency has been determined adversely to the Company or any of its subsidiaries which has had (nor does the Company nor any of its subsidiaries have any notice or knowledge of any tax deficiency which would reasonably be expected to be determined adversely to the Company or its subsidiaries and which would reasonably be expected to have) a material adverse effect on the Company and its subsidiaries, taken as a whole.  The Company has made adequate charges, accruals and reserves in accordance with GAAP in the applicable financial statements referred to in Section ‎1(ee) hereof in respect of all taxes for all periods not closed by applicable statutes.
(kk)    The Company and each of its subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged; neither the Company nor any of its subsidiaries has been refused any insurance coverage sought or applied for; and neither the Company nor any of its subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, except as described in the Time of Sale Memorandum.
(ll)    The Company has not taken nor will take, directly or indirectly, any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Securities. 
(mm)    On and immediately after the Closing Date (after giving effect to the issuance and sale of the Securities and the other transactions related thereto as described in the Time of Sale Memorandum and the Final Memorandum) the Company and its subsidiaries, taken as a whole, will be Solvent.  As used herein, the term “Solvent” means, with respect to any person on a particular date, that on such date (i) the fair market value of the assets of such person is greater than the total amount of liabilities (including contingent liabilities) of such person, (ii) the present fair salable value of the assets of such person is greater than the amount that will be required to pay the probable liabilities of such person on its debts as they become absolute and matured, (iii) such person is able to realize upon its assets and pay its debts and other liabilities, including contingent obligations, as they mature and (iv) such person does not have unreasonably small capital.
(nn)    The Company and its subsidiaries and their respective officers and directors are in compliance with the applicable provisions of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act,” which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder).
(oo)    The Company and its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurances that:  (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences; and (v) the interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Preliminary Memorandum, the Time of Sale Memorandum or the Final Memorandum fairly presents the information called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto.
(pp)    The Company has established and maintains disclosure controls and procedures (as such term is defined in Rules 13a-15 under the Exchange Act); such disclosure controls and procedures are designed to ensure that the information required to be disclosed by the Company in the reports it files or will file or submit under the Exchange Act, as applicable, is accumulated and communicated to management of the Company, including the Company’s principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure to be made and such disclosure controls and procedures are effective in all material respects to perform the functions for which they were established subject to the limitations of any such control system; the Company’s auditors and the audit committee of the board of directors of the Company have been advised of: (i) any material weaknesses in the design or operation of internal controls over financial reporting which could adversely affect the Company’s ability to record, process, summarize and report financial data; and (ii) any fraud, whether or not material, that involves management or other employees who have a role in the Company’s internal controls over financial reporting; and since the date of the most recent evaluation of such disclosure controls and procedures, there have been no changes in internal controls over financial reporting or in other factors that has materially and adversely affected, or is reasonably likely to materially and adversely affect, internal controls over financial reporting.
(qq)    None of the Company, any of its subsidiaries or any agent thereof acting on their behalf has taken, and none of them will take, any action that might cause this Agreement or the issuance or sale of the Securities to violate Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve System.
(rr)    Except as would not reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, (i) the Company and its subsidiaries and any “employee benefit plan” (as defined under Section 3(3) of the Employee Retirement Income Security Act of 1974 (as amended, “ERISA,” which term, as used herein, includes the regulations and published interpretations thereunder)) established or maintained by the Company and its subsidiaries or any “ERISA Affiliate,” defined as any Person under common control with the Company or a subsidiary of the Company under Section 414(b), (c), (m), or (o) of the Internal Revenue Code of 1986 (as amended, the “Code,” which term, as used herein, includes the regulations and published interpretations thereunder), are in compliance with ERISA; (ii) no “reportable event” (as defined under Section 4043 of ERISA) has occurred or is reasonably expected to occur  with respect to any “employee benefit plan” established or maintained by the Company, its subsidiaries or any ERISA Affiliate; (iii) no “employee benefit plan” established or maintained by the Company or its subsidiaries or any ERISA Affiliate, if such “employee benefit plan” were terminated, would have any “amount of unfunded benefit liabilities” (as defined under Section 4001(18) of ERISA); (iv) neither the Company nor its subsidiaries nor any ERISA Affiliate has incurred or reasonably expects to incur any material liability under (A) Title IV of ERISA with respect to termination of, or withdrawal from, any “employee benefit plan” or (B) Sections 412, 4971, 4975 or 4980B of the Code; and (v) each “employee benefit plan” established or maintained by the Company or its subsidiaries or any ERISA Affiliate that is intended to be qualified under Section 401(a) of the Code is so qualified and nothing has occurred, whether by action or failure to act, which would cause the loss of such qualification.
(ss)    No relationship, direct or indirect, exists between or among the Company or any of its subsidiaries on the one hand, and any director, officer, member, equity holder, customer or supplier of the Company or any of its subsidiaries, on the other hand, which is required by the Exchange Act to be described in an annual report on Form 10-K, quarterly report on Form 10-Q or current report on Form 8-K, as applicable, which is not so disclosed or incorporated by reference in the Time of Sale Memorandum and the Final Memorandum. There are no outstanding loans, advances (except advances for business expenses in the ordinary course of business) or guarantees of indebtedness by the Company or any of its subsidiaries to or for the benefit of any of the directors or executive officers of the Company.
(tt)    The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Preliminary Memorandum, the Time of Sale Memorandum or the Final Memorandum fairly presents the information called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto.
2.    Agreements to Sell and Purchase.  
(a)    The Company hereby agrees to issue and sell to the Initial Purchasers, and each Initial Purchaser, upon the basis of the representations and warranties herein contained, but subject to the conditions hereinafter stated, agrees, severally and not jointly, to purchase from the Company the respective principal amount of Firm Securities set forth in Schedule I hereto opposite its name at a purchase price of 97.40% of the principal amount thereof (the “Purchase Price”), plus accrued and unpaid interest, if any, from July 5, 2017 to the Closing Date (as defined below).  
(b)     On the basis of the representations and warranties contained in this Agreement, and subject to its terms and conditions, the Company agrees to sell to the Initial Purchasers, and the Initial Purchasers shall have the option to purchase, severally and not jointly, up to $18,750,000 principal amount of Optional Securities at the Purchase Price plus accrued interest, if any, to the date of payment and delivery. The Representatives may exercise this right on behalf of the Initial Purchasers in whole or from time to time in part by giving written notice to the Company not later than 11 days after the Closing Date. Any exercise notice shall specify the principal amount of Optional Securities to be purchased by the Initial Purchasers and the date on which such Optional Securities are to be purchased. Each purchase date must be at least one business day after the written notice is given and may not be earlier than the Closing Date nor later than ten business days after the date of such notice. Optional Securities may be purchased as provided in Section ‎4 hereof at any time and from time to time on or before the twelfth (12th) day following the Closing Date. On each day, if any, that Optional Securities are to be purchased (an “Option Closing Date”), each Initial Purchaser agrees, severally and not jointly, to purchase the principal amount of Optional Securities (subject to such adjustments to eliminate fractional Securities as you may determine) that bears the same proportion to the total principal amount of Optional Securities to be purchased on such Option Closing Date as the principal amount of Firm Securities set forth in Schedule I opposite the name of such Initial Purchaser bears to the total principal amount of Firm Securities.
3.    Terms of Offering. You have advised the Company that the Initial Purchasers will make an offering of the Securities purchased by the Initial Purchasers hereunder as soon as practicable after this Agreement is entered into as in your judgment is advisable.
4.    Payment and Delivery. Payment for the Securities shall be made to the Company in Federal or other funds immediately available in New York City against delivery of such Securities for the respective accounts of the several Initial Purchasers at 10:00 a.m., New York City time, on July 5, 2017, or at such other time on the same or such other date, not later than July 17, 2017, as shall be designated in writing by the Representatives.  The time and date of such payment are hereinafter referred to as the “Closing Date.” Such delivery and payment shall be made at the offices of Davis Polk & Wardwell LLP at 450 Lexington Avenue, New York, New York 10017 (or such other place as may be agreed to by the Company and the Representatives).  The Company hereby acknowledges that circumstances under which the Representatives may provide notice to postpone the Closing Date as originally scheduled include, but are in no way limited to, any determination by the Company or the Initial Purchasers to recirculate to investors copies of an amended or supplemented Time of Sale Memorandum or Final Memorandum or a delay as contemplated by the provisions of Section ‎10 hereof.
Payment for any Optional Securities shall be made to the Company in Federal or other funds immediately available in New York City against delivery of such Optional Securities for the respective accounts of the several Initial Purchasers at 10:00 a.m., New York City time, on the date and at the location specified in the corresponding notice described in Section ‎2 hereof or at such other time on the same date or on such other date or at such other location, in any event not later than July 17, 2017, as shall be designated in writing by the Representatives.
The Securities shall be in definitive form or global form, as specified by the Representatives, and registered in such names and in such denominations as the Representatives shall request in writing not later than one full business day prior to the Closing Date or the applicable Option Closing Date, as the case may be. The Securities shall be delivered to the Representatives (or to the Trustee, as custodian for The Depository Trust Company, in the case of global notes) on the Closing Date or an Option Closing Date, as the case may be, for the respective accounts of the Initial Purchasers, with any transfer taxes payable in connection with the transfer of the Securities to the Initial Purchasers duly paid, against payment of the Purchase Price therefor plus accrued interest, if any, to the date of payment and delivery. Time shall be of the essence, and delivery at the time and place specified in this Agreement is a condition to the obligations of the Initial Purchasers.
5.    Conditions to the Initial Purchasers’ Obligations. The several obligations of the Initial Purchasers to purchase and pay for the Firm Securities as provided herein on the Closing Date are subject to the satisfaction or waiver, as determined by the Representatives in its sole discretion, of the following conditions precedent on or prior to the Closing Date:
(a)    Subsequent to the execution and delivery of this Agreement and prior to the Closing Date:
(i)    there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded the Company or any of the securities of the Company or any of its subsidiaries or in the rating outlook for the Company by any “nationally recognized statistical rating organization,” as such term is defined in Section 3(a)(62) of the Exchange Act; and
(ii)    there shall not have occurred any change, or any development involving a prospective change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its subsidiaries, taken as a whole, from that set forth in the Time of Sale Memorandum (excluding any amendment or supplement thereto) and the Final Memorandum (excluding any amendment or supplement thereto), in each case provided to the prospective purchasers of the Securities that, in your judgment, is material and adverse and that makes it, in your judgment, impracticable to market the Securities on the terms and in the manner contemplated in the Time of Sale Memorandum (excluding any amendment or supplement thereto) and the Final Memorandum (excluding any amendment or supplement thereto).
(b)    The representations and warranties of the Company contained in this Agreement were true and correct on and as of the Time of Sale and on and as of the Closing Date as if made on and as of the Closing Date; the statements of the Company’s officers made pursuant to any certificate delivered in accordance with the provisions hereof shall be true and correct on and as of the date made and on and as of the Closing Date; the Company has performed  all covenants and agreements and satisfied all of the conditions on its part to be performed or satisfied hereunder on or prior to the Closing Date.
(c)    The Initial Purchasers shall have received on the Closing Date a certificate, dated the Closing Date and signed by the Chief Executive Officer or President of the Company and the Chief Financial Officer or Chief Accounting Officer of the Company to the effect set forth in Section ‎5(a)(i) hereof, and further to the effect that (i) there shall not have occurred any change, or any development involving a prospective change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its subsidiaries, taken as a whole, from that set forth in the Time of Sale Memorandum (excluding any amendment or supplement thereto) and the Final Memorandum (excluding any amendment or supplement thereto), in each case provided to the prospective purchasers of the Securities that is material and adverse to the Company and its subsidiaries, taken as a whole; (ii) the representations and warranties of the Company contained in this Agreement were true and correct as of the Time of Sale and are true and correct as of the Closing Date; (iii) the Company has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied hereunder on or before the Closing Date; and (iv) the sale of the Securities has not been enjoined (temporarily or permanently).
(d)    The Initial Purchasers shall have received on and dated as of the Closing Date, addressed to the Initial Purchasers, (i) an opinion and negative assurance letter of Vinson & Elkins L.L.P., outside counsel for the Company, to the effect set forth in Exhibit A, (ii) an opinion of Thomas H. Welch, Jr., Chief Legal Officer for the Company, to the effect set forth in Exhibit B and (iii) an opinion of Cadwalader, Wickersham & Taft LLP, outside counsel for the Company, to the effect set forth in Exhibit C. The foregoing shall be rendered to the Initial Purchasers at the request of the Company and shall so state therein.
(e)    The Initial Purchasers shall have received on the Closing Date an opinion and negative assurance letter of Davis Polk & Wardwell LLP, counsel for the Initial Purchasers, dated the Closing Date, with respect to such matters as may be reasonably requested by the Initial Purchasers.
(f)    On the date hereof, the Initial Purchasers shall have received from each Independent Accountant a “comfort letter” dated the date hereof addressed to the Initial Purchasers, in form and substance satisfactory to the Representatives, covering the financial information in the Time of Sale Memorandum for the period during which such Independent Accountant acted as auditor for the Company and other customary matters.  In addition, on the Closing Date, the Initial Purchasers shall have received from each Independent Accountant a “bring-down comfort letter” dated the Closing Date addressed to the Initial Purchasers, in form and substance satisfactory to the Representatives, in the form of the “comfort letter” delivered by such Independent Accountant on the date hereof, except that (i) it shall cover the applicable financial information in the Final Memorandum and any amendment or supplement thereto and (ii) procedures shall be brought down to a date no more than three days prior to the Closing Date.
(g)    The Company shall have executed and delivered the Indenture, in form and substance reasonably satisfactory to the Initial Purchasers, and the Initial Purchasers shall have received executed copies thereof.  
(h)    The sale of the Securities shall not be enjoined (temporarily or permanently) on the Closing Date.
(i)    The “lock-up” agreements, each substantially in the form of Exhibit D hereto, between you and executive officers and directors of the Company relating to sales and certain other dispositions of shares of Common Stock or certain other securities, delivered to you on or before the date hereof, shall be in full force and effect on the Closing Date.
(j)    The Maximum Number of Underlying Securities shall have been approved for listing on The NASDAQ Global Select Market (“NASDAQ”), subject to official notice of issuance.
(k)    On or before the Closing Date, the Initial Purchasers and counsel for the Initial Purchasers shall have received such information, documents, letters and opinions as they may reasonably require for the purposes of enabling them to pass upon the issuance and sale of the Securities as contemplated herein, or in order to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained
(l)    The Initial Purchasers shall have received a copy of the receipt of any payoff letters or other evidence of termination or retirement of the Credit Agreement, which is to be repaid with the proceeds of the Securities as set forth in the Time of Sale Memorandum, in form and substance reasonably satisfactory to the Initial Purchasers, and the liens under any security agreements, pledge agreements, mortgages, documents, instruments and other agreements executed in connection with the Credit Agreement will be released upon making of all filings and taking of such other necessary actions in each applicable jurisdiction.
If any condition specified in this Section ‎5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Representatives by notice to the Company at any time on or prior to the Closing Date, which termination shall be without liability on the part of any party to any other party, except that Sections ‎6(g), ‎8 and ‎11 hereof shall at all times be effective and shall survive such termination.
The several obligations of the Initial Purchasers to purchase Optional Securities hereunder are subject to the delivery to the Representatives on the applicable Option Closing Date of such documents, not inconsistent with the foregoing, as the Representatives may reasonably request.
6.    Covenants of the Company. The Company covenants with each Initial Purchaser as follows:
(a)    To furnish to you in New York City, without charge, as promptly as practicable following the Time of Sale and in any event not later than the second business day following the date hereof and during the period mentioned in Section 6(d) or (e) hereof, as many copies of the Time of Sale Memorandum, the Final Memorandum, any documents incorporated by reference therein and any supplements and amendments thereto as you may reasonably request.
(b)    Before amending or supplementing the Preliminary Memorandum, the Time of Sale Memorandum or the Final Memorandum, to furnish to you a copy of each such proposed amendment or supplement and not to use any such proposed amendment or supplement to which you reasonably object.
(c)    To furnish to you a copy of each proposed Additional Written Offering Communication to be prepared by or on behalf of, used by, or referred to by the Company and not to use or refer to any proposed Additional Written Offering Communication to which you reasonably object.
(d)    If the Time of Sale Memorandum is being used to solicit offers to buy the Securities at a time when the Final Memorandum is not yet available to prospective purchasers and any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Time of Sale Memorandum in order to make the statements therein, in the light of the circumstances under which they are made, not misleading or if, in the judgment of the Representatives or counsel for the Initial Purchasers, it is necessary to amend or supplement the Time of Sale Memorandum to comply with applicable law, forthwith to prepare and furnish, at its own expense, to the Initial Purchasers and to any dealer upon request, either amendments or supplements to the Time of Sale Memorandum so that the statements in the Time of Sale Memorandum as so amended or supplemented will not, in the light of the circumstances under which they are made, when delivered to a Subsequent Purchaser, be misleading or so that the Time of Sale Memorandum, as amended or supplemented, will comply with applicable law.
(e)    If, during such period after the date hereof and prior to the date on which all of the Securities shall have been sold by the Initial Purchasers, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Final Memorandum in order to make the statements therein, in the light of the circumstances under which they are made, not misleading or if, in the judgment of the Representatives or counsel for the Initial Purchasers, it is necessary to amend or supplement the Final Memorandum to comply with applicable law, forthwith to prepare and furnish, at its own expense, to the Initial Purchasers, either amendments or supplements to the Final Memorandum so that the statements in the Final Memorandum as so amended or supplemented will not, in the light of the circumstances under which they are made, when delivered to a Subsequent Purchaser, be misleading or so that the Final Memorandum, as amended or supplemented, will comply with applicable law.
(f)    (i) To cooperate with the Representatives and counsel for the Initial Purchasers to qualify or register (or to obtain exemptions from qualifying or registering) all or any part of the Securities for offer and sale under the securities laws of the several states of the United States, the provinces of Canada or any other jurisdictions designated by the Initial Purchasers, and to comply with such laws and to continue such qualifications, registrations and exemptions in effect so long as required for the distribution of the Securities and (ii) to advise the Representatives promptly of the suspension of the qualification or registration of (or any such exemption relating to) the Securities for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification, registration or exemption, to use its best efforts to obtain the withdrawal thereof at the earliest possible moment.  Notwithstanding the foregoing, the Company shall not be required to qualify as a foreign corporation nor to take any action that would subject it to general service of process in any such jurisdiction where it is not presently qualified or where it would be subject to taxation as a foreign corporation.
(g)    Whether or not the transactions contemplated in this Agreement are consummated or this Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of its obligations under this Agreement, including: (i) the fees, disbursements and expenses of the Company’s counsel, accountants and other advisors in connection with the issuance and sale of the Securities and all other fees or expenses of the Company, including, without limitation, in connection with the preparation, printing, filing, shipping and distribution of the Preliminary Memorandum, the Time of Sale Memorandum, the Final Memorandum, any Additional Written Offering Communication, any General Solicitation and any amendments and supplements to any of the foregoing, this Agreement, the Indenture, the Securities, and the delivering of copies thereof to the Initial Purchasers, (ii) all costs and expenses related to the authentication, issuance, transfer and delivery of the Securities to the Initial Purchasers, including any transfer or other taxes payable thereon, (iii) the cost of printing or producing any Blue Sky or legal investment memorandum in connection with the offer and sale of the Securities under state securities laws and all expenses in connection with the qualification of the Securities for offer and sale under state securities laws as provided in Section  ‎6(f) hereof, including filing fees and the reasonable fees and disbursements of counsel for the Initial Purchasers in connection with such qualification and in connection with the Blue Sky or legal investment memorandum, (iv) all fees and expenses in connection with the listing on NASDAQ of the Maximum Number of Underlying Securities, (v) the costs and charges of the Trustee and any transfer agent, registrar or depositary, (vi) the costs and expenses of the Company relating to investor presentations on any “road show” undertaken in connection with the marketing of the offering of the Securities, including, without limitation, expenses associated with the preparation or dissemination of any electronic road show, expenses associated with production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company, and travel and lodging expenses of the representatives and officers of the Company and any such consultants and (vii) all other cost and expenses incident to the performance of the obligations of the Company hereunder for which provision is not otherwise made in this Section.  It is understood, however, that except as provided in this Section, Section 8 hereof, and the last paragraph of Section ‎11 hereof, the Initial Purchasers will pay all of their costs and expenses, including fees and disbursements of their counsel, transfer taxes payable on resale of any of the Securities by them and any advertising expenses connected with any offers they may make.
(h)    Neither the Company nor any Affiliate will sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in the Securities Act) if, as a result of the doctrine of “integration” referred to in Rule 502 under the Securities Act, such offer or sale would render invalid (for the purpose of (i) the sale of the Securities by the Company to the Initial Purchasers, (ii) the resale of the Securities by the Initial Purchasers to the Subsequent Purchasers or (iii) the resale of the Securities by such Subsequent Purchasers to others) the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof or by Rule 144A or otherwise.
(i)    The Company (i) will not solicit any offer to buy or offer or sell the Securities by means of any form of general solicitation or general advertising (as those terms are used in Rule 502(c) of Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act other than a Permitted General Solicitation and (ii) will furnish to you a copy of each proposed General Solicitation to be made by the Company or on its behalf before its use, and will not make or use any proposed General Solicitation without your prior written consent.
(j)    (i) Prior to the Closing Date, to furnish to the Initial Purchasers, as soon as they have been prepared, a copy of any audited annual financial statements or unaudited interim financial statements of the Company for any period subsequent to the period covered by the most recent financial statements appearing in the Time of Sale Memorandum and the Final Memorandum; and (ii) while any of the Securities remain outstanding, to make available, upon request, to any holder of such Securities and any prospective purchasers thereof the information specified in Rule 144A(d)(4) under the Securities Act, unless at such time the Company shall be subject to Section 13 or 15(d) of the Exchange Act and shall have filed all reports required to be filed pursuant to such Sections and the related rules and regulations of the Commission.
(k)    During the period of one year after the Closing Date or any Option Closing Date, the Company will not be, nor will it become, an open-end investment company, unit investment trust or face-amount certificate company that is or is required to be registered under Section 8 of the Investment Company Act.
(l)    To use commercially reasonable efforts to obtain approval for the listing on NASDAQ of the Maximum Number of Underlying Securities, subject to official notice of issuance.
(m)    The Company will not, and will not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to, resell any of the Securities that have been acquired by any of them other than pursuant to an effective registration statement under the Securities Act or in accordance with Rule 144 under the Securities Act.
(n)    To apply the net proceeds from the sale of the Securities in the manner described under the caption “Use of Proceeds” in the Time of Sale Memorandum and the Final Memorandum.
(o)     Not to take any action prohibited by Regulation M under the Exchange Act in connection with the distribution of the Securities contemplated hereby.
(p)    During the period of 90 days following the date hereof, the Company will not and will not permit any of its subsidiaries to, without the prior written consent of the Representatives (which consent may be withheld at the sole discretion of the Representatives), directly or indirectly, (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of its Common Stock or any securities convertible into or exercisable or exchangeable for its Common Stock or (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of its Common Stock, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The foregoing sentence shall not apply to (a) the sale of the Securities under this Agreement or the issuance of any Underlying Securities upon conversion thereof, (b) the issuance by the Company of any shares of Common Stock upon the exercise of an option or warrant or the conversion of a security outstanding on the date hereof of which the Initial Purchasers have been advised in writing or pursuant to the Company’s employee benefit plans, (c) the issuance, granting or vesting of or removal or lapse of restrictions on restricted stock units, restricted stock awards or other equity awards under the Company’s employee benefit plans as described in the Time of Sale Memorandum, (d) the purchase and/or exchange of the Company’s 2.125% Cash Convertible Senior Notes due 2019 and the purchase, settlement or termination of any options or warrants relating thereto or (e) the issuance of shares of its Common Stock or any securities convertible into or exercisable or exchangeable for its Common Stock in connection with the acquisition (whether through merger, share purchase, share exchange or otherwise) of a company, division, business or assets or strategic transactions, provided that every recipient of any such securities described in this clause (e) (and every party that will be entitled to receive such securities upon closing of the applicable transaction or otherwise has rights with respect to such securities) agrees in writing to be subject to this paragraph for the remainder of the 90 day period, provided that in the case of clause (e), the number of shares of Common Stock issued or issuable pursuant to such clause shall not, in the aggregate, exceed 5% of the shares of Common Stock outstanding on the date hereof.
(q)    The Company will reserve and keep available at all times, free of preemptive rights, the Maximum Number of Underlying Securities.
(r)    Between the date hereof and the Closing Date, the Company will not do or authorize any act or thing that would result in an adjustment of the Conversion Rate (as such term is defined in the Indenture) of the Securities.
7.    Offering of Securities; Restrictions on Transfer.  (i) Each Initial Purchaser, severally and not jointly, represents and warrants that such Initial Purchaser is a qualified institutional buyer as defined in Rule 144A under the Securities Act (a “QIB”) and an “accredited investor” as defined in Rule 501(a)(1) under the Securities Act.  Each Initial Purchaser, severally and not jointly, agrees with the Company that (i) it will not solicit offers for, or sell, the Securities in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act and (ii) it will sell the Securities in the United States only to persons that it reasonably believes to be QIBs that, in the case of clause (i), in purchasing such Securities are deemed to have represented and agreed as provided in the Final Memorandum under the caption “Notice to Investors.”
(a)    Each Initial Purchaser, severally and not jointly, represents, warrants, and agrees with respect to offers and sales outside the United States that:
(i)    such Initial Purchaser understands that no action has been or will be taken in any jurisdiction by the Company that would permit a public offering of the Securities, or possession or distribution of the Preliminary Memorandum, the Time of Sale Memorandum, the Final Memorandum or any other offering or publicity material relating to the Securities, in any country or jurisdiction where action for that purpose is required;
(ii)    such Initial Purchaser will comply with all applicable laws and regulations in each jurisdiction in which it acquires, offers, sells or delivers Securities or has in its possession or distributes the Preliminary Memorandum, the Time of Sale Memorandum, the Final Memorandum or any such other material, in all cases at its own expense; and
(iii)    the Securities have not been registered under the Securities Act and may not be sold within the United States or to, or for the account or benefit of, U.S. persons except in accordance with Rule 144A under the Securities Act.
8.    Indemnity and Contribution.  (i) The Company agrees to indemnify and hold harmless each Initial Purchaser, its directors and officers and each person, if any, who controls any Initial Purchaser within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of each Initial Purchaser within the meaning of Rule 405 under the Securities Act from and against any and all losses, claims, damages, liabilities and expenses (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim, as such expenses are incurred) caused by any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Memorandum, the Time of Sale Memorandum or any amendment or supplement thereto, any Additional Written Offering Communication prepared by or on behalf of, used by, or referred to by the Company, any Permitted General Solicitation, or the Final Memorandum or any amendment or supplement thereto, or caused by any omission or alleged omission to state therein a material fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading, except insofar as such losses, claims, damages, liabilities or expenses are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information relating to any Initial Purchaser furnished to the Company by such Initial Purchaser through the Representatives expressly for use in the Preliminary Memorandum, the Pricing Term Sheet, any Additional Written Offering Communication, Permitted General Solicitation or the Final Memorandum (or any amendment or supplement thereto).  The indemnity agreement set forth in this Section ‎8(a) shall be in addition to any liabilities that the Company may otherwise have.
(a)    Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the Company, its directors, officers and each person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the foregoing indemnity from the Company to such Initial Purchaser, but only with reference to information relating to such Initial Purchaser furnished to the Company by such Initial Purchaser through the Representatives expressly for use in the Preliminary Memorandum, the Pricing Term Sheet, any Additional Written Offering Communication, Permitted General Solicitation or the Final Memorandum (or any amendment or supplement thereto).  The Company hereby acknowledges that the only information that the Initial Purchasers through the Representatives have furnished to the Company expressly for use in the Preliminary Memorandum, the Time of Sale Memorandum, any Additional Written Offering Communication set forth on Schedule II, Permitted General Solicitation or the Final Memorandum (or any amendment or supplement thereto) are the statements set forth in the fourth sentence of the ninth paragraph and the tenth paragraph under the caption “Plan of Distribution” in the Preliminary Memorandum and the Final Memorandum.  The indemnity agreement set forth in this Section ‎8(b) shall be in addition to any liabilities that each Initial Purchaser may otherwise have.
(b)    In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b) hereof, such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the “indemnifying party”) in writing; provided, however, that the failure to so notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party under this Section ‎8 except to the extent that it has been materially prejudiced, as determined by a final, non-appealable judgment made by a court of competent jurisdiction, by such failure (through the forfeiture of substantive rights and defenses) and shall not relieve the indemnifying party from any liability that the indemnifying party may have to an indemnified party other than under this Section ‎8.  The indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the indemnifying party may designate in such proceeding and shall pay the reasonably incurred fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel, (i) the indemnifying party has failed within a reasonable time to retain counsel reasonably satisfactory to the indemnified party, (i) the indemnified party shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to one or all of the other indemnified parties, or (i) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would, in the reasonable judgment of the indemnified party, be inappropriate due to actual or potential differing interests between them. It is understood that the indemnifying party shall not, in respect of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all such indemnified parties and that all such reasonably incurred fees and expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by the Representatives, in the case of parties indemnified pursuant to Section 8(a) hereof, and by the Company, in the case of parties indemnified pursuant to Section 8(b) hereof. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement.  No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding and does not include any statements as to or any findings of fault, culpability or failure to act by or on behalf of any indemnified party.
(c)    To the extent the indemnification provided for in Section 8(a) or 8(b) hereof is unavailable to an indemnified party or insufficient in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Initial Purchasers on the other hand from the offering of the Securities or (i) if the allocation provided by clause 8(d)(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause 8(d)(i) above but also the relative fault of the Company on the one hand and of the Initial Purchasers on the other hand in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Initial Purchasers on the other hand in connection with the offering of the Securities shall be deemed to be in the same respective proportions as the net proceeds from the offering of the Securities (before deducting expenses) received by the Company and the total discounts and commissions received by the Initial Purchasers bear to the aggregate offering price of the Securities. The relative fault of the Company on the one hand and of the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company, or by the Initial Purchasers, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Initial Purchasers’ respective obligations to contribute pursuant to this Section 8 are several in proportion to the respective principal amount of Securities they have purchased hereunder as set forth opposite their names in Schedule I hereto, and not joint.
(d)    The Company and the Initial Purchasers agree that it would not be just or equitable if contribution pursuant to Section 8(d) hereof were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in Section 8(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 8(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection ‎(e), no Initial Purchaser shall be obligated to make contributions hereunder that in the aggregate exceed the total discounts, commissions and other compensation received by such Initial Purchaser under this Agreement, less the aggregate amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The remedies provided for in this Section 8 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity.
(e)    The indemnity and contribution provisions contained in this Section 8 and the representations, warranties and other statements of the Company contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (i) any investigation made by or on behalf of any Initial Purchaser, any person controlling any Initial Purchaser or any affiliate of any Initial Purchaser or by or on behalf of the Company, its officers or directors or any person controlling the Company and (i) acceptance of and payment for any of the Securities.
9.    Termination. The Representatives may terminate this Agreement by notice given by the Representatives to the Company, if after the execution and delivery of this Agreement and prior to the Closing Date (i) trading generally shall have been suspended or materially limited on, or by, as the case may be, any of the New York Stock Exchange, the NYSE MKT or the NASDAQ Global Market, (ii) trading of any securities of the Company shall have been suspended on any exchange or in any over‐the‐counter market, (iii) a material disruption in securities settlement, payment or clearance services in the United States shall have occurred, (iv) any moratorium on commercial banking activities shall have been declared by Federal or New York State authorities, (v) there shall have occurred any outbreak or escalation of hostilities, or any change in financial markets or any calamity or crisis that, in your judgment, is material and adverse and which, singly or together with any other event specified in this clause (v), makes it, in the judgment of the Representatives, impracticable or inadvisable to proceed with the offer, sale or delivery of the Securities on the terms and in the manner contemplated in the Time of Sale Memorandum or the Final Memorandum or (vi) the Company or its subsidiaries shall have sustained a loss by strike, fire, flood, earthquake, accident or other calamity of such character as in the judgment of the Representatives may interfere materially with the conduct of the business and operations of the Company and its subsidiaries, taken as a whole, regardless of whether or not such loss shall have been insured.
10.    Effectiveness; Defaulting Initial Purchasers.  This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.
If, on the Closing Date or an Option Closing Date, any one or more of the Initial Purchasers shall fail or refuse to purchase Securities that it or they have agreed to purchase hereunder on such date, and the aggregate principal amount of Firm Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase is not more than one‐tenth of the aggregate principal amount of Firm Securities to be purchased on such date, the other Initial Purchasers shall be obligated severally in the proportions that the principal amount of Firm Securities set forth opposite their respective names in Schedule I bears to the aggregate principal amount of Firm Securities set forth opposite the names of all such non‐defaulting Initial Purchasers, or in such other proportions as may be specified by the Representatives with the consent of the non-defaulting Initial Purchasers, to purchase the Firm Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase on the Closing Date; provided that in no event shall the principal amount of Firm Securities that any Initial Purchaser has agreed to purchase pursuant to this Agreement be increased pursuant to this Section 10 by an amount in excess of one‐ninth of such principal amount of Firm Securities without the written consent of such Initial Purchaser. If, on the Closing Date, any Initial Purchaser or Initial Purchasers shall fail or refuse to purchase the Firm Securities which it or they have agreed to purchase hereunder on such date and the aggregate principal amount of Firm Securities with respect to which such default occurs is more than one‐tenth of the aggregate principal amount of Firm Securities to be purchased on the Closing Date, and arrangements satisfactory to the non-defaulting Initial Purchasers and the Company for the purchase of such Firm Securities are not made within 36 hours after such default, this Agreement shall terminate without liability on the part of any non‐defaulting Initial Purchaser or of the Company except that the provisions of Sections ‎6(g), ‎8 and ‎11 hereof shall at all times be effective and shall survive such termination. In any such case either the Representatives or the Company shall have the right to postpone the Closing Date, but in no event for longer than seven days, in order that the required changes, if any, in the Time of Sale Memorandum, the Final Memorandum or in any other documents or arrangements may be effected. If, on an Option Closing Date, any one or more of the Initial Purchasers shall fail or refuse to purchase Optional Securities and the aggregate principal amount of Optional Securities with respect to which such default occurs is more than one-tenth of the aggregate principal amount of Optional Securities to be purchased on such Option Closing Date, the non-defaulting Initial Purchasers shall have the option to (a) terminate their obligation hereunder to purchase the Optional Securities to be sold on such Option Closing Date or (b) purchase not less than the principal amount of Optional Securities that such non-defaulting Initial Purchasers would have been obligated to purchase in the absence of such default. As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person substituted for a defaulting Initial Purchaser under this Section ‎10.  Any action taken under this paragraph shall not relieve any defaulting Initial Purchaser from liability in respect of any default of such Initial Purchaser under this Agreement.
11.    Reimbursement of the Expenses of the Initial Purchasers.  If this Agreement shall be terminated by the Representatives pursuant to clause (ii) (other than as a result of an event of the type described in Section 9(i) or 9(vi) of Section 9 hereof, or because of any failure or refusal on the part of the Company to comply with the terms or to fulfill any of the conditions of this Agreement, or if the Company for any reason shall be unable to perform its obligations under this Agreement, the Company will reimburse the Initial Purchasers, severally, upon demand for all out-of-pocket expenses (including the fees and disbursements of their counsel) reasonably incurred by such Initial Purchasers in connection with this Agreement or the offering contemplated hereunder.  The Company shall not be obligated to reimburse such costs and expenses of a defaulting Initial Purchaser if this Agreement is terminated pursuant to Section ‎10 hereof by reason of a default of an Initial Purchaser.
12.    Entire Agreement.  (i) This Agreement, together with any contemporaneous written agreements and any prior written agreements (to the extent not superseded by this Agreement) that relate to the offering of the Securities, represents the entire agreement between the Company and the Initial Purchasers with respect to the preparation of the Preliminary Memorandum, the Time of Sale Memorandum, the Final Memorandum, the conduct of the offering, and the purchase and sale of the Securities.
(a)    This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company and the Initial Purchasers, or any of them, with respect to the subject matter hereof. 
(b)    The Company acknowledges that in connection with the offering of the Securities: (i) the Initial Purchasers have acted at arms length, are not agents of, and owe no fiduciary duties to, the Company or any other person, (i) the Initial Purchasers owe the Company only those duties and obligations set forth in this Agreement and prior written agreements (to the extent not superseded by this Agreement) if any, (i) the Initial Purchasers may have interests that differ from those of the Company and (iv) the Initial Purchasers have not provided any legal, accounting, regulatory or tax advice with respect to the offering contemplated hereby, and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.  The Company waives to the full extent permitted by applicable law any claims it may have against the Initial Purchasers arising from an alleged breach of fiduciary duty in connection with the offering of the Securities.
13.    Counterparts.  This Agreement may be signed in two or more counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by telecopier, facsimile or other electronic transmission (i.e., a “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart thereof.
14.    Successors.  This Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit of the indemnified parties referred to in Section ‎8 hereof, and in each case their respective successors, and no other person will have any right or obligation hereunder.  The term “successors” shall not include any Subsequent Purchaser or other purchaser of the Securities as such from any of the Initial Purchasers merely by reason of such purchase.
15.    Partial Unenforceability.  The invalidity or unenforceability of any section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other section, paragraph or provision hereof.  If any section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.
16.    Authority of the Representatives.  Any action by the Initial Purchasers hereunder may be taken by the Representatives on behalf of the Initial Purchasers, and any such action taken by the Representatives shall be binding upon the Initial Purchasers.
17.    Applicable Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) may be instituted in the federal courts of the United States of America located in the City and County of New York or the courts of the State of New York in each case located in the City and County of New York (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for suits, actions, or proceedings instituted in regard to the enforcement of a judgment of any Specified Court in a Related Proceeding (a “Related Judgment”), as to which such jurisdiction is non-exclusive) of the Specified Courts in any Related Proceeding.  Service of any process, summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any Related Proceeding brought in any Specified Court.  The parties irrevocably and unconditionally waive any objection to the laying of venue of any Specified Proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any Specified Court that any Related Proceeding brought in any Specified Court has been brought in an inconvenient forum.  
18.    Headings.  The headings of the sections of this Agreement have been inserted for convenience of reference only and shall not be deemed a part of this Agreement.
19.    Notices.  All communications hereunder shall be in writing and effective only upon receipt and if to the Initial Purchasers shall be delivered, mailed or sent to you at in care of UBS Securities LLC, at 1285 Avenue of the Americas, New York, New York 10019, Attention: Syndicate Department (Fax: 212-713-3371) and Jefferies LLC, at 520 Madison Avenue, New York, New York 10022, Attention: General Counsel, with a copy to the Legal Department; and if to the Company shall be delivered, mailed or sent to 2500 Bee Cave Road, Building One, Suite 200, Austin, Texas 78746, Attention: Chief Legal Officer.
[Signature Pages Follow]

If the foregoing is in accordance with your understanding of our agreement, kindly sign and return to the Company the enclosed copies hereof, whereupon this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms.
Very truly yours, 
 
EZCORP, INC.
By:             
    Name:     
    Title:    
Accepted as of the date hereof
UBS Securities LLC 
Jefferies LLC 
 
Acting on behalf of itself and as  
the Representatives of the several  
Initial Purchasers named in Schedule I hereto.
		
	By:
	UBS Securities LLC

		
	By:
	     
Name:     
Title:

		
	By:
	     
Name:     
Title:    

		
	By:
	Jefferies LLC

		
	By:
	     
Name:     
Title:

SCHEDULE I
	
		
	Initial Purchaser
	PRINCIPAL AMOUNT of Firm Securities to be Purchased

	 
	 

	UBS Securities LLC   
	$75,000,000

	Jefferies LLC   
	$37,500,000

	Nomura Securities International, Inc.   
	$6,250,000

	William Blair & Company, L.L.C.   
	$6,250,000

	 
	 

	Total:   
	 $125,000,000

SCHEDULE II
Permitted Communications
Time of Sale Memorandum
		
	1.
	Preliminary Memorandum, dated June 27, 2017.

		
	2.
	Pricing Term Sheet, dated June 29, 2017.    

Permitted Additional Written Offering Communications

Each electronic “road show” as defined in Rule 433(h) furnished to the Initial Purchasers prior to use that the Initial Purchasers and Company have agreed may be used in connection with the offering of the Securities.

Permitted General Solicitations
None.

SCHEDULE III
Subsidiaries
	
			
	Name of Subsidiary
	EZCORP Ownership
	Comments

	1.    Cash Converters International Limited
	32%
	 

EXHIBIT A
OPINION OF COUNSEL FOR THE COMPANY
June 29, 2017
UBS Securities LLC 
1285 Avenue of the Americas
New York, New York 10019
Ladies and Gentlemen:
This letter is provided to you pursuant to Section 5(d)(i) of the Purchase Agreement dated June 29, 2017 (the “Purchase Agreement”), by and among EZCORP, Inc., a Delaware corporation (the “Issuer”), and UBS Securities LLC, as representative (the “Representative”) of the initial purchasers set forth on Schedule I thereto (the “Initial Purchasers”), pursuant to which the Initial Purchasers have agreed to purchase $125,000,000 in aggregate principal amount of the Issuer’s 2.875% Convertible Senior Notes due 2024 (the “Securities”) on the terms specified in the Purchase Agreement.  The Securities will be issued pursuant to the Indenture, dated as of July 5, 2017 (the “Indenture,” and together with the Purchase Agreement and the Securities, the “Transaction Documents”), by and between the Issuer and Wells Fargo Bank, National Association, as trustee (the “Trustee”). Any capitalized term used in this letter and not defined herein shall have the meaning assigned to such term in the Purchase Agreement.
We have acted as counsel for the Issuer in connection with the offer and sale by the Issuer of the Securities. In connection with the opinions expressed and other statements made below, we have reviewed and relied on originals or copies, certified or otherwise identified to our satisfaction, of each of the following:
		
	(a)
	the Preliminary Offering Memorandum, dated June 27, 2017 (the “Preliminary Memorandum”), relating to the issuance and sale of the Securities;

		
	(b)
	the Pricing Supplement, dated [●], 2017 (the “Pricing Supplement” and, together with the Preliminary Memorandum, the “Disclosure Package”);

		
	(c)
	the Final Offering Memorandum, dated [●], 2017 (the “Final Memorandum”), relating to the issuance and sale of the Securities;

		
	(d)
	the Purchase Agreement;

		
	(e)
	the Indenture;

		
	(f)
	the global certificates representing the Securities;

		
	(g)
	the Amended and Restated Certificate of Incorporation of the Issuer (the “Certificate of Incorporation”), as filed with the Secretary of State of Delaware on October 2, 2013 and amended on March 25, 2014, and certified as of a recent date;

		
	(h)
	the Amended and Restated By-laws of the Issuer, effective July 20, 2014 (the “By-laws”), certified by the Secretary of the Issuer to be a true copy thereof;

		
	(i)
	the resolutions of the Board of Directors of the Issuer adopted and approved at a meeting on June 22, 2017;

		
	(j)
	the resolutions of the Pricing Committee of the Board of Directors of the Issuer adopted and approved at a meeting on [●], 2017;

		
	(k)
	certificates of public officials and representatives of the Issuer; and

		
	(l)
	statutes and such other certificates and documents as we have deemed relevant for the purposes of such opinions.

As to any facts material to our opinions expressed herein, we have made no independent investigation of such facts other than as expressly stated herein and have relied, to the extent that we deem such reliance proper, upon certificates of public officials and officers or other representatives of the Issuer and the Trustee, on the representations and warranties set forth in the Purchase Agreement and such other records and instruments as we have considered necessary and proper.
In rendering the opinions expressed below, we have assumed (i) the legal capacity of all natural persons, (ii) the genuineness of all signatures and facsimile signatures thereof, (iii) the due authorization, execution and delivery by the parties thereto of all documents and instruments examined by us (other than, as to the Issuer, the Transaction Documents, as to which we opine below), (iv) the authenticity of all documents submitted to us as originals and (v) the conformity to an authentic original document of all documents submitted to us as copies.  We have also assumed that the laws of any jurisdiction other than the jurisdictions that are the subject of this letter do not affect the terms of the Transaction Documents.
Based on the foregoing and subject to the assumptions, limitations and qualifications set forth below, we are of the opinion that:
(i)    The Issuer is validly existing as a corporation in good standing under the laws of the State of Delaware, with corporate power and authority to (a) own or lease, as the case may be, and to operate its properties and conduct its business as described in the Disclosure Package and the Final Memorandum and (b) perform its obligations under the Transaction Documents.  The Issuer is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction set forth opposite its name on Annex A attached hereto.
(ii)    The Purchase Agreement has been duly authorized, executed and delivered by the Issuer.
(iii)    The Indenture has been duly authorized, executed and delivered by the Issuer and constitutes the valid and binding obligation of the Issuer, enforceable against the Issuer in accordance with its terms, except as such enforceability may be limited by bankruptcy, reorganization, insolvency, fraudulent transfer, moratorium or other laws now or hereafter in effect relating to or affecting creditors’ rights generally, general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing (the “Enforceability Exceptions”).
(iv)    The Securities have been duly authorized and executed by the Issuer and, when authenticated in accordance with the provisions of the Indenture and delivered to and paid for by the Initial Purchasers under the Purchase Agreement, will constitute valid and binding obligations of the Issuer, enforceable against the Issuer in accordance with their terms, except as such enforceability may be limited by the Enforceability Exceptions, and will be entitled to the benefits of the Indenture.
(v)    The Issuer has an authorized capitalization as set forth in the Disclosure Package. The shares of Class A Non-Voting Common Stock of the Issuer (“Common Stock”) that may be issued by the Issuer upon conversion of the Securities (the “Maximum Number of Conversion Shares”) have been duly authorized by all necessary corporate action of the Issuer and reserved for issuance and, assuming issuance and delivery upon the date hereof in accordance with the terms of the Indenture, such shares of Common Stock, would be validly issued, fully paid and non-assessable and free of preemptive rights arising from the Certificate of Incorporation and By-laws or under the General Corporations Law of the State of Delaware (the “DGCL”).
(vi)    Except as described in the Disclosure Package and the Final Memorandum, the execution, delivery and performance by the Issuer of each of the Transaction Documents, the issuance and sale of the Securities and the consummation of the transactions contemplated by the Transaction Documents by the Issuer do not and will not (a) constitute a violation of the provisions of the Certificate of Incorporation or By-laws of the Issuer, (b) result in any violation of Applicable Laws (as defined below) or (c) violate or conflict with any order, judgment, decree or injunction known to us of any U.S. federal or Delaware court or governmental agency or body having jurisdiction over the Issuer or any of its properties in a proceeding in which the Issuer or its property is a party, except in the case of clause (b) for such violations as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Issuer and its subsidiaries, taken as a whole.
“Applicable Laws” means the DGCL, the federal laws of the United States of America and the laws of the State of New York and the rules and regulations adopted thereunder that in our experience are normally applicable to transactions of the type contemplated by the Transaction Documents.  However, the term “Applicable Laws” does not include, and we express no opinion with regard to (A) any state laws, rules or regulations relating to state securities or Blue Sky laws, federal or state antifraud laws or federal securities laws (except as specifically set forth in paragraphs (x) and (xi) below), (B) any laws, rules or regulations of any county, municipality or similar political subdivision or any agency or instrumentality thereof and (C) unless expressly covered in our opinions above, any laws, rules or regulations that are applicable to the Issuer, the Transaction Documents or the transactions contemplated thereby solely because such laws, rules or regulations are part of a regulatory regime applicable to any party to any of the Transaction Documents or any of its affiliates because of the specific assets or business of such party or such affiliate.
(vii)    No consent, approval, authorization or order of, or qualification with, any court or governmental agency or body having jurisdiction over the Issuer is required to be obtained or made by the Issuer under Applicable Laws in connection with the execution of the Transaction Documents to which it is a party, the issuance and sale of the Securities and the consummation of the transactions contemplated by the Transaction Documents, except where the failure to obtain or make such consent, approval, authorization, order or qualification would not reasonably be expected to have a material adverse effect on the Issuer and its subsidiaries, taken as a whole, except that we express no opinion in this paragraph as to compliance with the registration provisions of the Securities Act of 1933, as amended (the “Act”) in relation to the Securities, or the Trust Indenture Act of 1939, as amended (the “TIA”) with respect to the Indenture.
(viii)    The statements in the Disclosure Package and the Final Memorandum under the heading “Description of the Notes,” insofar as they purport to summarize certain provisions of the Indenture and the Securities described therein, are accurate in all material respects.
(ix)    The statements in the Disclosure Package and the Final Memorandum under the heading “Certain United States Federal Income Tax Considerations,” insofar as such statements purport to constitute summaries of United States federal income tax law and regulations or legal conclusions with respect thereto, are accurate in all material respects.
(x)    The Issuer is not and, after giving effect to the offering and sale of the Securities and the application of the proceeds thereof as described in the Disclosure Package and the Final Memorandum, will not be required to register as an “investment company” as defined in the Investment Company Act.
Assuming (a) the accuracy of the representations and warranties of the Issuer and the Initial Purchasers set forth in the Purchase Agreement, (b) the due performance by the Issuer and the Initial Purchasers of the covenants and agreements set forth in the Purchase Agreement and (c) the Initial Purchasers’ compliance with the offering and transfer restrictions described in the Disclosure Package and the Final Memorandum, no registration of the Securities under the Act, and no qualification of the Indenture under the TIA, is required in connection with the purchase of the Securities by the Initial Purchasers or the initial resale of the Securities by the Initial Purchasers in the manner contemplated by the Purchase Agreement, the Disclosure Package and the Final Memorandum.
The opinions set forth above are subject in all respects to the following:
(A)    With respect to the opinions expressed in paragraph (i) as to the existence and good standing and due qualification or registration as a foreign corporation of the Issuer, we have relied solely on a certificate of good standing provided by the Secretary of State of the State of Delaware and on a certificate of foreign qualification or registration provided by the Secretary of State of the states listed on Annex A hereto (except that with respect to the existence, due qualification, registration and good standing of the Issuer in Texas, we have based our opinion solely on (1) a Certificate of Fact, dated as of June 26, 2017, issued by the Texas Secretary of State as to the existence, due qualification and registration of the Issuer in Texas and (2) a statement of Franchise Account Status, dated as of June 26, 2017, obtained through the website of the Office of the Comptroller of Public Accounts of Texas, which statement indicates that, as of the date thereof, the Issuer’s right to transact business in Texas is “active”).
(B)    In rendering the opinions expressed in paragraphs (iii) and (iv), we express no opinion as to the validity, legally binding effect or enforceability of the following provisions to the extent that they are contained in the Transaction Documents: (1) provisions purporting to release, exculpate, hold harmless, or exempt any person or entity from, or to require indemnification or contribution of or by any person or entity for, liability for any matter to the extent that the same are inconsistent with applicable law (including case law) or with public policy; (2) provisions purporting to waive, subordinate or not give effect to rights to notice, demands, legal defenses or other rights or benefits that cannot be waived, subordinated or rendered ineffective under applicable law; (3) provisions purporting to provide remedies inconsistent with applicable law; (4) provisions stating that a guarantee will not be affected by a modification of the obligation guaranteed in cases in which that modification materially changes the nature or amount of such obligation; (5) provisions that limit the obligation of a guarantor (or provide for any rights of contribution as against another guarantor or any other party) based upon the potential unenforceability, invalidity or voidability of a guarantee or joint obligation under any applicable law, including, without limitation, any state or federal fraudulent transfer or fraudulent conveyance laws; (6) provisions providing that decisions by a party are conclusive or may be made in its sole discretion; and (7) default interest, liquidated damages and other possible penalty provisions.  We note that enforceability of the Transaction Documents referenced in the opinions expressed in paragraphs (iii) and (iv) may be affected by the parties’ course of dealing, or by waivers, modifications or amendments (whether made in writing, orally or by course of conduct), and we express no opinion on the effect of the foregoing on the enforceability of such Transaction Documents, including provisions in the Indenture that provide for the payment of Additional Interest (as defined therein) or increases in the Conversion Rate upon a Make-Whole Fundamental Change (each as defined therein).
(C)    With respect to the opinion expressed in paragraph (v) above, the Maximum Number of Conversion Shares shall mean [●] shares of Common Stock of the Issuer, which represents the maximum number of shares of Common Stock that could be issued upon the conversion of the Securities pursuant to the terms of the Indenture as of the date of this letter.
(D)    With respect to the opinion set forth in paragraph (vi)(a) above, we have assumed that following the consummation of the closing of the offering of the Securities, the Company has used the net proceeds from the offering as set forth in the Disclosure Package and Final Memorandum under the heading “Use of Proceeds.”
(E)    In rendering the opinions expressed in paragraph (xi), we express no opinion as to any subsequent reoffer or resale of any of the Securities.
(F)    The opinions expressed herein are limited to matters arising under the Applicable Laws.
In addition, we have participated in conferences with officers and other representatives of the Issuer and representatives of the independent auditors of the Issuer, at which the contents of the Disclosure Package and the Final Memorandum and related matters were discussed.  Although we have not independently verified, are not passing upon, and are not assuming any responsibility for or expressing any opinion regarding the accuracy, completeness or fairness of the statements contained in, the Disclosure Package and the Final Memorandum (except to the extent specified in paragraphs (viii) and (ix) above), based on the foregoing in the course of acting as counsel to the Issuer in this transaction (and relying as to materiality as to factual matters on officers, employees and other representatives of the Issuer), no facts have come to our attention that have caused us to believe that (1) the Disclosure Package, as of the Time of Sale, contained an untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading or (2) the Final Memorandum, as of its date and as of the date hereof, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; except that in each case we express no view, belief or comment with respect to the form, accuracy, completeness or fairness of (i) the financial statements, including the notes and schedules thereto and the independent auditors’ reports thereon, contained in or incorporated by reference in or omitted from the Disclosure Package and the Final Memorandum, or (ii) the other financial data contained in, incorporated by reference in or omitted from the Disclosure Package and the Final Memorandum.
The Trustee may rely upon the opinions expressed in paragraphs (i), (iii), (iv) and (xi), and, solely with respect to the Transaction Documents to which the Trustee is a party, the opinions expressed in paragraphs (vi) and (vii) above, in each case as fully as if this letter were addressed to it.  Otherwise, this letter is furnished to you solely for your benefit pursuant to Section 5(d)(i) of the Purchase Agreement.  This letter and the opinions expressed and other statements made herein may not be used or relied upon by you for any other purpose and may not be used or relied upon for any purpose by any other person or entity without our prior written consent. Except for the use permitted herein, this letter is not to be quoted or reproduced in whole or in part or otherwise referred to in any manner nor is it to be filed with any governmental agency or delivered to any other person without our prior written consent.
Very truly yours,

ANNEX A
	
			
	

Entity
	Jurisdiction of Organization
	

Foreign Qualification

	EZCORP, Inc.
	Delaware
	Texas

EXHIBIT B
OPINION OF CHIEF LEGAL OFFICER OF THE COMPANY
June [   ], 2017
UBS Securities LLC
1285 Avenue of the Americas
New York, New York 10019
Jefferies LLC 
520 Madison Avenue 
New York, New York 10022 
Ladies and Gentlemen:
I am the Senior Vice President and General Counsel of EZCORP, Inc., a Delaware corporation (the “Issuer”).  This opinion letter is provided to you pursuant to Section  5(d)(ii), of the Purchase Agreement dated [●], 2017 (the “Purchase Agreement”), by and among the Issuer and UBS Securities LLC and Jefferies LLC as representatives (the “Representative”) of the initial purchasers set forth on Schedule I thereto (the “Initial Purchasers”), pursuant to which the Initial Purchasers have agreed to purchase $125,000,000 in aggregate principal amount of the Issuer’s [●]% Convertible Senior Notes due 2024 (the “Securities”) on the terms specified in the Purchase Agreement.  The Securities will be issued pursuant to the Indenture, dated as of [●], 2017 (the “Indenture,” and together with the Purchase Agreement and the Securities, the “Transaction Documents”), by and among the Issuer and Wells Fargo Bank, National Association, as trustee (the “Trustee”).  Any capitalized term used in this opinion letter and not defined herein shall have the meaning assigned to such term in the Purchase Agreement.
In reaching the opinions set forth herein, attorneys under my supervision or I have reviewed originals or copies of the following documents:
		
	(a)
	The Preliminary Offering Memorandum, dated June [●], 2017 (the “Preliminary Memorandum”), relating to the issuance and sale of the Securities; 

		
	(b)
	The Pricing Supplement, dated [●], 2017 (the “Pricing Supplement” and, together with the Preliminary Memorandum, the “Disclosure Package”);

		
	(c)
	The Final Offering Memorandum, dated [●], 2017 (the “Final Memorandum”), relating to the issuance and sale of the Securities;

		
	(d)
	The Purchase Agreement;

		
	(e)
	The Indenture;

		
	(f)
	The global certificates representing the Securities;

		
	(g)
	The Amended and Restated Certificate of Incorporation of the Issuer (the “Certificate of Incorporation”), as filed with the Secretary of State of Delaware on October 2, 2013 and amended on March 25, 2014, and certified as of a recent date;

		
	(h)
	The Amended and Restated By-laws of the Issuer, effective July 20, 2014 (the “By-laws”), certified by the Secretary of the Issuer to be a true copy thereof; 

		
	(i)
	The resolutions of the Board of Directors of the Issuer adopted by unanimous written consent on June [●], 2017;

		
	(j)
	The resolutions of the Pricing Committee of the Board of Directors of the Issuer adopted and approved at a meeting on [●], 2017;

		
	(k)
	Certificates of public officials and representatives of the Issuer; and

		
	(l)
	Statutes and such other certificates and documents as I have deemed relevant for the purposes of such opinions.

Based on and subject to the foregoing and subject further to the assumptions, exceptions and qualifications hereinafter stated, I express the following opinions:
		
	1.
	Each subsidiary of the Issuer is validly existing and in good standing as a corporation, limited liability company or limited partnership, as applicable, under the laws of the jurisdiction of its incorporation or formation, as applicable, with power and authority (corporate, limited liability company or limited partnership, as the case may be) to (a) own or lease, as the case may be, and operate its properties and conduct its businesses as described in the Disclosure Package and the Final Memorandum and (b) perform its obligations under the Transaction Documents, as applicable.  Each subsidiary of the Issuer has been duly qualified to transact business in, and is in good standing as a corporation, limited liability company or limited partnership, as the case may be, in each foreign jurisdiction set forth in Annex A attached hereto.

		
	2.
	The execution, delivery and performance by the Issuer of the Transaction Documents, the issuance and sale of the Securities and the consummation of the transactions contemplated by the Transaction Documents does not and will not (a) with respect to the subsidiaries of the Issuer, constitute a violation of the provisions of the Organizational Documents of the subsidiaries of the Issuer or (b) to the best of my knowledge, violate or conflict with any order, judgment, decree or injunction of any court or governmental agency or body having jurisdiction over the Issuer and its subsidiaries or any of their properties in a proceeding in which any of them or their respective property is a party, except in the case of clause (b) for such conflicts or violations as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Issuer and its subsidiaries, taken as a whole.

		
	3.
	Except as described in the Disclosure Package and the Final Memorandum, the execution, delivery and performance by the Issuer of each of the Transaction Documents, the issuance and sale of the Securities and the consummation of the transactions contemplated by the Transaction Documents by the Issuer does not and will not (a) constitute a violation of the provisions of the Certificate of Incorporation or By-Laws of the Issuer, (b) result in any violation of Applicable Laws (as defined below) or (c) violate or conflict with any order, judgment, decree or injunction known to me of any U.S. federal or Delaware court or governmental agency or body having jurisdiction over the Issuer or any of its properties in a proceeding in which the Issuer or its property is a party, except in the case of clause (b), for such violations as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Issuer and its subsidiaries, taken as a whole.

		
	4.
	To my knowledge, there is no pending or threatened action, suit or proceeding against the Issuer that is reasonably expected to have a Material Adverse Effect on the Issuer to perform its obligations under the Transaction Documents.

The opinions expressed above are subject to the following assumptions, exceptions and qualifications:
		
	(a)
	With respect to the documents reviewed, I have assumed that (1) each document has been duly executed and delivered by all parties to such document (other than signatures of representatives of the subsidiaries of the Issuer) and that each such document is valid, binding and enforceable against the parties thereto, (2) all information contained in all documents is true and correct, (3) all signatures (other than signatures of representatives of the subsidiaries of the Issuer) on all documents are genuine, (4) all documents submitted to me as originals are true and complete, (5) all documents submitted to me as copies are true and complete copies of the originals thereof, and (6) each natural person signing any document (other than representatives of the subsidiaries of the Issuer) had the legal capacity to do so.

		
	(b)
	With respect to the opinion set forth in paragraph 3 above, I have assumed that following the consummation of the closing of the offering of the Securities, the Issuer has utilized the net proceeds from the offering as set forth in the Disclosure Package and Final Memorandum under the heading “Use of Proceeds.”

		
	(c)
	The opinions expressed above are limited to Applicable Laws, and I do not express any opinion herein covering any other laws.  You should be aware that I am admitted to the practice of law only in the State of Texas.

“Applicable Laws” means the federal laws of the United States of America and the rules and regulations adopted thereunder that in my experience are normally applicable to transactions of the type contemplated by the Transaction Documents, and for purposes of my opinions in paragraph 1, include the Colorado Business Corporation Act, the General Corporation Law of the State of Delaware, the Delaware Limited Liability Company Act, the Nevada Revised Statutes Chapter 78, and the Texas Business Organizations Code.  However, the term “Applicable Laws” does not include, and I express not opinion with regard to, (A) any state laws, rules or regulations relating to state securities or Blue Sky laws, federal or state antifraud laws or federal securities laws, (B) any laws, rules or regulations of any county, municipality or similar political subdivision or any agency or instrumentality thereof, (C) unless expressly covered in the opinions above, any laws, rules or regulations that are applicable to the Issuer and its subsidiaries, the Transaction Documents or the transactions contemplated therein solely because such laws, rules or regulations are part of a regulatory regime applicable to any party to any of the Transaction Documents or any of its affiliates because of the specific assets or business of such party or such affiliate and (D) the laws of the States of Arizona, Colorado, Delaware, Florida, Minnesota, Nevada, Texas or Utah, except to the extent based on my review of the statutes referred to above, without consideration of any judicial or administrative interpretations thereof.
In addition, I, or attorneys who report to me, have participated in conferences with officers and other representatives of the Issuer and its subsidiaries and their counsel and representatives of the independent auditors of the Issuer and its subsidiaries, at which the contents of the Disclosure Package and the Final Memorandum and related matters were discussed.  Although I have not independently verified, am not passing upon, and am not assuming any responsibility for or expressing any opinion regarding the accuracy, completeness or fairness of the statements contained in, the Disclosure Package and the Final Memorandum, based on the foregoing, no facts have come to my attention that have caused me to believe that (1) the Disclosure Package, as of the Time of Sale, contained an untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading or (2) the Final Memorandum, as of its date and as of the date hereof, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; except that in each case I express no view, belief or comment with respect to the form, accuracy, completeness or fairness of (i) the financial statements, including the notes and schedules thereto and the independent auditors’ reports thereon, contained in the Disclosure Package and the Final Memorandum, or (ii) the other financial data contained in or omitted from the Disclosure Package and the Final Memorandum.
The Trustee may rely upon the opinions expressed in paragraph 1 and, solely with respect to the Transaction Documents to which the Trustee is a party, the opinions expressed in paragraph 2 above, in each case as fully as if this opinion letter were addressed to it.  Otherwise, this opinion letter is furnished to you solely for your benefit pursuant to Section 5(d)(ii) of the Purchase Agreement.  This letter and the opinions expressed herein may not be used or relied upon by you for any other purpose and may not be used or relied upon for any purpose by any other person or entity without my prior written consent.  Except for the use permitted herein, this opinion letter is not to be quoted or reproduced in whole or in part or otherwise referred to in any manner nor is it to be filed with any governmental agency or delivered to any other person without my prior written consent.
This opinion speaks as of the time of completion of the sale of the Securities on the date hereof, and I disclaim any duty to advise you regarding any changes subsequent to the date hereof in, or to otherwise communicate with you with respect to, the matters addressed herein.
Sincerely,
DRAFT    
Thomas H. Welch, Jr.
Chief Legal Officer

ANNEX A
SUBSIDIARIES OF THE ISSUER
Entity    Jurisdiction of Organization
Artiste Holding Limited    United Kingdom
CCV Americas, LLC    Delaware
CCV Pennsylvania, Inc.    Delaware
CCV Latin America Cooperatief, U.A.    Netherlands
CCV Virginia, Inc.    Delaware
Change Capital International Holdings, B.V.    Netherlands
Change Capital Mexico Holdings, S.A. de C.V.    Mexico
Change Capital, Inc.    Delaware
De Morgan Services Limited    United Kingdom
EZ Talent SRL de C.V.    Mexico
EZ Transfers S.A. de C.V.    Mexico
EZCORP (2015) Asia-Pacific PTE. LTD.    Singapore
EZCORP Latin America Cooperatief, U.A.    Netherlands
EZCORP Global Holdings, C.V.    Netherlands
EZCORP Global, B.V.    Netherlands
EZCORP International Holdings, LLC    Delaware
EZCORP International, Inc.    Delaware
EZCORP USA, Inc.    Delaware
EZMONEY Alabama, Inc.    Delaware
EZMONEY Canada Holdings, Inc.    British Columbia
EZMONEY Canada, Inc.    Delaware
EZMONEY Colorado, Inc.    Delaware
EZMONEY Hawaii, Inc.    Delaware
EZMONEY Holdings, Inc.    Delaware
EZMONEY Idaho, Inc.    Delaware
EZMONEY Kansas, Inc.    Delaware
EZMONEY Management, Inc.    Delaware
EZMONEY Missouri, Inc.    Delaware
EZMONEY South Dakota, Inc.    Delaware
EZMONEY Tario, Inc.    British Columbia
EZMONEY Tennessee, Inc.    Delaware
EZMONEY Utah, Inc.    Delaware
EZMONEY Wisconsin, Inc.    Delaware
EZParkway Mexico Limited    Ireland
EZParkway Services Limited    Ireland
EZParkway Trading Limited    Ireland
EZPAWN Alabama, Inc.    Delaware
EZPAWN Arizona, Inc.    Delaware
EZPAWN Arkansas, Inc.    Delaware
EZPAWN Colorado, Inc.    Delaware
EZPAWN Florida, Inc.    Delaware
EZPAWN Georgia, Inc.    Delaware
EZPAWN Holdings, Inc.    Delaware
EZPAWN Illinois, Inc.    Delaware
EZPAWN Indiana, Inc.    Delaware
EZPAWN Iowa, Inc.    Delaware
EZPAWN Management Mexico, SRL de CV (Ltd., Inc.)    Mexico
EZPAWN Mexico Holdings, LLC    Delaware
EZPAWN Mexico Ltd., LLC    Delaware
EZPAWN Minnesota, Inc.    Delaware
EZPAWN Nevada, Inc.    Delaware
EZPAWN Oregon, Inc..    Delaware
EZPAWN Oklahoma, Inc.    Delaware
EZPAWN Services Mexico, SRL de CV (Holdings)    Mexico
EZPAWN Tennessee, Inc.    Delaware
EZPAWN Utah, Inc.    Delaware
Mister Money Holdings, Inc.    Colorado
Parkway Insurance, Inc.    Texas
Payday Loan Management, Inc.    Delaware
Premier Pawn and Jewelry, LLC    Delaware
Renueva Comercial SAPI de CV    Mexico
Rich Data Corporation (S) PTE. LTD.    Singapore
Texas EZMONEY, L.P.    Texas
Texas EZPAWN Management, Inc.    Delaware
Texas EZPAWN, L.P.    Texas
Texas PRA Management, L.P.    Texas
Twyford Developments Limited    United Kingdom
USA Pawn & Jewelry Co. 19, LLC    Nevada
USA Pawn & Jewelry Co. XI, LLC    Nevada

EXHIBIT C
OPINION OF CADWALADER, WICKERSHAM & TAFT LLP

June [●], 2017

UBS Securities LLC 
Jefferies LLC
c/o     UBS Securities LLC 
    1285 Avenue of the Americas 
    New York, New York 10019
Jefferies LLC 
    520 Madison Avenue 
    New York, New York 10022
Ladies and Gentlemen:
We have acted as special counsel for the EZCORP, Inc., a Delaware corporation (the “Issuer”) in connection with its partial unwind of those certain derivatives transactions entered into in connection with the issuance of the Issuer’s 2.125% Cash Convertible Senior Notes due 2019. 
This opinion letter is provided to you pursuant to Section 5(d)(iii) of the Purchase Agreement dated June [●], 2017 (the “Purchase Agreement”), by and among the Issuer and UBS Securities LLC and Jefferies LLC as representatives of the initial purchasers set forth on Schedule I thereto (the “Initial Purchasers”), pursuant to which the Initial Purchasers have agreed to purchase $125,000,000 in aggregate principal amount of the Issuer’s [●]% Convertible Senior Notes due 2024 (the “Securities”) issued pursuant to the indenture dated as of July [●], 2017 (the “Indenture”, and together with the Purchase Agreement and the Securities, the “Transaction Documents”), between the Issuer and Wells Fargo Bank, National Association, as trustee, on the terms specified in the Purchase Agreement. Any capitalized term used in this opinion letter and not defined herein shall have the meaning assigned to such term in the Purchase Agreement or as otherwise indicated.
In connection with the opinions expressed below, we have reviewed and relied on originals or copies, certified or otherwise identified to our satisfaction, of each of the following:
		
	(a)
	the Preliminary Offering Memorandum, dated June [●], 2017 (the “Preliminary Memorandum”), relating to the issuance and sale of the Securities; 

		
	(b)
	the Pricing Supplement, dated June [●], 2017 (the “Pricing Supplement” and, together with the Preliminary Memorandum, the “Disclosure Package”);

		
	(c)
	the Final Offering Memorandum, dated June [●], 2017 (the “Final Memorandum”), relating to the issuance and sale of the Securities;

		
	(d)
	three call option confirmations, each dated June 17, 2014 and each between the Issuer and Jefferies International Limited (“Jefferies”), Morgan Stanley & Co. International plc (“MS”) or UBS AG, London Branch (“UBS”), respectively, the related letter agreement between the Issuer and Jefferies dated June 17, 2014 and the Guaranty from Jefferies Group LLC dated June 17, 2014 (the “Base Call Option Confirmations”);

		
	(e)
	three additional call option confirmations, each dated June 27, 2014 and each between the Issuer and Jefferies, MS or UBS, respectively, the related letter agreement between the Issuer and Jefferies dated June 27, 2014 and the Guaranty from Jefferies Group LLC dated June 27, 2014 (the “Additional Call Option Confirmations” and, together with the Base Call Option Confirmations, the “Call Option Confirmations”);

		
	(f)
	three warrant confirmations, each dated June 17, 2014 and each between the Issuer and Jefferies, MS or UBS, respectively, in each case as amended by a related Amendment Agreement dated June 27, 2014 (the “Base Warrant Confirmations”);

		
	(g)
	three additional warrant confirmations, each dated June 27, 2014 and each between the Issuer and Jefferies, MS or UBS, respectively (the “Additional Warrant Confirmations”, together with the Base Warrant Confirmations, the “Warrant Confirmations” and together with the Call Option Confirmations, the “Applicable Contracts”);

		
	(h)
	three termination agreements relating to the Applicable Contracts, each dated July [●], 2017 and each between the Issuer and Jefferies, MS or UBS, respectively (the “Unwind Agreements”); and

		
	(i)
	statutes and such other certificates and documents as we have deemed relevant for the purposes of such opinions.

As to any facts material to our opinion, we have made no independent investigation of such facts other than as expressly stated herein and have relied, to the extent that we deem such reliance proper, upon certificates of public officials and officers or other representatives of the Issuer and such other records and instruments as we have considered necessary and proper.

In rendering the opinions set forth below, we have examined and relied upon the originals, copies or specimens, certified or otherwise identified to our satisfaction, of all such company or corporate records, agreements and instruments and other documents of the Issuer, and its subsidiaries, certificates of public officials and other certificates and opinions, and have made such other investigations, as we have deemed necessary in connection with the opinions set forth herein.  In such examination, we have assumed the genuineness of all signatures, the authenticity of all documents, agreements and instruments submitted to us as originals, the conformity to original documents, agreements and instruments of all documents, agreements and instruments submitted to us as copies or specimens, the authenticity of the originals of such documents, agreements and instruments submitted to us as copies or specimens, the accuracy of the matters set forth in the documents, agreements and instruments we reviewed, and that such documents, agreements and instruments evidence the entire understanding between the parties thereto and have not been amended, modified or supplemented in any manner material to the opinions expressed herein.  As to matters of fact relevant to the opinions expressed herein, we have relied upon, and assumed the accuracy of, the representations and warranties contained in the Applicable Contracts and Unwind Agreements and statements made in the Disclosure Package and Final Memorandum and we have relied upon certificates and oral or written statements and other information obtained from officers of the Issuer and its subsidiaries, the other parties to the transaction referenced herein, and public officials.  Except as expressly set forth herein, we have not undertaken any independent investigation (including, without limitation, conducting any review, search or investigation of any electronic databases, public files, records or dockets) to determine the existence or absence of the facts that are material to our opinions, and no inference as to our knowledge concerning such facts should be drawn from our reliance on the representations of the Issuer and others in connection with the preparation and delivery of this letter.
We have also assumed (x) the legal capacity of all natural persons and (y) that all documents, agreements and instruments have been duly authorized, executed and delivered by all parties thereto, that all such parties are validly existing and in good standing under the laws of their respective jurisdictions of organization, that all such parties had the power and legal right to execute and deliver all such documents, agreements and instruments, and that such documents, agreements and instruments constitute the legal, valid and binding obligations of such parties, enforceable against such parties in accordance with their respective terms.  We have also assumed that the laws of any jurisdiction other than the jurisdictions that are the subject of this opinion do not affect the terms of the Applicable Contracts, Unwind Agreements or the Issuer’s performance thereof. 
Based on the foregoing and subject to the assumptions, limitations and qualifications set forth below, we are of the opinion that, except as described in the Disclosure Package and the Final Memorandum, and as set forth in the Unwind Agreements, the execution, delivery and performance by the Issuer of each of the Transaction Documents, the issuance and sale of the Securities and the consummation of the transactions contemplated by the Transaction Documents by the Issuer do not and will not constitute a breach or violation of any of the terms or provisions of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute such a default) under, or result in the creation or imposition of any lien, charge or encumbrance upon any properties, rights or assets of the Issuer pursuant to the Applicable Contracts.
The opinions set forth above are subject in all respects to the following: 
(A)    We have assumed that following the consummation of the closing of the offering of the Securities, the Issuer will utilize the net proceeds from the offering as set forth in the Disclosure Package and Final Memorandum under the heading “Use of Proceeds.”
(B)    The opinions expressed herein are limited to matters arising under the federal laws of the United States of America and the laws of the State of New York and the rules and regulations adopted thereunder that in our experience are normally applicable to transactions of the type contemplated hereby, except (i) any state laws, rules or regulations relating to state securities or Blue Sky laws, federal or state antifraud laws or federal securities laws, (ii) any laws, rules or regulations of any county, municipality or similar political subdivision or any agency or instrumentality thereof and (iii) any laws, rules or regulations that are applicable to the Issuer, the Transaction Documents, Applicable Contracts or Unwind Agreements, or the transactions contemplated thereby solely because such laws, rules or regulations are part of a regulatory regime applicable to the Issuer or any of its affiliates because of the specific assets or business of the Issuer or such affiliate, or any other party thereto, and we express no opinion with respect to (i) through (iii) herein.
This opinion letter is furnished to you solely for your benefit pursuant to Section 5(d)(iii) of the Purchase Agreement.  This letter and the opinions expressed herein may not be used or relied upon by you for any other purpose and may not be used or relied upon for any purpose by any other person or entity without our prior written consent. Except for the use permitted herein, this opinion letter is not to be quoted or reproduced in whole or in part or otherwise referred to in any manner nor is it to be filed with any governmental agency or delivered to any other person without our prior written consent.

Very truly yours,

EXHIBIT D
FORM OF LOCK-UP LETTER
June __, 2017
UBS Securities LLC 
Jefferies LLC 
As Representatives of the Initial Purchasers
		
	c/o
	UBS Securities LLC 
1285 Avenue of the Americas 
New York, New York 10019

Jefferies LLC 
520 Madison Avenue 
New York, New York 1022
Ladies and Gentlemen:
The undersigned understands that UBS Securities LLC and Jefferies LLC (the “Representatives”) propose to enter into a Purchase Agreement (the “Purchase Agreement”) with EZCORP, Inc., a Delaware corporation (the “Company”), providing for the offering (the “Offering”) by the several Initial Purchasers, including the Representatives (the “Initial Purchasers”), of the Company’s Convertible Senior Notes due 2024 (the “Securities”).  The Securities will be convertible into cash, shares of Class A Non-Voting Common Stock, par value $0.01 per share, of the Company (the “Common Stock”) or a combination of cash and Common Stock, at the Company’s election. Capitalized terms used but not defined herein shall have the meanings given to them in the Purchase Agreement.
To induce the Initial Purchasers that may participate in the Offering to continue their efforts in connection with the Offering, the undersigned hereby agrees that, without the prior written consent of the Representatives on behalf of the Initial Purchasers, it will not, during the period commencing on the date hereof and ending 90 days after the date of the final offering memorandum (the “Restricted Period”) relating to the Offering (the “Final Memorandum”), (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock beneficially owned (as such term is used in Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), by the undersigned or any other securities so owned convertible into or exercisable or exchangeable for Common Stock or (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise.  The foregoing sentence shall not apply to (a) transactions relating to shares of Common Stock or other securities acquired in open market transactions after the completion of the Offering, provided that no filing under Section 16(a) of the Exchange Act shall be required or shall be voluntarily made in connection with subsequent sales of Common Stock or other securities acquired in such open market transactions, (b) transfers of shares of Common Stock or any security convertible into Common Stock as a bona fide gift; provided that in the case of any transfer or distribution pursuant to clause (b), (i) each donee or distributee shall sign and deliver a lock‐up letter substantially in the form of this letter and (ii) no filing under Section 16(a) of the Exchange Act, reporting a reduction in beneficial ownership of shares of Common Stock, shall be required or shall be voluntarily made during the Restricted Period, or (c) the establishment of a trading plan pursuant to Rule 10b5-1 under the Exchange Act for the transfer of shares of Common Stock, provided that (i) such plan does not provide for the transfer of Common Stock during the Restricted Period and (ii) to the extent a public announcement or filing under the Exchange Act, if any, is required of or voluntarily made by or on behalf of the undersigned or the Company regarding the establishment of such plan, such announcement or filing shall include a statement to the effect that no transfer of Common Stock may be made under such plan during the Restricted Period.  In addition, the undersigned agrees that, without the prior written consent of the Representatives on behalf of the Initial Purchasers, it will not, during the Restricted Period, make any demand for or exercise any right with respect to, the registration of any shares of Common Stock or any security convertible into or exercisable or exchangeable for Common Stock. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company’s transfer agent and registrar against the transfer of the undersigned’s shares of Common Stock except in compliance with the foregoing restrictions.
The undersigned understands that the Company and the Initial Purchasers are relying upon this agreement in proceeding toward consummation of the Offering.  The undersigned further understands that this agreement is irrevocable and shall be binding upon the undersigned’s heirs, legal representatives, successors and assigns.
Whether or not the Offering actually occurs depends on a number of factors, including market conditions.  Any Offering will only be made pursuant to a Purchase Agreement, the terms of which are subject to negotiation between the Company and the Initial Purchasers.
	
	
	Very truly yours,

	(Name)

	(Address)Blue Sphere Corporation 8-K

 

Exhibit 10.01

 

SHARE PURCHASE AGREEMENT

relating to the purchase of 100%

of the share capital of FUTURIS PAPIA
S.r.l.

 

June 29, 2017

 

     

     

    

 

Content

 

	SECTION 1 - RECITALS, EXHIBITS AND DEFINITIONS	p. 2
	 	 
	SECTION 2 - PURCHASE AND SALE OF THE SHARES	p. 7
	 	 
	SECTION 3 - PURCHASE PRICE	p. 7
	 	 
	SECTION 4 - CONDITIONS PRECEDENT	p. 8
	 	 
	SECTION 5 - PRE-CLOSING COVENANTS	p. 12
	 	 
	SECTION 6 - CLOSING	p. 12
	 	 
	SECTION 7 - PUCHASE PRICE ADJUSTMENT 	p. 12
	 	 
	SECTION 8 - REPRESENTATIONS AND WARRANTIES	p. 13
	 	 
	SECTION 9 - INDEMNIFICATION OBLIGATIONS	p. 22
	 	 
	SECTION 10 - ACTIONS AND CONDUCT OF THE SPV UNTIL CLOSING	p. 25
	 	 
	SECTION 11 – CERTAIN CLOSING UNDERTAKINGS	p. 26
	 	 
	
        SECTION 12 – POST CLOSING
ACTIVITIES
	p. 27
	 	 
	SECTION 13 – GENERAL PROVISIONS	p. 28
	 	 
	EXHIBITS	p. 32

 

     

     

    

 

List of Exhibits

 

	Exhibit C	Original Shareholders’ declaration
	Exhibit E 	Due Diligence 
	Exhibit 1.1	NWC calculation criteria
	Exhibit 3.2	Shareholders’ loans existing at CLOSING DATE
	Exhibit 3.3(i)	Deed of assumption of debt and release
	Exhibit 3.3(ii)	Release of funds mechanism
	Exhibit 4.1(E)	GSE communication - white certificates
	Exhibit 4.1(G)	No outstanding claims declaration
	Exhibit 4.1(K)	SPV’s By-Laws
	Exhibit 6.2 	CLOSING Procedure
	Exhibit 8.1(vii)	Balance Sheet
	Exhibit 8.1(vii)bis	Interim Financial Statements
	Exhibit 8.1(xiii) 	Contracts
	Exhibit 8.1(xv)	SPV’s bank accounts
	Exhibit 8.1(xviii)	Leased Properties
	 	 

     

     

    

 

SHARE PURCHASE AGREEMENT

 

by and between

 

BLUE SPHERE Corp., incorporated
and existing under the laws of U.S., having its registered office at 301 McCullough Drive 4th. Floor, Charlotte, NC 28262, represented
by Mr. Shlomo Palas, born [ ], resident in 17 Etrog St., Rosh Hayyn (Israel), acting in his capacity of CEO and legal representative
of the company, duly empowered for the purposes hereof (hereinafter referred to as the “BUYER”)

 - on one side -

 

and

 

PRONTO VERDE A.G., incorporated
and existing under the laws of Switzerland, having its registered office in Aurdorf (UR), Bahnhoffplatz, 3, registered with the
Companies Register with identification number CHE-101.957.390, represented by Mr. Giovanni Di Vincenzo, born [ ], acting as chief
executive officer of the company, duly empowered for the purposes hereof (hereinafter referred to as the “SELLER”);

 

- on the other –

(the BUYER and the SELLER, collectively
referred to as the “PARTIES” and individually as the “PARTY”)

 

WHEREAS:

 

		A.	FUTURIS PAPIA S.R.L. is a limited liability company (“società a responsibilità
limitata”), organized under the laws of Italy, with registered office in Pavia di Udine (UD), Via Crimea No. 57, share
capital fully paid-in of Euro 100,000.00, Tax No. 02593530302 (hereinafter
referred to as “SPV”);

 

		B.	the SPV owns and operates a 0.995 Kw plant for the production of electricity from vegetal oil located
in Pavia di Udine (UD), Via Crimea No. 57 (hereinafter referred to as the “PLANT”); 

 

		C.	the SELLER has entered into a share purchase agreement with Futuris S.r.l. and Segati Friuli S.r.l.
(hereinafter referred to as the “ORIGINAL SHAREHOLDERS”) regarding the purchase of the entire capital of the
SPV – as confirmed by the written declaration executed by ORIGINAL SHAREHOLDERS substantially in the form attached hereto
as Exhibit C - and at the CLOSING DATE (as hereinafter defined) will own - and intends to sell its entire participation,
constituting 100% (one hundred per cent) of the share capital of the SPV (hereinafter referred to as the “SHARE”);

 

		D.	the SELLER intention to sell its SHARE is subject to the SELLER’s, the ORIGINAL SHAREHOLDERS
– and any other third guarantor – discharge from any liability arising from or connected with the mortgage loan entered
on 23 October 2012 no. [ ] before Mr. Gabriele Franco Maccarini, Public Notary in Milan between the SPV and Cassa di Risparmio
di Parma e Piacenza S.p.A. (“CARIPARMA”) secured by a mortgage for the amount of € 1,575,000.00 on a real
estate property owned by Danielli S.p.A. registered on 25 October 2012 before the Tax Agency of Milan 1, under numbers [ ] (“DANIELLI
MORTGAGE”);

 

		E.	prior to the execution of this agreement, the BUYER, also towards third parties, has had the opportunity
to conduct, with the assistance of its advisors, a legal, technical, tax and accounting due diligence on the documentation listed
in Exhibit E made available by the SELLER, and by visiting on site the PLANT (“Due Diligence”);
the BUYER, further to the Due Diligence, has decided to enter into this Share Purchase Agreement;

 

    1 

     

    

 

		F.	subject to the terms and conditions contained herein, the SELLER intends to sell to the BUYER,
and the BUYER, intends to purchase from the SELLER, the SHARE.

 

Now, therefore, the PARTIES agree
as follows:

 

SECTION
1          RECITALS, EXHIBITS AND DEFINITIONS

 

		1.1.	In addition to other terms defined elsewhere
in this Share Purchase Agreement, the following terms shall have the following meanings:

 

	
        AGREEMENT
	means this Share Purchase Agreement by and between the SELLER and the BUYER, including its recitals and Exhibits, as it may be amended from time to time;
	 	 
	BALANCE SHEETS	means the balance sheets as of 31 December 2016 of the SPV, attached hereto as Exhibit 8.1.(vii); 
	 	 
	BUSINESS DAY	means any calendar day on which banks are open for business in Milan, Italy;
	 	 
	CARIPARMA LOAN	means the loans granted by CARIPARMA and in general all the contracts entered by and between the SPV and CARIPARMA setting obligations against the SPV, e.g. mortgage loan on 23 October 2012 no. 57901/21652 Mr. Gabriele Franco Maccarini, Public Notary in Milan, including, without limitation, the IRS contracts; 
	 	 
	CHANGE OF CONTROL CONTRACT	means all contracts entered into by the SPV with third parties and/or by the SELLER and/or the ORIGINAL SHAREHOLDERS with reference to the SPV, (i) which require a consent of such third parties to the transaction contemplated herein (and in this case the BUYER shall cooperate with the SELLER, in order to achieve the aforementioned consent), or (ii) which require any prior notification of the transaction contemplated herein to such third parties; 
	 	 
	CLOSING	means the set of actions specified in Exhibit 6.2 attached to this AGREEMENT;
	 	 
	CLOSING DATE	means the date on which the CLOSING will take place pursuant to Section 6.1 below; 
	 	 
	CONDITIONS PRECEDENT	means all conditions precedent, as set forth in SECTION 4 below, upon which the CLOSING and the transfer of the SHARES are conditional; 

 

    2 

     

    

 

	ENVIRONMENTAL AND HEALTH AND SAFETY LAWS	means all Laws concerning environmental, health and safety, and risk prevention matters applicable to the business and operation of the SPV, including without limitation: safety and hygiene at work provisions, fire prevention, emissions, discharges or releases of pollutants, contaminants or Hazardous Materials into the environment or otherwise relating to the manufacture, processing, storage, transport or disposal of Hazardous Materials;
	 	 
	GAAP 	means the Italian generally accepted accounting principles approved by the Consiglio Nazionale dei Dottori Commercialisti e dei Ragionieri, as supplemented by the principles specified by the Organismo Italiano di Contabilità or, in their absence, the accounting principles prepared by the International Accounting Standard Board (I.A.S.B.), consistently applied by the SPV in the preparation of its financial statements;
	 	 
	GPOMA	means the Guarantee Plant Operation Management Agreement attached as Annex 3(II)(B)(vi) to the Closing Procedure attached hereto under Exhibit 6.2;
	 	 
	HAZARDOUS MATERIAL	means any substance, chemical or waste (including, without limitation, asbestos, polychlorinated biphenyls (PCBs) and petroleum) that is designated or defined (either by inclusion in a list of materials or by reference to exhibited characteristics or otherwise) as hazardous, toxic or dangerous, or as pollutant or contaminant;
	 	 
	ICC	means the Italian Civil Code;
	 	 
	INTERIM FINANCIAL STATEMENTS	means the financial statements as of April 30, 2017 of the SPV attached hereto as Exhibit 8.1(vii)bis; 
	 	 
	LOSSES	means any liabilities, obligations, losses, damage, charges, costs (including reasonable defense costs and tax burdens), expenses of any type, nature and amount;
	 	 
	MATERIAL ADVERSE CHANGE	means “any change or effect that, individually or in the aggregate, has had or would be expected to have a material adverse effect on the business, assets or liabilities of the SPV, taken as a whole; excluding any change or effect arising out of or related to: (i) the announcement of this AGREEMENT or the pendency or consummation of the transactions contemplated hereby; (ii) a change in Law or accounting standards, principles or interpretations thereof applicable to the SPV after the date hereof, (iii) changes generally applicable to financial, economic, political or similar conditions (including acts of war, armed hostilities, terrorism, weather conditions or any other force majeure), (iv) any actions taken, or failure to take action, or such other changes, in each case, either pursuant to this AGREEMENT or which BUYER has approved, consented to or requested in writing”;

 

    3 

     

    

 

	MATERIAL EVENT	
        means:

         

        (a)       the
SPV (i) being in a state of winding up or liquidation, (ii) being insolvent or in any of the situations mandatorily demanding
under applicable laws reductions of its capital or a recapitalization or in any event yielding a negative net asset value, (iii)
being subject to bankruptcy or subject to any insolvency or pre–insolvency procedures, liquidation or composition with creditors
(e.g., fallimento, insolvenza, liquidazione, concordato preventivo) or restructuring agreement, or have any legal proceedings
or other enforcement measures for a value exceeding EUR 50,000.00 (fifty thousand/00) initiated or applied for with respect to
any of its properties or other assets, (iv) having applied for admission to any insolvency procedures (including bankruptcy),
or having any such application or petition been filed or threatened in writing by any third party or having any meeting for the
winding up being convened, and, in general, there being any reason which could justify the application of the above mentioned
procedures; or

        (b)       any
lien on assets of the SPV being created or threatened to be created in connection with payment obligations in excess of EUR 50,000.00
(fifty thousand/00); or

        (c)       the
SPV receiving written notice of any alleged fact giving rise to any liability in excess of EUR 50,000.00 (fifty thousand /00)
as a consequence of any personal injury or property damage to a third party (including SPV employees or its contractors), or being
anyhow involved, at any title, in any dispute regarding alleged potential or actual danger or injury to health; or

        (d)       any
action of a civil, criminal or administrative nature by or before any Authority being brought or threatened against or involving
the SPV, provided that, in connection with actions of a civil nature only, a liability may, arise to the SPV in excess of EUR
50,000.00 (fifty thousand /00);

	 	 
	NET FINANCIAL POSITION (“NFP”)	means the aggregate amount of the following: a) total cash position (cash, cash equivalents and marketable securities) + b) short term or long term receivables against banks and further financial entities + c) public bonds or other debt securities – d) short term or long term debts against Banks or other financial institutions, including CARIPARMA LOAN;

 

    4 

     

    

 

	NET WORKING CAPITAL (“NWC”)	
        means the aggregate amount of the
        following: a) receivables against the State and Public Entities for taxes (VAT included) + b) receivables against Gestore Servizi
        Elettrici and other clients + c) book value of the inventory + d) accrual and deferrals pertaining taxes of 2016 and previous
        years in fiscal consolidation - e) debts against suppliers; - f) debts against social security entities - g) accrual and deferrals
        pertaining debts, to be calculated according to the format attached hereto as Exhibit 1.1;

         

	ORIGINAL SHAREHOLDER LOAN	
        means the following amounts
of the Shareholder’s Loan granted by Futuris S.r.l. to the COMPANY:

        (i) the amount of Euro 100,000.00
equal to the value of the claim to ALLIANZ (Ref. Aon 2017/0018668 for direct damages and AON RIF. 2017/0018676 for indirect damages)
and

        (ii) the amount of Euro 80,000.00
equal to the net receivables pertaining to the white certificates or “TEE” (i.e. invoices to be issued minus invoices
to be received pertaining to the TEE)

        that will not be assigned
to the BUYER and will be paid by the COMPANY to Futuris S.r.l. at the terms specified in Section 12;

	 	 
	OUTSTANDING SHAREHOLDERS’ LOAN	
        means the amount of the shareholders’
loan existing at the CLOSING DATE less the amounts of the ORIGINAL SHAREHOLDER LOAN not assigned as better specified in Exhibit
3.2;

	 	 
	PERSON	means any individual, corporation, partnership, firm, association, trust, unincorporated organization or other entity;
	 	 
	REFERENCE DATE	means 30 April 2017; 
	 	 
	SHARE	means the share of the capital of the SPV – represented by quota or stock – that will be owned by the SELLER at CLOSING and that will represent 100% (one hundred per cent) of the SPV corporate capital;
	 	 
	
        SELLER
BANK

        ACCOUNTS

         
	
        means the bank account designated
by the SELLER for the payments pursuant to this AGREEMENT at the following bank and having the following details:

        Banca dello Stato
del Canton Ticino

        Iban: [ ]

        BIC/SWIFT: [ ];

 

    5 

     

    

 

	TAX 	means all state or local taxes, social security contributions, fees, levies or other fiscal assessments and duties imposed by any federal, national or local taxing authorities, including (without limitation) all income taxes, gross receipts, transfer, recording, license, withholding, payroll, stamp, occupation and property taxes, excise or customs duties, sale, use, VAT and franchise taxes or other similar fees, assessments and charges, however denominated, together with all interest, penalties, surcharges, additions to tax or additional amounts imposed by any governmental authority pertaining to the present and past activities, acts, events, omissions or corporate and contractual transactions performed or in any case carried out by and/or in the name or on behalf of the SPV.

 

		1.2.	References to this AGREEMENT, include
the recitals and Exhibits which form part of this AGREEMENT for all purposes. Section headings are inserted for ease of reference
only and shall not affect construction.

 

		1.3.	Rules of construction.

 

		(i)	Recitals of and Exhibits to this AGREEMENT constitute an integral, essential and unseverable part
hereof.

 

		(ii)	All references herein to Recitals, Sections and Exhibits will be deemed references to the corresponding
recitals to, sections of, and exhibits to, this AGREEMENT.

 

		(iii)	The table of contents and the descriptive headings contained in this AGREEMENT are for reference
purposes only and will not affect the meaning or interpretation of this AGREEMENT.

 

		(iv)	Reference to any PERSON includes such PERSON’s successors and assigns but, if applicable,
only if and to the extent such successors and assigns are not prohibited by this AGREEMENT.

 

		(v)	The definitions set forth or referred to in Section 1.1 will apply equally to both the singular
and plural forms of the terms defined. The words “include”, “includes” and “including”
will be deemed to be followed by the phrase “without limitation”, where the context so permits. The words “herein”,
“hereof” and “hereunder” and words of similar import will be construed to refer to this AGREEMENT
in its entirety and not to any specific part thereof, unless the context otherwise requires.

 

		(vi)	Unless the context otherwise requires, any reference to any Law, agreement or other instrument
are made to it as amended and supplemented from time to time (and, in the case of a Law, to any successor provisions).

 

    6 

     

    

 

		(vii)	The
                                         obligation of a PARTY to use his/her/its “best efforts” to accomplish
                                         an objective will be construed as an obligation to take the actions that a party, subject
                                         to the high diligence required by the context, would be expected to take in its own interest
                                         in order to achieve such objective, but in no event as an absolute obligation to ensure
                                         that such objective is, in fact, achieved.

 

		(viii)	The
                                         words “will procure” or “will cause” (or any expression
                                         of similar import) and, in general, any undertaking regarding things to be done (or not
                                         done) by another PERSON will be construed as an absolute obligation to achieve the result
                                         that the relevant thing be done (or not done) as specified. The fact that the result
                                         is not achieved constitutes a breach of such obligation regardless of the efforts or
                                         diligence used by the relevant PARTY in the attempt to cause that the relevant thing
                                         be done (or not done) as specified and Article 1381 of the ICC will apply.

 

		(ix)	Any
                                         reference contained in this AGREEMENT to a “day” or number of “days”
                                         (without the explicit qualification of BUSINESS DAY) will be interpreted as a reference
                                         to a calendar day or number of calendar days. If any action or notice is to be, or may
                                         be, taken or given on or by a particular calendar day, and such calendar day is not a
                                         BUSINESS DAY, then such action or notice will be deferred until the next BUSINESS DAY.
                                         Without prejudice to the foregoing, Article 2963 of the ICC will apply to all computation
                                         of terms under this AGREEMENT.

 

		(x)	The
                                         language of this AGREEMENT will, in all cases, be construed as a whole, according to
                                         its fair meaning and without implying a presumption that the terms hereof should be construed
                                         against one PARTY, as opposed to the others, by reason of the rule of construction that
                                         a document is to be construed against the PARTY that has prepared the same, it being
                                         understood and acknowledged that representatives and advisors of each PARTY have participated
                                         in the negotiation and preparation of this AGREEMENT.

 

SECTION
2           PURCHASE AND SALE OF THE SHARES

  

		2.1.	Subject
                                         to the terms and conditions contained in this AGREEMENT, at CLOSING the SELLER shall
                                         sell, and the BUYER, shall purchase, all right, title and interest to the SHARE of the
                                         SPV for a consideration equal to the PURCHASE PRICE (as eventually adjusted according
                                         to Section 7 below).

  

SECTION
3           PURCHASE PRICE

 

		3.1.	For
                                         the purchase of the SHARES the PARTIES have agreed on an overall consideration (hereinafter
                                         the “PURCHASE PRICE”) to be calculated on the basis of the INTERIM
                                         FINANCIAL STATEMENT provided for by Section 7.2 according to the following formula:

  

PP
= IPP + NFP + NWC – C

 

Where:

  

PP
= PURCHASE PRICE

 

     7

     

    

 

IPP
= the initial purchase price equal to EUR 2,358,000.00 (two million three hundred fifty-eight thousand/00) (hereinafter referred
to as “INITIAL PURCHASE PRICE”);

NFP
= Net Financial Position at CLOSING;

NWC
= Net Working Capital at CLOSING;

C
= net receivables pertaining to the white certificates or “TEE” as resulting in the INTERIM FINANCIAL STATEMENT (i.e.
invoices to be issued minus invoices to be received pertaining the TEE).

  

		3.2.	The
                                         PARTIES acknowledge that the PURCHASE PRICE includes the assignment to the BUYER of all
                                         OUTSTANDING SHAREHOLDERS’ LOAN existing and outstanding as specified in Exhibit
                                         3.2.

  

		3.3.	Payments.
                                         The PURCHASE PRICE shall be paid to the SELLER on the SELLER’s BANK ACCOUNT as
                                         follows:

  

		(i)	at
                                         CLOSING DATE, in compliance with the mechanism provided for by Exhibit 6.2,
                                         for an overall amount (the “CLOSING PAYMENT”) equal to the IPP less
                                         (i) the amount that shall be loaned to the SPV in order to re-pay the CARIPARMA LOAN
                                         including all ancillary costs related to; (ii) Euro 100,000.00 (one hundred thousand/00),
                                         equal to the amount of the brokerage fee to be paid by SELLER, that shall be assumed
                                         by the BUYER executing the debt assumption deed substantially in the form attached hereto
                                         as Exhibit 3.3(i); and (iii) Euro 100,000.00 (one hundred thousand/00)
                                         that shall be paid into the Escrow Account provided for under Section 8 of the
                                         GPOMA;

 

		(ii)	on
                                         September 30, 2017, the balance, if any, of the PURCHASE PRICE, as determined according
                                         with Section 7, shall be paid to the SELLER according to the terms specified in
                                         Exhibit 3.3(ii) (the “PP BALANCE”).

  

		3.4.	The
                                         different amount – if any – that will result from the application of the
                                         adjustment mechanism provided for in Section 7 (hereinafter referred to as the
                                         “ADJUSTED PRICE”), shall be paid within the terms provided under Section
                                         7.

  

		3.5.	PURCHASE
                                         PRICE Allocation. The PURCHASE PRICE paid by the BUYER to the SELLER shall be allocated
                                         as follows:

		-	a
portion of the PURCHASE PRICE equal to the nominal value of the OUTSTANDING SHAREHOLDERS’ LOAN existing at CLOSING DATE
as resulting from the CLOSING FINANCIAL STATEMENT and specified in Exhibit 3.2 shall be allocated as consideration
for the assignment of the OUTSTANDING SHAREHOLDERS’ LOAN to BUYER;

		-	the
remaining balance of the PURCHASE PRICE, shall be allocated for the purchase of the SHARES.

  

SECTION
4            CONDITIONS PRECEDENT 

  

		4.1.	The
                                         CLOSING and the transfer of 19.9% of the SHARE that shall occur as contemplated in Exhibit
                                         6.2 are conditional upon the occurrence of all the following conditions precedent
                                         (hereinafter referred to as the “CONDITIONS PRECEDENT to CLOSING A”):

 

     8

     

    

 

		(A)	if
                                         necessary, for the CHANGE OF CONTROL CONTRACTS, the SELLER caused the SPV to (i)
                                         obtain the necessary consent from its counterpart, in such cases where consent is required,
                                         or (ii) notify its counterpart, in such cases where pure notification is required
                                         and has delivered written evidence thereof to the BUYER, except for the CARIPARMA LOAN;

  

		(B)	with
                                         regard to the CARIPARMA LOAN, the SELLER has received from CARIPARMA a written document
                                         (hereinafter referred to as the “CONFIRMATION LETTER”) stating:

		(i)	the
                                         bank’s consent to the consummation of the sale transaction provided under this
                                         AGREEMENT;

		(ii)	the
                                         confirmation that CARIPARMA acknowledges and accepts that the SPV, at the CLOSING DATE
                                         will proceed with the anticipated re-payment of the loan;

		(iii)	the
                                         confirmation by the bank of the amount to be paid for the earlier repayment of the CARIPARMA
                                         LOAN;

		(iv)	the
                                         declaration that, with and subject to the payment under (iii) above, CARIPARMA
                                         (a) will release and fully discharge the SPV, the SELLER, the BUYER and DANIELLI S.p.A.
                                         from any commitment or obligation under the LOAN AGREEMENT, having the LOAN AGREEMENT
                                         been repaid and (b) will formalize its consent to the cancellation of the DANIELLI MORTAGE
                                         by notarized deed;

 

		(C)	on
                                         the CLOSING DATE, the SELLER delivers to the BUYER a written declaration stating that
                                         all the representations and warranties of the SELLER under Section 8 below are
                                         true and correct on and as of the REFERENCE DATE and the CLOSING DATE with the same effect
                                         as though such representations and warranties had been made on and as of such date;

 

		(D)	on
                                         the CLOSING DATE, the SELLER delivers to the BUYER a written declaration stating that
                                         no MATERIAL EVENT has occurred and is outstanding as at such date, it being in any event
                                         understood that the SELLER will promptly inform the BUYER of any MATERIAL EVENT occurring
                                         between the REFERENCE DATE and the CLOSING DATE. In particular, such written declaration
                                         of the SELLER shall confirm that in the period from the REFERENCE DATE until the CLOSING
                                         DATE, the SPV has not:

		a.	suffered
                                         any damage, destruction or loss by reason of fire, flood, accident, or other casualty,
                                         of such character which, directly or indirectly, materially impedes the Ongoing Operations
                                         of the SPV;

		b.	declared,
                                         set aside or paid any dividend or distribution of reserves;

		c.	entered
                                         into any new agreement with the SELLER or with any PERSONS directly or indirectly controlling,
                                         controlled, or affiliated to such entities;

		d.	entered
                                         into any transactions other than necessary for the ordinary course of business;

		e.	accrued
                                         or paid any fees or expenses for counsel, accountants or other experts, incident to the
                                         negotiation, preparation or execution of this AGREEMENT, or consummation of the transactions
                                         contemplated hereby;

 

     9

     

    

 

		f.	entered
                                         into any agreement or other commitment for any expenditures for capital assets and/or
                                         for the ordinary and routine maintenance and repairs, which maintenance and repair expenditures
                                         are not required to be capitalized;

		g.	received
                                         any termination of, or receipt of notice of termination of any permits, licenses or other
                                         administrative authorizations required in order to carry out the SPV business;

		h.	been
                                         affected by any MATERIAL ADVERSE CHANGE;

		i.	carried
                                         out any sale or disposition of or undertaking to sell or dispose of any of its assets,
                                         related to the business;

		j.	in
                                         general, consummated any action or omission whose effect has been, or may potentially
                                         be, that of damaging the assets or the economic, financial, or legal situation of the
                                         SPV;

  

		(E)	the
                                         SELLER delivers to the BUYER a written declaration stating that at the CLOSING DATE (i)
                                         the SPV is in compliance with GSE regulation, having obtained and being in force all
                                         authorizations, permits and licenses necessary to operate the PLANT and be granted with
                                         the incentives the incentives according to the current applicable law and (ii) no objection
                                         or claim having been raised by the GSE with respect to the validity and effectiveness
                                         of authorizations, permits and licenses issued in favor of the SPV and/or with respect
                                         to any incentives granted in favor of the SPV or of which the SPV is profiting with the
                                         exception of the objections regarding the white certificates raised by the GSE by the
                                         letter attached as Exhibit 4.1(E) it being understood and agreed that SELLER’s
                                         liability deriving from possible GSE rejection of such certificates (I) is excluded for
                                         the white certificates’ amount indicated as “C” in the formula for
                                         the PURCHASE PRICE calculation indicated in Section 3.1 and (II) will cover any
                                         consequence, damages and costs deriving and/or originated therefrom, other than the amount
                                         specified in point (I) above;

 

		(F)	the
                                         SELLER delivers to the BUYER a tax certificate issued by the competent tax authorities
                                         and updated to the REFERENCE DATE, evidencing that the SPV is compliant with tax payment
                                         and has no outstanding debts or disputes towards tax authorities;

 

		(G)	the
                                         SELLER delivers to the BUYER a written declaration substantially in the form attached
                                         hereto as Exhibit 4.1.(G), confirming that, except as specifically disclosed
                                         in the declaration, same SELLER and/or the ORIGINAL SHAREHOLDERS of the SPV (i.e. Futuris
                                         S.r.l. and Segati Friuli S.r.l.) do not have any outstanding claim towards the SPV;

 

		(H)	no
                                         existing medium term vegetable oil supply agreement is in place (being the vegetable
                                         oil supply satisfied on the spot market or by monthly agreements at standard market conditions)
                                         and the existing maintenance agreement lasting until the achievement of 49,000 hours
                                         has been duly terminated per its terms, assigned to the SELLER for the performance of
                                         its obligations under the GPOMA (as provided for in Exhibit 6.2) without
                                         any claim from the relevant supplier towards the SPV or the SELLER has delivered to the
                                         BUYER an indemnity letter for any liability deriving of connected with such an existing
                                         maintenance agreement;

 

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		(I)	no
                                         fact, matter or circumstance in the economic, geographic, political, regulatory, social
                                         or governmental environment (whether in Italy or abroad) has occurred on or prior to
                                         and is existing at the CLOSING DATE which might materially adversely affect the SPV;

 

		(J)	the
                                         SPV’s shareholders meeting has: (i) approved the transformation of SPV from S.r.l.
                                         (società a responsabilità limitata) into S.p.A. (Società
                                         per azioni), with a capital of Euro 120,000.00, entirely subscribed and paid-in,
                                         represented by n. 120,000 shares with par value of Euro 1.00 each, (ii) adopted the By-Laws
                                         according to the text attached hereto as Exhibit 4.1(K) and (iii) appointed
                                         a board of statutory auditors whose designation has been previously agreed with BUYER;

 

		4.2.	The
                                         CLOSING and the transfer of 80,1% of SHARE that shall occur as contemplated in Exhibit
                                         6.2 are conditional upon the occurrence of all the following conditions precedent
                                         (hereinafter referred to as the “CONDITIONS PRECEDENT to CLOSING B”
                                         and jointly with the CONDITIONS PRECEDENT CLOSING A, the “CONDITIONS PRECEDENT”):

 

		(K)	resolution,
                                         approval and receipt by the SPV of a shareholder loan from the BUYER for an amount at
                                         least equal to the amount necessary for the repayment of the CARIPARMA LOAN as specified
                                         in the CONFIRMATION LETTER;

 

		(L)	CARIPARMA
                                         releases the CARIPARMA QUITTANCE, as better specified in Exhibit 6.2.

 

		4.3.	Each
                                         PARTY undertakes to use all reasonable endeavors to ensure that the CONDITIONS PRECEDENT
                                         are fulfilled as soon as reasonably practicable, and in any event by and not later than
                                         the timing specified in Exhibit 6.2. Each PARTY, to the applicable extent,
                                         shall perform all actions that may be necessary or useful in order to fulfill the CONDITIONS
                                         PRECEDENT. Also
for the purpose of Section 4.1 above, the PARTIES undertake to comply with terms and conditions of detail relating to the
occurrence of the CONDITIONS PRECEDENT and the consummation of the CLOSING as better agreed and detailed under Exhibit 6.2.

  

		4.4.	The
                                         PARTIES acknowledge and agree that the CONDITIONS PRECEDENT (A), (C), (D), (E), (F),
                                         (G), (H), are provided for in the exclusive interest of the BUYER and that the CONDITIONS
                                         PRECEDENT (B), (I), (J), (K) and (L) are in the mutual interest of the Parties. The BUYER
                                         as far as it is concerned, may, at its absolute discretion, waive the CONDITIONS PRECEDENT
                                         under Section 4.1 lett. (A), (C), (D), (E), (F), (G), (H), either in whole or
                                         in part, at any time by notice in writing to the SELLER, provided that no waiver, in
                                         all or in part, of the CONDITIONS PRECEDENT will release the SELLER from any liability
                                         under Section 9 nor limit that liability in any manners.

  

		4.5.	In
                                         the event that any of the CONDITIONS PRECEDENT shall not have been fulfilled (or waived
                                         pursuant to Section 4.4 above) within the timing specified in Exhibit 6.2,
                                         then the PARTIES shall not be bound to proceed with the sale and purchase of the SHARE
                                         and this AGREEMENT shall cease to be effective at such time and shall stop being effective,
                                         save for those clauses listed or referred to in Section 12 below (which shall
                                         remain in force). In such case, each PARTY shall bear its own expenses and costs already
                                         occurred reciprocally waiving any claim, request of indemnity or damages.

 

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SECTION
5            PRE-CLOSING COVENANTS

 

		5.1.	The
                                         SELLER undertakes to deliver to the BUYER, prior to the CLOSING DATE, the CLOSING FINANCIAL
                                         STATEMENTS provided for by Section 7.2.

  

SECTION
6            CLOSING

 

		6.1.	Without
                                         prejudice to the provisions of SECTION 4, the CLOSING shall take place on the
                                         CLOSING DATE at the office of the Public Notary Ruben Israel in Milan, on the July 15,
                                         2017 (the “CLOSING DATE”) or in any other prior date mutually agreed
                                         in writing by the Parties.

  

		6.2.	At
                                         CLOSING DATE the BUYER shall purchase from the SELLER the SHARES, paying the PURCHASE
                                         PRICE according to the mechanism and perform each and all the activities specified in
                                         the CLOSING mechanism procedure attached to this AGREEMENT under Exhibit 6.2.

  

		6.3.	At
                                         CLOSING DATE, the BUYER and the SELLER will retain the auditing firm BDO Italia S.p.A.
                                         (or another auditing firm having the same standing, that will be indicated by the BUYER,
                                         hereinafter the “AUDIT FIRM”), to prepare and review the CLOSING FINANCIAL
                                         STATEMENT as defined in Section 7.3. The fees charged by the AUDIT FIRM in connection
                                         with the activity regarding the CLOSING FINANCIAL STATEMENT shall not exceed the amount
                                         of EUR 15,000.00 and shall be shared for 1/3 by the BUYER and 2/3 by the SELLER.

 

		6.4.	At
                                         the CLOSING DATE, all rights and interests attached to the SHARE of the SPV shall be
                                         transferred to the BUYER according to the procedure indicated in Exhibit 6.2.

 

		6.5.	The
                                         PARTIES acknowledge that all the actions described in Exhibit 6.2 will
                                         be considered as undertaken in a sole context and that each of them is of essence. Failure
                                         by one or more PARTIES to properly and fully accomplish any of such actions and/or any
                                         other action under this Section 6 will entitle the non-defaulting PARTY not to
                                         proceed with CLOSING, and to claim damages from the defaulting PARTY.

 

SECTION
7            PURCHASE PRICE ADJUSTMENT

 

		7.1.	The
                                         SELLER guarantee that the SPV is in an “Ongoing Concern” situation
                                         (i.e. it is regularly and continuously operating in full compliance with granted
                                         authorizations, capable of regularly and timely paying its suppliers and debts).

  

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		7.2.	In
                                         order to evidence the existence of the requirements indicated in Section 7.1 and
                                         to fix the PURCHASE PRICE the ORIGINAL SHAREHOLDERS, the SELLER and the BUYER shall cooperate
                                         with the SPV in order to prepare and deliver to the AUDIT FIRM, within 15 days after
                                         the CLOSING DATE, a draft financial statement of the SPV as of June 30, 2017.

  

		7.3.	The
                                         AUDIT FIRM, no later than (60) days after the CLOSING DATE, shall review, audit and deliver
                                         to the PARTIES the closing financial statement received pursuant to Section 7.2
                                         above (hereinafter referred to as the “CLOSING FINANCIAL STATEMENT”).
                                         Attached to the CLOSING FINANCIAL STATEMENT the AUDIT FIRM shall deliver a report (the
                                         “ADJUSTMENT REPORT”) that shall evidence the difference, if any, concerning
                                         the calculation of the PURCHASE PRICE and, accordingly, shall proceed with the calculation
                                         of the ADJUSTED PRICE (hereinafter referred to as “ADJUSTED AMOUNT”).

  

		7.4.	The
                                         PARTIES agree that:

		(i)	in
                                         the event the ADJUSTED PRICE evidences a reduction of the PURCHASE PRICE, the SELLER
                                         shall pay the ADJUSTED AMOUNT to the BUYER;

		(ii)	in
                                         the event the ADJUSTED PRICE evidences an increase of the of the PURCHASE PRICE, the
                                         BUYER shall pay the ADJUSTED AMOUNT to the SELLER.

  

		7.5.	Without
                                         prejudice to Section 3.3 above, on September 30, 2017 the payment of the amount
                                         under:

		(i)	Section
                                         7.4(i) shall be made by the SELLER, either by payment in cash or by set-off with
                                         any amount due by BUYER;

		(ii)	Section
                                         7.4(ii) shall be made by the BUYER according to and subject to the terms and conditions
                                         provided for in Exhibit 3.3(ii) attached hereto.

  

SECTION
8            REPRESENTATIONS AND WARRANTIES

 

		8.1.	The
                                         SELLER hereby represents and warrants to the BUYER that each of the statements contained
                                         in this Section is true and correct as of the date hereof and will also be so as of the
                                         CLOSING DATE, as if such representation and warranty had been given on such date (unless
                                         it is specifically provided for that a representation shall be made as of a different
                                         date):

 

		(i)	Authorization.
                                         The SELLER and the SPV are duly organized, validly existing and in good standing under
                                         Swiss laws, and as set forth in its by-laws, as currently in force. The SELLER has full
                                         power, authority and capacity to enter into and perform this AGREEMENT. All corporate
                                         acts and other proceedings required to be taken by or on behalf of the SELLER to authorize
                                         it to enter into this AGREEMENT and to carry out the transactions contemplated herein
                                         have been duly and properly taken. No application to, or filing with, or consent, authorization
                                         or approval of, or license, permit, registration, declaration or exemption by, any Authority
                                         is required of the SELLER or the SPV in connection with the execution and performance
                                         of this AGREEMENT.

 

		(ii)	No
                                         Conflict. The execution and delivery of this AGREEMENT and the consummation of the
                                         transactions contemplated hereby:

		-	do
not conflict with, or result in the breach of, any provisions of the articles of incorporation or the by–laws of the SPV
and/or of the SELLER;

 

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		-	do
not conflict with, or result in a breach of, any obligations or undertakings of any nature assumed by the SELLER or the SPV;

		-	do
not violate any Law applicable to the SELLER or the SPV;

		-	do
not constitute a default, or give rise to a payment of any penalty or damages, change of any terms, or give rise to a right of
termination, cancellation or acceleration of, or require any further consent or waiver under, any agreement or instrument by which
the SELLER or the SPV is bound;

		-	is
not impeded by any injunction or definitive decision issued by any court or other judicial body or governmental authority relating
to the SPV, directly or indirectly, materially preventing the ongoing operations of the SPV or prohibiting, either in whole or
in part, or making illegal the transaction contemplated herein.

  

		(iii)	Existence
                                         of the SPV. The SPV is duly organized, validly existing and in good standing under
                                         Italian laws and as set forth in its by-laws as currently in force. The SPV has at all
                                         times carried out its business and conducted its affairs in accordance with its by-laws
                                         in force at that time and has not entered into liquidation or any other debtor relief
                                         proceeding under the Italian Law.

 

		(iv)	Capitalization.
                                         The SPV: (i) is fully compliant with the capital requirement provided for by Italian
                                         Law in order to regularly conduct its activity and (ii) its authorized capital at CLOSING
                                         DATE shall be equal to Euro 120,000.00 (one hundred twenty thousand/00) and shall be
                                         fully issued and paid up in cash. At the CLOSING, the BUYER will acquire full good and
                                         marketable title to, and will become the sole, legitimate, exclusive and registered owner
                                         of the SHARE free and clear of any encumbrances. The SELLER or the ORIGINAL SHAREHOLDERS
                                         have not received any payment, for whichever reason, from the SPV during the period from
                                         the REFERENCE DATE until the CLOSING DATE. There are no options, warrants, conversion
                                         or subscription rights, agreements, contracts or commitments of any kind obligating the
                                         SPV, conditionally or otherwise, to issue, assign or sell any new shares or other equity
                                         or quasi–equity interests, or any instruments convertible into or exchangeable
                                         for any shares or other equity or quasi–equity interests.

 

		(v)	Ownership.
                                         The SELLER at Closing will be the owner of and will have good and valid title to its
                                         portion of the SHARE. The SELLER at Closing will have the full and unrestricted right,
                                         power and authority to validly sell, assign, transfer and deliver, as of the CLOSING
                                         DATE, the SHARE.

  

		(vi)	Participations
                                         in other companies. The SPV does not own any participation in other companies, entities
                                         or joint-ventures except for G3Oil, and it is not bound by any commitment to acquire
                                         any such participation or to invest in any companies, entities or joint-venture.

 

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		(vii)	Financial
                                         statements. The BALANCE SHEETS and the INTERIM FINANCIAL STATEMENTS are, as of their
                                         respective dates, true, correct and complete in all material respect, have been prepared
                                         from and are consistent with the books and records of the SPV and have been prepared
                                         in accordance with GAAP, consistently applied throughout the periods involved, the ICC
                                         and other applicable rules. The BALANCE SHEETS and the INTERIM FINANCIAL STATEMENTS are
                                         in accordance with applicable GAAP, the ICC and other applicable rules. The BALANCE SHEETS
                                         and the INTERIM FINANCIAL STATEMENTS do not omit to state or reflect any material fact
                                         concerning the SPV, required to be stated or reflected therein, or necessary to make
                                         the statements contained therein not misleading. The BALANCE SHEET, the INTERIM FINANCIAL
                                         STATEMENTS are attached to this Agreement, respectively, under Exhibit 8.1.(vii)
                                         and Exhibit 8.1.(vii)bis.

  

		(viii)	Books
                                         and Accounts. The books of account of the SPV, duly updated as of the CLOSING DATE,
                                         are complete and correct in all material respect.

  

		(ix)	Accounts
                                         receivables. All financial and trade accounts receivables and notes receivables reflected
                                         in the INTERIM FINANCIAL STATEMENTS and all accounts receivables subsequently accrued
                                         between the REFERENCE DATE and the CLOSING DATE, as will result in the CLOSING FINANCIAL
                                         STATEMENT, are (i) valid, genuine and existing, (ii) not subject to any defense or counter-claims
                                         and (iii) fully collectable at their respective maturity date safe for the receivables
                                         against the ORIGINAL SHAREHOLDERS that shall be off-set with an equal amount of the SPV’s
                                         payable towards the ORIGINAL SHAREHOLDERS.

  

		(x)	Assets. The SPV has good and valid title, or with respect to assets held under a lease, rental or other leasing agreement, the valid
right to use the soil, machinery, furniture, equipment and other tangible assets used in connection with the business of the SPV
and all other fixed assets referred to in the INTERIM FINANCIAL STATEMENTS and any additions thereto made since the REFERENCE
DATE. All assets, equipment and machinery are (except usual wear and tear) in good operating condition and have been regularly
and timely maintained in full compliance with manufacturer’s instructions. Such assets comprise all the assets used for
the continuation of the SPV activity as carried out at the date of this AGREEMENT.

  

		(xi)	Undisclosed
                                         liabilities. The SPV has no liabilities or obligations whatsoever, either accrued,
                                         absolute, contingent or otherwise, and there is no basis for any claim against it or
                                         any liability, except (i) to the extent set forth on the INTERIM FINANCIAL STATEMENTS
                                         or on the CLOSING FINANCIAL STATEMENTS; (ii) to the extent specifically set forth in
                                         this AGREEMENT; or (iii) with respect to liabilities or obligations incurred in the normal
                                         and ordinary course of business, none of which will, or could, have a MATERIAL ADVERSE
                                         CHANGE effect.

  

		(xii)	TAX.
                                         The SPV has filed, or caused to be filed, all TAX returns required by any government
                                         authority, including, but not limited to, income tax returns, real estate tax returns,
                                         value added tax returns and social security declarations. Such tax returns are true,
                                         complete and correct.

 

No
TAX audit, TAX assessment or TAX claim is pending and no written notice of any such claim was received as of the date of this
AGREEMENT. As of the date of this AGREEMENT, there exists no unpaid due income or other TAXES or any TAX deficiency or any unpaid
due contribution or contribution deficiency assessed by any governmental authority.

 

     15

     

    

 

The
SPV has paid or have made the necessary provisions for the payment of all TAXES, the payment of which was due; the SPV has withheld,
or (as the case may be) have made provisions for, all TAXES required to be withheld and has timely paid such TAXES in accordance
with applicable laws and regulations. Any amounts set up for reserves for TAXES in the INTERIM FINANCIAL STATEMENTS are and will
be sufficient for the payment of all unpaid TAXES, whether or not such TAXES are disputed or are yet due and payable up to the
CLOSING DATE.

 

No
relief from, against or in respect of any TAXES has been claimed and/or given to the SPV which could or might be effectively withdrawn,
postponed, restricted, clawed back or otherwise lost.

  

		(xiii)	Contracts.
                                         Except as set forth in Exhibit 8.1.(xiii), the SPV does not have outstanding:

		a.	any
                                         third-party’s contract;

		b.	any
                                         contracts with the SELLER or persons directly or indirectly controlling, controlled,
                                         or affiliated to the SELLER and/or the ORIGINAL SHAREHOLDERS;

		c.	any
                                         guarantee, indemnity, or similar undertaking for any indebtedness of any other person;

		d.	any
                                         contract or commitment not made in the ordinary course of business which is material
                                         to the business, economic, financial condition or results of operations of the SPV;

		e.	any
                                         contract or commitment from which the SPV are not entitled to withdraw on 6 months’
                                         notice or less with the application of any charges.

 

		(xiv)	Validity
                                         of contracts. Each of the contracts and agreements to which the SPV is a party and
                                         which are listed under Exhibit 8.1.(xiii) constitute a valid and binding
                                         obligation of the parties thereto in accordance with their terms and conditions. The
                                         consummation of the transaction contemplated in this AGREEMENT shall not cause, pursuant
                                         to the relevant contractual provisions, the termination of any contract to which the
                                         SPV is a party, nor shall entitle any counterparty to withdraw or otherwise terminate
                                         such contract. There are no conditions or circumstances that may result in or cause material
                                         default by the SPV and no claim or request of fulfillment has been received by the SPV
                                         in connection with such agreements.

 

Except
as provided under Exhibit 8.1.(xiii) no party has given notice of termination or cancellation of any contract that
is material to the conduct of the SPV’s business as conducted so far.

 

The
SPV is in full compliance with all bank loan covenants.

 

No
purchase commitment for materials, supplies or other items to which the SPV is a party is in excess of the current requirements
of its business, or inconsistent with past business practice.

  

		(xv)	Bank
                                         accounts. Exhibit 8.1(xv) contains a list of all bank accounts maintained
                                         by the SPV, together with the names of authorized signatories on each such account.

 

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		(xvi)	Financing.
                                         Except for the CARIPARMA LOAN, (i) there are no short-term or medium-long-term loans
                                         or credit facility granted to the SPV, (ii) there are no factoring agreements to which
                                         the SPV is party, (iii) there are no guarantees and letters of “patronage”
                                         issued by third parties in favor of credit institutions and in the interest of the SPV
                                         and (iv) there are no guarantees and letters of “patronage” issued by the
                                         SPV in favor of credit institutions and in the interest of third parties.

 

		(xvii)	Insurance.
                                         The SPV maintains, with reputable insurance companies, insurance in at least such amounts
                                         and against at least such risks as are usually insured against in the same general area
                                         by companies engaged in the same or similar business. All insurance contracts concerning
                                         assets of the SPV are and will remain valid and in force after the consummation of the
                                         transaction contemplated in this AGREEMENT. The SPV is not in breach of any insurance
                                         policy and may directly request the insurance companies to perform payments of sums owed
                                         by them in connection with insured events suffered by the SPV. All premiums due with
                                         respect to each policy have been paid.

 

		(xviii)	Leased
                                         Property. The real estate property leased by the SPV is set out in Exhibit
                                         8.1(xviii) (the “Leased Properties”).

 

The
Leased Property is leased on the basis of a lease agreement (the “Lease Agreement”) compliant with applicable
Laws. The Lease Agreement is and will be, as at the CLOSING DATE, valid, binding, in full force and effect and fully enforceable
in accordance with its terms. The Lease Agreement will continue unimpaired after the CLOSING DATE without: (i) the consent of
the other party or parties thereto being required; and (ii) the payment of any penalty or change of any material terms.

 

The
SPV is entitled to and has free, undisturbed and exclusive possession of the Leased Property and no other PERSON has any interest
in or has any right to possess, occupy or use the Leased Property, nor such possession has been challenged by any third parties.

 

No
party to a Lease Agreement is in breach or default thereunder and the SPV has always been in compliance with the terms of the
Lease Agreement and there are neither disputes (pending or threatened) with the landlord or any other PERSON, nor subsisting notices
alleging a material breach of any covenants, conditions and agreements contained in the relevant lease, on the part of the tenant
or landlord.

 

The
SPV has complied with all applicable TAX registration fees. The Leased Property complies with all applicable zoning, building
(edilizia e urbanistica), cadastral, health, safety and energy conservation Laws and requirements. Without limitation of
the generality of the foregoing, the Leased Property is built and/or has undergone works in compliance with regular licenses,
authorizations or permits, timely issued by the competent Authorities, which have also released all the necessary certificates
or statements of compliance, including, the fitness–for–use certificate (“certificato di agibilità”)
and the fire prevention certificate (“certificato di prevenzione incendi”).

 

No
party to the Lease Agreement has given notice of termination or cancellation of the Lease Agreement or that it intends to terminate,
change the terms or cancel the agreement as a result of the transactions contemplated in this AGREEMENT.

 

    	17 

     

    

 

The
Leased Property is in all material respects in adequate condition and in good maintenance and repair, except for normal wear and
tear.

 

		(xix)	Environmental,
                                         health and safety matters. The SPV has at all times complied with and is currently
                                         in compliance with the provisions of applicable ENVIRONMENTAL AND HEALTH AND SAFETY LAWS.

 

The
SPV has been issued all required and mandatory permits, licenses, certificates and approvals required by law.

 

No
material work or expenditure is required of the SPV under any ENVIRONMENTAL AND HEALTH AND SAFETY LAWS in order to continue to
lawfully carry out its business.

 

The
SPV has not received any notice of any fact(s) that might constitute violation(s) of any applicable ENVIRONMENTAL AND HEALTH AND
SAFETY LAW.

 

To
the best knowledge of the SELLER since the moment when the SPV has taken possession of the its premises or facilities (including
the Leased Property), there has been no emission, spill, release, discharge or threatened release into or upon: (a) the air; (b)
the soil or any improvements located thereon; (c) the surface water or ground water; or (d) the sewer, septic system or waste
treatment, storage or disposal system servicing the premises of the SPV, of any HAZARDOUS MATERIALS at or from such facilities.

 

No
Leased Property: (a) is contaminated by any HAZARDOUS MATERIALS; or (b) contains underground storage tanks which have leakages
or spills; or (c) contains any asbestos containing material which under applicable Law should have been removed from the real
property.

 

		(xx)	Service
                                         contracts. Exhibit 8.1.(xiii) contains a complete list of all the services
                                         contracts executed by the SPV and currently in force. All service contracts are fully
                                         compliant with applicable legislation on the lending of workmanship (including, without
                                         limitation, Law No. 276 of September 10th, 2003), and have at all times been
                                         performed in accordance with such legislation; the persons operating on behalf of the
                                         contractors are not entitled to be re-characterized as employees of the SPV.

 

		(xxi)	Litigation.
                                         The SPV has not received any notice of or is not aware of any threatens or claim, action,
                                         suit or arbitration, before any court, administrative or regulatory body, arbitration
                                         panel, or any governmental agency. SELLER or the ORIGINAL SHAREHOLDERS have not received
                                         or is not aware of any claim, action or proceeding now pending or threatened before any
                                         court, administrative or regulatory body, arbitration panel, or any governmental agency,
                                         which will, or could, prevent or hamper the consummation of the transactions contemplated
                                         by this AGREEMENT.

 

		(xxii)	Licenses
                                         and permits. The licenses, permits and authorizations held by the SPV including,
                                         without limitation, any decision granting incentives in favor of the SPV or of which
                                         the SPV is profiting, are valid and in full force and effect, in compliance with all
                                         applicable laws and regulation. The SELLER is not aware of any reasons for the suspension,
                                         revocation or cancellation, in whole or in part, of the licenses, permits, authorizations
                                         and incentives decisions relating to the SPV and/or the PLANT. The SPV holds any and
                                         all licenses, permits and authorizations required for the lawful operation of its business
                                         and they are being and have been complied with at all times. In particular, the SPV is
                                         in compliance with all the requirements of the various permits which were and are required
                                         to build and to operate the PLANT, to sell the electricity produced and to continue to
                                         receive the incentives granted as of the date hereof

 

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		(xxiii)	Compliance.
                                         Except as otherwise provided in other Sections of, or Exhibits to, this AGREEMENT, the
                                         SPV is not, in violation of any applicable Laws or permit, certification, authorization
                                         or license however required under any applicable Laws, with respect to the ownership,
                                         use, maintenance and operation of its business or of any assets and properties. In particular,
                                         the SPV has complied with and is compliant with all GSE requirements regarding the incentive
                                         regime awarded and the TEE program of which it has been part and it is now finished.

 

The
SPV, in the 5 (five) years preceding the date hereof, has not been in material default under, or in material violation of, any
Laws (including, any applicable, antitrust, environmental, health, labor, or foreign corrupt practices Law) to which the SPV is
or was subject, or of any permit, certification, authorization or license however required under any applicable Laws, with respect
to the ownership, use, maintenance and operation of its business or of any assets and properties.

 

The
SPV has in full force and effect all permits, certifications, licenses or authorizations however required under any applicable
Laws, with respect to the ownership, use, maintenance and operation of its business or of any assets and properties; the SELLER
is not aware of any condition, event or state of facts which might cause, or give rise to the revocation, termination or invalidity
of said licenses, certificates, permits and authorizations.

 

		(xxiv)	Absence
                                         of employees. The SPV does not have any employee.

 

The
SPV has made all necessary filings and taken all actions required to be made or taken, under applicable social security, labor
and welfare and health and safety Laws (including, without limitations, Laws governing the mandatory employment of disabled employees),
with respect to each of the employees of the SPV whose employment relationship was terminated before the date hereof for any reason
whatsoever (the “Former Employees”). Recourse by the SPV to staff leasing, apprenticeship or internship contracts
has always been made in full compliance with applicable Laws.

 

There
is no liability for unpaid social security and welfare charges due to the Former Employees under applicable Laws and the applicable
bargaining agreements and other agreement or, to the extent such charges were not payable on the REFERENCE DATE, they have been
adequately reserved for in the Financial Statements.

 

There
is no person that, by reason of his relationship with the SPV, can be recognized as having the status of employee (“lavoratore
subordinato”) of the SPV or the recognition of their quality as employees of the SPV. The SPV is not party to or is
otherwise bound by any administrative or judicial ruling pursuant to which it will be obligated to hire, for a definite or indefinite
period of time, personnel and/or to reinstate in its position Former Employees.

 

    	19 

     

    

 

No
Former Employee, director, consultant, agent, business finder person, nor any other person rendering services in any manner whatsoever
to the SPV is entitled to be paid any amount by any of them as a result of the consummation of the transactions set forth in this
AGREEMENT.

 

No
disputes or claims for remuneration adjustments or of any other kind by the Former Employees, or by the relevant trade unions,
or by any other Authority are pending and no such disputes or claims have been threatened in writing.

 

No
Former Employee has any pending action or claim, or has any ground to bring an action or claim against the SPV in relation to
his/her employment relationship.

 

No
accident at work has caused a serious illness or a permanent disability to the affected Former Employee, in the last 5 (five)
years.

 

The
contractual relationships between the SPV, on the one side, and its suppliers (including service suppliers), on the other side,
have been diligently conducted in order to avoid any claim by the suppliers against the SPV regarding the nature of their relationship
and the re–characterization of the same and the remuneration due to the employees of the service suppliers and all social
security and welfare contributions due in connection with the same have regularly paid.

 

		(xxv)	DUE
                                         DILIGENCE Information. The written information and documentation provided by the
                                         SELLER with respect to the SPV and its business for the purposes of the DUE DILIGENCE
                                         investigations conducted on behalf of the BUYER, by its representatives and advisors
                                         is complete in all material respect and does not contain untrue statements under any
                                         and all relevant aspects. Exhibit E contains the documentation (“Due
                                         Diligence Information”) provided by the SELLER with respect to the SPV and
                                         the its business for the purposes of the DUE DILIGENCE investigations.

 

		(xxvi)	Accuracy
                                         of information. The SELLER has not omitted to mention to the BUYER any material facts,
                                         events and circumstances or documents that relate to the SPV, or the shareholdings in
                                         the SPV, which may cause the representations and warranties of the SELLER contained herein
                                         to be inaccurate or untrue.

 

So
far as the SELLER is aware, all data and information contained in this AGREEMENT and in its Exhibits or provided to the BUYER
regarding the SELLER or the SPV are true, complete and correct.

 

The
SELLER agrees and warrants that (i) no document or information delivered in writing to the BUYER for the purposes of, or in connection
with, this AGREEMENT, the negotiations leading to the conclusions thereof and/or the DUE DILIGENCE conducted by the same contained
any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained herein or
therein not misleading in light of the circumstances in which such statements were made, and that (ii) the SELLER has not intentionally
omitted to state or disclose in writing to the BUYER and its advisors all information concerning the SPV, its business, affairs
or operations which, under normal business or financial practices, would be material or relevant in, or for the purpose of, entering
into the transactions contemplated by this AGREEMENT.

 

    	20 

     

    

 

		8.2.	The
                                         BUYER hereby makes the following representations and warranties to the SELLER, each of
                                         which is true and accurate as of the date hereof and will also be so as of the CLOSING
                                         DATE as such representation and warranty had been given on the such date (unless it is
                                         specifically provided for that a representation shall be made as of a different date):

 

		(i)	Authorization.
                                         The BUYER has full power, authority and capacity to enter into and perform this AGREEMENT.
                                         No injunction issued by any court or governmental authority relating to the BUYER in
                                         order to restrain or prohibit the consummation of this transaction contemplated by this
                                         AGREEMENT is presently in effect, and no suit, action or other legal or administrative
                                         proceeding relating to the BUYER is threatened or pending before any court or governmental
                                         agency in which it is sought to restrain or prohibit or to obtain damages or other relief
                                         in connection with this AGREEMENT or the consummation of the transactions contemplated
                                         herein.

 

		(ii)	Existence.
                                         The BUYER is duly organized, validly existing and in good standing under Israeli laws
                                         and as set forth in its by-laws as currently in force.

 

		(iii)	The
                                         BUYER is not insolvent, bankrupt or involved in insolvency, liquidation, bankruptcy or
                                         similar proceedings and has never presented a motion to be included in such procedures.
                                         There are no bankruptcy proceedings or other insolvency proceedings pending against the
                                         BUYER and no bankruptcy, liquidation or similar procedures pending against the BUYER.

 

		(iv)	All
                                         corporate acts and other proceedings required to be taken by or on behalf of the BUYER
                                         to authorize the BUYER to enter into and to carry out this AGREEMENT have been duly and
                                         properly taken, and this AGREEMENT has been duly executed and delivered by the BUYER
                                         and constitutes the valid and binding obligation of the BUYER enforceable against the
                                         BUYER in accordance with its terms.

 

		(v)	The
                                         execution, delivery and performance by BUYER of this AGREEMENT or any other related document
                                         to which BUYER is or will be a party, and the consummation of the transactions contemplated
                                         hereby and thereby, do not and will not conflict with, contravene or result in a violation
                                         or breach of or default under (with or without the giving of notice or the lapse of time
                                         or both): (i) any applicable Law; (ii) the certificate of incorporation or by-laws or
                                         other organizational documents of BUYER; or (iii) any contract, agreement or other instrument
                                         applicable to BUYER or any of its properties or assets, except as would not materially
                                         impair or delay the ability of BUYER to perform its obligations thereunder.

 

		(vi)	BUYER
                                         shall procure, after the CLOSING, exact performance and payment by the SPV within September
                                         30, 2017 of the debts against the ORIGINAL SHAREHOLDERS resulting from the CLOSING FINANCIAL
                                         STATEMENT implementing the off-set transaction as indicated in Section 8.1(ix).
                                         The Parties however acknowledge that payment and performance by the SPV is conditioned
                                         to the occurrence of the event indicated in following Section 12.1(vi).

 

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SECTION
9         INDEMNIFICATION OBLIGATIONS

 

		9.1.	The
                                         SELLER will pay the BUYER the full amount of:

		(a)	any
                                         and all liabilities of the SPV existing at the REFERENCE DATE or arising out of any act,
                                         omission, event or transaction occurred or entered into on or prior to the REFERENCE
                                         DATE or any state of fact existing on or prior to such date and not reflected in the
                                         BALANCE SHEETS and/or in the INTERIM FINANCIAL STATEMENTS and/or in the CLOSING FINANCIAL
                                         STATEMENTS;

		(b)	any
                                         further contingent liability of the SPV which may have materialised or may materialize
                                         after the REFERENCE DATE, in relation to any circumstance or state of facts existing
                                         on or prior to such date;

		(c)	any
                                         deficiencies in the assets or properties of the SPV with respect to those reflected in
                                         the BALANCE SHEETS and/or in the INTERIM FINANCIAL STATEMENTS and/or in the CLOSING FINANCIAL
                                         STATEMENTS;

		(d)	any
                                         and all LOSSES and out-of-pocket expenses and reasonable and documented attorneys’
                                         and accountants’ fees and expenses incurred or suffered by the SPV which would
                                         not have been so incurred and/or suffered if all representations and warranties of the
                                         SELLER contained in this AGREEMENT had been true, correct and accurate;

		(e)	any
                                         and all losses, damages, costs and expenses incurred or suffered by the BUYER which would
                                         not have been so incurred and/or suffered if all representations and warranties of the
                                         SELLER contained in this AGREEMENT had been true, correct and accurate, to the extent
                                         that they are not indemnified under letters (a) to (d) above;

		(f)	any
                                         and all losses, damages, costs and expenses incurred or suffered by the BUYER in connection
                                         with actions, suits, proceedings, demands, assessments, judgments, costs and expenses
                                         (including reasonable attorney’s fees) incident to any of the foregoing.

 

		9.2.	The
                                         PARTIES acknowledge and agree that the BUYER’s determination to purchase the SHARES
                                         is based on the fundamental assumption that the BUYER and the SPV will not suffer or
                                         incur any LOSSES as per the occurrence of any of the indemnification events mentioned
                                         in Section 9.1.

 

		9.3.	Sole
                                         remedy. To the extent permitted by Article 1229 of the ICC, after the occurrence
                                         of the CLOSING the rights and remedies provided in Section 9.1 will be exclusive
                                         and in lieu of any and all other rights or remedies of the BUYER provided by the Law
                                         however arising in connection with, or by virtue of, the occurrence of any indemnification
                                         events mentioned in Section 9.1; in particular, after the CLOSING, no indemnification
                                         event will give rise to any right on the part of the BUYER to rescind or otherwise terminate
                                         this AGREEMENT.

 

		9.4.	De
                                         minimis, threshold and cap. The SELLER will not be liable to the BUYER
                                         under Section 9.1:

 

		(i)	if
the amount due in connection with any single occurrence giving rise to liability pursuant to Section 9.1 does not exceed
EUR 10.000,00 (ten thousands/00), unless the single occurrence giving rise to the SELLER liability is part of a series of occurrences
arising out of the same set of facts totalling with respect to the same subject matter object of the relevant representation;

 

    	22 

     

    

 

		(ii)	until
                                         the aggregate of all amounts that would otherwise be due pursuant to Section 9.1
                                         exceeds EUR 40.000,00 (forty thousand/00), in which case the SELLER liability will be
                                         paid in full

 

it
being agreed that, to the extent permitted by Article 1229 of the ICC, under no circumstances, the aggregate maximum liability
of the SELLER under Section 9.1 will exceed the amount of the PURCHASE PRICE as eventually adjusted pursuant to Section
7 and paid to SELLER.

 

		9.5.	The
                                         limitations to the indemnification obligations of the SELLER under Section 9.4
                                         will not apply to (i) claims of fraud, wilful misconduct or gross negligence on the part
                                         of the SELLER and (ii) claims relating to, or arising out of, the inaccuracy of the representation
                                         and warranties contained in Sections 8.1(i) (Authorization), 8.1(ii) (No conflict),
                                         8.1(iii) (Existence of the SPV), 8.1(iv) (Capitalization), 8.1(v) (Ownership).

 

		9.6.	Deductions. The amount of indemnity to be paid by the SELLER under Section 9.1 will be
                                         reduced by:

		(a)	any
                                         specific reserve amount relating to the event giving rise to indemnification recorded
                                         in the BALANCE SHEETS and/or in the INTERIM FINANCIAL STATEMENTS and/or in the CLOSING
                                         FINANCIAL STATEMENTS;

		(b)	to
                                         the extent that any amount to be paid by the SELLER under Section 9 is deductible
                                         by the SPV or the BUYER (as applicable with respect to the indemnified entity) for income
                                         tax purposes, in the then current fiscal year, then the indemnity due by the SELLER under
                                         Section 9 will be reduced by an amount equal to the positive difference (if any)
                                         between: (i) the tax benefit obtained, in the then current fiscal year, by the SPV or
                                         the BUYER (as applicable) by virtue of such deduction; and (ii) any tax payable by them
                                         in connection with any indemnification amount paid to the same by the SELLER; it being
                                         in any event understood that should there be any uncertainty as to whether a tax benefit
                                         or a tax payable may be obtained or as to the amount of the tax benefit or the tax payable,
                                         that the PARTIES are not able to solve within the term by which the SELLER has to pay
                                         the indemnification according to Section 9.1, then the amount to be indemnified
                                         will be paid in full by the SELLER to the BUYER at the expiration of said term, save
                                         for the right of the SELLER to be reimbursed of an amount equal to the abovementioned
                                         positive difference, if and when it will materialize;

		(c)	any
                                         insurance indemnification payment or any similar indemnification payment that any of
                                         the SPV or the BUYER actually receives in connection with the event giving rise to indemnification;

		(d)	any
                                         indemnification payment that any of the SPV or the BUYER actually receives from any third
                                         party in connection with the event giving rise to indemnification, provided that the
                                         amount of indemnity due will be increased by an amount equal to the costs and expenses
                                         incurred by the SPV or the BUYER in seeking the payment of such amounts; and

		(e)	any
                                         compensation that SPV or the BUYER has received for the loss suffered or incurred by.

 

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		9.7.	Handling
                                         of Claims - If any event occurs which could give rise to the SELLER liability under
                                         Section 9.1, the BUYER will give written notice to the SELLER of such event (the
                                         “Claim Notice”) and the following provisions will apply:

 

		(a)	in
                                         case the claim is not related or connected to any claim, action, suit or proceeding asserted
                                         or initiated by a third party against the SPV (the “BUYER’s Claims”):

		(i)	BUYER,
                                         no later than 30 (thirty) days from the day in which the same becomes aware of any event
                                         in respect of which the SELLER may be liable under Section 9.1, will serve the
                                         Claim Notice upon the SELLER. The Claim Notice shall (i) specify in reasonable detail
                                         the basis on which indemnification is being asserted, (ii) provide a reasonable estimate
                                         of the amount of the LOSSES asserted therein, (iii) specify the provision or provisions
                                         of this Agreement under which such LOSSES are asserted and (iv) include copies of all
                                         notices and documents (including court papers) served on or received by the Indemnified
                                         Party from such third party; and (v) provide the amounts the payment of which is requested
                                         by the BUYER in connection therewith;

		(ii)	within
                                         20 (twenty) BUSINESS DAYS of the receipt of a Claim Notice, the SELLER will give written
                                         notice to the BUYER whether it intends to allow or to challenge the BUYER’s Claim,
                                         setting forth in reasonable detail the reasons thereof;

		(iii)	should
                                         the SELLER:

-       fail
to give such notice within the term provided for in Section 9.7(a)(ii); or

-       expressly
admit the BUYER’s Claim;

then
the BUYER’s Claim will be deemed finally acknowledged and recognized by the SELLER as due to the BUYER and the amount so
claimed by the BUYER will become immediately payable;

		(iv)	if
                                         a notice of disagreement is delivered pursuant to Section 9.7(a)(ii), the SELLER
                                         and the BUYER will attempt for a period of 20 (twenty) BUSINESS DAYS to resolve any differences
                                         that they may have with respect to any matters constituting the subject matter of such
                                         notice. If, at the end of such period, the SELLER and the BUYER fail to reach an agreement
                                         in writing with respect to all matters of disagreement, then all matters as to which
                                         agreement is not so reached may, thereafter, be submitted to competent court pursuant
                                         to Section 12.9;

		(b)	if
                                         the Claim is the result of a claim, action, suit or proceedings asserted or initiated
                                         by a third party against the SPV (“Third Parties’ Claims”),
                                         in addition to the procedure set out in Section 9.7(a):

		(i)	the
                                         SELLER will have the right to participate, and, to the maximum extent permitted by Law,
                                         join, at its cost, by counsel or counsels of its choosing, in the defence of any Third
                                         Parties’ Claim constituting the subject matter of the relevant Claim Notice;

		(ii)	the
                                         SPV and the BUYER will procure that the SPV will cooperate with the SELLER, for so long
                                         as the SELLER is participating in the defence of such Third Parties’ Claim, including
                                         making available evidence within the control of the SPV and keeping the SELLER timely
                                         informed of all facts, circumstances and documents that regard or are connected to such
                                         Third Party Claim.

 

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		9.8.	The
                                         BUYER shall use its reasonable endeavour to (i) attempt to mitigate any LOSSES with respect
                                         to which it may be entitled to seek indemnification pursuant to this AGREEMENT and (ii)
                                         obtain or cause to be obtained all insurance proceeds or other payments from third parties,
                                         and all tax refunds or other tax benefits, that are available with respect to any LOSSES
                                         with respect to which it is entitled to indemnification under this AGREEMENT.

 

		9.9.	Payments. All payments to be made pursuant to Section 9 will be made by the SELLER within
                                         10 (ten) BUSINESS DAYS from the latter of: (i) the date on which the term referred to
                                         in Section 9.7(a)(ii) has expired, if the Claim Notice has not been challenged
                                         by the SELLER pursuant to that Section or the date on which the SELLER have acknowledged
                                         and accepted the Claim Notice pursuant to Section 9.7(a)(ii); or (ii) the date
                                         on which any matters contained in the Claim Notice challenged by the SELLER has been
                                         finally agreed upon between the PARTIES in writing pursuant to Section 9.7(a)(iv);
                                         or (iii) the date on which a decision has been issued in accordance with Section 12.9.

 

		9.10.	Survival
                                         of Representations and Warranties. Except for claims for indemnification relating
                                         to representations in Sections 8.1 (i), 8.1 (iii), 8.1 (v), 8.1(xii), 8.1(xix), 8.1(xxiv)
                                         and 8.2 (i), 8.2 (ii), for which claims must be asserted in writing on or
                                         prior to the fifth (5th) anniversary of the CLOSING DATE, all claims for indemnification
                                         under Sections 8.1 and 8.2 with respect to the representations and warranties
                                         contained herein must be asserted in writing on or prior to twenty four (24) months after
                                         the CLOSING DATE.

 

SECTION
10         ACTIONS AND CONDUCT OF THE SPV UNTIL CLOSING

 

		10.1.	Operation
                                         of the Business. During the period from the execution of this AGREEMENT until the
                                         CLOSING DATE, the SELLER shall cause the SPV to conduct its business in good faith, in
                                         compliance with all applicable laws, regulations and administrative authorizations and
                                         only in the ordinary course of business. In particular, the SELLER covenants and agrees
                                         that during such period the SPV will not, without the BUYER’s previous written
                                         consent:

		(a)	increase
                                         or decrease the corporate capital, except for the necessity to meet minimum capital requirements
                                         provided for by Italian law by utilizing SELLER’s outstanding trade receivables
                                         towards each relevant SPV, for which BUYER’s already expresses its consent;

		(b)	issue
                                         any debt instruments or execute any notes or other evidences of indebtedness;

		(c)	solicit
                                         or cause its representatives to solicit, directly or indirectly, any inquiries or proposals,
                                         participate, directly or indirectly, in any negotiations or discussions, or provide,
                                         directly or indirectly, any information, concerning the sale of any of the SHARES or
                                         of all or any portion of the SPV’ business;

		(d)	cause
                                         or permit any material change in the financial condition, properties, assets, obligations,
                                         commitments, operations or prospects of the SPV (other than changes in the ordinary course
                                         of business) or any other event or condition of any nature that, individually or in the
                                         aggregate, has been or will be adverse to the financial condition, properties, assets,
                                         obligations, commitments, operations or prospects of the SPV or to its business;

		(e)	cause
                                         or permit any change in the SPV’s accounting system employed in preparing its previous
                                         financial statements;

		(f)	cause
                                         or permit the SPV, directly or indirectly, to declare, reserve, set aside, or pay any
                                         dividend or other distribution, or cause or permit any split, combination, reclassification,
                                         redemption, purchase or other acquisition with respect to any SHARE or any option to
                                         purchase the SHARE;

 

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		(g)	cause
                                         or permit any sale, transfer, or other disposition (including, without limitation, any
                                         direct or indirect creation, assumption or permitting of the existence of any mortgage,
                                         pledge, deposit, conditional sale, lease or title retention) including, without limitation,
                                         any sale, transfer or other disposition between the SPV and the SELLER or any company
                                         participated by the SELLER, other than:

		1)	purchases
                                         of materials in the ordinary course of business; and

		2)	contingent
                                         liabilities arising out of the endorsement in the ordinary and normal course of the business
                                         of negotiable instruments in the course of collection;

		(h)	cause
                                         or permit any joint venture, merger or consolidation of the SPV with any other company,
                                         or any corporate action by the SPV effecting a complete or partial liquidation or dissolution;

		(i)	cause
                                         or permit any amendment or modification (or agreement relating thereto) of the by-laws
                                         of the SPV;

		(j)	cause
                                         or permit any changes in the manner of conducting the SPV business;

		(k)	grant
                                         a remuneration, or authorize or pay any bonus or other benefit or cause or permit the
                                         SPV to make any loan or advance to any former or current consultants, director of the
                                         SPV;

		(l)	make
                                         or enter into any agreement or other commitment for any expenditures for capital assets
                                         and other than for ordinary and routine maintenance and repairs, which maintenance and
                                         repair expenditures are not required to be capitalized;

		(m)	permit
                                         or cause the SPV to enter into any transaction not disclosed in, or contemplated by,
                                         this AGREEMENT (including, without limitation, any contingent obligations of the SPV
                                         by way of guaranty, endorsement, indemnity, warranty or otherwise) other than in the
                                         ordinary and normal course of the business;

		(n)	make
                                         any payments to, or grant any future benefits to, or transfer any assets to, or assume
                                         any liabilities for the benefit of the SELLER;

		(o)	enter
                                         into any agreement or commitment to do any of the actions set out in this Section.

 

		10.2.	Permitted
                                         acts. From the date of this AGREEEMENT until the CLOSING DATE, the SELLER and the
                                         SPV may - despite any other provisions in this AGREEMENT and giving a five-days prior
                                         written notice to the BUYER – do or omit to do anything that the SELLER or the
                                         SPV, in their sole discretion, consider appropriate or necessary in relation to the assets
                                         or the business which: (a) is a reasonable response to an existing or pending emergency
                                         or disaster; (b) is necessary to meet its legal or contractual obligations; or (c) involves
                                         the expiry of any Contract or the termination of any Contract by a counterparty to that
                                         agreement, provided that the SELLER or the SPV shall be liable for such an activity.

 

SECTION
11        CERTAIN CLOSING UNDERTAKINGS 

 

		11.1.	SELLER
                                         will procure that at Closing the SPV and/or the SPV external accountants and consultants
                                         deliver to BUYER’s designated director of the SPV, all SPV official documents,
                                         corporates books, accounting ledgers, correspondence, banking documents, internet banking
                                         credentials, GSE access credentials, credentials required to access the SPV official
                                         certified mail box and in general all documents, passwords and information necessary
                                         to continue the regular activity and management of the SPV.

 

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SECTION
12         POST CLOSING ACTIVITIES 

 

		12.1.	Further
                                         to the actions better described in Section 7, the Parties shall perform the following
                                         actions:

		i.	the
                                         BUYER will cause the SPV to perform exactly and pay within 30 September 2017 the payables
                                         towards the ORIGINAL SHAREHOLDERS resulting from the CLOSING FINANCIAL STATEMENT after
                                         the operation of the set-off indicated in Section 8.1(ix) and with the exception
                                         of the ORIGINAL SHAREHOLDER LOAN;

		ii.	with
                                         regard to the part of the ORIGINAL SHAREHOLDER LOAN equal to Euro 100,000.00 regarding
                                         the amount of the claim towards ALLIANZ (Ref. Aon 2017/0018668 for direct damages
                                         and AON RIF. 2017/0018676 for indirect damages) (the “ALLIANZ SHAREHOLDER LOAN
                                         PORTION”), the BUYER will cause the SPV to pay back to Futuris S.r.l. as reimbursement
                                         of the ALLIANZ SHAREHOLDER LOAN PORTION the amount of the ALLIANZ claim liquidated by
                                         the insurance company within 10 days from its payment to the SPV by ALLIANZ. In the event:
                                         A) the amount liquidated and paid by ALLIANZ for the claim is lower than the ALLIANZ
                                         SHAREHOLDER LOAN PORTION, the payment of such amount by BUYER shall be considered as
                                         full payment of the ALLIANZ SHAREHOLDER LOAN PORTION and Futuris S.r.l. shall waive the
                                         remaining balance of the ALLIANZ SHAREHOLDER LOAN PORTION; B) SPV has not received any
                                         payment from ALLIANZ with regard to the claim within 24 months from CLOSING DATE, Futuris
                                         S.r.l. shall waive the ALLIANZ SHAREHOLDER LOAN PORTION;

		iii.	with
                                         regard to the part of the ORIGINAL SHAREHOLDER LOAN equal to Euro 80,000.00 (equal to
                                         the net receivables pertaining to the white certificates or “TEE”) (the “TEE
                                         SHAREHOLDER LOAN PORTION”), the BUYER will cause the SPV to pay back to Futuris
                                         S.r.l. as reimbursement of the TEE SHAREHOLDER LOAN PORTION the amount cashed in connection
                                         with the TEE within 10 days from its payment to the SPV. In the event that the SPV has
                                         not received any payment with regard to the TEE within 24 months from CLOSING DATE, Futuris
                                         S.r.l. shall waive the TEE SHAREHOLDER LOAN PORTION;

		iv.	BUYER
                                         shall cause the SPV to keep the SELLER and Futuris S.r.l. informed in writing in a timely
                                         manner (and within 10 days from the occurrence of any relevant event) regarding the cash-in
                                         of (i) TEE receivables and (ii) the ALLIANZ claim;

		v.	SELLER
                                         and Futuris S.r.l. shall keep the SPV and the BUYER harmless and indemnify them from
                                         any and all consequences deriving or that may be originated to them in connection with
                                         the share participation held by the SPV in KOMAROS AGRICULTURA S.r.l. – a Romanian
                                         company with offices in Timisoara, Str. Patriarh Miron Cristea 13 E (the “KOMAROS
                                         PARTICIPATION”) until when the KOMAROS PARTICIPATION is transferred. The indemnification
                                         provided for herein is a full indemnification not subject to the limits, terms and conditions
                                         provided for in Section 9 and it will cover any cost incurred or that may be incurred
                                         by the SPV and/or the BUYER in connection or related to the transfer of the KOMAROS PARTICIPATION,
                                         including without limitation notarial and legal fees, taxes and stamp duties;

		vi.	after
                                         the CLOSING DATE and until December 31, 2017 the SPV shall, and the BUYER shall cause
                                         the SPV, to promptly inform Futuris S.r.l. and SELLER of any shareholders’ meeting
                                         of KOMAROS AGRICULTURA S.r.l. so that they can exercise the voting rights by virtue of
                                         the power of attorney granted under following Section 12.1 (vi) in good faith and with
                                         the aim to execute the transfer of the KOMAROS PARTICIPATION;

 

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		vii.	within
                                         5 days from the CLOSING DATE the SPV shall, and the BUYER shall cause the SPV to, grant
                                         an irrevocable and notarized special power of attorney with an expiration date as of
                                         31 December 2017 granting to the:

		(a)	legal
                                         representatives of Futuris S.r.l., on an exclusive basis, all the rights pertaining and/or
                                         connected to the KOMAROS PARTICIPATION and to the quality of shareholders of KOMAROS
                                         AGRICULTURA S.r.l. by the SPV (including all voting rights);

		(b)	legal
                                         representatives of Futuris S.r.l. all the powers necessary or advisable to freely negotiate
                                         the terms and conditions of the sale of the KOMAROS PARTICIPATION to any party selected
                                         by the same (and same Futuris S.r.l.), including without limitation to establish the
                                         purchase price, and to execute in the name and on behalf of the SPV any deed required
                                         or necessary to transfer the KOMAROS PARTICIPATION within 30 September 2017;

		(c)	legal
                                         representatives of Futuris S.r.l. and of the SELLER, on a jointly and several basis,
                                         to perform the activities under point (b) above starting from the date of 5 September
                                         2017.

		viii.	upon
                                         performance of the activities under 12.1(vii) the SELLER, either directly or indirectly,
                                         shall procure the sale of the KOMAROS PARTICIPATION (the “KOMAROS SALE”)
                                         to itself or third parties, being however agreed that neither the SPV nor the BUYER will
                                         give any guaranty whatsoever in connection with the KOMAROS SALE;

		ix.	should
                                         the KOMAROS SALE not take place within September 30, 2017, all payments to be made by
                                         the SPV to the SELLER provided for in Section 8.2.(vi) shall be suspended until
                                         when the KOMAROS SALE is consummated, provided that SPV complied with Section 12.1 (vii)
                                         above.

 

SECTION
13        GENERAL PROVISIONS

 

		13.1.	Method
                                         of Payment. All payments to be made by one PARTY to the other pursuant to this AGREEMENT
                                         shall be made in immediately available funds by wire transfer to the bank account that
                                         has to indicated designated by the PARTY entitled to receive the relevant payment at
                                         least 5 (five) BUSINESS DAYS prior to the date on which the payment is due.

 

		13.2.	Confidentiality.
                                         Each PARTY hereto will hold, and will use its commercially reasonable efforts to cause
                                         its respective representatives and advisers to hold, in confidence from any person (other
                                         than its representatives or advisers, in connection with this AGREEMENT, and with a demonstrable
                                         need-to-know), (i) unless compelled to disclose by judicial or administrative
                                         process or by other requirements of law or regulations derived there from (including
                                         without limitation any disclosure required under applicable regulations in particular
                                         any stock exchange regulations), or (ii) unless disclosed in an action or proceeding
                                         brought by a PARTY hereto in pursuit of its rights or in the exercise of its remedies
                                         hereunder, all documents and information, whether oral or written, concerning the other
                                         PARTY or any of its affiliates furnished to it by such PARTY or its representatives and
                                         advisers in connection with this AGREEMENT or the transactions contemplated hereby, except
                                         to the extent that such documents or information can be shown to have been:

 

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		(a)	previously
                                         known by the PARTY receiving such documents or information without an obligation of confidentiality;

		(b)	in
                                         the public domain (either prior to or after the furnishing of such documents or information
                                         hereunder) through no fault of such receiving PARTY;

		(c)	later
                                         acquired by the receiving PARTY from another source if the other source is not under
                                         an obligation to another PARTY hereto to keep such documents and information confidential;
                                         or

		(d)	independently
                                         developed by the receiving PARTY without the use of the other PARTY’s confidential
                                         information,

provided,
however, that following the CLOSING the foregoing restrictions will not apply to the BUYER’s use of documents and information
concerning the SPV furnished by the SELLER hereunder.

 

In
the event the transactions contemplated hereby are not consummated, upon the request of the other PARTY, each PARTY hereto will,
and will cause its respective representatives and advisers to, promptly (and in no event later than 5 (five) BUSINESS DAYS after
such request) destroy or cause to be destroyed (such destruction certified in writing) or return or cause to be returned all copies
of documents and information furnished by the other PARTY in connection with this AGREEMENT or the transactions contemplated hereby.
As an exception to the above, a copy of such documents and information may be kept to the extent required to comply with any applicable
recording and/or retention mandatory provisions of law.

 

In
the event of any breach of this Section, the PARTIES acknowledge that the non-breaching PARTY may suffer irreparable harm which
is difficult to calculate and therefore the relevant damages may be an inadequate remedy. Accordingly, the PARTIES agree that
the non-breaching PARTY shall be entitled to seek temporary and permanent injunctive relief which may be available against the
breaching PARTY and its affiliates, and the other rights and remedies to which the non-breaching PARTY may be entitled to at law,
in equity and under this AGREEMENT.

 

The
foregoing confidentiality obligations shall survive the termination or the consummation of the transactions contemplated hereby
for a period of 3 (three) years thereafter.

 

The
PARTIES within 5 (five) days from the execution of this AGREEMENT and, afterwards, from the CLOSING shall agree on a common text
of a press release regarding the transaction.

 

		13.3.	Costs
                                         and expenses. Except as otherwise provided in this AGREEMENT, each of the PARTIES
                                         hereto shall pay its own expenses incident to the preparation, signature and performance
                                         of this AGREEMENT, whether or not the transactions contemplated herein are consummated.
                                         Stamp duty and notarial fees and costs relating to the transfer of the SHARE shall be
                                         borne by the BUYER.

 

		13.4.	Entire
                                         Agreement. This AGREEMENT, including the DEED OF TRANSFER, embodies the entire agreement
                                         between the PARTIES hereto and supersedes all prior agreements, negotiations, offers
                                         and undertaking of the PARTIES with respect to the transaction contemplated herein. Except
                                         for the DEED OF TRANSFER, there have been and are no arrangements or warranties between
                                         the PARTIES other than those set forth or provided for herein. This AGREEMENT may be
                                         amended only in writing through a document duly signed by the BUYER and the SELLER.

 

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		13.5.	Notices.
                                         All notifications to be made on the basis of this AGREEMENT must be sent in writing by
                                         registered letter with return receipt anticipated by email to the following addresses:

			If
                                         to the SELLER:

Pronto-Verde
AG 

[ 
]

 

			If
                                         to the BUYER:

Blue
Sphere Corp. 

[
 ]

 

or
to the different addresses subsequently communicated in writing by one PARTY to the other PARTY.

 

A
PARTY may notify the other PARTY of a change to its name, relevant addressee, address or fax number for the purposes of this clause,
provided that such notice shall only be effective on: (i) the date specified in the notification as the date on which the
change is to take place; or (ii) if no date is specified or the date specified is less than 5 (five) BUSINESS DAYS after
the date on which notice is given, the date following 5 (five) BUSINESS DAYS after notice of any change has been given.

 

Notices
shall be deemed to have been received on the date of transmission of the facsimile, as indicated in the facsimile confirmation
report.

 

In
proving service, it shall be sufficient to prove that the envelope containing such notice was properly addressed and delivered
to the address shown thereon, and that the facsimile transmission was made and a facsimile confirmation report was received, as
the case may be.

 

		13.6.	Waiver.
                                         Any waiver by a PARTY at any moment or for any period of time of any provision of this
                                         AGREEMENT shall not be construed by the other PARTIES as a renunciation of said provisions
                                         or rights, which may be enforced at any subsequent moment.

 

		13.7.	Assignment.
                                         Neither PARTY may assign any of its rights, title or interest under this AGREEMENT without
                                         the prior consent of the other parties, except that the BUYER shall always be entitled
                                         to assign, with no SELLER consent being required, any of the BUYER’s rights arising
                                         out of this AGREEMENT (including those arising from the indemnification provisions) to
                                         a company controlled by the BUYER. Subject to the preceding sentence, this AGREEMENT
                                         will apply to, be binding in all respects upon, and incur to the benefit of the successors
                                         and permitted assignees of the PARTIES.

 

		13.8.	Governing
                                         Law and Language. The construction, validity and performance of this AGREEMENT shall
                                         be governed by the Laws of Italy. The AGREEMENT may be translated into any language other
                                         than the English language, provided, however, that, for all purposes, the English language
                                         text of the AGREEMENT shall prevail.

 

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		13.9.	Exclusive
                                         jurisdiction. The PARTIES hereby submit to the exclusive jurisdiction of the Court
                                         of Milan (Italy) any legal suit, action or proceeding arising out of, or in connection
                                         with, this AGREEMENT which must or may be instituted before a court of justice.

 

		13.10.	Announcements.
                                         Each of the PARTIES to this AGREEMENT hereby agrees with the other PARTIES that, except
                                         as required to comply with the requirements of mandatory provisions of law, no press
                                         release or similar public announcement or communication will be made or caused to be
                                         made concerning the execution or performance of this AGREEMENT unless specifically approved
                                         in advance by the BUYER, in its sole discretion.

 

		13.11.	Several
                                         liability. Anything to the contrary in this AGREEMENT or in any applicable law notwithstanding,
                                         SELLER shall be liable against the BUYER under this AGREEMENT and for any liability or
                                         obligations set forth hereunder.

 

		13.12.	Binding
                                         Effect. This AGREEMENT shall be binding upon and inure to the benefit of the PARTIES
                                         and their respective heirs, successors and permitted assigns.

 

IN
WITNESS THEREOF, the PARTIES hereto have signed this AGREEMENT and its Exhibits on June 29, 2017 in Milan.

 

	/s/
    Mr. Shlomo Palas	 	/s/
    Mr. Giovanni Di Vincenzo
	BLUESPHERE CORP.	 	PRONTO VERDE AG
	Mr. Shlomo Palas	 	Mr. Giovanni Di Vincenzo

 

    	31

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