Document:

Exhibit 10.3

  

AMENDED AND RESTATED
CONSTRUCTION FINANCING AGREEMENT

 

THIS AMENDED AND RESTATED
CONSTRUCTION FINANCING AGREEMENT, dated as of June 6, 2014, is effective as of October 29, 2013 (the “Effective
Date”) and is by and between Orbit Energy Charlotte, LLC, a North Carolina limited liability company (“Borrower”),
and Caterpillar Financial Services Corporation, a Delaware corporation (“Lender”). Capitalized terms
used in the following recitals without definition shall have the meanings ascribed thereto in Article I hereof.

 

RECITALS:

 

WHEREAS, Borrower desires for Lender
to provide certain financing to Borrower in connection with the design, construction and completion of the Project;

 

WHEREAS, Lender,
Borrower and Tipping, LLC, a Delaware limited liability company and Affiliate of Borrower that no longer has any interest in the
Project (“Tipping”), entered into that certain Construction Financing Agreement, dated as of October
29, 2013, as amended by that certain First Amendment to Construction Financing Agreement, entered into and effective as of January
31, 2014, and that certain Second Amendment to Construction Financing Agreement, entered into and effective as of April 1, 2014,
together with that certain Initial Preliminary Items Agreement, dated as of October 29, 2013 (the foregoing documents shall be
referred to, together with all Exhibits and Schedules attached thereto, as the “Original CFA”);

 

WHEREAS, the Original
CFA, by its terms, expressly required an amendment thereto or an amendment and restatement thereof and Borrower and Lender desire
to so amend and restate the Original CFA and to make the other agreements set forth herein;

 

WHEREAS, this Agreement
establishes a facility that contemplates two phases, the first of which shall be a construction phase during which Advances shall
be made in accordance with the terms hereof and the Construction Note;

 

WHEREAS, upon Power
Substantial Completion of the Project and the satisfaction of certain other terms and conditions hereunder, the second phase of
the facility will commence whereby the Construction Note shall be replaced with the Term Note in accordance with the terms hereof;
and

 

WHEREAS, Borrower,
Pledgor and Lender have entered into, or shall enter into, certain Security Documents pursuant to which Borrower or Pledgor, as
applicable, have granted, or will grant, to Lender certain Liens on, and other rights to, Borrower’s interests in the Land,
the Project and other Collateral, and Pledgor’s ownership and other interest in Borrower, in each case, as security for the
Obligations of Borrower.

 

NOW, THEREFORE,
in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Borrower and Lender hereby agree as follows:

 

ARTICLE I

Definitions

 

Capitalized terms used
in this Agreement and the other Transaction Documents without definition, including in their respective preambles and recitals,
shall have the meanings provided in Appendix A unless the context clearly requires otherwise. Unless otherwise specified,
all accounting terms used herein and in any other Transaction Document shall be interpreted, all accounting determinations and
computations hereunder or thereunder shall be made, and all financial statements required to be delivered hereunder or thereunder
shall be prepared in accordance with GAAP.

 

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ARTICLE II

Commitment Fee; Required
Equity; Advances; Retainage; Construction Note Interest Rate;

Credit Spreads; Taxes;
Required Accounts; Control Agreement;

Security Interest; Term;
Prepayment; Financial Model

 

Section 2.01.
Commitment Fee. Lender acknowledges receipt of the Commitment Fee and Borrower acknowledges and agrees that the entire
Commitment Fee is deemed earned by Lender.

 

Section 2.02. Equity Investment;
Debt Investment; Project Costs.

 

		(a)	Required Equity Investment. Prior to the date of the first Advance and continuing
until the Conversion Date, Borrower’s Equity Investment (as hereinafter defined) must be equal to at least the product
of the Required Equity Percentage multiplied by the then-current Estimated Project Costs for the Project. As used herein, Borrower’s
“Equity Investment” at any one time means the sum of the Project Costs previously paid by Borrower (including
any amount being paid concurrently with submission of an application for an Advance but excluding any amounts in the Contingency
Reserve Account); provided, however that the funds used by Borrower to pay such Project Costs shall not have been obtained by Borrower
pursuant to any loans or other arrangements evidencing Indebtedness of Borrower. Borrower shall promptly notify Lender if Borrower
believes changes should be made to the Estimated Project Costs for any reason, including changes in current or future anticipated
expenditures. Any such notification shall set forth in reasonable detail the amount and calculations of any such changes. Without
limiting the foregoing, it is expressly agreed that Lender may require an analysis by Lender’s Engineer of the Estimated
Project Costs at any time, but not more often than monthly. If Lender’s Engineer certifies, following consultation with Borrower,
that a change to the Estimated Project Costs is necessary to accurately reflect anticipated or required modifications to the Project
Costs, Lender may require such changes. In the event of such modification of Estimated Project Costs: (i) the amount of the “Estimated
Project Costs” shall thereafter be deemed to be the modified number; (ii) if the Estimated Project Costs have increased:
(A) the Maximum Debt Percentage shall be deemed to be decreased to an amount equal to the Maximum Loan Amount divided by such revised
Estimated Project Costs, and (B) the Required Equity Percentage shall be deemed to be increased to an amount equal to One Hundred
Percent (100%) minus the revised Maximum Debt Percentage; and (iii) if the Estimated Project Costs have decreased, there shall
be no change in the Required Equity Percentage or Maximum Debt Percentage. Without limiting the foregoing, and notwithstanding
anything to the contrary herein: (1) in the event the remaining total costs of completing the Project at any time exceeds the remaining
amount Lender would be required to advance pursuant to Section 2.02(b) hereof as a result of an increase in Estimated Project Costs
(such amount being referred to herein as an “Equity Investment Deficiency”): (a) the Equity Investment
required from Borrower shall be automatically increased by the amount of such Equity Investment Deficiency; and (b) Lender shall
not be required to make any further Advances until such time as Borrower increases its Equity Investment accordingly; and (2) in
the event that, at any time, the Debt Investment (as defined in Section 2.02(b) below) exceeds the Maximum Loan Amount, Borrower
shall, within three (3) Business Days of its receipt of written notice from Lender, pay to Lender an amount equal to such difference
(without premium or penalty).

 

		(b)	Maximum Debt Investment. Notwithstanding
anything to the contrary in this Agreement or any related Transaction Document and without in any way limiting Borrower’s
obligations above with respect to the Equity Investment, it shall be an additional condition precedent to any Advance or release
of any Retainage that Lender’s Debt Investment (as hereinafter defined) never exceed the lesser of the Maximum Loan Amount;
or (ii) the product of the Maximum Debt Percentage multiplied by the then-current Estimated Project Costs. As used herein, the
“Debt Investment” means an amount calculated by Lender to be equal to the sum of: (A) the total of all
Advances made by Lender hereunder; (B) interest accrued and unpaid under the Construction Note; (C) the amount of the Debt Service
Reserve Required Balance estimated by Lender to be advanced into the Debt Service Reserve Account as a condition to Conversion;
(D) any other amounts owed by Borrower to Lender (or estimated by Lender to be owed prior to the anticipated Conversion Date) under
Section 13.10 or otherwise; and (E) the amount of any Retainage withheld by Lender (or estimated to be withheld prior to the anticipated
Conversion Date) to be disbursed in accordance with Section 4.03 hereof.

 

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Section 2.03. Advances; Retainage.

 

		(a)	Generally. Subject to the applicable progress of the work performed
as of the date for such Advance in the specific breakdown amounts, and as detailed in, the applicable Schedule of Values,
Lender shall make Advances to: (i) EPC Contractor, The Austin Company, Equipment Dealer, vendors of the Equipment and other Materials
and other applicable payees for the account of Borrower; and (ii) Borrower as reimbursement for Project Costs subject to proof
of payment satisfactory to Lender. All Advances are subject to the approval of Borrower, Lender and Lender’s Engineer. Without
limiting the foregoing, Borrower expressly agrees: (A) that Lender may elect to pay invoices from, or amounts due to, Equipment
Dealer, Caterpillar Inc., an authorized dealer of Caterpillar equipment, The Austin Company, or the seller of the Land, directly
to such parties rather than to EPC Contractor or any other Person; and (B) to notify Lender, at the time of any application for
an Advance, of any invoices from the Persons described in subsection (A) above that are related to such application. The proceeds
of each Advance shall be used solely for the payment of Project Costs. All Advances shall be made in accordance with American Institute
of Architects standards, where applicable, or as otherwise approved by Lender.

 

		(b)	Retainage. Unless otherwise agreed by Lender, at the time of
each Advance, Lender shall withhold from each Advance to EPC Contractor or The Austin Company an amount (each, a “Retainage”)
equal to ten percent (10%) of the Project Costs for which such Advance is requested. The Retainage will be disbursed pursuant to
Section 4.03.

 

		(c)	Application. Each application for
an Advance: (i) shall be supported by a pay proceeds letter, in the form attached as Exhibit I, executed
by a representative of Borrower duly authorized to request Advances under this Agreement; (ii) shall include a written application
and payment request, in form and substance satisfactory to Lender and Lender’sEngineer (which may include forms AIA G702
and 703 promulgated by the American Institute of Architects) that is executed by a representative of EPC Contractor; and (iii)
shall be supported by such evidence as Lender shall reasonably require, including monthly progress photos, periodic status reports
and a monthly updated construction schedule and supporting documentation from applicable Subcontractors. Advance requests submitted
by Borrower shall be deemed to constitute Borrower’s approval of such requestedAdvance and, for purposes hereof, the work
related thereto. Lender reserves the right to change the forms required for Advances at any time upon prior written notice to Borrower.
Borrower acknowledges and agrees that any Person listed on Schedule 4 to this Agreement is a representative of Borrower
duly authorized to request Advances under this Agreement. Advances may not be requested more than once per calendar month. All
applications for Advances and supporting documentation must be provided at least seven (7) Business Days prior to the date of the
Advance unless waived by Lender in each instance. Each application for an Advance shall be sent by Borrower to the office of Lender,
at the following address: Caterpillar Financial Services Corporation, 2120 West End Avenue, Nashville, TN 37203 Attention: Credit
Manager, Cat Power Finance – Americas, or in such other manner or to such other address designated by Lender in writing from
time to time (which may include, at Lender’s option, submission by electronic means such as electronic mail or facsimile).
Borrower shall apply only for Advances for work that has been completed, and as provided for in the Schedule of Values. Without
limiting the foregoing, it is expressly agreed that Borrower shall not apply for Advances, and Lender shall not have any obligation
to make any Advances, for any Project Element in an amount that: (A) causes the expenditures for that Project Element to exceed
its Scheduled Value (plus any unused portion of the applicable contingency set forth as a Scheduled Value); or (B) exceeds the
value of the applicable progress of the work performed as of the date stated in the Advance with respect to such Project Element.

 

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		(d)	Lender Approvals. The making of any Advance by Lender shall not
constitute or be interpreted as (i) an approval or acceptance by Lender of the work done that is the subject of the Advance
or through the date of the Advance, (ii) a certification that any progress has been achieved or (iii) a representation, warranty
or indemnity by Lender to any Person as to the nature of the Project, its construction, the achievement of any condition to funding
or the Equipment’s or Materials’ intended use or against any deficiency or defect in the work or against any breach
of any contract. The exercise by Lender or Lender’s Engineer of rights of inspection, approval, or inquiry granted to Lender
in this Agreement, including any inspections and approvals of the Support Documents, the Financial Model, the Operating Plan, the
Borrower Operating Budget, the Schedule of Values, the EPC Agreement and the other Construction Documents, the Permits and Related
Rights, the workmanship and materials used in completion of said Project, the certificates and other evidence adduced to prove
the achievement of any condition to funding or of the Project itself, are acknowledged to be solely for the protection of Lender’s
interests under this Agreement, and under no circumstances shall they be construed to impose any responsibility or liability of
any nature whatsoever on Lender to any Person (it being expressly agreed that neither Lender nor Lender’s Engineer be deemed
to have made any express or implied representation or warranty with respect to the foregoing).

 

		(e)	Evidence of Indebtedness. Each Advance shall be evidenced by
the Notes and one or more accounts or records maintained by Lender in the ordinary course of business, including an account
on the books or systems of Lender in which will be recorded the Advances, interest applicable thereto, certain other payment Obligations
of Borrower under this Agreement with respect to such Advances, and other appropriate debits and credits as provided herein. The
accounts or records maintained by Lender shall be conclusive evidence, absent manifest error, of the amount of Indebtedness of
Borrower to Lender, including the interest rates applicable thereto. Any failure to so record or any error in doing so shall not,
however, limit or otherwise affect the obligation of Borrower hereunder to pay any amount owing with respect to the Obligations.

 

		(f)	Notice of Events Relating to
                                         Article VI Representations. If, after making an application for an Advance, Borrower
                                         obtains knowledge of any event or occurrence that would have constituted a breach of
                                         a representation or warranty set forth in Article VI hereof if Borrower had knowledge
                                         thereof at the time it made such application: (i) Borrower shall immediately notify Lender;
                                         and (ii) without limiting Lender’s other rights and remedies, Lender may elect
                                         in its discretion not to make such Advance.

 

Section
2.04. Construction Note. In consideration of any and all Advances made by Lender hereunder, Borrower agrees to pay to
Lender, in accordance with the terms of the Construction Note, the amount of the Advances together with interest and all other
amounts due thereunder. All interest shall be computed on the basis of actual days elapsed and a year of three hundred sixty (360)
days and shall be due and payable on a monthly basis during the term of the Construction Note (from cash from an addition to Equity
funded by a source other than Retained Earnings). Interest shall accrue on each Advance at a floating rate which shall be equal
to the sum of the Base Rate plus the Applicable Construction Loan Margin, in each case calculated by Lender not more than seven
(7) Business Days prior to the date of such Advance. Once set for a particular Advance, the Applicable Construction Loan Margin
shall remain fixed for such Advance during the entire term of the Construction Note unless adjusted by Lender due to a Market Disruption
Event as set forth in Section 7.16. The Base Rate for an Advance shall be reset on each Reset Date during the term of the Construction
Note as set forth in the definition of the Base Rate.

 

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Section
2.05. Determining the Applicable Construction Credit Spread Adjustment and the Applicable Term Credit Spread Adjustment.
The financial institutions that act as agents for Lender’s United States Medium Term Note program shall be deemed
to be acceptable sources for all indicative pricing quotations used in determining the Construction Credit Spread Adjustment and
the Term Credit Spread Adjustment. Notwithstanding the foregoing, Lender shall utilize only such indicative pricing quotations
that Lender in its sole discretion deems to be consistent with then-applicable market conditions. Lender will occasionally combine
actual debt issuance credit spreads with a representative indicative pricing quotation to determine the Construction Credit Spread
Adjustment or the Term Credit Spread Adjustment. Upon written request, Lender shall provide Borrower with the Construction Credit
Spread Adjustment or the Term Credit Spread Adjustment used to calculate the interest rate applicable to Advances under the Notes.

 

Section
2.06. Taxes. Borrower shall be responsible for, and shall promptly pay and discharge, all Taxes, fees and assessments
that may be payable by or imposed upon Borrower, Lender or the Project, including any of the foregoing arising out of any Advance
or any Transaction Document. Without limiting the foregoing, it is expressly agreed that payments to Lender shall be made net of
withholding Taxes and that Borrower shall pay all withholding Taxes. Upon request by Lender, Borrower shall furnish evidence satisfactory
to Lender, of the payment of all amounts required under this Section 2.06. Without limiting the foregoing, Lender may, at its option,
make a standing election for Borrower to provide evidence of all payments of Taxes within thirty (30) days of the applicable due
date, without further requests by Lender.

 

Section 2.07. Required Accounts;
Control Agreement.

 

		(a)	Prior to the initial Advance hereunder, Borrower shall enter into a Control Agreement and shall
establish: (i) a debt service reserve account that provides for cash reserves in support of certain payment Obligations of Borrower
as further set forth in the Cash Application Hierarchy Provisions (the “Debt Service Reserve Account”);
(ii) a revenue account into which all Revenues of the Project shall be deposited and from which transfers shall be subsequently
made in accordance with the Cash Application Hierarchy Provisions (the “Revenue Account”); (iii) a major
maintenance reserve account to be utilized for major maintenance expenses as further set forth in the Cash Application Hierarchy
Provisions (the “Major Maintenance Reserve Account”); (iv) an operating account from which operation,
maintenance and general administrative expenses of the Project shall be paid as further set forth in the Cash Application Hierarchy
Provisions (the “Operating Account”); and (v) in the event Borrower elects to provide a Contingency Reserve
Account in lieu of a Contingency Letter of Credit pursuant to the terms of Section 2.07(c) below, such Contingency Reserve Account.
Borrower shall maintain its applicable Required Accounts until all Obligations of Borrower are satisfied in full (provided, however,
that any Contingency Reserve Account may be terminated on the Contingency Assurance Release Date). All Required Accounts shall
be in form and substance and with a U.S. financial institution acceptable to Lender that has an internet-based wire transfer system
with electronic set-up, approval and release ability for the Required Accounts. All costs of establishing and maintaining the Required
Accounts shall be paid by the Borrower. Borrower shall have title to the Required Accounts and all interest income from the Required
Accounts shall be maintained in such accounts for distribution as allowed pursuant to this Agreement. Funds shall be distributed
from the Required Accounts solely in accordance with the terms of the Cash Application Hierarchy Provisions, dictating the disbursement
and uses of all of Revenues, including funding payments due under the Notes and reserves to support the Debt Service Reserve Account
and the Major Maintenance Reserve Account.

 

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		(b)	Commencing on a date selected by Borrower that is not later than the Conversion Date and continuing
until all Obligations of Borrower are satisfied in full, Borrower shall maintain at all times: (i) in the Debt Service Reserve
Account an amount equal to at least the Debt Service Reserve Required Balance; and (ii) in the Major Maintenance Reserve Account,
an amount equal to at least the Major Maintenance Reserve Required Balance.

 

		(c)	Prior to the initial Advance hereunder, Borrower shall either: (a) establish and fund the Contingency
Reserve Account with an amount equal to not less than One Million Five Hundred Thousand Dollars ($1,500,000) from cash resulting
from an addition to equity (not from funds obtained by Borrower pursuant to any loans or other arrangements evidencing Indebtedness
of Borrower); or (b) provide Lender with a Contingency Letter of Credit pursuant to which the issuer thereof has no recourse against
Borrower. Once established or provided, the foregoing must be maintained until the Contingency Assurance Release Date.

 

Section
2.08. Term. This Agreement shall remain in effect so long as any sums are owing or any Obligations remain to be performed
by Borrower to or for the benefit of Lender under the Transaction Documents. Lender’s commitment to make Advances under this
Agreement shall terminate upon the earlier of (a) January 1, 2015, if the conditions precedent to the initial Advance have not
been satisfied by such time and Lender thereafter elects to terminate this Agreement by delivery of written notice to Borrower
of such termination; (b) the Conversion Date Deadline; or (c) the date upon which Lender or Borrower terminates this Agreement
pursuant to any term of this Agreement. No termination (whether by default or the passage of time) shall affect or impair the rights,
powers, or privileges of Lender or the Obligations of Borrower relating to (i) any transaction or event occurring prior to the
effective date of such termination or (ii) any of the undertakings, agreements, covenants, indemnifications, warranties, or representations
of Borrower contained in the Transaction Documents, including the obligations of Borrower under Section 13.10 hereof. All such
undertakings, agreements, covenants, indemnities, warranties, and representations of Borrower shall survive such termination.

 

Section 2.09. Prepayment.

 

		(a)	The
Construction Note. Borrower may not prepay the principal of the Construction Note except to the extent required by Lender
pursuant to Section 2.02(a) or 2.09(c).

 

		(b)	The
Term Note. Provided that no Default has occurred, Borrower may prepay the Term Note only as follows: (i) Borrower
shall give Lender not less than thirty (30) days advance written notice of the intended date of prepayment (which such notice
shall be irrevocable); (ii) the prepayment shall be made on a scheduled payment due date; (iii) the minimum payment amount shall
be the full outstanding principal balance plus all accrued interest; (iv) Borrower shall pay a prepayment fee equal to the Prepayment
Calculation Rate times the amount of such prepayment; and (v) Borrower shall pay any other amounts due hereunder, including any
amounts due under Section 13.10.

 

		(c)	Mandatory Prepayment upon receipt of
                                                                                                        Extraordinary Proceeds. Borrower shall promptly notify Lender in writing of any anticipated Extraordinary Proceeds
                                                                                                        and shall direct any payor thereof to pay such amounts directly to the Revenue Account, except to the extent such payor has
                                                                                                        already agreed to pay such proceeds directly to Lender, including as loss payee with respect to the proceeds of any insurance
                                                                                                        policies maintained by Borrower. Upon Borrower’s receipt of any Extraordinary Proceeds, Lender may elect for all or a
                                                                                                        portion of such payments to be applied as a full or partial prepayment, as applicable, of the Note (together with a
                                                                                                        prepayment fee equal to the Prepayment Calculation Rate times the amount of such prepayment). No such application shall in
                                                                                                        any way limit any other conditions precedent or obligations of Borrower hereunder. In the event any portion of such
                                                                                                        prepayment is applied to the Term Note and no Event of Default has occurred and is continuing, Borrower’s payment
                                                                                                        obligations under such Term Note will be re-amortized over the remaining term of the Note and, at Lender’s request,
                                                                                                        Borrower shall execute a replacement Term Note or other documentation required by Lender to evidence the amended payment
                                                                                                        obligations.

 

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		(d)	No Reborrowing. No principal amounts
repaid or prepaid under any Note may be reborrowed.

 

Section 2.10.
Financial Model. Once approved by Lender pursuant to Section 4.01, the Original Financial Model shall be the Financial
Model for all purposes hereunder unless modified in accordance with the terms of this Section 2.10. Not more than annually, unless
otherwise agreed by Lender, Borrower may provide a revised financial model (“Proposed Financial Model”)
for consideration by Lender. Lender shall approve the Proposed Financial Model if such model employs the methodology used in the
Financial Model previously approved and is certified by an authorized officer of Borrower as providing a reasonable estimate as
of the date of the certification as to future Project performance, based on all information then known to Borrower, provided, however,
that no warranty is made with respect to any projections or other forward-looking statements provided by or on behalf of Borrower,
including any projections with respect to the Financial Model or any forecast delivered thereunder. As a condition to Lender’s
approval, Lender may require Borrower to make a partial prepayment under the Note (together with a prepayment fee equal to the
Prepayment Calculation Rate times the amount of such partial prepayment) to the extent Lender reasonably believes such prepayment
is necessary in light of the Proposed Financial Model to maintain, in a manner consistent with the Original Financial Model: (A)
Borrower’s ability to service the debt and pay ongoing expenses; and (B) Borrower’s ability to comply with all terms
and conditions hereof, including the covenants, representations and warranties to Lender as are set forth on Exhibit N.
Upon approval of such Proposed Financial Model and receipt of any prepayment required in connection with such approval, a reference
to such model shall be added to Exhibit E to this Agreement and shall constitute “Financial Model”
for all purposes hereunder.

 

ARTICLE III

Acceptable Credit
Support; Completed EPC Agreement,

Performance Guarantee
Agreement and O&M Agreement

 

Section 3.01.
Acceptable Credit Support Generally. Borrower expressly acknowledges and agrees that Lender requires the Austep Guaranties
and such other demand guaranties, letters of credit, bonding, insurance and/or other credit enhancements to support EPC Contractor’s
and O&M Contractor’s creditworthiness and their respective obligations under the EPC Agreement, O&M Contract and
Performance Guarantee Agreement, from such sureties, banks or companies and on such documents, instruments and agreements that
are, in each case, satisfactory to Lender in its sole and absolute discretion (hereinafter the “Acceptable Credit Support”).
Borrower further expressly acknowledges and agrees that: (a) this Agreement is being executed prior to Lender’s receipt,
review, internal due diligence and formal approval of such Acceptable Credit Support; and (b) without limiting the foregoing, Lender
shall have sole and absolute discretion with respect to whether Acceptable Credit Support has been provided. Nothing in this Article
III shall be deemed in any way to limit Borrower’s obligations under Article XII hereof with respect
to insurance required by Borrower or any other Person.

 

Section 3.02.
Bonds and other Acceptable Credit Support with respect to the EPC Contractor. Without limiting the generality of Section
3.01, it is expressly agreed that Borrower must provide and deliver to Lender:

 

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		(a)	one or more payment and performance
bonds which: (i) in each case: (A) are in form and substance and from an issuer satisfactory to Lender; (B) name Lender and Borrower
as dual obligees, (C) provide for Lender’s right to full subrogation to Borrower’s rights under the bonds; and (D)
include such other assurances and endorsements as Lender may require; and (ii) collectively address all of the following: (A)
payment and performance with respect to the completion of the Project in accordance with the terms of the EPC Agreement and the
other Construction Documents, including payment and performance with respect to the completion of all construction and work by
the Subcontractors; and (B) payment for all labor and materials furnished by EPC Contractor’s suppliers and laborers; provided,
however, Lender agrees that (1) no bond shall be required for the amount of the cost of the generator sets and related equipment
sold by the Equipment Dealer that are branded by Caterpillar, Inc.; (2) so long as the Subcontract between EPC Contractor and
The Austin Company is satisfactory to Lender, the bonds provided by The Austin Company with respect to its scope of work thereunder
may be provided together with the bonds provided by EPC Contractor towards satisfaction of this condition precedent (it being
the intention of the parties that each of these bonds must still satisfy all of the foregoing conditions precedent to the satisfaction
of Lender); (3) warranty obligations of EPC Contractor under the EPC Agreement, and associated liability, may be excluded from
the payment and performance bonds described above so long as a warranty bond acceptable to Lender or other Acceptable Credit Support
is provided in support of such obligations and liabilities; (4) the obligations and liability of EPC Contractor with respect to
the design of the Project and any associated Intellectual Property Rights, including lack of infringement of third party’s
rights, may be excluded from the payment and performance bonds described above so long as an insurance policy acceptable to Lender
or other Acceptable Credit Support is provided in support of such obligations and liabilities;

 

		(b)	one or more warranty bonds or other Acceptable Credit Support supporting the warranty obligations
of EPC Contractor under the EPC Agreement, and associated liability, that may be excluded from the payment and performance bonds
described in Section 3.02(a) above;

 

		(c)	insurance or other Acceptable Credit Support supporting the obligations and liability of EPC Contractor
with respect to the design of the Project and any associated Intellectual Property Rights, including lack of infringement of third
party’s rights, that may be excluded from the payment and performance bonds described in Section 3.02(a) above; and

 

		(d)	in the event any insurance serves
as Acceptable Credit Support, Lender may in its discretion update Exhibit O (Minimum Insurance Requirements) or otherwise
memorialize the requisite insurance provider, coverage amounts, deductibles and related information in connection with an such
approval by Lender.

 

Section
3.03. Acceptable Credit Support with respect to the O&M Contractor. Without limiting the generality of Section
3.01, it is expressly agreed that: (a) Borrower must provide and deliver to Lender Acceptable Credit Support with respect to O&M
Contractor’s creditworthiness and obligations under both the O&M Contract and the Performance Guarantee Agreement; (b)
any Acceptable Credit Support for the Performance Guarantee Agreement that consists of a Letter of Credit must (i) secure the
obligations of O&M Contractor under the Performance Guarantee; (ii) be in form and substance satisfactory to Lender, naming
Borrower as applicant and Lender as beneficiary (as assignee of Borrower); (iii) be issued by a United States financial institution
acceptable to Lender; and (iv) be in an amount equal to not less than Two Million Five Hundred Thousand Dollars ($2,500,000);
and (c) in the event any insurance serves as Acceptable Credit Support, Lender may in its discretion update Exhibit O (Minimum
Insurance Requirements) or otherwise memorialize the requisite insurance provider, coverage amounts, deductibles and related information
in connection with an such approval by Lender.

 

Section 3.04.
Completed EPC Agreement, Performance Guarantee Agreement and O&M Agreement. Borrower expressly acknowledges and
agrees that: (a) although the EPC Agreement, Performance Guarantee Agreement and O&M Agreement (the “Applicable
Incomplete Documents”) have been executed as of the date this Agreement is executed and are identified in Appendix
A hereto, certain Annexes, Exhibits and Schedules thereto have not been finalized; (b) completion of such Annexes, Exhibits
and Schedules and Lender’s acceptance thereof in its sole and absolute discretion remain conditions precedent to the initial
Advance hereunder; (c) Lender has expressly reserved, and hereby expressly continues to reserve, its right to comment on and approve
of, in its sole and absolute discretion, all such Annexes, Exhibits and Schedules as well as the rest of the Applicable Incomplete
Documents once such attachments are finalized; and (d) Lender may require Borrower and EPC Contractor and O&M Contractor, as
applicable, to execute documentation acceptable to Lender confirming the update, replacement or addition of such Annexes, Exhibits
and Schedules as well as any other modifications to the Applicable Incomplete Documents required by Lender hereunder.

 

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ARTICLE IV

Conditions of Advances

 

Section 4.01.
Initial Advance. Notwithstanding any provision of any Transaction Document, Lender shall not be obligated to make the
initial Advance hereunder until each of the following conditions has been received or satisfied, all in form and substance satisfactory
to Lender (in consultation with Lender’s Engineer to the extent desired by Lender):

 

		(a)	Permitted Ownership Acquisition. Lender shall have received and approved in its sole
and absolute discretion such documents and information as it requires regarding the Permitted Ownership Acquisition, including
(i) copies of the applicable purchase agreement, escrow agreement and all related documentation, (ii) a chart of the ownership
structure following any Permitted Ownership Acquisition, including the identity of the direct and indirect owners of Borrower;
(iv) evidence of consummation of such Permitted Ownership Acquisition (it being expressly agreed that all documentation and information
related to such Permitted Ownership Acquisition, including the documentation, timing and structure are subject to review and approval
by Lender in its sole and absolute discretion in all respects);

 

		(b)	Permits and Related
Rights. Borrower shall have obtained and furnished to Lender copies of all Permits and Related Rights for the Project that
are required to have been obtained by such date, including any Deferred Permits and Related Rights to the extent required by Section
7.19;

 

		(c)	Acceptable Credit Support.
Lender shall have received Acceptable Credit Support, including: (i) the Austep Guaranties and opinions of Italian counsel
regarding the same; and (ii) bonds, insurance policies, letters of credit, demand guaranties or such other information and documents
required by Article III hereof;

 

		(d)	Organizational and Governing Documents. Lender shall have received copies of the
organizational and governing documents of Borrower, Pledgor, EPC Contractor and O&M Contractor that: (i) are certified by an
authorized officer of Borrower and Pledgor, as applicable, as being true and correct copies thereof; and (ii) are in form and substance
satisfactory to Lender (it being expressly acknowledged and agreed that, with respect to Borrower and Pledgor, Lender may require
the foregoing in effect both before and after the Permitted Ownership Acquisition);

 

		(e)	Existence and Good Standing.
Lender shall have received a certificate of existence and good standing certificate with respect to Borrower, Pledgor, EPC
Contractor and O&M Contractor, issued as of a recent date acceptable to Lender by the Secretary of State or other appropriate
and authorized official of the jurisdiction of organization of each such Person, and, if different, a good standing certificate
with respect to Borrower, EPC Contractor and O&M Contractor issued as of a recent date acceptable to Lender by the Secretary
of State or other appropriate and authorized official of the jurisdiction where the Project shall be located;

 

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		(f)	Authorization.
Borrower and Pledgor shall have provided in form and substance satisfactory to Lender: (i) properly certified resolutions of Borrower’s
board of directors, general partner, manager, managing partner or other governing body duly authorizing the execution and delivery
of this Agreement and the other Transaction Documents and the consummation of the Project (it being expressly acknowledged and
agreed that Lender may require the foregoing in effect both before and after the Permitted Ownership Acquisition); (ii) properly
certified resolutions of Pledgor’s board of directors, general partner, manager, managing partner or other governing body
duly authorizing the execution and delivery of the Pledge Agreement; and (iii) such other authorizations and other documents as
Lender may require;

 

		(g)	Certifications.
Lender shall have received a certificate, in the form of the document attached hereto as Schedule 4, signed
by an authorized officer and/or manager of Borrower which shall certify the names of the officers of Borrower authorized to apply
for Advances under this Agreement, together with the true signatures of such officers;

 

		(h)	Construction Documents.
Borrower shall have provided a copy of the duly executed Construction Documents in form and substance satisfactory to Lender
(including the EPC Agreement, the Subcontract between EPC Contractor and Austep Guarantor and the Subcontract between EPC Contractor
and The Austin Company, together with any guaranties or other related credit support), together with evidence satisfactory to
Lender that that Borrower has assigned all of its rights under the Construction Documents to Lender as additional Collateral;
and all Annexes, Exhibits and Schedules to such Construction Documents shall have been finalized, reviewed and approved by Lender
in accordance with Section 3.04 hereof (it being expressly agreed that all such documentation be subject to review and approval
by Lender in its sole and absolute discretion in all respects);

 

		(i)	Assignability of Subcontracts. All of EPC Contractor’s subcontracts providing
for the performance of work under the Construction Documents shall be assignable to Lender in the case of a default by EPC Contractor
under the applicable Construction Documents and Lender shall have received such additional documentation it requires with respect
to such assignment, including with respect to the Subcontract between EPC Contractor and The Austin Company and the Subcontract
between EPC Contractor and Austep Guarantor;

 

		(j)	Schedule of Values; Original Financial Model; Balance Sheet; Fuel Supply Agreement Reporting;
Other Financial Information. Lender shall have approved (i) the Schedule of Values which shall set out each and every Project
Element and the Scheduled Value for each such Project Element, (ii) the Original Financial Model; (iii) the most recent prior-month
end balance sheet of Borrower; (iv) information satisfactory to Lender regarding the manner in which Fuel Supply Agreements shall
be reported to ensure proper identification of Required Fuel Agreements in accordance with Section 7.08 hereof; and (v) such other
financial information and projections as Lender shall require;

 

		(k)	Support Documents (including Compost Agreement and Required Fuel Supply Agreements).
Borrower shall have provided a copy of the duly executed Support Documents in form and substance satisfactory to Lender, together
with:

 

		(i)	evidence satisfactory to Lender that: (A) all Annexes, Exhibits and Schedules to such Support Documents
shall have been finalized, reviewed and approved by Lender (it being expressly agreed that all such documentation be subject to
review and approval by Lender in its sole and absolute discretion in all respects in accordance with Section 3.04 hereof); (B)
any and all conditions precedent to the effectiveness of such Support Documents have been fully satisfied;

 

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(C) Borrower has assigned all of
its rights under the Support Documents to Lender as Collateral;

 

		(ii)	a description of key milestones set forth in the Support Documents and an associated timeline verifying
the ability of Borrower to comply with such obligations;

 

		(iii)	a copy of any amendments to any Support Documents that Lender determines in its sole and absolute
discretion to be necessary or desirable to address delays in project development and resulting changes in the various milestones;

 

		(iv)	such other information required by Lender to confirm that the Conversion Date Deadline is appropriate;
and

 

		(v)	evidence that any previously executed Support Documents that are no longer
contemplated for the Project have been appropriately terminated; and

 

		(vi)	evidence that Borrower is able to comply with requirements in all Support Documents
and all Fuel Supply Agreements (whether or not such Fuel Supply Agreements constitute Support Documents), including accepting any
tonnage of feedstock required of Borrower under such Fuel Supply Agreements.

 

		(l)	Security Documents.
Borrower shall have executed and delivered to Lender, or have executed and delivered to Lender by the appropriate parties,
such documents as may be necessary in Lender’s sole opinion to grant, perfect or preserve Lender’s first priority
Security Interest in the Collateral and its ability to exercise its rights with respect thereto, including the Pledge Agreement,
the Required Consents and the other Security Documents and any and all further documents, instruments or records required by law
or deemed desirable by Lender (provided, however, that Required Consents shall only be necessary with respect to Required Fuel
Supply Agreements to the extent provided in Section 7.08(b) hereof);

 

		(m)	Construction Note and other Transaction Documents. Borrower shall have executed and
delivered to Lender, or have executed and delivered to Lender by the appropriate parties, all other Transaction Documents (including
the Construction Note);

 

		(n)	Lien Searches and Recordations.
Lender shall have: (i) performed such UCC and other lien record searches it requires; (ii) obtained results satisfactory to
Lender; and (iii) received evidence satisfactory to Lender that it has obtained a perfected first priority Security Interest in
the Collateral;

 

		(o)	Lien Waivers.
If applicable, Borrower shall have furnished to Lender such lien waivers and releases as are required by Lender from any existing
secured lien holder;

 

		(p)	Application and Related Conditions. Borrower shall have delivered to Lender an application
for such Advance together with other information required pursuant to Section 2.03(c) and all other conditions in Section 2.03
shall have been satisfied in full;

 

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		(q)	Land Documents; Real Property. (i) All Land Documents, or as appropriate accurate
copies thereof, shall have been delivered to Lender, duly authorized, executed and delivered by the parties thereto and, to the
extent applicable and required by Lender, duly recorded; (ii) Lender shall have received a commitment for title insurance for the
Land including all endorsements required by Lender from a title insurance company acceptable to Lender, providing for the issuance
of a loan policy that insures the Lien of Lender on Borrower’s rights to the Land to the Maximum Loan Amount and that contains
no exceptions which are unacceptable to Lender; and (iii) to the extent Lender deems necessary or desirable Lender shall have received:
(A) a survey of the Land and site plan for the Project; (B) landlord or mortgage waivers; (C) evidence that the Land is zoned for
the intended use; (D) an appraisal of the Land in a form and from an appraiser acceptable to Lender that substantiates a value
for the Land and existing buildings of not less than One Million Five Hundred Fifty Thousand Dollars ($1,550,000); and (E) any
other agreements, instruments or documents relating to the Land as required by Lender;

 

		(r)	Environmental Due Diligence.
Borrower shall have conducted: (a) all appropriate inquiries for the purpose of establishing the bona fide prospective purchaser
liability protection pursuant to Section 101(40) and 107(r) of the Comprehensive Environmental Response, Compensation and Liability
Act in compliance with the requirements of 40 CFR Part 312, including the completion of an updated Phase I Environmental Site
Assessment in strict conformance with the requirements of the currently applicable ASTM E1527 standard, as that standard may be
amended and revised from time to time (“Phase I ESA”); and (b) any and all additional environmental
assessment activities that Lender may require, such as the completion of Phase II soil and groundwater sampling, in response to
the results of the updated Phase I ESA or as Lender otherwise deems appropriate in its sole discretion. For purposes of clarification,
the parties expressly acknowledge that the updated Phase I ESA report issued pursuant to the ASTM E1527 standard shall, prior
to the first Advance hereunder, either be issued to Lender or expressly provide Lender with a right of reliance in a form acceptable
to Lender; and

 

		(s)	Evidence
of Insurance. Lender shall have received evidence of all insurance required under the Security Documents and this Agreement;

 

		(t)	Approvals.
The Advance shall have been approved by Lender, Lender’s Engineer and Borrower (Borrower’s submission of an application
in accordance with Section 2.03 being conclusive evidence that Borrower has approved such Advance);

 

		(u)	Financial
Statements. Lender shall have received all financial statements, including those required pursuant to Section 7.01 hereof;

 

		(v)	Pay Proceeds including Representations and Warranties. All representations
and warranties herein and in the other Transaction Documents shall be true and correct as of the date of the initial Advance, or
to the extent they relate to an earlier date such representations and warranties shall be true and correct as of such earlier date;
and Lender shall have received a signed copy of a pay proceeds letter, in the form attached as Exhibit I, certifying
as to the foregoing and directing payment of funds in accordance with the terms of this Agreement;

 

		(w)	Absence of Event of Default or Material Default. There shall
not exist any Event of Default or any other material Default under this Agreement or any other Transaction Document;

 

		(x)	Payment
of Fees and Expenses. Borrower shall have paid to Lender all fees and expenses specified in this Agreement, including
the Commitment Fee and the amounts due under Section 13.10 hereof as may then be due and payable;

 

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		(y)	Opinions of Counsel. Lender shall have received written opinions
of counsel to Borrower and Pledgor, as to the transactions contemplated by this Agreement, the other Transaction Documents to which
such Persons are a party, in form and substance satisfactory to Lender and addressing such items as are set forth on Exhibits
J-1 and J-2 and such other matters required by Lender (it being expressly acknowledged and agreed that, without limiting
any of the foregoing: (i) the opinion of counsel to Borrower with respect to Borrower’s authorization and execution of this
Agreement on the Effective Date, and prior to consummation of the Permitted Ownership Acquisition, does not satisfy this condition
precedent; and (ii) Lender shall have such opinions of counsel to Borrower as it requires after the date of the Permitted Ownership
Acquisition that is broader in scope than the opinion of Borrower’s counsel provided as of the Effective Date, such form
of opinion being subject to Lender’s review and approval in its sole and absolute discretion);

 

		(z)	Fuel Supply.
Lender shall have received (i) a report and duly executed certificate, each in form and substance satisfactory to Lender, from
an engineering company acceptable to Lender discussing, among other matters that Lender may require, the technical and economic
viability of the anticipated supply of the methane/fuel and/or methane/fuel producing materials necessary or desirable for operation
of the Project, including the technical and economic viability of the methane production estimates set forth in the Financial
Model and Borrower Operating Budget; and (ii) written confirmation from EPC Contractor in form and substance satisfactory to Lender
that: (A) the terms in the Required Fuel Supply Agreements that specify the minimum quality and types of the fuel supply thereunder
are consistent with the requirements outlined in the EPC Agreement that the Project is designed to process; and (B) the testing
that will be conducted under such Required Fuel Supply Agreements is consistent with the testing set forth in the EPC Agreement.

 

		(aa)	Equity Investment and Debt Investment Requirements. Lender shall have received evidence
that Borrower has met its obligations under Section 2.02, including proof of payment satisfactory to Lender;

 

		(bb)	No Material Adverse Event or Similar Occurrence. No Material Adverse Event has occurred
and is continuing with respect to Borrower or Pledgor;

 

		(cc)	Control Agreement; Required Accounts. The terms of Section 2.07 shall have been satisfied
in full, including: (i) the establishment of the Required Accounts, including the Contingency Reserve Account in the event Borrower
elects to provide and fund such an account in lieu of a Contingency Letter of Credit pursuant to the terms of Section 2.07(c);
and (ii) the execution of the Control Agreement with respect thereto;

 

		(dd)	Contingency Letter
of Credit. Lender shall have received and approved the Contingency Letter of Credit unless Borrower has established and
funded a Contingency Reserve Account pursuant to the terms of Section 2.07(c);

 

		(ee)	Ownership; No Disqualified
Persons. Lender shall have received evidence acceptable to Lender that no direct or indirect equity interest in Borrower
is beneficially owned by a Disqualified Person, including: (i) certificates regarding such matters executed by authorized officers
of each of the first indirect owner(s) which collectively own one hundred percent of Borrower and are taxable entities; (ii) an
ownership diagram of Borrower, showing the complete direct and indirect ownership of Borrower, and any partnership or other pass-through
entity that directly or indirectly owns any interest in Borrower, up to direct or indirect owners that are individuals or Persons
are or will be treated as taxable “C” corporations; and (iii) any other backup diligence materials requested by Lender;

 

		(ff)	Confirmation from Tipping. Confirmation from Tipping that it has consented to the
execution of this Amended and Restated Construction Financing Agreement and that it is no longer a party to any Transaction Documents,
Construction Documents, Support Documents or other documents related in any way to the Project;

 

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		(gg)	Completion of Exhibits
                                         and Schedules to this Agreement. Lender shall have received and approved, in
                                         its sole discretion in consultation with Lender’s Engineer where applicable: (i)
                                         Exhibit E (Description of Financial Model); (ii) Exhibit F (Description
                                         of Schedule of Values); (iii) Schedule 1 (List of Construction Documents);
                                         (iv) Schedule 2 (Equipment Description); (v) Schedule 3 (List
                                         of Support Documents); and (vi) Schedule 6 (Deferred Permits and Related
                                         Rights). Once approved by Lender, the Exhibits and Schedule referenced) above will be
                                         attached in lieu of the original versions included as of the date of execution of this
                                         Agreement and shall thereafter constitute such applicable Exhibits or Schedule, as applicable.

 

		(hh)	Other
Requirements. Lender shall have received such other documents, instruments, and agreements as Lender shall request in connection
with the foregoing matters.

 

Section
4.02. Conditions Precedent to each Advance. Notwithstanding any provision of any Transaction Document, each Advance
under this Agreement (including the initial Advance) shall be made pursuant to the terms of this Agreement and shall be subject
to the fulfillment to Lender’s satisfaction of all of the following conditions:

 

		(a)	Satisfactory
Construction. All work required to be performed at the stage of construction for which the Advance is requested shall have
been performed in a good and workmanlike manner and consistent with prudent engineering and construction practices; and all materials
and fixtures usually furnished and installed at such stage of construction shall have been furnished and installed, all in compliance
with the EPC Agreement and the other Construction Documents;

 

		(b)	Proof of Completion of Work regarding the Advance. All work for
which an Advance is being requested shall have been successfully completed to the satisfaction of Lender and Borrower, and Lender
shall have received appropriate evidence of achievement of such work. Appropriate evidence of such achievement shall consist of
(i) written certification by EPC Contractor that: (A) it has determined that the progress has been successfully achieved; (B) there
are no contractor’s, laborer’s, mechanics’, or materialmen’s liens or other encumbrances created by EPC
Contractor or any Subcontractors affecting the Project; and (C) all conditions precedent to the Advance have been satisfied in
full; and (ii) at Lender’s option, a certificate from Lender’s Engineer that in his professional opinion, the construction
of the Project, and the Project itself, has complied, and will continue to comply, with all applicable statutes, ordinances, codes,
regulations, and similar requirements material to the applicable stage of completion of the Project, and such stage of completion
as identified on the Schedule of Values has been achieved in accordance with the EPC Agreement and the other Construction Documents,
which certificate shall not be unreasonably withheld, conditioned or delayed;

 

		(c)	Limits
on Amount Advanced. The maximum amount of any Advance shall be determined by the work completed and the corresponding amounts
in the Schedule of Values as well as the Equity Investment requirements and Debt Investment limitations of Section 2.02 hereof;

 

		(d)	Approvals.
The Advance shall have been approved by Lender, Lender’s Engineer and Borrower (Borrower’s submission of an application
in accordance with Section 2.03 being conclusive evidence that Borrower has approved such Advance);

 

		(e)	Lien
Waivers. Borrower shall have obtained, or caused EPC Contractor to obtain, and Borrower shall have attached to each application
for an Advance, executed acknowledgments of payments of all sums due and releases of laborer’s, mechanic’s, and materialmen’s
liens, in the form of Exhibit K or such other form as may be satisfactory to Lender, from any party having lien
rights, which acknowledgments of payment and releases of liens shall cover all work, labor, Equipment, and Materials done, supplied,
performed, or furnished prior to such application for an Advance but which may be conditioned on the receipt of the payment covered
by such application for such Advance;

 

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		(f)	Absence of Event of Default or material
Default. There shall not exist at the time of such Advance: (i) an Event of Default or (ii) any other Default under this
Agreement that, in the case of this subsection (ii), could reasonably be expected to lead to a Material Adverse Event; 

 

		(g)	Representations and Warranties; Documents.
All representations and warranties herein and in the other Transaction Documents shall be true and correct as of the date of such
Advance, or to the extent they relate to an earlier date such representations and warranties shall be true and correct as of such
earlier date, and there shall have been no amendments, changes or other modifications to any agreements, instruments or other documents
delivered to Lender by Borrower in connection with the initial Advance, including the Support Documents and Construction Documents
unless otherwise consented to by Lender in writing;

 

		(h)	No Material Adverse Event. No Material Adverse Event has occurred
and is continuing with respect to Borrower or Pledgor;

 

		(i)	Balance Sheet. Lender shall have received the most recent prior-month end balance
sheet;

 

		(j)	Deferred Permits and Related Rights. Borrower shall have obtained
and furnished to Lender copies of any Deferred Permits and Related Rights then required pursuant to Section 7.19; and

 

		(k)	Additional
Requirements. All conditions precedent in Section 4.01 of this Agreement shall continue to be satisfied and Lender shall
have received all such other documents, certifications, or acknowledgments as Lender shall request.

 

Section 4.03. Disbursement
of Retainages.

 

		(a)	Biogas
Substantial Completion. Upon Biogas Substantial Completion of the Project, Lender shall disburse fifty percent (50%) of
the aggregate amount of Retainages to EPC Contractor or The Austin Company, if applicable, upon having received or verified the
following:

 

		(i)	Final Completion.
The Project shall have achieved Biogas Substantial Completion; EPC Contractor shall have executed and delivered to Borrower
a Certificate of Biogas Substantial Completion; Borrower shall have executed and delivered to Lender such Certificate of Biogas
Substantial Completion; and Lender’s Engineer shall have advised Lender of his acceptance of such Certificate, as evidenced
by his countersignature in the place designated therein; and

 

		(ii)	Additional
Requirements. All conditions precedent in Sections 4.01 and 4.02 of this Agreement shall continue to be satisfied and all
such other documents, certifications, or acknowledgments shall have been provided as Lender shall request.

 

		(b)	Final
Completion. Upon Final Completion of the Project, Lender shall disburse the remaining fifty percent (50%) of aggregate
amount of Retainages to EPC Contractor or The Austin Company, if applicable, upon having received or verified the following:

 

		(i)	Punch
List Items. EPC Contractor shall have completed the Punch List Items to the reasonable satisfaction of Lender and Borrower;

 

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		(ii)	Final Completion. The Project shall have achieved Final Completion; EPC Contractor
shall have executed and delivered to Borrower a Certificate of Final Completion; Borrower shall have executed and delivered
to Lender such Certificate of Final Completion; and Lender’s Engineer shall have advised Lender of his acceptance of such
Certificate, as evidenced by his countersignature in the place designated therein;

 

		(iii)	Conversion. Borrower shall have delivered to Lender an executed Term Note and Conversion
shall have occurred in accordance with the terms of Article V below; and

 

		(iv)	Additional Requirements. All conditions precedent in Sections 4.01 and 4.02 of this
Agreement shall continue to be satisfied and all such other documents, certifications, or acknowledgments shall have been provided
as Lender shall request.

 

ARTICLE V

Final Advance; Conversion
from Construction Note to Term Note

 

Section 5.01.
Execution of Term Note. After Power Substantial Completion of the Project but on or before the Conversion Date Deadline,
Borrower shall execute the Term Note completed in accordance with Section 5.03 hereof. Upon the Conversion Date (as hereinafter
defined) all of Borrower’s obligations under the Construction Note will be discharged and Borrower’s future obligations
with respect thereto, including the Advance made on the Conversion Date, shall be governed pursuant to the terms of the Term Note
and the other Transaction Documents to which it is a party (hereinafter “Conversion”). For purposes of
clarity, the principal balance of such Term Note shall include: (a) all obligations of Borrower under the Construction Note, including
any Advance made under the Construction Note on or before the Conversion Date (but excluding interest accrued under the Construction
Note which has not been repaid, all of which must be repaid in connection with Conversion pursuant to Section 5.02(p) below); and
(b) the amount of any Retainage withheld by Lender pursuant to Section 2.03(b) hereof, it being the intention of the parties that
such Retainage (i) be deemed funded by Lender as an Advance under the Note on the Conversion Date bearing interest in accordance
with the terms of such Note; and (ii) be held in escrow until disbursement pursuant to Section 4.03 hereof. Borrower acknowledges
and agrees that such amounts may be commingled by Lender with other funds and shall not bear interest. At Borrower’s written
request, Lender shall cancel and return the original of the Construction Note to the Borrower promptly after the Conversion Date.
As used herein, the term “Conversion Date” means the first day of the calendar month occurring immediately
after Lender’s determination that all conditions precedent specified in Section 4.01 and 4.02 and all conditions precedent
outlined below in Section 5.02 have been satisfied. If requested in writing by Lender, Borrower shall acknowledge the Conversion
Date in writing pursuant to a certificate signed by an authorized officer of Borrower.

 

Section 5.02.
Conditions Precedent to Conversion. Lender shall not be obligated to make the final Advance or complete Conversion until
each of the following conditions has been received or satisfied, all in form and substance satisfactory to Lender:

 

		(a)	Absence of Event of Default or material Default. There shall not exist at the time
of Conversion: (i) an Event of Default or (ii) any other Default under this Agreement or any other Transaction Document that, in
the case of this subsection (ii), could reasonably be expected to lead to a Material Adverse Event;

 

		(b)	Training. Lender shall have received Borrower’s certification and such other
evidence required by Lender that training has been conducted and that the operators of the Project are well trained, competent
and have sufficient experience to operate the Project safely, efficiently and correctly;

 

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		(c)	Representations and Warranties and Officer Certifications. Borrower
shall have provided to Lender a certificate in the form shown on Exhibit L, duly executed by an authorized officer
of Borrower;

 

		(d)	Payment
of Fees and Expenses. Borrower shall have paid to Lender all amounts due under Section 13.10 hereof and any other amounts
specified in this Agreement that may then be due and payable;

 

		(e)	Opinions
                                         of Counsel. Borrower shall provide an update of the opinions of counsel provided
                                         pursuant to Section 4.01(y) with respect to Borrower in form and substance satisfactory
                                         to Lender in the event Lender reasonably requires such an opinion as a result of material
                                         changes in: (i) Applicable Law; (ii) the organizational structure of Borrower or Pledgor;
                                         or (iii) the identity of officers executing the Term Note or other Transaction Documents
                                         in connection with Conversion;

 

		(f)	Governmental
Inspections. Lender shall have received evidence satisfactory to Lender that all work on the Project requiring inspection
by any Governmental Authority with jurisdiction has been duly inspected and approved by such authority;

 

		(g)	No
                                         Liens. Lender shall have received evidence satisfactory to Lender that all parties
                                         performing work on or related to the Project have been paid, or will be paid from
                                         such final Advance, for such work and Lender shall have received a Certificate of No
                                         Liens from EPC Contractor;

 

		(h)	Licenses.
                                         Lender shall have received evidence satisfactory to Lender that all licenses have
                                         been obtained by Borrower and are in full force and effect that are necessary or
                                         desirable to operate the Project according to its intended use;

 

		(i)	Mechanical
                                         Completion. The Project shall have achieved Mechanical Completion; EPC Contractor shall have executed and delivered to Borrower a Certificate of Mechanical Completion;
                                         Borrower shall have executed and delivered to Lender such Certificate of Mechanical Completion;
                                         and Lender’s Engineer shall have advised Lender of his acceptance of such Certificate,
                                         as evidenced by his countersignature in the place designated therein;

 

		(j)	Power
                                         Substantial Completion. The Project shall have achieved Power Substantial Completion;
                                         EPC Contractor shall have executed and delivered to Borrower a Certificate
                                         of Power Substantial Completion; Borrower shall have executed and delivered to Lender
                                         such Certificate of Power Substantial Completion; and Lender’s Engineer shall have
                                         advised Lender of his acceptance of such Certificate, as evidenced by his countersignature
                                         in the place designated therein;

 

		(k)	Punch List.
EPC Contractor shall have delivered to Lender and Borrower a list of Punch List Items and both Lender and Borrower shall have accepted
such punch list (Borrower’s submission of an application for the final Advance in accordance with Section 2.03 being conclusive
evidence that Borrower has accepted such punch list);

 

		(l)	Financial
Model. Borrower shall have delivered to Lender: (i) a certification of the Original Financial Model; or (ii) a Proposed
Financial Model that is approved by Lender in accordance with the terms of Section 2.10;

 

		(m)	Borrower
                                         Operating Budget. Borrower shall have delivered to Lender the Borrower Operating Budget
                                         required pursuant to Section 2 of the Cash Application Hierarchy Provisions and such
                                         Borrower Operating Budget shall have been approved by Lender in consultation with Lender’s
                                         Engineer and adopted by Borrower as required by said Section 2;

 

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		(n)	Operating Plan.
Borrower shall have delivered to Lender the Operating Plan and such plan shall have been approved by Lender in consultation
with Lender’s Engineer;

 

		(o)	Interest under Construction
Note. Borrower shall have paid all interest accrued on the Construction Note from the date of the last payment through
the date of Conversion (from cash from an addition to Equity funded by a source other than Retained Earnings);

 

		(p)	Permits and Related
Rights. Borrower shall have obtained and furnished to Lender copies of all Permits and Related Rights for the Project that
are required to have been obtained by such date, including any Deferred Permits and Related Rights to the extent required by Section
7.19; and

 

		(q)	Additional Requirements.
All conditions precedent in Sections 4.01 and 4.02 of this Agreement shall continue to be satisfied and all such other documents,
certifications, or acknowledgments shall be provided as Lender shall request.

 

Section
5.03. Term Note. In consideration of any and all Advances made by Lender hereunder and the refinancing under the Term
Note of Indebtedness previously evidenced by the Construction Note, Borrower agrees to pay to Lender, in accordance with the terms
of the Term Note, the outstanding balance thereon together with interest calculated as set forth in the Term Note and all other
amounts due thereunder in accordance with the terms thereof. All interest shall be computed on the basis of actual days elapsed
and a year of three hundred sixty (360) days. The interest rate to be specified in the Term Note shall be a fixed rate calculated
by Lender on a date that is no more than sixty (60) days prior to the Conversion Date to be equal to the Applicable Term Loan
Interest Rate as of the date of such calculation. Payments will be due under the Term Note monthly, in arrears, based on an amortization
period of one hundred twenty (120) months beginning on the Conversion Date. The first such payment shall be due on the first Business
Day of the fourth calendar month following the Conversion Date. For purposes of illustration and not of limitation, if the Conversion
Date were September 1, 2015, the first monthly payment under the Term Note would be due on January 1, 2016 and the “Maturity
Date” to be specified in the Term Note would be September 1, 2025.

 

Section 5.04.
Conversion Date Deadline. Notwithstanding the Maturity Date specified in the Construction Note or any other provision
herein or in any other Transaction Document, in the event Conversion does not occur on or before the Conversion Date Deadline:
(i) Lender will be under no obligation to make any Advances; and (ii) Borrower shall be obligated to pay to Lender: (A) the entire
balance due under the Construction Note together (including accrued interest) with a prepayment fee equal to the Prepayment Calculation
Rate times the outstanding balance (including accrued interest) thereunder; and (B) any other amounts owed by Borrower under Section
13.10 or otherwise hereunder.

 

ARTICLE VI

Representations and
Warranties

 

Borrower, with
the knowledge that Lender is relying thereon in executing this Agreement and making the Advances hereunder, represents and warrants
the following to Lender as of the date hereof and for the entire term of this Agreement:

 

Section 6.01.
Legal Existence. Each of Borrower and Pledgor is duly organized, validly existing and in good standing under the laws
of the State of their respective formations and is duly licensed or qualified to transact business in the jurisdictions where the
character of the property owned or leased or the nature of the business transacted by such Person makes such licensing or qualification
necessary, including, in the case of Borrower, the jurisdiction where the Project is located.

 

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Section 6.02.
Authorizations; No Conflict. Each of Borrower and Pledgor has all requisite power and authority, and is duly authorized
and empowered to enter into, execute, deliver and perform all of its Obligations under the Transaction Documents, the Support Documents
and the Construction Documents to which it is a party, to conduct its business as presently conducted, to own and operate its property
and, in the case of Borrower, to operate the Project. The execution, delivery, and performance by each of Borrower and Pledgor
of the Transaction Documents, the Support Documents and the Construction Documents to which it is a party have been duly authorized
by all necessary corporate action and do not and will not (a) require any consent or approval of the stockholders, partners, members,
or other owners of such Person, or any authorization, consent, or approval by any domestic or foreign governmental department,
commission, board, bureau, agency, or instrumentality that is not already obtained, except for any Deferred Permits and Related
Rights; (b) violate any provision of any Applicable Law or any order, writ, injunction, or decree presently in effect having applicability
to such Person or of the organizational or governing documents of such Person; (c) result in a breach of or constitute a default
under any indenture or loan or credit agreement or any other agreement, lease, or instrument to which such Person is a party or
by which it or its properties may be bound or affected (without implying the consent of Lender to the existence or creation thereof);
or (d) result in or require the creation or imposition of any Lien upon or with respect to any of the properties now owned or hereafter
acquired by such Person other than Permitted Liens.

 

Section 6.03.
Legal Agreements. This Agreement and the other Transaction Documents to which each of Borrower or Pledgor is a party
constitutes the legal, valid, and binding obligations of such Person enforceable against it in accordance with their respective
terms.

 

Section 6.04.
Financial Condition. All financial statements furnished to Lender by or on behalf of Borrower fairly present the financial
condition of such Persons on the dates thereof and the results of its operations for the periods then ended, and have been prepared
in accordance with GAAP. There are no liabilities of Borrower, fixed or contingent, which are material and are not reflected in
the financial statements or the notes thereto, other than liabilities arising in the ordinary course of business since the date
of the last financial statement. The financial statements do not contain any untrue statement of a material fact or omit a material
fact necessary to make the statements contained herein or therein not misleading.

 

Section 6.05.
Material Adverse Event. No Material Adverse Event has occurred and no fact is known to Borrower, as of the date hereof,
which can reasonably be expected in the future to constitute or cause a Material Adverse Event with respect to Borrower or Pledgor.

 

Section 6.06. Force Majeure Event.
Neither the business nor the properties of Borrower is affected by any Force Majeure Event.

 

Section 6.07. Litigation.
With the exception of those actions, suits or proceedings described in Schedule 7 herein, there are no actions, suits,
or proceedings pending or, to the Knowledge of Borrower, threatened against or affecting Borrower or Pledgor or any Affiliate of
Borrower or the properties of Borrower, Pledgor or such Affiliate before any court or Governmental Authority, commission, board,
bureau, agency or instrumentality, domestic or foreign, that would reasonably be expected, individually or in the aggregate, to
constitute or cause a Material Adverse Event with respect to Borrower or Pledgor.

 

Section 6.08.
No Defaults on Outstanding Judgments or Orders. Each of Borrower and Pledgor has satisfied all judgments, and neither
Borrower nor Pledgor is in default with respect to any judgment, writ, injunction, decree, rule, or regulation of any court, arbitrator,
or of any other federal, state, municipal, or other Governmental Authority, commission, board, bureau, agency, or instrumentality,
whether domestic or foreign.

 

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Section 6.09.
Compliance with Laws and Regulations. Borrower, in the conduct of all of its business affairs, has complied in all material
respects with the requirements of all Applicable Laws, including all Environmental Laws, the noncompliance with which would constitute
or cause a Material Adverse Event with respect to Borrower. There have been no citations, notices, or orders of noncompliance (that
have not been complied with or withdrawn) issued to Borrower under any Applicable Law that would constitute or cause a Material
Adverse Event with respect to Borrower. Borrower has, or will have on the date required, and is in good standing with respect to,
all governmental consents, approvals, authorizations, permits, certificates, inspections, and franchises necessary to continue
and to conduct in all material respects its business as heretofore conducted (or proposed to be conducted) by it and to own or
lease and operate in all material respects its properties as now owned or leased by it.

 

Section 6.10.
Title to Properties. Borrower has good, valid, and marketable title to all its material properties and assets, both
real and personal (immovable and movable), including all Collateral and all material property reflected in the financial statements
of Borrower referred to in Section 6.04 (except for such material property as has been sold or otherwise disposed of in the ordinary
course of business since the date thereof, without implying the consent of Lender to any such sale or other disposition), free
from any Liens other than Permitted Liens. To Borrower’s Knowledge, there are no unrecorded rights of third parties to use
or occupy any portion of the material properties that are not noted on the title insurance policy delivered pursuant to Section
4.01(q) hereof.

 

Section 6.11. Liens.
Except for Permitted Liens, the Collateral and other assets of Borrower are not and will not be subject to any Lien or the terms
of any security agreement during the term hereof. Without limiting the foregoing: (a) the Liens granted to Lender pursuant to this
Agreement and the other Security Documents are (and, with respect to subsequently acquired Collateral, will be) superior and prior
to the rights of all third Persons now existing or hereafter arising by way of Lien; (b) the Control Agreements, once executed,
are effective to create and perfect in favor of Lender a legal, valid, binding and enforceable first priority Lien on the Required
Accounts and the proceeds thereof; (c) except to the extent control of portions of the Collateral is required for perfection, all
such action as is necessary has been taken to establish and perfect Lender’s rights in and to, and first priority Lien on,
the Collateral, including any recording, filing, registration, giving of notice or other similar action; and (d) the Security Documents
relating to the Collateral, including the financing statements relating thereto, have been duly filed or recorded in each office
and in each jurisdiction where required in order to create, perfect and maintain perfected the first Lien described above.

 

Section 6.12.
Accuracy of Information. All information supplied to Lender by or on behalf of Borrower or Pledgor: (a) prior to execution
of this Agreement was, when taken as a whole, after giving effect to any supplemental information, and as of the date such information
or supplemental information was furnished, true and accurate in all material respects; and such information or supplemental information
was not, when taken as a whole, after giving effect to any supplemental information, as of the date such information or supplemental
information was furnished, incomplete by omitting to state any material fact necessary to make such information not misleading
in light of the circumstances; and (b) delivered on or after the Effective Date pursuant to the terms of this Agreement,, is and
shall be true and correct in all material respects (other than, in each case, projections, budgets and other “forward-looking”
information that have been prepared on a reasonable basis in good faith based on reasonable assumptions at the time). As used in
this Section, information includes original written copies, printed copies, or copies provided electronically by analog, digital,
electronic, magnetic, mechanical, optical, chemical, electromagnetic, electromechanical, electrochemical, or other similar means,
whether or not sent by mail, courier, delivery service, facsimile, telegraph, Internet, or any other means.

 

Section 6.13.
Taxes. Borrower has filed or caused to be filed all tax returns which are required to be filed by it pursuant to all
applicable federal, state, and local laws, regulations or orders, or any other Applicable Laws. Borrower has paid, or made provision
for the payment of, all Taxes which have or may have become due pursuant to said returns or otherwise or pursuant to any assessment
received by Borrower. The charges, accruals, and reserves in respect of income taxes on the books of Borrower are adequate. Borrower
knows of no proposed material tax assessment against it and no extension of time for the assessment of Taxes of Borrower is in
effect or has been required or applied for, except as disclosed in the financial statements delivered by Borrower to Lender.

 

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Section 6.14.
Other Agreements. Borrower: (a) is not a party to any indenture, loan, credit agreement, lease or other agreement or
instrument other than the Construction Documents or the Support Documents; (b) is not subject to any charter or corporate restriction
which could constitute or cause a Material Adverse Event with respect to Borrower; and (c) is not in default in any material respect
in the performance, observance, or fulfillment of any of the obligations, covenants, or conditions contained in any agreement or
instrument material to its business to which it is a party.

 

Section 6.15.
Operation of Business. Each of Borrower and Pledgor possesses all licenses, permits, franchises, patents, copyrights,
trademarks, and trade names, or rights thereto, to conduct its business substantially as now conducted and as presently proposed
to be conducted, and neither Borrower nor Pledgor is in violation of any valid rights of others with respect to any of the foregoing.
The Borrower has not received from any third party a claim in writing that it is infringing the Intellectual Property Rights of
such third party, and the use of intellectual property by the Borrower does not infringe on the rights of any Person in any manner.

 

Section 6.16. Support
Documents and Construction Documents. Borrower has provided to Lender copies of all Support Documents and Construction
Documents that are true, correct, accurate, and complete copies of the originals. The Equipment and the Project will be completed
in accordance with the EPC Agreement and the other Construction Documents (subject to Permitted Changes). To the Knowledge of Borrower,
each of the Support Documents and Construction Documents is in full force and effect, is enforceable against each counterparty
thereto in accordance with its terms, (except as may be limited by applicable bankruptcy, insolvency, moratorium, reorganization
or other similar laws affecting the enforcement of creditors’ rights and subject to general equitable principles (regardless
of whether enforceability is considered in a proceeding in law or equity)), and no material defaults by the Borrower, or to the
best of the Borrower’sKnowledge, by any counterparty thereto, have occurred and are continuing thereunder.

 

Section 6.17. Ownership of Equipment
and Materials. Borrower shall own, and Lender shall have a first priority Lien on the Equipment and Materials when delivered
to the Land and payment is made therefor.

 

Section 6.18.
Financial Model. The assumptions, formulas and methodology constituting the basis on which Borrower prepared the Financial
Model that is in effect with respect to the Project were developed and consistently utilized in good faith, and (i) prior to the
Conversion Date, are believed by Borrower to be reasonable; (ii) on or after the Conversion Date, are reasonable; and (iii) in
all cases, represent Borrower’s best estimate as of the date prepared as to the matters contained therein, based on all information
known to Borrower. Borrower may update the Financial Model with the prior written consent of Lender by following the procedure
in Section 2.10, provided, however, that no warranty is made with respect to any projections or other forward-looking statements
provided by or on behalf of Borrower, including any projections with respect to the Financial Model or any forecast delivered thereunder.

 

Section 6.19.
Additional Environmental Provisions. To the Knowledge of the Borrower, no asbestos or asbestos-containing materials
have been installed, used, incorporated into, or disposed of on the Land; no storage tanks, either underground or above-ground,
are located on the Land or were located on the Land and subsequently removed or filled, except those tanks that have been disclosed
to Lender, and which are and will be in compliance with the provisions and standards of the all Applicable Laws related to underground
storage tanks; and to the Knowledge of the Borrower, no Environmental Claim is proposed, threatened, anticipated or in existence
with respect to the Land.

 

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ARTICLE VII

Affirmative Covenants;
Representations and Warranties; Additional Provisions

 

So long as this Agreement
remains in effect or Borrower shall have any unfulfilled or undischarged Obligations, including any Indebtedness evidenced by any
Notes, Borrower will comply with the following requirements and represents and warrants as follows:

 

Section 7.01. Financial
Statements; Other Information and Covenants. Borrower will deliver to Lender, or cause to be delivered to Lender, as applicable:

 

		(a)	Unaudited quarterly financial statements for Borrower within sixty (60) days of the end of each
fiscal quarter;

 

		(b)	Within one hundred twenty (120) days of fiscal year end, annual financial statements for Borrower
that have been audited by a Certified Public Accountant in accordance with GAAP;

 

		(c)	Immediately after the commencement thereof, notice in writing of all litigation and of all proceedings
before any state or federal court or any governmental or regulatory agency, bureau or commission affecting Borrower, Pledgor or
any Affiliate of Borrower of the type described in Section 6.07 or which seek a monetary recovery against Borrower, Pledgor or
such Affiliate in excess of Twenty-Five Thousand Dollars and 00/100ths ($25,000.00) (or, if determined adversely to Borrower, Pledgor
or such Affiliate, would constitute or cause a Material Adverse Event with respect to Borrower or Pledgor) along with, if requested
in writing by Lender, an opinion of Borrower’s, Pledgor’s or such Affiliate’s counsel regarding the circumstances
underlying and the merits of such litigation or proceedings;

 

		(d)	As promptly as practicable (but in any event not later than ten (10) days after Borrower obtains
knowledge of the occurrence), notice of any Default together with a detailed statement by an officer of Borrower of the steps being
taken by Borrower to cure such Default;

 

		(e)	From time to time and promptly upon the reasonable request of Lender, such data, certificates,
reports, statements, opinions of counsel and other experts, documents, further information, or assurances regarding (i) the Transaction
Documents, the Support Documents and the Construction Documents; or (ii) the business, assets, liabilities, financial condition,
results of operations, or business prospects of Borrower as Lender may request, in each case in form, substance, and certified
in a manner satisfactory to Lender;

 

		(f)	A certificate using the format shown in Exhibit M signed by an authorized officer
of Borrower. This certificate is required to be submitted with each set of quarterly and annual financial statements; and

 

		(g)	As promptly as practicable (but in any event not later than three (3) Business Days after Borrower
obtains knowledge of the occurrence), notice in writing of: (i) the presence of or release of any Hazardous Substances with respect
to the Land or any property that is affected by or proximate to the Land; (ii) any Environmental Claim; or (iii) any Material Adverse
Event with respect to Borrower.

 

Section 7.02.
Financial Covenants. Borrower makes the covenants, representations and warranties to Lender as are set forth on Exhibit
N.

 

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Section 7.03.
Compliance with Laws and Regulations; Payment of Taxes and Claims. Borrower shall, in the conduct of its business, comply
with all Applicable Laws, including: (i) paying and discharging promptly, and in all events before the same become delinquent,
all Taxes, claims, assessments, and governmental charges imposed upon it or upon its property, subject to Borrower’s Contest
Rights; and (ii) maintaining all licenses, permits, franchises, patents, copyrights, trademarks, and trade names, or rights thereto,
to conduct its business substantially as conducted. If Borrower shall fail to immediately discharge or provide security against
any Taxes, claims, assessments, and governmental charges as aforesaid, Lender may do so and any and all expenses incurred by Lender,
which amounts shall be immediately paid by Borrower on demand and shall be subject to late payment fees and interest in accordance
with Section 13.10 hereof.

 

Section 7.04. Lender’s
Right of Entry and Inspection. Lender, Lender’s Engineer and each of their respective agents shall have, upon
one (1) day prior notice (provided, however, that advance notice shall not be required during the occurrence and continuance
of a Default), the right of entry and free access to the Project, the Land, Borrower’s premises and the right to
inspect the Collateral, including the Project and all work done, labor performed, and Equipment and Materials furnished with
respect to the Project and the design, engineering, construction, testing and operation thereof. Lender hereby agrees to
defend, indemnify and hold Borrowers and Borrowers’ employees, agents, directors, partners, shareholders, officers,
members, and any assignee or Borrowers harmless from and against all claims, demands, suits, and legal proceedings (whether
civil, criminal, administrative, investigative, or otherwise), including arbitration, mediation, bankruptcy, and appeal and
including any claims, demands, suits, and legal proceedings related to any alleged or actual harm suffered by Lender,
Lender’s Engineer and each of their respective agents during such entry and access arising from the acts or omissions
of such Lender or Lender’s Engineer. Lender shall have unrestricted access to and the right to copy all records,
accounting books, contracts, subcontracts, bills, statements, vouchers, and supporting documents of Borrower relating in any
way to the Project. Without limiting the foregoing, Borrower expressly agrees that, such rights include the right of Lender,
Lender’s Engineer and each of their respective agents to: (a) participate in any and all periodic and other progress
meetings (by telephone, videoconference or in person) during the construction phase of the Project; and (b) witness any
commissioning and performance tests for the Project and inspect the Project facilities in connection therewith. In
furtherance of the foregoing, Borrower shall give advance notice of the foregoing to Lender (including at least five (5) days
prior to Borrower’s plan to carry out any performance testing relating to Mechanical Completion, Biogas Substantial
Completion, Power Substantial Completion or Final Completion). Following any such tests, Borrower shall deliver to Lender and
Lender’s Engineer a report that indicates the preliminary opinions as to the satisfactory achievement of the applicable
performance tests. Borrower shall be responsible for all reasonable out-of-pocket incurred by Lender. Borrower shall,
promptly upon written request from Lender or Lender’s Engineer, provide copies of such records, accounting books,
contracts, subcontracts, bills, statements, vouchers, and supporting documents of Borrower relating in any way to the Project
as are requested by Lender or Lender’s Engineer.

 

Section 7.05. Lender’s
Right to Stop Work. All construction on the Project shall be performed in good and workmanlike manner. If
Lender’s Engineer reasonably determines that any work or materials do not conform to the approved Construction
Documents or sound construction practices, or otherwise depart from any of the requirements of this Agreement, Lender may
require the work to be stopped and withhold any Advances until the matter is corrected. In such event, Borrower will promptly
correct, or cause EPC Contractor and any Subcontractors to correct, the work to Lender’s satisfaction.

 

Section 7.06. Preservation
of Legal Existence. Borrower shall preserve and maintain its legal existence as presently constituted and all of its rights,
privileges, licenses, qualifications, patents and franchises; provided, however, that Borrower shall not be required to preserve
any such rights, privileges, licenses, patents, and franchises if (a) its board of directors, general partner, manager, managing
partner or other governing body shall reasonably determine that the preservation thereof is no longer beneficial in the conduct
of the current business of Borrower and (b) the loss thereof does not decrease the value of the Collateral or is not otherwise
disadvantageous in any material respect to Lender or the its rights hereunder.

 

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Section 7.07. Maintenance
of Properties, Operation, Etc. Borrower shall maintain and preserve all of its assets necessary or useful in the proper
conduct of its business in good working order and condition, ordinary wear and tear excepted, and shall operate the Project, or
ensure that the Project is operated, in a commercially reasonable manner. Without limiting the generality of the foregoing, Borrower
further covenants and agrees that:

 

		(a)	Borrower shall use, operate, service, maintain, repair and store the Equipment,
Materials and other portions of the Project in accordance with: (i) its design and originally intended purpose so as to subject
it only to ordinary wear and tear; (ii) the original equipment manufacturer recommendations and manuals (such as the Caterpillar
Application Guidelines, Operation and Maintenance Manuals and related Service Bulletins available with respect to the Equipment),
including operation and maintenance guidelines, scheduled oil sampling and coolant analysis as recommended by the manufacturer;
(iii) all Applicable Laws; (iv) all requirements of any insurance maintained hereunder; and (v) the prudent practice of other similar
companies in the same business as Borrower.

 

		(b)	Without limiting Borrower’s obligations under Section 7.07(a), Borrower
expressly covenants and agrees to: (i) maintain the O&M Agreement in full force and effect at all times until its Obligations
are fully paid and performed; and (ii) maintain the Performance Guarantee Agreement in effect for two (2) years following Power
Substantial Completion.

 

		(c)	Borrower shall cause copies of all test reports related to the Equipment to
be provided directly to Lender’sEngineer.

 

Section 7.08.
Support Documents; Required Fuel Supply Agreements; Additional Covenants.

 

		(a)	Support Documents. Until its Obligations are fully paid and performed,
Borrower shall maintain each of the Support Documents in full force and effect.

 

		(b)	Required Fuel Supply
Agreements Generally. For purposes of clarity, the parties expressly agree that Fuel Supply Agreements which do not constitute
Required Fuel Supply Agreements (as hereinafter defined) also do not constitute Support Documents. As used herein, the term “Required
Fuel Supply Agreements” means one or more Fuel Supply Agreements that satisfy the following requirements: (i) such
Fuel Supply Agreements have a minimum term of not less than the term of the Term Note; (ii) the collective projected Revenues
from such Fuel Supply Agreements, when combined with Revenues projected under the Power Purchase Agreement and Compost Agreement
(in each case, as determined by the Financial Model then in effect), shall be not less than one hundred and five percent (105%)
of the sum of the amounts to be transferred from the Revenue Account for operating expenses and payment Obligations owed by Borrower
to Lender (as more accurately described in Sections 4(a) through 4(e) of the Cash Application Hierarchy Provisions, inclusive);
(iii) such Fuel Supply Agreements shall provide the Project the same quantity and same ratio of types of feedstock as specified
by the Project’s design parameters stated in the EPC Agreement, including as described in Annex 6 (Laboratory analysis of
substrates) and Annex 14 (Table of Quality and Quantity of Substrates Deviances) thereto, and as required by the then-current
Financial Model; (iv) such Fuel Supply Agreements shall include a clear description of the quantity, quality and appropriate damages
addressing receipt of less than desired amounts and qualities (it being acknowledged that this subsection (iv) does not require
a liquidated damages provision as a remedy); (v) such Fuel Supply Agreement shall include satisfactory provisions for the stated
price per ton of feedstock provided; (vi) such Fuel Supply Agreements are with counterparties acceptable to Lender and are otherwise
in a form and substance acceptable to Lender; and (vii) such Fuel Supply Agreements are subject to Required Consents. For purposes
of illustration and not of limitation, so long as Required Fuel Supply Agreements are in effect that satisfy this Section 7.08(b),
Borrower may, without Lender’s prior written consent, terminate any other Fuel Supply Agreements that are not Required Fuel
Supply Agreements.

 

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		(c)	Additional Covenants for all Support Docu ments and all Fuel Supply Agreements. Borrower
covenants and agrees that, until its Obligations are fully paid and performed: (i) Borrower shall promptly notify Lender of any
expiration or termination of any Support Document (and any Fuel Supply Agreement whether or not it constitutes a Support Document);
(ii) prior to any termination or expiration of a Support Document that may be terminated in accordance with the terms of this Agreement,
Borrower shall provide Lender with: (A) executed documentation renewing such agreement or an executed replacement agreement (the
form of, and counterparty to, any such renewal or replacement agreement to be satisfactory to Lender); and (B) in the event of
any replacement agreement approved in accordance with the terms hereof, a Required Consent in form and substance satisfactory to
Lender if such Support Document is not, in the opinion of Lender, already addressed by a Required Consent received by Lender, duly
executed by such counterparty and Borrower (for purposes of clarity, Required Consents are not required with respect to any Fuel
Supply Agreement that does not constitute a Required Fuel Supply Agreement under Section 7.08(b) hereof); and (iii) prior to execution
of any Support Document (or any Fuel Supply Agreement whether or not it constitutes a Support Document) or any amendment, modification
or waiver with respect to any Support Document (or any Fuel Supply Agreement whether or not it constitutes a Support Document),
Borrower shall provide copies of such proposed agreement or amendment, modification, waiver or other related documentation to Lender
for review together with such other information regarding such agreement and the counterparty thereto as Lender may request.

 

Section 7.09.
Mechanics’ Liens. Borrower shall pay when due all claims and demands of mechanics, materialmen, laborers, and
others for any work performed or materials delivered for the Project (subject to Borrower’s Contest Rights). If Borrower
shall fail to immediately discharge or provide security against any such claim or demand as aforesaid, Lender may do so and any
and all expenses incurred by Lender shall be immediately paid by Borrower on demand and shall be subject to late payment fees and
interest in accordance with Section 13.10 hereof.

 

Section 7.10. Maintenance of
Records and Books of Account. Borrower shall keep accurate records and books of account, in accordance with GAAP consistently
applied.

 

Section 7.11. Discharge of
Indebtedness. Borrower shall promptly pay and discharge when due any and all Indebtedness and lawful claims (subject to
Borrower’s Contest Rights).

 

Section 7.12.
Evidence of Ownership. Borrower shall deliver to Lender at any time or times, upon request of Lender, all invoices,
bills of sale, or other documents, as deemed necessary by Lender to evidence Borrower’s ownership of any and all of the assets
then being used by Borrower in its business.

 

Section 7.13.
Uninsured Loss. Borrower shall give Lender written notice of any uninsured loss suffered by Borrower through fire, theft,
liability, or property damage in excess of an aggregate of Twenty-Five Thousand Dollars and 00/100ths ($25,000.00).

 

Section 7.14.
Damage or Destruction. If the Project is damaged or destroyed by casualty of any nature, within thirty (30) days thereafter
Borrower shall restore, or cause EPC Contractor or its Subcontractors to restore, via a process acceptable to Lender, the Project
to the condition in which it was before such damage or destruction. Lender shall not be obligated to make further Advances under
this Agreement until such restoration has been accomplished. All insurance proceeds shall be paid to Lender. If no Event of Default
has occurred and is continuing at the time of any such casualty, Lender shall cooperate with Borrower in good faith to pay such
monies to the applicable vendor or repair personnel, as reimbursement to Borrower, or otherwise once Lender reasonably determines
the applicable property has been adequately repaired or replaced, or that an acceptable process has been commenced to restore or
repair such property. If an Event of Default has occurred and is continuing at the time of any such casualty or the damaged property
is not repaired or replaced in accordance with the terms hereof within thirty (30) days from the date of such casualty, Lender
may, in its discretion, apply any insurance monies so received to payment of any of the Obligations, in any order that Lender determines,
whether or not due, and shall remit any surplus to Borrower.

 

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Section 7.15.
Projected Cost Overruns. If Lender’s Engineer at any time determines (such determination shall be final and conclusive)
that the remaining Project Costs will exceed the sum of the remaining amount Lender would be required to advance, then within ten
(10) days after receipt of a written request from Lender, Borrower shall provide information regarding the Estimated Project Costs,
and the provisions of Section 2.02(a) shall apply. In making such determination, Lender shall have sole discretion with respect
to anticipated transaction costs which may accrue prior to the Conversion Date but shall look to the Construction Documents and
the opinion of Lender’s Engineer for relevant construction costs and such other objective criteria as Lender deems to be
applicable. If Borrower at any time determines that the total costs of completing the Project will exceed the amount set forth
above, it shall promptly send written notice to Lender and shall, within ten (10) days of its discovery thereof, provide information
regarding the Estimated Project Costs and the provisions of Section 2.02(a) shall apply.

 

Section 7.16. Increased
Costs; Reduced Returns due to Certain Events. If at any time after the date hereof, a Market Disruption Event (as hereinafter
defined) has occurred, Lender may modify the interest rate applicable to the Obligations of Borrower, including the interest rates
due under the Note then in effect, to be equal to the sum of (a) the Base Rate (which shall remain subject to adjustment as set
forth in Section 2.04 hereof); (b) a percentage determined by Lender; and (c) the interest rate determined by Lender to be its
then current Borrowing Costs (as defined below), from whatever sources it may reasonably select. As used herein, a “Market
Disruption Event” means (i) any event, development or circumstance (including any change in the financial markets)
occurring before the Conversion Date that in Lender’s reasonable judgment had or would reasonably be expected to cause or
result in Lender being unable to obtain funds at the Borrowing Costs (as hereinafter defined) it assumed when calculating the original
interest rate under the Construction Note, or (ii) Lender being unable to determine with reasonable certainty before the Conversion
Date the interest rate under the Construction Note pursuant to the methodology set forth in the Transaction Documents. As used
herein, “Borrowing Costs” means, as of the date of calculation, the interest rate Lender estimates it
paid to borrow funds used to fund financing transactions. For purposes of clarification, Borrowing Costs may represent a blended
rate of interest representing the interest rates payable under a variety of funding options. If Lender provides Borrower a notice
of a Market Disruption Event and an increase in the interest rates, Borrower may, provided that no Default has occurred, prepay
the entire balance due under the Note if such prepayment is made within one hundred and twenty (120) days of the date of such notice.
If Borrower elects to prepay such balance after such 120-day period, such prepayment shall be made in accordance with Section 2.09
of this Agreement (without premium or penalty). No failure by Lender to immediately demand payment of any additional amounts payable
hereunder shall constitute a waiver of Lender’s right to demand payment of such amounts at any subsequent time. Nothing herein
contained shall be construed or so operate as to require Borrower to pay any interest, fees, costs, or charges greater than is
permitted by Applicable Law.

 

Section 7.17.
Force Majeure Event. In the event that for any period of time after the date of Power Substantial Completion, the Project
is completely inoperable due to the occurrence of a Force Majeure Event, Borrower shall immediately notify Lender of such Force
Majeure Event in reasonable detail. Borrower’s obligations to make principal and interest payments under the Term Note shall
be suspended from the date of such notice until the Reinstatement Date (as hereinafter defined); provided, however, that Borrower
shall at all times use all reasonable efforts to ensure that the Project commences partial operation, as well as full operation,
as soon as possible after the Force Majeure Event occurs. Borrower shall provide Lender with periodic updates, at such intervals
as Lender may request, but in no event less frequently than monthly, on the status of the Force Majeure Event and the steps that
Borrower is taking to restore the Project to full operation. Upon the Reinstatement Date, payment of obligations under the Term
Note shall be reinstated in full and the balance including all accrued interest will be re-amortized over the remaining term of
such Term Note. Borrower shall execute a replacement Term Note or other documentation required by Lender to evidence the amended
payment obligations. As used herein, the “Reinstatement Date” means the date which is the earlier of:
(a) the sixty-first (61st) day after the Force Majeure Event occurs or (b) the date the Project commences partial or
full operation, as determined by Lender’s Engineer in its sole discretion.

 

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Section 7.18. Financial
Condition; Accuracy of Information. Borrower represents and warrants that: (a) all financial statements furnished to Lender
by or on behalf of Borrower or Pledgor fairly present the financial condition of such Person on the dates thereof and the results
of its operations for the periods then ended, and have been prepared in accordance with GAAP; (b) there are no liabilities of Borrower
or Pledgor, fixed or contingent, which are material and are not reflected in the financial statements or the notes thereto, other
than liabilities arising in the ordinary course of business since the date of the last financial statement; (c) the financial statements
do not contain any untrue statement of a material fact or omit a material fact necessary to make the statements contained herein
or therein not misleading; and (d) all written information supplied to Lender by or on behalf of Borrower or Pledgor pursuant to
the terms of this Agreement is true and correct in all material respects. As used in this Section, information includes original
written copies, printed copies, or copies provided electronically by analog, digital, electronic, telephone, magnetic, mechanical,
optical, chemical, electromagnetic, electromechanical, electrochemical, or other similar means, whether or not sent by mail, courier,
delivery service, telephone, facsimile, telegraph, Internet, or any other means.

 

Section 7.19. Deferred
Permits and Related Rights. Borrower covenants and agrees to obtain Deferred Permits and Related Rights on or before the
earlier of: (a) the date (or, if applicable, the phase of construction) set forth in Schedule 6; and (b) the date
necessary under Applicable Law, the Construction Documents or the Support Documents. Borrower acknowledges and agrees that all
such Deferred Permits and Related Rights shall be in form and substance acceptable to the Lender.

 

ARTICLE VIII

Negative Covenants

 

So long as this Agreement
remains in effect, Lender shall have any commitment hereunder or under any of the other Transaction Documents, or Borrower shall
have any unfulfilled or undischarged Obligations, including any Indebtedness evidenced by all Notes, Borrower agrees that, without
the prior written consent of Lender:

 

Section 8.01. Sale
of Assets. Borrower shall not sell, lease, assign, transfer or otherwise dispose of any of the assets being used in Borrower’s
business, except that such restriction shall not be applicable to sales of assets in the ordinary course of Borrower’s business
or any disposition of any other assets or retired property which could not reasonably be expected to be used or useful in Borrower’s
business and which Lender determines to be immaterial to the Project’s continued operation and value.

 

Section 8.02. Additional
Indebtedness. Borrower shall not, without the prior written consent of Lender, incur any Indebtedness other than Indebtedness
to Lender or amounts due to EPC Contractor for work performed under the EPC Agreement paid in the normal course of business provided,
however, Lender shall not unreasonably withhold its consent with respect to Indebtedness owed to an Affiliate of Borrower (“Permitted
Intercompany Indebtedness”) so long as: (a) the amount, term, payment frequency, amortization and other provisions
relating to such Permitted Intercompany Indebtedness are in form and substance satisfactory to Lender; (b) the Permitted Intercompany
Indebtedness is expressly subordinated to the Obligations of Borrower to Lender pursuant to a subordination agreement in form and
substance satisfactory to Lender; (c) the Permitted Intercompany Indebtedness is not secured by any real or personal property of
Borrower; and (d) the party to whom such Permitted Intercompany Indebtedness is owed: (i) may only accept regularly scheduled payments
in the ordinary course of business from Borrower so long as no Default has occurred and is continuing hereunder an any such payments
must be made from amounts available to Borrower at the end of the cash application hierarchy from the Revenue Account set forth
in the Cash Application Hierarchy Provisions; and (ii) grants to Lender a Security Interest in all of its rights against Borrower
with respect to such Permitted Intercompany Indebtedness.

 

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Section 8.03. Consolidation
and Merger; Change of Structure. Borrower shall not: (a) consolidate with or merge into any Person, or permit any other
Person to merge into it, or acquire (in a transaction analogous in purpose or effect to a consolidation or merger) all or substantially
all the assets of any other Person; (b) change its legal name, state of organization, or organizational structure; or (c) allow
the Membership Interests to be transferred (including by operation of law) except in connection with the Permitted Ownership Acquisition.

 

Section 8.04. Restrictions on Nature of
Business. Borrower shall not engage in any line of business materially different from that in which it is presently engaged.

 

Section 8.05. Liens
and Encumbrances. Borrower shall not permit or suffer to exist or to be created any Lien upon the Equipment, Materials
or any portion of the Project or any other Collateral, including the Membership Interests, other than Permitted Liens.

 

Section 8.06. Investments,
Loans and Guarantees. Borrower shall not loan funds to any Person, whether by way of loan, stock purchase, capital contribution
or otherwise, or incur any Indebtedness with respect to the obligations of any Person, or acquire by purchase of stock or by purchase
of assets in exchange for cash, shares of capital stock, or other securities of Borrower or any other Person, all or any substantial
division or portion of the assets and business of any other Person.

 

Section 8.07. Mechanical
Completion. Borrower shall not use or allow the use of the Equipment, Materials or other components of the Project to provide
power (whether for testing or otherwise) until: (a) EPC Contractor shall have executed and delivered to Borrower a Certificate
of Mechanical Completion; (b) Borrower shall have executed and delivered to Lender such Certificate of Mechanical Completion; and
(c) Lender’s Engineer shall have advised Lender of his acceptance of such Certificate, as evidenced by his countersignature
in the place designated therein.

 

Section 8.08. Termination
or Changes to Support Documents or Construction Documents. Except for Permitted Changes, Borrower shall not direct, consent
to or agree to any amendment, modification, supplement, waiver, consent in respect of, suspension of work under, termination, renewal
or extension of, or assignment, delegation or transfer of any material right, obligation or benefit under, any Support Document
or Construction Document without the prior written consent of Lender. Without limiting the foregoing, Borrower covenants and agrees
that: (a) all requests for changes in any Support Document or Construction Document must be in writing, signed by Borrower, and
delivered to Lender for its approval; (b) Borrower will not permit the performance of any work pursuant to any change order or
modification of any Construction Document other than Permitted Changes without the prior written approval of Lender; and (c) Borrower
will obtain any required permits or authorizations from Governmental Authorities having jurisdiction before requesting an amendment,
including a change order to any Construction Documents. Within ten (10) Business Days of receipt by Lender of such request, Lender
shall either (i) approve or deny such request; or (ii) request additional information from Borrower.

 

Section 8.09. Submission
of Certificates of Mechanical, Substantial and Final Completion. Borrower shall not submit to Lender any Certificate of
Mechanical Completion, Certificate of Biogas Substantial Completion, Certificate of Power Substantial Completion, or Certificate
of Final Completion unless Borrower reasonably believes the certifications of EPC Contractor thereunder are true and correct and
that all conditions precedent in the EPC Agreement with respect to the issuance of such certificates have been satisfied in full.
In the event Borrower becomes aware of material inaccuracies or the failure of such conditions precedent described above after
submission of such certificates to Lender, Borrower shall promptly notify Lender of the same.

 

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Section 8.10. Bonds
and Insurance. Following the execution date of this Agreement, Borrower shall not allow any construction or work to be
performed by third parties, including EPC Contractor and any Subcontractors, unless and until all bonds required pursuant to Sections
3.02 and 4.01(c) hereof and all insurance required pursuant to Article XII have been obtained and are in full force are effect.
In the event, before the execution date of this Agreement, construction or work is performed by EPC Contractor prior to delivery
of the bonds required pursuant to Sections 3.02 and 4.01(c), Borrower shall also assure that any such bonds address payment and
performance of such prior construction or work.

 

Section 8.11. Tax
Credits. Borrower shall not take, or permit to be taken, any action that would cause the Tax Credits to be subject to a
Tax Credit Recapture Event (or other disallowance claim), including issuance, sale, assignment or transfer of any direct or indirect
ownership interest in Borrower to any Disqualified Person.

 

ARTICLE IX

Events of Default, Rights,
and Remedies

 

Section 9.01. Events
of Default by Borrower. The following events shall each constitute an “Event of Default” under
this Agreement:

 

		(a)	Borrower shall fail to make payment of any amounts due under any Note at the time and in the manner
specified;

 

		(b)	Any: (i) material representation made by Borrower herein or by Borrower or Pledgor in any other
Transaction Document to which it is a party shall prove to be incorrect or misleading in any material respect when made or deemed
made; or (ii) any warranty made by Borrower herein or by Borrower or Pledgor in any other Transaction Document to which it is a
party shall prove to be incorrect or misleading in any material respect when made or deemed made; provided, however that if the
breach with respect to such warranty is capable of being corrected to the reasonable satisfaction of Lender, it shall not be an
Event of Default if such breach is corrected within fifteen (15) days after the date that such Person or any officer of such Person
shall have actual knowledge of incorrect or misleading warranty;

 

		(c)	Borrower breaches any covenant, representation or warranty set forth in Sections 7.02, 7.07(b),
7.08, 7.18, 8.01, 8.02, 8.03, or 8.05 through 8.09, inclusive;

 

		(d)	Borrower or Pledgor defaults in the performance of, or commits any breach of, any covenant or agreement
of Borrower herein or in any other Transaction Document to which such Person is a party (other than a default which is dealt with
specifically elsewhere in this Section 9.01 or in such Transaction Document) and any such default shall continue for fifteen (15)
days unremedied after written notice of such default by Lender to such Person, or if Borrower or Pledgor fails to give any notice
required hereunder or under any other Transaction Document to which such Person is a party within fifteen (15) days after the date
that such Person or any officer of such Person shall have actual knowledge of the event, condition or occurrence that requires
such Person to provide such notice to Lender;

 

		(e)	A default occurs under any bond, debenture, note or other evidence of Indebtedness of Borrower
or under any indenture or other instrument under which any such evidence of Indebtedness has been issued or by which it is governed
(without implying the consent of Lender to the existence or creation thereof);

 

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		(f)	EPC Contractor breaches or otherwise fails to perform any of its obligations to Lender or Borrower
unless, within thirty (30) days of the date notice is provided to the Borrower, or the date of Knowledge of such breach, either:
(i) such breach has been cured or (ii) Borrower replaces EPC Contractor with a counterparty, and pursuant to an agreement, that
are both acceptable to Lender (including replacement Acceptable Credit Support); and Lender also receives, prior to expiration
of such thirty (30) day period, a Required Consent in form and substance satisfactory to Lender;

 

		(g)	EPC Contractor abandons the construction or installation of the Equipment, Materials or any materially
significant part of the Project unless, within thirty (30) days of the date notice is provided to the Borrower, or the date of
Knowledge of such abandonment Borrower replaces the EPC Contractor with a counterparty, and pursuant to an agreement, that are
both acceptable to Lender (including replacement Acceptable Credit Support); and Lender also receives, prior to expiration of such
thirty (30) day period, a Required Consent in form and substance satisfactory to Lender;

 

		(h)	Either: (i) An event of default occurs under the EPC Agreement; or (ii) the construction contemplated
under the EPC Agreement is: (A) permanently cancelled at any time prior to the Final Completion; or (B) for reasons other than
Force Majeure Event, materially delayed;

 

		(i)	A default occurs under an applicable document with the holder of any Lien on the Collateral (without
implying the consent of Lender to the existence or creation of any Lien other than Permitted Liens), whether such Lien is superior
or subordinate to Lender’s Lien on the Collateral, and such default is not cured within any applicable grace or cure period
set forth in the applicable document or such holder institutes foreclosure or other proceedings for the enforcement of its remedies
thereunder;

 

		(j)	The Interconnection Agreement or O&M Agreement is terminated;

 

		(k)	The Performance Guarantee Agreement is terminated before the second anniversary of the date of
Power Substantial Completion;

 

		(l)	O&M Contractor breaches or otherwise fails to perform any of its obligations to Lender or Borrower
unless, within thirty (30) days of the date notice is provided to the Borrower, or the date of Knowledge of such breach, either:
(i) such breach has been cured or (ii) Borrower replaces O&M Contractor with a counterparty, and pursuant to agreements, that
are in each case acceptable to Lender (including replacement Acceptable Credit Support); and Lender also receives, prior to expiration
of such thirty (30) day period, a Required Consent in form and substance satisfactory to Lender;

 

		(m)	Any Construction Document or Support Document (other than the Interconnection Agreement, the O&M
Agreement or the Performance Guarantee Agreement) is terminated unless (i) otherwise expressly allowed in accordance with the terms
hereof; or (ii) Borrower replaces such agreement with a similar agreement with another party within thirty (30) days and: (A) such
agreement and counterparty are both acceptable to Lender (including replacement Acceptable Credit Support); and (B) Lender also
receives, prior expiration of such thirty (30) day period, a Required Consent in form and substance satisfactory to Lender if such
replacement agreement is not, in the opinion of Lender, already addressed by a Required Consent received by Lender, duly executed
by such counterparty and Borrower (for purposes of clarity, Required Consents are not required with respect to any Fuel Supply
Agreement that does not constitute a Required Fuel Supply Agreement under Section 7.08(b) hereof);

 

		(n)	An
                                         event of default occurs under any Support Document after giving effect to any notice
                                         and cure periods thereunder; provided, however, that it shall not be an Event of Default
                                         hereunder if: (i) the Support Document is not the O&M Agreement or Performance Guarantee
                                         Agreement; (ii) it is the counterparty to such Support Document (rather than Borrower)
                                         that is in default under such Support Document; (iii) the counterparty to such Support
                                         Document is substantially performing all material obligations under such Support Document;
                                         (iv) such breach or default is susceptible of cure within 30 thirty
                                         (30) days the expiration of the initial cure period (the “Extended Cure Period”);
                                         (v) Borrower is proceeding with diligence and in good faith to cause the counterparty
                                         cure such breach or default within such Extended Cure Period; and (vi) such default is
                                         cured within such Extended Cure Period;

 

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		(o)	Borrower, Pledgor or any counterparty to any Support Document consents to the appointment of, or
a court appoints, a custodian, receiver, liquidator, or trustee for any such Person or any of its assets; or an order for relief
in respect of any such Person shall be entered under any bankruptcy laws; or any of its assets shall be sequestered by court order;

 

		(p)	Borrower, Pledgor or any counterparty to any Support Document files a petition for voluntary bankruptcy
or a petition is filed against any such Person, or any such Person seeks relief under any provision of any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, dissolution, or liquidation law of any jurisdiction;

 

		(q)	Borrower, Pledgor or any counterparty to any Support Document makes a general assignment for the
benefit of its creditors, or admits in writing it inability to pay its debts as they become due;

 

		(r)	There is a cessation of a substantial part of the business of Borrower, including loss or suspension
of any Permits and Related Rights at the Project, for a period which significantly affects Borrower’s ability to continue its business
on a profitable basis; or Borrower suffers the loss or revocation of any license or permit now held or hereafter acquired by Borrower
which is necessary to the continued lawful operation of it business; or Borrower shall be enjoined, restrained, or in any way prevented
by court, governmental, or administrative order from conducting all or any material part of its business; or any lease or agreement
pursuant to which Borrower leases, uses, or occupies any property shall be cancelled or terminated prior to the expiration of its
stated term and such termination shall have a material adverse effect; or any material part of its Collateral shall be taken through
condemnation or the value of such Collateral shall be impaired through condemnation;

 

		(s)	Any Governmental Authority or other Person purporting to be, or acting as, any Governmental Authority
condemns, seizes, or otherwise expropriates all or any substantial part of the Collateral or other assets of the Borrower or assumes
custody or control of such Collateral or other assets or of the business or operations of the Borrower which would prevent the
Borrower from carrying on its Obligations under the Transaction Documents, and such condemnation, seizure, expropriation, assumption,
action or implementation is not withdrawn, rescinded, reversed, or in the case of any such action with respect to the Collateral
or assets the same are not replaced with equivalent Collateral or assets within thirty (30) days;

 

		(t)	Borrower or Pledgor challenges or contests in any action, suit, or proceeding the validity, legality,
and enforceability of any Transaction Document, Obligations, or perfection or priority of any Lien granted for the benefit of Lender;

 

		(u)	The Project or any part thereof is sold, transferred, assigned, or otherwise disposed of by Borrower
without the consent of Lender, or any material part thereof is lost, stolen, materially damaged, levied on, seized, or attached
(other a sales of assets in the ordinary course of Borrower’s business or any disposition of any other assets or retired property
which could not reasonably be expected to be used or useful in Borrower’s business and which Lender determines to be immaterial
to the Project’s continued operation and value);

 

		(v)	Any insurance policy required under Article XII lapses;

 

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		(w)	The Debt Reserve Service Account: (i) is not funded in an amount equal to at least the Debt Service
Reserve Required Balance at the time required pursuant to Section 2.07(b); or (ii) falls below the Debt Service Reserve Required
Balance for a period exceeding sixty (60) days;

 

		(x)	The Major Maintenance Reserve Account: (i) is not funded in an amount equal to at least the Major
Maintenance Reserve Required Balance at the time required pursuant to Section 2.07(b); or (ii) thereafter falls below the Major
Maintenance Reserve Required Balance for a period exceeding sixty (60) days;

 

		(y)	Lender receives notice from the issuer of any Contingency Letter of Credit provided pursuant to
Section 2.07(c) hereof that such letter of credit shall not be renewed and Borrower fails to deliver a substitute Contingency Letter
of Credit at least fifteen (15) days prior to the date that such Contingency Letter of Credit shall expire;

 

		(z)	A sale, hypothecation or other disposition of the beneficial interest in any class of Membership
Interest of Borrower without the prior written consent of Lender, which consent shall not be unreasonably withheld or delayed;

 

		(aa)	An Event of Default occurs under the Pledge Agreement or any other Transaction Document;

 

		(bb)	Borrower has knowledge of any circumstance or event which would reasonably be expected to result
in any Tax Credit Recapture Liability, unless Borrower has established within ten (10) days, to Lender’s reasonable satisfaction,
reserves to cover the reasonably anticipated amount of the Tax Credit Recapture Liability, which such reserves shall be: (i) funded
from cash resulting from an addition to equity (not from funds obtained by Borrower pursuant to any loans or other arrangements
evidencing Indebtedness of Borrower); and (ii) deposited in a segregated account pledged to Lender and subject to a Control Agreement;

 

		(cc)	Any Tax Credit Recapture Liability shall have been assessed against Borrower or otherwise in respect
of the Project, pursuant to a written demand issued by the United States Treasury Department, if Borrower fails to pay, or cause
to be paid (from cash resulting from an addition to equity (not from funds obtained by Borrower pursuant to any loans or other
arrangements evidencing Indebtedness of Borrower)) such Tax Credit Recapture Liability in full on or prior to the deadline for
payment thereof (as set forth in such notice or demand of the United States Treasury Department, if applicable); or

 

		(dd)	A Material Adverse Event occurs with respect to Borrower or Pledgor.

 

Section 9.02.
Rights and Remedies Upon Event of Default. Lender shall have any and all remedies existing at law or in equity, and
shall have the right, at its sole option, at any time upon the occurrence of an Event of Default, to exercise any or all of such
remedies concurrently, successively, or separately, without notice to Borrower (unless specifically stated herein). Without limiting
the foregoing or any other remedies under this Agreement or in any other Transaction Document, upon the occurrence of an Event
of Default, Lender may, at its election, and without notice and without demand, requirements of which Borrower expressly waives,
do any one or more of the following, all of which are authorized by Borrower:

 

		(a)	Declare all Obligations, including Obligations under the Note, immediately due and payable, including
a prepayment fee equal to the Prepayment Calculation Rate times the amount of the Obligations under the Note;

 

		(b)	Proceed by court action to enforce performance by Borrower of the covenants and terms of this Agreement
or any other Transaction Document, including the Land Documents;

 

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		(c)	Consistent with the requirements of the UCC and other Applicable Law, without legal proceedings
or notice to Borrower, enter the premises, take possession of, disable, or remove and retain the Equipment or any or all other
Collateral and realize upon any of the Collateral, including, to the extent permitted by law: (i) leasing, selling or disposing
of the Collateral at either a public or private sale for credit or cash at such price as Lender may select (at which sale Lender
may be the purchaser) and with or without the Collateral being present; (ii) applying the proceeds of any sale or other disposition
of the Collateral first to the payment of all expenses of Lender in repossessing, keeping, removing, and disposing of the Collateral,
any brokerage or commission fees due to third parties, the expenses of liquidating any items, or claims upon the Collateral and
all expenses for necessary or desirable repairs, all court costs and Attorneys’ Fees if any are incurred (or allowed by statute
and at the highest rate allowable), then, to the reimbursement of Lender for the amount of any Obligations of Borrower paid or
discharged by Lender pursuant to the provisions of this Agreement, and of any expenses of Lender payable by Borrower hereunder;
then to the satisfaction of the Obligations in such order as Lender shall elect; any surplus to be paid to Borrower or otherwise
as required by law and if the proceeds from the disposition of the Collateral shall fail to satisfy all amounts due to Lender hereunder
Borrower shall be liable for any deficiency; and (iii) at its option and in lieu of sale or other disposition, retaining the Collateral
in full or partial satisfaction of all obligations hereunder, upon giving any notice required by law;

 

		(d)	With or without taking possession of the Collateral, take legal proceedings for: (i) the specific
performance of any covenant or agreement contained herein or in any other Transaction Document, or the execution of any right or
power granted herein or therein; (ii) foreclosure under this Agreement or under any other Transaction Document; (iii) the sale,
under the judgment or decree of any court of competent jurisdiction, of all or any part of the Collateral; (iv) the appointment
of a receiver or receivers of all or any part of the Collateral pending any foreclosure hereunder or the sale or other disposition
of all or any part of the Collateral, by any court of competent jurisdiction or under executory or other legal process; (v) the
recovery of the unpaid balance of Borrower’s Indebtedness under the Note, this Agreement, or any other Transaction Document or
of any other Obligations of the Borrower; and (vi) the enforcement of any other appropriate remedy under this Agreement or any
other Transaction Document;

 

		(e)	Immediately draw from any of the Required Accounts the amount owed by Borrower and apply said amount
to the Obligations;

 

		(f)	Immediately draw upon any Contingency Letter of Credit and apply said amount to the Obligations;

 

		(g)	in the name of Borrower, demand, sue for, collect, compromise or receive any money or property
at any time payable to or receivable by Borrower or enforce any rights of Borrower under the Support Documents, Construction Documents
or other Collateral, including any Acceptable Credit Support provided in connection therewith;

 

		(h)	Require Borrower to assemble all records and all documents, which comprise any Collateral or evidence
ownership or disposition of any Collateral, or any part thereof, and to make them available to Lender at any place reasonably designated
by Lender and convenient to Lender;

 

		(i)	Receive all Revenues which would otherwise be payable to Borrower, for application to the amount
due and payable to Lender, with any excess being remitted in accordance with the requirements of the UCC or other Applicable Law;

 

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		(j)	As Borrower’s attorney-in-fact, request any information concerning the Collateral and further endorse
or sign withdrawal documents, checks, or other instruments in Borrower’s name necessary or desirable to withdraw, cash in, remove
or transfer all or any part of the Collateral (whether or not any early withdrawal or similar penalty will be payable thereupon)
into Lender’s name or the name of its nominee or payable to the order of Lender or its nominee and to cause new documents or instruments
evidencing all or any part of the Collateral to be issued in the name of Lender or its nominee;

 

		(k)	Freeze, hold or set off all or any part of the Collateral maintained by Borrower and in the case
of set off, apply all or any part of the Collateral in repayment of the Obligations; and

 

		(l)	Exercise any and all other rights and remedies of a secured party under the applicable UCC.

 

Prior to any
disposition of the Collateral, Lender may, but shall not be required to complete the Project, or assemble, process, repair or recondition,
maintain, store, refurbish, have appraised, or otherwise prepare the Collateral for disposition, and all costs incurred by Lender
in connection with the foregoing shall constitute Obligations owed by Borrower to Lender hereunder. The requirement of reasonable
notification of time and place of any public or private sale or any intended disposition shall be met if notice thereof is mailed,
postage prepaid, to Borrower and any other Person entitled thereto at least ten (10) days prior to such sale or other disposition
of the Collateral. Lender shall have the right to enforce any one or more of the remedies hereunder, either successively or concurrently,
and such action shall not operate to bar or estop Lender from pursuing other remedies that Lender may have hereunder or otherwise,
and any repossession or retaking of all or any part of the Collateral, whether temporary or otherwise, and any sale thereof, pursuant
to the terms hereof, shall not operate to release or discharge Borrower until full payment in cash shall have been made as herein
agreed.

 

Section 9.03.
Additional Construction Remedies. Following the date on which Lender makes an initial Advance, should any one or more
Events of Default occur or exist, or should construction on the Project cease or terminate for in excess of ten (10) days (Force
Majeure Events excepted), Lender may require Borrower to furnish, within ten (10) days after delivery of a written request (Lender
being under no obligation to fund any Advance until adequate security is delivered by Borrower), adequate deposit or other security
to eliminate, reduce, or indemnify Lender against the risk of loss arising from such action, condition or event, danger or default
(such amounts to be determined by Lender). In such event, Lender shall have the further right to (a) cancel, terminate, renegotiate,
amend, modify, compromise or settle, and/or adjudicate any existing construction, architectural, or engineering contracts or other
agreements in connection therewith, including any Construction Documents or Support Documents; (b) engage the services of additional
or substitute contractors, subcontractors, architects, or engineers of Lender’s selection; and (c) perform such other actions as
Lender may deem to be necessary and proper to protect the Security Interest and rights of Lender with regard to the Collateral
as provided herein. To the further extent permitted under Applicable Law, Borrower agrees and consents to all such actions on the
part of Lender following any Event of Default hereunder, with Borrower further releasing Lender, its officers, directors, employees
from any and all liability to Borrower, as well as to Borrower’s officers, directors and shareholders, in connection therewith.
Borrower further agrees not to interfere with the exercise of such rights and remedies, and to provide Lender with such assistance,
documentation, and information as Lender may request.

 

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In
addition, upon such occurrence, Lender may (but shall not be obligated to) advance additional funds or agree to undertake to advance
additional funds to any party to complete the Project or to eliminate, reduce, or indemnify Lender against, such danger. Lender
shall have no obligation to make any such Advance. All sums paid by Lender pursuant to such agreements or undertakings shall be
for Borrower’s account and shall be without prejudice to Borrower’s rights, if any, to receive such funds from the party to whom
paid. All sums expended by Lender in the exercise of its option to complete the Project or protect Lender’s interests shall be
payable to Lender on demand, together with interest from the date of the Advance at the rate or rates applicable under the Note.
The Advance limits established herein are for Lender’s protection only, and nothing herein shall be deemed to limit Lender’s
rights to make any Advances as provided in this Agreement above any loan limit established herein, in such amounts as Lender may
elect. In addition, any Advance of funds under this Agreement, including direct disbursements to parties in payment of sums due
under the EPC Agreement or any other Construction Document, shall be deemed to have been expended by or on behalf of Borrower and
to have been secured by the Collateral.

 

Section 9.04. Status
Quo. If Lender shall have proceeded to enforce any right under this Agreement, and such proceedings shall have been discontinued
or abandoned for any reason or shall have been determined adversely to Lender, then, and in every such case, Borrower and Lender
shall be restored to their former positions and rights hereunder.

 

ARTICLE X

Indemnification

 

Borrower hereby agrees
to defend, indemnify and hold Lender and Lender’s employees, agents, directors, partners, shareholders, officers, members, and
any assignee or secured party harmless from and against: (a) all claims, demands, suits, and legal proceedings (whether civil,
criminal, administrative, investigative, or otherwise), including arbitration, mediation, bankruptcy, and appeal and including
any claims, demands, suits, and legal proceedings (i) related to any Default by Borrower of this Agreement or any other Transaction
Document; (ii) arising out of the manufacture, purchase, financing, ownership, delivery, rejection, non-delivery, possession,
use, transportation, storage, operation, maintenance, repair, return, or other disposition of the Equipment or any other part
of the Project; (iii) by any Governmental Authority or any third party under any Environmental Law, under any common law tort
claim theory applicable to Hazardous Materials or any Hazardous Materials remediation otherwise required to be performed or conducted
under any applicable Environmental Law; and (iv) patent, trademark or copyright infringement (collectively, “Actions”);
and (b) any and all penalties, losses (including Environmental Losses), liabilities (including the liability of Borrower or Lender
for either party’s negligence, tort, and strict liability), damages, costs, court costs, and any and all other expenses (including
Attorneys’ Fees, judgments, and amounts paid in settlement), related to, arising out of or in any way connected with any Actions.
Borrower shall, at Lender’s option, appear and defend any such action and pay the cost of the defense of any such action brought
against Lender, either alone or in conjunction with others, upon any such liability or claim. Borrower shall satisfy, pay, and
discharge any and all judgments and fines that may be recovered against Lender in any such action. The foregoing indemnities are
continuing indemnities and shall survive expiration, termination, or cancellation.

 

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ARTICLE XI

Security Interest

 

Section 11.01. Security
Interest. Capitalized terms used in this Section that are not otherwise defined in this Agreement shall have the meanings
ascribed to such terms in the UCC. Borrower, as collateral security for all of the Obligations, hereby pledges, grants, bargains,
mortgages, transfers, conveys, hypothecates, assigns and sets over to Lender a first priority Security Interest in, and acknowledges
that Lender shall have a continuing Security Interest in, all rights, title and interest of Borrower, whether now existing or
hereafter acquired or arising, in and to the following (all of the foregoing shall be hereinafter collectively referred to as
the “Collateral”): (a) the Project, including (i) the Equipment (as defined in Article I hereof)
and all other parts of the Project (irrespective of whether such Equipment or other parts constitute Equipment (as defined under
the UCC); (ii) any related software (embedded therein or otherwise); and (iii) all accessories, equipment, parts and appurtenances
appertaining or attached to the Project, and all such parts which are at any time removed therefrom so long as title thereto shall
remain vested in Borrower and any and all improvements; (b) all Goods, including Equipment (as defined under the UCC), Inventory,
motor vehicles, Farm Products, Accessions, Fixtures and As Extracted Collateral; (c) all Accounts, General Intangibles (including
Payment Intangibles), Chattel Paper (including Tangible Chattel Paper and Electronic Chattel Paper) and Instruments and other
agreements, documents, contract rights of any kind, character and description, including the Support Documents, any Fuel Supply
Agreements whether or not such agreements constitute Support Documents, the Construction Documents, the Permits and Related Rights,
and any other engineering, architectural, design, or other agreements entered into in connection with the purchase of products
and supplies or the performance of services related to the Project; (d) all Investment Property; (e) all Deposit Accounts; (f)
all Letter of Credit Rights; (g) all Supporting Obligations; (h) all real property, and real property rights owned by Borrower;
(i) all present and future proceeds, increases, and profits; (j) any records and data relating to any of the foregoing, whether
in the form of a writing, photograph, microfilm, microfiche, or electronic media, together with all of Borrower’s right,
title and interest in and to all computer software required to utilize, create, maintain, and process any such records or data
on electronic media; (k) (i) the Required Accounts and any other accounts of Borrower at any financial institution at which the
Required Accounts are maintained; (ii) all money, funds, credits and deposits of Borrower therefor; (iii) all additions and further
deposits to and all interest earned on the accounts and instruments described in subparagraph (k)(i) above; (iv) all renewals,
rollovers, newly assigned account numbers or receipt numbers, reissued or replacement instruments, receipts or certificates for
the accounts and instruments or any portion of the funds represented by the accounts and instruments described in subparagraph
(k)(i) above; (v) all rights to receive any proceeds or distribution from the Federal Deposit Insurance Corporation or any such
successor organization or any other insurance corporation or surety which becomes obligated to pay Borrower upon the closing or
termination of a financial institution; (vi) all deposit accounts of Borrower which may be maintained with or issued by any financial
institution which acquires or merges with the financial institution(s) described in subparagraph (k)(i) above or any successor
or which assumes the assets and liabilities of any such financial institutions; (vii) all general intangibles or payment intangibles
with respect to the foregoing; and (l) any and all present and future all combinations, reclassifications, substitutions, renewals
and replacements of and additions, improvements, products of, accessions and accumulations to any of the Collateral specified
in subsections (a) through (k), inclusive together with all proceeds and products of the foregoing, including the rents, issues,
income, profits, insurance proceeds, condemnation awards and avails thereof and all indemnity, warranty or guaranty payable by
reason of loss or damage to or otherwise in respect of any of the foregoing.

 

Section 11.02. Additional
Provisions regarding Assignment of Support Documents and Construction Contracts. Borrower represents, covenants and warrants
with respect to the Support Documents and the Construction Documents that (a) there has been no prior assignment of the
Support Documents or the Construction Documents to any Person other than Lender and that Borrower has full and absolute title to
the Support Documents and the Construction Documents; (b) the Support Documents and the Construction Documents are enforceable,
valid agreements and are what they purport to be subject to the effect of principles of equity, bankruptcy, and/or similar laws
of general application, now or hereafter in effect, relating to or affecting such enforcement; (c) Borrower is not in default under
any Support Document or any Construction Document; (d) to its knowledge, all material covenants, conditions, and agreements have
been performed as required in the Support Documents and the Construction Documents, except those not due to be performed until
after the date of this Agreement (and such covenants, conditions, and agreements to be performed by Borrower after the date of
this Agreement shall be performed by Borrower as required by the Support Documents and the Construction Documents); and (e) Borrower
is transferring and assigning the Support Documents and the Construction Documents and the obligations thereunder to Lender free
and clear of any and all Liens of Borrower’s own creditors. Lender does not assume the obligations of and shall not be liable for
any defaults by Borrower in the performance of Borrower’s duties under any Support Documents or any Construction Documents.

 

Section 11.03. Purchase
of Materials and Components. No Materials, components, Equipment, fixtures, or articles of personal property placed in
or incorporated into the Project shall be purchased or installed under any security agreement or other agreement whereby the seller
reserves or purports to reserve title or the right of removal or repossession, or the right to consider such items as personal
property after their incorporation into the Project, unless otherwise authorized by Lender in writing.

 

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Section 11.04. Additional
Provisions regarding Required Accounts. In the event that the financial institution with which the Required Accounts are
maintained (a) loses or otherwise has its FDIC insurance coverage terminated; or (b) such financial institution refuses to acknowledge
or recognize Lender’s first priority lien on, and control (for purposes of perfection) over, such Required Accounts or the Collateral
related thereto (as described in Section 11.01(k)), then Borrower agrees upon the request of Lender to transfer such Collateral
to Lender or to such other financial institution which has deposit insurance coverage and which agrees to acknowledge and recognize
Lender’s lien on, and control (for purposes of perfection) over, such Collateral.

 

ARTICLE XII

Insurance

 

Section 12.01. Generally.
All insurance required hereunder shall: (i) be in a form and with companies as Lender shall approve, which companies must
be of a financial strength and size set forth in more detail in the minimum insurance requirements set forth on Exhibit
O attached hereto and incorporated by reference herein (the “Minimum Insurance Requirements”);
(ii) specify Lender as additional insured and loss payee as set forth in the Minimum Insurance Requirements; (iii) be primary,
without right of contribution from any other insurance carried by Lender; (iv) include a waiver of subrogation and (v) provide
that the insurance may not be canceled or altered so as to affect the interest of Lender without at least thirty (30) days prior
written notice to Lender. Borrower shall promptly deliver to Lender evidence of such insurance coverage. Borrower shall not allow
any adjustments to be made with insurers except with Lender’s prior written consent. Borrower hereby appoints Lender as Borrower’s
attorney-in-fact to receive payment of and to endorse all checks, drafts and other documents and to take any other actions necessary
to pursue insurance claims and recover payments if Borrower fails to do so, such power shall be coupled with an interest and shall
be irrevocable for the term of this Agreement. Borrower shall promptly notify Lender of any occurrence, which may become the basis
of a claim and shall provide Lender with all requested pertinent data. Nothing herein shall be deemed in any way to limit Borrower’s
obligations under Article III hereof with respect to Acceptable Credit Support required from EPC Contractor or O&M
Contractor.

 

Section 12.02. Borrower’s
Insurance. For the period beginning on the date the work on the Project commences and ending on the date that all of Borrower’s
obligations under this Agreement and all Notes are fully fulfilled, Borrower, at its expense, shall cause the Project to be insured
for such amounts and against such hazards and risks as Lender may from time to time require, including: (i) special form replacement
cost insurance for damage to the Equipment, Materials and any other part of the Project, which insurance shall not be less than
the amount set forth in the Minimum Insurance Requirements; (ii) commercial general liability insurance insuring against liability
for property damage, death and bodily injury and any other liability resulting from the transportation, construction, ownership,
possession, use, operation, performance, maintenance, storage, repair or reconstruction of the Equipment, Materials and any other
part of the Project which insurance as shall not be less than the amount set forth in the Minimum Insurance Requirements; (iii)
environmental insurance, including pollution, in an amount not less than the amount set forth in the Minimum Insurance Requirements;
(iv) such other insurance, including business interruption insurance, set forth in the Minimum Insurance Requirements; and (v)
such other insurance coverage as may be customarily and reasonably required by Lender, following consultation with Borrower.

 

Section
12.03. EPC Contractor’s Insurance. For the period beginning on the date the work on the Project commences and ending
on the date of Final Completion for said Project, Borrower shall cause EPC Contractor to maintain, at its or Borrower’s expense,
the following insurance in forms and amounts satisfactory to Lender: (i) broad form contractor’s risk insurance and property damage
insurance with respect to the Equipment, Materials and other parts of the Project in an amount not less than the amount set forth
in the Minimum Insurance Requirements; (ii) comprehensive general liability insurance, against property damage, death and personal
injury, in an amount not less than the amount set forth in the Minimum Insurance Requirements; (iii) worker’s compensation
insurance at statutory amounts and Employers’ Liability Insurance in an amount not less than the amount set forth in the Minimum
Insurance Requirements; (iv) environmental insurance, including pollution, in an amount not less than the amount set forth in the
Minimum Insurance Requirements; and (v) such other insurance set forth in the Minimum Insurance Requirements.

 

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ARTICLE XIII

Miscellaneous

 

Section 13.01. No
Waiver; Cumulative Remedies; Time is of the Essence. No failure or delay on the part of Lender in exercising any right,
power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power
or remedy preclude any further exercise thereof or the exercise of any other right, power or remedy hereunder. The remedies herein
provided are cumulative and not exclusive of any remedies provided by or available under law. Borrower acknowledges and agrees
that time is of the essence with respect to payment and performance of the Obligations.

 

Section 13.02. Execution
in Counterparts; Effectiveness. This Agreement and the other Transaction Documents may be executed separately by Borrower,
Lender and the other parties thereto in any number of counterparts, each of which, when so executed and delivered, shall be deemed
to be an original and all of which, taken together, shall constitute but one and the same instrument. This Agreement and each other
Transaction Documents shall become effective when this Agreement or such other Transaction Document, as applicable, has been executed
by Lender (if applicable) and when Lender has received counterparts thereof that, when taken together, bear the signatures of each
of the other parties hereto or thereto, as applicable. The parties intend and agree that, for purposes of enforcing the rights
of Lender against Borrower, a carbon copy, photocopy, facsimile or portable document format (“PDF”) of
this Agreement or any other Transaction Document with applicable signatures thereon shall be deemed to be as binding, valid, genuine,
and authentic as an original-signature document for all purposes, including all matters of evidence and the “best evidence”
rules. At Lender’s request, Borrower, Pledgor or any other counterparty to this Agreement or any other Transaction Document
shall re-execute original forms thereof and deliver them to Lender. No party hereto shall raise the use of a facsimile machine,
PDF or email to deliver a signature or the fact that any signature document was transmitted or communicated through the use of
facsimile machine or email as a defense and each such party forever waives any such defense.

 

Section 13.03. Integration;
Amendments or Modifications. This Agreement, together with the other Transaction Documents, shall constitute the entire
agreement between the parties hereto with respect to the transactions contemplated hereby and shall supersede all other written
or oral agreements, representations, and negotiations with respect to such transactions. No amendment, modification, termination
or waiver of any provision of this Agreement or any other Transaction Documents or consent to any departure by Borrower therefrom
shall be effective unless the same shall be in writing, designated as an amendment to the Agreement or applicable Transaction Document,
and signed by Lender and other applicable parties in a manner consistent with Section 13.02 hereof, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given. No notice to or demand on Borrower
in any case shall entitle Borrower to any other or further notice or demand in similar or other circumstances.

 

Section
13.04. Further Assurances; Power of Attorney. Borrower will, upon demand of Lender, and at Borrower’s sole cost and
expense, do and perform any other act and will execute, acknowledge, deliver, file, register, communicate, record and deposit (and
will re-file, reregister, re-communicate, rerecord or redeposit whenever required) any and all further documents, instruments or
records required by law or requested by Lender including financing statements or other records under the UCC as currently in force
or as subsequently revised or reenacted, mortgages and such other recordations (which Lender shall have the right to file, communicate,
or record wherever and whenever Lender deems prudent) for the purpose of proper protection, to the satisfaction of Lender, of Lender’s
Security Interest in the Collateral or to carry out the provisions of this Agreement. Borrower further authorizes Lender
and irrevocably appoints Lender as its attorney-in-fact (coupled with an interest) to enter ministerial information on this Agreement,
any other Transaction Document, or other writing executed in connection with any of the foregoing, to file financing statements
or to execute and deliver or otherwise authenticate and communicate any writing or record and take any other actions that Lender
deems necessary or desirable or protect Lender’s interest in the Collateral or otherwise under this Agreement or any other Transaction
Document. Borrower further authorizes Lender to transmit and file any such statements, ministerial changes, and other items by
electronic means.

 

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Section 13.05. Assignment
of Rights. All or any of the rights of Lender under this Agreement may be assigned, sold, or transferred by Lender, and
Lender may grant participation in the financing in whole or in part at any time. If notified by Lender, Borrower shall make all
payments due under this Agreement to the party designated without offset or deduction. No assignment of this Agreement, or any
right or Obligation under it, may be made by Borrower or any assignee of Borrower without the prior written consent of Lender.
This Agreement shall be binding upon and benefit Lender and Borrower and their respective successors and assigns. If this Agreement
is assigned by Lender to a partnership or trust, the term “Lender” as used herein shall mean and include the
partnership or trust and shall also include, where applicable, each partner in or beneficiary of the partnership or trust.

 

Section 13.06. Provisions
for Exclusive Benefit of Lender. All conditions to the obligations of Lender to make Advances or other disbursements hereunder,
and all approval rights of Lender and Lender’s Engineer, are imposed solely and exclusively for the benefit of Lender and
its successors and assigns. No other Person shall have standing to require satisfaction of such conditions in accordance with their
terms or be entitled to assume that Lender will refuse to make Advances in the absence of strict compliance with any or all of
such terms and conditions. No other Person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any
or all of which may be freely waived in whole or in part by Lender at any time if it deems it advisable to do so.

 

Section
13.07. Interpretation. Any use of the term “Project” herein shall be deemed to refer equally to the Equipment,
Materials and all other parts of the Project, it being the understanding of the parties that any reference to “Project”
shall not be deemed to prejudice any right of Lender hereunder to require performance as to each and every part of the Project
and any reference to “Equipment” or “Materials” shall not be deemed to prejudice any right of Lender to
require performance as to all of the Project. All references to Sections herein, unless otherwise stated, shall refer to Sections
of this Agreement. The terms “herein” or “hereunder” or like terms shall be deemed to refer to this Agreement
as a whole and not to a particular section. Whenever terms such as “include” or “including” is used in
this Agreement, they mean “include” or “including,” as the case may be, without limiting the generality
of any description or word preceding such term. Whenever the expression “satisfactory to Lender,” “in Lender’s
judgment” or similar words are used or Lender or Lender’s Engineer is granted the contractual or right to choose between
alternatives or to express its opinion, the satisfaction, judgment, choices and opinions are to be made in the sole discretion
of Lender or Lender’s Engineer, as applicable. The captions or headings in this Agreement are made for convenience and general
reference only and shall not be construed to describe, define, or limit the scope or intent of the provisions of this Agreement.
Absent manifest error, the records of Lender shall be conclusive evidence with respect to the matters governed by the Transaction
Documents. As used herein, all masculine pronouns shall include the feminine or neuter, and all singular terms the plural form
thereof, and vice versa. The exhibits annexed hereto are incorporated herein by this reference and made a part hereof as if contained
in the body of this Agreement. Nothing in any Transaction Document is deemed to limit Lender’s rights or Borrower’s
Obligations hereunder or under any other Transaction Document and, in order to clarify the intention of the parties, each of Borrower
and Lender expressly agrees that such documents shall be interpreted collectively in the manner that imposes the maximum restriction
on Borrower and grants to Lender the maximum benefits hereunder and thereunder. All references to sections hereunder shall be deemed
to refer to sections of this Agreement, unless otherwise expressly provided, whether or not “hereof,” “above,”
“below,” or like words are used. Both Lender and Borrower acknowledge that this Agreement has been fully negotiated
between the parties and agree that it shall be construed without regard to any presumptions against the party causing the same
to be prepared. This Agreement amends and restates the Original CFA in its entirety; and is hereby, as amended and restated, ratified
and confirmed in all respect. Unless the context clearly requires otherwise, all references herein to the “date of execution”
or similar references shall be deemed to be references to the Effective Date notwithstanding the date this Amended and Restated
Construction Financing Agreement is executed by the parties. For purposes of clarity, that certain Initial Preliminary Items Agreement,
dated as of October 29, 2013, was part of the Original CFA and no longer has any separate force and effect.

 

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Section 13.08. Right
of Setoff. As collateral security for the repayment of the Obligations of Borrower and liabilities under this Agreement
and the Transaction Documents, Borrower hereby grants to Lender and Lender’s successors and assigns the right to apply, at any
time and from time to time should an Event of Default exist hereunder, any and all obligations owing from Lender, or any Affiliate
of Lender, to Borrower toward repayment of any sums owing from Borrower to Lender hereunder.

 

Section 13.09. Addresses
for Notices, Etc. Except as otherwise expressly provided herein, all notices, requests, demands and other communications
provided for hereunder shall be in writing and sent by certified mail (return receipt requested), by a nationally recognized express
courier service (such as FedEx) or personally served or delivered to the applicable party at its address indicated below:

 

If to Borrower:

 

Orbit Energy Charlotte, LLC

c/o Bluesphere Corporation

301 McCullough Drive, 4th
Floor

Charlotte, NC 28262

Attention: Managing Director

 

If to Lender:

 

Caterpillar Financial Services Corporation

Cat Power Finance - Americas

2120 West End Avenue

Nashville, Tennessee 37203

Attention: Credit Manager

 

or, as to each party, at
such other address or to the attention of such other representative as shall be designated by such party in a written notice to
the other party provided in accordance with the terms of this Section. All such notices, requests, demands, and other communications
shall, when mailed or sent by a courier service, be effective when deposited in the mails or with such courier service, addressed
as aforesaid, except to the extent otherwise provided in Section 13.14 hereof.

 

Section 13.10. Costs
and Expenses. Borrower agrees to pay all costs and expenses in connection with the preparation, negotiation, execution,
delivery, administration, enforcement of, and/or the protection of Lender’s rights under, the Transaction Documents and/or any
other documents to be delivered hereunder, including (a) title insurance premiums, recording and filing fees, transfer or mortgage
taxes, documentary stamp taxes, tax service charges, appraisal fees, surveyor charges, and Lender’s third party fees and (b) Attorney’s
Fees and the reasonable expenses and travel costs incurred by Lender’s Engineer. Borrower also agrees to pay on demand all losses,
costs and expenses, if any (including Attorneys’ Fees and expenses), incurred in connection with the preservation of any
rights of Lender under, or the enforcement of, or legal advice in respect of, the rights or responsibilities of Lender under this
Agreement, the Transaction Documents, and any other documents delivered hereunder including losses, costs and expenses sustained
by Lender as a result of any failure by Borrower to perform or observe its obligations contained herein or any other document related
thereto. In the event that any amount due hereunder or under any other Transaction Document is not paid in full within ten (10)
days of the date due (whether at stated maturity, by acceleration or otherwise), Borrower shall pay to Lender on demand, in each
instance at Lender’s option and to the extent permissible under Applicable Law, five percent (5%) of such amount. Without limiting
the foregoing, beginning on the date that is ten (10) days after the occurrence of such Event of Default and continuing until the
earlier of the date (i) such Event of Default is cured (if such cure is permitted hereunder) or (ii) all Obligations of Borrower
to Lender hereunder have been satisfied, at Lender’s option and to the extent permissible under Applicable Law, interest
shall accrue on all Indebtedness to Lender at a interest rate per annum equal to five percent (5%) per annum above the highest
interest rate set forth in any Note then in effect.

 

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Section 13.11. Binding
Effect, Assignment. This Agreement shall be binding upon and inure to the benefit of Borrower and Lender and their respective
successors and assigns (subject to restrictions in Section 13.05 hereof).

 

Section 13.12. Waiver
of Immunity. Borrower agrees that the activities contemplated by the Transaction Documents are commercial in nature rather
than governmental or public, and therefore agrees that it is not entitled to any immunity or otherwise with respect to such activities
or in any legal action or proceeding arising out of or relating to the Transaction Documents. With regard to this Agreement, Borrower
and Lender hereby waive any right or claims of immunity, which may now or hereafter exist and agrees not to assert any such right
or claim in any action or proceeding in any jurisdiction.

 

Section 13.13. Governing
Law. This Agreement and the Transaction Documents shall be governed by, and construed and enforced in accordance with,
the laws of the State of New York and all disputes between Borrower and Lender arising out of or relating to this Agreement and/or
the Notes shall be governed by the laws of the State of New York, in each case without regard to its conflict of laws provisions
(other than Section 5-1401 of the New York General Obligations Law).

 

Section 13.14. Judicial
Proceedings. Any judicial proceeding brought against Borrower with respect to the Transaction Documents may be brought
in any state or federal court of competent jurisdiction located in the State of New York, and, by execution and delivery of this
Agreement, Borrower accepts, generally and unconditionally, the nonexclusive jurisdiction of such courts, and irrevocably agrees
to be bound by any judgment rendered thereby in connection with this Agreement. Borrower hereby waives personal service of process
and consents that service of process upon it may be made by certified or registered mail, return receipt requested, at its address
specified or determined in accordance with the provisions of Section 13.09, and service so made shall be deemed completed on the
third Business Day after such service is deposited in the mail. Nothing herein shall affect the right to serve process in any other
manner permitted by law or shall limit the right of Lender to bring proceedings against Borrower in the courts of any other jurisdiction.
Borrower hereby waives trial by jury in any judicial proceeding brought by it or Lender involving, directly or indirectly, any
matter in any way arising out of, related to, or connected with this Agreement. Borrower hereby waives, to the fullest extent it
may effectively do so, the defense of an inconvenient forum to the maintenance of any action or proceeding brought in the State
of New York against Borrower with respect to the Transaction Documents.

 

Section 13.15. Severability
of Provisions. Any provision of this Agreement which is prohibited or unenforceable, shall be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining provisions hereof.

 

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Section
13.16. Waiver of Consequential Damages, Etc. Notwithstanding anything to the contrary in this Agreement or any other
Transaction Document, under no condition or cause of action shall Lender be liable for any interruption of service, any loss of
actual or anticipated business or profits or any special, indirect, or consequential damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement, any other Transaction Document or any agreement
or instrument contemplated hereby, the transactions contemplated hereby or thereby, any loan or Advance hereunder or the use of
the proceeds thereof whether such liability arises in contract, tort (including negligence or strict liability), or otherwise.
To the fullest extent permitted by Applicable Law, Borrower hereby agrees that it shall not assert, and Borrower hereby waives,
any and all such claims.

 

Section 13.17. Survival
of Agreements, Representations and Warranties, Etc. All warranties, representations, and agreements made by Borrower herein
or by any Person in any certificate or other document or instrument required to be delivered in connection with this Agreement
shall be considered to have been relied upon by Lender and shall survive the execution and delivery to Lender of this Agreement
regardless of any investigation made by Lender or on its behalf.

 

Section 13.18. Jury
Trial Waiver. BORROWER AND LENDER EACH WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM
OF ANY KIND ARISING OUT OF OR RELATED TO THE COLLATERAL, THIS AGREEMENT OR ANY OF THE OTHER TRANSACTION DOCUMENTS. BORROWER AND
LENDER EACH ACKNOWLEDGE THAT THE FOREGOING WAIVER IS A MATERIAL INDUCEMENT TO THE PARTIES’ ENTERING OF THIS AGREEMENT AND THAT
LENDER AND BORROWER ARE EACH RELYING UPON THE FOREGOING WAIVER IN THEIR FUTURE DEALINGS WITH EACH OTHER. BORROWER AND LENDER EACH
WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THE FOREGOING WAIVER WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY WAIVED
ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH SUCH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS
A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

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

 

	ORBIT ENERGY CHARLOTTE,
    LLC
	 	 	 
	By:	/s/ Anwar Shareef	 
	 	 	 
	Name (Print):	Anwar Shareef	 
	 	 	 
	Title:	Managing Member	 
	 	 	 
	CATERPILLAR FINANCIAL SERVICES CORPORATION
	 	 	 
	By:	/s/ Roger Scott Freistat	 
	 	 	 
	Name (Print):	Roger Scott Freistat	 
	 	 	 
	Title:	Credit Manager	 

 

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APPENDIX A

TO

AMENDED AND RESTATED
CONSTRUCTION FINANCING AGREEMENT

 

Defined Terms

 

“Acceptable Credit Support”
has the meaning ascribed thereto in Section 3.01 of this Agreement.

 

“Advances”
means advances of money under the Construction Note made or to be made by Lender to Borrower, the Equipment Dealer, EPC Contractor,
any Subcontractor or any other designee approved by Lender, each which such advance which shall be repaid under and subject to
the terms of the Notes.

 

“Affiliate”
means any Person that: (a) directly or indirectly controls, is controlled by, or is under common control with such Person or a
Subsidiary of such Person; (b) directly or indirectly beneficially owns or holds ten percent (10%) or more of any class of voting
stock or other interest of such Person or any Subsidiary of such Person; or (c) has ten percent (10%) or more of its voting stock
(including partnership or member interest) directly or indirectly beneficially owned or held by such Person or a Subsidiary of
such Person. As used in this definition of “Affiliate”, the term “control” means the power to direct or
cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract,
or otherwise.

 

“Agreement”
means this Amended and Restated Construction Financing Agreement, as amended, supplemented and modified from time to time in accordance
with the terms hereof, together with all Exhibits and Schedules attached or to be attached hereto.

 

“Applicable
Construction Loan Margin” means: (a) as of March 21, 2014, an interest rate of Six and six one-hundredths percent
(6.06%) (the “Initial Applicable Construction Loan Margin”); and (b) on each date calculated under Section
2.04 for any Advance, an interest rate equal to the Initial Applicable Construction Loan Margin, increased or decreased, by the
amount of the Construction Credit Spread Adjustment. However, in no event shall the Applicable Construction Loan Margin be less
than five and thirty two one-hundredths percent (5.32%).

 

“Applicable
Law” means all laws, rules and regulations applicable to the Person, conduct, transaction, representation, warranty,
covenant, instrument, document or agreement in question, including all applicable common law and equitable principles, state, and
federal constitutions, statutes, rules, regulations, and orders of governmental bodies and all judicial orders, judgments and decrees.

 

“Applicable
Term Loan Interest Rate” means: (a) as of April 3, 2014, an interest rate of Seven and Eight-Eight One-Hundredths
Percent (7.88%) (the “Initial Applicable Term Loan Interest Rate”); and (b) as of the date calculated under Section
5.03 for the Advance under the Term Note, an interest rate equal to the Initial Applicable Term Loan Interest Rate, increased or
decreased, by the amount of the Term Credit Spread Adjustment.

 

“Attorneys’
Fees” means any and all attorneys’ fees, costs and related expenses incurred by Lender (whether by Lender’s use of
in-house counsel or otherwise) related to, arising out of, or in any way connected with Lender’s interests in or defense of any
Action or Lender’s enforcement of its rights and interest with respect to the Project, this Agreement, or any of the other Transaction
Documents, or any other instrument, document, or agreement executed in connection with or contemplated by any of the foregoing
(which shall include attorneys’ fees incurred by Lender to collect sums due, during any work-out, with respect to settlement negotiations,
to enforce any of its rights, or to defend Lender and which, in any bankruptcy proceeding, shall include any attorneys’ fees incurred
in connection with any motion for relief from the automatic stay and any motion to assume or reject any Agreement, it being
the intention of the parties that any and all attorneys’ fees incurred by Lender in connection with any bankruptcy proceeding shall
constitute “actual pecuniary losses” under §365 of the Bankruptcy Code and that Borrower shall be responsible
for indemnifying Lender with respect to such fees).

 

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“Austep Guaranties”
means guaranty agreements executed by Austep Guarantor pursuant to which Austep Guarantor unconditionally guaranties the obligations
of EPC Contractor and O&M Contractor, as applicable, under the EPC Agreement, O&M Agreement and Performance Guarantee Agreement,
in a form and substance satisfactory to Lender.

 

“Austep Guarantor”
means Austep S.p.A., a joint stock company formed under the laws of Italy and an Affiliate of EPC Contractor and O&M Contractor.

 

“Base Rate”
means the London Interbank Offered Rate for deposits in Dollars for a term of three (3) months as published by the Intercontinental
Exchange Benchmark Administration Ltd (“ICE”) or its successor and reported by Bloomberg (Screen LIBO Page) (the “LIBOR
Rate”) as of 11:00 a.m., London Time on the day that is two London Banking Days preceding the first calendar day
of the then current month or such other day of the calendar month selected by Lender (the “Reset Date”).
As used herein, a “London Banking Day” means any day on which banks are required to be open for business in London,
England. The applicable LIBOR Rate used to calculate the floating rate hereunder shall be adjusted on each Reset Date and, once
set, the Base Rate shall remain fixed until the following Reset Date, at which time the Base Rate shall be reset to be the then
current LIBOR Rate. If the LIBOR Rate as defined above is not available or is not published on any Reset Date or, in the absence
of the availability of Bloomberg (Screen LIBO Page) on any Reset Date, then Lender shall, at its election, choose a substitute
source for the LIBOR Rate and/or use the most recently available or next available LIBOR Rate.

 

“Biogas Substantial Completion”
means that, and shall be deemed to have occurred when the Project has been constructed, successfully tested and commissioned such
that, among other things: (a) the Project (i) is operating within all the specified parameters in the Construction Documents (other
than power generation requirements), (ii) has achieved Mechanical Completion, (iii) has all Permits and Related Rights required
for continuous commercial operation, and (iv) is operating and generating the Minimum Gas Amount as evidenced by Successful Completion
of the applicable Performance Tests (as such terms are defined in the EPC Agreement); and (b) Borrower, and at Lender’s request,
Lender, shall have received from EPC Contractor satisfactory evidence that all payrolls, bills, and other costs and expenses relating
to the work performed under the Construction Documents have been paid or otherwise satisfied (including lien waivers and releases,
from every Subcontractor and every other Person who provided labor, material, equipment or supplies for the work or the Project).
Satisfaction of the requirements for Biogas Substantial Completion shall be determined by Lender in consultation with Lender’s
Engineer.

 

“Borrower” has
the meaning ascribed thereto in the preamble of this Agreement.

 

“Borrower Operating Budget”
shall have the meaning ascribed thereto in the Cash Application Hierarchy Provisions.

 

“Borrower’s Contest Rights”
means Borrower’s right to contest in good faith third party issues related to the Project where specified in this Agreement, so
long as (a) it does so diligently, by appropriate proceedings, and without prejudice to Lender; (b) neither the Project nor any
Collateral would be in any danger of sale, loss, or forfeiture as a result of such proceeding or contest; and (c) Borrower notifies
Lender of such contest and shall, upon Lender’s request, promptly provide a bond, cash deposit, or other security satisfactory
to Lender to protect Lender’s interest and security should the contest be unsuccessful.

 

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“Business Day”
means any day other than a Saturday, Sunday or other day on which Lender is not open for the normal conduct of business or any
commercial banks in the State of New York are required or authorized by law to be closed.

 

“Cash Application
Hierarchy Provisions” means the provisions set forth on Exhibit H (Cash Application Hierarchy)
to the Agreement.

 

“Certificate of
Biogas Substantial Completion” means a Certificate of Power Substantial Completion, substantially in the form shown
on Exhibit C-1, which is executed by EPC Contractor and Borrower and submitted by Borrower to Lender in accordance
with the terms of this Agreement.

 

“Certificate of
Final Completion” means a Certificate of Final Completion, substantially in the form shown on Exhibit A,
which is executed by EPC Contractor and Borrower and submitted by Borrower to Lender in accordance with the terms of this Agreement.

 

“Certificate of
Mechanical Completion” means a Certificate of Mechanical Completion, substantially in the form shown on Exhibit
B, which is executed by EPC Contractor and Borrower and submitted by Borrower to Lender in accordance with the terms of
this Agreement.

 

“Certificate of
No Liens” means a Certificate, in form and substance satisfactory to Lender, issued by EPC Contractor and executed
by its chief executive officer, chief financial officer, or general counsel certifying that no other Person claiming by, through
or under EPC Contractor has any right, title, interest, Security Interest, claim, or Lien with respect to the Project.

 

“Certificate of
Power Substantial Completion” means a Certificate of Power Substantial Completion, substantially in the form shown
on Exhibit C-2, which is executed by EPC Contractor and Borrower and submitted by Borrower to Lender in accordance
with the terms of this Agreement.

 

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

 

“Collateral”
means and includes individually, collectively, interchangeably and without limitation all property and assets, whether now existing
or hereafter acquired or arising, granted as collateral security for the Obligations (including the collateral described in Section
11.01 of this Agreement, the collateral described in the Pledge Agreement and the collateral pledged under any Land Documents),
whether granted pursuant to this Agreement, any other Transaction Document or under any other instrument, agreement or document,
whether granted directly or indirectly, whether granted now or in the future, and whether granted in the form of a security interest,
mortgage, deed of trust, collateral mortgage, assignment, pledge, chattel mortgage, lien, lease or consignment intended as a security
device, or any other security or lien interest whatsoever, whether created by law, contract, or otherwise.

 

“Commitment Fee”
means One Hundred Seventy-Seven Thousand Eight Hundred Fifty-Two and 42/100ths Dollars ($177,852.42).

 

“Compost Agreement”
means an agreement (together with all Exhibits and Schedules attached or to be attached thereto) between Borrower and an experienced
counterparty, relating to the sale by Borrower of compost produced by the Project, which such agreement and counterparty must each
be acceptable to Lender in its sole and absolute discretion and must be delivered to Lender prior to the initial Advance in accordance
with the terms of Section 4.01(k).

 

“Construction Credit
Spread Adjustment” means, on each date of calculation under Section 2.04, an amount equal to the difference (either
positive or negative) between: (a) the Applicable Construction Credit Spread on March 21, 2014 (which was 0.2467%); and (b) the
Applicable Construction Credit Spread on the date of calculation (determined as set forth in Section 2.05 based on indicative pricing
for a one (1) year term).

 

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“Construction Documents”
means (a) all contracts between Borrower and EPC Contractor or any Subcontractor, including the EPC Agreement, (b) the Interconnection
Agreement (to the extent such Interconnection Agreement relates to construction matters); (c) all other documents listed on Schedule
1; and (d) any subcontracts with Subcontractors, materialmen, laborers, or any other Person for performance of work on
the Project or the delivery of materials to the Project, and all amendments, modifications and supplements with respect to the
foregoing documents and any replacements, renewals, extensions or restatements thereof, and any substitutes therefore, in whole
or in part.

 

“Construction Note”
means the variable rate promissory note substantially in the form attached hereto as Exhibit D and shall include
all amendments, modifications and supplements with respect to the foregoing and any replacements, renewals, extensions or restatements
thereof, and any substitutes therefor, in whole or in part other than the Term Note.

 

“Contingency Assurance
Release Date” means the date immediately following six (6) consecutive months of Project operation with a
power generating up-time of at least ninety-three and six tenths percent (93.6%) as determined by Lender in consultation with Lender’s
Engineer.

 

“Contingency Letter
of Credit” means an irrevocable standby letter of credit that: (a) secures the Obligations; (b) is in form and substance
satisfactory to Lender, naming Lender as beneficiary; (c) is issued by a United States bank acceptable to Lender; and (d) is in
an amount equal to or greater than One Million Five Hundred Thousand Dollars ($1,500,000).

 

“Contingency Reserve
Account” means an account satisfying all requirements of Section 2.07(a) for Required Accounts in to which
funds shall be deposited and maintained in accordance with the terms of Section 2.07(c) at Borrower’s election in lieu of
Borrower providing a Contingency Letter of Credit.

 

“Control Agreement”
means account control agreements or similar documents in form and substance satisfactory to Lender with a U.S. financial institution
acceptable to Lender which shall give Lender a perfected, first priority Security Interest in, and control of, each of the Required
Accounts.

 

“Conversion”
has the meaning ascribed thereto in Section 5.01 of this Agreement.

 

“Conversion Date”
has the meaning ascribed thereto in Section 5.01 of this Agreement.

 

“Conversion Date
Deadline” means October 1, 2015.

 

“Debt Investment”
has the meaning ascribed thereto in Section 2.02(b) of this Agreement.

 

“Debt Service Reserve
Account” has the meaning ascribed thereto in Section 2.07(a) of this Agreement.

 

“Debt Service Reserve
Required Balance” means an amount equal to six (6) future payments of principal and interest under the Notes.

 

“Default”
means any occurrence, condition, act or failure to act which, either: (a) constitutes an Event of Default, or (b) with the giving
of notice, or the passage of time, or both, may give rise if not timely cured to an Event of Default hereunder.

 

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“Deferred
Permits and Related Rights” are Permits and Related Rights which: (a) are set forth in Schedule 6;
(b) at the time of determination are not required under Applicable Law; (c) at the time of determination, are reasonably believed
by Borrower to be obtainable in due course prior to the earlier of: (i) the date or phase of construction set forth in Schedule
6 with respect to such Permits and Related Rights and (ii) the date required under Applicable Law, the Construction Documents
or the Support Documents.

 

“Disqualified
Person” means any Person directly or indirectly described as being ineligible for the Tax Credits pursuant to Applicable
Law; provided, however, that if Applicable Law is amended after the Effective Date, the definition of “Disqualified Person”
shall be interpreted to conform to such amendments. As of the Effective Date, a “Disqualified Person” means: (a) a
Federal, State, or local government (or any political subdivision, agency, or instrumentality thereof); (b) any organization described
in Section 501(c) of the Code and exempt from tax under Section 501(a) of the Code; (c) any entity referred to in paragraph (4)
of Section 54(j) of the Code; (d) any Person described in Section 50(d)(1) of the Code; (e) any Person who is not a “United
States person” as defined in Section 7701(a)(30) of the Code, unless such Person is a foreign person or entity (other than
a foreign partnership or foreign pass-through entity and the exception under Section 168(h)(2)(B) of the Code applies with respect
to such Person’s distributive share of income from Borrower); and (f) any partnership or other pass-through entity (including
a single-member disregarded entity) other than a real estate investment trust as defined in Section 856(a) of the Code or a cooperative
organization described in Section 1381(a) of the Code, any direct or indirect partner (or other direct or indirect holder of an
equity or profits interest) of which is described in clauses (a) through (e) above, inclusive, unless such Person holds its interests
in the partnership or other pass-through entity indirectly through a taxable “C” corporation.

 

“Dollars” and the
sign “$” means lawful money of the United States of America.

 

“Effective Date” has
the meaning ascribed thereto in the preamble of this Agreement.

 

“Environmental
Claim” means any claim, action, cause of action, investigation or notice (written or oral) by any Person alleging
potential liability (including potential liability for investigatory costs, cleanup costs, governmental response costs, natural
resources damages, property damages, personal injuries, or penalties) arising out of, based on or resulting from, in part or in
whole, (a) the presence, or release into the environment, of any Hazardous Materials at any location, whether or not owned or operated
by Borrower, or (b) circumstances forming the basis of any violation, or alleged violation, of the Environmental Laws.

 

“Environmental
Laws” means, collectively, any and all applicable local, regional, county, state, federal, national or international
law, statute, treaty, directive, decision, judgment, regulation, order, ordinance permit or similar policy or common law requirement
which relate to the protection of human health or the environment relating to the use, refinement, recycling, handling, treatment,
storage, disposal, emissions, discharges, releases or threatened releases of Hazardous Materials (including the clean-up of Hazardous
Materials in soil, sub-surface strata, surface water or ground water), including the Federal Solid Waste Act as amended by the
Resource Conservation and Recovery Act of 1976, 42 U.S.C. §6901, et seq., and the Federal Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §7401, et seq., as the same
may be amended or modified until the date of closing.

 

“Environmental
Losses” means any liabilities, damages, penalties, costs, expenses and losses (including amounts incurred for remedial
action, expenses, technical or legal support), whether vested or unvested, fixed or unfixed, actual or potential, and whether with
regard to a Governmental Authority or to a private party, which arise out of the storage, treatment, release or disposal (or alleged
storage, treatment, release or disposal) of Hazardous Materials into the environment by Borrower, prior owners of the Land, trespassers
or parties in contractual relationship with the Borrower, whether for actions occurring before or after the date hereof, including:
(a) the investigation, removal, cleanup, containment or remediation of Hazardous Materials; (b) personal injury, wrongful
death or property damage cl aims; (c) claims for natural resource damages; (d) violation of Environmental Laws; or (e) any Environmental
Claim.

 

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“EPC Agreement”
means: (a) that certain Amended and Restated Turnkey Agreement for the Design, Construction and Delivery of Biogas Plant, dated
as of June 5, 2014, between Borrower and EPC Contractor, together with all annexes, exhibits and schedules attached or to be attached
thereto, each as amended, and all amendments, modifications and supplements with respect to the foregoing documents and any replacements,
renewals, extensions or restatements thereof, and any substitutes therefore, in whole or in part to the extent allowed in accordance
with the terms hereof; and (b) all instruments, agreements, documents or other written evidence of Acceptable Credit Support for
the obligations of EPC Contractor thereunder.

 

“EPC Contractor”
means Auspark LLC, a North Carolina LLC, acting as general contractor and utilizing the services of various Subcontractors in connection
with construction of the Project.

 

“Equipment”
means the generator sets branded by Caterpillar, Inc.; AMF tanks; 3 piece screw, reception systems for waste, pumps, and ancillary
equipment; and all other equipment and other personal property constituting part of the Project or used in connection therewith
(including the items generator sets and other property listed in Schedule 2 and including any components, equipment,
supplies, fixtures, additions, accessions and similar items used in connection with the construction, completion and operation
of said items).

 

“Equipment Dealer”
means Spark S.p.A., a company organized and existing under the laws of the Italian Republic.

 

“Equity” has
the meaning ascribed thereto in Exhibit N (Financial Covenants).

 

“Equity Investment”
has the meaning ascribed thereto in Section 2.02(a) of this Agreement.

 

“Equity Investment Deficiency”
has the meaning ascribed thereto in Section 2.02(a) of this Agreement.

 

“Estimated Project Cost”
means the estimated amount of the total Project Costs, which amount: (a) is estimated as of the date this Amended and Restated
Construction Financing Agreement is executed to be Twenty Two Million Nine Hundred Thousand Dollars ($22,900,000); and (b) is subject
to adjustment in accordance with Section 2.02(a) hereof.

 

“Event of Default”
has the meaning set forth in Section 9.01.

 

“Extraordinary Proceeds”
means: (a) liquidated damages or other amounts owed to Borrower under any Construction Document or Support Document, including
any amounts owed by EPC Contractor under the EPC Agreement or by O&M Contractor under the O&M Agreement or Performance
Guarantee Agreement; (b) any amounts and proceeds of any kind payable in respect of any taking, exercise of rights of eminent domain,
public improvement, inverse condemnation, condemnation or similar action of or proceeding by any Governmental Authority relating
to any material part of the Project, any Membership Interests or any other assets of Borrower; and (c) any proceeds of any insurance
policies required hereunder or otherwise obtained by Borrower or its Affiliates with respect to the Project or its operations,
including any business interruption insurance proceeds. Nothing in this definition (including references to proceeds) constitutes
an authorization of any sale, lease, transfer, or other disposition of Collateral.

 

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“Final Completion”
means that, and shall be deemed to have occurred when: (a) Power Substantial Completion has occurred; (b) the Project is capable
of commercial operation on a continuous basis; (c) all Punch List Items have been completed (except for such items that Borrower
and Lender agree in writing may be delayed); (d) all warranties, design materials, operation and maintenance manuals, schematics,
spare parts lists, design and engineering documents, performance testing data, “as-built”
drawings and surveys, and such other items as are required by the Construction Documents have been delivered to Borrower and, at
Lender’s request, to Lender; (e) all other duties and obligations of EPC Contractor and Subcontractors under the Construction Documents
have been fully performed; (f) all of the Subcontractor’s personnel, supplies, equipment, waste materials, rubbish and temporary
facilities have been removed from the Land; (g) Borrower, and at Lender’s request, Lender, shall have received from EPC Contractor
satisfactory evidence that all payrolls, bills, and other costs and expenses relating to the work performed under the Construction
Documents have been paid or otherwise satisfied (including lien waivers and releases, from every Subcontractor and every other
Person who provided labor, material, equipment or supplies for the work or the Project); and (h) all other requirements in the
Construction Documents with respect to completion of the Project have been satisfied. Satisfaction of the requirements for Final
Completion shall be determined by Lender in consultation with Lender’s Engineer.

 

“Financial
Model” means the pro forma financial statements and projections of revenue and expenses and cash flows with respect
to Borrower and the Project, in each case as described on Exhibit E, as the same are updated by Borrower with the
prior written approval of Lender in accordance with Section 2.10 hereof.

 

“Force Majeure
Event” means each of the following events so long as such events are not reasonably foreseeable and are beyond the
control of the affected party: acts of God; strikes, lockouts or other industrial disturbances; acts of public enemies; orders
or restraints of any kind of the government of the United States of America or of the State or any state or any of their departments,
agencies, political subdivisions or officials, or any civil or military authority; insurrections; civil disturbances; riots; epidemics;
landslides; lightning; earthquakes; fires; hurricanes; tornadoes; storms; droughts; floods; arrests; restraint of government and
people; explosions; breakage, malfunction or accident to facilities, machinery, transmission pipes or canals; partial or entire
failure of utilities; shortages of labor, materials, supplies or transportation.

 

“Fuel Supply
Agreement” means one or more agreements entered into between Borrower and counterparties acceptable to Lender relating
to the supply of methane/fuel or methane/fuel producing materials necessary or desirable for operation of the Project and all Exhibits
and Schedules attached or to be attached thereto; each as amended, supplemented, modified, replaced, renewed, extended or restated
in accordance with the terms hereof. Each such Fuel Supply Agreement shall be in a form and substance acceptable to Lender.

 

“Generally
Accepted Accounting Principles” or “GAAP” means generally accepted accounting principles
set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants
and statements and pronouncements of the Financial Accounting Standards Board, or in such other statements by such other entity
as may be in general use by significant segments of the accounting profession, which are applicable to the circumstances as of
the date of determination. Unless waived by Lender such principles shall be followed in the preparation of all financial statements
provided to Lender in accordance with the terms of this Agreement or any other Transaction Document.

 

“Governmental
Authority” means any international or national governmental body, any state, provincial, regional, local, municipal
or other political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

 

“Hazardous
Materials” means any and all hazardous materials, toxic substances, radioactive substances, hazardous wastes, special
wastes, controlled wastes, oils, petroleum and petroleum products, hazardous chemicals, asbestos, polychlorinated biphenyls (PCBs),
air pollutants, hazardous air pollutants and any other materials which may be harmful to human health or the environment and which
are now or at any time during the term of this Agreement regulated or controlled under Environmental Laws in any of the jurisdictions
in which Borrower has operated or is operating.

 

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“Indebtedness”
means all items of indebtedness which, in accordance with GAAP, would be deemed a liability of a Person as of the date as of which
such indebtedness is to be determined, and shall also include all indebtedness and liabilities of others assumed or guaranteed
by such Person or in respect of which such Person is secondarily or contingently liable, whether by reason of any agreement to
acquire such indebtedness, to supply or advance sums, or otherwise. Without limiting the scope of the foregoing, such term shall
include (a) all obligations for borrowed money, (b) all obligations evidenced by bonds, debentures, notes or other similar instruments,
(c) all obligations to pay the deferred purchase price of property or services, except trade accounts payable arising and paid
in the ordinary course of business, (d) all lease obligations whether or not such obligations are required to be capitalized for
financial reporting purposes in accordance with GAAP, (e) all debts secured by any mortgage, lien, pledge, attachment, charge,
or other Security Interest or encumbrance of any kind in respect of any property or upon the income or profits therefrom, whether
or not such debt is assumed by the party granting such security, and (f) all debt of third Persons guaranteed by such Person.

 

“Intellectual
Property Rights” shall mean the intangible legal rights, titles and interests evidenced by or embodied in (a) any
idea, design, concept, technique, invention, discovery, or improvement thereon, whether or not patentable, but including patents,
patent applications and patent disclosures (together with all re- issuances, continuations, continuations-in-part, revisions, extensions,
and re-examinations thereof), and (b) any work of authorship, whether or not copyrightable, but including copyrights and any moral
rights recognized by law, and (c) all trademarks, trade names, trade dress, trade secrets, know-how and confidential information,
and (d) any other similar rights, on a worldwide basis.

 

“Interconnection
Agreement” means that certain Interconnection Agreement between Borrower and Power Purchaser, dated November 25,
2013 and executed December, 2013, and any and all attachments, exhibits and schedules thereto, each as amended, supplemented and
modified from time to time in accordance with the terms hereof.

 

“Knowledge”
means, with respect to representations and warranties or notice obligations qualified to Borrower’s knowledge, that no officer,
manager or employee of Borrower is aware, or would be aware after reasonable inquiry, of any facts that would give such Person
knowledge or notice that any such representations or warranties are false or that such events have occurred that require notice
to Lender.

 

“Land”
means the property to be purchased located at 600 Johnson Road, Charlotte, North Carolina 28206, or other location approved by
Lender, upon which the Project is or will be constructed and operated, including any or other real property necessary or desirable
for operation of the Project.

 

“Land Documents”
means documents acceptable to Lender with respect to the Land, including: (a) any deed, lease, easement, right of way, license,
waiver, or other document conveying to Borrower a fee interest, leasehold, or other rights with respect to, the Land and any adjoining
property necessary for access to the Land or operation of the Project including any recorded memorandum or short form of such document
recorded in the public records; (b) documents acceptable to Lender, including a mortgage, deed of trust, or security deed, conveying
to Lender a Lien in the Land and to the extent necessary for operation of the Project, any interest of the Borrower in adjoining
property; (c) all amendments, modifications, and supplements with respect to the foregoing documents; and any replacements, renewals,
extensions or restatements thereof, and any substitutes therefor, in whole or in part.

 

“Lender” has the meaning
ascribed thereto in the preamble of this Agreement.

 

“Lender’s Engineer”
means one or more Persons hired or contracted by Lender from time to time for purposes of monitoring, verifying or otherwise assisting
with engineering, operational and technical aspects under this Agreement.

 

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“Lien”
means any mortgage, deed of trust, pledge, Security Interest, hypothecation, assignment, deposit arrangements, encumbrance, lien
(statutory or other), privilege, or preference, priority, or other security agreement or preferential arrangement, charge, or encumbrance
of any kind or nature whatsoever (including any conditional sale or other title retention agreement), any financing lease having
substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the Uniform Commercial
Code or comparable law of any jurisdiction to evidence any of the foregoing.

 

“Major Maintenance Reserve Account”
has the meaning ascribed thereto in Section 2.07(a).

 

“Major Maintenance Reserve Required
Balance” shall have the meaning ascribed thereto in the Cash Application Hierarchy
Provisions.

 

“Material Adverse
Event” means, with respect to any Person, any change, condition, event, occurrence or circumstance which could reasonably
be expected to have a material adverse effect on (a) the business, property, condition (financial or otherwise) or results of operations
of such Person; (b) the ability of such Person to fully and timely pay all amounts due from, and perform all Obligations owed by,
such Person under the Transaction Documents to which it is a party; (c) Lender’s Lien or rights under the Security Documents;
or (d) the validity or enforceability of any of the Transaction Documents.

 

“Materials” means
the inventory, raw material, metal, supplies, and other goods used in connection with the construction of the Project, including
the Equipment.

 

“Maximum Debt Percentage”
means (a) Sixty and Three Tenths Percent (60.3%) as of the Effective Date; and (b) is subject to decrease pursuant to the terms
of Section 2.02.

 

“Maximum Loan Amount”
shall mean Thirteen Million Eight Hundred Thousand Dollars ($13,800,000).

 

“Mechanical
Completion” means that, and shall be deemed to have occurred when: (a) construction of the Project has been completed
in accordance with the Plans and Specifications; (b) all Equipment and other components of the Project has passed all standard
and required electrical testing, hypot, megger testing, flushing and pressure testing of piping, and all other applicable testing
per codes and guides, including any applicable Caterpillar Application and Installation Guides; and (c) the Project is ready to
be tested and commissioned. Satisfaction of the requirements for Mechanical Completion shall be determined by Lender in consultation
with Lender’s Engineer.

 

“Membership
Interests” means all of the following assets, properties and rights now existing or hereinafter created or arising:
all membership interests, stock, partnership interest or other legal or beneficial interests (or other ownership or profit interests
in) Borrower; all of the warrants, options or other rights for the purchase or acquisition of membership interests of (or other
ownership or profit interests in) Borrower; all of the securities convertible into or exchangeable for membership interests of
(or other ownership or profit interests in) Borrower or warrants, rights or options for the purchase or acquisition of such membership
interests (or such other interests); and all of the other ownership or profit interests in Borrower, whether voting or nonvoting,
and whether or not such membership interests, warrants, options, rights or other interests are outstanding on any date of determination,
in each such case including all voting rights and economic rights related thereto.

 

“Note”
means the Construction Note, the Term Note and any other promissory note, instrument or similar document that Borrower executes
in connection with this Agreement and which evidences Borrower’s promise to pay Indebtedness owed by Borrower to Lender in connection
with the transactions contemplated by this Agreement together with interest at the rate set forth therein (with all modifications
and amendments thereto). “Notes” shall collectively mean all such Notes.

 

    	52

    	 

    

  

“O&M Agreement”
means: (a) that certain Service, Maintenance and Operation Agreement (Contract N.SER_0356-2014-GEST), dated as of June 5, 2014,
between Borrower and O&M Contractor, together with all annexes, exhibits and schedules attached or to be attached thereto,
each as amended, and all amendments, modifications and supplements with respect to the foregoing documents and any replacements,
renewals, extensions or restatements thereof, and any substitutes therefore, in whole or in part to the extent allowed in accordance
with the terms hereof; and (b) all instruments, agreements, documents or other written evidence of Acceptable Credit Support for
the obligations of O&M Contractor thereunder.

 

“O&M Contractor”
means Austep USA Inc., a Delaware corporation, acting as contractor and utilizing the services of various Subcontractors in connection
with services and performance rendered under the O&M Agreement and the Performance Guarantee Agreement.

 

“Obligations”
means individually, collectively and interchangeably, all Indebtedness, duties, liabilities and obligations of Borrower to Lender
of any class or nature, whether arising under or in connection with this Agreement and/or the other Transaction Documents or otherwise,
whether now existing or hereafter incurred, direct or indirect, absolute or contingent, secured or unsecured, matured or unmatured,
joint or several, whether for rent, principal, interest, fees, expenses, lease obligations, indemnities or otherwise, including
future advances of any sort, all future advances made by Lender for Taxes, insurance and/or repairs to or maintenance of the Collateral,
the unpaid principal amount of, and accrued interest on, the Advances hereunder, and any expenses of collection or protection of
Lender’s rights, including Attorneys’ Fees and other charges chargeable to Borrower under any Transaction Document.

 

“Operating Account”
has the meaning ascribed thereto in Section 2.07(a).

 

“Operating Plan” means
a written plan, in form and substance satisfactory to Lender in consultation with Lender’s Engineer, addressing operation
and maintenance of the Project during the term of the Term Note.

 

“Original CFA” has
the meaning ascribed thereto in the Recitals to this Agreement.

 

“Original
Financial Model” means the Financial Model provided by Borrower to Lender in connection with the initial Advance
pursuant to Section 4.01(j) hereof, as described on Exhibit E

 

“Performance
Guarantee Agreement” means: (a) that certain Performance Guarantee Agreement, dated as of June 5, 2014, between Borrower
and O&M Contractor (together with all annexes, exhibits and schedules attached or to be attached thereto, each as amended,
and all amendments, modifications and supplements with respect to the foregoing documents and any replacements, renewals, extensions
or restatements thereof, and any substitutes therefore, in whole or in part to the extent allowed in accordance with the terms
hereof) pursuant to which O&M Contractor guaranties the Project’s performance, including utilization rate of at least ninety
percent (90%) during the first twenty-four months following Conversion; and (b) all instruments, agreements, documents or other
written evidence of Acceptable Credit Support for the obligations of O&M Contractor thereunder.

 

“Permitted Changes”
means such changes as are consented to by Lender in writing.

 

“Permitted
Liens” means (a) any Lien which may be granted to Lender; (b) any Liens set forth on Schedule 5 hereto;
and (c) any Liens with respect to work, labor, Equipment, and Materials done, supplied, performed, or furnished under the EPC Agreement
prior to such application for an Advance which are to be released upon the receipt of the payment covered by such application for
such Advance.

 

    	53

    	 

    

  

“Permitted Ownership Acquisition”
shall mean the acquisition of the Membership Interest in Borrower by Binosphere, LLC, and the subsequent acquisition by Pledgor
of such Membership Interests from Binosphere, LLC; provided, however, no such acquisition shall constitute a Permitted
Ownership Acquisition until such time as Lender has reviewed and approved of the same, in its sole and absolute discretion, as
set forth in Section 4.01(a) of this Agreement).

 

“Permits and
Related Rights” means all city, county, state, federal, governmental, or other permits, authorizations, tags, licenses,
certificates, and any other documents, instruments, agreements, requisite approvals or rights necessary in order to construct the
Project and in order to use and operate the Project, including environmental, construction, operating and air permits, licenses
and other rights, including all Deferred Permits and Related Rights listed on Schedule 6.

 

“Person”
means an individual, partnership, limited liability company, corporation, trust or unincorporated organization, and a government
(whether national, federal, state, county, municipal or otherwise) or agency or political subdivision thereof.

 

“Phase I ESA” has
the meaning ascribed thereto in Section 4.01(r) of this Agreement.

 

“Plans and Specifications”
means the plans and specifications for the Project that are referenced in the Construction Documents and that have been approved
by Lender, together with any Permitted Changes.

 

“Pledge Agreement”
means a Non-Recourse Pledge Agreement that is in form and substance satisfactory to Lender and each Pledgor, each in their sole
and absolute discretion, pursuant to which each Pledgor pledges 100% of the Membership Interest in Borrower to Lender as collateral
security for all of the Obligations.

 

“Pledgor” means REF
Bluesphere, LLC, a Delaware limited liability company, the owner of one hundred percent (100%) of the Membership Interests in Borrower.

 

“Power Purchase
Agreement” means that certain Amended and Restated Renewable Energy Power Purchase Agreement, dated October 12, 2012,
between Borrower and Power Purchaser, as amended by that certain First Amendment to the Amended and Restated Renewable Energy Purchase
Agreement, dated April 25, 2013, and as further amended by that certain Second Amendment to the Amended and Restated Renewable
Energy Purchase Agreement, dated January 31, 2014 (together with all Exhibits and Schedules attached or to be attached thereto,
and as amended, supplemented, modified, replaced, renewed, extended or restated in accordance with the terms hereof).

 

“Power Purchaser”
means Duke Energy Carolinas LLC, a North Carolina limited liability company.

 

“Power Substantial
Completion” means that, and shall be deemed to have occurred when the Project has been constructed, successfully
tested and commissioned such that, among other things: (a) the Project (i) is operating within all the specified parameters in
the Construction Documents, (ii) has achieved Mechanical Completion and Biogas Substantial Completion, (iii) has achieved commercial
operation; (iv) has all Permits and Related Rights required for continuous commercial operation, and (v) is operating and generating
the specified output pursuant to the EPC Agreement and the Power Purchase Agreement, and is supplying power to the Power Purchaser
in full accordance with the Purchase Power Agreement; (b) a successful operational performance test of the Project for its intended
use shall have been completed demonstrating that Project performance criteria of electrical generation, heat rate and emission
levels have been met and are satisfactory; and (c) Borrower, and at Lender’s request, Lender, shall have received from EPC Contractor
satisfactory evidence that all payrolls, bills, and other costs and expenses relating to the work performed under the Construction
Documents have been paid or otherwise satisfied (including lien waivers and releases, from every Subcontractor and every other
Person who provided labor, material, equipment or supplies for the work or the Project). Satisfaction of the requirements for Power
Substantial Completion shall be determined by Lender in consultation with Lender’s Engineer.

 

    	54

    	 

    

  

“Prepayment
Calculation Rate” means: (a) for prepayments under the Construction Note, a rate equal to Ten Percent (10%); and
(b) for prepayments under the Term Note, a rate equal to (i) five percent (5%) of the total principal sum due under the Note if
prepayment is made on or before the first anniversary of the Conversion Date; (ii) four percent (4%) of the total principal sum
due under the Note if prepayment is made after the first anniversary, but on or before the second anniversary, of the Conversion
Date; (iii) three percent (3%) of the total principal sum due under the Note if prepayment is made after the second anniversary,
but on or before the third anniversary, of the Conversion Date; (iv) two percent (2%) of the total principal sum due under the
Note if prepayment is made after the third anniversary, but on or before the fourth anniversary, of the Conversion Date; (v) one
percent (1%) of the total principal sum due at such time if prepayment is made after the fourth anniversary of the Conversion Date.

 

“Project”
means the anaerobic digester facility capable of producing 5.2 megawatts of electricity, located upon the Land, including the Equipment
and Materials, and any improvements on the Land to be planned, constructed, and completed by EPC Contractor and its Subcontractors
in accordance with the Construction Documents and Prudent Engineering Practices.

 

“Project Costs”
means the following costs and expenses incurred by Borrower in connection with the Project: (i) costs incurred by Borrower under
the EPC Agreement or any other Construction Document or otherwise related to the acquisition, site preparation, design, engineering,
construction, installation, start-up, and testing of Project, including the costs of purchasing the Land and purchasing, constructing
and delivering Equipment, Materials, and other components of the Project; (ii) to the extent approved by Lender, financial, accounting,
legal, surveying and consulting fees, financing fees and expenses or other fees and expenses incurred by Borrower in connection
with the development of the Project and the consummation of the transactions contemplated by this Agreement; (iii) the amount required
to fund the Debt Service Reserve Account to the Debt Service Reserve Required Balance on or before the Conversion Date; and (iv)
all other costs and expenses otherwise approved in writing by Lender. For purposes of clarity, none of the funds to be deposited
into the Contingency Reserve Account shall constitute a Project Cost hereunder and all such amounts must be paid with cash from
an addition to Equity funded by a source other than Retained Earnings.

 

“Project Element”
means each significant category of work or expenses for the Project as set out in the Schedule of Values including major equipment,
procurement, engineering, civil, mechanical, electrical, testing and commissioning and all other costs related to such category.

 

“Prudent Engineering Practices”
means those practices, methods, specifications, and standards of safety and performance as are commonly used by reputable contracting
and engineering firms.

 

“Punch List
Items” means, with respect to the Project, those items of work approved by Lender, minor in nature, which have not
been completed by EPC Contractor or any Subcontractor prior to the date of issuance of the Certificate of Power Substantial Completion
and which are not material to the operation of the Project in the normal course of business and which can be completed without
interfering with the operation of the Project.

 

“Qualifying
Costs” means Project Costs expended by Borrower in respect of “specified energy property” within the
meaning Applicable Law relating to the Tax Credits and that are properly includable in the tax basis of such property in accordance
with the such Applicable Law.

 

“Required Accounts”
means the Debt Service Reserve Account, the Revenue Account, the Major Maintenance Reserve Account and the Operating Account. In
the event Borrower elects to provide a Contingency Reserve Account in lieu of a Contingency Letter of Credit pursuant to the terms
of Section 2.07(c), such Contingency Reserve Account shall also be a “Required Account” until the Contingency Assurance
Release Date.

 

    	55

    	 

    

  

“Required Consents”
means such consents and collateral assignments required by Lender pursuant to which the counterparties to the Construction Documents
and Support Documents (a) consent to certain collateral assignments made by Borrower to Lender; and (b) provide to Lender certain
cure, step-in and other rights with respect to such Construction Documents and Support Documents (provided, however, that Required
Consents shall only be necessary with respect to Required Fuel Supply Agreements to the extent provided in Section 7.08(b) hereof).
Each such Required Consent shall be in a form and substance acceptable to Lender.

 

“Required Equity Percentage”
means: (a) Thirty-Nine and Seven Tenths Percent (39.7%) as of the Effective Date; and (b) is subject to increase pursuant to the
terms of Section 2.02 hereof.

 

“Required Fuel Supply Agreements”
has the meaning ascribed thereto in Section 7.08(b) of this Agreement.

 

“Retainage” has
the meaning ascribed thereto in Section 2.03(b) of this Agreement.

 

“Retained Earnings”
has the meaning ascribed thereto in Exhibit N (Financial Covenants).

 

“Revenue Account”
has the meaning ascribed thereto in Section 2.07(a).

 

“Revenues” means
all amounts received by or for the account of Borrower, including: (a) all cash or other amounts paid to Borrower in connection
with any Support Documents or Construction Documents (including Extraordinary Proceeds), (b) all interest and investment earnings
paid to Borrower or into the Required Accounts on amounts on deposit in the Required Accounts, (c) all insurance proceeds that
are not paid directly to Lender, including any amounts paid to Borrower pursuant to insurance policies required pursuant to the
Transaction Documents or otherwise obtained by Borrower with respect to the Project, including insurance relating to business interruption
or delayed start-up; (d) amounts received from any Person pursuant to one or more agreements pursuant to which the proceeds of
federal or state tax credits or grants are monetized; and (e) all other cash or other amounts paid to Borrower.

 

“Schedule of Values”
means a schedule of the costs of the Project which (a) is in a form and substance acceptable to Lender, in its sole discretion,
and referenced in Exhibit F attached hereto; and (b) discloses for each Project Element the following: (i) a general
description of the Project Element; and (ii) the Scheduled Value which is used by Lender to approve Advances in accordance with
the terms hereof. Any changes in Scheduled Values or addition of Project Elements must be approved in writing by Lender.

 

“Scheduled Value”
means, for each Project Element set forth on the Schedule of Values, the amount of Project Cost budgeted for that particular Project
Element.

 

“Security Documents”
means individually, collectively, interchangeably and without limitation any agreements, promises, covenants, arrangements, understandings
or other agreements, including all UCC financing statements, this Agreement, the Pledge Agreement, the Land Documents and the Required
Consents, whether created by law, contract, or otherwise, evidencing, governing, representing, perfecting or creating a Security
Interest, or otherwise securing payment of the Obligations, as the same may be amended, renewed, replaced, refinanced, consolidated
or substituted from time to time.

 

“Security Interest”
means individually, collectively, interchangeably and without limitation any and all present and future mortgages, deeds of trust,
pledges, hypothecations, assignments, security interests, Liens and other encumbrances directly or indirectly securing the repayment
of the Obligations, whether created by law, contract, or otherwise.

 

    	56

    	 

    

  

“Subcontractor”
means any Person other than EPC Contractor that is providing Equipment, Materials, goods or services for the Project under any
Construction Documents (and shall include Equipment Dealer even if Equipment Dealer contracts directly with Borrower).

 

“Subsidiary”
means, as to any Person, means another Person of which partnership interests, member interests, shares of stock or other similar
ownership interests having ordinary voting power (other than interests having such power only by reason of the happening of a contingency)
to elect a majority of the board of directors, general partner, manager, managing partner or other governing body or management
Person or group of such Person are at the time owned, or the management of which is otherwise controlled, directly, or indirectly,
through one or more intermediaries, or both, by such Person.

 

“Support Documents”
means the Power Purchase Agreement, the Required Fuel Supply Agreements, the Compost Agreement, any deed or other document evidencing
Borrower’s ownership interest in (or rights with respect to) the Land, the Performance Guarantee Agreement, the O&M Agreement,
the Interconnection Agreement (to the extent such Interconnection Agreement relates to non-construction matters) and all other
documents listed on Schedule 3, each of which must be in form and substance satisfactory to Lender, and all amendments,
modifications and supplements with respect to the foregoing documents and any replacements, renewals, extensions, or restatements
thereof, and any substitutes therefor, in whole or in part.

 

“Tax Credits” means
production tax credits, investment tax credits or other tax credits for specified energy property provided for under the Code,
including Sections 45 or 48 thereof.

 

“Tax Credit
Recapture Event” means a determination by Internal Revenue Service or other Governmental Authority that all or any
portion of the Tax Credits shall be recaptured, disallowed or invalidated for any reason, including as a result of (a) any disposal
of specified energy property for which Borrower received any Tax Credits, (b) any transfer of any direct or indirect equity interest
in Borrower to any Disqualified Person, (c) a determination, following the receipt of the Tax Credits, that Borrower or the Project
does not qualify for Tax Credits, or (d) for any other reason, including impermissible cessation of energy production from the
Project.

 

“Tax Credit
Recapture Liabilities” means an amount equal to (i) the amount of the Tax Credit is recaptured, disallowed, or invalidated
as a result of a Tax Credit Recapture Event plus (ii) any associated interest and penalties or other amounts imposed in connection
with such recapture or disallowance.

 

“Taxes”
means any and all present or future sales, use, personal property, excise, gross receipts, income, franchise, stamp or other taxes,
levies, imposts, duties, fees, assessments, deductions, withholdings, turnover taxes, value added taxes or other charges of whatsoever
nature (excluding taxes measured by Lender’s net income by the United States or any state thereof) that may now or hereafter be
imposed or asserted by any foreign, state or local governmental body, agency, jurisdiction or any political subdivision thereof
or any taxing authority therein and all interest, penalties, fine, additions or similar liabilities with respect thereto.

 

“Term Credit
Spread Adjustment” means, on the date of calculation under Section 5.03, an amount determined by Lender to take into
account any incremental increases or decreases, as applicable, to Lender’s cost of funds (determined as set forth in Section 2.05
based on indicative pricing for a ten (10) year term) and all then applicable lending and borrowing market conditions.

 

“Term Note”
means the fixed rate promissory note substantially in the form attached hereto as Exhibit G, subject to adjustments as provided
in Section 5.03, and shall include all amendments, modifications and supplements with respect to the foregoing and any replacements,
renewals, extensions or restatements thereof, and any substitutes therefor.

 

“Tipping” has the
meaning ascribed thereto in the Recitals to this Agreement.

 

    	57

    	 

    

  

“Transaction
Documents” means this Agreement, the Notes, the Security Documents, and other documents executed on or after the
date hereof that expressly relate hereto (as the foregoing may be amended, supplemented and modified from time to time in accordance
with the terms hereof), together with all Exhibits and Schedules attached or to be attached to the foregoing. For purposes of clarity,
the term “Transaction Documents” expressly excludes any commitment letters, proposals or other similar documents executed
in connection herewith.

 

“UCC”
means the Uniform Commercial Code as in effect in the State of New York on the date of this Agreement; except to the extent that
the validity or perfection of any Lien or provisions regarding enforcement thereof requires application of the laws of a state
other than the State of New York.

 

    	58Exhibit 10.4

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated as of August 4, 2014, by and between Blue Sphere Corp., a Nevada
corporation, with headquarters located at 35 Asuta St., Even Yehuda 40500, Israel (the “Company”), and Adar Bays,
LLC., a Florida Limited Liability Company, with its address at 3411 Indian Creek Drive, Suite 403, Miami Beach, FL 33140 (the
“Buyer”).

 

WHEREAS:

 

A.           The
Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under
the Securities Act of 1933, as amended (the “1933 Act”);

 

B.           Buyer
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement an 8%
convertible note of the Company, in the forms attached hereto as Exhibit A in the aggregate principal amount of $50,000.00 (together
with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the
terms thereof, the “Note”), convertible into shares of common stock, $0.001 par value per share, of the Company (the
“Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note. The note (the
“Note”) shall be paid for by the Buyer as set forth herein.

 

C.           The
Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set forth
immediately below its name on the signature pages hereto; and

 

NOW THEREFORE,
the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.           Purchase
and Sale of Note.

 

a.           Purchase
of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase
from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages
hereto.

_____

Company Initials

 

    	 

    	 

    

  

b.           Form
of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and
sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds
to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the principal
amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto, and
(ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase
Price.

 

c.           Closing
Date. The date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall
be on or about August 4, 2014, or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement
(the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.

 

2.           Buyer’s
Representations and Warranties. The Buyer represents and warrants to the Company as of the date hereof and at Closing that:

 

a.           Investment
Purpose. The Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant
to the Note, such shares of Common Stock being collectively referred to herein as the “Conversion Shares” and, collectively
with the Note, the “Securities”) for its own account and not with a present view towards the public sale or distribution
thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided, however,
that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific
term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement
or an exemption under the 1933 Act.

 

b.           Accredited
Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an
“Accredited Investor”).

 

c.           Reliance
on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying upon the
truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the
Buyer to acquire the Securities.

 

    	2

    	 

    

 

d.           Information.
The Buyer, and its advisors, if any, acknowledge receipt and careful review of the Company’s filings and reports with the
Securities and Exchange Commission. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding
will continue to be, furnished with all materials relating to the business, finances and operations of the Company and materials
relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors,
if any, have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions
of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and
will not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure
to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives
shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section
3 below. The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware
of any facts that may constitute a breach of any of the Company's representations and warranties made herein.

 

e.           Governmental
Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Securities.

 

f.            Transfer
or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being registered under
the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities
are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company,
at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in
comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption
from such registration and reasonably acceptable to the Company, (c)  the Securities are sold pursuant to Rule 144; (ii)
any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further,
if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom
the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some
other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other
person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the
terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein
to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or other
lending arrangement.

 

g.           Legends.
The Buyer understands that the Note and Conversion Shares have not been registered under the 1933 Act and shall bear a restrictive
legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such
Securities):

 

“NEITHER THE ISSUANCE
AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE [NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE] HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM AND REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD
PURSUANT TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE
MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

    	3

    	 

    

  

The legend set forth
above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it
is stamped, if, unless otherwise required by applicable state securities laws, (a) following a sale thereof pursuant to an effective
registration statement covering the resale of such Security, (b) following any sale of such Security pursuant to Rule 144 (assuming
the transferor is not an affiliate of the Company), (c) if such Security is eligible to be transferred under Rule 144 without volume
or manner of sale restrictions (provided that the Buyer provides the Company with reasonable assurances that such Securities is
eligible transfer under Rule 144, which at the option of the Company may include an opinion of Buyer’s counsel), or (d) in
connection with a transfer (other than under Rule 144) the Buyer provides the Company with an opinion of counsel, in form, substance
and scope customary for opinions of counsel in comparable transactions and reasonably acceptable to the Company, to the effect
that a public sale or transfer of such Security may be made without registration under the 1933 Act. The Buyer agrees to sell all
Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable
prospectus delivery requirements, if any.

 

h.           Authorization;
Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf
of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

i.            Residency.
The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature pages hereto.

 

3.           Representations
and Warranties of the Company. The Company represents and warrants to the Buyer that, except as otherwise disclosed in the
Company’s public filings and reports with the Securities and Exchange Commission:

 

a.           Organization
and Qualification. The Company and each of its subsidiaries, if any, is a corporation duly organized, validly existing and
in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other)
to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted.

 

    	4

    	 

    

 

b.           Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the
Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms
hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the
transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation
for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s
Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required,
(iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized
representative is the true and official representative with authority to sign this Agreement and the other documents executed in
connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the
Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms.

 

c.           Issuance
of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance
with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances
with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the
Company and will not impose personal liability upon the holder thereof.

 

d.           Acknowledgment
of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance
of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to issue Conversion
Shares upon conversion of the Note in accordance with this Agreement and the Note is absolute and unconditional regardless of the
dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

e.           No
Conflicts. The execution, delivery and performance of this Agreement and the Note by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance
of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Articles of Incorporation
or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which
with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of its subsidiaries
is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state
securities laws and regulations and regulations of any self-regulatory organizations to which the Company or its securities are
subject) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries
is bound or affected (except in the case of paragraphs (ii) and (iii) above for such conflicts, breaches, defaults, terminations,
amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse
Effecton the business, properties, assets, liabilities, operations, results of operations, condition (financial or otherwise) or
prospects of the Company and its subsidiaries, taken as a whole, or on the transactions contemplated hereby (a “Material
Adverse Effect”)). All consents, authorizations, orders, filings and registrations which the Company is required to obtain
pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company is not in violation
of the listing requirements of the Over-the-Counter Quotations Bureau (the “OTCQB”) and does not reasonably anticipate
that the Common Stock will be delisted by the OTCQB in the foreseeable future, nor are the Company’s securities “chilled”
by FINRA. The Company and its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

    	5

    	 

    

  

f.            Absence
of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its subsidiaries,
threatened against or affecting the Company or any of its subsidiaries, or their officers or directors in their capacity as such,
that could have a Material Adverse Effect. Schedule 3(f) contains a complete list and summary description of any pending or, to
the knowledge of the Company, threatened proceeding against or affecting the Company or any of its subsidiaries, without regard
to whether it would have a Material Adverse Effect.

 

g.           Acknowledgment
Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the capacity
of arm’s length purchasers with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges
that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this
Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective representatives
or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely
incidental to the Buyer’ purchase of the Securities. The Company further represents to the Buyer that the Company’s
decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its representatives.

 

h.           No
Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly
or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would
require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer
will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any
shareholder approval provisions applicable to the Company or its securities.

 

i.            Title
to Property. The Company and its subsidiaries have good and marketable 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,
in each case free and Clean of all liens, encumbrances and defects except such as are described in Schedule 3(i) or such as would
not have a material adverse effect. Any real property and facilities held under lease by the Company and its subsidiaries are held
by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

 

    	6

    	 

    

 

j.            Breach
of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth
in this Section 3 in any respect, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will
be considered an Event of default under the Note.

 

4.           COVENANTS.

 

a.           Expenses.
At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation, preparation,
execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith (“Documents”),
including, without limitation, reasonable attorneys’ and consultants’ fees and expenses, transfer agent fees, fees
for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of provisions
in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions contemplated
by the Documents. When possible, the Company must pay these fees directly, otherwise the Company must make immediate payment for
reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission of an invoice
by the Buyer. Notwithstanding the aforegoing, the Company’s obligation with respect to this transaction is to reimburse Buyer’
expenses shall be $7,500 ($2,500 in legal fees and $5,000 in third party due diligence fees), which shall be deduced from the Note.

 

b.           Listing.
The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation
system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the
Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing
of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long as the Buyer
owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCQB or any equivalent replacement exchange,
the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq SmallCap”), the New York Stock
Exchange (“NYSE”), or the American Stock Exchange (“AMEX”) and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”)
and such exchanges, as applicable.

 

c.           Corporate
Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not
sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or sale of all or
substantially all of the Company’s assets, where the surviving or successor entity in such transaction assumes the Company’s
obligations hereunder and under the agreements and instruments entered into in connection herewith.

 

d.           No
Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the
Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision
applicable to the Company or its securities.

 

    	7

    	 

    

 

e.           Breach
of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies
available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Note.

 

5.           Governing
Law; Miscellaneous.

 

a.           Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard
to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county
of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The
Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's
fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law.

 

b.           Counterparts;
Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party. This Agreement, once executed by a party, may be delivered to the other party hereto by
facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

c.           Headings.
The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of,
this Agreement.

 

d.           Severability.
In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision hereof.

 

    	8

    	 

    

  

e.           Entire
Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company
nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

 

f.            Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

 

If to the
Company, to:

Blue Sphere
Corp.

35 Asuta
St,

Even Yehuda
40500, Israel

Attn: Shlomo Palas, CEO

  

If to the Buyer:

ADAR
BAYS, LLC 

3411 Indian
Creek Drive, Suite 403,

Miami Beach,
FL 33140

Attn: Samuel
Eisenberg

  

Each party shall provide
notice to the other party of any change in address.

 

g.           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that purchases Securities
in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act,
without the consent of the Company.

 

    	9

    	 

    

  

h.           Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.            Survival.
The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the
closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to
indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result
of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth
in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

 

j.            Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

k.          No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

l.            Remedies.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

    	10

    	 

    

  

IN WITNESS WHEREOF,
the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

Blue Sphere Corp.

 

	By: 	 	 
	 	Shlomo Palas	 
	 	Chief Executive Officer 	 

 

ADAR BAYS, LLC.

 

	By:	 	 
	Name: 	Samuel Eisenberg	 
	Title:	Manager	 

 

AGGREGATE SUBSCRIPTION AMOUNT:

 

	Aggregate Principal Amount of Note:	$50,000.00

 

Aggregate Purchase Price:

 

Note 1: $50,000.00 less $2,500 in legal
fees and $5,000 in third party due diligence fees

 

    	11

    	 

    

  

EXHIBIT A

144 NOTE - $50,000

 

    	12

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