Blue Sphere Corporation 8-K 



Exhibit 10.3


THIS WARRANT AND THE
SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT OR APPLICABLE EXEMPTION OR SAFE HARBOR PROVISION.


COMMON STOCK PURCHASE WARRANT


DOCUMENT W-10212016


BLUE
SPHERE CORPORATION


	Warrant Shares: 6,666,666	Initial Issue Date:  October 24, 2016


Aggregate Exercise Amount: $500,000


THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, [                    ],
its Principal, or its assigns (the “Investor” or the “Holder”) is entitled, upon the terms
and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the
“Initial Exercise Date”) and on or prior to the close of business on the five (5) year anniversary of the Initial
Exercise Date (as subject to adjustment hereunder, the “Termination Date”), to subscribe for and purchase from
Blue Sphere Corporation, a Nevada corporation (the “Issuer” or the “Company”), shares of
common stock of the Company (the “Common Stock”). The purchase price of one share of Common Stock under this
Warrant shall be equal to the Exercise Price, as defined in Section 1.2. The number of shares of Common Stock purchasable under
this Warrant (the “Warrant Shares”) shall be equal to the Aggregate Exercise Amount divided by the Exercise
Price.


ARTICLE 1   EXERCISE
RIGHTS


The Holder will have
the right to exercise this Warrant to purchase shares of Common Stock as set forth below. Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in that certain Securities Purchase Agreement Document SPA-10212016 dated October
24, 2016 between the Company and the Holder (the “Securities Purchase Agreement”).


1.1       


Exercise of Warrant.
Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, from and after the Initial Exercise
Date, and then at any time, by delivery to the Company’s transfer agent or to the Company (or such other office or agency
of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the
books of the Company) of a duly executed facsimile or emailed copy of the Notice of Exercise form annexed hereto. Within three
(3) business days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares
specified in the applicable Notice of Exercise by wire transfer or check drawn on a United States bank unless the cashless exercise
procedure specified in Section 1.3 below is specified in the applicable Notice of Exercise. Partial exercises of this Warrant resulting
in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding
number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder
and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company
shall deliver any objection to any Notice of Exercise form within 24 hours of receipt of such notice. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase
of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may
be less than the amount stated on the face hereof.


1.2       


Exercise Price.
The exercise price per share of Common Stock under this Warrant shall be the lesser of (i) 80% of the per share price of common
stock in the Public Offering, (ii) $0.075 per share, (iii) 80% of the unit price offering price in the Public Offering (if applicable),
or (iv) the exercise price of any warrants issued in the Public Offering, in each case subject to adjustment hereunder (the “Exercise
Price”). The aggregate exercise price is $500,000.




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1.3       


Cashless Exercise.
The Holder may exercise this Warrant, in whole or in part, at any time after the Initial Exercise Date and prior to the Termination
Date by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares
equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:


(A) =


the VWAP on the trading day immediately
preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth
in the applicable Notice of Exercise;


(B) =


the Exercise Price of this Warrant,
as adjusted hereunder; and


(X) =


the number of Warrant Shares that
would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of
a cash exercise rather than a cashless exercise.


1.4       


Termination.
On the Termination Date, if all or any portion of this Warrant remains unexercised, the Termination Date shall be automatically
extended for two years.


1.5       


Delivery of Warrant
Shares. Warrant Shares purchased hereunder will be delivered to Holder by 2:30 pm EST within two (2) business days of Notice
of Exercise by “DWAC/FAST” electronic transfer (such date, the “Warrant Share Delivery Date”). For
example, if Holder delivers a Notice of Exercise to the Company at 5:15 pm eastern time on Monday January 1st, the Company’s
transfer agent must deliver shares to Holder’s broker via “DWAC/FAST” electronic transfer by no later than 2:30
pm eastern time on Wednesday January 3rd. The Warrant Shares shall be deemed to have been issued, and Holder or any
other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes,
as of the date of delivery of the Notice of Exercise. The Company will make its best efforts to deliver the Warrant Shares to
the Holder the same day or next day.


1.6       


Delivery of Warrant.
The Holder shall not be required to physically surrender this Warrant to the Company. If the Holder has purchased all of the Warrant
Shares available hereunder and the Warrant has been exercised in full, this Warrant shall automatically be cancelled without the
need to surrender the Warrant to the Company for cancellation. If this Warrant shall have been exercised in part, the Company shall,
at the request of Holder and upon surrender of this Warrant, at the time of delivery of the Warrant Shares, deliver to the Holder
a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which
new Warrant shall in all other respects be identical with this Warrant and, for purposes of Rule 144, shall tack back to the original
date of this Warrant.


1.7       


Warrant Exercise
Rescission Rights. For any reason in Holder’s sole discretion, including if the Warrant Shares are not delivered by DWAC/FAST
electronic transfer or in accordance with the timeframe stated in Section 1.5, or for any other reason, Holder may, at any time
prior to selling those Warrant Shares rescind such exercise, in whole or in part, in which case the Company must, within three
(3) days of receipt of notice from the Holder, repay to the Holder the portion of the exercise price so rescinded and reinstate
the portion of the Warrant and equivalent number of Warrant Shares for which the exercise was rescinded and, for purposes of Rule
144, such reinstated portion of the Warrant and the Warrant Shares shall tack back to the original date of this Warrant. If Warrant
Shares were issued to Holder prior to Holder’s rescission notice, upon return of payment from the Company, Holder will, within
three (3) days of receipt of payment, commence procedures to return the Warrant Shares to the Company.




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1.8       


Compensation for
Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to the Holder, if
the Company fails to cause its transfer agent to transmit to the Holder the Warrant Shares on or before the Warrant Share Delivery
Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the
Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of
the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company
shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage
commissions and other fees, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying
(1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue
times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the
Holder, either (x) reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not
honored (in which case such exercise shall be deemed rescinded), (y) deliver to the Holder the number of shares of Common Stock
that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder, or (z) pay in
cash to the Holder the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver
to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase
obligation was executed. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect
of the Buy-In and, upon request of the Company, evidence of the amount of such loss.


1.9       


Make-Whole for Market
Loss after Exercise. At the Holder’s election, if the Company fails for any reason to deliver to the Holder the Warrant
Shares by DWAC/FAST electronic transfer (such as by delivering a physical certificate) and if the Holder incurs a Market Price
Loss, then at any time subsequent to incurring the loss the Holder may provide the Company written notice indicating the amounts
payable to the Holder in respect of the Market Price Loss and the Company must make the Holder whole as follows:


Market Price Loss = [(High trade
price on the day of exercise) x (Number of Warrant Shares)] – [(Sales price realized by Holder) x (Number of Warrant Shares)]


The Company must pay the Market Price
Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder’s written
notice to the Company.


1.10       


Make-Whole for Failure
to Deliver Loss. At the Holder’s election, if the Company fails for any reason to deliver to the Holder the Warrant Shares
by the Warrant Share Delivery Date and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder may provide
the Company written notice indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and the Company
must make the Holder whole as follows:


Failure to Deliver Loss = [(High
trade price at any time on or after the day of exercise) x (Number of Warrant Shares)]


The Company must pay the Failure
to Deliver Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder’s
written notice to the Company.




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1.11       


Default. Each
of the following are an event of default under this Warrant: (i) the Issuer shall fail to deliver shares from any exercise of this
Warrant when due and payable thereunder; or (ii) the Issuer shall fail to pay any cash or other amount due under this Warrant when
due and payable thereunder; or (iii) the Issuer shall breach or fail to honor any other term of this Warrant, any term under any
other document related to this Warrant, or any other written agreement between the Issuer and the Investor (collectively, the “Transaction
Documents”), including, without limitation, the Issuer’s obligation to reserve at all times a sufficient number
of shares to provide for the issuance of common stock upon the full exercise of the Warrant pursuant to Section 3.2 of the Securities
Purchase Agreement; or (iv) the Issuer fails to keep available a sufficient number of authorized, unissued and unreserved shares
of common stock (other than shares of common stock reserved for the Investor) to permit the Investor to increase its share reserve
to such number of shares as equals not less than five times the number of shares necessary to provide for full exercise of Warrants
owned by the Investor; or (v) the Issuer’s failure to increase the number of authorized shares of common stock of the Issuer
within sixty days of having a number of authorized, unissued, and unreserved shares of common stock (excluding shares of common
stock reserved for the Investor) of less than three times the number of shares necessary to provide for the issuance of common
stock upon full exercise of the warrants owned by the Investor; or (vi) the Issuer terminates or replaces the entity or person
serving as the transfer agent for the Issuer without obtaining the previous written consent of the Investor thirty days in advance
of such termination or replacement; or (vii) the Issuer’s failure to appoint a new transfer agent approved by the Investor
(such approval not to be unreasonably withheld) and to provide the Investor, within five business days following termination, resignation
or replacement of the current transfer agent, an irrevocable instruction and share reservation letter, executed by the Issuer and
the new transfer agent, providing rights to the Investor identical to the rights provided to the Investor in the irrevocable instruction
and share reservation letter between the Issuer, the Investor, and the terminated, resigned or replaced transfer agent; or (viii)
the Issuer shall become insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become
due, subject to applicable grace periods, if any; or (ix) the Issuer shall make a general assignment for the benefit of creditors;
or (x) the Issuer shall file a petition for relief under any bankruptcy, insolvency or similar law (domestic or foreign); or (xi)
an involuntary proceeding shall be commenced or filed against the Issuer; or (xii) the Issuer’s common stock has an offering
price of $0.0001 on its principal trading market at any time; or (xiii) the Issuer’s market capitalization (the number of
shares of common stock issued and outstanding multiplied by the price per share of common stock) is less than $200,000 at any time
or decreases to less than 50% of the market capitalization on the Effective Date of any payment of Consideration under the Note;
or (xiv) the price per share of the Issuer’s common stock decreases to less than 50% of the price per share on the Effective
Date of any payment of Consideration; or (xv) the Issuer shall lose its status as “DTC Eligible” or the Issuer’s
shareholders shall lose the ability to deposit (either electronically or by physical certificates, or otherwise) shares into the
DTC System; or (xvi) the Issuer shall become delinquent in its filing requirements as a fully-reporting issuer registered with
the SEC; or (xvii) the Issuer shall fail to meet all requirements to satisfy the availability of Rule 144 to the Investor or its
assigns including but not limited to timely fulfillment of its filing requirements as a fully-reporting issuer registered with
the SEC, requirements for XBRL filings, and requirements for disclosure of financial statements on its website; or (xviii) the
Issuer fails to file with the SEC by December 15, 2016 the Preliminary Schedule 14C Information Statement notifying the Issuer’s
shareholders that the Issuer’s board of directors and a majority of the Issuer’s outstanding voting securities have
approved the Reverse Split; or (xix) the Issuer fails to file with the SEC by January 15, 2017 the Definitive Schedule 14C Information
Statement notifying the Issuer’s shareholders that the Issuer’s board of directors and a majority of the Issuer’s
outstanding voting securities have approved the Reverse Split; or (xx) the Issuer fails to file the Registration Statement with
the SEC by December 15, 2016; or (xxi) the Issuer fails to file with the SEC by February 15, 2017 Amendment No. 1 to the Registration
Statement; or (xxii) the reverse split of the Issuer’s common stock fails to become effective by March 15, 2017; or (xxiii)
the Issuer fails to obtain from Nasdaq or NYSE by February 28, 2017 conditional approval of the listing of the Issuer’s common
stock on The Nasdaq Capital Market or NYSE-MKT subject only to completion of the Public Offering pursuant to the Registration Statement
and to the Issuer’s common stock maintaining the minimum price requirements prior to uplisting; or (xxiv) Maxim Group or
the Issuer terminates the engagement letter in which the Issuer engaged Maxim Group to conduct the public offering of the Issuer’s
securities pursuant to the Registration Statement; or (xxv) Maxim Group or the Issuer suspends pursuit of the public offering of
the Issuer’s securities pursuant to the Registration Statement.


1.12.       


Remedies. For
each notice of exercise of a warrant, in the event that shares are not delivered by the third business day (inclusive of the day
of exercise), a fee of $2,000 per day will be assessed for each day after the third business day (inclusive of the day of exercise)
until share delivery is made; and such fee will be added to the Aggregate Exercise Amount of the Warrant (under the Investor’s
and the Issuer’s expectations that any penalty amounts will tack back to the Initial Issue Date of the Warrant). The Issuer
will not be subject to any penalties once its transfer agent correctly processes the shares to the DWAC system. Upon each occurrence
of any other event of default enumerated in Section 1.11 above, the Investor may asses and apply a fee against the Issuer of $25,000
at any time any Aggregate Exercise Amount remains outstanding on this Warrant, regardless of whether such event of default has
been cured or remedied. The parties agree that the fee shall be added to the Aggregate Exercise Amount of the Warrant and shall
tack back to the Initial Issue Date of the Warrant for purposes of Rule 144. The Investor agrees that for each Event of Default
that triggers a remedy under this Section, the Investor may apply the liquidated damages amount to either the Note or the Warrant,
at its election, but shall not apply duplicated liquidated damages to both the Note and the Warrant for the same occurrence of
an Event of Default. The parties acknowledge and agree that upon an event of default, Investor’s damages would be uncertain
and difficult (if not impossible) to accurately estimate because of the parties’ inability to predict future interest rates
and future share prices, Investor’s increased risk, and the uncertainty of the availability of a suitable substitute investment
opportunity for Investor, among other reasons. Accordingly, any fees, charges, and default interest due under this Note or any
other Transaction Document between the parties are intended by the parties to be, and shall be deemed, liquidated damages. The
parties agree that such liquidated damages are a reasonable estimate of Investor’s actual damages and not a penalty, and
shall not be deemed in any way to limit any other right or remedy Investor may have hereunder, at law or in equity. The parties
acknowledge and agree that under the circumstances existing at the time this Note is entered into, such liquidated damages are
fair and reasonable and are not penalties. All fees, charges, and default interest provided for in this Note and the Transaction
Documents are agreed to by the parties to be based upon the obligations and the risks assumed by the parties as of the Effective
Date and are consistent with investments of this type. The liquidated damages provisions shall not limit or preclude a party from
pursuing any other remedy available at law or in equity; provided, however, that the liquidated damages are intended to be in lieu
of actual damages.




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1.13       


Choice of Remedies.
Nothing herein, including, but not limited to, Holder’s electing to pursue its rights under Sections 1.9, 1.10 or 1.12 of
this Warrant, shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief. In this regard, the Company hereby agrees that the
Holder will be entitled to obtain specific performance and/or injunctive relief with respect to any default under this Warrant,
including, without limitation, with respect to the Issuer’s failure to timely deliver shares of Common Stock upon exercise
of the Warrant as required pursuant to the terms hereof, or the Issuer’s obligations regarding the reservation of shares
and its transfer agent, including the use, termination, replacement or resignation of the transfer agent and the obligation to
deliver an irrevocable instruction and share reservation letter with any subsequent transfer agent. The Issuer agrees that, in
such event, all requirements for specific performance and/or preliminary and permanent injunctive relief will be satisfied, including
that the Investor would suffer irreparable harm for which there would be no adequate legal remedy. The Issuer further agrees that
it will not object to a court or arbitrator granting or ordering specific performance or preliminary and/or permanent injunctive
relief in the event the Investor demonstrates that the Issuer has failed to comply with any obligation herein. Such a grant or
order may require the Issuer to immediately issue shares to the Investor pursuant to a Notice of Exercise, and/or require the Issuer
to immediately satisfy its obligations regarding the reservation of shares and its transfer agent, including the use, termination,
replacement or resignation of the Issuer’s transfer agent and the obligation to deliver an irrevocable instruction and share
reservation letter with any subsequent transfer agent. The Issuer further expressly waives any right to any bond in connection
with any temporary or preliminary injunction.


1.14       


Charges, Taxes and
Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental
expense in respect of the issuance of such shares, all of which taxes and expenses shall be paid by the Company, and such Warrant
Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder. The Company shall pay
all transfer agent fees required for same-day processing of any Notice of Exercise.


1.15       


Holder’s Exercise
Limitations. Unless otherwise agreed in writing by both the Company and the Holder, at no time will the Holder exercise any
amount of this Warrant to purchase Common Stock that would result in the Holder owning more than 9.99% of the Common Stock outstanding
of the Company (the “Beneficial Ownership Limitation”). Upon the written or oral request of Holder, the Company
shall within twenty-four (24) hours confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.


ARTICLE 2   ADJUSTMENTS


2.1       


Stock Dividends
and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution
or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common
Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of
reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification of shares
of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction
of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately
before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such
event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate
Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 2.1 shall become effective
immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall
become effective immediately after the effective date in the case of a subdivision, combination or re-classification.




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2.2       


Public Offering
Price Reset. If the Company closes on the Public Offering, the Exercise Price shall be reduced and only reduced to equal the
Reset Price and consequently the number of Warrant Shares issuable hereunder shall be increased such that the Aggregate Exercise
Amount hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the Aggregate Exercise Amount
prior to such adjustment. The Reset Price is the lesser of (i) 80% of the common stock offering price of the Public Offering, (ii)
80% of the unit price offering price of the Public Offering, or (iii) the exercise price of any warrants issued in the Public Offering.


2.3       


Subsequent Equity
Sales. Until such time up to and including the date on which the Company closes on the Public Offering, if the Company or any
Subsidiary thereof, as applicable, at any time while this Warrant is outstanding, shall sell or grant any option to purchase, or
sell or grant any right to reprice, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase
or other disposition) any Common Stock (including pursuant to the terms of any outstanding securities issued prior to the issuance
of this security (including, but not limited to, warrants, convertible notes, or other agreements)) or any security entitling the
holder thereof (including pursuant to sales, grants, conversions, warrant exercises or other issuances to the Holder as a result
of these Transaction Documents, prior transaction documents, or future transaction documents) to acquire Common Stock, including,
without limitation, any debt, preferred stock, right, option, warrant or other instrument that is convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock (a “Common Stock Equivalent”),
at an effective price per share less than the Exercise Price then in effect (such lower price, the “Base Share Price”
and such issuances collectively, a “Dilutive Issuance”) (it being understood and agreed that if the holder of
the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which
are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that
is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price on such date of
the Dilutive Issuance at such effective price regardless of whether such holder has received or ever receives shares at such effective
price), then simultaneously with the consummation of each Dilutive Issuance the Exercise Price shall be reduced and only reduced
to equal the Base Share Price and consequently the number of Warrant Shares issuable hereunder shall be increased such that the
Aggregate Exercise Amount hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the Aggregate
Exercise Amount prior to such adjustment. Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents
are issued. The Company shall notify the Holder, in writing, no later than the business day following the issuance or deemed issuance
of any Common Stock or Common Stock Equivalents subject to this Section 2.3, indicating therein the applicable issuance price,
or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive Issuance
Notice”). In addition, the Company and/or its transfer agent shall provide the Holder, whenever the Holder requests at
any time while this Warrant is outstanding, a schedule of all issuances of Common Stock or Common Stock Equivalents since the date
of the Securities Purchase Agreement, including the applicable issuance price, or applicable reset price, exchange price, conversion
price, exercise price and other pricing terms. The term issuances shall also include all agreements to issue, or prospectively
issue Common Stock or Common Stock Equivalents, regardless of whether the issuance contemplated by such agreement is consummated.
The Company shall notify the Holder in writing of any issuances within twenty-four (24) hours of such issuance. For purposes of
clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 2.3, upon the occurrence
of any Dilutive Issuance, the Holder is entitled to receive a number of Warrant Shares based upon the Base Share Price regardless
of whether the Holder accurately refers to the Base Share Price in the Notice of Exercise. If the Company enters into a Variable
Rate Transaction, the Company shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest possible conversion
or exercise price at which such securities may be converted or exercised. “Variable Rate Transaction” means
a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or
exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion price, exercise
price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the shares
of Common Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise or
exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or
upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market
for the Common Stock or (ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby the Company
may sell securities at a future determined price.




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2.4       


Subsequent Rights
Offerings. In addition to any adjustments pursuant to Section 2.1 through 2.3 above, if at any time the Company grants, issues
or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to
any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date
on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as
of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder
exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such
extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in
the Holder exceeding the Beneficial Ownership Limitation).


2.5       


Pro Rata Distributions.
If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to the
Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase
any security other than the Common Stock (which shall be subject to Section 2.4), then in each such case the Exercise Price shall
be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders
entitled to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date
mentioned above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at
such record date of the portion of such assets or evidence of indebtedness or rights or warrants so distributed applicable to one
outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall
be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such
subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made
and shall become effective immediately after the record date mentioned above.


2.6       


Notice to Holder.
Whenever the Exercise Price is adjusted pursuant to any provision of this Article 2, the Company shall promptly notify the Holder
(by written notice) setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant
Shares and setting forth a brief statement of the facts requiring such adjustment.


ARTICLE 3   COMPANY COVENANTS


3.1       


Reservation of Shares.
As set forth in Section 3.2 of the Securities Purchase Agreement, the Company will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of Warrant Shares upon the full exercise of this Warrant. The Company
represents that upon issuance, such Warrant Shares will be duly and validly issued, fully paid and non-assessable. The Company
agrees that its issuance of this Warrant constitutes full authority to its officers, agents and transfer agents who are charged
with the duty of executing and issuing shares to execute and issue the necessary Warrant Shares upon the exercise of this Warrant.
No further approval or authority of the stockholders of the Board of Directors of the Company is required for the issuance of the
Warrant Shares.


3.2       


No Adverse Actions.
Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without
limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount
payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary
or appropriate in order that the Company may validly and legally issue fully paid and non-assessable Warrant Shares upon the exercise
of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under
this Warrant.




    	7 



    	 



    

 


ARTICLE 4   MISCELLANEOUS


4.1       


Representation by
the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise
hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing
or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law,
except pursuant to sales registered or exempted under the Securities Act.


4.2       


Transferability.
Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, by a written assignment of this Warrant duly executed by the Holder
or its agent or attorney. If necessary to obtain a new warrant for any assignee, the Company, upon surrender of this Warrant, shall
execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination
or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion
of this Warrant not so assigned, and such new Warrants, for purposes of Rule 144, shall tack back to the original date of this
Warrant. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant
Shares without having a new Warrant issued.


4.3       


Assignability.
The Company may not assign this Warrant. This Warrant will be binding upon the Company and its successors, and will inure to the
benefit of the Holder and its successors and assigns, and may be assigned by the Holder to anyone of its choosing without the Company’s
approval.


4.4       


Notices. Any
notice required or permitted hereunder must be in writing and either personally served, sent by facsimile or email transmission,
or sent by overnight courier. Notices will be deemed effectively delivered at the time of transmission if by facsimile or email,
and if by overnight courier the business day after such notice is deposited with the courier service for delivery.


4.5       


Governing Law, Legal
Proceedings, and Arbitration. This Warrant will be governed by, construed and enforced
in accordance with the substantive laws of the State of Nevada (including any rights to specific relief provided for under Nevada
statutes), without regard to the conflict of laws principles thereof. The parties hereby warrant and represent that the selection
of Nevada law as governing under this Warrant (i) has a reasonable nexus to each of the Parties and to the transactions contemplated
by the Warrant; and (ii) does not offend any public policy of Nevada, Florida, or of any other state, federal, or other jurisdiction.


Any
action brought by either party against the other arising out of or related to this Warrant, or any other agreements between the
parties, shall be commenced only in the state or federal courts of general jurisdiction located in Miami-Dade County, in the State
of Florida, except that all such disputes between the parties shall be subject to alternative dispute resolution through binding
arbitration at the Investor’s sole discretion and election (regardless of which party initiates the legal proceedings).
The parties agree that, in connection with any such arbitration proceeding, each shall submit or file any claim which would constitute
a compulsory counterclaim within the same proceeding as the claim to which it relates. Any such claim that is not submitted or
filed in such proceeding shall be waived and such party will forever be barred from asserting such a claim. Both parties and the
individuals signing this Note agree to submit to the jurisdiction of such courts or to such arbitration panel, as the case may
be.


If the Investor elects alternative dispute
resolution by arbitration, the arbitration proceedings shall be conducted in Miami-Dade County and administered by the American
Arbitration Association in accordance with its Commercial Arbitration Rules and Mediation Procedures in effect on the Issue Date
of this Warrant, except as modified by this Warrant. The Investor’s demand for arbitration shall be made in writing, delivered
to the other party, and filed with the American Arbitration Association. The American Arbitration Association must receive the
demand for arbitration prior to the date when the institution of legal or equitable proceedings would be barred by the applicable
statute of limitations, unless legal or equitable proceedings between the parties have already commenced, and the receipt by the
American Arbitration Association of a written demand for arbitration also shall constitute the institution of legal or equitable
proceedings for statute of limitations purposes. The parties shall be entitled to limited discovery at the discretion of the arbitrator(s)
who may, but are not required to, allow depositions. The parties acknowledge that the arbitrators’ subpoena power is not
subject to geographic limitations. The arbitrator(s) shall have the right to award individual relief which he or she deems proper
under the evidence presented and applicable law and consistent with the parties’ rights to, and limitations on, damages and
other relief as expressly set forth in this Warrant. The award and decision of the arbitrator(s) shall be conclusive and binding
on all parties, and judgment upon the award may be entered in any court of competent jurisdiction. The Investor reserves the right,
but shall have no obligation, to advance the Issuer’s share of the costs, fees and expenses of any arbitration proceeding,
including any arbitrator fees, in order for such arbitration proceeding to take place, and by doing so will not be deemed to have
waived or relinquished its right to seek the recovery of those amounts from the arbitrator, who shall provide for such relief in
the final award, in addition to the costs, fees, and expenses that are otherwise recoverable. The foregoing agreement to arbitrate
shall be specifically enforceable under applicable law in any court having jurisdiction thereof.




    	8 



    	 



    

 


 


4.6       


Delivery of Process
by Holder to the Company. In the event of any action or proceeding by Holder against the Company, and only by Holder against
the Company, service of copies of summons and/or complaint and/or any other process which may be served in any such action or proceeding
may be made by Holder via U.S. Mail, overnight delivery service such as FedEx or UPS, email, fax, or process server, or by mailing
or otherwise delivering a copy of such process to the Company at its last known address or to its last known attorney set forth
in its most recent SEC filing.


4.7       


No Rights as Stockholder
Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of
the Company prior to the exercise hereof as set forth in Section 1.1. So long as this Warrant is unexercised, this Warrant carries
no voting rights and does not convey to the Holder any “control” over the Company, as such term may be interpreted
by the SEC under the Securities Act or the Exchange Act, regardless of whether the price of the Company’s Common Stock exceeds
the Exercise Price.


4.8       


Limitation of Liability.
No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares,
and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase
price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors
of the Company.


4.9       


Attorney Fees.
In the event any attorney is employed by either party to this Warrant with regard to any legal or equitable action, arbitration
or other proceeding brought by such party for the enforcement of this Warrant or because of an alleged dispute, breach, default
or misrepresentation in connection with any of the provisions of this Warrant, the prevailing party in such proceeding will be
entitled to recover from the other party reasonable attorneys’ fees and other costs and expenses incurred, in addition to
any other relief to which the prevailing party may be entitled.


4.10       


Opinion of Counsel.
The Company shall provide the Holder with an opinion of counsel prior to the Initial Issue Date of this Warrant that neither this
Warrant, nor any other agreement between the parties, nor any of their terms (including, but not limited to, interest, original
issue discount, conversion terms, warrants terms, penalties, fees or liquidated damages), individually or collectively violate
any usury laws in the State of Nevada. Prior to the Initial Issue Date of this Warrant, the Issuer and its management have reviewed
such opinion, consulted their counsel on the opinion and on the matter of usury, and have further researched the matter of usury
to their satisfaction. Further, the Issuer and its management agree with the opinion of the Issuer’s counsel that neither
this Warrant nor any other agreement between the parties is usurious and they agree they will not raise a claim of usury as a defense
to the performance of the Issuer’s obligations under this Warrant or any other agreement between the parties. THE ISSUER
HEREBY WARRANTS AND REPRESENTS THAT THE SELECTION OF NEVADA LAW AS GOVERNING UNDER THIS AGREEMENT (I) HAS A REASONABLE NEXUS TO
EACH OF THE PARTIES AND TO THE TRANSACTIONS CONTEMPLATED BY THESE AGREEMENTS; AND (II) DO NOT OFFEND ANY PUBLIC POLICY OF NEVADA,
FLORIDA, OR OF ANY OTHER STATE, FEDERAL, OR OTHER JURISDICTION. In the event that an opinion of counsel is needed for any matter
related to this Warrant, Holder has the right to have any such opinion provided by its counsel. Holder also has the right to have
any such opinion provided by the Company’s counsel.


4.11       


Nonwaiver. No
course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such
right or otherwise prejudice the Holder’s rights, powers or remedies.




    	9 



    	 



    

 


4.12       


Amendment Provision.
The term “Warrant” and all references thereto, as used throughout this instrument, means this instrument as originally
executed, or if later amended or supplemented, then as so amended or supplemented.


4.13       


No Shorting.
Holder agrees that so long as this Warrant remains unexercised in whole or in part, Holder will not enter into or effect any “short
sale” of the common stock or hedging transaction which establishes a net short position with respect to the common stock
of the Company. The Company acknowledges and agrees that as of the date of delivery to the Company of a fully and accurately completed
Notice of Exercise, Holder immediately owns the common shares described in the Notice of Exercise and any sale of those shares
issuable under such Notice of Exercise would not be considered short sales.


*          *         *


 


IN WITNESS WHEREOF,
the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.


	 	BLUE SPHERE CORPORATION
	 	 
	 	By: 	 
	 	 	Shlomi Palas
	 	 	Chief Executive Officer
	 	 	 
	 	HOLDER:
	 	 
	 	 	 
	 	[       ]/ Its Principal


 




    	10 



    	 



    

 


NOTICE OF EXERCISE


To:     BLUE
SPHERE CORPORATION


(1)  The undersigned
hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised
in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.


(2)  Payment shall
take the form of (check applicable box):


[  ]
in lawful money of the United States; or


[  ] the
cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in Section 1.3, to exercise
this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth
in Section 1.3.


(3)  Please issue
a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified
below:


_______________________________


The Warrant Shares shall be delivered
to the following DWAC Account Number:


_______________________________


_______________________________


_______________________________


(4)  Accredited
Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities
Act of 1933, as amended.


[SIGNATURE
OF HOLDER]


Name: _______________________________________


Date: ________________________________________