Document:

Exhibit 10.9

 

NEITHER THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS NOTE 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.

 

US $75,000.00

 

BLUE SPHERE CORP.

8% CONVERTIBLE REDEEMABLE NOTE

DUE AUGUST 4, 2015

 

FOR VALUE RECEIVED,
Blue Sphere Corp. (the “Company”) promises to pay to the order of UNION CAPITAL, LLC and its authorized successors
and permitted assigns ("Holder"), the aggregate principal face amount of Seventy Five Thousand Dollars exactly
(U.S. $75,000.00) on August 4, 2015 ("Maturity Date") and to pay interest on the principal amount outstanding
hereunder at the rate of 8% per annum commencing on August 4, 2014. The interest will be paid to the Holder in whose name this
Note is registered on the records of the Company regarding registration and transfers of this Note. The principal of, and interest
on, this Note are payable at 338 Crown Street, Brooklyn, NY 11225, initially, and if changed, last appearing on the records of
the Company as designated in writing by the Holder hereof from time to time. The Company will pay each interest payment and the
outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or withheld,
to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing on the records of the
Company. The forwarding of such check or wire transfer shall constitute a payment of outstanding principal hereunder and shall
satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire transfer.
Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

 

 

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This Note is subject to the following
additional provisions:

 

1.          This
Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the
Holder surrendering the same. No service charge will be made for such registration or transfer or exchange, except that Holder
shall pay any tax or other governmental charges payable in connection therewith.

 

2.          The
Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

 

3.          This
Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended ("Act") and
applicable state securities laws. Any attempted transfer to a non-qualifying party shall be treated by the Company as void. Prior
to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this
Note is duly registered on the Company's records as the owner hereof for all other purposes, whether or not this Note be overdue,
and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this Note electing
to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a),
and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being
converted ("Notice of Conversion") in the form annexed hereto as Exhibit A. The date of receipt (including
receipt by telecopy) of such Notice of Conversion shall be the Conversion Date.

 

4.          (a)          The
Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this
Note then outstanding into shares of the Company's common stock (the "Common Stock"), at a price ("Conversion
Price") for each share of Common Stock equal to 58% of the lowest closing price of the Common Stock as reported
on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common
Stock may be traded in the future ("Exchange"), for the ten prior trading days including
the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or
other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes
to include the same day closing price). If the shares have not been delivered within 3 business days, the Notice of Conversion
may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common Stock to the Holder within
3 business days of receipt by the Company of the Notice of Conversion.  To effect conversions hereunder, the Holder shall
not be required to physically surrender this Note to the Company unless the entire principal amount of this Note, plus all accrued
and unpaid interest thereon, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal
amount of this Note in an amount equal to the applicable conversion.  The Holder and the Company shall maintain records
showing the principal amount(s) converted and the date of such conversion(s).  The Holder, and any assignee by acceptance
of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this
Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof. Accrued,
but unpaid interest shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued
on conversion, but the number of shares issuable shall be rounded to the nearest whole share. In the event the Company experiences
a DTC “Chill” on its shares, the conversion price shall be decreased to 48% instead of 58% while that “Chill”
is in effect.

 

 

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(b)          Interest
on any unpaid principal balance of this Note shall be paid at the rate of 8% per annum. Interest shall be paid by the Company in
Common Stock ("Interest Shares"). The Holder may, at any time, send in a Notice of Conversion to the Company for Interest
Shares based on the formula provided in Section 4(a) above. The dollar amount converted into Interest Shares shall be all or a
portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

 

(c)          During
the first six months this Note is in effect, the Company may redeem this Note by paying to the Holder an amount as follows: (i)
if the note is prepaid within 90 days of the issuance date, then at 125% of the face amount plus any accrued interest; (ii) if
the note is prepaid 91 days after the issuance date or later, then at 145% of the face amount plus any accrued interest. This Note
may not be prepaid after the 180th day. The redemption must be closed and paid for within 3 business days of the Company
sending the redemption demand or the redemption will be invalid and the Company may not redeem this Note.

 

(d)          Upon
(i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related
transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock,
other than a forward or reverse stock split or stock dividend, or (iii) any consolidation or merger of the Company with or into
another person or entity in which the Company is not the surviving entity (other than a merger which is effected solely to change
the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares
of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale Event"),
then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for 140% of the principal amount, plus
accrued but unpaid interest through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid
principal amount of this Note (together with the amount of accrued but unpaid interest) into shares of Common Stock immediately
prior to such Sale Event at the Conversion Price.

 

(e)         In case of any
Sale Event (not to include a sale of all or substantially all of the Company’s assets) in connection with which this Note
is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of this Note shall have
the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of shares of stock or
other securities or property (including cash) receivable upon such reclassification, capital reorganization or other change, consolidation
or merger by a holder of the number of shares of Common Stock that could have been purchased upon exercise of the Note and at the
same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing provisions shall similarly
apply to successive Sale Events. If the consideration received by the holders of Common Stock is other than cash, the value shall
be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.

 

 

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5.           No
provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal
of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

 

6.           The
Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of
dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder
and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

 

7.           The
Company agrees to pay all costs and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the Holder
in collecting any amount due under this Note.

 

8.           If
one or more of the following described "Events of Default" shall occur:

 

(a)          The
Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company
and such default is not cured within 10 days; or

 

(b)          Any
of the representations or warranties made by the Company herein or in any certificate or financial or other written statements
heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or
the Securities Purchase Agreement under which this note was issued shall be false or misleading in any material respect; or

 

(c)          The
Company shall fail to perform or observe, in any material respect, any covenant, term, provision, condition, agreement or obligation
of the Company under this Note or any other note issued to the Holder; or

 

(d)          The
Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment
for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee,
liquidator or receiver for its or for a substantial part of its property or business; (5) file a petition for bankruptcy relief,
consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal
or state laws as applicable; or

 

(e)          A
trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without
its consent and shall not be discharged within sixty (60) days after such appointment; or

 

(f)          Any
governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control
of the whole or any substantial portion of the properties or assets of the Company; or

 

 

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(g)          Unless
previously disclosed in the Company’s filings with the Securities and Exchange Commission, one or more money judgments, writs
or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered
or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed
for a period of fifteen (15) days or in any event later than five (5) days prior to the date of any proposed sale thereunder.

 

(h)         The
OTCQB ceases to quote the Common Stock and either (1) the Common Stock continues to be quoted on the OTCPink but no longer reports
under the Securities and Exchange Act of 1934, as amended, or (2) the Common Stock is no longer quoted on an over the counter market.

 

(i)          If
the Common Stock trades on an exchange, then trading in the Common Stock shall be suspended for more than 10 consecutive days;

 

(j)          The
Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business
days of its receipt of a Notice of Conversion to the extent that such legend is eligible for removal under Section 2(g) of the
Securities Purchase Agreement under which this Note was issued; or

 

(k)         The Company shall
not replenish the reserve set forth in Section 12, within 3 business days of the request of the Holder; or

 

(l)          The
Company shall not be “current” in its filings with the Securities and Exchange Commission; or

 

(m)         The
Company shall lose the “bid” price for its stock in a market (including the OTCQB marketplace or other exchange).

 

Then, or at any time thereafter, unless
cured, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver
shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion,
the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any
kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments
contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce
any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law. Upon an Event
of Default, interest shall accrue at a default interest rate of 16% per annum or, if such rate is usurious or not permitted by
current law, then at the highest rate of interest permitted by law. In the event of a breach of Section 8(j) the penalty shall
be $250 per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the
Company and this penalty shall increase to $500 per day beginning on the 10th day; provided that the aggregate penalty
payable shall not exceed 10% of the principal amount of this Note. The penalty for a breach of Section 8(m) shall be an increase
of the outstanding principal amounts by 20%. In case of a breach of Section 8(h), the outstanding principal due under this Note
shall increase by 50%. If this Note is not paid at maturity, the outstanding principal due under this Note shall increase by 10%.

 

 

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If the Holder shall commence an action
or proceeding to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails
in such action, the Holder shall be reimbursed by the Company for its reasonable attorneys’ fees and other costs and expenses
incurred in the investigation, preparation and prosecution of such action or proceeding.

 

9.          In
case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and
the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

 

10.         Neither
this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the
Company and the Holder.

 

11.         The
Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it previously
has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10 type information
indicating it is no longer a “shell issuer.

 

12.         The
Company shall issue irrevocable transfer agent instructions reserving 1,500,000 shares of its Common Stock for conversions under
this Note (the “Share Reserve”). The reserve shall be replenished as needed to allow for conversions of this Note.
Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all costs
associated with issuing and delivering the shares.

 

13.         The
Company will give the Holder direct notice of any corporate actions, including but not limited to name changes, stock splits, recapitalizations
etc. This notice shall be given to the Holder as soon as possible under law.

 

14.         This
Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed
within the State of New York and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company
hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York. This
Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be
effective as an original.

 

 

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IN WITNESS WHEREOF, the
Company has caused this Note to be duly executed by an officer thereunto duly authorized.

 

	Dated:	 	 	 
	 	 	 	 
	 	 	 	  BLUE SPHERE CORP.
	 	 	 	 	 
	 	 	 	  By:	 
	 	 	 	 	 
	 	 	 	Title:	 

 

 

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EXHIBIT A

 

NOTICE OF CONVERSION

 

(To be Executed by the Registered Holder
in order to Convert the Note)

 

The undersigned hereby
irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of Blue Sphere Corp. (“Shares”)
according to the conditions set forth in such Note, as of the date written below.

 

If Shares are to be issued
in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with
respect thereto.

 

	Date of Conversion:	 	 

	Applicable Conversion Price:	 	 

	Signature:	 	 

	[Print Name of Holder and Title of Signer]	 

	Address:	 	 

	 	 	 

 

	SSN or EIN:	 	 

	Shares are to be registered in the following name:	 

 

	Name:	 	 

	Address:	 	 

	Tel:	 	 

	Fax:	 	 

	SSN or EIN:	 	 

 

Shares are to be sent or delivered to the following account:

 

	Account Name:	 	 

	Address:	 	 

 

 

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    	8Exhibit 10.10

 

 

 

NEITHER
THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE BORROWER UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”)
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE
OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED: (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE
SECURITIES LAWS; OR (II) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT
REQUIRED UNDER THE 1933 ACT OR; (III) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

 

12% CONVERTIBLE NOTE

 

MATURITY DATE OF AUGUST 7, 2015

 

$125,000 AUGUST 7, 2014 *THE “ISSUANCE
DATE”

 

FOR VALUE RECEIVED, Blue Sphere Corp.,
a Nevada Corporation (the “Company”) doing business in Even Yehuda, Israel hereby promises to pay to the order of JSJ
Investments Inc., an accredited investor and Texas Corporation, or its assigns (the “Holder”) the principal amount
of One Hundred and Twenty-Five Dollars ($125,000), on demand of the Holder at any time on or after August 7, 2015 (the “Maturity
Date”), and to pay interest on the unpaid principal balance hereof at the rate of Twelve Percent (12%) per annum (the
“Interest Rate”) from the date hereof (the “Issuance Date”) until the same becomes due and payable, whether
at maturity or upon acceleration or by prepayment or otherwise; provided, that any amount of principal or interest on this
Note which is not paid when due shall bear interest at such rate on the unpaid principal balance hereof plus Default Interest from
the due date thereof until the same is paid in full. Interest shall commence accruing on the Issuance Date, shall be computed on
the basis of a 365-day year and the actual number of days elapsed and shall accrue daily and, after the Maturity Date, compound
quarterly.

 

		1.	Payments of Principal and Interest.

 

		a.	Payment of Principal. Until the One Hundred
and Twentieth (120) day from the Issuance Date, the Company may pay the principal at a cash redemption premium of 140% of the outstanding
principal without the Holder’s consent; from the 120th day from the Issuance Date to the One Hundred and Fiftieth
Day (150) day from the Issuance Date, the Company may pay the principal at a cash redemption premium of 150% of the outstanding
principal without the Holder’s consent. After the 150th day from the Issuance Date, up to and upon the Maturity
Date, this note has a cash redemption premium of 150% of the principal amount only upon approval and acceptance by JSJ Investments
Inc. This provision only may be exercised if the consent of the Holder is obtained. The principal balance of this Note shall be
paid to the Holder hereof on demand.

 

		b.	Default Interest. Any amount of principal
on this Note which is not paid when due shall bear Twelve Percent (12%) interest per annum from the date thereof until the same
is paid (“Default Interest”) and the Holder, at the
Holder’s sole discretion, may include any accrued but unpaid Default Interest in the Conversion Amount.

 

		c.	General Payment Provisions. This Note
shall be made in lawful money of the United States of America by check to such account as the Holder may from time to time designate
by written notice to the Company in accordance with the provisions of this Note. Whenever any amount expressed to be due by the
terms of this Note is due on any day which is not a Business Day (as defined below), the same shall instead be due on the next
succeeding day which is a Business Day and, in the case of any interest payment date which is not the date on which this Note
is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of
interest due on such date. For purposes of this Note, “Business Day”
shall mean any day other than a Saturday, Sunday or a day on which commercial
banks in the State of Texas are authorized or required by law or executive order to remain closed.

 

		2.	Conversion of Note. At any time prior
to the Maturity Date, or after the Maturity Date, the Conversion Amount of this Note shall be convertible into shares of the Company’s
common stock, share (the  “Common Stock”),
on the terms and conditions set forth in this Paragraph 2.

 

		a.	Certain Defined Terms. For purposes of
this Note, the following terms shall have the following meanings:

 

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		i.	“Conversion Amount”
means the sum of (A) the principal amount of this Note to be converted
with respect to which this determination is being made, (B) Interest; and (C) Default Interest, if any, on unpaid interest and
principal, if so included at the Holder’s sole discretion.

 

		ii.	“Conversion Price”
means the lower of: (i) a 45% discount to the average of the three lowest
daily trading prices for the previous twenty (20) trading days to the date of Conversion; or (ii) a 45% discount to the average
of the three lowest daily trading prices for the previous twenty (20) trading days before the date that this note was executed.

 

		iii.	“Person”
means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.

 

		iv.	“Shares”
means the Shares of the Company into which any balance on this Note may
be converted upon submission of a Conversion Notice.

 

		b.	Holder’s Conversion Rights. At any time or times on or after the Issuance Date, the Holder
shall be entitled to convert all of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable
shares of Common Stock in accordance with the stated Conversion Price.

 

		c.	Fractional Shares. The Company shall not issue any fraction of a share of Common Stock upon
                                                               any conversion; if such issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall
                                                               round such fraction of a share of Common Stock up to the nearest whole share.

 

		d.	Conversion Amount. Any Shares issuable upon conversion of this Note shall be freely transferable
subject to the provisions of Section 1 of that certain Irrevocable Instructions to Transfer Agent dated as of the date hereof.

 

		e.	Mechanics of Conversion. The conversion
of this Note shall be conducted in the following manner:

 

		i.	Holder’s Conversion Requirements.
To convert this Note into shares of Common Stock on any date set forth in the Conversion Notice by the Holder (the “Conversion
Date”), the Holder hereof shall transmit by email, facsimile or otherwise deliver, for receipt on or prior to 11:59 p.m.,
Eastern Time on such date or on the next business day, a copy of a fully executed notice of conversion in the form attached hereto
as Exhibit 1 (the “Conversion Date”) to the Company.

 

		ii.	Company’s Response. Upon receipt by the Company of a copy of a Conversion Notice, the Company
shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion Notice, send, via
email, facsimile or overnight courier, a confirmation of receipt of such Conversion Notice to such Holder indicating that the Company
will process such Conversion Notice in accordance with the terms herein. Within two (2) Business Days after the date of the Conversion
Confirmation, the Company shall have issued and electronically transferred the shares to the Broker indicated in the Conversion
Notice; should the Company be unable to transfer the shares electronically, it shall, within two (2) Business Days after the date
of the Conversion Confirmation, have surrendered to FedEx for delivery the next day to the address as specified in the Conversion
Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which the Holder shall
be entitled.

 

		iii.	Record Holder. The person or persons entitled to receive the shares of Common Stock issuable upon
a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the
Conversion Date.

 

		iv.	Timely Response by Company. Upon receipt by Company of a Conversion Notice, Company shall respond
in a timely manner to Holder by provision within two business days of the Shares requested in the Conversion Notice.

 

		v.	Penalty for Delinquent Response. If Company fails to deliver for whatever reason (including any
neglect or failure by, e.g., the Company, its counsel or the transfer agent) to Holder the Shares as requested in a Conversion
Notice and within three business days of the receipt thereof, there shall accrue a penalty of Additional Shares due to Holder equal
to 15% of the number stated in the Conversion Notice beginning on the Fourth business day after the date of the Notice. The Additional
Shares shall be issued and the amount of the Note retired will not be reduced beyond that stated in the Conversion Notice. Each
additional 5 business days beyond the Fourth business day after the date of this Notice shall accrue an additional 15% penalty
for delinquency, without any corresponding reduction in the amount due under the Note, for so long as Company fails to provide
the Shares so demanded. Notwithstanding the foregoing, the aggregate amount of penalty for delinquency payable hereunder shall
not exceed 100% of the number stated in the Conversion Notice.

 

    	2

    	 

    

 

 

 

		vi.	Conversion Right Unconditional. If the
Holder shall provide a Notice of Conversion as provided herein, the Company’s obligations to deliver Common Stock shall be
absolute and unconditional, irrespective of any claim of setoff, counterclaim, recoupment, or alleged breach by the Holder of any
obligation to the Company.

 

		vii.	Transfer Agent Fees and Legal Fees. The
issuance of the certificates shall be without charge or expense to the Holder. The Company shall pay any and all Transfer Agent
fees and legal fees required for processing of any Notice of Conversion, including but not limited to the cost of obtaining a legal
opinion with regard to the conversion.

 

		3.	Other Rights of Holders: Reorganization, Reclassification, Consolidation, Merger or Sale.
Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the Company’s
assets to another Person or other transaction which is effected in such a way that holders of Common Stock are entitled to receive
(either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock is
referred to herein as “Organic Change.”
Prior to the consummation of any (i) Organic Change or (ii) other Organic
Change following which the Company is not a surviving entity, the Company will secure from the Person purchasing such assets or
the successor resulting from such Organic Change (in each case, the “Acquiring Entity”)
a written agreement (in form and substance reasonably satisfactory to the Holder) to deliver to Holder in exchange for this Note,
a security of the Acquiring Entity evidenced by a written instrument substantially similar in form and substance to this Note,
and reasonably satisfactory to the Holder. Prior to the consummation of any other Organic Change, the Company shall make appropriate
provision (in form and substance reasonably satisfactory to the Holders of a majority of the Conversion Amount of the Notes then
outstanding) to ensure that each of the Holders will thereafter have the right to acquire and receive in lieu of or in addition
to (as the case may be) the shares of Common Stock immediately theretofore acquirable and receivable upon the conversion of such
Holder’s Note, such shares of stock, securities or assets that would have been issued or payable in such Organic Change with
respect to or in exchange for the number of shares of Common Stock which would have been acquirable and receivable upon the conversion
of such Holder’s Note as of the date of such Organic Change (without taking into account any limitations or restrictions
on the convertibility of the Note). All provisions of this Note must be included to the satisfaction of Holder in any new Note
created pursuant to this section.

 

		4.	Representations and Warranties of the Company.
In connection with the transactions provided for herein, the Company hereby represents and warrants to the Holders the following.

 

		a.	Organization, Good Standing and Qualification.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation
and has all requisite corporate power and authority to carry on its business as now conducted. The Company is duly qualified to
transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse
effect on its business or properties.

 

		b.	Authorization. All corporate action has
been taken on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and
delivery of this Agreement. The Company has taken all corporate action required to make all of the obligations of the Company reflected
in the provisions of this Agreement, valid and enforceable obligations. The shares of capital stock issuable upon conversion of
the Notes have been authorized or will be authorized prior to the issuance of such shares.

 

		c.	Fiduciary Obligations. The Company hereby
represents that it intends to use the proceeds of the Notes primarily for the operations of its business and not for any personal,
family, or household purpose. The Company hereby represents that its board of directors, in the exercise of its fiduciary duty,
has approved the execution of this Agreement based upon a reasonable belief that the loan provided for herein is appropriate for
the Company after reasonable inquiry concerning its financial objectives and financial situation.

 

		5.	Reserved.

 

		6.	Reserved.

 

    	3

    	 

    

 

 

 

		7.	Reservation of Shares. The Company shall
at all times, so long as any principal amount of the Note is outstanding, reserve and keep available out of its authorized and
unissued Common Stock, solely for the purpose of effecting the conversion of the Note, such number of shares of Common Stock as
shall at all times be sufficient to effect the conversion of all of the principal amount of the Note then outstanding. The initial
number of shares of Common Stock reserved for conversions of the Notes and each increase in the number of shares so reserved shall
be allocated pro rata among the Holders of the Note based on the principal and interest amount of the Notes held by each Holder
at the time of issuance of the Notes or increase in the number of reserved shares, as the case may be. In the event a Holder shall
sell or otherwise transfer any of such Holder’s Note, each transferee shall be allocated a pro rata portion of the number
of reserved shares of Common Stock reserved for such transferor. Any shares of Common Stock reserved and allocated to any Person
which ceases to hold any Note shall be allocated to the remaining Holders, pro rata based on the principal amount of the Note then
held by such Holders.

 

		8.	Voting Rights. Holders of this Note shall
have no voting rights, except as required by law.

 

		9.	Reissuance of Note. In the event of a
conversion or redemption pursuant to this Note of less than all of the Conversion Amount represented by this Note, the Company
shall promptly cause to be issued and delivered to the Holder, upon tender by the Holder of the Note converted or redeemed, a new
note of like tenor representing the remaining principal amount of this Note which has not been so converted or redeemed and which
is in substantially the same form as this Note, as set forth above.

 

		10.	Default and Remedies.

 

		a.	Event of Default. An “Event
of Default” is:
(i) default for ten (10) days in payment of interest or Default Interest on this Note; (ii) default in payment of the principal
amount of this Note when due; (iii) failure by the Company for thirty (30) days after notice to it to comply with any other material
provision of this Note; (iv) breach of any covenants, warranties, or representations by the Company herein; (v) cessation of operations
by the Company or a material subsidiary; (vi) if the Company pursuant to or within the meaning of any Bankruptcy Law; (A) commences
a voluntary case; (B) consents to the entry of an order for relief against it in an involuntary case; (C) consents to the appointment
of a Custodian of it or for all or substantially all of its property; (D) makes a general assignment for the benefit of its creditors;
or (E) admits in writing that it is generally unable to pay its debts as the same become due; or (vi) a court of competent jurisdiction
enters an order or decree under any Bankruptcy Law that: (I) is for relief against the Company in an involuntary case; (2) appoints
a Custodian of the Company or for all or substantially all of its property; or (3) orders the liquidation of the Company or any
subsidiary, and the order or decree remains unstayed and in effect for thirty (30) days. The Term “Bankruptcy Law”
means Title 11, U.S. Code, or any similar Federal or State Law for the
relief of debtors. The term “Custodian” means
any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

		b.	Remedies. If an Event of Default occurs
and is continuing, the Holder of this Note may declare all of this Note, including any interest and Default Interest and other
amounts due, to be due and payable immediately.

 

		11.	Vote to Change the Terms of this Note.
This Note and any provision hereof may only be amended by an instrument in writing signed by the Company and holders of a majority
of the aggregate Conversion Amount of the Notes then outstanding.

 

		12.	Lost or Stolen Note. Upon receipt by the
Company of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of
loss, theft or destruction, of an indemnification undertaking by the Holder to the Company in a form reasonably acceptable to the
Company and, in the case of mutilation, upon surrender and cancellation of the Notes, the Company shall execute and deliver a new
Note of like tenor and date and in substantially the same form as this Note; provided, however, the Company shall not be obligated
to re-issue a Note if the Holder contemporaneously requests the Company to convert such remaining principal amount into Common
Stock.

 

    	4

    	 

    

 

 

 

		13.	Payment of Collection, Enforcement and Other Costs.
If: (i) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any
legal proceeding; or (ii) an attorney is retained to represent the Holder of this Note in any bankruptcy, reorganization, receivership
or other proceedings affecting creditors’ rights and involving
a claim under this Note, then the Company shall pay to the Holder all reasonable attorneys’ fees,
costs and expenses incurred in connection therewith, in addition to all other amounts due hereunder.

 

		14.	Cancellation. After all principal and
accrued interest at any time owed on this Note has been paid in full, this Note shall automatically be deemed canceled, shall be
surrendered to the Company for cancellation and shall not be reissued.

 

		15.	Waiver of Notice. To the extent permitted
by law, the Company hereby waives demand, notice, protest and all other demands and notices in connection with the delivery, acceptance,
performance, default or enforcement of this Note.

 

		16.	Governing Law. This Note shall be
                                                                                                                                        construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and
                                                                                                                                        performance of this Note shall be governed by, the laws of the State of Texas, without giving effect to provisions thereof
                                                                                                                                        regarding conflict of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal
                                                                                                                                        courts sitting in Texas for the adjudication of any dispute hereunder or in connection herewith or with any transaction
                                                                                                                                        contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or
                                                                                                                                        proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or
                                                                                                                                        proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party
                                                                                                                                        hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or
                                                                                                                                        proceeding by sending by certified mail or overnight courier a copy thereof to such party at the address for such 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 manner permitted by
                                                                                                                                        law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
                                                                                                                                        ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
                                                                                                                                        CONTEMPLATED HEREBY.

 

		17.	Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief.
The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note, at law
or in equity (including a decree of specific performance and/or other injunctive relief), and no remedy contained herein shall
be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit a Holder’s
right to pursue actual damages for any failure by the Company to comply with the terms of this Note. The Company covenants to each
Holder of Notes that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts
set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the
amounts to be received by the Holder thereof and shall not, except as expressly provided herein, be subject to any other obligation
of the Company (or the performance thereof).

 

		18.	Specific Shall Not Limit General; Construction.
No specific provision contained in this Note shall limit or modify any more general provision contained herein. This Note shall
be deemed to be jointly drafted by the Company and all Holders and shall not be construed against any person as the drafter hereof.

 

		19.	Failure or Indulgence Not Waiver. No failure
or delay on the part of this Note in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of
any other right, power or privilege.

 

    	5

    	 

    

 

 

 

		20.	Partial Payment. In the event of partial
payment by the Holder, the principal sum due to the Holder shall be prorated based on the consideration actually paid by
lender such that the company is only required to repay the amount funded and the company is not required to repay any unfunded
portion of this note.

 

		21.	Entire Agreement. This Agreement constitutes
the full and entire understanding and agreement between the parties with regard to the subjects herein. None of the terms of this
Agreement can be waived or modified, except by an express agreement signed by the Parties.

 

		22.	Representations and Warranties. The Company
expressly acknowledges that the Holder, including but not limited to its officer, directors, employees, agents, and affiliates,
have not made any representation or warranty to it outside the terms of this Agreement. The Company further acknowledges that there
have been no representations or warranties about future financing or subsequent transactions between the parties.

 

		23.	Notices. All notices and other communications
given or made to the Company pursuant hereto shall be in writing (including facsimile or similar electronic transmissions) and
shall be deemed effectively given: (i) upon personal delivery, (ii) when sent by electronic mail or facsimile, as deemed received
by the close of business on the date sent, (iii) five (5) days after having been sent by registered or certified mail, return receipt
requested, postage prepaid or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day
delivery. All communications shall be sent either by email, or fax, or to the address specified on the signature page. The physical
address, email address, and phone number provided on the signature page shall be considered valid pursuant to the above stipulations;
should the Company’s contact information change from that listed on the signature page, it is incumbent on the Company to
inform the Holder.

 

		24.	Severability. If one or more provisions
of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the
rest of the Agreement shall be enforceable in accordance with its terms.

 

		25.	Usury. If it shall be found that any interest
or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due
hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law. The Company covenants
(to the extent that it may lawfully do so) that it will not seek to claim or take advantage of any law that would prohibit or forgive
the Company from paying all or a portion of the principal or interest on this Note.

 

		26.	Successors and Assigns. This Agreement
shall be binding upon successors and assigns.

 

— SIGNATURE PAGE TO
FOLLOW —

 

    	6

    	 

    

  

 

 

IN WITNESS WHEREOF, the
Company has caused this Note to be signed by its CEO, on and as of the Issuance Date.

 

	COMPANY:
    Blue Sphere Corp.	 
	 	 	 
	 	 	 
	Signature:	/s/ Shlomi Palas	 
	 	 	 
	By:	Shlomi Palas	 
	 	 	 
	Title:	CEO	 
	 	 	 
	Address:	35 Asuta St.	 
	 	 	 
	 	Even Yehuda	 
	 	 	 
	 	Israel 40500	 
	 	 	 
	Email:	shlomi@bluespherecorporate.com	 
	 	 	 
	Phone:	972-50-7796794	 

 

	HOLDER:	 
	 	 
	/s/ Sameer
    Hirji	 
	Sameer Hirji 	 
	JSJ Investments, Inc.	 

 

    	7

    	 

    

 

 

 

Exhibit 1

Conversion
Notice

 

Reference is made to
the Convertible Note issued by Blue Sphere Corp. (the "Note"), dated August 7, 2014 in the principal amount of
$125,000 with 12% interest. This note currently holds a principal balance of $125,000 and accrued interest in the amount of
$0. The features of conversion stipulate a Conversion Price the lower of (i) a 45% discount to the average of the
three lowest daily trading prices for the previous twenty (20) trading days to the date of Conversion; or (ii) a 45% discount
to the average of the three lowest daily trading prices for the previous twenty (20) trading days before the date that this
note was executed, pursuant to the provisions of Section 2(a)(2) in the Note.

 

In accordance with and
pursuant to the Note, the undersigned hereby elects to convert $______ of the PRINCIPLE/INTEREST balance of the Note, indicated
below into shares of Common Stock (the "Common Stock"), of the Company, by tendering the Note specified as of the date
specified below.

 

Date of Conversion: __________

 

Please confirm the following
information:

 

Conversion Amount: $ ____________________

 

Conversion Price: $ ____________________
( ____ % discount from $ ____________________)

 

Number of Common Stock
to be issued: ________________________________________________________

 

Current Issued/Outstanding:
________________________________________________________________

 

PLEASE ISSUE THE COMMON
STOCK INTO WHICH THE NOTE IS BEING CONVERTED IN THE NAME OF THE HOLDER OF THE NOTE AND TRANSFER THE SHARES ELECTRONICALLY TO:

 

[BROKER INFORMATION]

 

HOLDER AUTHORIZATION:

JSJ INVESTMENTS, INC.

2665 VILLA CREEK DRIVE,
SUITE 214

DALLAS, TX 75234

403.605.1977

 

Tax ID: 20-2122354

 

Sameer Hirji, President

 

Date:

 

[Continued on Next Page]

 

    	8

    	 

    

 

 

  

PLEASE BE
ADVISED, pursuant to Section 2(e)(2) of the Note, “Upon receipt by the Company of a copy of the Conversion Notice, the
Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion
Notice, SEND, VIA EMAIL, FACSIMILE OR OVERNIGHT COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO SUCH HOLDER
INDICATING THAT THE COMPANY WILL PROCESS SUCH CONVERSION NOTICE in accordance with the terms herein. Within two (2) Business
Days after the date of the Conversion Confirmation, the Company shall have issued and electronically transferred the shares
to the Broker indicated in Conversion the Notice; should the Company be unable to transfer the shares electronically, they
shall, within two (2) Business Days after the date of the Conversion Confirmation, have surrendered to FedEx for delivery the
next day to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the
number of shares of Common Stock to which the Holder shall be entitled”.

 

	Signature:	 
	 	 
	/s/ Shlomo Palas	 
	Shlomo Palas	 
	CEO	 
	Blue Sphere Corp.	 

 

    	9

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