Document:

BLUE SPHERE CORPORATION S-1

 

 

EXHIBIT 10.26

 

 

BLUE SPHERE CORPORATION

 

2016 STOCK INCENTIVE PLAN

 

		1.	Purpose

 

Blue Sphere Corporation’s 2016 Stock Incentive
Plan is intended to promote the best interests of Blue Sphere Corporation and its stockholders by (i) assisting the Corporation
and its Affiliates in the recruitment and retention of persons with ability and initiative, (ii) providing an incentive to such
persons to contribute to the growth and success of the Corporation’s businesses by affording such persons equity participation
in the Corporation and (iii) associating the interests of such persons with those of the Corporation and its Affiliates and stockholders.

  

		2.	Definitions

 

As used in this Plan the following definitions
shall apply:

 

A.          “Affiliate” means (i)
any Subsidiary, (ii) any Parent, (iii) any corporation, or trade or business (including, without limitation, a partnership, limited
liability company or other entity) which is directly or indirectly controlled fifty percent (50%) or more (whether by ownership
of stock, assets or an equivalent ownership interest or voting interest) by the Corporation or one of its Affiliates, and (iv)
any other entity in which the Corporation or any of its Affiliates has a material equity interest and which is designated as an
“Affiliate” by resolution of the Committee.

 

B.          “Award” means any Option
or Stock Award granted hereunder.

 

C.          “Board” means the Board
of Directors of the Corporation.

 

D.          “Code” means the Internal
Revenue Code of 1986, and any amendments thereto.

 

E.          “Committee” means the
Board or any Committee of the Board to which the Board has delegated any responsibility for the implementation, interpretation
or administration of this Plan.

 

F.          “Common Stock” means the
common stock, no par value, of the Corporation.

 

G.          “Consultant” means (i)
any person performing consulting or advisory services for the Corporation or any Affiliate, or (ii) a director of an Affiliate.

 

H.          “Corporation” means Blue
Sphere Corporation, a Nevada corporation.

 

I.            “Corporation Law” means
Title 7 of the Nevada Revised Statutes, as the same shall be amended from time to time.

 

J.            “Date of Grant” means
the date that the Committee approves an Option grant; provided, that all terms of such grant, including the number of shares subject
to the grant, exercise price and vesting are defined at such time.

 

K.          “Deferral Period” means
the period of time during which Deferred Shares are subject to deferral limitations under Section 7.D of this Plan.

 

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L.             “Deferred Shares” means
an award pursuant to Section 7.D of this Plan of the right to receive shares of Common Stock at the end of a specified Deferral
Period.

 

M.            “Director” means a member
of the Board.

 

N.           “Eligible Person” means
an employee of the Corporation or an Affiliate (including a corporation that becomes an Affiliate after the adoption of this Plan),
a Director or a Consultant to the Corporation or an Affiliate (including a corporation that becomes an Affiliate after the adoption
of this Plan).

 

O.            “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

P.             “Fair Market Value” means,
on any given date, the current fair market value of the shares of Common Stock as determined as follows:

 

(i)          If the Common Stock is traded
on a national securities exchange, the closing price for the day of determination as quoted on such market or exchange, including
the NASDAQ Global Market or NASDAQ Capital Market, which is the primary market or exchange for trading of the Common Stock or if
no trading occurs on such date, the last day on which trading occurred, or such other appropriate date as determined by the Committee
in its discretion, as reported in The Wall Street Journal or such other source as the Committee deems reliable;

 

(ii)          If the Common Stock is regularly
quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the
high and the low asked prices for the Common Stock for the day of determination; or

 

(iii)          In the absence of an established
market for the Common Stock, Fair Market Value shall be determined by the Committee in good faith.

 

Q.            “Family Member” means
a parent, child, spouse or sibling.

 

R.             “Incentive Stock Option”
means an Option (or portion thereof) intended to qualify for special tax treatment under Section 422 of the Code.

 

S.             “Nonqualified Stock Option”
means an Option (or portion thereof) which is not intended or does not for any reason qualify as an Incentive Stock Option.

 

T.            “Option” means any option
to purchase shares of Common Stock granted under this Plan.

 

U.            “Parent” means any corporation
(other than the Corporation) in an unbroken chain of corporations ending with the Corporation if each of the corporations (other
than the Corporation) owns stock possessing at least fifty percent (50%) of the total combined voting power of all classes of stock
in one of the other corporations in such chain.

 

V.             “Participant” means an
Eligible Person who (i) is selected by the Committee or an authorized officer of the Corporation to receive an Award and (ii) is
party to an agreement setting forth the terms of the Award, as appropriate.

 

W.          “Performance Agreement”
means an agreement described in Section 8 of this Plan.

 

X.           “Performance Objectives”
means the performance objectives established by the Committee pursuant to this Plan for Participants who have received grants of
Awards. Performance Objectives may be described in terms of Corporation-wide objectives or objectives that are related to the performance
of the individual Participant or the Affiliate, division, department or function within the Corporation or Affiliate in which the
Participant is employed

 

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or has responsibility. Any Performance Objectives applicable to Awards to the extent that such an Award
is intended to qualify as “Performance Based Compensation” under Section 162(m) of the Code shall be limited to specified
levels of or increases in the Corporation’s or a business unit’s return on equity, earnings per share, total earnings,
earnings growth, return on capital, return on assets, economic value added, earnings before interest and taxes, earnings before
interest, taxes, depreciation and amortization, sales growth, gross margin return on investment, increase in the Fair Market Price
of the shares, net operating profit, cash flow (including, but not limited to, operating cash flow and free cash flow), cash flow
return on investments (which equals net cash flow divided by total capital), internal rate of return, increase in net present value
or expense targets. The Awards intended to qualify as “Performance Based Compensation” under Section 162(m) of the
Code shall be pre-established in accordance with applicable regulations under Section 162(m) of the Code and the determination
of attainment of such goals shall be made by the Committee. If the Committee determines that a change in the business, operations,
corporate structure or capital structure of the Corporation (including an event described in Section 9), or the manner in which
it conducts its business, or other events or circumstances render the Performance Objectives unsuitable, the Committee may modify
such Performance Objectives or the related minimum acceptable level of achievement, in whole or in part, as the Committee deems
appropriate and equitable; provided, however, that no such modification shall be made to an Award intended to qualify as “Performance
Based Compensation” under Section 162(m) of the Code unless the Committee determines that such modification will not result
in loss of such qualification or the Committee determines that loss of such qualification is in the best interests of the Corporation.

 

Y.          “Performance Period” means
a period of time established under Section 8 of this Plan within which the Performance Objectives relating to a Stock Award are
to be achieved.

 

Z.          “Performance Share” means
an award pursuant to Section 8 of this Plan of the right to receive shares of Common Stock upon the achievement of specified Performance
Objectives.

 

AA.      “Plan” means this Blue
Sphere Corporation 2016 Stock Incentive Plan.

 

BB.       “Repricing” means, other
than in connection with an event described in Section 9 of this Plan, (i) lowering the exercise price of an Option after it has
been granted or (ii) canceling an Option at a time when the exercise price exceeds the then-Fair Market Value of the Common Stock
in exchange for another Option.

 

CC.       “Restricted
Stock Award” means an award of Common Stock under Section 7.B.

 

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

 

EE.        “Stock Award” means a
Stock Bonus Award, Restricted Stock Award, Stock Appreciation Right, Deferred Shares, or Performance Shares.

 

FF.        “Stock Bonus Award” means
an award of Common Stock under Section 7.A.

 

GG.       “Stock Award Agreement”
means a written agreement between the Corporation and a Participant setting forth the specific terms and conditions of a Stock
Award granted to the Participant under Section 7. Each Stock Award Agreement shall be subject to the terms and conditions of this
Plan and shall include such terms and conditions as the Committee shall authorize.

 

HH.       “Stock Option Agreement”
means an agreement (written or electronic) between the Corporation and a Participant setting forth the specific terms and conditions
of an Option granted to the Participant. Each Stock Option Agreement shall be subject to the terms and conditions of this Plan
and shall include such terms and conditions as the Committee shall authorize.

 

II.          “Subsidiary” means any
corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation if each of the corporations
(other than the last corporation in the unbroken chain)

 

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owns stock possessing at least fifty percent (50%) of the total combined
voting power of all classes of stock in one of the other corporations in such chain.

 

JJ.           “Ten
Percent Owner” means any Eligible Person owning at the time an Option is granted more than ten percent (10%) of the
total combined voting power of all classes of stock of the Corporation or of a Parent or Subsidiary. An individual shall, in accordance
with Section 424(d) of the Code, be considered to own any voting stock owned (directly or indirectly) by or for such Eligible
Person’s brothers, sisters, spouse, ancestors and lineal descendants and any voting stock owned (directly or indirectly)
by or for a corporation, partnership, estate or trust shall be considered as being owned proportionately by or for its stockholders,
partners, or beneficiaries.

 

	3.	implementation,
interpretation and Administration

 

A.          Delegation to Board Committee. The
Board shall have the sole authority to implement, interpret, and/or administer this Plan unless the Board delegates all or any
portion of its authority to implement, interpret, and/or administer this Plan to a Committee. To the extent not prohibited by the
Certificate of Incorporation or Bylaws of the Corporation, the Board may delegate all or a portion of its authority to implement,
interpret, and/or administer this Plan to a Committee of the Board appointed by the Board and constituted in compliance with the
applicable Corporation Law. The Committee shall consist solely of two (2) or more Directors who are (i) Non-Employee Directors
(within the meaning of Rule 16b-3 under the Exchange Act) for purposes of exercising administrative authority with respect to Awards
granted to Eligible Persons who are subject to Section 16 of the Exchange Act; (ii) to the extent required by the rules of the
market on which the Corporation’s shares are traded or the exchange on which the Corporation’s shares are listed, “independent”
within the meaning of such rules; and (iii) at such times as an Award under this Plan by the Corporation is subject to Section
162(m) of the Code (to the extent relief from the limitation of Section 162(m) of the Code is sought with respect to Awards and
administration of the Awards by a committee of “outside directors” is required to receive such relief), “outside
directors” within the meaning of Section 162(m) of the Code.

 

B.            Delegation to Officers. The Committee
may delegate to one or more officers of the Corporation the authority to grant and administer Awards to Eligible Persons who are
not Directors or executive officers of the Corporation; provided that the Committee shall have fixed the total number of shares
of Common Stock that may be subject to such Awards. No officer holding such a delegation is authorized to grant Awards to himself
or herself. In addition to the Committee, the officer or officers to whom the Committee has delegated the authority to grant and
administer Awards shall have all powers delegated to the Committee with respect to such Awards.

 

C.            Powers of the Committee. Subject to
the provisions of this Plan, and in the case of a Committee appointed by the Board, the specific duties delegated to such Committee,
the Committee (and the officers to whom the Committee has delegated such authority) shall have the authority:

 

(i)         To construe and interpret all
provisions of this Plan and all Stock Option Agreements, Stock Award Agreements, Performance Agreements, or any other agreement
under this Plan.

 

(ii)         To determine the Fair Market
Value of Common Stock in the absence of an established market for the Common Stock.

 

(iii)        To select the Eligible Persons
to whom Awards are granted from time to time hereunder.

 

(iv)        To determine the number of shares
of Common Stock covered by an Award; to determine whether an Option shall be an Incentive Stock Option or Nonqualified Stock Option;
and to determine such other terms and conditions, not inconsistent with the terms of this Plan, of each such Award. Such terms
and conditions include, but are not limited to, the exercise price of an Option, purchase price of Common Stock subject to a Stock
Award, the time or times when Options or a Stock Award may be exercised or Common Stock issued thereunder, the vesting schedule
of an Option, the right of the Corporation to repurchase Common Stock issued pursuant to the exercise of an Option or a Stock Award
and other restrictions or

 

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limitations (in addition to those contained in this Plan) on the forfeitability or transferability of
Options, Stock Awards or Common Stock issued upon exercise of an Option or pursuant to a Stock Award. Such terms may include conditions
which shall be determined by the Committee and need not be uniform with respect to Participants.

 

(v)         To accelerate the time at which
any Option or Stock Award may be exercised, or the time at which a Stock Award or Common Stock issued under this Plan may become
transferable or non-forfeitable.

 

(vi)        To determine whether and under
what circumstances an Option or Stock Award may be settled in cash, shares of Common Stock or other property under Section 6.H
instead of in Common Stock.

 

(vii)       To waive, amend, cancel, extend,
renew, accept the surrender of, modify or accelerate the vesting of or lapse of restrictions on all or any portion of an outstanding
Award. Except as otherwise provided by this Plan, Stock Option Agreement, Stock Award Agreement or Performance Agreement or as
required to comply with applicable law, regulation or rule, no amendment, cancellation or modification shall, without a Participant’s
consent, adversely affect any rights of the Participant; provided, however, that (x) an amendment or modification that may cause
an Incentive Stock Option to become a Nonqualified Stock Option shall not be treated as adversely affecting the rights of the Participant
and (y) any other amendment or modification of any Stock Option Agreement, Stock Award Agreement or Performance Agreement that
does not, in the opinion of the Committee, adversely affect any rights of any Participant, shall not require such Participant’s
consent. Notwithstanding the foregoing, the restrictions on the Repricing of Options, as set forth in this Plan, may not be waived.

 

(viii)      To prescribe the form of Stock
Option Agreements, Stock Award Agreements, Performance Agreements, or any other agreements under this Plan; to adopt policies and
procedures for the exercise of Options or Stock Awards, including the satisfaction of withholding obligations; to adopt, amend,
and rescind policies and procedures pertaining to the administration of this Plan; and to make all other determinations necessary
or advisable for the administration of this Plan. Except for the due execution of the award agreement by both the Corporation and
the Participant, the Award’s effectiveness will not be dependent on any signature unless specifically so provided in the
award agreement.

 

The express grant in this Plan of any specific
power to the Committee shall not be construed as limiting any power or authority of the Committee; provided that the Committee
may not exercise any right or power reserved to the Board. Any decision made, or action taken, by the Committee or in connection
with the implementation, interpretation, and administration of this Plan shall be final, conclusive and binding on all persons
having an interest in this Plan.

  

		4.	Eligibility

 

A.           Eligibility for Awards. Awards, other
than Incentive Stock Options, may be granted to any Eligible Person selected by the Committee. Incentive Stock Options may be granted
only to employees of the Corporation or a Parent or Subsidiary.

 

B.         Eligibility of Consultants. A Consultant
shall be an Eligible Person only if the offer or sale of the Corporation’s securities would be eligible for registration
on Form S-8 Registration Statement (or any successor form) because of the identity and nature of the service provided by such person,
unless the Corporation determines that an offer or sale of the Corporation’s securities to such person will satisfy another
exemption from the registration under the Securities Act and complies with the securities laws of all other jurisdictions applicable
to such offer or sale. Accordingly, an Award may not be granted pursuant to this Plan for the purpose of the Corporation obtaining
financing or for investor relations purposes.

 

C.         Substitution Awards. The Committee
may make Awards under this Plan by assumption, in substitution or replacement of performance shares, phantom shares, stock awards,
stock options or similar awards granted by

 

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another entity (including an Affiliate) in connection with a merger, consolidation, acquisition of property
or stock or similar transaction. Notwithstanding any provision of this Plan (other than the maximum number of shares of Common
Stock that may be issued under this Plan), the terms of such assumed, substituted, or replaced Awards shall be as the Committee,
in its discretion, determines is appropriate.

 

5.
           Common
Stock Subject to Plan

 

A.           Share
Reserve and Limitations on Grants. The maximum aggregate number of shares of Common Stock that may be (i) issued under this
Plan pursuant to the exercise of Options (without regard to whether payment on exercise of the Stock Option is made in cash or
shares of Common Stock) and (ii) issued pursuant to Stock Awards shall be 45,000,000 shares, of which up to 15,000,000 shares
shall be reserved specifically for the issuance of Incentive Stock Options. The number of shares of Common Stock subject to the
Plan shall be subject to adjustment as provided in Section 9. Notwithstanding any provision hereto to the contrary, shares subject
to the Plan shall include shares forfeited in a prior year as provided herein. For purposes of determining the number of shares
of Common Stock available under this Plan, shares of Common Stock withheld by the Corporation to satisfy applicable tax withholding
obligations pursuant to Section 10 of this Plan shall be deemed issued under this Plan. No single participant may receive more
than 25% of the total Options awarded in any single year.

 

B.            Reversion
of Shares. If an Option or Stock Award is terminated, expires or becomes unexercisable, in whole or in part, for any reason,
the unissued or unpurchased shares of Common Stock which were subject thereto shall become available for future grant under this
Plan. Shares of Common Stock that have been actually issued under this Plan shall not be returned to the share reserve for future
grants under this Plan; except that shares of Common Stock issued pursuant to a Stock Award which are forfeited to the Corporation
or repurchased by the Corporation at the original purchase price of such shares, shall be returned to the share reserve for future
grant under this Plan.

 

C.            Source
of Shares. Common Stock issued under this Plan may be shares of authorized and unissued Common Stock or shares of previously
issued Common Stock that have been reacquired by the Corporation.

 

6.
           Options

 

A.           Award.
In accordance with the provisions of Section 4, the Committee will designate each Eligible Person to whom an Option is to be granted
and will specify the number of shares of Common Stock covered by such Option. The Stock Option Agreement shall specify whether
the Option is an Incentive Stock Option or Nonqualified Stock Option, the exercise price of such Option, the vesting schedule
applicable to such Option, the expiration date of such Option, events of termination of such Option, and any other terms of such
Option. No Option that is intended to be an Incentive Stock Option shall be invalid for failure to qualify as an Incentive Stock
Option.

 

B.            Option Price. The exercise
price per share for Common Stock subject to an Option shall be determined by the Committee, but shall comply with the following:

 

(i)         The exercise price per
share for Common Stock subject to an Option shall not be less than one hundred percent (100%) of the Fair Market Value on the date
of grant.

 

(ii)        The exercise price per
share for Common Stock subject to an Incentive Stock Option granted to a Participant who is deemed to be a Ten Percent Owner on
the date such option is granted, shall not be less than one hundred ten percent (110%) of the Fair Market Value on the date of
grant.

 

C.            Maximum
Option Period. The maximum period during which an Option may be exercised shall be ten (10) years from the date such Option
was granted. In the case of an Incentive Stock Option that is granted to a

 

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Participant who is or is deemed to be a Ten Percent Owner on the date of grant,
such Option shall not be exercisable after the expiration of five (5) years from the date of grant.

 

D.           Maximum Value of Options which
are Incentive Stock Options. To the extent that the aggregate Fair Market Value of the Common Stock with respect to which Incentive
Stock Options granted to any Participant are exercisable for the first time during any calendar year (under all stock option plans
of the Corporation or any Parent or Subsidiary) exceeds $100,000 (or such other amount provided in Section 422 of the Code), the
Options shall not be deemed to be Incentive Stock Options. For purposes of this section, the Fair Market Value of the Common Stock
will be determined as of the time the Incentive Stock Option with respect to the Common Stock is granted. This section will be
applied by taking Incentive Stock Options into account in the order in which they are granted.

 

E.            Nontransferability.
Options granted under this Plan which are intended to be Incentive Stock Options shall be nontransferable except by will or by
the laws of descent and distribution and, during the lifetime of the Participant, shall be exercisable by only the Participant
to whom the Incentive Stock Option is granted. Except to the extent transferability of a Nonqualified Stock Option is provided
for in the Stock Option Agreement or is approved by the Committee, during the lifetime of the Participant to whom the Nonqualified
Stock Option is granted, such Option may be exercised only by the Participant. If the Stock Option Agreement so provides or the
Committee so approves, a Nonqualified Stock Option may be transferred by a Participant through a gift or domestic relations order
to the Participant’s family members to the extent such transfer complies with applicable securities laws and regulations
and provided that such transfer is not a transfer for value (within the meaning of applicable securities laws and regulations).
The holder of a Nonqualified Stock Option transferred pursuant to this section shall be bound by the same terms and conditions
that governed the Option during the period that it was held by the Participant. No right or interest of a Participant in any Option
shall be liable for, or subject to, any lien, obligation, or liability of such Participant, unless such obligation is to the Corporation
itself or to an Affiliate.

 

F.            Vesting.
Options will vest as provided in the Stock Option Agreement.

 

G.           Termination.
Options will terminate as provided in the Stock Option Agreement.

 

H.           Exercise.
Subject to the provisions of this Plan and the applicable Stock Option Agreement, an Option may be exercised to the extent vested
in whole at any time or in part from time to time at such times and in compliance with such requirements as the Committee shall
determine. A partial exercise of an Option shall not affect the right to exercise the Option from time to time in accordance with
this Plan and the applicable Stock Option Agreement with respect to the remaining shares subject to the Option. An Option may
not be exercised with respect to fractional shares of Common Stock. The Participant may face certain restrictions on his/her ability
to exercise Options and/or sell underlying shares when such Participant is potentially in possession of insider information. The
Corporation will make the Participant aware of any formal insider trading policy it adopts, and the provisions of such insider
trading policy (including any amendments thereto) shall be binding upon the Participant.

 

I.             Payment.
Unless otherwise provided by the Stock Option Agreement, payment of the exercise price for an Option shall be made in cash or
a cash equivalent acceptable to the Committee or if the Common Stock is traded on an established securities market, by payment
of the exercise price by a broker-dealer or by the Option holder with cash advanced by the broker-dealer if the exercise notice
is accompanied by the Option holder’s written irrevocable instructions to deliver the Common Stock acquired upon exercise
of the Option to the broker-dealer or by delivery of the Common Stock to the broker-dealer with an irrevocable commitment by the
broker-dealer to forward the exercise price to the Corporation. With the consent of the Committee, payment of all or a part of
the exercise price of an Option may also be made (i) by surrender to the Corporation (or delivery to the Corporation of a properly
executed form of attestation of ownership) of shares of Common Stock that have been held for such period prior to the date of
exercise as is necessary to avoid adverse accounting treatment to the Corporation, or (ii) any other method acceptable to the
Committee. If Common Stock is used to pay all or part of the exercise price, the sum of the cash or cash equivalent and the Fair
Market Value (determined as of the date of exercise) of the shares surrendered must not be less than the Option price of the shares
for which the Option is being exercised.

 

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J.            Stockholder
Rights. No Participant shall have any rights as a stockholder with respect to shares subject to an Option until the date of
exercise of such Option and the certificate for shares of Common Stock to be received on exercise of such Option has been issued
by the Corporation.

 

K.           Disposition
and Stock Certificate Legends for Incentive Stock Option Shares. A Participant shall notify the Corporation of any sale or
other disposition of Common Stock acquired pursuant to an Incentive Stock Option if such sale or disposition occurs (i) within
two years of the grant of an Option or (ii) within one year of the issuance of the Common Stock to the Participant. Such notice
shall be in writing and directed to the Chief Financial Officer of the Corporation or is his/her absence, the Chief Executive
Officer. The Corporation may require that certificates evidencing shares of Common Stock purchased upon the exercise of Incentive
Stock Options issued under this Plan be endorsed with a legend in substantially the following form:

 

THE SHARES EVIDENCED BY THIS CERTIFICATE
MAY NOT BE SOLD OR TRANSFERRED PRIOR TO ___, 20___, IN THE ABSENCE OF A WRITTEN STATEMENT FROM THE CORPORATION TO THE EFFECT THAT
THE CORPORATION IS AWARE OF THE FACTS OF SUCH SALE OR TRANSFER.

 

The blank contained in this legend shall
be filled in with the date that is the later of (i) one year and one day after the date of the exercise of such Incentive Stock
Option or (ii) two years and one day after the grant of such Incentive Stock Option.

 

L.            No
Repricing. In no event shall the Committee permit a Repricing of any Option without the approval of the stockholders of the
Corporation.

 

7.
           Stock Awards

 

A.           Stock
Bonus Awards. Stock Bonus Awards may be granted by the Committee. Each Stock Award Agreement for a Stock Bonus Award shall
be in such form and shall contain such terms and conditions (including provisions relating to consideration, vesting, reacquisition
of shares following termination, and transferability of shares) as the Committee shall deem appropriate. The terms and conditions
of Stock Award Agreements for Stock Bonus Awards may change from time to time and need not be uniform with respect to Participants,
and the terms and conditions of separate Stock Bonus Awards need not be identical.

 

B.           Restricted
Stock Awards. Restricted Stock Awards may be granted by the Committee. Each Stock Award Agreement for a Restricted Stock Award
shall be in such form and shall contain such terms and conditions (including provisions relating to purchase price, consideration,
vesting, reacquisition of shares following termination, and transferability of shares) as the Committee shall deem appropriate.
The terms and conditions of the Stock Award Agreements for Restricted Stock Awards may change from time to time and need not be
uniform with respect to Participants, and the terms and conditions of separate Restricted Stock Awards need not be identical.
Vesting of any grant of Restricted Stock Awards may be further conditioned upon the attainment of Performance Objectives established
by the Committee in accordance with the applicable provisions of Section 8 of this Plan regarding Performance Shares.

 

C.           Deferred
Shares. The Committee may authorize grants of Deferred Shares to Participants upon the recommendation of the Corporation’s
management, and upon such terms and conditions as the Committee may determine in accordance with the following provisions:

 

(i)         Each grant shall constitute
the agreement by the Corporation to issue or transfer shares of Common Stock to the Participant in the future in consideration
of the performance of services, subject to the fulfillment during the Deferral Period of such conditions as the Committee may specify.

  

(ii)        Each grant may be made
without additional consideration from the Participant or in consideration of a payment by the Participant that is less than the
Fair Market Value on the date of grant.

 

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(iii)       Each grant shall provide
that the Deferred Shares covered thereby shall be subject to a Deferral Period, which shall be fixed by the Committee on the date
of grant, and any grant or sale may provide for the earlier termination of such period in the event of a change in control of the
Corporation or other similar transaction or event.

 

(iv)       During the Deferral Period,
the Participant shall not have any right to transfer any rights under the subject Award, shall not have any rights of ownership
in the Deferred Shares and shall not have any right to vote such shares, but the Committee may on or after the date of grant, authorize
the payment of dividend or other distribution equivalents on such shares in cash or additional shares on a current, deferred or
contingent basis.

 

(v)        Any grant, or the vesting
thereof, may be further conditioned upon the attainment of Performance Objectives established by the Committee in accordance with
the applicable provisions of Section 8 of this Plan regarding Performance Shares.

 

(vi)       Each grant shall be evidenced
by an agreement delivered to and accepted by the Participant and containing such terms and provisions as the Committee may determine
consistent with this Plan. The terms and conditions of the agreements for Deferred Shares may change from time to time and need
not be uniform with respect to Participants, and the terms and conditions of separate Deferred Shares need not be identical.

 

8.
           Performance
Shares 

 

A.           The Committee may authorize grants
of Performance Shares, which shall become payable to the Participant upon the achievement of specified Performance Objectives,
upon such terms and conditions as the Committee may determine in accordance with the following provisions:

 

(i)         Each grant shall specify
the number of Performance Shares to which it pertains, which may be subject to adjustment to reflect changes in compensation or
other factors.

 

(ii)        The Performance Period
with respect to each Performance Share shall commence on the date established by the Committee and may be subject to earlier termination
in the event of a change in control of the Corporation or similar transaction or event.

 

(iii)       Each grant shall specify
the Performance Objectives that are to be achieved by the Participant.

 

(iv)       Each grant may specify
in respect of the specified Performance Objectives a minimum acceptable level of achievement below which no payment will be made
and may set forth a formula for determining the amount of any payment to be made if performance is at or above such minimum acceptable
level but falls short of the maximum achievement of the specified Performance Objectives.

 

(v)         Each grant shall specify
the time and manner of payment of Performance Shares that shall have been earned, and any grant may specify that any such amount
may be paid by the Corporation in cash, shares of Common Stock or any combination thereof and may either grant to the Participant
or reserve to the Committee the right to elect among those alternatives.

 

(vi)       Any grant of Performance
Shares may specify that the amount payable with respect thereto may not exceed a maximum specified by the Committee on the date
of grant.

 

(vii)      Any grant of Performance
Shares may provide for the payment to the Participant of dividend or other distribution equivalents thereon in cash or additional
shares of Common Stock on a current, deferred or contingent basis.

 

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(viii)     If provided in the
terms of the grant and subject to the requirements of Section 162(m) of the Code (in the case of awards intended to qualify for
exception therefrom), the Committee may adjust Performance Objectives and the related minimum acceptable level of achievement if,
in the sole judgment of the Committee, events or transactions have occurred after the date of grant that are unrelated to the performance
of the Participant and result in distortion of the Performance Objectives or the related minimum acceptable level of achievement.

 

(ix)       Each grant shall be evidenced
by an agreement that shall be delivered to and accepted by the Participant, which shall state that the Performance Shares are subject
to all of the terms and conditions of this Plan and such other terms and provisions as the Committee may determine consistent with
this Plan. The terms and conditions of the agreements for Performance Shares may change from time to time and need not be uniform
with respect to Participants, and the terms and conditions of separate Performance Shares need not be identical.

 

(x)        Until the achievement
of the Performance Objectives and the resulting issuance of the Performance Shares, the Participant shall not have any rights as
a stockholder in the Performance Shares and shall not have any right to vote such shares, but the Committee may on or after the
date of grant, authorize the payment of dividend or other distribution equivalents on such shares in cash or additional shares
on a current, deferred or contingent basis.

 

9.
           Changes in Capital Structure

 

A.           No
Limitations of Rights. The existence of outstanding Awards shall not affect in any way the right or power of the Corporation
or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Corporation’s
capital structure or its business, or any merger or consolidation of the Corporation, or any issuance of bonds, debentures, preferred
or prior preference stock ahead of or affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the
Corporation, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether
of a similar character or otherwise.

 

B.            Changes
in Capitalization. If the Corporation shall effect a subdivision or consolidation of shares or other capital readjustment,
the payment of a stock dividend, or other increase or reduction of the number of shares of the Common Stock outstanding, without
receiving consideration therefore in money, services or property, then (i) the number, class, and per share price of shares of
Common Stock subject to outstanding Options and other Awards hereunder and (ii) the number of and class of shares then reserved
for issuance under this Plan and the maximum number of shares for which Awards may be granted to a Participant during a specified
time period shall be appropriately and proportionately adjusted. The conversion of convertible securities of the Corporation shall
not be treated as effected “without receiving consideration.” The Committee shall make such adjustments, and its determinations
shall be final, binding and conclusive.

 

C.            Merger, Consolidation or Asset
Sale. If the Corporation is merged or consolidated with another entity or sells or otherwise disposes of substantially all
of its assets to another company while Options or Stock Awards remain outstanding under this Plan, unless provisions are made in
connection with such transaction for the continuance of this Plan and/or the assumption or substitution of such Options or Stock
Awards with new options or stock awards covering the stock of the successor company, or parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of shares and prices, then all outstanding Options and Stock Awards which have not been continued,
assumed or for which a substituted award has not been granted shall, whether or not vested or then exercisable, unless otherwise
specified in the Stock Option Agreement or Stock Award Agreement, terminate immediately as of the effective date of any such merger,
consolidation or sale.

 

D.            Limitation on Adjustment.
Except as previously expressly provided, neither the issuance by the Corporation of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash or

 

    10

    	 

    

 

property, or for labor or services either upon direct sale or upon the
exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Corporation convertible
into such shares or other securities, nor the increase or decrease of the number of authorized shares of stock, nor the addition
or deletion of classes of stock, shall affect, and no adjustment by reason thereof shall be made with respect to, the number, class
or price of shares of Common Stock then subject to outstanding Options or Stock Awards.

 

10.
         Withholding of Taxes

 

The Corporation or an Affiliate shall have
the right, before any certificate for any Common Stock is delivered, to deduct or withhold from any payment owed to a Participant
any amount that is necessary in order to satisfy any withholding requirement that the Corporation or Affiliate in good faith believes
is imposed upon it in connection with U.S federal, state, or local taxes, including transfer taxes, as a result of the issuance
of, or lapse of restrictions on, such Common Stock, or otherwise require such Participant to make provision for payment of any
such withholding amount. Subject to such conditions as may be established by the Committee, the Committee may permit a Participant
to (i) have Common Stock otherwise issuable under an Option or Stock Award withheld to the extent necessary to comply with minimum
statutory withholding rate requirements; (ii) tender back to the Corporation shares of Common Stock received pursuant to an Option
or Stock Award to the extent necessary to comply with minimum statutory withholding rate requirements for supplemental income;
(iii) deliver to the Corporation previously acquired Common Stock; (iv) have funds withheld from payments of wages, salary or other
cash compensation due the Participant; (v) pay the Corporation or its Affiliate in cash, in order to satisfy part or all of the
obligations for any taxes required to be withheld or otherwise deducted and paid by the Corporation or its Affiliate with respect
to the Option of Stock Award; or (vi) establish a 10b5-1 trading plan for withheld stock designed to facilitate the sale of stock
in connection with the vesting of such shares, the proceeds of which shall be utilized to make all applicable withholding payments
in a manner to be coordinated by the Corporation’s Chief Financial Officer.

 

11.         Compliance
with Law and Approval of Regulatory Bodies

 

A.           General Requirements. No Option
or Stock Award shall be exercisable, no Common Stock shall be issued, no certificates for shares of Common Stock shall be delivered,
and no payment shall be made under this Plan except in compliance with all applicable federal and state laws and regulations (including,
without limitation, withholding tax requirements), any listing agreement to which the Corporation is a party, and the rules of
all domestic stock exchanges or quotation systems on which the Corporation’s shares may be listed. The Corporation shall
have the right to rely on an opinion of its counsel as to such compliance. In the absence of an effective and current registration
statement on an appropriate form under the Securities Act, or a specific exemption from the registration requirements of the Securities
Act, shares of Common Stock issued under this Plan shall be restricted shares. Any share certificate issued to evidence Common
Stock when a Stock Award is granted or for which an Option is exercised may bear such restrictive legends and statements as the
Committee may deem advisable to assure compliance with federal and state laws and regulations. No Option or Stock Award shall be
exercisable, no Stock Award shall be granted, no Common Stock shall be issued, no certificate for shares shall be delivered, and
no payment shall be made under this Plan until the Corporation has obtained such consent or approval as the Committee may deem
advisable from regulatory bodies having jurisdiction over such matters.

 

B.            Participant
Representations. The Committee may require that a Participant, as a condition to receipt or exercise of a particular award,
execute and deliver to the Corporation a written statement, in form satisfactory to the Committee, in which the Participant represents
and warrants that the shares are being acquired for such person’s own account, for investment only and not with a view to
the resale or distribution thereof. The Participant shall, at the request of the Committee, be required to represent and warrant
in writing that any subsequent resale or distribution of shares of Common Stock by the Participant shall be made only pursuant
to either (i) a registration statement on an appropriate form under the Securities Act of 1933, which registration statement has
become effective and is current with regard to the shares being sold, or (ii) a specific exemption from the registration requirements
of the Securities Act of 1933, but in claiming such exemption the Participant shall, prior to any offer

 

    11

    	 

    

 

of sale or sale of such shares, obtain a
prior favorable written opinion of counsel, in form and substance satisfactory to counsel for the Corporation, as to the application
of such exemption thereto.

 

12.         General
Provisions

 

A.           Effect
on Employment and Service. Neither the adoption of this Plan, its operation, nor any documents describing or referring to
this Plan (or any part thereof) shall (i) confer upon any individual any right to continue in the employ or service of the Corporation
or an Affiliate, (ii) in any way affect any right and power of the Corporation or an Affiliate to change an individual’s
duties or terminate the employment or service of any individual at any time with or without assigning a reason therefor or (iii)
except to the extent the Committee grants an Option or Stock Award to such individual, confer on any individual the right to participate
in the benefits of this Plan.

 

B.            Use of Proceeds. The proceeds
received by the Corporation from any sale of Common Stock pursuant to this Plan shall be used for general corporate purposes.

 

C.            Unfunded
Plan. This Plan, insofar as it provides for grants, shall be unfunded, and the Corporation shall not be required to segregate
any assets that may at any time be represented by grants under this Plan. Any liability of the Corporation to any Participant
with respect to any grant under this Plan shall be based solely upon any contractual obligations that may be created pursuant
to this Plan. No such obligation of the Corporation shall be deemed to be secured by any pledge of, or other encumbrance on, any
property of the Corporation.

 

D.           Rules of Construction. Headings
are given to the Sections of this Plan solely as a convenience to facilitate reference. The reference to any statute, regulation,
or other provision of law shall be construed to refer to any amendment to or successor of such provision of law.

 

E.            Choice of Law. This Plan and
all Stock Option Agreements, Stock Award Agreements, and Performance Agreements (or any other agreements) entered into under this
Plan shall be interpreted under the Corporation Law excluding (to the greatest extent permissible by law) any rule of law that
would cause the application of the laws of any jurisdiction other than the Corporation Law.

 

F.            Fractional
Shares. The Corporation shall not be required to issue fractional shares pursuant to this Plan. The Committee may provide
for elimination of fractional shares or the settlement of such fractional shares in cash.

 

G.            Foreign
Employees. In order to facilitate the making of any grant or combination of grants under this Plan, the Committee may provide
for such special terms for Awards to Participants who are foreign nationals, or who are employed by the Corporation or any Affiliate
outside of the United States, as the Committee may consider necessary or appropriate to accommodate differences in local law,
tax policy or custom. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions
of, this Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of this Plan,
as then in effect, unless this Plan could have been amended to eliminate such inconsistency without further approval by the stockholders
of the Corporation. The terms and conditions set forth in Annex A attached hereto, or any other such annex as indicated thereon,
shall supplement this Plan to the extent necessary to provide for tax or other considerations for Participants who are foreign
nationals, or who are employed by the Corporation or any Affiliate outside of the United States.

 

13.          Amendment
and Termination

 

The Board may amend or terminate this Plan
from time to time; provided, however, stockholder approval shall be required for any amendment that (i) increases the aggregate
number of shares of Common Stock that may be issued under this Plan, except as contemplated herein; (ii) changes the class of employees
eligible to receive Incentive Stock Options; (iii) modifies the restrictions on Repricings set forth in this Plan; or (iv) is required
by the terms of

 

    12

    	 

    

 

any applicable law, regulation or rule, including the rules of any market on which the Corporation shares are traded
or exchange on which the Corporation shares are listed. Except as specifically permitted by this Plan, any Stock Option Agreement
or any Stock Award Agreement or as required to comply with applicable law, regulation or rule, no amendment shall, without a Participant’s
consent, adversely affect any rights of such Participant under any Option or Stock Award outstanding at the time such amendment
is made; provided, however, that an amendment that may cause an Incentive Stock Option to become a Nonqualified Stock Option shall
not be treated as adversely affecting the rights of the Participant. Any amendment requiring stockholder approval shall be approved
by the stockholders of the Corporation within twelve (12) months of the date such amendment is adopted by the Board.

 

14.          Effective
Date of Plan; Duration of Plan

 

A.           This Plan shall be effective upon
adoption by the Board.

 

B.            Unless previously terminated, this
Plan will terminate ten (10) years after the date this Plan is first deemed effective, except that Awards that are granted under
this Plan prior to its termination will continue to be administered under the terms of this Plan until the Awards terminate, expire
or are exercised.

 

IN WITNESS WHEREOF, the Corporation has caused this Plan
to be executed by a duly authorized officer as of the date of adoption of this Plan by the Board of Directors.

 

BLUE SPHERE CORPORATION

	 	 
	By:	/s/ Shlomi Palas	
	 	Shlomi Palas
	 	Chief Executive Officer

 

    13BLUE SPHERE CORPORATION S-1

 

 

EXHIBIT 10.27

 

BLUE SPHERE CORPORATION

  

WARRANT

 

THIS WARRANT AND THE SECURITIES ISSUABLE
UPON ITS EXERCISE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR QUALIFIED
UNDER APPLICABLE STATE SECURITIES LAWS AND MAY ONLY BE ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO, OR IN CONNECTION
WITH, THE SALE OR DISTRIBUTION THEREOF. THIS WARRANT AND THE SECURITIES ISSUABLE UPON ITS EXERCISE MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT OR SUCH SECURITIES UNDER
THE ACT AND QUALIFICATION UNDER APPLICABLE STATE LAW WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
AND QUALIFICATION ARE NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE
“SEC”).

	 	 
	WARRANT NUMBER:	W-[XXX]
	ISSUANCE DATE:	_________, 201_

 

FOR VALUE RECEIVED, BLUE SPHERE
CORPORATION, as of _________, 201_ (the “Issuance Date”) a Nevada corporation (the “Company”),
hereby certifies that [HOLDER], or its registered assigns (the “Warrant Holder”), is entitled, subject to the
terms set forth below, to purchase from the Company [SHARES] shares (the “Warrant Shares”) of the Company’s
common stock, $0.001 par value per share (the “Common Stock”), exercisable at price per share of $[PRICE] per
share (the “Exercise Price”). This Warrant may be exercised any time after issuance through and including the
fifth (5th) anniversary of the Issuance Date (the “Expiration Date”), subject to the following terms and conditions
set out in this Warrant.

 

1.             Registration
of Warrant. The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Warrant Holder hereof from time to time. The Company may deem and treat the registered
Warrant Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Warrant
Holder, and for all other purposes, and the Company shall not be affected by notice to the contrary.

  

2.            Investment
Representation. The Warrant Holder by accepting this Warrant represents that the Warrant Holder is acquiring this Warrant for
its own account or the account of an affiliate for investment purposes and not with the view to any offering or distribution and
that the Warrant Holder will not sell or otherwise dispose of this Warrant or the underlying Warrant Shares in violation of applicable
securities laws. The Warrant Holder acknowledges that the certificates representing any Warrant Shares will bear a legend indicating
that they have not been registered under the Act and may not be sold by the Warrant Holder except pursuant to an effective registration
statement or pursuant to an exemption from registration requirements of the Act and in accordance with federal and state securities
laws. If this Warrant was acquired by the Warrant Holder pursuant to the exemption from the registration requirements of the Act
afforded by Regulation S thereunder, the Warrant Holder acknowledges and covenants that this Warrant may not be exercised by or
on behalf of a Person during the one year distribution compliance period (as defined in Regulation S) following the date hereof.
“Person” means an individual, partnership, firm, limited liability company, trust, joint venture, association,
corporation, or any other legal entity.

 

3.            Validity
of Warrant and Issue of Shares. The Company represents and warrants that this Warrant has been duly authorized and validly
issued and warrants and agrees that all of Common Stock that may be issued upon the exercise of the rights represented by this
Warrant will, when issued upon such exercise, be duly authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges with respect to the issue thereof. The Company further warrants and agrees that during the period within
which the rights represented by this Warrant may be exercised, the Company will at all times have authorized and reserved a sufficient
number of Common Stock to provide for the exercise of the rights represented by this Warrant.

 

4.            Registration
of Transfers and Exchange of Warrants.

 

    1

     

    

 

(a)          Subject to compliance
with the legend set forth on the face of this Warrant, the Company shall register the transfer of any portion of this Warrant in
the Warrant Register, upon surrender of this Warrant with the Form of Assignment attached hereto duly completed and signed, to
the Company at the office specified in or pursuant to Section 11. Upon any such registration or transfer, a new warrant to purchase
Common Stock, in substantially the form of this Warrant (any such new warrant, a “New Warrant”), evidencing
the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion
of this Warrant not so transferred, if any, shall be issued to the transferring Warrant Holder. The acceptance of the New Warrant
by the transferee thereof shall be deemed the acceptance of such transferee of all of the rights and obligations of a Warrant Holder
of a Warrant.

 

(b)          This Warrant is exchangeable,
upon the surrender hereof by the Warrant Holder to the office of the Company specified in or pursuant to Section 11 for one or
more New Warrants, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then be purchased hereunder.
Any such New Warrant will be dated the date of such exchange.

 

5.            Exercise
of Warrants.

 

(a)           This Warrant shall be
exercisable at any time and from time to time from and after the Issuance Date and through and including the Expiration Date, for
such number of Warrant Shares as is indicated in the form of Election to Purchase, which is attached hereto and incorporated herein
as Exhibit A. If less than all of the Warrant Shares which may be purchased under this Warrant are exercised at any time,
the Company shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase the remaining number
of Warrant Shares for which no exercise has been evidenced by this Warrant. At 5:00 P.M., New York time on the Expiration Date,
the portion of this Warrant not exercised prior thereto shall be and become void and of no value.

 

(b)          Exercise of this Warrant
shall be made upon surrender of this Warrant with an Election to Purchase in the form attached hereto (or attached to such New
Warrant), duly completed and signed to the Company, at its address set forth in Section 11.

 

(c)          A “Date of Exercise”
means the date on which the Company shall have received (i) this Warrant (or any New Warrant, as applicable), with an Election
to Purchase in the form attached hereto (or attached to such New Warrant), appropriately completed and duly signed, and (ii) payment
of the Exercise Price for the number of Warrant Shares so indicated by the Warrant Holder to be purchased, as set forth herein.

 

(d)          Payment upon exercise
may be made at the written option of the Warrant Holder either by cashless exercise, as set forth in Section 6, or in cash, wire
transfer or by certified or official bank check payable to the order of the Company equal to the applicable aggregate purchase
price, for the number of Warrant Shares specified in the Election to Purchase (as such exercise number shall be adjusted to reflect
any adjustment in the total number of Warrant Shares issuable to the Warrant Holder per the terms of this Warrant) and the Warrant
Holder shall thereupon be entitled to receive the number of duly authorized, validly issued, fully-paid and non-assessable Warrant
Shares determined as provided herein.

 

(e)          The Company shall promptly,
but in no event later than ten (10) business days after the Date of Exercise as defined herein, issue or cause to be issued and
cause to be delivered to or upon the written order of the Warrant Holder and in such name or names as the Warrant Holder may designate
(subject to the restrictions on transfer described in the legend set forth on the face of this Warrant), a certificate for the
Warrant Shares issuable upon such exercise, with such restrictive legend as required by the Act, as applicable. Any person so designated
by the Warrant Holder to receive Warrant Shares shall be deemed to have become holder of record of such Warrant Shares as of the
Date of Exercise of this Warrant.

 

6.            Cashless
Exercise. 

 

(a)          If at any time prior to
the Expiration Date there is not an effective registration statement on file with the SEC covering the resale of the Warrant Shares
by the Warrant Holder, then at such time this Warrant may also be exercised by means of a cashless exercise. In such event, the
Holder shall surrender this Warrant to the Company,

 

    2

     

    

 

together with a notice of cashless exercise, and the Company shall issue to
the Holder the number of Warrant Shares determined as follows:

 

                X = Y (A-B) / A

 

               where:

 

		X	=	The
number of Warrant Shares to be issued to the Holder.

 

		Y	=	The
number of Warrant Shares with respect to which this Warrant is being exercised.

 

		A	=	The
average closing bid price of the Common Stock for the five (5) trading days immediately prior to the Date of Exercise.

 

		B	=	The
Exercise Price.

 

(b)          For purposes of Rule 144
of the Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall
be deemed to have been acquired by the Warrant Holder, and the holding period for the Warrant Shares shall be deemed to have been
commenced, on the issue date. Notwithstanding anything in this Warrant to the contrary, the Warrant Holder is limited in the amount
of this Warrant it may exercise.

 

7.           Fractional
Shares. The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise of this
Warrant. The number of full Warrant Shares that shall be issuable upon the exercise of this Warrant shall be computed on the basis
of the aggregate number of Warrants Shares purchasable on exercise of this Warrant so presented. If any fraction of a Warrant Share
would, except for the provisions of this Section 7, be issuable on the exercise of this Warrant, the Company shall, at its option,
(i) pay an amount in cash equal to the Exercise Price multiplied by such fraction or (ii) round the number of Warrant Shares issuable,
up to the next whole number.

 

8.           Exercise
Price and Other Adjustments. 

 

(a)          The Exercise Price and
number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this
Section 8. If, at any time while this Warrant is outstanding, the Company shall issue or cause to be issued rights or warrants
to acquire or otherwise sell or distribute shares of Common Stock for a consideration per share less than the Exercise Price then,
forthwith upon such issue or sale, the Exercise Price shall be reduced to the price (calculated to the nearest one hundredth of
a cent) determined by multiplying the Exercise Price in effect immediately prior thereto by a fraction, the numerator of which
shall be the sum of (i) the number of shares of Common Stock outstanding immediately prior to such issuance, and (ii) the number
of shares of Common Stock which the aggregate consideration received (or to be received, assuming exercise or conversion in full
of such rights, warrants and convertible securities) for the issuance of such additional shares of Common Stock would purchase
at such Exercise Price, and the denominator of which shall be the sum of the number of shares of Common Stock outstanding immediately
after the issuance of such additional shares.

 

(b)          In addition to the adjustment
under Section 8(a), in the event of any transaction or event involving the Company or any of its subsidiaries that affects the
Common Stock, including but not limited to a merger, combination, sale of assets, sale of equity or convertible debt, tender or
exchange offer, dissolution or liquidation, reorganization, consolidation, recapitalization, dividend or distribution (whether
in cash, shares or other property, other than a regular cash dividend), stock split, spin-off or other such transaction (a “Fundamental
Transaction”), the Company shall provide the Warrant Holder both email and written notice of the Fundamental Transaction
no less than 10 days prior to any applicable effective or record date of the Fundamental Transaction. Upon receipt of such notice,
Warrant Holder may exercise the Warrant or may request appropriate adjustments be made in the Warrant such that the its value will
not be economically disadvantaged by such Fundamental Transaction relative to the holders of Common Stock.

 

(c)          Upon the occurrence of
a adjustments in Section 8(a) or 8(b), and as reasonably requested by the Warrant Holder, the Company shall issue a revised Warrant
to the extent the Warrant has not already been exercised.

 

    3

     

    

 

9.           Registration;
Compliance with Reporting Requirements. 

 

(a)          The Company may, or may
not, in its sole discretion file a registration statement with the SEC covering the resale of the Warrant Shares by the Warrant
Holder.

 

(b)          The Company shall take
all actions, including timely filing all reports and other documents with the SEC, necessary for the Warrant Holder to, and will
refrain from taking any actions which would prevent the Warrant Holder from being able to, sell or transfer the Warrant Shares
(a) obtained by means of a cashless exercise pursuant to Section 6 within six (6) months following the Issuance Date or (b) otherwise
obtained by exercise of this Warrant within six (6) months following the Date of Exercise.

 

(c)          Notwithstanding Section
9(a), to the extent the Company does not timely file all reports and other document with the SEC and Rule 144 is unavailable to
the Warrant Holder, then for a period commencing on the Issuance Date and terminating on the Expiration Date, the Warrant Holder
is entitled to one “demand” registration right at the Company’s expense, and additional “demand”
registration rights at the Warrant Holder’s expense for the Warrant Shares. Upon receipt of a demand registration request
from the Warrant Holder, the Company shall file a registration statement on Form S-3 (“Form S-3”) or, if Form
S-3 is not available, on any other appropriate form, including Form S-1, and cause such registration statement to become effective
in an expeditious manner. A registration requested pursuant to this Section 9(c) shall not be deemed to have been effected: (i)
unless a registration statement with respect thereto has become effective or (ii) if, after it has become effective, such registration
is interfered with by any stop order, injunction or other order or requirement of the SEC or other governmental agency or court
of competent jurisdiction for any reason, other than by reason of some act or omission by the Warrant Holder.

 

10.         Placement
Agent Compensation. The Holder and the Company agree and acknowledge that the issuance of this Warrant is made as compensation
pursuant to Section 2(b) of that certain engagement letter agreement, dated October 14, 2015, between the Holder and the Company
(the “Letter Agreement”), and that this Warrant shall constitute full satisfaction for the Cash Warrants to
be issued by the Company in connection with the Closing of Maxim Investors (as such capitalized terms are defined in the Letter
Agreement), regardless of whether the terms herein differ from the terms set forth in the Letter Agreement.

 

11.         Notice.
All notices, requests, demands, claims and other communications hereunder shall be in writing and shall be delivered by certified
or registered mail (first class postage pre-paid), guaranteed overnight delivery, or email transmission if such transmission is
confirmed by delivery by certified or registered mail (first class postage pre-paid) or guaranteed overnight delivery, to the following
addresses (or to such other addresses which such party shall subsequently designate in writing to the other party):

 

(a)         If to the Company:

 

[ ]

 

with a copy
to:

 

[ ]

 

(b)         If to the Warrant
Holder:

 

[ ]

 

with a copy
to:

 

[ ]

 

12.         Miscellaneous.

 

(a)          This Warrant shall be
binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
This Warrant may be amended only in writing and signed by the Company and the Warrant Holder.

 

    4

     

    

  

(b)          Nothing in this Warrant
shall be construed to give to any person or corporation other than the Company and the Warrant Holder any legal or equitable right,
remedy or cause of action under this Warrant; this Warrant shall be for the sole and exclusive benefit of the Company and the Warrant
Holder.

 

(c)          This Warrant shall not
be transferable by the Warrant Holder and shall be exercisable only by the Warrant Holder. Without the prior written consent of
the Company, the Warrant shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and
shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation or
other disposition of the Warrant or of any rights granted hereunder contrary to the provisions of this section, or the levy of
any attachment or similar process upon the Warrant or such rights, shall be null and void.

 

(d)          The headings herein are
for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions
hereof.

 

(e)          In case any one or more
of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining
terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a commercially reasonably substitute therefore, and upon so
agreeing, shall incorporate such substitute provision in this Warrant.

 

(f)           The Warrant Holder shall
not, by virtue hereof, be entitled to any voting or other rights of a shareholder of the Company, either at law or equity, and
the rights of the Warrant Holder are limited to those expressed in this Warrant.

 

(g)         This Warrant shall be
governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws.

 

(h)          The Company and the Warrant
Holder shall submit all disputes arising under this Warrant to arbitration in New York, New York before a single arbitrator of
the American Arbitration Association (the “AAA”). The arbitrator shall be selected by application of the rules
of the AAA, or by mutual agreement of the parties, except that such arbitrator shall be an attorney admitted to practice law in
the State of New York. No party hereto will challenge the jurisdiction or venue provisions as provided in this section. Nothing
in this section shall limit the Warrant Holder’s right to obtain an injunction for a breach of this Agreement from a court
of law. Any injunction obtained shall remain in full force and effect until the arbitrator fully adjudicates the dispute.

 

    5

     

    

 

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

   

	 	THE COMPANY:	 
		blue sphere corporation 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	Shlomi Palas	 
	 	Title:	Chief Executive Officer	 

  

	 	WARRANT HOLDER: 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

  

     6

     

    

  

FORM OF ELECTION TO PURCHASE 

(To be executed by the Warrant Holder
to exercise the right to  

purchase shares of Common Stock under
the foregoing Warrant)

 

Blue Sphere Corporation

  

Re: Election to Purchase Shares of Common
Stock Under the Warrant

  

Gentlemen:

  

In accordance with the Warrant enclosed
with this Election to Purchase, the undersigned hereby irrevocably elects to purchase _____________ shares of Common Stock of Blue
Sphere Corporation at an Exercise Price of $[PRICE], and encloses herewith $____________ in cash, certified or official bank check(s),
which sum represents the aggregate price for the number of shares of Common Stock to which this Election to Purchase relates, together
with any applicable taxes payable by the undersigned pursuant to the Warrant. Any capitalized terms used but not defined in this
Election to Purchase shall have the meaning ascribed to them in the accompanying Warrant.

  

The undersigned requests that certificates
for the shares of Common Stock issuable upon this exercise be issued in the name of:

  

	 	Name:	 	 
	 	Taxpayer ID:	 	 
	 	Address:	 	 
	 	 	 	 

   

If the number of shares of Common Stock
issuable upon this exercise shall not be all of the shares of Common Stock which the undersigned is entitled to purchase in accordance
with the enclosed Warrant, the undersigned requests that a New Warrant evidencing the right to purchase the shares of Common Stock
not issuable pursuant to the exercise evidenced hereby be issued in the name of and delivered to:

  

	 	Name:	 	 
	 	Address:	 	 
	 	 	 	 

  

The undersigned represents and warrants
that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant
to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities Act”), or pursuant
to an exemption from registration under the Securities Act.

  

	HOLDER:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	By:	 	 
	Title:	 	 
	Dated:	_______________________, ___________	 

  

(Signature must conform in all respects
to name of Holder as specified on the face of the Warrant)

 

     7

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