Document:

Blue Sphere Corporation S-1/A 

 

Exhibit
10.69

 

 Page
1 of 21 

   

 PLACEMENT
AGENCY AGREEMENT 

   

   

 [__________],
2017 

   

 Blue
Sphere Corporation 

 301
McCullough Drive, 4th Floor 

 Charlotte,
North Carolina 28262 

   

 Ladies
and Gentlemen: 

   

 This
letter (the “Agreement”) constitutes the agreement among Maxim Group LLC (“Maxim” or the
“Placement Agent”) and Blue Sphere Corporation (the “Company”), that the Placement Agent
shall serve as the exclusive placement agent for the Company, on a “reasonable best efforts” basis, in connection
with the proposed placement (the “Placement”) of a minimum of $1,000,000 (the “Minimum Offering Amount”),
and a maximum of up to $5,000,000 (the “Maximum Offering Amount”), of shares (the “Shares”)
of the Company’s common stock, par value $0.001 per share (the “Common Stock”), pre-funded warrants (the
“Pre-Funded Warrants”) with the right to purchase one share of Common Stock at an exercise price of $0.01 per
share, and warrants (the “Warrants” and, together with the Shares and the Pre-Funded Warrants, the “Securities”)
with the right to purchase one share of Common Stock at an exercise price of $3.30 per share. The terms of the Placement and the
Securities shall be mutually agreed upon by the Company and the purchasers (each, a “Purchaser” and collectively,
the “Purchasers”) and nothing herein shall be construed to provide either that the Placement Agent have the
power or authority to bind the Company or any Purchaser or an obligation for the Company to issue any Securities or complete the
Placement. This Agreement and the documents executed and delivered by the Company and the Purchasers in connection with the Placement
shall be collectively referred to herein as the “Transaction Documents.” The date of the closing of the Placement
(the “Closing”) shall be referred to herein as the “Closing Date.” The Company expressly
acknowledges and agrees that the Placement Agent’s obligations hereunder are on a reasonable best efforts basis only and
that the execution of this Agreement does not constitute a commitment by the Placement Agent to purchase the Securities and does
not ensure the successful placement of the Securities or any portion thereof or the success of the Placement Agent with respect
to securing any other financing on behalf of the Company. The Placement Agent may retain other brokers or dealers to act as sub-agents
or selected-dealers on their behalf in connection with the Placement. The sale of the Securities to any Purchaser will be evidenced
by a purchase agreement (the “Securities Purchase Agreement”) between the Company and such Purchasers in a
form reasonably acceptable to the Company and the Placement Agent, in the form attached hereto as Exhibit D. Capitalized
terms that are not otherwise defined herein have the meanings given to such terms in the Securities Purchase Agreement. Prior
to the signing of any Securities Purchase Agreement, officers of the Company will be reasonably available to answer inquiries
from prospective Purchasers. 

   

 Notwithstanding
anything herein to the contrary, in the event the Placement Agent determine that any of the terms provided for hereunder shall
not comply with a FINRA rule, including but not limited to FINRA Rule 5110, then the Company shall enter into an amendment to
this Agreement in writing upon the request of the Placement Agent that is drafted as narrowly as practicable to comply with any
such rules; provided that any such amendment shall not provide for terms that are less favorable to the Company. 

 

    

     

    

 

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 Section
1         COMPENSATION.
As compensation for the services provided by the Placement Agent hereunder, the Company agrees as follows: 

   

 (A)      To
pay to the Placement Agent a cash fee equal to eight percent (8.0%) of the gross proceeds received by the Company in the Placement,
which shall be paid at the Closing of the Placement from the gross proceeds of the Securities sold and shall be paid directly
to the Placement Agent; and 

   

 (B)       The
Company shall, at the Closing, grant to the Placement Agent (and/or its designees) warrants (the “Placement Agent Warrants”)
to purchase up to an aggregate number of shares of Common Stock equal to three and one-half percent (3.5%) of the total number
of shares of Common Stock and Pre-Funded Warrants sold in the Placement. The Placement Agent Warrants shall be exercisable, in
whole or in part, commencing 180 days from the date of the Closing at an initial exercise price of $3.75 per share of Common Stock,
which is equal to one hundred and twenty five percent (125%) of the offering price of the Common Stock, and shall expire on the
three-year anniversary of the Closing Date. The Placement Agent Warrants shall not be redeemable. The Company will register the
shares of Common Stock underlying the Placement Agent Warrants under the Securities Act of 1933, as amended (the “Securities
Act”), and will file all necessary undertakings in connection therewith. The Placement Agent will also be entitled to
customary demand and “piggyback” rights pursuant to FINRA Rule 5110. The Placement Agent Warrants may not be sold,
transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction
that would result in the effective economic disposition of the Placement Agent Warrant by any person for a period of 180 days
following the Closing Date pursuant to FINRA Rule 5110(g)(1), except as provided in FINRA Rule 5110(g)(2). The Placement Agent
Warrants may be exercised as to all or a lesser number of shares of Common Stock, and will provide for “cashless”
exercise.  

   

 Section
2         REGISTRATION
STATEMENT. The Company represents and warrants to, and agrees with, the Placement Agent that: 

   

 (A)      The
Company has prepared and filed in conformity with the requirements of the Securities Act of 1933, as amended (the “Securities
Act”), and the published rules and regulations thereunder (the “Rules”) adopted by the Securities
and Exchange Commission (the “Commission”), a Registration Statement (as defined below) on Form S-1 (Registration
No. 333-215110), including a Preliminary Prospectus (as defined below) relating to the Securities, the Placement Agent Warrants,
and the Common Stock underlying the Warrants, the Pre-Funded Warrants and the Placement Agent Warrants (collectively, the “Warrant
Shares”), and such amendments thereof as may have been required to the date of this Agreement. Copies of such Registration
Statement (including all amendments thereof), and of the related Preliminary Prospectus have heretofore been delivered by the
Company to the Placement Agent. The term “Preliminary Prospectus” means any preliminary prospectus included
at any time as a part of the Registration Statement or filed with the Commission by the Company pursuant to Rule 424(a) under
the Securities Act. The term “Registration Statement” as used in this Agreement means the initial registration
statement (including all exhibits, financial schedules and all documents and information deemed to be a part thereof through incorporation
by reference or otherwise), as amended at the time and on the date it is declared effective by the Commission (the “Effective
Date”), including the information (if any) contained in the form of final prospectus filed with the Commission pursuant
to Rule 424(b) under the Securities Act and deemed to be part thereof at the time of effectiveness pursuant to Rule 430A under
the Securities Act. If the Company has filed an abbreviated registration statement to register additional Securities pursuant
to Rule 462(b) under the Rules (the “462(b) Registration Statement”), then any reference herein to the Registration
Statement shall also be deemed to include such 462(b) Registration Statement. The term “Prospectus” as used
in this Agreement means the prospectus in the form included in the Registration Statement at the time of effectiveness or, if
Rule 430A under the Securities Act is relied on, the term Prospectus shall also include the final prospectus filed with the Commission
pursuant to and within the time limits described in Rule 424(b) under the Securities Act. 

 

    

     

    

 

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 (B)       On
the Effective Date, the Registration Statement complied, and on the date of the Prospectus, the date any post-effective amendment
to the Registration Statement becomes effective, the date any supplement or amendment to the Prospectus is filed with the Commission,
and the Closing Date, the Registration Statement and the Prospectus (and any amendments thereof or supplements thereto) will comply,
in all material respects, with the requirements of the Securities Act and the Rules. At the Effective Date, the Registration Statement
and any post-effective amendment thereto did not and will not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein not misleading. Each of (i) the General
Disclosure Package (as defined below) as of the Applicable Time and at the Closing Date and (ii) the Prospectus, as amended or
supplemented, as of its date, at the time of filing pursuant to Rule 424(b) under the Securities Act and at the Closing Date,
did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. Notwithstanding
the foregoing or anything herein to the contrary, none of the representations and warranties set forth above in this Section 2(B)
shall apply to statements in, or omissions from, the Registration Statement, the General Disclosure Package any Preliminary Prospectus
or the Prospectus made in reliance upon, and in conformity with, information herein or otherwise furnished in writing by the Placement
Agent specifically for use in the Registration Statement, the General Disclosure Package any Preliminary Prospectus or the Prospectus,
as the case may be. With respect to the preceding sentence, the Company acknowledges that the only information furnished in writing
by the Placement Agent for use in the Registration Statement, the General Disclosure Package, any Preliminary Prospectus or the
Prospectus consists solely of the names of the Placement Agent and the disclosure contained in the “Electronic Distribution”
subsections of the “Plan of Distribution” section of the Prospectus (the “Placement Agent Information”).
Each Preliminary Prospectus delivered to the Placement Agent for use in connection with the Placement and the Prospectus was or
will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the
extent permitted by Regulation S-T. The Prospectus, any Preliminary Prospectus and any supplement thereto or prospectus wrapper
prepared in connection therewith, at their respective times of issuance and at the Closing Date, complied and will comply in all
material respects with any applicable laws or regulations of foreign jurisdictions in which the Prospectus and such Preliminary
Prospectus, as amended or supplemented, if applicable, are distributed in connection with the offer and sale of Securities. 

   

 As
used in this Section and elsewhere in this Agreement: 

   

 “Applicable
Time” means [___] a.m. EST on the date of this Agreement. 

   

 “General
Disclosure Package” means the Statutory Prospectus and each Issuer Free Writing Prospectus. 

   

 “Issuer
Free Writing Prospectus” means each “free writing prospectus” (as defined in Rule 405 of the Rules) prepared
by or on behalf of the Company or used or referred to by the Company in connection with the Placement, each of which is listed
on Schedule I hereto. 

   

 “Marketing
Materials” means any electronic road show or investor presentation (including without limitation any “bona fide
electronic road show” as defined in Rule 433(h)(5) under the Securities Act) delivered to and approved by the Placement
Agent for use in connection with the marketing of the Placement. 

   

 “Statutory
Prospectus” means the Preliminary Prospectus relating to the Securities in the Placement that is included in the Registration
Statement immediately prior to the Applicable Time. 

   

 (C)       Other
than the Registration Statement, the General Disclosure Package, Preliminary Prospectus and the Prospectus, the Company has not
prepared, used, authorized, approved or referred to – and will not prepare, use, authorize, approve or refer to –
any “written communication” (as defined in Rule 405 under the Securities Act) that constitutes an offer to sell or
solicitation of an offer to buy Securities other than (i) any document not constituting a prospectus pursuant to Section 2(a)(10)(a)
of the Securities Act or Rule 134 under the Securities Act or (ii) the documents listed on Schedule I hereto, the Marketing Materials
and any other written communications approved in writing in advance by the Placement Agent. 

 

    

     

    

 

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 (D)       The
Registration Statement is effective under the Securities Act and no stop order preventing or suspending the effectiveness of the
Registration Statement or suspending or preventing the use of any Preliminary Prospectus, the Prospectus or any “free writing
prospectus”, as defined in Rule 405 under the Rules, has been issued by the Commission and, to the knowledge of the Company,
no proceedings for that purpose have been instituted or are threatened under the Securities Act. Any required filing of any Preliminary
Prospectus and/or the Prospectus and any supplement thereto pursuant to Rule 424(b) of the Rules has been or will be made in the
manner and within the time period required by such Rule 424(b) (without reliance on Rule 424(b)(8)). Any material required to
be filed by the Company pursuant to Rule 433(d) or Rule 163(b)(2) of the Rules has been or will be made in the manner and within
the time period required by such Rules. 

   

 (E)       Each
Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through the completion of the public offer and
sale of Securities or until any earlier date that the Company notified or notifies the Placement Agent as described in the next
sentence, did not, does not and will not include any information that conflicted, conflicts or will conflict in any material respect,
with the information contained in the Registration Statement, the General Disclosure Package or the Prospectus.  

   

 If
at any time following issuance of an Issuer Free Writing Prospectus there occurred or occurs an event or development as a result
of which such Issuer Free Writing Prospectus conflicted or would conflict in any material respect with the information contained
in the Registration Statement, the General Disclosure Package or the Prospectus or included or would include an untrue statement
of a material fact or omitted or would omit to state a material fact required to be stated therein or necessary in order to make
the statements therein, in the light of the circumstances prevailing at the subsequent time, not misleading, the Company has promptly
notified or will promptly notify the Placement Agent and has promptly amended or will promptly amend or supplement, at its own
expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission. 

   

 Notwithstanding
the foregoing, the Company makes no representation or warranty in this Section 2(E) with respect to any statements or omissions
made in reliance upon and in conformity with the Placement Agent Information. 

   

 Section
3        REPRESENTATIONS
AND WARRANTIES INCORPORATED BY REFERENCE. Each of the representations and warranties (together with any related disclosure
schedules thereto) made by the Company to the Purchasers in Section 2.1 of the Securities Purchase Agreement, is hereby incorporated
herein by reference (as though fully restated herein) and is, as of the date of this Agreement, hereby made to, and in favor of,
the Placement Agent. 

   

 Section
4        REPRESENTATIONS
OF THE PLACEMENT AGENT. The Placement Agent represents and warrants and/or agrees (as the case may be) as of the date of this
letter and as of the Closing, that it: 

   

 (i)       is
a member in good standing of FINRA; 

   

 (ii)      is
registered as a broker/dealer under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); 

 

    

     

    

 

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 (iii)     is
licensed as a broker/dealer under the laws of the States applicable to the offers and sales of Securities by the Placement Agent; 

   

 (iv)     is
and will be a limited liability company duly formed and validly existing under the laws of the State of Delaware; and 

   

 (v)      has
full power and authority to enter into and perform its obligations under this Agreement. 

   

 The
Placement Agent will immediately notify the Company in writing of any change in its status as such. The Placement Agent covenants
that it will conduct the Placement hereunder in compliance with the provisions of this Agreement and the requirements of applicable
law, including the rules and regulations under the Securities Act. 

   

 Section
5         ENGAGEMENT
TERM. The Placement Agent’s engagement hereunder will expire on the earlier of (i) the final Closing Date of the Placement
and (ii) August 15, 2017 (such date, the “Termination Date”). In the event, however, in the course of the Placement
Agent’s performance of due diligence they deem it necessary to terminate the engagement, the Placement Agent may do so prior
to the Termination Date and upon immediate written notice. If, within twelve (12) months after the Termination Date, the Company
completes any financing of equity, equity-linked or debt or other capital raising activity of the Company (except for the exercise
by any person or entity of any options, warrants or other convertible securities) with any of the purchasers who were first introduced
to the Company in connection with the financing contemplated hereby by the Placement Agent, then the Company will pay to the Placement
Agent upon the closing of such financing the compensation set forth in Section 1 herein (the “Termination Fee”);
provided that no such Termination Fee shall be payable if Placement Agent has terminated the Placement pursuant to this section.
Notwithstanding anything to the contrary contained herein, the provisions concerning confidentiality, indemnification, contribution
and the Company’s obligations to pay fees and reimburse expenses contained herein and the Company’s representations
and warranties and obligations contained in the Indemnification Provisions will survive any expiration or termination of this
Agreement, irrespective of whether a Closing occurs. All such fees and reimbursements due shall be paid to the Placement Agent
on or before the Termination Date (in the event such fees and reimbursements are earned or owed as of the Termination Date) or
upon the Closing of the Placement or any applicable portion thereof (in the event such fees are due pursuant to the terms of Section
1 hereof). The Placement Agent agrees, severally and not jointly, not to use any confidential information concerning the Company
provided to them by the Company for any purposes other than those contemplated under this Agreement. 

   

 Section
6        PLACEMENT
AGENT’S INFORMATION. The Company agrees that any information or advice rendered by the Placement Agent in connection
with this engagement is for the confidential use of the Company only in their evaluation of the Placement and, except as otherwise
required by law, the Company will not disclose or otherwise refer to the advice or information (other than references to the historical
fact of the Placement) in any manner without the Placement Agent’s prior written consent. 

   

 Section
7        NO
FIDUCIARY RELATIONSHIP. This Agreement does not create, and shall not be construed as creating rights enforceable by any person
or entity not a party hereto, except those entitled hereto by virtue of the Indemnification Provisions hereof. The Company acknowledges
and agrees that the Placement Agent are not and shall not be construed as a fiduciary of the Company and shall have no duties
or liabilities to the equity holders or the creditors of the Company or any other person by virtue of this Agreement or the retention
of the Placement Agent hereunder, all of which are hereby expressly waived. 

 

    

     

    

 

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 Section
8        CLOSING.
The obligations of the Placement Agent, and the Closing of the sale of the Securities hereunder, are subject to the accuracy,
when made and on the Closing Date, of the representations and warranties on the part of the Company and its subsidiaries contained
herein and in the Securities Purchase Agreement, to the accuracy of the statements of the Company and its subsidiaries made in
any certificates pursuant to the provisions hereof or thereof, to the performance by the Company and its subsidiaries of their
obligations hereunder and thereunder, and to each of the following additional terms and conditions: 

   

 (A)       The
Registration Statement has become effective and the Prospectus shall have been timely filed with the Commission pursuant to Rule
424(b) under the Securities Act not later than the Commission’s close of business on the second business day following the
execution and delivery of this Agreement or, if applicable, such earlier time as may be required by the Rules, and any material
required to be filed by the Company pursuant to Rule 433(d) under the Securities Act shall have been timely filed with the Commission
in accordance with such rule. 

   

 (B)       No
order preventing or suspending the use of any Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus shall
have been or shall be in effect and no order suspending the effectiveness of the Registration Statement shall be in effect and
no proceedings for such purpose shall be pending before or threatened by the Commission, and any requests for additional information
on the part of the Commission (to be included in the Registration Statement or the Prospectus or otherwise) shall have been complied
with to the satisfaction of the Commission and the Placement Agent. If the Company has elected to rely upon Rule 430A, Rule 430A
information previously omitted from the effective Registration Statement pursuant to Rule 430A shall have been filed with the
Commission pursuant to Rule 424(b) within the prescribed time period (without reliance on Rule 424(b)(8)) and the Company shall
have provided evidence satisfactory to the Placement Agent of such timely filing, or a post-effective amendment providing such
information shall have been promptly filed and declared effective in accordance with the requirements of Rule 430A. 

   

 (C)       The
representations and warranties of the Company contained in this Agreement and in the certificates delivered pursuant to Section
8(E) shall be true and correct when made and on and as of each Closing Date as if made on such date. The Company shall have performed
in all material respects all covenants and agreements and satisfied all the conditions contained in this Agreement required to
be performed or satisfied by it at or before such Closing Date.  

   

 (D)       The
Placement Agent shall not have reasonably determined, and advised the Company, that the Registration Statement or the Prospectus,
or any amendment thereof or supplement thereto contains any untrue statement of fact which, in the Placement Agent’s reasonable
opinion, is material, or omits to state a fact which, in the Placement Agent’s reasonable opinion, is material and is required
to be stated therein or necessary to make the statements therein not misleading. 

   

 (E)       The
Placement Agent shall have received as of the Closing Date a certificate, addressed to the Placement Agent and dated such Closing
Date, of the chief executive officer and chief financial officer of the Company to the effect that: (i) the representations, warranties
and agreements of the Company in this Agreement and in the Securities Purchase Agreement were true and correct when made and are
true and correct as of such Closing Date; (ii) the Company has performed in all material respects all covenants and agreements
and satisfied all conditions contained herein and therein; (iii) they have carefully examined the Registration Statement, the
Prospectus, the General Disclosure Package, and any individual Issuer Free Writing Prospectus and, in their opinion (A) as of
the Effective Date, the Registration Statement and Prospectus did not include, and as of the Applicable Time, neither (x) the
General Disclosure Package, nor (y) any individual Issuer Free Writing Prospectus, when considered together with the General Disclosure
Package, included, any untrue statement of a material fact and did not omit to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (B)
since the Effective Date no event has occurred which should have been set forth in a supplement or otherwise required an amendment
to the Registration Statement, the General Disclosure Package or the Prospectus; (iv) the Securities (other than the Pre-Funded
Warrants) and the Warrant Shares have been approved for listing on The NASDAQ Capital Market; (v) no stop order suspending the
effectiveness of the Registration Statement has been issued and, to their knowledge, no proceedings for that purpose have been
instituted or are pending under the Securities Act; and (vi) subsequent to the respective dates as of which information is given
in the Registration Statement and the Prospectus there has not been any event that is reasonably likely to result in a material
adverse effect on the (x) assets, properties, condition (financial or otherwise), results of operations, business affairs or stockholders’
equity (as described in the Registration Statement, the General Disclosure Package and the Prospectus) of the Company and its
subsidiaries considered as a whole, (y) the long-term debt or capital stock of the Company, or (iii) the consummation of the Placement
or consummation of any of the other transactions contemplated by this Agreement (any such effect being a “Material Adverse
Effect”), whether or not arising from transactions in the ordinary course of business. 

 

    

     

    

 

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 (F)       The
Placement Agent shall have received as of the Closing Date a certificate, addressed to the Placement Agent and dated such Closing
Date, of the secretary of the Company to the effect that: (i) attached to such certificate is a true and complete copy of the
certificate of incorporation of the Company, together with all amendments thereto, and that such certificate of incorporation
has not been modified since the date shown on the attached certificate of incorporation and such certificate of incorporation
is in full force and effect as of the date thereof; (ii) attached to such certificate is a true and complete copy of the bylaws
of the Company, together with all amendments thereto, and that such bylaws have not been modified since the date shown on the
attached bylaws and such bylaws are in full force and effect as of the date thereof; (iii) attached to such certificate are true,
complete and correct copies of the resolutions duly and validly adopted by the board of directors of the Company approving and
authorizing the Placement, that such resolutions have not been amended, suspended, modified, rescinded or revoked, and remain
in full force and effect as of the date thereof, and such resolutions are the only resolutions adopted by the Company’s
board of directors relating to the Placement; (iv) attached to such certificate are true and correct certificates of good standing
or equivalent certificates of the Company and its subsidiaries in such jurisdictions as the Placement Agent shall reasonably request;
and (v) such officer certifies the signatures of the officers of the Company executing documents in connection with the transactions
contemplated by this Agreement and the signatures appearing opposite their respective names are the true and genuine signatures
of such officers as of the date thereof. 

   

 (G)       The
Placement Agent shall have received: (i) simultaneously with the execution of this Agreement a signed letter from the Auditor
addressed to the Placement Agent and dated the date of this Agreement, in form and substance reasonably satisfactory to the Placement
Agent, containing statements and information of the type ordinarily included in accountants’ “comfort letters”
to underwriters with respect to the financial statements and certain financial information contained in the Registration Statement,
the General Disclosure Package or the Prospectus, and (ii) on the Closing Date, a signed letter from the Auditor addressed to
the Placement Agent and dated the date of such Closing Date, in form and substance reasonably satisfactory to the Placement Agent
containing statements and information of the type ordinarily included in accountants’ “comfort letters” to underwriters
with respect to the financial statements and certain financial information contained in the Registration Statement and the Prospectus. 

   

 (H)       The
Placement Agent shall have received as of the Closing Date the favorable opinion, dated as of such Closing Date, of Thompson Hine
LLP, as counsel to the Company, and addressed to the Placement Agent, in form and substance reasonably satisfactory to counsel
for the Placement Agent. 

   

 (I)        There
shall have been furnished to the Placement Agent the negative assurance letter of Harter Secrest & Emery LLP, as counsel to
the Placement Agent, dated as of such Closing Date, and addressed to the Placement Agent, in form and substance reasonably satisfactory
to the Placement Agent. 

 

    

     

    

 

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 (J)        Each
item required to be delivered in accordance with this Section 8 shall be reasonably satisfactory in form and substance to the
Placement Agent and their counsel. 

   

 (K)       The
Placement Agent shall have received copies of the Lock-up Agreements in form and substance reasonably satisfactory to counsel
for the Placement Agent executed by each entity or person listed on Schedule II hereto (the “Lock-up Agreements”).
 

   

 (L)       The
Company shall have entered into that certain Escrow Agreement with U.S. Bank National Association, in substantially the form attached
hereto as Exhibit A. 

   

 (M)      The
Company shall have entered into that certain Warrant Agreement with [__________], in substantially the form attached hereto as
Exhibit B. 

   

 (N)       On
the Closing Date, there shall have been issued to the Placement Agent, a Placement Agent Warrant in the form attached hereto as
Exhibit C. 

   

 (O)       The
Securities (other than the Pre-Funded Warrants) and the Warrant Shares shall have been approved for listing on The NASDAQ Capital
Market, subject only to the official notice of issuance, and satisfactory evidence of such action shall have been provided to
the Placement Agent. The Company shall have taken no action designed to, or likely to have the effect of terminating the registration
of the Common Stock and Warrants under the Exchange Act or delisting or suspending from trading the Securities (other than the
Pre-Funded Warrants) or the Warrant Shares from The NASDAQ Capital Market, nor has the Company received any information suggesting
that the Commission or The NASDAQ Capital Market is contemplating terminating such registration or listing. The Securities and
the Warrant Shares shall be DTC eligible. 

   

 (P)       Subsequent
to the execution and delivery of this Agreement or, if earlier, the dates as of which information is given in the Registration
Statement, the General Disclosure Package or the Prospectus: (i) there shall not have been any material change in the capital
stock of the Company or any material change in the long-term debt of the Company or its subsidiaries, (ii) except as set forth
or contemplated by the Registration Statement, the General Disclosure Package and the Prospectus, no material oral or written
agreement or other transaction shall have been entered into by the Company that is not in the ordinary course of business or that
could reasonably be expected to result in a material reduction in the future earnings of the Company, (iii) no loss or damage
(whether or not insured) to the property of the Company shall have been sustained that had or could reasonably be expected to
have a Material Adverse Effect, (iv) no legal or governmental action, suit or proceeding affecting the Company or any of its properties
that is material to the Company or that affects or could reasonably be expected to affect the transactions contemplated by this
Agreement shall have been instituted or threatened and (v) there shall not have been any material change in the assets, properties,
condition (financial or otherwise), results of operations, business affairs, business prospects or stockholders’ equity
of the Company or its subsidiaries considered as a whole that makes it impractical or inadvisable in the Placement Agent’s
judgment to proceed with the Placement as contemplated hereby. 

   

 (Q)       FINRA
shall have confirmed that it has not raised any objection with respect to the fairness and reasonableness of the terms and agreements
in connection with this Agreement and the Placement. 

   

 (R)       The
Company shall have entered into a Securities Purchase Agreement with each of the Purchasers and such agreements shall be in full
force and effect and shall contain representations, warranties and covenants of the Company as agreed between the Company and
the Purchasers. 

 

    

     

    

 

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 (S)       The
Company shall have furnished or caused to be furnished to the Placement Agent such further customary certificates or documents
as the Placement Agent shall have reasonably requested. 

   

 If
any of the conditions specified in this Section 8 shall not have been fulfilled when and as required by this Agreement, or if
any of the certificates, opinions, written statements or letters furnished to the Placement Agent or to counsel to the Placement
Agent pursuant to this Section 8 shall not be reasonably satisfactory in form and substance to the Placement Agent and counsel
to the Placement Agent, then the obligations of the Placement Agent to consummate the Closing hereunder may be cancelled by the
Placement Agent at, or at any time prior to, the consummation of the Closing. Notice of such cancellation shall be given to the
Company in writing or orally. Any such oral notice will be confirmed promptly thereafter by written, electronic or facsimile notice. 

   

 Section
9       COVENANTS
AND OTHER AGREEMENTS OF THE COMPANY. 

   

 (A)    The
Company covenants and agrees as follows: 

   

 (i)         The
Registration Statement and any amendments thereto have been declared effective. The Company shall prepare the Prospectus in a
form approved by the Placement Agent and file such Prospectus pursuant to Rule 424(b) under the Securities Act not later than
the Commission’s close of business on the second business day following the execution and delivery of this Agreement, or,
if applicable, such earlier time as may be required by the Rules. The Company will file with the Commission all Issuer Free Writing
Prospectuses in the time and manner required under Rules 433(d) or 163(b)(2), as the case may be. 

   

 (ii)        The
Company shall cause to be prepared and delivered to the Placement Agent, at its expense, within two (2) business days from the
date of this Agreement, an Electronic Prospectus to be used by the Placement Agent in connection with the Placement. As used herein,
the term “Electronic Prospectus” means a form of prospectus, and any amendment or supplement thereto, that
meets each of the following conditions: (i) it shall be encoded in an electronic format, satisfactory to the Placement Agent,
that may be transmitted electronically by the Placement Agent to offerees and purchasers of the Securities for at least the period
during which a prospectus relating to the Securities is required to be delivered under the Securities Act or the Exchange Act;
(ii) it shall disclose the same information as the paper prospectus and prospectus filed pursuant to EDGAR, except to the extent
that graphic and image material cannot be disseminated electronically, in which case such graphic and image material shall be
replaced in the electronic prospectus with a fair and accurate narrative description or tabular representation of such material,
as appropriate; and (iii) it shall be in or convertible into a paper format or an electronic format, satisfactory to the Placement
Agent, that will allow recipients thereof to store and have continuously ready access to the prospectus at any future time, without
charge to such recipients (other than any fee charged for subscription to the Internet as a whole and for online time). 

   

 (iii)      If
the Company elects to rely on Rule 462(b) under the Securities Act, the Company will both file a Rule 462(b) Registration Statement
with the Commission in compliance with Rule 462(b) and pay the applicable fees in accordance with Rule 111 of the Securities Act. 

   

 (iv)      The
Company shall promptly advise the Placement Agent in writing (A) when any post-effective amendment to the Registration Statement
shall have become effective or any supplement to the Prospectus shall have been filed, (B) of the receipt of any comments of,
or any request by the Commission for any amendment of the Registration Statement or the Prospectus or for any additional information,
(C) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of any order
preventing or suspending the use of any Preliminary Prospectus or any “free writing prospectus”, as defined in Rule
405 of the Rules, or the institution or threatening of any proceeding for that purpose and (D) of the receipt by the Company of
any notification with respect to the suspension of the qualification of the Securities for sale in any jurisdiction or the initiation
or threatening of any proceeding for such purpose. The Company shall not file any amendment of the Registration Statement or supplement
to the Prospectus or any Issuer Free Writing Prospectus unless the Company has furnished the Placement Agent a copy for its review
at least forty eight (48) prior to filing and shall not file any such proposed amendment or supplement to which the Placement
Agent reasonably objects. The Company shall use its best efforts to prevent the issuance of any such stop order and, if issued,
to obtain as soon as possible the withdrawal thereof.  

 

    

     

    

 

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 (v)       If,
at any time when a prospectus relating to the Securities (or, in lieu thereof, the notice referred to in Rule 173(a) of the Rules)
is required to be delivered under the Securities Act, any event occurs as a result of which the Prospectus as then amended or
supplemented would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements
therein in the light of the circumstances under which they were made not misleading, or if it shall be necessary to amend or supplement
the Prospectus to comply with the Securities Act or the Rules, the Company promptly shall prepare and file with the Commission,
subject to the second sentence of Section 9(A)(iv), an amendment or supplement which shall correct such statement or omission
or an amendment which shall effect such compliance.  

   

 (vi)      If
at any time following issuance of an Issuer Free Writing Prospectus there occurs an event or development as a result of which
such Issuer Free Writing Prospectus would conflict with the information contained in the Registration Statement or would include
an untrue statement of a material fact or would omit to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances prevailing at the subsequent time, not misleading, the Company
will promptly notify the Placement Agent and will promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus
to eliminate or correct such conflict, untrue statement or omission.  

   

 (vii)     The
Company will make generally available to its security holders as soon as practicable, but in any event not later than 15 months
after the end of the Company’s current fiscal quarter, an earnings statement (which need not be audited) covering a 12-month
period that shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 of the Rules; provided that the Company
will be deemed to have furnished such statement to its security holders to the extent it is filed on the EDGAR system. 

   

 (viii)    The
Company shall furnish to the Placement Agent and counsel for the Placement Agent, without charge, signed copies of the Registration
Statement (including all exhibits thereto and amendments thereof) and, so long as delivery of a prospectus by a Placement Agent
or dealer may be required by the Securities Act or the Rules, as many copies of any Issuer Free Writing Prospectus and the Prospectus
and any amendments thereof and supplements thereto as the Placement Agent may reasonably request. If applicable, the copies of
the Registration Statement, any Issuer Free Writing Prospectus and Prospectus and each amendment and supplement thereto furnished
to the Placement Agent will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to
EDGAR, except to the extent permitted by Regulation S-T.  

   

 (ix)       The
Company shall use its best efforts to maintain the effectiveness of the Registration Statement and a current Prospectus relating
thereto for as long as the Warrants and the Placement Agent Warrants remain outstanding. During any period when the Company fails
to have maintained an effective Registration Statement or a current Prospectus relating thereto and a holder of a Warrant or Placement
Agent Warrant desires to exercise such warrant and, in the opinion of counsel to the holder, Rule 144 is not available as an exemption
from registration for the resale of the Warrant Shares, the Company shall immediately file a registration statement registering
the resale of the Warrant Shares and use its best efforts to have it declared effective by the Commission within forty five (45)
days. 

 

    

     

    

 

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 (x)        The
Company shall cooperate with the Placement Agent and counsel for the Placement Agent in endeavoring to qualify the Securities
for offer and sale in connection with the Placement under the laws of such jurisdictions as the Placement Agent may designate
and shall maintain such qualifications in effect so long as required for the distribution of the Securities; provided, however,
that the Company shall not be required in connection therewith, as a condition thereof, to qualify as a foreign corporation or
to execute a general consent to service of process in any jurisdiction or subject itself to taxation as doing business in any
jurisdiction.  

   

 (xi)       The
Company, during the period when the Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) of the Rules) is required
to be delivered under the Securities Act and the Rules or the Exchange Act or while any Warrants or Placement Agent Warrants remain
outstanding, will file all reports and other documents required to be filed with the Commission pursuant to Section 13, 14 or
15 of the Exchange Act within the time periods required by the Exchange Act and the regulations promulgated thereunder.  

   

 (xii)      The
Company shall, during the term of the Lock-Up Agreements, enforce the terms thereof and impose stop-transfer restrictions on any
sale or other transfer or disposition of Company securities in violation of the Lock-Up Agreements.  

   

 (xiii)     On
or before completion of this Placement, the Company shall make all filings required under applicable securities laws and by The
NASDAQ Capital Market (including any required registration under the Exchange Act).  

   

 (xiv)     The
Company will issue no press release or other communications directly or indirectly and hold no press conference with respect to
the Company, its condition, financial or otherwise, or its earnings, business affairs or business prospects, or the Placement
for a period of time ending on the first business day following the fortieth (40th) day following the Closing Date, without the
prior written consent of the Placement Agent other than normal and customary releases issued in the ordinary course of the Company’s
business or as required by law.  

   

 (xv)     The
Company will apply the net proceeds from the Placement in the manner set forth under “Use of Proceeds” in the Prospectus.
 

   

 (xvi)    The
Company will use its best efforts to effect and maintain the listing of the Securities and the Warrant Shares on The NASDAQ Capital
Market for at least three years after the Closing Date.  

   

 (xvii)   Except
with respect to (x) the issuance of securities pursuant to the exercise or conversion of outstanding options or warrants or other
rights to receive securities of the Company that exist as of the Closing Date; or (y) the issuance of securities pursuant to an
equity incentive plan, during the ninety (90) days following the Closing Date, the Company will not undertake any public or private
offerings of any equity securities of the Company without the prior written consent of the Placement Agent, which consent will
not be unreasonably withheld. 

 

    

     

    

 

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 (xviii)      The
Company will not take, and will cause its affiliates (as such term is defined by Rule 144 of the Securities Act) not to take,
directly or indirectly, any action which constitutes or is designed to cause or result in, or which could reasonably be expected
to constitute, cause or result in, the stabilization or manipulation of the prices of any security to facilitate the sale or resale
of the Securities. 

   

 (xix)         For
so long as it is legally required to do so, the Company will use its best efforts to comply in all material respects with all
applicable provisions of the Sarbanes-Oxley Act that are in effect. 

   

 (B)       The
Company agrees to pay, whether or not the transactions contemplated hereby are consummated or this Agreement is terminated, all
costs and expenses incident to the Placement, including the reimbursement of the Placement Agent for its out-of-pocket expenses
in connection with the Placement, subject to a cap of $50,000 in the aggregate, including but not limited to the fees of the Placement
Agent’s legal counsel, Harter Secrest & Emery LLP, and the performance of the obligations of the Company under this
Agreement including those relating to: (i) the preparation, printing, reproduction filing and distribution of the Registration
Statement including, but not limited to, all exhibits thereto, each Preliminary Prospectus, the Prospectus, any Issuer Free Writing
Prospectus, all amendments and supplements thereto, and the printing, filing and distribution of this Agreement; (ii) the preparation
and delivery of certificates for the Securities to the Purchasers, if any; (iii) the registration or qualification of the Securities,
the Placement Agent Warrants and/or the Warrant Shares for offer and sale under the securities or Blue Sky laws of the various
requisite jurisdictions, including the reasonable fees and disbursements of counsel for the Placement Agent in connection with
such registration and qualification and the preparation, printing, distribution and shipment of preliminary and supplementary
Blue Sky memoranda; (iv) the furnishing (including costs of shipping and mailing) to the Placement Agent of copies of each Preliminary
Prospectus, the Prospectus and all amendments or supplements to the Prospectus, any Issuer Free Writing Prospectus, and of the
several documents required by this Section to be so furnished, as may be reasonably requested for use by the Placement Agent or
by dealers to whom Securities may be sold in connection with the Placement; (v) the filing fees of FINRA in connection with its
review of the terms of the Placement and reasonable fees and disbursements of counsel for the Placement Agent in connection with
such review; and (vi) inclusion of the Securities and the Warrant Shares for listing on The NASDAQ Capital Market. The reimbursement
of expenses described in this Section 9(B) shall be in addition to the fees in Section 1. Except to the extent otherwise expressly
provided for in this Section 9(B), the Placement Agent shall pay its own costs and expenses, including the fees and expenses of
legal counsel in connection with the Placement.  

   

 (C)       [Reserved.] 

   

 (D)       The
Company represents and agrees that, unless it obtains the prior written consent of the Placement Agent, and the Placement Agent
represents and agrees that, unless it obtains the prior written consent of the Company, it has not made and will not make any
offer relating to the Securities that would constitute an “issuer free writing prospectus,” as defined in Rule 433
under the Securities Act, or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405 under
the Securities Act, required to be filed with the Commission; provided that the prior written consent of the parties hereto shall
be deemed to have been given in respect of the free writing prospectuses included in Schedule I. Any such free writing prospectus
consented to by the Company and the Placement Agent is hereinafter referred to as a “Permitted Free Writing Prospectus.”
Each of the Company and the Placement Agent represents that it has treated or agrees that it will treat each Permitted Free Writing
Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied and will comply with the
requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely Commission filing where required,
legending and record keeping. 

 

     

     

    

 

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 (E)       During
a period of ninety (90) days from the date of the Prospectus, the Company will not, without the prior written consent of the Placement
Agent, (i) directly or indirectly, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of any share of Common
Stock or any securities convertible into or exercisable or exchangeable for Common Stock or file any registration statement under
the Securities Act with respect to any of the foregoing or (ii) enter into any swap or any other agreement or any transaction
that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Common Stock, whether
any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other
securities, in cash or otherwise. The foregoing sentence shall not apply to (A) the Securities to be sold hereunder, (B) any shares
of Common Stock issued by the Company upon the exercise of an option or warrant or the conversion of a security outstanding on
the date hereof and referred to in the Registration Statement or the General Disclosure Package, or (C) any shares of Common Stock
issued or options to purchase Common Stock granted pursuant to existing equity incentive plans or employee benefit plans of the
Company referred to in the Registration Statement or the General Disclosure Package provided that such options shall not be vested
and exercisable within the ninety (90) day period referred to above (unless such shares are subject to a Lock-Up Agreement). 

   

 Section
10      INDEMNIFICATION. 

   

 (A)       Subject
to the conditions set forth below, the Company agrees to indemnify, defend and hold harmless the Placement Agent, their respective
affiliates, directors and officers and employees, and each person, if any, who controls the Placement Agent within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any losses, claims, damages or liabilities
to which the Placement Agent or such persons may become subject, under the Securities Act or otherwise (including in settlement
of any litigation if such settlement is effected with the written consent of the Company), insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon: (i) an untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement, including the information deemed to be a part of the Registration
Statement at the time of effectiveness and at any subsequent time pursuant to Rules 430A and 430B of the Rules and Regulations,
or arise out of or are based upon the omission from the Registration Statement, or alleged omission to state therein, a material
fact required to be stated therein or necessary to make the statements therein not misleading, or (ii) an untrue statement or
alleged untrue statement of a material fact contained in the General Disclosure Package, the Prospectus, or any amendment or supplement
thereto (including any documents filed under the Exchange Act and deemed to be incorporated by reference into the Registration
Statement or the Prospectus), any Issuer Free Writing Prospectus, or the Marketing Materials, or arise out of or are based upon
the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading, and will reimburse the Placement Agent and
such persons for their reasonable legal or other out of pocket expenses reasonably incurred and documented by them in connection
with evaluating, investigating or defending against such loss, claim, damage, liability or action; provided, however, that (y)
the Company will only be obligated to reimburse the Placement Agent for the cost and expense of one counsel (in addition to any
local counsel) and provided further that the Company will not be liable in any such case to the extent that any such loss, claim,
damage, liability or action arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged
omission made in the Registration Statement, the General Disclosure Package, the Prospectus, or any amendment or supplement thereto
or any Issuer Free Writing Prospectus, in reliance upon and in conformity with the Placement Agent Information; and (z) with respect
to any untrue statement or omission or alleged untrue statement or omission made in the Preliminary Prospectus, if any, the indemnity
agreement contained in this Section 10(A) shall not inure to the benefit of the Placement Agent to the extent that any losses,
claims, damages or liabilities of the Placement Agent results from the fact that a copy of the Preliminary Prospectus was not
given or sent to the person asserting any such loss, claims, damage or liability at or prior to the written confirmation of sale
of Securities to such person as required by the Securities Act and the rules and regulations thereunder, and if the untrue statement
or omission has been corrected in the Prospectus, unless such failure to deliver the Prospectus was a result of non-compliance
by the Company with its obligations under this Agreement. This indemnity agreement will be in addition to any liability which
the Company may otherwise have.  

 

     

     

    

 

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 (B)       The
Placement Agent agrees to indemnify and hold harmless (i) the Company, and each person, if any, who controls the Company within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and (ii) each director of the Company, and each
officer of the Company who signs the Registration Statement, against any losses, claims, damages or liabilities to which such
party may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained
in any Preliminary Prospectus, the Registration Statement or the Prospectus, or any amendment or supplement thereto, or arise
out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in any Preliminary Prospectus, the Registration Statement
or the Prospectus or any such amendment or supplement in reliance upon and in conformity with the Placement Agent Information
and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with evaluating,
investigating or defending any such action or claim as such expenses are incurred; provided, however, that the obligation of the
Placement Agent to indemnify the Company (including any controlling person, director or officer thereof) shall be limited to the
amount of the fees and commissions to the Placement Agent applicable to Securities to be purchased in the Placement.  

   

 (C)       Any
party that proposes to assert the right to be indemnified under this Section will, promptly after receipt of notice of commencement
of any action, suit or proceeding against such party in respect of which a claim is to be made against an indemnifying party or
parties under this Section, notify each such indemnifying party of the commencement of such action, suit or proceeding, enclosing
a copy of all papers served. No indemnification provided for in Section 10(A) or 10(B) shall be available to any party who shall
fail to give notice as provided in this Section 10(C) if the party to whom notice was not given was unaware of the proceeding
to which such notice would have related and was materially prejudiced by the failure to give such notice but the omission so to
notify such indemnifying party of any such action, suit or proceeding shall not relieve it from any liability that it may have
to any indemnified party for contribution or otherwise than under this Section. In case any such action, suit or proceeding shall
be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying
party shall be entitled to participate in, and, to the extent that it shall wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with one firm of legal counsel reasonably satisfactory to such indemnified party, and
after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof and the approval
by the indemnified party of such counsel, the indemnifying party shall not be liable to such indemnified party for any legal or
other expenses, except as provided below and except for the reasonable costs of investigation subsequently incurred by such indemnified
party in connection with the defense thereof. The indemnified party shall have the right to employ its counsel in any such action,
but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the employment of counsel
by such indemnified party has been authorized in writing by the indemnifying parties, (ii) the indemnified party shall have been
advised by counsel that there may be one or more legal defenses reasonably available to it which are different from or in addition
to those available to the indemnifying party (in which case the indemnifying parties shall not have the right to direct the defense
of such action on behalf of the indemnified party) or (iii) the indemnifying parties shall not have employed counsel to assume
the defense of such action within a reasonable time after notice of the commencement thereof, in each of which cases the fees
and expenses of not more than one counsel shall be at the expense of the indemnifying parties. An indemnifying party shall not
be liable for any settlement of any action, suit, and proceeding or claim effected without its written consent, which consent
shall not be unreasonably withheld or delayed. No indemnifying party shall, without the written consent of the indemnified party,
effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action
or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is
an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional
release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement
as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party. 

 

     

     

    

 

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 Section
11      CONTRIBUTION.
In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in Section
10(A) or 10(B) is due in accordance with its terms but for any reason is unavailable or insufficient to hold harmless an indemnified
party in respect to any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall
contribute to the aggregate losses, liabilities, claims, damages and expenses (including any investigation, legal and other expenses
reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claims asserted,
but after deducting any contribution received by any person entitled hereunder to contribution from any person who may be liable
for contribution) incurred by such indemnified party, as incurred, in such proportion as is appropriate to reflect the relative
benefits received by the Company, on the one hand, and the Placement Agent, on the other hand, from the Placement pursuant to
this Agreement or, if such allocation is not permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to above but also the relative fault of the Company, on the one hand, and the Placement Agent,
on the other hand, in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages
or expenses, as well as any other relevant equitable considerations. The Company and the Placement Agent agree that it would not
be just and equitable if contribution pursuant to this Section 11 were determined by pro rata allocation or by any other method
of allocation which does not take account of the equitable considerations referred to above. The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to above shall be deemed to include any reasonable
legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation,
or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based
upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section
11, the Placement Agent shall not be required to contribute any amount in excess of the fees and commissions to the Placement
Agent applicable to Securities purchased in the Placement. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 11, each person, if any, who controls the Placement Agent within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Placement
Agent, and each director or partner of the Company, each officer of the Company who signed the Registration Statement, and each
person, if any, who controls the Company within the meaning of the Section 15 of the Securities Act or Section 20 of the Exchange
Act, shall have the same rights to contribution as the Company. Any party entitled to contribution will, promptly after receipt
of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may
be made against another party or parties under this Section 11, notify such party or parties from whom contribution may be sought,
but the omission so to notify such party or parties from whom contribution may be sought shall not relieve the party or parties
from whom contribution may be sought from any other obligation it or they may have hereunder or otherwise than under this Section
11. No party shall be liable for contribution with respect to any action, suit, proceeding or claim settled without its written
consent. The Placement Agent’s obligations to contribute pursuant to this Section 11 are several in proportion to their
respective commitments hereunder and not joint. 

 

     

     

    

 

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 Section
12      GOVERNING
LAW. This Agreement, and any dispute, claim or action arising under or in any way relating to this Agreement, will be governed
by, and construed in accordance with, the laws of the State of New York applicable to agreements made and to be performed entirely
in such State, without regard for conflict of law principles thereof. This Agreement may not be assigned by any party without
the prior written consent of the other parties. This Agreement shall be binding upon and inure to the benefit of the parties hereto,
and their respective successors and permitted assigns. Any right to trial by jury with respect to any dispute arising under this
Agreement or any transaction or conduct in connection herewith is knowingly, voluntarily and irrevocably waived to the fullest
extent permitted by applicable law. Each of the Placement Agent and the Company: (i) submits to the non-exclusive jurisdiction
of the Federal and state courts in the Borough of Manhattan in the City of New York in any suit, action or proceeding arising
out of or relating to this Agreement and/or the transactions contemplated hereby, (ii) waives any objection which it may have
or hereafter to the venue of any such suit, action or proceeding, and (iii) irrevocably consents to the jurisdiction of the Federal
and state courts in the Borough of Manhattan in the City of New York in any such suit, action or proceeding. The Placement Agent
and the Company further agrees to accept and acknowledge service of any and all process which may be served in any such suit,
action or proceeding in the Federal or state courts in the Borough of Manhattan in the City of New York and agrees that service
of process upon the Company mailed by certified mail to the Company’s address shall be deemed in every respect effective
service of process upon the Company, in any such suit, action or proceeding, and service of process upon the Placement Agent mailed
by certified mail to the Placement Agent’s address shall be deemed in every respect effective service process upon the Placement
Agent, in any such suit, action or proceeding. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law.  

   

 Section
13      ENTIRE
AGREEMENT/MISC. This Agreement (including the attached Indemnification Provisions) embodies the entire agreement and understanding
between the parties hereto, and supersedes all prior agreements and understandings, relating to the subject matter hereof. If
any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect
such provision in any other respect or any other provision of this Agreement, which will remain in full force and effect. This
Agreement may not be amended or otherwise modified or waived except by an instrument in writing signed by both the Placement Agent
and the Company. The representations, warranties, agreements and covenants contained herein shall survive the Closing of the Placement
and delivery and/or exercise of the Securities, as applicable. This Agreement may be executed in two or more counterparts, all
of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have
been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.
In the event that any signature is delivered by facsimile transmission or a .pdf format file, such signature shall create a valid
and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as
if such facsimile or .pdf signature page were an original thereof. The Company agrees that the Placement Agent may rely upon,
and each is a third party beneficiary of, the representations and warranties, and applicable covenants set forth in any such purchase,
subscription or other agreement with the Purchasers in the Placement. All amounts stated in this Agreement are in US dollars unless
expressly stated. 

   

 Section
14     NOTICES.
All notices and communications hereunder shall be in writing and mailed or delivered or by email if subsequently confirmed in
writing, and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication
is sent to the email address specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a business
day, (b) the next business day after the date of transmission, if such notice or communication is sent to the email address on
the signature pages attached hereto on a day that is not a business day or later than 6:30 p.m. (New York City time) on any business
day, (c) the third business day following the date of mailing, if sent by U.S. internationally recognized air courier service,
or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications
shall be as follows: [ ] 

 

     

     

    

 

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 [The
remainder of this page has been intentionally left blank.] 

 

     

     

    

 

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 Please
confirm that the foregoing correctly sets forth our agreement by signing and returning to the Placement Agent the enclosed copy
of this Agreement. 

 

	 	Very truly yours,
	 	 
	 	MAXIM GROUP LLC
	 	 
	 	By: 	 
	 	 	Name:
    
	 	 	Title: 

 

     

     

    

 

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 Accepted
and Agreed to as of 

 the
date first written above: 

   

 BLUE
SPHERE CORPORATION 

 

	By: 	 	 
	 	Name:
    Shlomo Palas	 
	 	Title: Chief Executive Officer	 

 

     

     

    

 

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 Schedule
i 

   

 Other
Written Communications 

   

 None. 

 

     

     

    

 

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21 of 21 

   

 SCHEDULE
II 

   

 Lock-up
Signatories 

 

	 	Name
	Holders
    of more than 5% of capital stock:
	1.   	[Lazarus
    Management Company LLC]
	2.   	Auto
    Transtech Inc.
	Directors
	3.   	Joshua
    Shoham
	4.   	Yigal
    Brosh
	5.   	Shimon
    Erlichman
	6.   	Lyron
    Bentovim
	7.   	David
    A. Doctor
	Officers
	8.   	Shlomo
    Palas
	9.   	Roy
    Amitzur
	10.   	Ran
    Daniel
	11.   	Elad
    KernerBlue Sphere Corporation S-1/A 

 

 Exhibit 10.70 

   

 SECURITIES
PURCHASE AGREEMENT 

   

 This Securities
Purchase Agreement (this “Agreement”) is dated as of [__________], 2017, between Blue Sphere Corporation, a
Nevada corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including
its successors and assigns, a “Purchaser” and collectively the “Purchasers”). 

   

 WHEREAS, the Company
is offering a minimum of $1,000,000 (the “Minimum Offering Amount”), and a maximum of up to $5,000,000 (the
“Maximum Offering Amount”), of shares (the “Shares”) of the Company’s common stock,
par value $0.001 per share (the “Common Stock”), pre-funded warrants (the “Pre-Funded Warrants”)
with the right to purchase one share of Common Stock at an exercise price of $0.01 per share, and warrants (the “Warrants”
and, together with the Shares and the Pre-Funded Warrants, the “Securities”) with the right to purchase one
share of Common Stock at an exercise price of $3.30 per share (the “Placement”); 

   

 WHEREAS, Maxim
Group LLC (“Maxim” or the “Placement Agent”) is serving as the exclusive placement agent
for the Company in connection with the Placement; and 

   

 WHEREAS, subject
to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities
Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and
each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described
in this Agreement. 

   

 NOW, THEREFORE,
IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt
and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows: 

   

 ARTICLE I.

PURCHASE AND SALE 

   

 1.1          Closing. 

   

 (a)          On
the Closing Date (as defined below), on the basis of the representations, warranties and agreements contained herein and subject
to the terms and conditions set forth herein, the Company agrees to sell at the Closing (as defined below), and the Purchasers,
severally and not jointly, agree to purchase at the Closing, an aggregate amount of Securities equal to or exceeding the Minimum
Offering Amount and up to an aggregate of the Maximum Offering Amount, calculated upon a total price per Share and Warrant equal
to $3.125 (the “Per Share Purchase Price”), and a total price per Pre-Funded Warrant and Warrant equal to $3.115
(the “Per Pre-Funded Warrant Purchase Price”) and, together with the Per Share Purchase Price, the “Purchase
Price”). Each Purchaser shall, on or prior to the Closing Date, deliver to U.S. Bank National Association (the “Escrow
Agent”), the aggregate amount to be paid by such Purchaser for the Securities purchased hereunder as specified next
to such Purchaser’s name on such Purchaser’s signature page hereto (the “Subscription Amount”)
by wire transfer of immediately available funds in accordance with the Escrow Agent’s written wire instructions, and the
Company shall deliver to each Purchaser its respective Shares and/or Pre-Funded Warrants, as applicable, and a Warrant as determined
pursuant to Section 1.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 1.2 deliverable
at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 1.2 and 1.3, the Closing shall occur at
the offices of Harter Secrest & Emery LLP (“HSE”), with offices located at 1600 Bausch & Lomb Place,
Rochester, NY 14604, or such other location as the parties shall mutually agree. Notwithstanding the foregoing, a Closing shall
not occur for less than the Minimum Offering Amount, and the Closing Date shall occur on or before August 15, 2017 (the “Termination
Date”). 

 

    	1 

     

    

 

 (b)          If
a Closing is not held on or before the Termination Date, the Company shall cause all subscription documents and funds to be returned,
without interest or deduction, to each prospective Purchaser. The Company shall also cause any subscription documents or funds
received following the final Closing to be returned, without interest or deduction, to each applicable prospective Purchaser.
Notwithstanding the foregoing, the Company in its sole discretion may elect not to sell to any person any or all of the Securities
requested to be purchased hereunder, provided that the Company causes all corresponding subscription documents and funds received
from such person to be promptly returned. 

   

 (c)          As
used herein, “Closing” means the closing of the purchase and sale of the Securities pursuant to Section 1.1(a);
“Closing Date” means a business day on which all of the Transaction Documents have been executed and delivered
by the Company and each of the Purchasers purchasing Securities at the relevant Closing, and all conditions precedent to (i) the
Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Securities,
in each case, have been satisfied or waived, but in no event later than the third business day following the relevant Closing;
and “Transaction Documents” means this Agreement, the Pre-Funded Warrants, the Warrants, all exhibits and schedules
thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder. 

   

 1.2          Deliveries. 

   

 (a)          On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following: 

   

 (i)          this
Agreement duly executed by the Company; 

   

 (ii)         Subject
to the last sentence of Section 1.1(a), a copy of the irrevocable instructions to the Company’s transfer agent (the “Transfer
Agent”) instructing the Transfer Agent to deliver on an expedited basis via The Depository Trust Company Deposit or
Withdrawal at Custodian system (“DWAC”), Shares equal to such Purchaser’s Subscription Amount for Shares
divided by the Per Share Purchase Price, registered in the name of such Purchaser; 

   

 (iii)        a
Pre-Funded Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to such
Purchaser’s Subscription Amount for Pre-Funded Warrants divided by the Per Pre-Funded Warrant Purchase Price; 

   

 (iv)        a
Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 100% of such Purchaser’s
Shares and Pre-Funded Warrants, with an exercise price equal to $3.30, subject to adjustment therein; and 

   

 (v)         the
Prospectus (which may be delivered in accordance with Rule 172 under the Securities Act). 

 

    	2 

     

    

 

 (b)          On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company or to the Escrow Agent, as
applicable, the following: 

   

 (i)          this
Agreement duly executed by such Purchaser; and 

   

 (ii)         such
Purchaser’s Subscription Amount by wire transfer to the account directed by the Escrow Agent. 

   

 1.3          Closing
Conditions. 

   

 (a)          The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met: 

   

 (i)          the
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchasers contained
herein (unless as of a specific date therein in which case they shall be accurate as of such date);  

   

 (ii)         all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been
performed; and 

   

 (iii)        the
delivery by each Purchaser of the items set forth in Section 1.2(b) of this Agreement. 

   

 (b)          The
respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being
met: 

   

 (i)          the
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein in which case they shall be accurate as of such date); 

   

 (ii)         all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been
performed;  

   

 (iii)        the
delivery by the Company of the items set forth in Section 1.2(a) of this Agreement;  

   

 (iv)        the
Company shall have entered into that certain Warrant Agreement with [__________], in substantially the form attached hereto as
Exhibit A; 

   

 (v)         since
the date hereof, there shall have been no event which could reasonably be expected to have a material adverse effect on the (i)
assets, properties, condition (financial or otherwise), results of operations, business affairs or stockholders’ equity
(as described in the Registration Statement, the General Disclosure Package and the Prospectus (each as defined below)) of the
Company and its subsidiaries considered as a whole, (ii) the long-term debt or capital stock of the Company, or (iii) the consummation
of the Placement or consummation of any of the other transactions contemplated by this Agreement (any such effect being a “Material
Adverse Effect”); and 

 

    	3 

     

    

 

 (vi)        the
Securities (other than the Pre-Funded Warrants) and the Common Stock underlying the Pre-Funded Warrants and the Warrants (collectively,
the “Warrant Shares”) shall have been approved for listing on The NASDAQ Capital Market, subject only to the
official notice of issuance, and satisfactory evidence of such action shall have been provided to the Placement Agent. The Company
shall have taken no action designed to, or likely to have the effect of terminating the registration of the Common Stock and Warrants
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or delisting or suspending from
trading the Securities (other than the Pre-Funded Warrants) or the Warrant Shares from The NASDAQ Capital Market, nor has the
Company received any information suggesting that the Securities and Exchange Commission (the “Commission”)
or The NASDAQ Capital Market is contemplating terminating such registration or listing. The Securities and the Warrant Shares
shall be DTC eligible. 

   

 ARTICLE II.

REPRESENTATIONS AND WARRANTIES 

   

 2.1          Representations
and Warranties of the Company. The Company represents and warrants to each Purchaser as of the date hereof and as of the Closing
Date, as follows: 

   

 (a)          The
consolidated financial statements of the Company and its subsidiaries (including all notes and schedules thereto) included or
incorporated by reference in the Registration Statement, the General Disclosure Package or the Prospectus comply in all material
respects with the requirements of the Securities Act and the Exchange Act, and present fairly the financial position of such entities
at the dates indicated and the statement of operations, stockholders’ equity and cash flows of, or such other permitted
financial statements for, such entities for the periods specified, and the related schedules and notes thereto, and the unaudited
financial information filed with the Commission as part of the Registration Statement, have been prepared in conformity with generally
accepted accounting principles, consistently applied throughout the periods involved, except (i) in the case of unaudited financials,
which are subject to normal year-end adjustments and do not contain certain footnotes or (ii) as stated in the notes thereto.
Any pro forma financial statements and the related notes thereto included in the Registration Statement, the General Disclosure
Package or the Prospectus present fairly in all material respects the information shown therein, have been prepared in all material
respects in accordance with the Commission’s rules and guidelines with respect to pro forma financial statements and have
been properly compiled on the bases described therein, and subject to such rules and guidelines, the Company believes the assumptions
used in the preparation thereof are reasonable and the adjustments used therein are appropriate to give effect to the transactions
and circumstances referred to therein. The other financial tables and data included in the Registration Statement, the General
Disclosure Package and the Prospectus present fairly in all material respects as of the dates indicated and for the periods specified
the information included therein and have been prepared on a basis consistent with that of the financial statements included in
the Registration Statement, the General Disclosure Package and the Prospectus and the books and records of the entities whose
information is presented therein. Except as included therein, no historical or pro forma financial statements or supporting schedules
are required to be included or incorporated by reference in the Registration Statement, the General Disclosure Package or the
Prospectus under the Securities Act or the published rules and regulations thereunder (the “Rules”). 

   

 As used
in this Section and elsewhere in this Agreement: 

   

 “Applicable Time”
means [___] a.m. EST on the date of this Agreement. 

 

    	4 

     

    

 

 “General Disclosure Package”
means the Statutory Prospectus and each Issuer Free Writing Prospectus. 

   

 “Issuer Free Writing
Prospectus” means each “free writing prospectus” (as defined in Rule 405 of the Rules) prepared by or on
behalf of the Company or used or referred to by the Company in connection with the Placement, each of which is listed on Schedule
I hereto. 

   

 “Marketing Materials”
means any electronic road show or investor presentation (including without limitation any “bona fide electronic road show”
as defined in Rule 433(h)(5) under the Securities Act) delivered to and approved by the Placement Agent for use in connection
with the marketing of the Placement. 

   

 “Preliminary Prospectus”
as used in this Agreement means any preliminary prospectus included at any time as a part of the Registration Statement or filed
with the Commission by the Company pursuant to Rule 424(a) under the Securities Act. 

   

 “Prospectus”
as used in this Agreement means the prospectus in the form included in the Registration Statement at the time of effectiveness
or, if Rule 430A under the Securities Act is relied on, the term Prospectus shall also include the final prospectus filed with
the Commission pursuant to and within the time limits described in Rule 424(b) under the Securities Act. 

   

 “Registration Statement”
as used in this Agreement means the initial registration statement (including all exhibits, financial schedules and all documents
and information deemed to be a part thereof through incorporation by reference or otherwise), as amended at the time and on the
date it is declared effective by the Commission, including the information (if any) contained in the form of final prospectus
filed with the Commission pursuant to Rule 424(b) under the Securities Act and deemed to be part thereof at the time of effectiveness
pursuant to Rule 430A under the Securities Act. If the Company has filed an abbreviated registration statement to register additional
Transaction Securities pursuant to Rule 462(b) under the Rules (the “462(b) Registration Statement”), then
any reference herein to the Registration Statement shall also be deemed to include such 462(b) Registration Statement. 

   

 “Statutory
Prospectus” means the Preliminary Prospectus relating to the Securities in the Placement that is included in the Registration
Statement immediately prior to the Applicable Time. 

   

 (b)          Brightman
Almagor Zohar & Co. (“Auditor”), whose reports are filed with the Commission as a part of the Registration
Statement, the General Disclosure Package and the Prospectus, is and, during the periods covered by its reports, was, to the knowledge
of the Company, an independent registered public accounting firm with respect to the Company as required by the Securities Act,
the Rules and the rules and regulations of the Public Accounting Oversight Board, and, to the knowledge of the Company, not in
violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 and all rules and regulations promulgated
thereunder or implementing the provisions thereof (the “Sarbanes-Oxley Act”).  

   

 (c)          The
interactive data in eXtensible Business Reporting Language included in the Registration Statement fairly presents the information
called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable
thereto. 

 

    	5 

     

    

 

 (d)          (i)
At the earliest time after the filing of the Registration Statement that the Company or other offering participant made a bona
fide offer (within the meaning of Rule 164(h)(2) of the Securities Act) and (ii) at the date of this Agreement, the Company was
not and is not an “ineligible issuer”, as defined in Rule 405, including (x) the Company or any other subsidiary in
the preceding three years not having been convicted of a felony or misdemeanor or having been made the subject of a judicial or
administrative decree or order as described in Rule 405 and (y) the Company or any of its subsidiaries in the preceding three
years not having been the subject of a bankruptcy petition or insolvency or similar proceeding, not having had a registration
statement be the subject of a proceeding under Section 8 of the Securities Act and not being the subject of a proceeding under
Section 8A of the Securities Act in connection with the offering of the Securities, all as described in Rule 405. 

   

 (e)          The
Company does not own or control, directly or indirectly, and holds no ownership or other interest, nominal or beneficial, direct
or indirect, in any corporation, association or other entity other than the subsidiaries listed in Exhibit 21 to the Registration
Statement (as used herein, the “subsidiaries”). 

   

 (f)          The
Company has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Nevada,
and has corporate power and authority to own, lease, and operate its properties and to conduct its business as described in the
Registration Statement, the General Disclosure Package or the Prospectus and to enter into and perform its obligations under this
Agreement and the various other agreements required hereunder and thereunder to which it is a party; and the Company is duly qualified
as a foreign corporation to transact business and is in good standing in each other jurisdiction in which its ownership or lease
of property or conduct of its business requires such qualification, except for such jurisdictions where the failure to be in good
standing or to be so qualified, individually or in the aggregate, would not have a Material Adverse Effect.  

   

 (g)          Each
subsidiary of the Company has been duly organized and is validly existing in good standing under the laws of the jurisdiction
of its incorporation or organization and has corporate or similar power and authority to own, lease and operate its properties
and to conduct its business as described in the Registration Statement, the General Disclosure Package or the Prospectus; and
each subsidiary of the Company is duly qualified to transact business and is in good standing in each jurisdiction in which its
ownership or lease of property or conduct of its business requires such qualification, except where the failure to be in good
standing or to be so qualified would not have a Material Adverse Effect. Except as otherwise disclosed in the Registration Statement,
the General Disclosure Package and the Prospectus, all of the issued and outstanding capital stock or equity interests of each
subsidiary has been duly authorized and validly issued, is fully paid and non-assessable and is owned by the Company, directly
or through subsidiaries, free and clear of any material security interest, mortgage, pledge, lien, encumbrance, claim or equity.
None of the outstanding shares of capital stock or equity interests of any subsidiary was issued in violation of any preemptive
or similar rights of any securityholder of such subsidiary.  

   

 (h)          The
authorized, issued and outstanding shares of capital stock of the Company are as set forth in the Registration Statement, the
General Disclosure Package and the Prospectus under the caption “Description of Securities.” The outstanding shares
of capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable. None of the
outstanding shares of capital stock of the Company was issued in violation of any preemptive or other similar rights of any securityholder
of the Company. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus: other than
with respect to (x) any shares reserved pursuant to the Company’s equity incentive plan as disclosed in the Registration
Statement, the General Disclosure Package and the Prospectus, and (y) the Warrant Shares, (i) no shares of capital stock of the
Company are reserved for any purpose, (ii) no outstanding securities are convertible into or exchangeable for any shares of capital
stock of the Company, and (iii) there are no outstanding options, rights (preemptive or otherwise) or warrants to purchase or
subscribe for shares of capital stock or any other securities of the Company.  

 

    	6 

     

    

 

 (i)          All
necessary corporate action has been duly and validly taken by the Company to authorize the execution, delivery and performance
of this Agreement, the Pre-Funded Warrants, the Warrants and the issuance and sale of the Securities and the Warrant Shares. This
Agreement has been duly authorized, executed and delivered by the Company and the Pre-Funded Warrants and Warrants, upon issuance,
will have been duly authorized, executed and delivered by the Company.  

   

 (j)          When
issued, the Pre-Funded Warrants and Warrants will constitute valid and binding obligations of the Company to issue and sell, upon
exercise thereof and payment of the respective exercise prices therefor, the number and type of securities of the Company called
for thereby in accordance with the terms thereof and such Pre-Funded Warrants and Warrants are enforceable against the Company
in accordance with their respective terms, except: (i) as such enforceability may be limited by applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and similar laws relating to or affecting creditors’ rights and remedies
generally; (ii) as enforceability of any indemnification or contribution provision may be limited under foreign, federal and state
securities laws; and (iii) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject
to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.  

   

 (k)          The
Securities have been duly authorized for issuance and sale to the Purchasers pursuant to this Agreement, and when the Securities
have been issued and delivered by the Company pursuant to this Agreement against payment of the consideration set forth herein,
such securities will be validly issued and fully paid and non-assessable; and the issuance of the Securities is not subject to
any preemptive or other similar rights of any securityholder of the Company. The Securities conform in all material respects to
all statements relating thereto contained in the Registration Statement, the General Disclosure Package and the Prospectus and
such description conforms in all material respects to the rights set forth in the instruments defining the same. The certificates,
if any, to be used to evidence the securities comprising Securities will, at the Closing Date, be in due and proper form and will
comply in all material respects with all applicable legal requirements, the requirements of the charter and by-laws of the Company
and the requirements of the NASDAQ Capital Market.  

   

 (l)          The
Warrant Shares have been duly authorized for issuance, conform in all material respects to the description thereof in the Registration
Statement, the General Disclosure Package and the Prospectus and have been validly reserved for future issuance and will, upon
exercise of the Pre-Funded Warrants and/or Warrants and payment of the exercise price thereof, be duly and validly issued, fully
paid and non-assessable and will not be subject to any preemptive or other similar rights of any securityholder of the Company.
The certificates, if any, to be used to evidence the Warrant Shares, will be in due and proper form and will comply in all material
respects with all applicable legal requirements, the requirements of the charter and by-laws of the Company and the requirements
of The NASDAQ Capital Market. 

 

    	7 

     

    

 

 (m)          (i)
The Company and each of its subsidiaries has all requisite corporate power and authority, and all necessary authorizations, approvals,
consents, orders, licenses, certificates and permits of and from all governmental or regulatory bodies or any other person or
entity (collectively, the “Permits”), to own, lease and license its assets and properties and conduct its business
as presently conducted, all of which are valid and in full force and effect, and (ii) the Company and each of its subsidiaries
have fulfilled and performed in all material respects all of their respective obligations with respect to such Permits and no
event has occurred that allows, or after notice or lapse of time would allow, revocation or termination thereof or results in
any other material impairment of the rights of such entity thereunder, except, in the case of the foregoing clauses (i) and (ii),
as would not have, individually or in the aggregate, a Material Adverse Effect. Except as may be required under the Securities
Act, state and foreign Blue Sky laws and the rules of the Financial Industry Regulatory Authority (“FINRA”)
and The NASDAQ Capital Market, no other Permits are required to enter into, deliver and perform the obligations of the Company
under this Agreement or the Warrants and for the Company to issue and sell the Securities.  

   

 (n)          The
Company and each of its subsidiaries owns or possesses legally enforceable rights to use all patents, patent rights, inventions,
trademarks, trademark applications, trade names, service marks, copyrights, copyright applications, licenses, know-how and other
similar rights and proprietary knowledge (collectively, “Intellectual Property”) necessary for the conduct
of their respective businesses, except where the failure to own or possess legally enforceable rights to use such Intellectual
Property would not have a Material Adverse Effect. To the knowledge of the Company, neither the sale or use of any product or
service offered by the Company or any of its subsidiaries infringes, misappropriates or violates any Intellectual Property of
a third party.  

   

 (o)          Subsequent
to the respective dates as of which information is given in the Registration Statement, the General Disclosure Package or the
Prospectus: (i) there has not been any event which would reasonably be expected to result in a Material Adverse Effect; and (ii)
neither the Company nor any of its subsidiaries has sustained any loss or interference with its assets, businesses or properties
(whether owned or leased) from fire, explosion, earthquake, flood or other calamity, whether or not covered by insurance, or from
any labor dispute or any court or legislative or other governmental action, order or decree which would reasonably be expected
to materially affect the financial results or financial condition of the Company or any of its subsidiaries. Except as disclosed
in the Registration Statement, the General Disclosure Package and the Prospectus, since the date of the latest balance sheet included
in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor any of its subsidiaries
has (A) issued any securities or incurred any liability or obligation, direct or contingent, for borrowed money, except such liabilities
or obligations incurred in the ordinary course of business, (B) entered into any transaction not in the ordinary course of business
or (C) declared or paid any dividend or made any distribution on any shares of its stock or redeemed, purchased or otherwise acquired
or agreed to redeem, purchase or otherwise acquire any shares of its capital stock.  

 

    	8 

     

    

 

 (p)          There
is no document, contract or other agreement required to be described in the Registration Statement, the General Disclosure Package
or the Prospectus or to be filed as an exhibit to the Registration Statement which is not described or filed as required by the
Securities Act or Rules. Each description of a contract, document or other agreement in the Registration Statement, the General
Disclosure Package or the Prospectus accurately reflects in all material respects the terms of the underlying contract, document
or other agreement. Each contract, document or other agreement described in the Registration Statement, the General Disclosure
Package or the Prospectus or filed as exhibits to the Registration Statement is, or upon consummation of the Placement will be,
in full force and effect and is valid and enforceable in all material respects by and against the Company or any of its subsidiaries,
as the case may be, in accordance with its terms, except (i) such contracts or other agreements that have terminated or expired
in accordance with their terms as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus,
and (ii) as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
and similar laws relating to or affecting creditors’ rights and remedies generally, and subject, as to enforceability, to
general principles of equity and, with respect to equitable relief, the discretion of the court before which any proceeding therefor
may be brought (regardless of whether enforcement is sought in a proceeding at law or in equity), and with respect to indemnification
thereunder, except as rights may be limited by applicable law or policies underlying such law. Neither the Company nor any of
its subsidiaries is in default in the observance or performance of any term or obligation to be performed by it under any such
agreement, and no event has occurred which with notice or lapse of time or both would constitute such a default. No default exists,
and no event has occurred which with notice or lapse of time or both would constitute a default, in the due performance and observance
of any term, covenant or condition, by the Company or any of its subsidiaries, if a subsidiary is a party thereto, of any other
agreement or instrument to which it is a party or by which it or its properties or business may be bound or affected which default
or event, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.  

   

 (q)          The
statistical, operating and market related data included in the Registration Statement, the General Disclosure Package or the Prospectus
are based on or derived from sources that the Company believes to be reliable and accurate. The Company had a reasonable basis
for, and made in good faith, each “forward-looking statement” (within the meaning of Section 27A of the Act or Section
21E of the Exchange Act) contained or incorporated by reference in the Registration Statement, the General Disclosure Package,
the Prospectus or the Marketing Materials.  

   

 (r)          Neither
the Company nor any of its subsidiaries (i) is in violation of its certificate or articles of incorporation, by-laws, certificate
of limited partnership, agreement of limited partnership, certificate of formation, operating agreement or other organizational
documents, (ii) is in default under, and no event has occurred that, with notice or lapse of time, or both, would constitute a
default under, or result in the creation or imposition of any lien, charge, mortgage, pledge, security interest, claim, limitation
on voting rights, equity, trust or other encumbrance, preferential arrangement, defect or restriction of any kind whatsoever,
upon, any property or assets of the Company or any of its subsidiaries pursuant to, any bond, debenture, note, indenture, mortgage,
deed of trust, loan agreement or other agreement or instrument to which it is a party or by which it is bound or to which any
of its properties or assets is subject or (iii) is in violation of any statute, law, rule, regulation, ordinance, directive, judgment,
decree or order of any judicial, regulatory or other legal or governmental agency or body, foreign or domestic, in each case,
applicable to the Company or any of its subsidiaries, except (in the case of clauses (ii) and (iii) above) for violations or defaults
that would not (individually or in the aggregate) reasonably be expected to have a Material Adverse Effect. 

 

    	9 

     

    

 

 (s)          Neither
the execution, delivery and performance of this Agreement, the Pre-Funded Warrants or the Warrants by the Company nor the consummation
of any of the transactions contemplated hereby or thereby (including, without limitation, the issuance and sale by the Company
of the Securities) will give rise to a right to terminate or accelerate the due date of any payment due under, or conflict with
or result in the breach of any term or provision of, or constitute a default (or an event which with notice or lapse of time or
both would constitute a default) under, or require any consent or waiver under, or result in the execution or imposition of any
lien, charge or encumbrance upon any properties or assets of the Company or any of its subsidiaries pursuant to the terms of:
(i) any indenture, mortgage, deed of trust or other agreement or instrument to which either of the Company or any of its subsidiaries
is a party or by which the Company or any of its subsidiaries or any of their properties or businesses is bound, or any franchise,
license, permit, judgment, decree, order, statute, rule or regulation applicable to either of the Company or any of its subsidiaries,
or (ii) violate any provision of certificate or articles of incorporation, by-laws, certificate of limited partnership, agreement
of limited partnership, certificate of formation, operating agreement or other organizational documents of either of the Company
or any of its subsidiaries, except (A) in the case of clause (i) above, for violations or defaults that would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect, and (B) for such consents or waivers which have
already been obtained and are in full force and effect.  

   

 (t)          Except
as otherwise set forth in the Registration Statement, the General Disclosure Package and the Prospectus, no holder of any security
of the Company has any right, which has not been waived or satisfied prior to the date hereof, to have any security owned by such
holder included in the Registration Statement or to demand registration of any security owned by such holder. Each director and
executive officer of the Company and each stockholder of the Company listed on Schedule II hereto has delivered to the
Representative his, her or its written lock-up agreement in the form attached to this Agreement as Exhibit B hereto (“Lock-Up
Agreement”).  

   

 (u)          Except
as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there are no legal or governmental
proceedings pending to which either of the Company or any of its subsidiaries is a party or of which any property of the Company
or any of its subsidiaries is the subject; and, to the knowledge of the Company, no such proceedings are threatened or contemplated
by governmental authorities or threatened by others.  

   

 (v)          Neither
the Company nor any of its subsidiaries is involved in any labor dispute or, to the knowledge of the Company, is any such dispute
threatened. The Company is not aware of any existing or imminent labor disturbance by the employees of any of its or its subsidiaries,
principal suppliers or contractors. The Company is not aware of any threatened or pending litigation between either of the Company
or any of its subsidiaries and any of its or their executive officers and has no reason to believe that such officers will not
remain in the employment of the Company or its subsidiaries, as the case may be. 

   

 (w)          No
transaction has occurred between or among either of the Company, its subsidiaries and any of its or their officers or directors,
or five percent stockholders or any affiliate or affiliates of any such officer or director or five percent stockholders that
is required to be described in and is not described in the Registration Statement, the General Disclosure Package and the Prospectus.
There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or
guarantees of indebtedness extended by the Company to or for the benefit of any of the officers or directors of the Company or
any of their respective family members, except as described in the Registration Statement, the General Disclosure Package and
the Prospectus. 

   

 (x)          No
director or officer of the Company is subject to any non-competition agreement or non-solicitation agreement with any employer
or prior employer that could materially affect such person’s ability to act in such person’s respective capacity on
behalf of the Company. 

 

    	10 

     

    

 

 (y)          [Reserved]. 

   

 (z)          Neither
the Company nor any of its subsidiaries has taken, nor will it take, directly or indirectly, any action designed to or which might
reasonably be expected to cause or result in, or which has constituted or which might reasonably be expected to constitute, the
stabilization or manipulation of the price of the Common Stock or any other security of the Company to facilitate the sale or
resale of any of the Securities.  

   

 (aa)        Except
as provided on Schedule (aa), the Company and its subsidiaries have filed all federal, state, local and foreign tax returns
which are required to be filed through the date hereof, which returns are true and correct in all material respects, or have received
timely extensions thereof, and have paid all taxes shown on such returns and all assessments received by them to the extent that
the same are material and have become due. To the Company’s knowledge, there are no material tax audits or investigations
pending, nor are there any material proposed additional tax assessments against either the Company or its subsidiaries.  

   

 (bb)       The
Securities (other than the Pre-Funded Warrants) and the Warrant Shares have been duly authorized for listing on The NASDAQ Capital
Market. A registration statement in respect of the Common Stock and the Warrants has been filed on Form 8-A pursuant to Section
12(b) of the Exchange Act, which registration statement complies in all material respects with the Exchange Act, and the Company
has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the
Common Stock and the Warrants under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. The Company is in material compliance with the provisions of the rules and regulations promulgated
by The NASDAQ Capital Market and has no reason to believe that it will not in the foreseeable future continue to be, in compliance
with all such listing and maintenance requirements (to the extent applicable to the Company as of the date hereof and the Closing
Date; and subject to all exemptions and exceptions from the requirements thereof as are set forth therein, to the extent applicable
to the Company). Without limiting the generality of the foregoing and subject to the qualifications above: (i) all members of
the Company’s board of directors who are required to be “independent” (as that term is defined under applicable
laws, rules and regulations), including, without limitation, all members of each of the audit committee, compensation committee
and nominating committee of the Company’s board of directors, meet the qualifications of independence as set forth under
such laws, rules and regulations, and (ii) the audit committee of the Company’s board of directors has at least one member
who is an “audit committee financial expert” (as that term is defined under such laws, rules and regulations).  

   

 (cc)        The
Company has not taken any action designed to, or likely to have the effect of, terminating the listing of the Securities (other
than the Pre-Funded Warrants) and the Warrant Shares on The NASDAQ Capital Market, nor has the Company received any notification
that The NASDAQ Capital Market is contemplating terminating such listing. 

   

 (dd)       The
books, records and accounts of the Company and its subsidiaries, taken as a whole, accurately and fairly reflect, in all material
respects, the transactions in, and dispositions of, the assets of, and the results of operations of, the Company and its subsidiaries.
Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company and its subsidiaries
maintain a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. 

 

    	11 

     

    

 

 (ee)        The
section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical
Accounting Policies” in the Registration Statement, General Disclosure Package and the Prospectus truly, accurately and
completely in all material respects describes (i) accounting policies which the Company believes are the most important in the
portrayal of the Company’s financial condition and results of operations and which require management’s most difficult,
subjective or complex judgments (“Critical Accounting Policies”), (ii) judgments and uncertainties affecting
the application of Critical Accounting Policies and (iii) the likelihood that materially different amounts would be reported under
different conditions or using different assumptions. 

   

 (ff)         The
Company is not aware of (i) any material weakness or significant deficiency in the design or operation of internal controls which
could adversely affect the Company’s ability to record, process, summarize and report financial data or any material weaknesses
in internal controls, except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus; or
(ii) any fraud, whether or not material, that involves management or other employees who have a role in the Company’s internal
controls.  

   

 (gg)       Except
as described in the General Disclosure Package and the Prospectus and as preapproved in accordance with the requirements set forth
in Section 10A of the Exchange Act, the Auditor has not been engaged by the Company to perform any “prohibited activities”
(as defined in Section 10A of the Exchange Act).  

   

 (hh)       Except
as described in the General Disclosure Package and the Prospectus, there are no material off-balance sheet arrangements (as defined
in Item 303 of Regulation S-K) that have or are reasonably likely to have a material current or future effect on the Company’s
financial condition, revenues or expenses, changes in financial condition, results of operations, liquidity, capital expenditures
or capital resources.  

   

 (ii)         The
Company’s Board of Directors has validly established an audit committee whose composition satisfies, and upon completion
of the Offering will satisfy, the requirements of Rule 5605 of The NASDAQ Stock Market Listing Rules and the Board of Directors
and/or the audit committee of the Board of Directors has adopted a charter that satisfies the requirements of Rule 5605 of The
NASDAQ Stock Market Listing Rules.  

   

 (jj)         The
Company’s Board of Directors has validly established a compensation committee whose composition satisfies, and upon completion
of the Offering will satisfy, the requirements of Rule 5605 of The NASDAQ Stock Market Listing Rules and the Board of Directors
and/or the compensation committee of the Board of Directors has adopted a charter that satisfies the requirements of Rule 5605
of The NASDAQ Stock Market Listing Rules. 

   

 (kk)        The
Company has taken all necessary actions to ensure that, at the time of effectiveness of the Registration Statement, it will be
in compliance in all material respects with all provisions of the Sarbanes-Oxley Act that are then in effect and with which the
Company is required to comply as of the effectiveness of the Registration Statement. Except as described in the Registration Statement,
the General Disclosure Package and the Prospectus, the Company has not, directly or indirectly, including through any subsidiary,
extended credit, arranged to extend credit, or renewed any extension of credit, in the form of a personal loan, to or for any
executive officer of the Company or any of its subsidiaries, or to or for any family member or affiliate of any director or executive
officer of the Company or any of its subsidiaries. 

 

    	12 

     

    

 

 (ll)         The
Company and its subsidiaries carry or are entitled to the benefits of insurance, with financially sound and reputable insurers,
in such amounts and covering such risks as is generally maintained by companies of established repute engaged in the same or similar
business, and all such insurance is in full force and effect. The Company does not have any reason to believe that it or any of
its subsidiaries will not be able (A) to renew, if desired, its existing insurance coverage as and when such policies expire or
(B) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now
conducted and not at a cost that is materially more significant. Neither the Company nor any of its subsidiaries has been denied
any insurance coverage that it has sought or for which it has applied.  

   

 (mm)      Except
for pursuant to that certain Placement Agency Agreement by and between the Company and the Placement Agent (the “Placement
Agency Agreement”), there are no claims, payments, issuances, arrangements or understandings for services in the nature
of a finder’s, consulting or origination fee with respect to the introduction of the Company to the Purchasers or the sale
of Securities hereunder or any other arrangements, agreements, understandings, payments or issuances with respect to the Company
that may affect the Placement Agent’s compensation, as determined by FINRA.  

   

 (nn)       Except
as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company has not made any direct
or indirect payments (in cash, securities or otherwise) to: (i) any person, as a finder’s fee, investing fee or otherwise,
in consideration of such person raising capital for the Company or introducing to the Company persons who provided capital to
the Company, (ii) any FINRA member, or (iii) any person or entity that, to the Company’s knowledge, has any direct or indirect
affiliation or association with any FINRA member within the 12-month period prior to the date on which the Registration Statement
was filed with the Commission (“Filing Date”) or thereafter.  

   

 (oo)       None
of the net proceeds of the Offering will be paid by the Company to any participating FINRA member or any affiliate or associate
of any participating FINRA member, except as specifically authorized herein or in the Placement Agency Agreement.  

   

 (pp)       To
the knowledge of the Company, and to the extent otherwise disclosed to the Placement Agent by the Company in writing prior to
the date hereof, no: (i) officer or director of the Company or its subsidiaries, (ii) owner of 5% or more of the Company’s
unregistered securities or (iii) owner of any amount of the Company’s unregistered securities acquired within the 180-day
period prior to the Filing Date, has any direct or indirect affiliation or association with any FINRA member. The Company will
advise the Placement Agent and their counsel if it becomes aware that any officer, director or stockholder of the Company or its
subsidiaries is or becomes an affiliate or associated person of a FINRA member participating in the Offering. 

 

    	13 

     

    

 

 (qq)       Except
as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus: (i) the Company and each of its
subsidiaries is in compliance in all material respects with all rules, laws and regulation relating to the use, treatment, storage
and disposal of toxic substances and protection of health or the environment (“Environmental Law”) which are
applicable to its business; (ii) neither the Company nor any of its subsidiaries has received any notice from any governmental
authority or third party of an asserted claim under Environmental Laws; (iii) the Company and each of its subsidiaries has received
all material permits, licenses or other approvals required of it under applicable Environmental Laws to conduct its business and
is in compliance in all material respects with all terms and conditions of any such permit, license or approval; (iv) to the knowledge
of the Company, no facts currently exist that will require either the Company or its subsidiaries to make future material capital
expenditures to comply with Environmental Laws; and (v) no property which is or has been owned, leased or occupied by either of
the Company or its subsidiaries has been designated as a “Superfund site” pursuant to the Comprehensive Environmental
Response, Compensation of Liability Act of 1980, as amended (42 U.S.C. Section 9601, et. seq.) (“CERCLA”),
or otherwise designated as a contaminated site under applicable state or local law. Neither the Company nor its subsidiaries has
been named as a “potentially responsible party” under CERCLA.  

   

 (rr)         The
Company is not and, after giving effect to the Offering, the sale of the Securities and the application of proceeds thereof as
described in the General Disclosure Package or the Prospectus, will not be an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.  

   

 (ss)        Neither
the Company nor, to the knowledge of the Company, any other person associated with it or acting on its behalf including, without
limitation, any director, officer, agent or employee of the Company or its subsidiaries, has, directly or indirectly, while acting
on behalf of the Company or its subsidiaries: (i) used any corporate funds for unlawful contributions, gifts, entertainment or
other unlawful expenses relating to political activity; (ii) made any unlawful payment to foreign or domestic government officials
or employees or to foreign or domestic political parties or campaigns from corporate funds; or (iii) violated any provision of
the Foreign Corrupt Practices Act of 1977, as amended.  

   

 (tt)         The
operations of the Company and its subsidiaries are and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all jurisdictions where the Company or any of its subsidiaries conduct business, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Company and its subsidiaries with respect to the Money Laundering Laws
is pending, or to the knowledge of the Company, threatened.  

   

 (uu)        Neither
the Company nor any of its subsidiaries, nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate
of the Company or its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control
of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use the proceeds
of the Offering, or lend, contribute or otherwise make available such proceeds to its subsidiaries or any joint venture partner
or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered
by OFAC.  

 

    	14 

     

    

 

 (vv)       Neither
the Company nor, to the knowledge of the Company, any of its directors ,officers, agents, employees, affiliates or other persons
acting on behalf of the Company has engaged in any activities sanctionable under the Comprehensive Iran Sanctions, Accountability,
and Divestment Act of 2010, the Iran Sanctions Act of 1996, the National Defense Authorization Act for Fiscal Year 2012, the Iran
Threat Reduction and Syria Human Rights Act of 2012 or any Executive Order relating to any of the foregoing (collectively, and
as each may be amended from time to time, the “Iran Sanctions”); and the Company will not directly or indirectly
use the proceeds of the Offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture
partner or other person or entity, for the purpose of engaging in any activities sanctionable under the Iran Sanctions. 

   

 (ww)      Except
as described in the Registration Statement, the General Disclosure Package and the Prospectus, the Company has not sold or issued
any shares of Common Stock during the three-year period preceding the date of the Prospectus, including any sales pursuant to
Rule 144A under, or Regulations D or S of, the Securities Act, other than shares issued pursuant to employee benefit plans, qualified
stock options plans or other employee compensation plans or pursuant to outstanding options, rights or warrants. Neither the Company
nor any of its affiliates (as such term is defined under Rule 144 of the Securities Act) has, prior to the date hereof, made any
offer or sales of any securities which are required to be “integrated” pursuant to the Securities Act or the Rules
with the offer and sale of the Transaction Securities pursuant to the Registration Statement. 

   

 (xx)        The
Company fulfilled its obligations, if any, under the minimum funding standards of Section 302 of the U.S. Employee Retirement
Income Security Act of 1974 (“ERISA”) and the regulations and published interpretations thereunder with respect
to each “plan” as defined in Section 3(3) of ERISA and such regulations and published interpretations in which its
employees are eligible to participate and each such plan is in compliance in all material respects with the presently applicable
provisions of ERISA and such regulations and published interpretations. No “Reportable Event” (as defined in Section
4043(c) of ERISA) has occurred with respect to any “Pension Plan” (as defined in ERISA) for which the Company could
have any liability. The execution of this Agreement, the Warrants, or consummation of the Offering does not constitute a triggering
event under any plan or any other employment contract, whether or not legally enforceable, which (either alone or upon the occurrence
of any additional or subsequent event) will or may result in any payment (of severance pay or otherwise), acceleration, increase
in vesting, or increase in benefits to any current or former participant, employee or director of the Company or any of its subsidiaries. 

   

 (yy)       The
statements in the Registration Statement, the General Disclosure Package or the Prospectus under the headings “Tax Considerations,”
“Market for Common Stock and Shares Eligible for Future Sale,” “Executive Compensation,” “Related
Party Transactions,” “Description of Securities” and “Plan of Distribution” and under the subsections
“Our United States Projects” and “Our Italy Projects” under the heading “Description of Business”,
insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate and fair
summaries of such legal matters, agreements, documents or proceedings in all material respects. 

   

 (zz)        The
Company has not become aware of any information that would cause the information disclosed in the questionnaires completed by
the directors and officers of the Company and provided to the Placement Agent to become inaccurate and incorrect. 

 

    	15 

     

    

 

 (aaa)      The
Company and its subsidiaries own or lease all such properties as are necessary to the conduct of its business as presently operated
and as proposed to be operated as described in the Registration Statement, the General Disclosure Package or the Prospectus. The
Company and its subsidiaries have good and marketable title to all personal property owned by them, free and clear of all liens
except such as are described in the Registration Statement, the General Disclosure Package and the Prospectus or such as do not
(individually or in the aggregate) materially affect the business or prospects of the Company or its subsidiaries. Any real property
and buildings held under lease or sublease by the Company and its subsidiaries are held by them under valid, subsisting and enforceable
leases with such exceptions as are not material to, and do not interfere with, the use made and proposed to be made of such property
and buildings by the Company and its subsidiaries. Neither the Company nor any of its subsidiaries has received any notice of
any claim adverse to its ownership of any real or personal property or of any claim against the continued possession of any real
property, whether owned or held under lease or sublease by the Company or its subsidiaries. 

   

 (bbb)     In
connection with any offer and sale of Securities to Company-directed investors outside the United States, each Preliminary Prospectus,
the Prospectus, any prospectus wrapper and any amendment or supplement thereto, at the time it was delivered to such persons,
complied and will comply throughout such offer and sale outside of the United States in all material respects with any applicable
laws or regulations of foreign jurisdictions where such Preliminary Prospectus, Prospectus, prospectus wrapper or amendment or
supplement was distributed. No authorization, approval, consent, license, order, registration or qualification of or with any
government, governmental instrumentality or court, other than such as have been obtained, is necessary under the securities laws
and regulations of foreign jurisdictions in which such Transaction Securities are offered outside the United States. 

   

 (ccc)      As
used in this Agreement, the term “knowledge of the Company” (or similar language) shall mean the knowledge
of the officers and directors of the Company who are named in the Prospectus, with the assumption that such officers and directors
shall have made reasonable and diligent inquiry of the matters presented (with reference to what is customary and prudent for
the applicable individuals in connection with the discharge by the applicable individuals of their duties as officers, directors
or managers of the Company). 

   

 ARTICLE III.

COVENANTS AND OTHER AGREEMENTS OF THE COMPANY 

   

 3.1          The
Company covenants and agrees as follows: 

   

 (a)          The
Registration Statement and any amendments thereto have been declared effective. The Company shall prepare the Prospectus in a
form approved by the Placement Agent and file such Prospectus pursuant to Rule 424(b) under the Securities Act not later than
the Commission’s close of business on the second business day following the execution and delivery of this Agreement, or,
if applicable, such earlier time as may be required by the Rules. The Company will file with the Commission all Issuer Free Writing
Prospectuses in the time and manner required under Rules 433(d) or 163(b)(2), as the case may be. 

   

 (b)          The
Company shall use its best efforts to maintain the effectiveness of the Registration Statement and a current Prospectus relating
thereto for as long as the Warrants and the Placement Agent Warrants remain outstanding. During any period when the Company fails
to have maintained an effective Registration Statement or a current Prospectus relating thereto and a holder of a Warrant or Placement
Agent Warrant desires to exercise such warrant and, in the opinion of counsel to the holder, Rule 144 is not available as an exemption
from registration for the resale of the Warrant Shares, the Company shall immediately file a registration statement registering
the resale of the Warrant Shares and use its best efforts to have it declared effective by the Commission within forty five (45)
days. 

 

    	16 

     

    

 

 (c)       The
Company shall cooperate with the Placement Agent and counsel for the Placement Agent in endeavoring to qualify the Securities
for offer and sale in connection with the Placement under the laws of such jurisdictions as the Placement Agent may designate
and shall maintain such qualifications in effect so long as required for the distribution of the Securities; provided, however,
that the Company shall not be required in connection therewith, as a condition thereof, to qualify as a foreign corporation or
to execute a general consent to service of process in any jurisdiction or subject itself to taxation as doing business in any
jurisdiction. 

   

 (d)       The
Company, during the period when the Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) of the Rules) is required
to be delivered under the Securities Act and the Rules or the Exchange Act or while any Warrants or Placement Agent Warrants remain
outstanding, will file all reports and other documents required to be filed with the Commission pursuant to Section 13, 14 or
15 of the Exchange Act within the time periods required by the Exchange Act and the regulations promulgated thereunder. 

   

 (e)       The
Company shall, during the term of the Lock-Up Agreements, enforce the terms thereof and impose stop-transfer restrictions on any
sale or other transfer or disposition of Company securities in violation of the Lock-Up Agreements. 

   

 (f)        On
or before completion of this Placement, the Company shall make all filings required under applicable securities laws and by The
NASDAQ Capital Market (including any required registration under the Exchange Act). 

   

 (g)       The
Company will issue no press release or other communications directly or indirectly and hold no press conference with respect to
the Company, its condition, financial or otherwise, or its earnings, business affairs or business prospects, or the Placement
for a period of time ending on the first business day following the fortieth (40th) day following the Closing Date, without the
prior written consent of the Placement Agent other than normal and customary releases issued in the ordinary course of the Company’s
business or as required by law. 

   

 (h)       The
Company will apply the net proceeds from the Placement in the manner set forth under “Use of Proceeds” in the Prospectus. 

   

 (i)        The
Company will use its best efforts to effect and maintain the listing of the Securities and the Warrant Shares on The NASDAQ Capital
Market for at least three years after the Closing Date. 

   

 (j)        Except
with respect to (x) the issuance of securities pursuant to the exercise or conversion of outstanding options or warrants or other
rights to receive securities of the Company that exist as of the Closing Date; or (y) the issuance of securities pursuant to an
equity incentive plan, during the ninety (90) days following the Closing Date, the Company will not undertake any public or private
offerings of any equity securities of the Company without the prior written consent of the Placement Agent, which consent will
not be unreasonably withheld. 

   

 (k)       The
Company will not take, and will cause its affiliates (as such term is defined by Rule 144 of the Securities Act) not to take,
directly or indirectly, any action which constitutes or is designed to cause or result in, or which could reasonably be expected
to constitute, cause or result in, the stabilization or manipulation of the prices of any security to facilitate the sale or resale
of the Securities. 

 

     17

     

    

 

 (l)        For
so long as it is legally required to do so, the Company will use its best efforts to comply in all material respects with all
applicable provisions of the Sarbanes-Oxley Act that are in effect. 

   

 3.2 During
a period of ninety (90) days from the date of the Prospectus, the Company will not, without the prior written consent of the Placement
Agent, (i) directly or indirectly, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of any share of Common
Stock or any securities convertible into or exercisable or exchangeable for Common Stock or file any registration statement under
the Securities Act with respect to any of the foregoing or (ii) enter into any swap or any other agreement or any transaction
that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Common Stock, whether
any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other
securities, in cash or otherwise. The foregoing sentence shall not apply to (A) the Securities to be sold hereunder, (B) any shares
of Common Stock issued by the Company upon the exercise of an option or warrant or the conversion of a security outstanding on
the date hereof and referred to in the Registration Statement or the General Disclosure Package, or (C) any shares of Common Stock
issued or options to purchase Common Stock granted pursuant to existing equity incentive plans or employee benefit plans of the
Company referred to in the Registration Statement or the General Disclosure Package provided that such options shall not be vested
and exercisable within the ninety (90) day period referred to above (unless such shares are subject to a Lock-Up Agreement).  

   

 ARTICLE IV.

INDEMNIFICATION 

   

 4.1  Indemnification
of Purchasers.  Subject to the provisions of this Section 4.1, the Company will indemnify and hold each Purchaser and
its directors, officers, shareholders, members, partners, employees and agents (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees, incurred by or imposed upon the Purchaser
Party which results, arises out of or is based upon (a) an untrue statement or alleged untrue statement of a material fact contained
in the Registration Statement, including the information deemed to be a part of the Registration Statement at the time of effectiveness
and at any subsequent time pursuant to Rules 430A and 430B of the Rules and Regulations, or arise out of or are based upon the
omission from the Registration Statement, or alleged omission to state therein, a material fact required to be stated therein
or necessary to make the statements therein not misleading, or (b) an untrue statement or alleged untrue statement of a material
fact contained in the General Disclosure Package, the Prospectus, or any amendment or supplement thereto (including any documents
filed under the Exchange Act and deemed to be incorporated by reference into the Registration Statement or the Prospectus), any
Issuer Free Writing Prospectus, or the Marketing Materials, or arise out of or are based upon the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, and will reimburse such Purchaser Party for their reasonable legal or other out of
pocket expenses reasonably incurred and documented by them in connection with evaluating, investigating or defending against such
loss, claim, damage, liability or action. If any action shall be brought against any Purchaser Party in respect of which indemnity
may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall
have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party, but
the failure to notify the Company shall not relieve it from liability that it may have under this Section 4.1 except to the extent
that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure. Any Purchaser
Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the Company has failed
after a reasonable period of time to assume such defense and to employ counsel or (ii) in such action there is, in the reasonable
opinion of counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser
Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.
The Company shall not, without the prior written consent of the Purchaser Party, which consent shall not be unreasonably withheld
or delayed, effect any settlement of any pending or threatened action in respect of which any Purchaser Party is or could have
been a party and indemnity could have been sought hereunder by such Purchaser Party unless such settlement (i) includes an unconditional
release of such Purchaser Party from all liability on any claims that are the subject matter of such action and (ii) does not
include a statement as to, or an admission of, fault, culpability, or a failure to act by or on behalf of a Purchaser Party. The
Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without
the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only
to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations,
warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents or any
violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes
fraud, gross negligence, willful misconduct or malfeasance. The indemnity agreements contained herein shall be in addition to
any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may
be subject to pursuant to law; provided, however, that no Purchaser shall be entitled to any double recovery of damages as a result
of the exercise of any other such right. 

 

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 ARTICLE V.

MISCELLANEOUS 

   

 5.1     Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing
has not been consummated on or before the Termination Date; provided, however, that no such termination will affect
the right of any party to sue for any breach by any other party (or parties). 

   

 5.2     Fees
and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent
fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company
and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery
of any Securities to the Purchasers. 

   

 5.3     Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, and the Prospectus, contain the entire
understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and
schedules. 

   

 5.4     Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto
at or prior to 6:30 p.m. (New York City time) on a business day, (b) the next business day after the date of transmission, if
such notice or communication is delivered via facsimile or email attachment at the facsimile number or email address as set forth
on the signature pages attached hereto on a day that is not a business day or later than 6:30 p.m. (New York City time) on any
business day, (c) the third business day following the date of mailing, if sent by U.S. nationally recognized overnight courier
service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and
communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant to
any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. 

 

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 5.5     Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and Purchasers which purchased at least 50.1% in interest of the Securities based
on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived
provision is sought, provided that if any amendment, modification or waiver disproportionately and adversely impacts a Purchaser
(or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be required.
No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.
Any proposed amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser
relative to the comparable rights and obligations of the other Purchasers shall require the prior written consent of such adversely
affected Purchaser, Any amendment effected in accordance with accordance with this Section 5.5 shall be binding upon each Purchaser
and holder of Securities and the Company. 

   

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

   

 5.7     Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any person to
whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.” 

   

 5.8     No
Third-Party Beneficiaries. The Placement Agent shall be the third party beneficiary of the representations and warranties
of the Company in Article II. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person, except as
otherwise set forth in Article IV and this Section 5.8. 

 

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 5.9     Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any action, suit or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
action, suit or proceeding is improper or is an inconvenient venue for such action, suit or proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such action, suit or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect
for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law. If any party shall commence an action, suit or proceeding to enforce any provisions of the Transaction Documents, then,
in addition to the obligations of the Company under Article IV, the prevailing party in such action, suit or proceeding shall
be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with
the investigation, preparation and prosecution of such action, suit or proceeding. 

   

 5.10     Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities. 

   

 5.11     Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof. 

   

 5.12     Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable. 

   

 5.13     Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided (including all applicable
grace or cure periods), then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice
to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights;
provided, however, that in the case of a rescission of an exercise of a Warrant, the applicable Purchaser shall
be required to return any shares of Common Stock subject to any such rescinded exercise notice concurrently with the return to
such Purchaser of the aggregate exercise price paid to the Company for such shares and the restoration of such Purchaser’s
right to acquire such shares pursuant to such Purchaser’s Warrant (including, issuance of a replacement warrant certificate
evidencing such restored right). 

 

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 5.14     Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Securities. 

   

 5.15     Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation
the defense that a remedy at law would be adequate. 

   

 5.16     Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 

   

 5.17     Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience only, each
Purchaser and its respective counsel have chosen to communicate with the Company through HSE. HSE does not represent any of the
Purchasers and only represents the Placement Agent. The Company has elected to provide all Purchasers with the same terms and
Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers.
It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is
between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among
the Purchasers. 

   

 5.18     Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a business day, then such action may be taken or such right may be exercised on the next succeeding
business day. 

 

     22

     

    

 

 5.19     Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward
share splits, share dividends, share combinations and other similar transactions of the Common Stock that occur after the date
of this Agreement. 

   

 5.20     WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE
PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.  

   

 (Signature Pages Follow) 

 

     23

     

    

 

 IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above. 

 

	BLUE SPHERE CORPORATION	 	Address for Notice:
	 	 	 	301 McCullough Drive, 4th Floor Charlotte, North Carolina 28262
	By:	 	 	E-mail:
	 	Name: Shlomo Palas	 	 
	 	Title: Chief Executive Officer	 	 

 

 [REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK 

 SIGNATURE PAGE FOR PURCHASER FOLLOWS] 

 

     24

     

    

 

 [PURCHASER SIGNATURE PAGES TO SECURITIES
PURCHASE AGREEMENT] 

   

 IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above. 

   

 Name of Purchaser: ________________________________________________________ 

   

 Signature of Authorized Signatory
of Purchaser: _________________________________ 

   

 Name of Authorized Signatory: _______________________________________________ 

   

 Title of Authorized Signatory: ________________________________________________ 

   

 Email Address of Authorized Signatory:_________________________________________ 

   

 Facsimile Number of Authorized Signatory: __________________________________________ 

   

 Address for Notice to Purchaser: 

   

 Address for Delivery of Securities to Purchaser (if not
same as address for notice): 

   

 Subscription Amount for Shares: $_________________ 

   

 Shares: _________________ 

   

 Warrant Shares: __________________ 

   

 Subscription Amount for Pre-Funded Warrants: $_________________ 

   

 Shares: _________________ 

   

 Warrant Shares: __________________ 

   

 EIN Number: _______________________ 

   

 [SIGNATURE PAGES CONTINUE] 

 

     25

     

    

 

 Schedule
i 

   

 Other Written Communications 

   

 None. 

 

     26

     

    

 

 SCHEDULE II 

   

 Lock-up Signatories 

 

	 	Name
	Holders of more than 5% of capital stock:
	1.	[Lazarus Management Company LLC]
	2.	Auto Transtech Inc.
	Directors
	3.	Joshua Shoham
	4.	Yigal Brosh
	5.	Shimon Erlichman
	6.	Lyron Bentovim
	7.	David A. Doctor
	Officers
	8.	Shlomo Palas
	9.	Roy Amitzur
	10.	Ran Daniel
	11.	Elad Kerner

 

     27

     

    

 

 Schedule (aa) 

   

 Eastern Sphere Ltd., an Israeli company, has not filed tax
returns in Israel for the 2015 tax year. The returns are currently being discussed with the Company’s auditors to determine
the best course of action. The Company estimates potential tax liability, including any penalties and interest, of up to approximately
USD $100,000. 

 

     28

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