Document:

Blue Sphere Corporation 10-Q

Exhibit 10.15

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE
AGREEMENT (the “Agreement”), dated as of June 1, 2018, by and between Blue Sphere Corp., a Nevada corporation,
with headquarters located at 301 McCullough Drive, 4th floor, Charlotte, NC 28262 (the “Company”) and COVENTRY
ENTERPRISES, LLC, a Limited Liability Company, with its address at 80 S.W. 8th Street, Suite 2000, Miami, FL 33130
(the “Buyer”).

 

WHEREAS:

 

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

 

B.            Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement
two 10% convertible notes of the Company, in the forms attached hereto as Exhibit A and B in the aggregate principal amount of
$110,000.00 (comprised of the first note (“First Note”) being in the amount of $55,000.00, and the remaining note in
the amount of $55,000.00, a “Back End Note”) (together with any note(s) issued in replacement thereof or as a dividend
thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”), convertible into shares
of common stock, of the Company (the “Common Stock”), upon the terms and subject to the limitations and conditions
set forth in such Note. Each Note shall contain a $5,000 OID such that the purchase price of each Note shall be $50,000.00. The
First Note shall be paid for by the Buyer as set forth herein. The Back-End Note shall initially be paid for by the issuance of
an offsetting $50,000.00 secured note issued to the Company by the Buyer (a “Buyer Note”), provided that prior to conversion
of that Back End Note, the Buyer must have paid off that Buyer Note in cash such that the Back End Note may not be converted until
it has been paid for in cash by Buyer.

 

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

 

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

 

1.             Purchase and Sale of Note.

 

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

 

 

Company Initials

 

     

     

    

  

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

 

c.      
Closing Date. The date and time of the first issuance and sale of the Note pursuant to this Agreement (the “Closing
Date”) shall be on or about June 1, 2018, or such other mutually agreed upon time. The closing of the transactions contemplated
by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.
Subsequent Closings shall occur when the Buyer Notes are repaid. The Closing of the following note shall be on or before the dates
specified in the relevant Buyer Note. The Company may reject the funding of the Back End Note by giving 30 day prior written
notice. Such notice must be given 30 days prior to the 6 month anniversary of the Back End Note.

 

2.            Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that:

 

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

 

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

 

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

 

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

 

    2 

     

    

  

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

 

f.      
Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not
being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the
Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered
to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions
of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred
to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”)
of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited
Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under
the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the cost
of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions,
which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only
in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances
in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in
the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder;
and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any
state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the
foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

 

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g.     
Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under
the 1933 Act may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular
date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form
(and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

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

 

The legend set forth
above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it
is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an
effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without
any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides
the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions,
to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion
shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those
represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements,
if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer
of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within 2 business days, it will be
considered an Event of Default under the Note.

 

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

 

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

 

    4 

     

    

 

j.       
No Short Sales. Buyer/Holder, its successors and assigns, agree that so long as the Note remains outstanding, the
Buyer/Holder shall not enter into or effect “short sales” of the Common Stock or hedging transaction which establishes
a short position with respect to the Common Stock of the Company. The Company acknowledges and agrees that upon delivery of a Conversion
Notice by the Buyer/Holder, the Buyer/Holder immediately owns the shares of Common Stock described in the Conversion Notice and
any sale of those shares issuable under such Conversion Notice would not be considered short sales.

 

3.            Representations and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

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

 

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

 

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

 

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

 

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

 

f.      
Absence of Litigation. Except as disclosed in the Company’s public filings, there is no action, suit, claim,
proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body
pending or, to the knowledge of the Company or any of its subsidiaries, threatened against or affecting the Company or any of its
subsidiaries, or their officers or directors in their capacity as such, that could have a material adverse effect

 

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

 

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

 

    6 

     

    

 

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

 

j.       
Bad Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as
amended on the basis of being a “bad actor” as that term is established in the September 19, 2013 Small Entity Compliance
Guide published by the Securities and Exchange Commission.

 

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

 

4.            COVENANTS.

 

a.      
Expenses. At the Closing, the Company shall reimburse Buyer $2,500 for expenses incurred by them in connection with
the negotiation, preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in
connection herewith (“Documents”), including, without limitation, reasonable attorneys’ and consultants’
fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of
the Documents or any consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow
fees, and costs of restructuring the transactions contemplated by the Documents.

 

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

 

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c.      
Corporate Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or
sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i)
assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith
and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTC MARKETS, Nasdaq or NYSE.

 

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

 

e.      
Filings. The Company shall include all of the Notes in its next scheduled SEC filing whether that shall be a 10Q
or a10K.

 

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

 

5.            Governing Law; Miscellaneous.

 

a.      
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New
York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions
contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state
and county of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens.
The Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable
attorney's fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith
is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision
which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of
any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit,
action or proceeding in connection with this Agreement or any other Transaction Document 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.

 

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

 

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

 

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

 

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

 

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

 

If to the Company,
to:

 

Blue Sphere
Corp.

301 McCullough
Drive, 4th Floor

Charlotte,
NC 28262

Attn: Shlomi
Palas, CEO

 

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 If to the Buyer:

 

COVENTRY ENTERPRISES,
LLC

80 S.W. 8th
Street, Suite 2000

Miami, FL
33130

Attn: Jack
Bodenstein

 

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

 

g.     
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior
written consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any “qualified
person”, any “permitted assigns”, or “prospective transferee” that acquires or purchases Note Securities
in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act,
with the prior written consent of the Company, which consent shall not be unreasonably withheld, and with Buyer’s Opinion
of Counsel. A qualified person is an “accredited investor” transferee, assignee, or purchaser of the Note who succeeds
to the Holder’s right, title and interest to all or a portion of the Note accompanied with an Opinion of Counsel as provided
for in Section 2(f).

 

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

 

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

 

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

 

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

 

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

 

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

 

Blue Sphere Corp.

 

	By:	/s/ Shlomi Palas	 
	Name: 	Shlomi Palas	 
	Title: 	CEO	 

 

	COVENTRY ENTERPRISES, LLC.	 
	 	 	 
	By:	/s/ Jack Bodenstein	 
	Name:	Jack Bodenstein	 
	Title: 	Manager	 

 

AGGREGATE SUBSCRIPTION AMOUNT:

 

	Aggregate Principal Amount of Note:	$110,000.00

 

Aggregate Purchase Price:

 

Note 1: $55,000.00 less $5,000.00 in OID,
less $2,500.00 in legal fees,

 

Note 2: $55,000.00 less $5,000.00 in OID,
less $2,500.00 in legal fees

 

    12 

     

    

  

EXHIBIT A

144 NOTE - $55,000.00

 

EXHIBIT B

BACK END NOTE - $55,000.00

 

    13Blue Sphere Corporation 10-Q

Exhibit 10.16

 

NEITHER
THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A
LEGAL OPINION OF COUNSEL TO 

 

Date
of Issuance: 7 June 2018

 

Euro
282,332.00

 

NON-INTEREST
BEARING

CONVERTIBLE NOTE

DUE
1 September 2018

 

THIS
NOTE is a duly authorized and issued non-interest bearing convertible note of Blue Sphere Corp. a Nevada corporation having a
principal place of business at 301 McCullough Drive, 4th floor, Charlotte, NC 28262, United States (the “Company”),
due 1 September 2018 (the “Note”).

 

FOR
VALUE RECEIVED, the Company promises to transfer to Bedrijvenpark ‘t Chijnsgoed B.V., a private company with limited liability
having its offices seat at Voltstraat 5b, 5753 RL, in Deurne, The Netherlands (the “Holder”), shares of its common stock
in an amount equal to Euro 282,332.00 (the “Principal Amount”) on 1 September 2018 or such earlier date as the Note
is required or permitted to be repaid as provided hereunder (the “Maturity Date”) in full satisfaction of and in accordance
with the terms and conditions set forth in this Note.

 

This
Note is subject to the following additional provisions:

 

Section
1. No Transfer.

 

This
Note may not be transferred or exchanged. The Company and any agent of the Company may treat the person in whose name this Note
is issued as the owner hereof for the purpose of execution and conversion as herein provided and for all other purposes and neither
the Company nor any agent shall be affected by any notice to the contrary. Notwithstanding the foregoing, the Company agrees that
subject to the receipt by the Company of a written notice in the form of Exhibit A, the Holder may deposit this Note with
Rabobank in which case the representative of the bank mentioned in the written notice shall be the sole person authorized to deliver
notices of conversions or otherwise communicate with the Company and its transfer agent in respect of the Note.

 

     

     

    

 

Section
2. Security for the Lease.

 

This
Note has been issued and delivered to Holder as security for the payment of amounts owing under the lease between the Holder and
Blue Sphere Brabant B.V. (“BSB”) dated 3 October 2016, as amended (the “Lease”), from 1 February 2018
through 31 August 2018 with such amounts being equal to the Principal Amount (the “Lease Payment”). If BSB pays the
Lease Payment in full on or before the Maturity Date, then this Note will be terminated and of no further force or effect even
if the Note was not returned to the Company in accordance with this Note. In this case, Holder will return the originally signed
copy of this Note to the Company in accordance with instructions to be given by the Company at such time. Notwithstanding the
foregoing, it is agreed that the Holder may convert all or part of this Note into shares of the Company’s common stock in
accordance with Section 3 below. Conversion of the Note into shares of the Company’s common stock in accordance with Section
3 below is the sole recourse of the Holder vis-à-vis the Company in the event that BSB does not make the Lease Payment
in full on or before the Maturity Date. In no circumstance will the Company be required to pay or owe to the Holder any amount
in cash. Any Principal Amount converted into shares of Common Stock will reduce the amount of the Lease Payment accordingly. Holder
agrees that any such reduction shall be applied to any payments to be made by BSB under the Lease.

 

Section
3. Conversion

 

(a)
Holder’s Conversion Right. At any time after the date of issuance of this Note until the Lease Payment has been paid in full,
this Note shall be convertible into shares of common stock of the Company (“Common Stock”) at the market price (as
reported on www.bloomberg.com or www.otcmarkets.com) at the time of conversion at the option of the Holder, in part or in whole
at any time and from time to time. Any such conversion will reduce the Principal Amount and, thus, the number of shares into which
the Principal Amount may be converted by whatever amount is converted. By way of illustration only, if this Note is converted
in full, then the Principal Amount will be reduced to zero. If the Holder elects to convert Euro 100,000 only, then the Principal
Amount will be reduced by Euro 100,000. The Holder shall effect conversions by delivering to the Company and its transfer agent
the form of Notice of Conversion attached hereto as Exhibit B (a “Notice of Conversion”), specifying the date
on which such conversion is to be effected (a “Conversion Date”). If no Conversion Date is specified in a Notice of
Conversion, the Conversion Date shall be the date that such Notice of Conversion is provided hereunder. If
requested or required by the Company’s transfer agent, promptly upon receipt of a Notice of Conversion, the Company shall
instruct its transfer agent to issue and deliver the Common Stock to the Holder in accordance with instructions to be provided
by Holder at such time. If and when the Note is converted in full, the Note shall be null and void and not in force for any purpose
and the Holder shall surrender the physical copy of the Note to the Company by delivering the same in accordance with any instructions
to be provided by the Company at such time. To the extent that Euros need to be converted into dollars or vice versa for
any purpose related to this Note, the Holder and Company shall use the USD – Euro / Euro – USD rate on www.bloomberg.com
at the time of such conversion.

 

(b)
If requested by the Holder, in lieu of delivering physical certificates representing the Common Stock issuable upon conversion,
the Company shall cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder
by crediting the account of Holder’s prime broker or broker with the Depository Trust Company (“DTC”) through
its Deposit Withdrawal Agent Commission (“DWAC”) system. The Company shall be
responsible for the fees of its transfer agent and all DTC fees associated with any such issuance of Common Stock to the Holder.

 

    2 

     

    

 

(c)
The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common
Stock solely for the purpose of issuance upon conversion of the Note, such number of shares of Common Stock as shall then be issuable
upon conversion of this Note. Furthermore, the Company is required to reserve 500,000 authorized common stock shares available
for issuance to the Holder pursuant to a conversion.

 

(d)
Any and all notices or other communications or deliveries to be provided by the Holder or Company hereunder, including, without
limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile/email, sent by a nationally recognized
overnight courier service, addressed to the Company or Holder (as the case may be), at the address set forth or such other address
or facsimile number or email address as the Company or Holder may specify for such purposes by notice to the Holder or Company
delivered in accordance with this Section. Any notice or other communication or deliveries hereunder shall be deemed given and
effective on the earliest of (i) the date of transmission, if such notice or communication is delivered prior to 5:30 p.m. EST
on a Business Day, (ii) the Business Day after the date of transmission, if such notice or communication is delivered later than
5:30 p.m. EST on any date and earlier than 11:59 p.m. EST on such date, (iii) the Business Day following the date of receipt of
such mailing as evidenced by written confirmation by an internationally recognized courier service or (iv) upon actual receipt
by the party to whom such notice is required to be given.

 

Section
4. Representations of the Company.

 

The
Company hereby represents and warrants to the Holder that (i) the Note and the note purchase agreement between the Company and
Holder of even date herewith (the “Agreement”) contain rights and obligations which are binding and enforceable under
applicable law and (ii) that it has full authority to enter into, execute, deliver and consummate the transactions contemplated
by this Note and the Agreement.

 

Section
5. Administration.

 

If
this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for
and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for
the principal amount of this Note so mutilated, lost, stolen or destroyed but only upon receipt of evidence of such loss, theft
or destruction of such Note, and of the ownership hereof, and indemnity, if requested, all reasonably satisfactory to the Company.

 

Section
6. Waiver.

 

Any
waiver by the Company or the Holder of a breach of any provision of this Note shall be in writing and shall not operate as or
be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure
of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered
a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this
Note. Any waiver must be in writing.

 

    3 

     

    

 

Section
7. Invalid Terms; Illegality.

 

If
any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision
is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or other law which would prohibit or forgive the Company
from paying all or any portion of the principal on this Note as contemplated herein, wherever enacted, now or at any time hereafter
in force, or which may affect the covenants or the performance of this indenture, and the Company (to the extent it may lawfully
do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such
law, hinder, delay or impeded the execution of any power herein granted to the Holder, but will suffer and permit the execution
of every such as though no such law has been enacted.

 

Section
8. Business Days.

 

Whenever
any payment or other obligation hereunder shall be due on a day other than a day on which banks are open for business in United
States and/or The Netherlands (a “Business Day”), such payment shall be made on the next succeeding Business Day.

 

Section
9. Enforcement.

 

This
Note shall be governed by and construed and enforced in accordance with the 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 Note or any of the transaction documents relating thereto (“Transaction
Documents”) (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees
or agents) shall be commenced in the state and federal courts sitting in the borough of Manhattan, New York, (the “NY Courts”).
Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the NY Courts for the adjudication of any dispute
hereunder or in connection herewith and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, or such NY Courts are improper or inconvenient
venue for such proceeding. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any
and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated
hereby.

 

    4 

     

    

 

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

 

	 	BLUE SPHERE CORP.
	 	 	 
	 	By:	/s/ Shlomi Palas	 
	 	Name:	Shlomi Palas	 
	 	Title:	CEO	 

 

Agreed
and accepted:

 

Bedrijvenpark
‘t Chijnsgoed B.V.

 

	By:	/s/ Bedrijvenpark    ‘t Chijnsgoed B.V.	 
	Name: 		 
	Title: 		 

 

    5 

     

    

 

EXHIBIT
A

 

NOTICE
OF DEPOSIT

 

The
undersigned hereby gives notice to Blue Sphere Corp. (the “Company”) that on [date], the undersigned deposited the
Note with Rabobank (the “Bank”) and instructed the Company’s transfer agent to accept notices of conversion
and related instructions from [insert name], who is an authorized representative of the Bank for this purpose. The contact details
of [insert name] are set forth below:

 

Name: 

Address: 

Email: 

Telephone: 

Facsimile:

 

Bedrijvenpark
‘t Chijnsgoed B.V.

 

By:

 

Name & Title:

 

    6 

     

    

 

EXHIBIT
B

 

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal under the Non-Interest Bearing Convertible Note of Blue Sphere Corp. (the
“Company”), dated [ ] June 2018, into shares of common stock, $0.0001 par value per share (the “Common
Stock”), of the Company according to the conditions hereof, as of the date written below.

 

Date
to effect conversion: __________________________________________________________________ 

 

Principal
Amount of Note to be converted in USD (based on a Euro – USD exchange rate of [] as indicated on www.bloomberg.com:_______________________________

 

Number
of shares of Common Stock to be issued:______________________________________

 

Signature: ________________________________

 

Name & Title:______________________________

 

    7

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