Document:

Blue Sphere Corporation 8-K

 

Exhibit
10.2 

 

BLUE SPHERE CORPORATION

 

SENIOR DEBENTURE

 

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

 

	PRINCIPAL AMOUNT:	 	$_________
	DEBENTURE NUMBER:	 	D-DEC-2015 –__
	ISSUANCE DATE:	 	December 23, 2015
	MATURITY DATE:	 	December 22, 2017

  

FOR VALUE RECEIVED, BLUE SPHERE CORPORATION,
a Nevada corporation (the “Company”), as of December 23, 2015 (the “Issuance Date”),
hereby unconditionally promises to pay subject to the provisions stated herein to the order of _________________________ (“Holder”),
in lawful money of and within the United States of America and in immediately available funds, up to US$________________ (the “Principal
Amount”), together with accrued and unpaid interest (“Interest”) thereon, at December 22, 2017 (the
“Maturity Date”).

 

This Senior Debenture (this “Debenture”)
and all other identical Senior Debentures in the aggregate principal amount of up to $3,000,000 (collectively, the “Debentures”)
are issued in connection with a private placement by the Company of its of Debentures and Warrants, pursuant and in accordance
with a Subscription Agreement dated the date hereof by and among the Company, the Holder and all other purchasers of Debentures
(the “Subscription Agreement”), a copy of which agreement is available for inspection at the Company’s
principal office. Notwithstanding any provision to the contrary contained herein, this Debenture is subject and entitled to certain
terms, conditions, covenants and agreements contained in the Subscription Agreement. Any transferee of this Debenture, by its acceptance
hereof, assumes the obligations of the Holder in the Subscription Agreement with respect to the conditions and procedures for transfer
of this Debenture. Reference to the Subscription Agreement shall in no way impair the absolute and unconditional obligation of
the Company to pay both Principal Amount and Interest.

 

1.          Principal Repayment; Interest Repayment.

 

(a)            Repayment of the Principal
Amount by the Company to the Holder shall be made in full no later than the Maturity Date.

 

(b)            Interest shall accrue on the
outstanding principal balance of this Debenture for the period beginning on the Issuance Date of this Debenture through and including
the Maturity Date, unless redeemed pursuant to the terms hereof, at a rate of eleven percent (11%) per annum. All Interest payable
under this Debenture shall be paid quarterly in arrears on or before the fifteenth (15th) day of each month following the end of
the calendar quarter throughout the term of this Debenture Agreement with the first interest payment due one quarter after closing
and each quarter thereafter.

 

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(c)            The Company may at any time
repurchase any or all amounts outstanding under the Debentures in cash for one hundred and five percent (105%) of the Principal
Amount of the Debentures plus all accrued but unpaid Interest on ten (10) business days’ notice. Redemptions pursuant to
this Section 1(c) for less than all amounts outstanding under the Debentures shall be on a pro rata basis in accordance
with the Holder’s investment relative to the total Principal Amount of all of the Debentures.

 

(d)            This Debenture is, for so
long as it is outstanding, subject to the terms and conditions set forth in the Pledge Agreement between the Company and Subscriber
dated as of the date hereof (the “Pledge Agreement”).

 

2.          Place of Payment; Application of
Payments. All Principal Amount and Interest due hereunder shall be payable to Holder in United States Dollars to such bank
account as shall be designated by Holder in immediately available funds or as otherwise specified to the Company in writing. Payment
on this Debenture shall be applied first to any expenses of collection, then to accrued interest, and thereafter to the outstanding
principal balance hereof.

 

3.          Default. The occurrence of any of
the following events of default shall each constitute and be an “Event of Default” under this Debenture:

 

(a)            Bankruptcy or insolvency of
the Company;

 

(b)            The Company’s failure
to pay any of the Principal Amount due under this Debenture on the date the same becomes due and payable, or any accrued Interest
or other amounts due under this Debenture after the same becomes due and payable;

 

(c)            Breach of any material covenant
or agreement contained in this Debenture and such breach remains uncured for a period of fifteen (15) days after written notice
thereof is received by the Company from Holder;

 

(d)           The dissolution of the Company
or any vote in favor thereof by the board of directors (or similar governing body) and/stockholders of the Company; and

 

(e)           The Company makes an assignment
for the benefit of creditors, or files an application for the appointment of a receiver or similar official with respect to it
or any substantial part of its assets.

 

Upon the occurrence of
an Event of Default, the unpaid Principal Amount, all unpaid accrued Interest thereon and all other amounts owing hereunder may,
at the option of Holder, become immediately due and payable to Holder, provided, however, that upon the occurrence of an
Event of Default described in Section 3(a), all indebtedness of the Company to Holder shall become immediately due and payable
without any action of Holder.

 

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4.          Covenants.

 

(a)            Use of Proceeds. The
Company shall use the net cash proceeds loaned to the Company pursuant to this Debenture for working capital and general corporate
purposes, provided however, the Company shall have broad discretion in the application of the net proceeds allocated to working
capital and general corporate purposes.

 

(b)            Compliance with Agreements.
The Company shall perform and observe, or cause to be performed or observed, as the case may be, all of the provisions in its certificate
of incorporation, its by-laws, and the obligations pursuant to the terms, agreements, and covenants of this Debenture and all documents
and agreements executed or delivered in connection with this Debenture. The Company expressly represents that the Company has the
full power and authority to deliver this Debenture that this Debenture has been duly authorized, executed, and delivered by the
Company, and that the Company’s obligations under this Debenture are legal, valid, binding, and enforceable, absolute, and
unconditional.

 

(c)            Preservation of Corporate
Existence and Business. The Company shall use its best efforts to preserve intact its present business organization, rights,
and privileges and present goodwill and, to the best of its ability, its relationships existing with other parties and shall at
all times cause to be done all things necessary to maintain, preserve, and renew its corporate existence in the State of Nevada,
and shall observe and conform with all valid requirements of such governmental authorities relating to the conduct of the business
of the Company, the failure of which would have a material adverse effect upon the Company’s business or financial condition.
The Company shall maintain and keep in force all material licenses, permits and agreements necessary to the conduct of its businesses.

 

(d)            Maintenance of Properties.
The Company shall maintain and keep its properties, real and personal, in good repair, working order, and condition, and from time
to time make all necessary or desirable repairs, renewals, and replacements, so that its business may be properly and advantageously
conducted at all times.

 

(e)            Compliance with Obligations,
Laws, etc. The Company shall comply with all of the obligations which it has incurred or to which it becomes subject pursuant
to any contract or agreement, whether oral or written, express or implied, the breach of which might have a material adverse effect
upon its business or financial condition, unless and to the extent that the same are being contested in good faith and by appropriate
proceedings and adequate reserves have been set aside on its books with respect thereto. The Company shall comply with all applicable
laws, rules, and regulations of all governmental authorities.

 

(f)            Books of Account. The
Company will, and will cause each of its subsidiaries to, at all times maintain books of account in which its financial transactions
are duly recorded in conformance with generally accepted accounting principles.

 

(g)            Unconditional Obligation;
No Waiver. The obligations to make payments provided for in this Debenture are absolute and unconditional and are not subject
to any defense, set-off counterclaim, rescission, recoupement, or adjustment whatsoever. No forbearance, indulgence, delay, or
failure to exercise any right or remedy with respect to this Debenture shall operate as a waiver or as an acquiescence in any default,
nor shall any single or partial exercise of any right or remedy preclude any other or further exercise thereof or exercise of any
other right or remedy.

 

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5.            Waiver and Arbitration. TO THE FULLEST
EXTENT PERMITTED BY LAW, HOLDER AND THE COMPANY AGREE THAT NEITHER OF THEM NOR ANY ASSIGNEE OR SUCCESSOR SHALL (i) SEEK A JURY
TRIAL IN ANY LAWSUIT, PROCEEDING, COUNTERCLAIM OR ANY OTHER ACTION BASED UPON, OR ARISING OUT OF, THIS DEBENTURE, ANY RELATED
AGREEMENTS OR INSTRUMENTS OR THE DEALINGS OR THE RELATIONSHIP BETWEEN THEM, (ii) SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY
OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED, OR (iii) MAKE ANY CLAIM FOR CONSEQUENTIAL, PUNITIVE, OR SPECIAL
DAMAGES. THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN FULLY DISCUSSED BY HOLDER AND THE COMPANY, AND THESE PROVISIONS SHALL BE SUBJECT
TO NO EXCEPTIONS. NEITHER HOLDER NOR THE COMPANY HAS AGREED WITH OR REPRESENTED TO THE OTHER THAT THE PROVISIONS OF THIS PARAGRAPH
WILL NOT BE FULLY ENFORCED IN ALL INSTANCES. THE COMPANY WAIVES PRESENTMENT AND WRITTEN DEMAND FOR PAYMENT, NOTICE OF DISHONOR,
PROTEST, AND NOTICE OF PROTEST OF THIS DEBENTURE.

 

All disputes arising under
this Debenture shall be governed by and interpreted in accordance with the laws of the State of Nevada, without regard to principles
of conflict of laws. The parties to this Debenture shall submit all disputes arising under this Debenture to arbitration in New
York, New York before a single arbitrator of the American Arbitration Association (the “AAA”). The arbitrator
shall be selected by application of the rules of the AAA, or by mutual agreement of the parties, except that such arbitrator shall
be an attorney admitted to practice law in the State of New York. No party hereto will challenge the jurisdiction or venue provisions
as provided in this section. Nothing in this section shall limit the Holder’s right to obtain an injunction for a breach
of this Debenture from a court of law. Any injunction obtained shall remain in full force and effect until the arbitrator fully
adjudicates the dispute.

 

6.          Attorney’s Fees; Collection
Costs. If there has been an Event of Default by the Company hereunder, Holder shall be entitled to receive and the Company
agrees to pay all costs of enforcement and collection incurred by Holder, including, without limitation, reasonable attorney’s
fees relating thereto.

 

7.          Notices. Unless otherwise specified
herein, all notices hereunder shall be in writing and shall be deemed to have been given when delivered by hand, or on the third
business day after properly deposited with the United States Postal Service, as certified mail, return receipt requested, postage
prepaid, or on the first business day after properly deposited with an overnight courier of national standing, addressed to the
address indicated below:

 

If to the Company, at:  

    ________________________

    ________________________

    ________________________

 

If to the Holder, to the
address set forth for notice in the Subscription Agreement.

 

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8.            No Waivers of Holder’s Rights.
No failure or delay by Holder in exercising any right, power, or privilege hereunder or under any other documents or agreements
executed in connection herewith shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies in this Debenture
provided are cumulative and not exclusive of any rights or remedies otherwise provided by agreement or law.

 

9.            Record Ownership. The Company
or its attorney shall maintain a register of the Holder of the Debentures (the “Register”) showing their names
and addresses and the serial numbers and principal amounts of Debentures issued to them. The Register may be maintained in electronic,
magnetic or other computerized form. The Company may treat the person named as the Holder of this Debenture in the Register as
the sole owner of this Debenture. The Holder of this Debenture is exclusively entitled to receive payments on this Debenture,
receive notifications with respect to this Debenture and otherwise exercise all of the rights and powers as the absolute owner
hereof.

 

10.           Worn
or Lost Debentures. If this Debenture becomes worn, defaced or mutilated but is still substantially intact and recognizable,
the Company or its agent may issue a new Debenture in lieu hereof upon its surrender. Where the Holder of this Debenture claims
that the Debenture has been lost, destroyed or wrongfully taken, the Company shall issue a new Debenture in place of the Debenture
if the Holder so requests by written notice to the Company.

 

11.           Amendments. Neither this
Debenture nor any provision hereof may be amended, waived, discharged or terminated except by a written instrument signed by the
Holder and, in the case of amendments, by the Company.

 

12.           Transferability. This Debenture
has been issued by the Company for the sole benefit of Holder and may not be sold, transferred or otherwise assigned without the
prior written consent of the Company, and the Holder agrees not to take any actions which would cause any third party to have
such an interest in this Debenture.

 

13.           Assignment. The rights and obligations
of the Company and Holder shall be binding upon any entity which becomes the successor of the Company such as the Public Company
Successor or which otherwise assumes the Company’s obligations hereunder.

 

14.           Partial Invalidity. The invalidity
or unenforceability of any one or more phrases, clauses or sections of this Debenture shall not affect the validity or enforceability
of the remaining portions of it.

 

15.           Captions. The captions and headings
of the various sections and subsections of this Debenture are provided for’ convenience only and shall not be construed to
modify the meaning of such sections or’ subsections.

 

16.           Entire Agreement. This Debenture
and the documents and any agreements executed in connection herewith constitute the ‘final agreement of the parties hereto
and supersede any prior agreement or understanding, written or oral, with respect to the matters contained herein and therein.

 

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THIS DEBENTURE HAS BEEN EXECUTED AND DELIVERED
IN THE STATE OF NEW YORK, UNITED STATES OF AMERICA. THIS DEBENTURE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEVADA, EXCLUDING CONFLICT OF LAWS PRINCIPLES THAT WOULD CAUSE THE APPLICATION OF LAWS OF ANY OTHER
JURISDICTION.

 

	 	 	BLUE SPHERE CORPORATION
	 	 	 	 
			By:	
	 	 	Name:	Shlomi Palas
	 	 	Title:	Chief Executive Officer

 

6Blue Sphere Corporation 8-K

Exhibit
10.3 

 

BLUE SPHERE CORPORATION

 

WARRANT

 

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

 

	WARRANT NUMBER:	 	W-DEC-2015 -__
	ISSUANCE DATE:	 	December 23, 2015

 

FOR VALUE RECEIVED, BLUE SPHERE CORPORATION,
as of December 23, 2015 (the “Issuance Date”) a Nevada corporation (the “Company”), hereby
certifies that ____________, or its registered assigns (the “Warrant Holder”), is entitled, subject to the terms
set forth below, to purchase from the Company ___________ shares (the “Warrant Shares”) of the Company’s
common stock, $0.001 par value per share (the “Common Stock”), exercisable at price per share of [$0.05/$0.075]
per share (the “Exercise Price”). This Warrant may be exercised any time after issuance through and including
the fifth (5th) anniversary of the Issuance Date (the “Expiration Date”), subject to the following terms and
conditions set out in this Warrant.

 

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

 

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

 

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

 

4.            Registration of Transfers and Exchange
of Warrants.

 

(a)             Subject to compliance with
the legend set forth on the face of this Warrant, the Company shall register the transfer of any portion of this Warrant in the
Warrant Register, upon surrender of this Warrant with the Form of Assignment attached hereto duly completed and signed, to the
Company at the office specified in or pursuant to Section 10. Upon any such registration or transfer, a new warrant to purchase
Common Stock, in substantially the form of this Warrant (any such new warrant, a “New Warrant”), evidencing
the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion
of this Warrant not so transferred, if any, shall be issued to the transferring Warrant Holder. The acceptance of the New Warrant
by the transferee thereof shall be deemed the acceptance of such transferee of all of the rights and obligations of a Warrant Holder
of a Warrant.

 

(b)             This Warrant is exchangeable,
upon the surrender hereof by the Warrant Holder to the office of the Company specified in or pursuant to Section 10 for one or
more New Warrants, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then be purchased hereunder.
Any such New Warrant will be dated the date of such exchange.

 

5.            Exercise of Warrants.

 

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

 

(b)             Exercise of this Warrant shall
be made upon surrender of this Warrant with an Election to Purchase in the form attached hereto (or attached to such New Warrant),
duly completed and signed to the Company, at its address set forth in Section 10.

 

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

 

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

 

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

 

6.            Cashless Exercise.

 

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

 

	X = Y (A-B)/A	 
	 	 
	where:	 

	 	X =	The number of Warrant Shares
    to be issued to the Holder.
	 	 	 
	 	Y =	The number of Warrant Shares with respect
    to which this Warrant is being exercised.
	 	 	 
	 	A =	The average closing bid price of the
    Common Stock for the five (5) trading days immediately prior to the Date of Exercise.
	 	 	 
	 	B =	The Exercise Price.

 

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

 

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

 

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

 

9.            No Registration; Compliance with Reporting
Requirements. The Company shall take all actions, including timely filing all reports and other documents with the SEC, necessary
for the Warrant Holder to, and will refrain from taking any actions which would prevent the Warrant Holder from being able to,
sell or transfer the Warrant Shares (a) obtained by means of a cashless exercise pursuant to Section 6 within six (6) months following
the Issuance Date or (b) otherwise obtained by exercise of this Warrant within six (6) months following the Date of Exercise.

 

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

 

      (a)             If to the Company:

 

________________________

________________________

________________________

 

(b)            If to the Warrant
Holder, to the address set forth for notice in the Subscription Agreement, dated as of the date hereof, between the Warrant Holder
and the Company.

 

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11.          Miscellaneous.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

  

[Signature Page Follows]

 

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

 

	 	THE
COMPANY:	 
	 	 	 
	 	blue
sphere corporation 	 

 

	 	By:		 
	 	Name:	Shlomi Palas	 
	 	Title:	Chief Executive Officer	 

 

	 	WARRANT
HOLDER: 	 
	 	 	 
	 	 	 
	 	(entity name, if applicable}	 

 

	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

  

[Signature Page to Warrant]

 

    	

    	 

    

 

 

FORM OF ELECTION TO PURCHASE

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

purchase shares of Common Stock under
the foregoing Warrant)

 

Blue Sphere Corporation

 

 

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

 

Gentlemen:

 

In accordance with the Warrant enclosed with
this Election to Purchase, the undersigned hereby irrevocably elects to purchase _____________ shares of Common Stock of Blue Sphere
Corporation at an Exercise Price of [$0.05/$0.075], and encloses herewith $____________ in cash, certified or official bank check(s),
which sum represents the aggregate price for the number of shares of Common Stock to which this Election to Purchase relates, together
with any applicable taxes payable by the undersigned pursuant to the Warrant. Any capitalized terms used but not defined in this
Election to Purchase shall have the meaning ascribed to them in the accompanying Warrant.

 

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

 

	 	Name:	 	 
	 	 	 	 
	 	Taxpayer ID:	 	 
	 	 	 	 
	 	Address:	 	 
	 	 	 	 
	 	 	 	 

 

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

 

	 	Name:	 	 
	 	 	 	 
	 	Address:	 	 
	 	 	 	 
	 	 	 	 

 

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

 

	HOLDER:	 	 

 

	Name:	 	 
	 	 	 
	 	 	 
	By:	 	 
	 	 	 
	Title:	 	 

	 	 	 
	Dated:		, 	 	 

  

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

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