Document:

Blue Sphere Corporation - 10-K

Exhibit 10.235

 

NEITHER
THE ISSUANCE NOR SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
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 (H) 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.

 

	Principal Amount: $165,000.00	Issue Date: November 21,
    2017
	Purchase Price: $153,450.00	 
	Original Issue Discount: $11,550.00	 

 

CONVERTIBLE
PROMISSORY NOTE

 

FOR
VALUE RECEIVED, BLUE SPHERE CORPORATION, a Nevada corporation (hereinafter called the “Borrower”), hereby
promises to pay to the order of MORNINGVIEW FINANCIAL, LLC, a Wyoming limited liability company, or registered assigns
(the “Holder”) the principal sum of $165,000.00 (the “Principal Amount”), together with interest at
the rate of five percent (5%) per annum, at maturity or upon acceleration or otherwise, as set forth herein (the
“Note”). The consideration to the Borrower for this Note is $153,450.00 (the “Consideration”). At the
closing, the outstanding principal amount under this Note shall be $165,000.00, consisting of the Consideration plus the OID
(as defined herein). The maturity date shall be twelve (12) months from the Issue Date (the “Maturity Date”), and
is the date upon which the principal sum, as well as any accrued and unpaid interest and other fees shall be due and payable.
This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or
interest on this Note, which is not paid by the Maturity Date, shall bear interest at the rate of the lesser of (i) eighteen
percent (18%) per annum and (ii) the maximum amount permitted by applicable law from the due date thereof until the same is
paid (“Default Interest”). Interest shall commence accruing on the date that the Note is fully paid and shall be
computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not
converted into the Borrower’s common stock (the “Common Stock”) in accordance with the terms hereof) shall
be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall
hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever any amount
expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on
the next succeeding day which is a business day and, in the case of any interest payment date which is not the date on which
this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining
the amount of interest due on such date. As used in this Note, the term “business day” shall mean any day other
than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by
law or executive order to remain closed.

 

This
Note carries an original issue discount of $11,550.00 (the “OID”), to cover the Holder’s accounting fees, due
diligence fees, monitoring, and/or other transactional costs incurred in connection with the purchase and sale of the Note, which
is included in the principal balance of this Note. Thus, the purchase price of this Note shall be $153,450.00, computed as follows:
the Principal Amount minus the OID.

 

     

     

    

 

This
Note is 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 Borrower and will not impose personal liability upon the holder thereof.

 

The
following additional terms shall also apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1          Conversion
Right. The Holder shall have the right at any time on or after the Issue Date to convert all or any part of the outstanding
and unpaid principal amount and accrued and unpaid interest of this Note into fully paid and non-assessable shares of Common Stock,
as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such
Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined
as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be entitled to convert
any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of
Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially
owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security
of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number
of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of
this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding
shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined
in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations
13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further, however, that the limitations
on conversion may be waived (up to a maximum of 9.99%) by the Holder upon, at the election of the Holder, not less than 61 days’
prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or
such later date, as determined by the Holder, as may be specified in such notice of waiver). The number of shares of Common Stock
to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the
applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit
A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided
that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result
in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”).
The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount
of this Note to be converted in such conversion plus  (2) at the Holder’s option, accrued and unpaid interest, if
any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus  (3) at the Holder’s
option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus 
(4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

 

     

     

    

 

1.2          Conversion
Price.

 

(a)
Calculation of Conversion Price. The Conversion Price shall equal $1.80 (the “Fixed Conversion Price”) during
the 180 calendar day period after the Issue Date, provided, however, that after the 180th calendar day after the Issue Date, the
Conversion Price shall equal the lesser of (i) the Fixed Conversion Price and (ii) the Variable Conversion Price (as defined herein)
(subject, in each case, to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating
to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications,
extraordinary distributions and similar events)(also subject to adjustment as further described herein). The “Variable Conversion
Price” shall mean 65% multiplied by the Market Price (as defined herein) (representing a discount rate of 35%). “Market
Price” means the lowest one (1) Trading Price (as defined below) for the Common Stock during the fifteen (15) Trading Day
period ending on the last complete Trading Day prior to the Conversion Date. “Trading Price” means, for any security
as of any date, the lowest traded price on the Over-the- Counter Pink Marketplace, OTCQB, or applicable trading market (the “Trading
Market”) as reported by a reliable reporting service (“Reporting Service”) designated by the Holder (i.e. www.Nasdaq.com)
or, if the Trading Market is not the principal trading market for such security, on the principal securities exchange or trading
market where such security is listed or traded or, if the lowest intraday trading price of such security is not available in any
of the foregoing manners, the lowest intraday price of any market makers for such security that are quoted on the OTC Markets.
If the Trading Prices cannot be calculated for such security on such date in the manner provided above, the Trading Prices shall
be the fair market value as mutually determined by the Borrower and the holders of a majority in interest of the Notes being converted
for which the calculation of the Trading Prices are required in order to determine the Conversion Price of such Notes. “Trading
Day” shall mean any day on which the Common Stock is tradable for any period on the Trading Market, or on the principal
securities exchange or other securities market on which the Common Stock is then being traded. If at any time while this Note
is outstanding, an Event of Default (as defined herein) occurs, then an additional discount of 15% shall be factored into the
Variable Conversion Price until this Note is no longer outstanding (resulting in a discount rate of 50% assuming no other adjustments
are triggered hereunder). If at any time while this Note is outstanding, the Borrower’s Common Stock are not deliverable
via DWAC, an additional 10% discount shall be factored into the Variable Conversion Price until this Note is no longer outstanding
(resulting in a discount rate of 45% assuming no other adjustments are triggered hereunder).

 

Each
time, while this Note is outstanding, the Borrower enters into a Section 3(a)(9) transaction (including but not limited to the
issuance of new promissory notes or of a replacement promissory note), or Section 3(a)(10) transaction, in which any 3rd
party has the right to convert monies owed to that 3rd party (or receive shares pursuant to a settlement or otherwise)
at a discount to market greater than the Variable Conversion Price in effect at that time (prior to all other applicable adjustments
in the Note), then the Variable Conversion Price shall be automatically adjusted to such greater discount percentage (prior to
all applicable adjustments in this Note) until this Note is no longer outstanding. Each time, while this Note is outstanding,
the Borrower enters into a Section 3(a)(9) transaction (including but not limited to the issuance of new promissory notes or of
a replacement promissory note), or Section 3(a)(10) transaction, in which any i party has a look back period greater than the
look back period in effect under the Note at that time, then the Holder’s look back period shall automatically be adjusted
to such greater number of days until this Note is no longer outstanding. The adjustments in this paragraph, with respect to Section
3(a)(9) transactions, shall not take effect unless the holder of the note with more favorable terms is eligible to convert. The
Borrower shall give written notice to the Holder, with the adjusted Variable Conversion Price and/or adjusted look back period
(each adjustment that is applicable due to the triggering event), within one (1) business day of an event that requires any adjustment
described in the two immediately preceding sentences.

 

Holder
shall be entitled to deduct $500.00 from the conversion amount in each Notice of Conversion to cover Holder’s deposit fees
associated with each Notice of Conversion. All expenses incurred by Holder with respect to the Borrower’s transfer agent,
for the issuance of the Common Stock into which this Note is convertible into, shall immediately and automatically be added to
the balance of the Note at such time as the expenses are incurred by Holder.

 

     

     

    

 

If
at any time the Conversion Price as determined hereunder for any conversion would be less than the par value of the Common Stock,
then at the sole discretion of the Holder, the Conversion Price hereunder may equal such par value for such conversion and the
Conversion Amount for such conversion may be increased to include Additional Principal, where “Additional Principal”
means such additional amount to be added to the Conversion Amount to the extent necessary to cause the number of conversion shares
issuable upon such conversion to equal the same number of conversion shares as would have been issued had the Conversion Price
not been adjusted by the Holder to the par value price.

 

1.3          Authorized
Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized
and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock
upon the full conversion of this Note. The Borrower is required at all times to have authorized and reserved four (4) times the
number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the Notes in
effect from time to time)(the “Reserved Amount”). The Reserved Amount shall be increased from time to time in
accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be duly
and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change
to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at
the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be
a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding
Notes. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common
Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to
its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates
for shares of Common Stock in accordance with the terms and conditions of this Note.

 

If,
at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of
the Note.

 

1.4          Method
of Conversion.

 

(a)   
Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part, at any time
on or after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable
means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section
1.4(b), surrendering this Note at the principal office of the Borrower.

 

(b)  
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless
the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the
principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the
Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute
or discrepancy, such records of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest
error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this
Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and
deliver upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable
transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and
any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following
conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be
less than the amount stated on the face hereof.

 

     

     

    

 

(c)   
Payment of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other
than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other
securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such
shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Borrower the amount
of any such tax or shall have established to the satisfaction of the Borrower that such tax has been paid.

 

(d)  
Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail
(or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in
this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder
certificates for the Common Stock issuable upon such conversion within two (2) business days after such receipt (the “Deadline”)
(and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with
the terms hereof.

 

(e)   
Obligation of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall
be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the
amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults
on its obligations under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith
terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such
conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue
and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by
the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against
any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower
to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by
the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation
of the Borrower to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall
be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 6:00 p.m., New York, New York time,
on such date.

 

(f)   
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated
Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained
in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to 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 with
DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

 

     

     

    

 

(g)  
Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other
remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon
conversion of this Note is not delivered by the Deadline (other than a failure due to the circumstances described in Section 1.3
above, which failure shall be governed by such Section) the Borrower shall pay to the Holder $2,000 per day in cash, for each
day beyond the Deadline that the Borrower fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the
fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower
by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note,
in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall
be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a
valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right
are difficult if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained
in this Section 1.4(g) are justified.

 

1.5          Concerning
the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless (i) such
shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent shall
have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of
counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor
rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate” (as defined in Rule 144) of the
Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited
Investor. Except as otherwise provided (and subject to the removal provisions set forth below), until such time as the shares
of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to
Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, each
certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration
statement or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the
legend, shall bear a legend substantially in the following form, as appropriate:

 

“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 Borrower shall issue to the Holder a new certificate therefore free of any transfer
legend if (i) the Borrower or its transfer agent shall have received 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 Common Stock may be made
without registration under the Act, which opinion shall be accepted by the Borrower so that the sale or transfer is effected or
(ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder
under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction
as to the number of securities as of a particular date that can then be immediately sold. In the event that the Borrower does
not accept the opinion of counsel provided by the Holder with respect to the transfer of Securities pursuant to an exemption from
registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section
3.2 of the Note.

 

1.6          [Intentionally
Omitted].

 

1.7          Status
as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than the shares,
if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved Amount
or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights as a Holder
of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for such shares
of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure
by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received certificates
for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect to a conversion
of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common
Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note with respect to such unconverted
portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note
has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted. In all cases, the
Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive Conversion Default
Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any subsequent Conversion Default
and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3)
for the Borrower’s failure to convert this Note.

 

ARTICLE
II. CERTAIN COVENANTS

 

2.1          Distributions
on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s
written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property
or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional
shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect
of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a majority
of the Borrower’s disinterested directors.

 

2.2          Restriction
on Stock Repurchases. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the
Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other
securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the Borrower
or any warrants, rights or options to purchase or acquire any such shares.

 

     

     

    

 

ARTICLE
III. EVENTS OF DEFAULT

 

If
any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1          Failure
to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether
at maturity, upon acceleration or otherwise, and such breach continues for a period of five (5) days.

 

3.2          Conversion
and the Shares. The Borrower fails to reserve a sufficient amount of shares of common stock as required under the terms of
this Note (including Section 1.3 of this Note), fails to issue shares of Common Stock to the Holder (or announces or threatens
in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder
in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or
in certificated form) shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and
when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer
agent in transferring (or issuing) (electronically or in certificated form) shares of Common Stock to be issued to the Holder
upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer
agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw
any stop transfer instructions in respect thereof) on any shares of Common Stock issued to the Holder upon conversion of or otherwise
pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not
intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement,
statement or threat not to honor its obligations shall not be rescinded in writing) for two (2) business days after the Holder
shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer
agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a
balance owed by the Borrower to its transfer agent.

 

3.3          Breach
of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any
collateral documents and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from
the Holder.

 

3.4
        Breach of Representations and Warranties. Any representation or warranty of the
Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection
herewith, shall be false or misleading in any material respect when made and the breach of which has (or with the passage of
time will have) a material adverse effect on the rights of the Holder with respect to this Note.

 

3.5          Receiver
or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply
for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such
a receiver or trustee shall otherwise be appointed.

 

3.6          Judgments.
Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary of the
Borrower or any of its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a
period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably
withheld.

 

     

     

    

 

3.7          Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for
relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any
subsidiary of the Borrower.

 

3.8          Delisting
of Common Stock. The Borrower shall fail to maintain the listing or quotation of the Common Stock on the Trading Market or
an equivalent replacement exchange, the Nasdaq Global Market, the Nasdaq Capital Market, the New York Stock Exchange, or the NYSE
MKT.

 

3.9          Failure
to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act (including
but not limited to becoming delinquent in its filings), and/or the Borrower shall cease to be subject to the reporting requirements
of the Exchange Act.

 

3.10        Liquidation.
Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.11        Cessation
of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts
as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going
concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.12        Financial
Statement Restatement. The Borrower replaces its auditor, or any restatement of any financial statements filed by the Borrower
with the SEC for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding,
if the result of such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse
effect on the rights of the Holder with respect to this Note.

 

3.13        Replacement
of Transfer Agent. In the event that the Borrower replaces its transfer agent, and the Borrower fails to provide prior to
the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions (including but not limited to
the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to
Borrower and the Borrower.

 

3.14        Cross-Default.
Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or
default by the Borrower of any covenant or other term or condition contained in any of the other financial instrument,
including but not limited to all convertible promissory notes, currently issued, or hereafter issued, by the Borrower, to the
Holder or any other 3rd party (the “Other Agreements”), after the passage of all applicable notice and cure or
grace periods, shall, at the option of the Holder, be considered a default under this Note, in which event the Holder shall
be entitled to apply all rights and remedies of the Holder under the terms of this Note by reason of a default under said
Other Agreement or hereunder.

 

3.15        Inside
Information. Any attempt by the Borrower or its officers, directors, and/or affiliates to transmit, convey, disclose, or any
actual transmittal, conveyance, or disclosure by the Borrower or its officers, directors, and/or affiliates of, material non-public
information concerning the Borrower, to the Holder or its successors and assigns, which is not immediately cured by Borrower’s
filing of a Form 8-K pursuant to Regulation FD on that same date.

 

     

     

    

 

3.16        No
bid. At any time while this Note is outstanding, the lowest Trading Prices on the Trading Market or other applicable principal
trading market for the Common Stock is equal to or less than $0.0001.

 

3.17        Failure
to Repay Upon Qualified Offering. The Borrower fails to repay the Note, in its entirety, pursuant to the terms of the Note,
with funds received from its next completed offering (with the understanding that all related issuances of an offering shall be
aggregated for purposes of the calculation hereunder) of $1,000,000.00 or more (consummated on or after the Issue Date).

 

Upon
the occurrence of any Event of Default specified in Sections 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13,
3.14, 3.15, 3.16, and/or 3.17, exercisable through the delivery of written notice to the Borrower by such Holders (the “Default
Notice”), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction
of its obligations hereunder, an amount equal to 150% (EXCEPT THAT 150% SHALL BE REPLACED WITH 200% WITH RESPECT TO A DEFAULT
UNDER SECTION 3.2) multiplied by the then outstanding entire balance of the Note (including principal and accrued and unpaid
interest) plus Default Interest, if any, plus any amounts owed to the Holder pursuant to Sections 1.4(g) hereof
(collectively, in the aggregate of all of the above, the “Default Sum”), and all other amounts payable hereunder shall
immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together
with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise
all other rights and remedies available at law or in equity.

 

The
Holder shall have the right at any time to require the Borrower to issue the number of shares of Common Stock of the Borrower
equal to the Default Amount divided by the Conversion Price then in effect, subject to issuance in tranches due to the beneficial
ownership limitations contained in this Note.

 

ARTICLE
W. MISCELLANEOUS

 

4.1          Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative
to, and not exclusive of, any rights or remedies otherwise available.

 

4.2          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,
or (iv) transmitted by hand delivery, telegram, facsimile, or electronic mail 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, upon electronic mail 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 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 Borrower, to:

 

BLUE
SPHERE CORPORATION

301
McCullough Drive, 4th Floor

Charlotte,
NC 28226

e-mail:
info@bluespherecorporate.com

 

If
to the Holder:

 

MORNINGVIEW
FINANCIAL, LLC 

401
Park Ave. South, 10th

Floor
New York, NY 10016

e-mail:
max@morningviewfn.com 

 

4.3          Amendments.
This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The
term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument as
originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4          Assignability.
This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the
Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined
in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as
collateral in connection with a bona fide margin account or other lending arrangement.

 

4.5          Cost
of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

4.6          Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles
of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note
shall be brought only in the state and/or federal courts of New York, NY. The parties to this Note 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 Borrower and Holder 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
Note 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.

 

     

     

    

 

4.7          Certain
Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding principal amount
(or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such interest,
the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult
to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate
the Holder in part for loss of the opportunity to convert this Note and to earn a return from the sale of shares of Common Stock
acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant to this Note. The Borrower
and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to the possible loss to the
Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of Common Stock.

 

4.8          Remedies.
The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by
vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the
remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or
threatened breach by the Borrower of the provisions of this Note, that the Holder 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 Note and to enforce specifically the terms and provisions thereof,
without the necessity of showing economic loss and without any bond or other security being required.

 

4.9          Prepayment.
Notwithstanding anything to the contrary contained in this Note, the Borrower may prepay this Note, during the initial
30 calendar day period after the Issue Date, by making a payment to the Holder of an amount in cash equal to 110% multiplied
by the total amount outstanding under the Note. Notwithstanding anything to the contrary contained in this Note, the Borrower
may prepay this Note, beginning on the 31st calendar day after the Issue Date, and ending on the 90th calendar day after the
Issue Date, by making a payment to the Holder of an amount in cash equal to 120% multiplied by the total amount outstanding
under the Note. Notwithstanding anything to the contrary contained in this Note, the Borrower may prepay this Note, beginning
on the 91st calendar day after the Issue Date, and ending on the 179th calendar day after the Issue Date, by making a payment
to the Holder of an amount in cash equal to 130% multiplied by the total amount outstanding under the Note. The Borrower may
not prepay this Note after the 179th day after the issuance of this Note.

 

4.10        Usury.
To the extent it may lawfully do so, the Borrower hereby agrees not to insist upon or plead or in any manner whatsoever
claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted,
now or at any time hereafter in force, in connection with any action or proceeding that may be brought by the Holder in order
to enforce any right or remedy under this Note. Notwithstanding any provision to the contrary contained in this Note, it is
expressly agreed and provided that the total liability of the Borrower under this Note for payments which under the
applicable law are in the nature of interest shall not exceed the maximum lawful rate authorized under the law applicable to
this Note (the “Maximum Rate”), and, without limiting the foregoing, in no event shall any rate of interest or
default interest, or both of them, when aggregated with any other sums which under the law applicable to this Note in the
nature of interest that the Borrower may be obligated to pay under this Note exceed such Maximum Rate. It is agreed that if
the maximum contract rate of interest allowed by the law applicable to this Note is increased or decreased by statute or any
official governmental action subsequent to the Issue Date, the new maximum contract rate of interest allowed by law will be
the Maximum Rate applicable to this Note from the effective date thereof forward, unless such application is precluded by
applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Borrower to the
Holder with respect to indebtedness evidenced by this the Note, such excess shall be applied by the Holder to the unpaid
principal balance of any such indebtedness or be refunded to the Borrower, the manner of handling such excess to be at the
Holder’s election.

 

     

     

    

 

4.11        Section
3(a)(10) Transactions. If at any time while this Note is outstanding, the Borrower enters into a transaction structured in
accordance with, based upon, or related or pursuant to, in whole or in part, Section 3(a)(10) of the Securities Act (a “3(a)(10)
Transaction”), then a liquidated damages charge of 25% of the outstanding principal balance of this Note at that time, will
be assessed and will become immediately due and payable to the Holder, either in the form of cash payment or as an addition to
the balance of the Note, as determined by mutual agreement of the Borrower and Holder.

 

4.12        Reverse
Split Penalty. If at any time while this Note is outstanding, the Borrower effectuates a reverse split with respect to the
Common Stock, then a liquidated damages charge of 25% of the outstanding principal balance of this Note at that time, will be
assessed and will become immediately due and payable to the Holder, either in the form of cash payment or as an addition to the
balance of the Note, as determined by mutual agreement of the Borrower and Holder.

 

4.13        Right
of First Refusal. If at any time while this Note is outstanding, the Borrower has a bona fide offer of capital or financing
from any 3rd party, that the Borrower intends to act upon, then the Borrower must first offer such opportunity to the Holder to
provide such capital or financing to the Borrower on the same terms as each respective 3rd party’s terms. Should the Holder
be unwilling or unable to provide such capital or financing to the Borrower within 10 trading days from Holder’s receipt
of written notice of the offer (the “Offer Notice”) from the Borrower, then the Borrower may obtain such capital or
financing from that respective 3rd party upon the exact same terms and conditions offered by the Borrower to the Holder, which
transaction must be completed within 30 days after the date of the Offer Notice. If the Borrower does not receive the capital
or financing from the respective 3rd party within 30 days after the date of the respective Offer Notice, then the Borrower must
again offer the capital or financing opportunity to the Holder as described above, and the process detailed above shall b repeated.
The Offer Notice must be sent via electronic mail to max@momingviewfn.com. In addition, the Holder shall have the right, at any
time until the Note is satisfied in its entirety, and upon written notice to the Borrower, to purchase an additional convertible
promissory note from the Borrower, with the exact same terms and conditions as provided in this Note (with the understanding that
the Borrower shall execute the form of this Note and all related transaction documents with updated dates within three (3) business
days after the Holder exercises such right).

 

4.14        Terms
of Future Financings. So long as this Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries of
any security with any term more favorable to the holder of such security or with a term in favor of the holder of such security
that was not similarly provided to the Holder in this Note, then the Borrower shall notify the Holder of such additional or more
favorable term and such term, at Holder’s option, shall become a part of the transaction documents with the Holder. The
types of terms contained in another security that may be more favorable to the holder of such security include, but are not limited
to, terms addressing conversion discounts, prepayment rate, conversion lookback periods, interest rates, original issue discounts,
stock sale price, private placement price per share, and warrant coverage. With respect to promissory notes issued prior to the
Issue Date, this Section 4.14 shall only apply if the holder of the respective promissory note is eligible to convert pursuant
to the terms thereunder at any time after the Issue Date.

 

     

     

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this November 21, 2017.

 

BLUE
SPHERE CORPORATION

 

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

 

     

     

    

 

EXHIBIT
A -- NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert $_________________ principal amount of the Note (defined below) into that number of shares
of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of BLUE SPHERE
CORPORATION, a Nevada corporation (the “Borrower”) according to the conditions of the convertible note of the Borrower
dated as of November 21, 2017 (the “Note”), as of the date written below. No fee will be charged to the Holder for
any conversion, except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

		[
                            ]	The
Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned
or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).

 

Name
of DTC Prime:

Broker:
Account Number:

 

		[
                            ]	The
undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set
forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below
or, if additional space is necessary, on an attachment hereto:

 

Date
of Conversion: 

Applicable
Conversion Price:                                $___________  

Number
of Shares of Common Stock to be Issued

Pursuant
to Conversion of the Notes:

Amount
of Principal Balance Due remaining

Under
the Note after this conversion:

 

	 	MORNINGVIEW FINANCIAL, LLC
	 	 
	 	By:		 
	 	Name:		 
	 	Title:		 
	 	Date:Blue Sphere Corporation - 10-K

Exhibit 10.236

 

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

 

12%
CONVERTIBLE PROMISSORY NOTE

 

MATURITY
DATE OF NOVEMBER 22, 2018 *THE “MATURITY DATE”

 

$75,000
NOVEMBER 22, 2017 *THE “ISSUANCE DATE”

 

PRINCIPAL
AMOUNT: $75,000

 

PURCHASE
PRICE: $72,000

 

FOR
VALUE RECEIVED, Blue Sphere Corp., a Nevada Corporation (the “Company”) doing business in Charlotte, NC,
hereby promises to pay to the order of JSJ Investments Inc., an accredited investor and Texas Corporation, or its assigns (the
“Holder”), the principal amount of Seventy-Five Thousand Dollars ($75,000) (“Note”), on
demand of the Holder at any time on or after November 21, 2018 (the “Maturity Date”), and to pay interest on
the unpaid principal balance hereof at the rate of Twelve Percent (12%) per annum (the “Interest Rate”) commencing
on the date hereof (the “Issuance Date”).

 

The
Principal Amount is Seventy-Five Thousand Dollars ($75,000) and the consideration paid by the Holder is Seventy-Two Thousand Dollars
($72,000) (the “Consideration”); there exists an original issue discount of $3,000 (the “OlD”)).

 

		1.	Payments
                                         of Principal and Interest.

 

		a.	Pre-Payment
                                         and Payment of Principal and Interest. The Company may pay this Note in full, together
                                         with any and all accrued and unpaid interest, plus any applicable pre-payment premium
                                         set forth herein and subject to the terms of this Section 1.a, at any time on or prior
                                         to the date which occurs 180 days after the Issuance Date hereof (the “Prepayment
                                         Date”). In the event the Note is not prepaid in full on or before the Prepayment
                                         Date, it shall be deemed a “Pre-Payment Default” hereunder. Until the Ninetieth
                                         (90th) day after the Issuance Date the Company may pay the principal at a cash redemption
                                         premium of 115%, in addition to outstanding interest, without the Holder’s consent;
                                         from the 91st day to the One Hundred and Twentieth (120th) day after the Issuance Date,
                                         the Company may pay the principal at a cash redemption premium of 125%, in addition to
                                         outstanding interest, without the Holder’s consent; from the 121st day to the Prepayment
                                         Date, the Company may pay the principal at a cash redemption premium of 130%, in addition
                                         to outstanding interest, without the Holder’s consent. After the Prepayment Date
                                         up to the Maturity Date this Note shall have a cash redemption premium of 140% of the
                                         then outstanding principal amount of the Note, plus accrued interest and Default Interest,
                                         if any, which may only be paid by the Company upon Holder’s prior written consent.
                                         At any time on or after the Maturity Date, the Company may repay the then outstanding
                                         principal plus accrued interest and Default Interest (defined below), if any, to the
                                         Holder.

 

		b.	Demand
                                         of Repayment. The principal and interest balance of this Note shall be paid to the
                                         Holder hereof on demand by the Holder at any time on or after the Maturity Date. The
                                         Default Amount (defined herein), if applicable, shall be paid to Holder hereof on demand
                                         by the Holder at any time such Default Amount becomes due and payable to Holder.

 

		c.	Interest.
                                         This Note shall bear interest (“Interest”) at the rate of Twelve
                                         Percent (12%) per annum from the Issuance Date until the same is paid, or otherwise converted
                                         in accordance with Section 2 below, in full and the Holder, at the Holder’s sole
                                         discretion, may include any accrued but unpaid Interest in the Conversion Amount. Interest
                                         shall commence accruing on the Issuance Date, shall be computed on the basis of a 365-day
                                         year and the actual number of days elapsed and shall accrue daily and, after the Maturity
                                         Date, compound quarterly. Upon an Event of Default, as defined in Section 10 below, the
                                         Interest Rate shall increase to Eighteen Percent (18%) per annum for so long as the Event
                                         of Default is continuing (“Default Interest”).

 

    

     

    

 

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

 

		2.	Conversion
                                         of Note. At any time after the Pre-payment Date, the Conversion Amount (see Paragraph
                                         2(a)(i)) of this Note shall be convertible into shares of the Company’s common
                                         stock (the “Common Stock”) according to the terms and conditions set
                                         forth in this Paragraph 2.

 

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

 

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

 

		ii.	“Conversion
                                         Price” means a 35% discount to the lowest trading price during the previous
                                         fifteen (15) trading days to the date of a Conversion Notice.

 

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

 

		iv.	“Shares”
                                         means the Shares of the Common Stock of the Company into which any balance on this
                                         Note may be converted upon submission of a “Conversion Notice” to
                                         the Company substantially in the form attached hereto as Exhibit 1.

 

		b.	Holder’s
                                         Conversion Rights. At any time after the Pre-payment Date, the Holder shall be entitled
                                         to convert all of the outstanding and unpaid principal and accrued interest of this Note
                                         into fully paid and non-assessable shares of Common Stock in accordance with the stated
                                         Conversion Price. The Holder shall not be entitled to convert on a Conversion Date that
                                         amount of the Note in connection with that number of shares of Common Stock which would
                                         be in excess of the sum of the number of shares of Common Stock issuable upon the conversion
                                         of the Note with respect to which the determination of this provision is being made on
                                         a Conversion Date, which would result in beneficial ownership by the Holder and its affiliates
                                         of more than 4.99% of the outstanding shares of Common Stock of the Company on such Conversion
                                         Date. For the purposes of the provision to the immediately preceding sentence, beneficial
                                         ownership shall be determined in accordance with Section 13(d) of the Securities Exchange
                                         Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject to the foregoing, the
                                         Holder shall not be limited to aggregate conversions of 4.99% (“Conversion Limitation
                                         1”). The Holder shall have the authority to determine whether the restriction contained
                                         in this Section 2(b) will limit any conversion hereunder, and accordingly, the
                                         Holder may waive the conversion limitation described in this Section 2(b), in
                                         whole or in part, upon and effective after 61 days prior written notice to the Company
                                         to increase or decrease such percentage to any other amount as determined by Holder in
                                         its sole discretion (“Conversion Limitation 2”).

 

		c.	Fractional
                                         Shares. The Company shall not issue any fraction of a share of Common Stock upon
                                         any conversion; if such issuance would result in the issuance of a fraction of a share
                                         of Common Stock, the Company shall round such fraction of a share of Common Stock up
                                         to the nearest whole share except in the event that rounding up would violate the conversion
                                         limitation set forth in section 2(b) above.

 

		d.	Conversion
                                         Amount. The Conversion Amount shall be converted pursuant to Rule 144(b)(1)(ii) and
                                         Rule 144(d)(1)(ii) as promulgated by the Securities and Exchange Commission under the
                                         Securities Act of 1933, as amended, into unrestricted shares at the Conversion Price.

 

    

     

    

 

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

 

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

 

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

 

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

 

		iv.	Timely
                                         Response by Company. Upon receipt by Company of a Conversion Notice, Company shall
                                         respond within one business day to Holder confirming the details of the Conversion, and
                                         provide within two business days the Shares requested in the Conversion Notice.

 

		v.	Liquidated
                                         Damages for Delinquent Response. If the Company fails to deliver for whatever reason
                                         (including any neglect or failure by, e.g., the Company, its counsel or the transfer
                                         agent) to Holder the Shares as requested in a Conversion Notice within three (3) business
                                         days of the Conversion Date, the Company shall be deemed in “Default of Conversion.”
                                         Beginning on the fourth (4th) business day after the date of the Conversion
                                         Notice, after the Company is deemed in Default of Conversion, there shall accrue liquidated
                                         damages (the “Conversion Damages”) of $2,000 per day for each day after the
                                         third business day until delivery of the Shares is made, and such penalty will be added
                                         to the Note being converted (under the Company’s and Holder’s expectation
                                         and understanding that any penalty amounts will tack back to the Issuance Date of the
                                         Note). The Parties agree that, at the time of drafting of this Note, the Holder’s
                                         damages as to the delinquent response are incapable or difficult to estimate and that
                                         the liquidated damages called for is a reasonable forecast of just compensation.

 

		vi.	Liquidated
                                         Damages for Inability to Issue Shares. If the Company fails to deliver Shares requested
                                         by a Conversion Notice due to an exhaustion of authorized and issuable common stock such
                                         that the Company must increase the number of shares of authorized Common Stock before
                                         the Shares requested may be issued to the Holder, the discount set forth in the Conversion
                                         Price will be increased by 5 percentage points (i.e. from 40% to 45%) for the Conversion
                                         Notice in question and all future Conversion Notices until the outstanding principal
                                         and interest of the Note is converted or paid in full. These liquidated damages shall
                                         not render the penalties prescribed by Paragraph 2(e)(v) void, and shall be applied in
                                         conjunction with Paragraph 2(e)(v) unless otherwise agreed to in writing by the Holder.
                                         The Parties agree that, at the time of drafting of this Note, the Holder’s damages
                                         as to the inability to issue shares are incapable or difficult to estimate and that the
                                         liquidated damages called for is a reasonable forecast of just compensation.

 

		vii.	Rescindment
                                         of Conversion Notice. If: (i) the Company fails to respond to Holder within one business
                                         day from the date of delivery of a Conversion Notice confirming the details of the Conversion,
                                         (ii) the Company fails to provide the Shares requested in the Conversion Notice within
                                         three business days from the date of the delivery of the Conversion Notice, (iii) the
                                         Holder is unable to procure a legal opinion required to have the Shares issued unrestricted
                                         and/or deposited to sell for any reason related to the Company’s standing with
                                         the SEC or FINRA, or any action or inaction by the Company, (iv) the Holder is unable
                                         to deposit the Shares requested in the Conversion Notice for any reason related to the
                                         Company’s standing with the SEC or FINRA, or any action or inaction by the Company,
                                         (v) if the Holder is informed that the Company does not have the authorized and issuable
                                         Shares available to satisfy the Conversion, or (vi) if OTC Markets changes the Company’s
                                         designation to ‘Limited Information’ (Yield), ‘No Information’
                                         (Stop Sign), ‘Caveat Emptor’ (Skull and Crossbones), or ‘OTC’,
                                         ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign) on the day
                                         of or any day after the date of the Conversion Notice, the Holder maintains the option
                                         and sole discretion to rescind the Conversion Notice (“Rescindment”) by
                                         delivering a notice of rescindment to the Company in the same manner that a Conversion
                                         Notice is required to be delivered to the Company pursuant to the terms of this Note.

 

    

     

    

 

		viii.	Transfer
                                         Agent Fees and Legal Fees. The issuance of the certificates shall be without charge
                                         or expense to the Holder. The Company shall pay any and all Transfer Agent fees, legal
                                         fees, and advisory fees required for execution of this Note and processing of any Notice
                                         of Conversion, including but not limited to the cost of obtaining a legal opinion with
                                         regard to the Conversion. The Holder will deduct $2,000 from the principal payment of
                                         the Note solely to cover the cost of obtaining any and all legal opinions required to
                                         obtain the Shares requested in any given Conversion Notice. These fees do not make provision
                                         for or suffice to defray any legal fees incurred in collection or enforcement of the
                                         Note as described in Paragraph 13. All expenses incurred by Holder, for the issuance
                                         and clearing of the Common Stock into which this Note is convertible into, shall immediately
                                         and automatically be added to the balance of the Note at such time as the expenses are
                                         incurred by Holder.

 

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

 

		3.	Other
                                         Rights of Holder: Reorganization, Reclassification, Consolidation, Merger or Sale.
                                         Any recapitalization, reorganization, reclassification, consolidation, merger, sale of
                                         all or substantially all of the Company’s assets to another Person or other transaction
                                         which is effected in such a way that holders of Common Stock are entitled to receive
                                         (either directly or upon subsequent liquidation) stock, securities, cash or other assets
                                         with respect to or in exchange for Common Stock is referred to herein as “Organic
                                         Change.” Prior to the consummation of any (i) Organic Change or (ii) other
                                         Organic Change following which the Company is not a surviving entity, the Company will
                                         secure from the Person purchasing such assets or the successor resulting from such Organic
                                         Change (in each case, the “Acquiring Entity”) a written agreement
                                         (in form and substance reasonably satisfactory to the Holder) to deliver to Holder in
                                         exchange for this Note, a security of the Acquiring Entity evidenced by a written
                                         instrument substantially similar in form and substance to this Note, and reasonably satisfactory
                                         to the Holder. Prior to the consummation of any other Organic Change, the Company shall
                                         make appropriate provision (in form and substance reasonably satisfactory to the Holder)
                                         to ensure that the Holder will thereafter have the right to acquire and receive in lieu
                                         of or in addition to (as the case may be) the shares of Common Stock immediately theretofore
                                         acquirable and receivable upon the conversion of the Note, such shares of stock, securities,
                                         cash or other assets that would have been issued or payable in such Organic Change with
                                         respect to or in exchange for the number of shares of Common Stock which would have been
                                         acquirable and receivable upon the conversion of the Note as of the date of such Organic
                                         Change (without taking into account any limitations or restrictions on the convertibility
                                         of the Note set forth in Section 2(b) or otherwise). All provisions of this Note must
                                         be included to the satisfaction of Holder in any new Note created pursuant to this section.

 

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

 

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

 

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

 

    

     

    

 

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

 

		d.	Data
                                         Request Form. The Company hereby represents and warrants to Holder that all of the
                                         information furnished to Holder pursuant to the data request form (“DRF”)
                                         dated November 22, 2017 is true and correct in all material respects as of the date
                                         hereof.

 

		5.	Issuance
                                         of Common Stock Equivalents. If the Company, at any time after the Issuance Date,
                                         shall issue any securities convertible into or exchangeable for, directly or indirectly,
                                         Common Stock (“Convertible Securities”), other than the Note, or any
                                         rights or warrants or options to purchase any such Common Stock or Convertible Securities,
                                         shall be issued or sold (collectively, the “Common Stock Equivalents”)
                                         and the aggregate of the price per share for which additional Shares of Common Stock
                                         may be issuable thereafter pursuant to such Common Stock Equivalent, plus the consideration
                                         received by the Company for issuance of such Common Stock Equivalent divided by the number
                                         of shares of Common Stock issuable pursuant to such Common Stock Equivalent (the “Aggregate
                                         Per Common Share Price”) shall be less than the applicable Conversion Price
                                         then in effect, or if, after any such issuance of Common Stock Equivalents, the price
                                         per share for which additional Shares of Common Stock may be issuable thereafter is amended
                                         or adjusted, and such price as so amended shall make the Aggregate Per Share Common Price
                                         be less than the applicable Conversion Price in effect at the time of such amendment
                                         or adjustment, then the applicable Conversion Price upon each such issuance or amendment
                                         shall be reduced to the lower of: (i) the Conversion Price; or (ii) a twenty-five percent
                                         (25%) discount to the lowest Aggregate Per Common Share Price (whether or not such Common
                                         Stock Equivalents are actually then exercisable, convertible or exchangeable in whole
                                         or in part) as of the earlier of (A) the date on which the Company shall enter into a
                                         firm contract for the issuance of such Common Stock Equivalent, or (B) the date of actual
                                         issuance of such Common Stock Equivalent. No adjustment of the applicable Conversion
                                         Price shall be made under this Section 6 upon the issuance of any Convertible Security
                                         which is outstanding on the day immediately preceding the Issuance Date.

 

		6.	Reservation
                                         of Shares. The Company shall at all times, so long as any principal amount of the
                                         Note is outstanding, reserve and keep available out of its authorized and unissued shares
                                         of Common Stock, solely for the purpose of effecting the conversion of the Note, eight
                                         times the number of shares of Common Stock as shall at all times be sufficient to effect
                                         the conversion of all of the principal amount, plus Interest and Default Interest, if
                                         any, of the Note then outstanding (“Share Reserve”), unless the Holder
                                         stipulates otherwise in the “Irrevocable Letter of Instructions to the Transfer
                                         Agent.” So long as this Note is outstanding, upon written request of the Holder
                                         or via telephonic communication, the Company’s Transfer Agent shall furnish to
                                         the Holder the then-current number of common shares issued and outstanding, the then-current
                                         number of common shares authorized, the then-current number of unrestricted shares, and
                                         the then-current number of shares reserved for third parties.

 

		7.	Voting
                                         Rights. The Holder of this Note shall have no voting rights as a note holder, except
                                         as required by law, however, upon the conversion of any portion of this Note into Common
                                         Stock, Holder shall have the same voting rights as all other Common Stock holders with
                                         respect to such shares of Common Stock then owned by Holder.

 

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

 

		9.	Default
                                         and Remedies.

 

		a.	Event
                                         of Default. For purposes of this Note, an “Event of Default” shall
                                         occur upon:

 

		i.	the
                                         Company’s default in the payment of the outstanding principal, Interest or Default
                                         Interest of this Note when due, whether at Maturity, acceleration or otherwise;

 

		ii.	the
                                         occurrence of a Default of Conversion as set forth in Section 2(e)(v);

 

    

     

    

 

		iii.	the
                                         failure by the Company for ten (10) days after notice to it to comply with any material
                                         provision of this Note not included in this Section 10(a);

 

		iv.	the
                                         Company’s breach of any covenants, warranties, or representations made by the Company
                                         herein;

 

		v.	any
                                         of the information in the DRF is false or misleading in any material respect;

 

		vi.	the
                                         default by the Company in any Other Agreement entered into by and between the Company
                                         and Holder, for purposes hereof “Other Agreement” shall mean, collectively,
                                         all agreements and instruments between, among or by: (1) the Company, and, or for the
                                         benefit of, (2) the Holder and any affiliate of the Holder, including without limitation,
                                         promissory notes;

 

		vii.	the
                                         cessation of operations of the Company or a material subsidiary;

 

		viii.	the
                                         Company pursuant to or within the meaning of any Bankruptcy Law; (a) commences a voluntary
                                         case; (b) consents to the entry of an order for relief against it in an involuntary case;
                                         (c) consents to the appointment of a Custodian of it or for all or substantially all
                                         of its property; (d) makes a general assignment for the benefit of its creditors; or
                                         (e) admits in writing that it is generally unable to pay its debts as the same become
                                         due;

 

		ix.	court
                                         of competent jurisdiction entering an order or decree under any Bankruptcy Law that:
                                         (a) is for relief against the Company in an involuntary case; (b) appoints a Custodian
                                         of the Company or for all or substantially all of its property; or (c) orders the liquidation
                                         of the Company or any subsidiary, and the order or decree remains unstayed and in effect
                                         for thirty (30) days;

 

		x.	the
                                         Company files a Form 15 with the SEC;

 

		xi.	the
                                         Company’s failure to timely file all reports required to be filed by it with the
                                         Securities and Exchange Commission;

 

		xii.	the
                                         Company’s failure to timely file all reports required to be filed by it with OTC
                                         Markets to remain a “Current Information” designated company;

 

		xiii.	the
                                         Company’s Common Stock is reported as “No Inside” by OTC Markets at
                                         any time while any principal, Interest or Default Interest under the Note remains outstanding;

 

		xiv.	the
                                         Company’s failure to maintain the required Share Reserve pursuant to the terms
                                         of the Irrevocable Letter of Instructions to the Transfer Agent;

 

		xv.	the
                                         Company directs its transfer agent not to transfer, or delays, impairs, or hinders its
                                         transfer agent in transferring or issuing (electronically or in certificated form) any
                                         certificate for Shares of Common Stock to be issued to the Holder upon conversion of
                                         or otherwise pursuant to this Note as and when required by this Note, or fails to remove
                                         (or directs its transfer agent not to remove or impairs, delays and/or hinders its transfer
                                         agent from removing) any restrictive legend (or to withdraw and stop transfer instructions)
                                         on any certificate for any Shares of Common Stock issued to the Holder upon conversion
                                         of or otherwise pursuant to this Note as and when required by this Note (or makes any
                                         written announcement, statement or threat that it does not intend to honor its obligations
                                         pursuant to a Conversion Notice submitted by the Holder) and any such failure shall continue
                                         uncured for three (3) Business Days after the Conversion Notice has been delivered to
                                         the Company by Holder;

 

		xvi.	the
                                         Company’s failure to remain current in its billing obligations with its transfer
                                         agent and such delinquency causes the transfer agent to refuse to issue Shares to Holder
                                         pursuant to a Conversion Notice;

 

		xvii.	the
                                         Company effectuates a reverse split of its Common Stock and fails to provide twenty (20)
                                         days prior written notice to Holder of its intention to do so; or

 

		xviii.	OTC
                                         Markets changes the Company’s designation to ‘No Information’ (Stop
                                         Sign), ‘Caveat Emptor’ (Skull and Crossbones), or ‘OTC’, ‘Other
                                         OTC’ or ‘Grey Market’ (Exclamation Mark Sign).

 

    

     

    

 

		xix.	“Change
                                         of Control Transaction” means the occurrence after the date hereof of any of (a)
                                         an acquisition after the date hereof by an individual or legal entity or “group”
                                         (as described in Rule 13d-5(b)(1) promulgated under the Securities Exchange Act of 1934)
                                         of effective control (whether through legal or beneficial ownership of capital stock
                                         of the Company, by contract or otherwise) of in excess of 40% of the voting securities
                                         of the Company, (b) the Company merges into or consolidates with any other Person, as
                                         that term is defined in the Securities Act of 1933, as amended, or any Person merges
                                         into or consolidates with the Company and, after giving effect to such transaction, the
                                         stockholders of the Company immediately prior to such transaction own less than 60% of
                                         the aggregate voting power of the Company or the successor entity of such transaction,
                                         (c) the Company sells or transfers all or substantially all of its assets to another
                                         Person and the stockholders of the Company immediately prior to such transaction own
                                         less than 60% of the aggregate voting power of the acquiring entity immediately after
                                         the transaction, (d) a replacement at one time or within a three year period of more
                                         than one-half of the members of the Board of Directors which is not approved by a majority
                                         of those individuals who are members of the Board of Directors on the Issuance Date (or
                                         by those individuals who are serving as members of the Board of Directors on any date
                                         whose nomination to the Board of Directors was approved by a majority of the members
                                         of the Board of Directors who are members on the date hereof), or (e) the execution by
                                         the Company of an agreement to which the Company is a party or by which it is bound.

 

		xx.	Altering
                                         the conversion terms of any notes that are currently outstanding.

 

The
Term “Bankruptcy Law” means Title 11, U.S. Code, or any similar Federal or State Law for the relief of debtors.
The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy
Law.

 

		b.	Remedies.
                                         If an Event of Default occurs, the Holder may in its sole discretion determine to
                                         request immediate repayment of all or any portion of the Note that remains outstanding;
                                         at such time the Company will be required to pay the Holder the Default Amount (defined
                                         herein) in cash. For purposes hereof, the “Default Amount” shall mean:
                                         the product of (A) the then outstanding principal amount of the Note, plus accrued Interest
                                         and Default Interest, divided by (B) the Conversion Price as determined on the Issuance
                                         Date, multiplied by (C) the highest price at which the Common Stock traded at any time
                                         between the Issuance Date and the date of the Event of Default. If the Company fails
                                         to pay the Default Amount within five (5) Business Days of written notice that such amount
                                         is due and payable, then Holder shall have the right at any time, so long as the Company
                                         remains in default (and so long and to the extent there are a sufficient number of authorized
                                         but unissued shares), to require the Company, upon written notice, to immediately issue,
                                         in lieu of the Default Amount, the number of shares of Common Stock of the Company equal
                                         to the Default Amount divided by the Conversion Price then in effect.

 

		10.	Vote
                                         to Change the Terms of this Note. This Note and any provision hereof may only be
                                         amended by an instrument in writing signed by the Company and the Holder.

 

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

 

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

 

		13.	Cancellation.
                                         After all principal, accrued Interest and Default Interest, if any, at any time owed
                                         on this Note has been paid in full or otherwise converted in full, this Note shall automatically
                                         be deemed canceled, shall be surrendered to the Company for cancellation and shall not
                                         be reissued.

 

    

     

    

 

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

 

		15.	Governing
                                         Law. This Note shall be construed and enforced in accordance with, and all questions
                                         concerning the construction, validity, interpretation and performance of this Note shall
                                         be governed by, the laws of the State of Texas, without giving effect to provisions thereof
                                         regarding conflict of laws. Each party hereby irrevocably submits to the non-exclusive
                                         jurisdiction of the state and federal courts sitting in Texas for the adjudication of
                                         any dispute hereunder or in connection herewith or with any transaction contemplated
                                         hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in
                                         any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
                                         of any such court, that such suit, action or proceeding is brought in an inconvenient
                                         forum or that the venue of such suit, action or proceeding is improper. Each party hereby
                                         irrevocably waives personal service of process and consents to process being served in
                                         any such suit, action or proceeding by sending, through certified mail or overnight courier,
                                         a copy thereof to such party at the address for such notices to it under this Agreement
                                         and agrees that such service shall constitute good and sufficient service of process
                                         and notice thereof. Nothing contained herein shall be deemed to limit in any way any
                                         right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
                                         WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
                                         OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR
                                         ANY TRANSACTION CONTEMPLATED HEREBY.

 

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

 

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

 

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

 

		19.	Partial
                                         Payment. In the event of partial payment by the Holder, the principal sum due to
                                         the Holder shall be prorated based on the consideration actually paid by the Holder such
                                         that the Company is only required to repay the amount funded and the Company is not required
                                         to repay any unfunded portion of this Note, with the exception of any OID contemplated
                                         herein.

 

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

 

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

 

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

 

    

     

    

 

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

 

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

 

		25.	Successors
                                         and Assigns. This Agreement shall be binding upon all successors and assigns hereto.

 

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

 

Blue
Sphere Corporation

 

	/s/
    Shlomo Palas	 
	Shlomo Palas	 
	CEO	 

 

JSJ
Investments Inc.

 

	/s/
    Sameer Hirji	 

Sameer
Hirji, President

JSJ
Investments Inc.

10830
North Central Expressway, Suite 152

Dallas
TX 75231

888-503-2599

 

    

     

    

 

Exhibit
1

 

Conversion
Notice

 

Reference
is made to the 12% Convertible Note issued by Blue Sphere Corp. (the “Note”), dated November 22, 2017 in the principal
amount of $75,000 with 12% interest. This note currently holds a principal balance of $75,000 The features of conversion stipulate
a Conversion Price equal to a 35% discount to the lowest trading price during the previous fifteen (15) trading days to the date
of a Conversion Notice.

 

In
accordance with and pursuant to the Note, the undersigned hereby elects to convert $________ of the principal/interest

 

balance
of the Note, indicated below into shares of Common Stock (the “Common Stock”), of the Company, by tendering the Note
specified as of the date specified below.

 

Date
of Conversion:

 

Please
confirm the following information:

 

Conversion
Amount: $

 

Conversion
Price: $ ______________________ % discount from $

 

Number
of Common Stock to be issued:

 

Current
Issued/Outstanding:

 

If
the Issuer is DWAC eligible, please issue the Common Stock into which the Note is being converted in the name of the Holder of
the Note and transfer the shares electronically to:

 

[BROKER
INFORMATION]

 

Holder
Authorization:

 

JSJ
Investments Inc.

 

10830
North Central Expressway, Suite 152 *Do not send certificates to this address

 

Dallas,
TX 75231

 

888-503-2599

 

Tax
ID: 20-2122354

 

Sameer
Hirji, President

 

[DATE]

 

    

     

    

 

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

 

Signature:

 

	/s/
    Shlomo Palas	 

Shlomo
Palas

CEO

Blue
Sphere Corp.

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