Document:

Blue Sphere Corporation S-1/A 

 

Exhibit 10.70

 

SECURITIES
PURCHASE AGREEMENT

 

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

 

 WHEREAS, the Company
is offering a minimum of $500,000 (the “Minimum Offering Amount”), and a maximum of up to $5,000,000 (the “Maximum
Offering Amount”), of shares (the “Shares”) of the Company’s common stock, par value $0.001
per share (the “Common Stock”), pre-funded warrants (the “Pre-Funded Warrants”) with the
right to purchase one share of Common Stock at an exercise price of $0.01 per share, and warrants (the “Warrants”
and, together with the Shares and the Pre-Funded Warrants, the “Securities”) with the right to purchase one
share of Common Stock at an exercise price of $3.30 per share (the “Placement”); 

 

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

 

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

 

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

 

ARTICLE I.

PURCHASE AND SALE

 

1.1          Closing.

 

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

 

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

 

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

 

1.2          Deliveries.

 

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

 

(i)          this
Agreement duly executed by the Company;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.3          Closing
Conditions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE II.

REPRESENTATIONS AND WARRANTIES

 

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

 

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

 

As used
in this Section and elsewhere in this Agreement:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	10 

     

    

 

(y)          [Reserved].

 

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

 

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

 

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

 

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

 

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

 

    	11 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	12 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	13 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	14 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	15 

     

    

 

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

 

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

 

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

 

ARTICLE III.

COVENANTS AND OTHER AGREEMENTS OF THE COMPANY

 

3.1          The
Company covenants and agrees as follows:

 

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

 

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

 

    	16 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

     17

     

    

 

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

 

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

 

ARTICLE IV.

INDEMNIFICATION

 

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

 

     18

     

    

 

ARTICLE V.

MISCELLANEOUS

 

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

 

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

 

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

 

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

 

     19

     

    

 

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

 

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

 

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

 

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

 

     20

     

    

 

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

 

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

 

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

 

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

 

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

 

     21

     

    

 

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

 

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

 

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

 

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

 

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

 

     22

     

    

 

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

 

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

 

(Signature Pages Follow)

 

     23

     

    

 

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

 

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

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

     24

     

    

 

[PURCHASER SIGNATURE PAGES TO SECURITIES
PURCHASE AGREEMENT]

 

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

 

Name of Purchaser: ________________________________________________________

 

Signature of Authorized Signatory
of Purchaser: _________________________________

 

Name of Authorized Signatory: _______________________________________________

 

Title of Authorized Signatory: ________________________________________________

 

Email Address of Authorized Signatory:_________________________________________

 

Facsimile Number of Authorized Signatory: __________________________________________

 

Address for Notice to Purchaser:

 

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

 

Subscription Amount for Shares: $_________________

 

Shares: _________________

 

Warrant Shares: __________________

 

Subscription Amount for Pre-Funded Warrants: $_________________

 

Shares: _________________

 

Warrant Shares: __________________

 

EIN Number: _______________________

 

[SIGNATURE PAGES CONTINUE]

 

     25

     

    

 

Schedule
i

 

Other Written Communications

 

None.

 

     26

     

    

 

SCHEDULE II

 

Lock-up Signatories

 

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

 

     27

     

    

 

Schedule (aa)

 

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

 

     28Blue Sphere Corporation S-1/A 

 

Exhibit 10.71

 

ESCROW
AGREEMENT

 

 THIS
ESCROW AGREEMENT, dated as of August [ ], 2017 (“Escrow Agreement”), is by and between Blue Sphere Corporation,
a U.S. corporation (“Issuer”), Maxim Group LLC, a U.S. limited liability company (“Placement Agent”),and
U.S. BANK NATIONAL ASSOCIATION, a national banking association, as Escrow Agent hereunder (“Escrow Agent”). 

 

BACKGROUND

 

A.           Issuer
has engaged Placement Agent as its agent to sell shares of common stock and warrants to purchase shares of its common stock (such
common stock and warrants collectively, the “Securities”) on a “best efforts” basis, pursuant to an offering
document (the “Offering Document”).

 

B.            In
accordance with the Offering Document, subscribers to the Securities (the “Subscribers” and individually, a “Subscriber”)
will be required to submit full payment for their respective investments at the time they enter into subscription agreements.

 

C.            In
accordance with the Offering Document, all payments received by Placement Agent in connection with subscriptions for Securities
shall be promptly forwarded to Escrow Agent, and Escrow Agent has agreed to accept, hold, and disburse such funds deposited with
it and the earnings thereon in accordance with the terms of this Escrow Agreement.

 

D.            In
order to establish the escrow of funds and to effect the provisions of the Offering Document, the parties hereto have entered
into this Escrow Agreement.

 

STATEMENT
OF AGREEMENT

 

NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, for themselves, their successors and assigns, hereby agree as follows:

 

1.            Definitions.
In addition to the terms defined above, the following terms shall have the following meanings when used herein:

 

“Cash
Investment” shall mean the number of Securities to be purchased by any Subscriber multiplied by the offering price per Security
as set forth in the Offering Document.

 

“Cash
Investment Instrument” shall mean a check, money order or similar instrument, made payable to or endorsed to Escrow Agent
in the manner described in Section 3(c) hereof, in full payment for the Securities to be purchased by any Subscriber.

 

     

     

    

 

“Escrow
Funds” shall mean the funds deposited with the Escrow Agent pursuant to this Escrow Agreement, together with any interest
and other income thereon.

 

“Expiration
Date” means the date so designated on Exhibit A.

 

“Pro
Rata Basis,” with respect to the allocation among Subscribers of interest and other earnings held in the Escrow Funds, shall
mean, for each Subscriber, the Subscriber’s Cash Investment multiplied by the number of days the Cash Investment of such
Subscriber was held in interest-bearing investments pursuant to Section 6 hereof, multiplied by the average yield earned
on the Escrow Funds during such period of days.

 

“Subscription
Accounting” shall mean an accounting of all subscriptions for Securities received and accepted by Placement Agent as of
the date of such accounting, indicating for each subscription the Subscriber’s name, social security number and address,
the number and total purchase price of subscribed Securities, the date of receipt by Placement Agent of the Cash Investment Instrument,
and notations of any nonpayment of the Cash Investment Instrument submitted with such subscription, any withdrawal of such subscription
by the Subscriber, any rejection of such subscription by Placement Agent, or other termination, for whatever reason, of such subscription.

 

2.            Appointment
of and Acceptance by Escrow Agent. Issuer and Placement Agent hereby appoint Escrow Agent to serve as escrow agent hereunder,
and Escrow Agent hereby accepts such appointment in accordance with the terms of this Escrow Agreement.

 

3.
           Deposits into Escrow.

 

a.
Upon receipt by Placement Agent of any Cash Investment Instrument for the purchase of Securities, Placement Agent shall forward
to Escrow Agent, by 12:00 noon on the next business day, the Cash Investment Instrument for deposit into the escrow account of
the Escrow Agent described on Exhibit A hereto.

 

Each
such deposit shall be accompanied by appropriate subscription information, a Subscription Accounting, and instructions regarding
the investment of such deposited funds in accordance with Section 6 hereof.

 

ALL
FUNDS SO DEPOSITED SHALL REMAIN THE PROPERTY OF THE SUBSCRIBERS ACCORDING TO THEIR RESPECTIVE INTERESTS AND SHALL NOT BE SUBJECT
TO ANY LIEN OR CHARGE BY ESCROW AGENT OR BY JUDGMENT OR CREDITORS’ CLAIMS AGAINST ISSUER UNTIL RELEASED OR ELIGIBLE TO BE
RELEASED TO ISSUER IN ACCORDANCE WITH SECTION 4(a) HEREOF.

 

    -2- 

     

    

 

b.       Placement
Agent and Issuer understand and agree that all Cash Investment Instruments received by Escrow Agent hereunder are subject to collection
requirements of presentment and final payment, and that the funds represented thereby cannot be drawn upon or disbursed until
such time as final payment has been made and is no longer subject to dishonor. Upon receipt, Escrow Agent shall process each Cash
Investment Instrument for collection, and the proceeds thereof shall be held as part of the Escrow Funds until disbursed in accordance
with Section 4 hereof. If, upon presentment for payment, any Cash Investment Instrument is dishonored, Escrow Agent’s
sole obligation shall be to notify Placement Agent of such dishonor and to return such Cash Investment Instrument to Placement
Agent. Notwithstanding the foregoing, if for any reason any Cash Investment Instrument is uncollectible after payment or disbursement
of the funds represented thereby has been made by Escrow Agent to Issuer, Issuer shall immediately reimburse Escrow Agent upon
receipt from Escrow Agent of written notice thereof.

 

Upon
receipt of any Cash Investment Instrument that represents payment of an amount less than or greater than the Cash Investment,
Escrow Agent’s sole obligation shall be to notify Issuer and Placement Agent of such fact and to return such Cash Investment
Instrument to Placement Agent.

 

c.       All
Cash Investment Instruments shall be made payable to the order of, or endorsed to the order of, “U.S. Bank National Association.
- Escrow Account – Blue Sphere Corporation,” and Escrow Agent shall not be obligated to accept, or present for payment,
any Cash Investment Instrument that is not payable or endorsed in that manner.

 

4.            Disbursements
of Escrow Funds.

 

a.            Disbursement
of Escrow Funds. Subject to the provisions of Section 10 hereof, Escrow Agent shall promptly pay to Issuer the liquidated
value of the Escrow Funds, by certified or bank check or by wire transfer following receipt of written instructions signed by
both the Issuer and the Placement Agent, which instructions shall include Issuer’s and Placement Agent’s certification
that (i) all conditions necessary to the disbursement of the funds to the Issuer under the Offering Document have been satisfied;
and (ii) neither Issuer nor Placement Agent has received any notice from any court, regulatory agency or other tribunal or administrative
body having jurisdiction with respect to the Offering Document or subscriptions referred to herein that a stop or similar order
has been issued or threatened as of the date of such certification. Escrow Agent shall pay to Issuer any additional funds received
with respect to the Securities, by certified or bank check or wire transfer promptly after receipt of appropriate written instructions
signed by both the Issuer and the Placement Agent.

 

b.
          Rejection of Any Subscription or Termination of the Offering.
No later than five (5) business days after receipt by Escrow Agent of written notice (i) from Issuer or Placement Agent that Placement
Agent intends to reject a Subscriber’s subscription, (ii) from Issuer or Placement Agent that there will be no closing of
the sale of Securities to Subscribers or (iii) from Issuer, Placement Agent, the Securities and Exchange Commission or any other
federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and has
remained in effect for at least twenty (20) days, Escrow Agent shall pay to the applicable Subscriber(s), by certified or bank
check and by first-class mail, the amount of the Cash Investment paid by each Subscriber, and shall pay all interest income on
the Escrow Funds in the manner set forth on Exhibit A hereto.

 

    -3- 

     

    

 

5.
           Suspension of Performance or Disbursement Into Court.
If, at any time, (i) there shall exist any dispute between Placement Agent, Issuer, Escrow Agent, any Subscriber or any other
person with respect to the holding or disposition of all or any portion of the Escrow Funds or any other obligations of Escrow
Agent hereunder, or (ii) if at any time Escrow Agent is unable to determine, to Escrow Agent’s sole satisfaction, the proper
disposition of all or any portion of the Escrow Funds or Escrow Agent’s proper actions with respect to its obligations hereunder,
or (iii) if Placement Agent and Issuer have not within 30 days of the furnishing by Escrow Agent of a notice of resignation pursuant
to Section 7 hereof appointed a successor Escrow Agent to act hereunder, then Escrow Agent may, in its sole discretion,
take either or both of the following actions:

 

a.       suspend
the performance of any of its obligations (including without limitation any disbursement obligations) under this Escrow Agreement
until such dispute or uncertainty shall be resolved to the sole satisfaction of Escrow Agent or until a successor Escrow Agent
shall have been appointed (as the case may be); and/or

 

b.       petition
(by means of an interpleader action or any other appropriate method) any court of competent jurisdiction in any venue convenient
to Escrow Agent, for instructions with respect to such dispute or uncertainty, and to the extent required or permitted by law,
pay into such court all funds held by it in the Escrow Funds for holding and disposition in accordance with the instructions of
such court.

 

Escrow
Agent shall have no liability to Placement Agent, Issuer, any Subscriber or any other person with respect to any such suspension
of performance or disbursement into court, specifically including any liability or claimed liability that may arise, or be alleged
to have arisen, out of or as a result of any delay in the disbursement of the Escrow Funds or any delay in or with respect to
any other action required or requested of Escrow Agent.

 

 6.       Investment
of Funds. The Escrow Agent is herein directed and instructed to invest and reinvest the Escrow Funds in the U.S.
Bank Money Market Deposit Account, as described in Exhibit B hereto. The parties hereto acknowledge that they have discussed
the investment and are in agreement as to the selected investment. 

 

    -4- 

     

    

 

 With
respect to any Escrow Funds received by Escrow Agent after ten o’clock, a.m., New York, New York, time, Escrow Agent shall
not be required to invest such funds or to effect any investment instruction until the next day upon which banks in New York,
New York are open for business. 

 

7.            Resignation
or Removal of Escrow Agent. Escrow Agent may resign and be discharged from the performance of its duties hereunder at any
time by giving ten (10) days prior written notice to the Placement Agent and the Issuer specifying a date when such resignation
shall take effect and after such specified date, notwithstanding any other provision of this Agreement, Escrow Agent’s sole
obligation will be to hold the Escrow Funds pending appointment of a successor Escrow Agent. Similarly, the Issuer may remove
and discharge Escrow Agent from its duties hereunder by giving Escrow Agent no fewer than five (5) days’ prior written notice
thereof. Upon any such notice of resignation or removal, the Placement Agent and Issuer jointly shall appoint a successor Escrow
Agent hereunder prior to the effective date of such resignation. The retiring Escrow Agent shall transmit all records pertaining
to the Escrow Funds and shall pay all Escrow Funds to the successor Escrow Agent, after making copies of such records as the retiring
Escrow Agent deems advisable and after payment by Issuer or deduction from Escrow Funds (to the extent of Issuer’s rights
therein) of all fees and expenses (including court costs and attorneys’ fees) payable to, incurred by, or expected to be
incurred by the retiring Escrow Agent in connection with the performance of its duties and the exercise of its rights hereunder.
After any retiring Escrow Agent’s resignation, the provisions of this Escrow Agreement shall inure to its benefit as to
any actions taken or omitted to be taken by it while it was Escrow Agent under this Escrow Agreement. Any corporation or association
into which the Escrow Agent may be merged or converted or with which it may be consolidated, or any corporation or association
to which all or substantially all of the escrow business of the Escrow Agent’s corporate trust line of business may be transferred,
shall be the Escrow Agent under this Escrow Agreement without further act.

 

    -5- 

     

    

 

8.            Liability
of Escrow Agent.

 

a.       The
Escrow Agent undertakes to perform only such duties as are expressly set forth herein and no duties shall be implied. The Escrow
Agent has no fiduciary or discretionary duties of any kind. The Escrow Agent shall have no liability under and no duty to inquire
as to the provisions of any agreement other than this Escrow Agreement, including without limitation the Offering Document, even
if referenced herein and whether or not a copy of such document has been provided to Escrow Agent. The Escrow Agent shall not
be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines
that the Escrow Agent’s gross negligence or willful misconduct was the primary cause of any loss to the Issuer or Placement
Agent. Escrow Agent’s sole responsibility shall be for the safekeeping and disbursement of the Escrow Funds in accordance
with the terms of this Escrow Agreement. Escrow Agent shall have no implied duties or obligations and shall not be charged with
knowledge or notice of any fact or circumstance not specifically set forth herein. Escrow Agent may rely upon any notice, instruction,
request or other instrument, not only as to its due execution, validity and effectiveness, but also as to the truth and accuracy
of any information contained therein, which Escrow Agent shall believe to be genuine and to have been signed or presented by the
person or parties purporting to sign the same. In no event shall Escrow Agent be liable for incidental, indirect, special, consequential
or punitive damages (including, but not limited to lost profits), even if the Escrow Agent has been advised of the likelihood
of such loss or damage and regardless of the form of action. Escrow Agent shall not be obligated to take any legal action or commence
any proceeding in connection with the Escrow Funds, any account in which Escrow Funds are deposited, this Escrow Agreement or
the Offering Document, or to appear in, prosecute or defend any such legal action or proceeding or to take any other action that
in Escrow Agent’s reasonable judgment may expose it to potential expense or liability. Without limiting the generality of
the foregoing, Escrow Agent shall not be responsible for or required to enforce any of the terms or conditions of any subscription
agreement with any Subscriber or any other agreement between Issuer, Placement Agent and/or any Subscriber. Escrow Agent shall
not be responsible or liable in any manner for the performance by Issuer or any Subscriber of their respective obligations under
any subscription agreement nor shall Escrow Agent be responsible or liable in any manner for the failure of Issuer, Placement
Agent or any third party (including any Subscriber) to honor any of the provisions of this Escrow Agreement. Escrow Agent may
consult legal counsel selected by it in the event of any dispute or question as to the construction of any of the provisions hereof
or of any other agreement or of its duties hereunder, or relating to any dispute involving any party hereto, and shall incur no
liability and shall be fully indemnified from any liability whatsoever in acting in accordance with the opinion or instruction
of such counsel. Issuer shall promptly pay, upon demand, the reasonable fees and expenses of any such counsel.

 

b.       The
Escrow Agent is authorized, in its sole discretion, to comply with orders issued or process entered by any court with respect
to the Escrow Funds, without determination by the Escrow Agent of such court’s jurisdiction in the matter. If any portion
of the Escrow Funds is at any time attached, garnished or levied upon under any court order, or in case the payment, assignment,
transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment
or decree shall be made or entered by any court affecting such property or any part thereof, then and in any such event, the Escrow
Agent is authorized, in its sole discretion, to rely upon and comply with any such order, writ, judgment or decree which it is
advised by legal counsel selected by it is binding upon it without the need for appeal or other action; and if the Escrow Agent
complies with any such order, writ, judgment or decree, it shall not be liable to any of the parties hereto or to any other person
or entity by reason of such compliance even though such order, writ, judgment or decree may be subsequently reversed, modified,
annulled, set aside or vacated.

 

    -6- 

     

    

 

9.            Indemnification
of Escrow Agent. From and at all times after the date of this Escrow Agreement, Issuershall, to the fullest extent permitted
by law, defend, indemnify and hold harmless the Escrow Agent and each director, officer, employee, attorney and affiliate of Escrow
Agent (collectively, the “Indemnified Parties”) against any and all actions, claims (whether or not valid), losses,
damages, liabilities, costs and expenses of any kind or nature whatsoever (including without limitation reasonable attorneys’
fees, costs and expenses) incurred by or asserted against any of the Indemnified Parties from and after the date hereof, whether
direct, indirect or consequential, as a result of or arising from or in any way relating to any claim, demand, suit, action or
proceeding (including any inquiry or investigation) by any person, including without limitation Issuer, whether threatened or
initiated, asserting a claim for any legal or equitable remedy against any person under any statute or regulation, including,
but not limited to, any federal or state securities laws, or under any common law or equitable cause or otherwise, arising from
or in connection with the negotiation, preparation, execution, performance or failure of performance of this Escrow Agreement
or any transactions contemplated herein, whether or not any such Indemnified Party is a party to any such action, proceeding,
suit or the target of any such inquiry or investigation; provided, however, that no Indemnified Party shall have the right to
be indemnified hereunder for any liability finally determined by a court of competent jurisdiction, subject to no further appeal,
to have resulted solely from the gross negligence or willful misconduct of such Indemnified Party. Each Indemnified Party shall,
in its sole discretion, have the right to select and employ separate counsel with respect to any action or claim brought or asserted
against it, and the reasonable fees of such counsel shall be paid upon demand by the Issuer. Issuer further agrees to indemnify
each Indemnified Party for all costs, including without limitation reasonable attorney’s fees, incurred by such Indemnified
Party in connection with the enforcement of Issuer’s indemnification obligations hereunder. The obligations of Issuer under
this Section 9 shall survive any termination of this Escrow Agreement and the resignation or removal of Escrow Agent.

 

10.          Compensation
to Escrow Agent.

 

a.       Fees
and Expenses. Issuer agrees to compensate Escrow Agent for its services hereunder in accordance with Exhibit A attached
hereto and, in addition, shall reimburse Escrow Agent for all of its reasonable and documented out-of-pocket expenses, including
reasonable attorneys’ fees, travel expenses, telephone and facsimile transmission costs, postage (including express mail
and overnight delivery charges), copying charges and the like. The additional provisions and information set forth on Exhibit
A are hereby incorporated by this reference, and form a part of this Escrow Agreement. All of the compensation and reimbursement
obligations set forth in this Section 10 shall be payable by Issuer upon demand by Escrow Agent. The obligations of Issuer
under this Section 10 shall survive any termination of this Escrow Agreement and the resignation or removal of Escrow Agent.

 

    -7- 

     

    

 

b.       Disbursements
from Escrow Funds to Pay Escrow Agent. The Escrow Agent is authorized to and may disburse from time to time, to itself or
to any Indemnified Party from the Escrow Funds (but only to the extent of Issuer’s rights thereto), the amount of any compensation
and reimbursement of out-of-pocket expenses due and payable hereunder (including any amount to which Escrow Agent or any Indemnified
Party is entitled to seek indemnification pursuant to Section 9 hereof). Escrow Agent shall notify Issuer of any disbursement
from the Escrow Funds to itself or to any Indemnified Party in respect of any compensation or reimbursement hereunder and shall
furnish to Issuer copies of all related invoices and other statements.

 

c.       Security
and Offset. Subject to Sections 3(a) and 4(a), Issuer hereby grants to Escrow Agent and the Indemnified Parties a security
interest in and lien upon the Escrow Funds (to the extent of Issuer’s rights thereto) to secure all obligations hereunder,
and Escrow Agent and the Indemnified Parties shall have the right to offset the amount of any compensation or reimbursement due
any of them hereunder (including any claim for indemnification pursuant to Section 9 hereof) against the Escrow Funds (to
the extent of Issuer’s rights thereto.) If for any reason the Escrow Funds available to Escrow Agent and the Indemnified
Parties pursuant to such security interest or right of offset are insufficient to cover such compensation and reimbursement, Issuer
and Placement Agent shall promptly pay such amounts to Escrow Agent and the Indemnified Parties upon receipt of an itemized invoice.

 

11.         
Representations and Warranties. 

 

a.
Each of the Placement Agent and the Issuer respectively, separately and not jointly, makes the following representations and warranties
to Escrow Agent:

 

(1)       It
is a corporation or limited liability company duly organized, validly existing, and in good standing under the laws of the state
of its incorporation or organization, and has full power and authority to execute and deliver this Escrow Agreement and to perform
its obligations hereunder.

 

(2)       This
Escrow Agreement has been duly approved by all necessary corporate or limited liability company action, including any necessary
shareholder or membership approval, has been executed by its duly authorized officers, and constitutes its valid and binding agreement,
enforceable in accordance with its terms.

 

(3)       The
execution, delivery, and performance of this Escrow Agreement will not violate, conflict with, or cause a default under its articles
of incorporation, articles of organization or bylaws, operating agreement or other organizational documents, as applicable, any
applicable law or regulation, any court order or administrative ruling or decree to which it is a party or any of its property
is subject, or any agreement, contract, indenture, or other binding arrangement to which it is a party or any of its property
is subject. The execution, delivery and performance of this Escrow Agreement is consistent with and accurately described in the
Offering Document, and the allocation of interest and other earnings to Subscribers, as set forth in Section 6 hereof,
has been properly described therein.

 

    -8- 

     

    

 

(4)       It
hereby acknowledges that the status of Escrow Agent is that of agent only for the limited purposes set forth herein, and hereby
represents and covenants that no representation or implication shall be made that the Escrow Agent has investigated the desirability
or advisability of investment in the Securities or has approved, endorsed or passed upon the merits of the investment therein
and that the name of the Escrow Agent has not and shall not be used in any manner in connection with the offer or sale of the
Securities other than to state (including in the Offering Document) that the Escrow Agent has agreed to serve as escrow agent
for the limited purposes set forth herein.

 

(5)       All
of its representations and warranties contained herein are true and complete as of the date hereof and will be true and complete
at the time of any deposit to or disbursement from the Escrow Funds.

 

(6)          each
of the applicable persons designated on Exhibit C attached hereto has been duly appointed to act as its authorized representatives
hereunder and individually has full power and authority on its behalf to execute and deliver any instruction or direction, to
amend, modify or waive any provision of this Agreement and to take any and all other actions as its authorized representative
under this Agreement and that all without further consent or direction from, or notice to, it or any other person no change in
designation of such authorized representatives shall be effective until written notice of such change is delivered to each other
party to this Agreement pursuant to Section 14 and Escrow Agent has had reasonable time to act upon it.

 

b.       Issuer
further represents and warrants to Escrow Agent that no party other than the parties hereto and the prospective Subscribers have,
or shall have, any lien, claim or security interest in the Escrow Funds or any part thereof. No financing statement under the
Uniform Commercial Code is on file in any jurisdiction claiming a security interest in or describing (whether specifically or
generally) the Escrow Funds or any part thereof.

 

c.       Placement
Agent further represents and warrants to Escrow Agent that the deposit with Escrow Agent by Placement Agent of Cash Investment
Instruments pursuant to Section 3 hereof shall be deemed a representation and warranty by Placement Agent that such Cash
Investment Instrument represents a bona fide sale to the Subscriber described therein of the amount of Securities set forth therein,
subject to and in accordance with the terms of the Offering Document.

 

12.          Identifying
Information. Issuer and Placement Agent acknowledge that a portion of the identifying information set forth on Exhibit
A is being requested by the Escrow Agent in connection with the USA Patriot Act, Pub.L.107-56 (the “Act”). To
help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions
to obtain, verify, and record information that identifies each person who opens an account. For a non-individual person such as
a business entity, a charity, a Trust, or other legal entity, we ask for documentation to verify its formation and existence as
a legal entity. We may also ask to see financial statements, licenses, identification and authorization documents from individuals
claiming authority to represent the entity or other relevant documentation.

 

    -9- 

     

    

 

13.          Consent
to Jurisdiction and Venue. In the event that any party hereto commences a lawsuit or other proceeding relating to or arising
from this Escrow Agreement, the parties hereto agree that the United States District Court for the Southern District of New
York shall have the sole and exclusive jurisdiction over any such proceeding. If such court lacks federal subject matter jurisdiction,
the parties agree that the Supreme Court for the State of New York, County of New York shall have sole and exclusive jurisdiction.
Any of these courts shall be proper venue for any such lawsuit or judicial proceeding and the parties hereto waive any objection
to such venue. The parties hereto consent to and agree to submit to the jurisdiction of any of the courts specified herein and
agree to accept service of process to vest personal jurisdiction over them in any of these courts.

 

14.          Notice.
All notices, approvals, consents, requests, and other communications hereunder shall be in writing and shall be deemed to have
been given when the writing is delivered if given or delivered by hand, overnight delivery service or facsimile transmitter (with
confirmed receipt) to the address or facsimile number set forth on Exhibit A hereto, or to such other address as each party
may designate for itself by like notice, and shall be deemed to have been given on the date deposited in the mail, if mailed,
by first-class, registered or certified mail, postage prepaid, addressed as set forth on Exhibit A hereto, or to such other
address as each party may designate for itself by like notice.

 

15.          Amendment
or Waiver. This Escrow Agreement may be changed, waived, discharged or terminated only by a writing signed by Placement Agent,
Issuer and Escrow Agent. No delay or omission by any party in exercising any right with respect hereto shall operate as a waiver.
A waiver on any one occasion shall not be construed as a bar to, or waiver of, any right or remedy on any future occasion.

 

16.          Severability.
To the extent any provision of this Escrow Agreement is prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining
provisions of this Escrow Agreement.

 

17.          Governing
Law. This Escrow Agreement shall be construed and interpreted in accordance with the internal laws of the State of New
York without giving effect to the conflict of laws principles thereof.

 

18.          Entire
Agreement. This Escrow Agreement constitutes the entire agreement between the parties relating to the acceptance, collection,
holding, investment and disbursement of the Escrow Funds and sets forth in their entirety the obligations and duties of the Escrow
Agent with respect to the Escrow Funds.

 

19.          Binding
Effect. All of the terms of this Escrow Agreement, as amended from time to time, shall be binding upon, inure to the benefit
of and be enforceable by the respective successors and assigns of Placement Agent, Issuer and Escrow Agent.

 

20.          Execution
in Counterparts. This Escrow Agreement may be executed in two or more counterparts, which when so executed shall constitute
one and the same agreement.

 

    -10- 

     

    

 

21.          Termination.
Upon the first to occur of the disbursement of all amounts in the Escrow Funds or deposit of all amounts in the Escrow Funds
into court pursuant to Section 5 or Section 8 hereof, this Escrow Agreement shall terminate and Escrow Agent shall
have no further obligation or liability whatsoever with respect to this Escrow Agreement or the Escrow Funds.

 

22.          Dealings.
The Escrow Agent and any stockholder, director, officer or employee of the Escrow Agent may buy, sell, and deal in any of the
securities of the Issuer or Placement Agent and become pecuniarily interested in any transaction in which the Issuer may be interested,
and contract and lend money to the Issuer or Placement Agent and otherwise act as fully and freely as though it were not Escrow
Agent under this Escrow Agreement. Nothing herein shall preclude the Escrow Agent from acting in any other capacity for the Issuer,
Placement Agent or any other person or entity.

 

23.          Tax
Matters. Escrow Agent shall have no responsibility for the tax consequences of this Agreement and Issuer and Placement Agent
shall consult with independent counsel concerning any and all tax matters. Issuer and Placement Agent jointly and severally agree
to (a) assume all obligations imposed now or hereafter by any applicable tax law or regulation with respect to payments or performance
under this Agreement and (b) request and direct the Escrow Agent in writing with respect to withholding and other taxes, assessments
or other governmental charges, and advise the Escrow Agent in writing with respect to any certifications and governmental reporting
that may be required under any applicable laws or regulations. Except as otherwise agreed by Escrow Agent in writing, Escrow Agent
has no tax reporting or withholding obligation except with respect to Form 1099-B reporting on payments of gross proceeds under
Internal Revenue Code Section 6045 and Form 1099 and Form 1042-S reporting with respect to investment income earned on the Escrow
Funds, if any. If requested tax documentation is not so provided, Escrow Agent is authorized to withhold taxes as required by
the United States Internal Revenue Code and related regulations. Issuer and Placement Agent have determined that any interest
or income on Escrow Funds shall be reported on an accrual basis and deemed to be for the account of the recipient.

 

[signature
page follows]

 

    -11- 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be executed under seal as of the date first above
written.

	 	 	 	 	 
	 	Blue
    Sphere Corporation
	 	 	 	 	 
	 	By:   	 	 	 
	 	Name: 	 
	 	Title: 	 	 

	 	 	 	 	 
	 	Maxim
    Group LLC
	 	 	 	 	 
	 	By:   	 	 	 
	 	Name: 	 
	 	Title: 	 	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL
	 	ASSOCIATION,
                    as Escrow Agent

	 	 	 	 	 
	 	By:   	 	 	 
	 	Name: 	 
	 	Title: 	 	 

 

    -12- 

     

    

 

EXHIBIT
A

 

1.
            Definitions.         
“Expiration Date” means [ ], 2017.

 

	2.	Escrow
                                         Funds wiring instructions:	[
                                         ]

 

3.
            Escrow Agent Fees. 

 

	 	Acceptance Fee:	Waived
	 	Escrow Administration Fee:	$1,000.00
	 	Out-of-Pocket Expenses:	At Cost 
	 	 	 
	 	Other Fees/Attorney, etc.:    	Billed at cost, if any

 

*Assumes
up to 30 investors and three escrow breaks. An escrow break occurs when the Issuer requests the Escrow Agent to wire / send funds
to the Issuer’s bank account.

 

The
Acceptance Fee and the Escrow Administration Fee are payable upon execution of the escrow documents. In the event the escrow is
not funded, the Acceptance Fee and all related expenses, including attorneys’ fees, remain due and payable, and if paid,
will not be refunded. Annual fees cover a full year in advance, or any part thereof, and thus are not pro-rated in the year of
termination.

 

The
fees quoted in this schedule apply to services ordinarily rendered in the administration of an Escrow Account and are subject
to reasonable adjustment based on final review of documents, or when the Escrow Agent is called upon to undertake unusual duties
or responsibilities, or as changes in law, procedures, or the cost of doing business demand. Services in addition to and not contemplated
in this Escrow Agreement, including, but not limited to, document amendments and revisions, non-standard cash and/or investment
transactions, calculations, notices and reports, and legal fees, will be billed as extraordinary expenses.

 

Extraordinary
fees are payable to the Escrow Agent for duties or responsibilities not expected to be incurred at the outset of the transaction,
not routine or customary, and not incurred in the ordinary course of business. Payment of extraordinary fees is appropriate where
particular inquiries, events or developments are unexpected, even if the possibility of such things could have been identified
at the inception of the transaction.

 

Unless
otherwise indicated, the above fees relate to the establishment of one escrow account. Additional sub-accounts governed by the
same Escrow Agreement may incur an additional charge. Transaction costs include charges for wire transfers, checks, internal transfers
and securities transactions. 

 

     

     

    

 

		4.	Investment
                                         Instructions

 

U.S.
Bank Money Market Deposit Account

 

		5.	Termination
                                         and Disbursement. In the event there is any termination or failure of the offering
                                         pursuant to Section 4b of the Escrow Agreement, the Escrow Agent shall, in accordance
                                         with the Offering Document (select one):

 

		ٱ	Pay
                                         as soon as practicable to the applicable Subscriber(s), by certified or bank check and
                                         by first-class mail, each Subscriber’s share of interest income earned on the Escrow
                                         Funds, each such share to be calculated on a Pro Rata Basis (as defined in the Escrow
                                         Agreement).

 

		ٱ	Pay
                                         all monies representing interest and other earnings as soon as practicable by certified
                                         or bank check, subject to Section 10 of the Escrow Agreement, to Issuer.

 

6.            
Notice Addresses. 

 

If
to Issuer at:                                 
[ ] 

 

If
to Placement Agent at:               [ ]

 

If
to the Escrow Agent at:              [ ]

 

		7.	The
                                         Offering Document referenced in the preamble to the Escrow Agreement should be provided
                                         to Escrow Agent for informational purposes only.

 

     

     

    

 

EXHIBIT
B

 

U.S.
BANK MONEY MARKET DEPOSIT ACCOUNT

 

Description
and Terms

 

The
U.S. Bank Money Market Deposit Account is a U.S. Bank National Association (“U.S. Bank”) interest-bearing money market
deposit account designed to meet the needs of U.S. Bank’s Corporate Trust Services Escrow Group and other Corporate Trust
customers of U.S. Bank. Selection of this investment includes authorization to place funds on deposit and invest with U.S. Bank.

 

U.S.
Bank uses the daily balance method to calculate interest on this account (actual/365 or 366). This method applies a daily periodic
rate to the principal balance in the account each day. Interest is accrued daily and credited monthly to the account. Interest
rates are determined at U.S. Bank’s discretion, and may be tiered by customer deposit amount.

 

The
owner of the account is U.S. Bank as agent for its Corporate Trust customers. U.S. Bank’s Corporate Trust Services Escrow
Group performs all account deposits and withdrawals. Deposit accounts are FDIC insured per depositor, as determined under FDIC
Regulations, up to applicable FDIC limits.

 

U.S.
BANK IS NOT REQUIRED TO REGISTER AS A MUNICIPAL ADVISOR WITH THE SECURITIES AND EXCHANGE COMMISSION FOR PURPOSES OF COMPLYING
WITH THE DODD-FRANK WALL STREET REFORM & CONSUMER PROTECTION ACT. INVESTMENT ADVICE, IF NEEDED, SHOULD BE OBTAINED FROM YOUR
FINANCIAL ADVISOR.

 

Automatic
Authorization

 

In
the absence of specific written direction to the contrary, U.S. Bank is hereby directed to invest and reinvest proceeds and other
available moneys in the U.S. Bank Money Market Deposit Account. The customer(s) confirm that the U.S. Bank Money Market Deposit
Account is a permitted investment under the operative documents and this authorization is the permanent direction for investment
of the moneys until notified in writing of alternate instructions.

 

     

     

    

 

EXHIBIT
C

 

Each
of the following person(s) is an Issuer representative authorized to execute documents and direct Escrow Agent as to all
matters, including fund transfers, address changes and contact information changes, on Issuer’s behalf (only one signature
required):

	 	 	 	 	 	 
	 	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No.	 
	 	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No	 
	 	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No	 

 

(Note:
if only one person is identified above, please add the following)

The
following person not listed above is authorized for call-back confirmations:

 

	[_________________]	 	 
	Name	Telephone Number	 

 

Each
of the following person(s) is a Placement Agent representative authorized to execute documents and direct Escrow Agent
as to all matters, including fund transfers, address changes and contact information changes, on Placement Agent’s behalf
(only one signature required):

	 	 	 	 	 	 
	 	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No.	 
	 	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No	 
	 	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No	 

 

(Note:
if only one person is identified above, please add the following)

The
following person not listed above is authorized for call-back confirmations:

 

	[_________________]	 	 
	Name	Telephone Number

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