Document:

Exhibit 10.1

 

Executive Employment Agreement

 

This Executive Employment Agreement (the
“Employment Agreement”) by and between Eric R. Mortensen (the “Executive”) and CytoSorbents
Medical, Inc. (with its parent CytoSorbents Corporate, hereinafter referred to as the “Company”), effective
as of June 1, 2017.

 

WHEREAS, the Company and Executive wish
to enter into this new Employment Agreement on the mutually agreed-upon terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
mutual covenants, promises and obligations set forth herein, the parties agree as follows:

 

1.       Term.
The term of the Executive’s employment under this Agreement shall be from June 1, 2017 through December 31, 2019, unless
terminated earlier pursuant to Section 6 of this Agreement (“Initial Term”). Thereafter, the Executive’s
employment hereunder shall automatically renew for an additional term of one year (a “Renewal Term” and together,
the Initial Term and the Renewal Term, the “Term”), unless either party provides written notice of non-renewal
on the other party at least sixty (60) days prior to the Renewal Term.

 

2.       Position
and Duties.

 

2.1       Position.
During the Term, the Executive shall serve as the Chief Medical Officer of the Company, reporting to the Chief Executive Officer
of the Company (the “CEO”). In such position, the Executive shall have such duties, authority and responsibility
as shall be determined from time to time by the CEO, which duties, authority and responsibility are consistent with the Executive’s
position.

 

2.2       Duties.
During the Term, the Executive shall devote substantially all of his business time and attention to the performance of his duties
as Chief Medical Officer and will not engage in any other business, profession or occupation for compensation or otherwise which
would conflict or interfere with the performance of such services either directly or indirectly without the prior written consent
of the CEO.

 

3.       Place
of Performance. The principal place of the Executive’s employment shall be at the Company’s principal office currently
located in Monmouth Junction, New Jersey; provided that, the Executive may be required to travel from time to time on Company business.

 

4.       Compensation.

 

4.1       Base
Salary. The Company shall pay the Executive a base salary at an annualize rate of $330,000 payable in equal semimonthly installments
in accordance with the Company’s customary payroll practices. The Executive’s base salary shall be reviewed annually
by the Compensation Committee of the Board. The Executive’s annual base salary, as in effect from time to time, is hereinafter
referred to as “Base Salary.”

 

4.2       Stock
Options. The Executive shall be eligible to participate in any equity incentive plan that the Company may adopt for its management
team, on such terms and conditions as determined by the Compensation Committee of the Board.

 

     

     

    

 

4.3       
Change of Control Incentive Compensation. The Executive shall be entitled to an incentive compensation award in the event
of Change of Control of the Company (as defined in Section 6.6(b)), on such terms and conditions as determined by the Compensation
Committee of the Board.

 

4.4       Treatment
of Stock Options and Restricted Stock. The Executive’s stock options and restricted shares will be adjusted on the same
basis as all other shareholders to account for any stock split, stock dividend or recapitalization.

 

4.5       Bonuses.
The Executive shall be eligible to receive such discretionary bonuses as the Board, in its sole discretion, deems appropriate.
 

 

5.       Benefits.
During the Term, the Executive shall be entitled to participate in all employee benefit plans, practices and programs maintained
by the Company, as in effect from time to time (collectively, “Employee Benefit Plans”), on a basis which is
no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent with applicable
law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend or cancel any Employee Benefit
Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable law.

 

5.1       Vacation,
Sick and Personal Days. During the Term, the Executive shall be entitled to four (4) weeks of paid vacation days per calendar
year (prorated for partial years) in accordance with the Company’s vacation policies, as in effect from time to time for
executive employees. In addition to paid vacation days, the Executive shall be entitled to paid sick days and paid personal days
in accordance with the Company’s applicable policies, as in effect from time to time for executive employees.

 

5.2       Continuing
Medical Education and Licensing. The Executive shall be provided up to forty (40) hours of paid time off each calendar year
for attendance at continuing education (“CE”) programs. The forty (40) hours of paid time off shall be prorated
for partial years. The Company shall reimburse the Executive the cost of attendance at CE programs, up to a maximum amount of One
Thousand Dollars ($1,000) per year, prorated for partial years. The Company also agrees to pay for the cost of the one-time conversion
or transfer of Executive’s Pennsylvania Medical License to New Jersey, up to a maximum of Five Hundred Dollars ($500), and
up to Five Hundred Dollars ($500) each year for annual renewal of his New Jersey Medical License for the term of this agreement.
The Executive shall furnish the Company with adequate supporting documentation for all such incurred expenses.

 

5.3       Business
Expenses. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment
and travel expenses incurred by the Executive in connection with the performance of his duties in accordance with the Company’s
expense reimbursement policies and procedures.

 

5.4       Liability
Insurance. With respect to the Executive’s acts or failures to act while employed by the Company in the Executive’s
capacity as a director, officer, employee or agent of the Company, the Executive shall be entitled to: (i) indemnification from
the Company; and (ii) liability insurance coverage, in each case on the same basis as other directors and officers of the Company.

 

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6.       Termination
of Employment. This Agreement and the Executive’s employment hereunder may be terminated as provided for in this Section
6.

 

6.1       Termination
for Cause or Expiration.  The Company may terminate the Executive’s employment effective immediately for Cause (as
defined below). If the Executive’s employment is terminated by the Company for Cause or the Agreement expires at the end
of the Term, the Executive shall be entitled to receive only:

 

		(i)	any accrued but unpaid Base Salary and accrued but unused vacation date as of the date of termination of Executive’s
employment (“Termination Date”);

 

		(ii)	reimbursement for unreimbursed business expenses properly incurred by the Executive through the Termination Date, which shall
be subject to and paid in accordance with the Company’s expense reimbursement policy; and

 

		(iii)	such employee benefits (including equity compensation), if any, to which the Executive may be entitled under the Company’s
Employee Benefit Plans as of the Termination Date; provided that, in no event shall the Executive be entitled to any payments in
the nature of severance or termination payments except as specifically provided herein.

 

Items 6.1(i) through 6.1(iii) are referred
to herein collectively as the “Accrued Obligations.”

 

6.2       Termination
without Cause. The Company may terminate the Executive’s employment at any time without Cause.

 

(a)       If
the Company terminates the Executive’s employment without Cause, then the Executive shall be entitled to:

 

		(i)	The Accrued Obligations;

 

		(ii)	An amount equal to three (3) weeks’ Base Salary for every full year the Executive was employed by the Company, with a
minimum of six (6) months and a maximum of twelve (12) months, payable in equal installments in accordance with the Company’s
regular payroll practices; and

 

		(iii)	Full payment of the premiums for continued health insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation
Act (“COBRA”), provided that the Executive timely elects and remains eligible for COBRA, until the earlier of
(x) twelve (12) months or (y) until the Executive becomes eligible to participate in another employer’s group health plan.

 

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		(iv)	Notwithstanding the terms of any applicable stock option plan and/or agreement, (x) any and all stock options and/or restricted
stock granted to the Executive will become fully vested and/or exercisable on the Termination Date and (y) Executive shall have
(i) until the expiration date noted in the applicable stock option agreement to exercise any stock options previously granted to
the Executive prior to the date of this Agreement (as specified on the signature page hereto), and (ii) ninety (90) days from the
Termination Date to exercise any stock options granted to the Executive on or after the date of this Agreement (as specified on
the signature page hereto).

 

(b)       The
Executive’s receipt of the payments and benefits under Section 6.2 (ii), (iii) and (iv) are subject to the Executive’s
execution of a release of claims in favor of the Company, its parent and affiliates and their respective officers and directors
in a form provided by the Company (the “Release”) and such Release becoming effective within 60 days following
the Termination Date (such 60-day period, the “Release Execution Period”); provided that if the Release Execution
Period begins in one taxable year and ends in another taxable year, any payment which is “nonqualified deferred compensation”
under Section 409A of the Internal Revenue Code shall not be made until the beginning of the second taxable year; provided further
that, the first installment payment shall include all amounts that would otherwise have been paid to the Executive during the period
beginning on the Termination Date and ending on the first payment date if no delay had been imposed.

 

6.3       Termination
for Good Reason. The Executive may terminate his employment hereunder for Good Reason (as defined below), in accordance Section
6.6(d) herein. If the Executive terminates his employment for Good Reason, then the Executive shall be entitled to the payments
and benefits described in Section 6.2(a), subject to the same terms and conditions thereof and subject to the provisions of Section
6.2(b).

 

6.4       Termination
for Death or Disability. The Executive’s employment hereunder shall terminate automatically upon the Executive’s
death during the Term, and the Company may terminate the Executive’s employment on account of the Executive’s Disability.
In the case of a termination for Disability, such termination shall be effective as of the last day of the month following the
month in which the Company shall have given notice to the Executive of its intention to terminate the Executive’s employment
for Disability. In the event of termination of employment by death or Disability, the Executive (or the Executive’s estate,
as applicable) shall be entitled only to the Accrued Obligations.

 

6.5       Change
of Control.

 

(a)       In
the event that the Executive is terminated without Cause or the Executive terminates his employment for Good Reason, in each case
within twelve (12) months of a Change of Control (as defined below), then the Executive shall be entitled to the following:

 

		(i)	The Accrued Obligations;

 

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		(ii)	An amount equal to three (3) weeks’ Base Salary for every full year the Executive was employed by the Company, with a
minimum of six (6) months and a maximum of twelve (12) months, payable in lump sum; and

 

		(iii)	Full payment of the premiums for continued health insurance coverage pursuant to COBRA, provided the Executive timely elects
and remains eligible for COBRA, until the earlier of (x) twelve (12) months or (y) until the Executive becomes eligible to participate
in another employer’s group health plan.

 

(b)       The
Executive’s receipt of the payments and benefits under Section 6.5 (a)(ii) and (iii) are subject to the Executive’s
execution of a Release during the Release Execution Period; provided that if the Release Execution Period begins in one taxable
year and ends in another taxable year, payment under Section 6.5(a)(ii) shall not be made until the beginning of the second taxable
year. Subject to the foregoing, the payment set forth in Section 6.5(a)(ii) shall be made no later than 30 days after the Company’s
receipt of the Release executed by the Executive. Notwithstanding anything contained in this Agreement to the contrary, the Company
shall commence payment of the COBRA premiums in accordance with Section 6.5(a)(iii) upon the effectiveness of the Release.

 

6.6       Definitions.
For purposes of this Agreement, the following definitions apply:

 

(a)       “Cause”
shall mean:

 

		(i)	the Executive’s failure to perform the Executive’s duties (other than any such failure resulting from incapacity
due to physical or mental illness);

 

		(ii)	the Executive’s failure to comply with any valid and legal directive of the Board;

 

		(iii)	the Executive’s engagement in dishonesty, illegal conduct or other misconduct, which is, in each case, materially injurious
to the Company or its affiliates;

 

		(iv)	the Executive’s embezzlement, misappropriation or fraud, whether or not related to the Executive’s employment with
the Company;

 

		(v)	the Executive’s conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state
law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude;

 

		(vi)	the Executive’s violation of a material policy of the Company;

 

		(vii)	the Executive’s material breach of any material obligation under this Agreement or any other written agreement between
the Executive and the Company.

 

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Cause shall not be deemed to exist
pursuant to Section 6.6(a)(i) and (ii) unless the Company provides the Executive with written notice of the circumstances providing
ground for cause under Section 6.6(a)(i) or (ii) and the Executive fails to cure such circumstances within 30 days of receipt of
notice from the Company.

 

(b)       “Change
of Control” shall mean the occurrence of any of the following after the Effective Date:

 

		(i)	one person (or more than one person acting as a group) acquires ownership of stock of the Company that, together with the stock
held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such
corporation; provided that, a Change of Control shall not occur if any person (or more than one person acting as a group) owns
more than 50% of the total fair market value or total voting power of the Company’s stock and acquires additional stock;

 

		(ii)	one person (or more than one person acting as a group) acquires (or has acquired during the twelve-month period ending on the
date of the most recent acquisition) ownership of the Company’s stock possessing 50% or more of the total voting power of
the stock of such corporation;

 

		(iii)	a majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election
is not endorsed by a majority of the Board before the date of appointment or election; or

 

		(iv)	the sale of all or substantially all of the Company’s assets.

 

Notwithstanding the foregoing, a Change of Control
shall not occur unless such transaction constitutes a change in the ownership of the Company, a change in effective control of
the Company, or a change in the ownership of a substantial portion of the Company’s assets under Section 409A. For purposes
of this Change of Control definition, the Company shall include the Company’s parent, CytoSorbents Corporation.

 

(c)       “Disability”
shall mean the Executive’s inability, due to physical or mental incapacity, to substantially perform the Executive’s
duties and responsibilities under this Agreement for one hundred eighty (180) days out of any three hundred sixty-five (365) day
period or one hundred twenty (120) consecutive days.

 

(d)       “Good
Reason” shall mean the occurrence of any of the following, in each case without the Executive’s written consent:

 

		(i)	a material reduction in the Executive’s Base Salary, other than a general reduction in Base Salary that affects all similarly
situated executives in substantially the same proportions;

 

		(ii)	a relocation of the Executive’s principal place of employment by more than 30 miles; provided that such relocation results
in a longer commute for the Executive;

 

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		(iii)	any material breach by the Company of any material provision of this Agreement; or

 

		(iv)	a material, adverse change in the Executive’s duties or responsibilities (other than temporarily while the Executive
is physically or mentally incapacitated or as required by applicable law).

 

Notwithstanding the foregoing,
the Executive cannot terminate his employment for Good Reason unless the Executive has provided written notice to the Company of
the existence of the circumstances providing grounds for termination for Good Reason within thirty (30) days of the initial existence
of such grounds and the Company has had at least thirty (30) days from the date on which such notice is provided to cure such circumstances.
If the Executive does not terminate his employment for Good Reason within 65 days after the first occurrence of the applicable
grounds, then the Executive will be deemed to have waived the right to terminate for Good Reason with respect to such grounds.

 

6.7       Resignation
of All Other Positions. Upon termination of the Executive’s employment hereunder for any reason, the Executive shall
be deemed to have resigned from all positions that the Executive holds as an officer or member of the board of directors (or a
committee thereof) of the Company or any of its affiliates, if any.

 

7.       Section
280G .  If any of the payments or benefits received or to be received by the Executive (including, without limitation,
any payment or benefits received in connection with a Change of Control or the Executive’s termination of employment, whether
pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively
referred to herein as the “280G Payments”) constitute “parachute payments” within the meaning of
Section 280G of the Code and would, but for this Section 7, be subject to the excise tax imposed under Section 4999 of the Code
(the “Excise Tax”), then such 280G Payments shall be reduced in a manner determined by the Company (by the minimum
possible amounts) that maximizes the economic position of the Executive and that is consistent with the requirements of Section
409A until no amount payable to the Executive will be subject to the Excise Tax. If two economically equivalent amounts are subject
to reduction but are payable at different times, the amounts shall be reduced (but not below zero) on a pro rata basis.

 

8.       Cooperation.
The parties agree that certain matters in which the Executive will be involved during the Term may necessitate the Executive’s
cooperation in the future. Accordingly, following the termination of the Executive’s employment for any reason, to the extent
reasonably requested by the Board, the Executive shall cooperate with the Company in connection with matters arising out of the
Executive’s service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of the
Executive’s other activities. The Company shall reimburse the Executive for reasonable out-of-pocket expenses incurred in
connection with such cooperation.

 

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9.       Confidential
Information. The Executive understands and acknowledges that during the Term, the Executive will have access to and learn about
the Company’s Confidential Information.

 

9.1       Definition.
For purposes of this Agreement, “Confidential Information” includes, but is not limited to, all information
of the Company, and its parent, subsidiaries and affiliates, not generally known to the public, in spoken, printed, electronic
or any other form or medium, relating directly or indirectly to: clinical trials, clinical data, preclinical data, product development,
manufacturing, intellectual property, business processes, methods, policies, plans, publications, documents, research, operations,
services, techniques, transactions, know-how, trade secrets, computer programs, databases, records, Medical information, marketing
information, pricing information, design information, developments, market studies, sales information, revenue, costs, formulae,
algorithms, product plans, designs, models, client information, client lists, of the Company or its businesses or any existing
or prospective customer, supplier, investor or other associated third party, or of any other person or entity that has entrusted
information to the Company in confidence. The Executive understands that the above list is not exhaustive, and that Confidential
Information also includes other information that is marked or otherwise identified as confidential or proprietary, or that would
otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information
is known or used. The Executive understands and agrees that Confidential Information includes information developed by the Executive
during the Term. Confidential Information shall not include information that is generally available to and known by the public
at the time of disclosure to the Executive; provided that, such disclosure is through no direct or indirect fault of the Executive
or person(s) acting on the Executive’s behalf.

 

9.2       Disclosure
and Use Restrictions. The Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential;
(ii) not to directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be
disclosed, published, communicated or made available, in whole or part, to any entity or person whatsoever (including other employees
of the Company not having a need to know and authority to know and use the Confidential Information in connection with the business
of the Company and, in any event, not to anyone outside of the direct employ of the Company except as required in the performance
of the Executive’s authorized employment duties or with the prior consent of the Board; and (iii) not to access or use any
Confidential Information, and not to copy any documents, records, files, media or other resources containing any Confidential Information,
or remove any such documents, records, files, media or other resources from the premises or control of the Company, except as required
in the performance of his employment duties or with the prior consent of the Board. Nothing herein shall be construed to prevent
disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a
court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of
disclosure required by such law, regulation or order. The Executive shall provide written notice of any such order to the Board
prior to disclosure, to the extent feasible. The Executive understands and acknowledges that the obligations under this Agreement
with regard to any particular Confidential Information shall continue after his employment by the Company.

 

9.3       Exceptions.
Notwithstanding the foregoing, nothing herein shall prohibit or restrict the Executive from reporting possible violations of federal
law or regulation to any governmental agency or entity, or making other disclosures that are protected under the whistleblower
provisions of applicable law or regulation.

 

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10.       Restrictive
Covenants.

 

10.1       Acknowledgment.
The Executive understands and acknowledges that the nature of the Executives’ position gives the Executive access to and
knowledge of Confidential Information and places the Executive in a position of trust and confidence with the Company, and that
the Executive will obtain knowledge and skill relevant to the Company’s industry, methods of doing business, and marketing
strategies by virtue of the Executive’s employment with the Company. The Executive further understands and acknowledges that
the Company’s ability to reserve the use of Confidential Information for the exclusive knowledge and use of the Company is
of great competitive importance and commercial value to the Company, and that improper use or disclosure by the Executive is likely
to result in unfair or unlawful competitive activity. The Executive acknowledges and agrees that the restrictive covenants herein
are reasonable and reasonably necessary to protect the legitimate business interests of the Company, including its Confidential
Information, customer relationships and goodwill.

 

10.2       Non-competition.
Because of the Company’s legitimate business interest as described herein and the good and valuable consideration offered
to the Executive, during the Term and for the period of twelve (12) months after the termination of Executive’s employment
for any reason, the Executive agrees and covenants not to engage in any business, as an employee, employer, owner, operator, manager,
advisor, consultant, agent, employee, partner, director, stockholder, officer, or any other similar capacity to an entity engaged
in the same or similar business as the Company or its parent, and their respective subsidiaries, which is the use of polymeric
sorbents to purify blood, blood products, and bodily fluids to prevent or treat inflammation or organ dysfunction, except on behalf
of the Company. Executive acknowledges and agrees that the business of the Company shall also include any business or activity
in which the Company is engaged, in research and development, or is demonstrably planning to conduct, each as of the Termination
Date. Nothing herein shall prohibit the Executive from purchasing or owning less than three percent (3%) of the publicly traded
securities of any corporation, provided that such ownership represents a passive investment and that the Executive is not a controlling
person of, or a member of a group that controls, such corporation.

 

10.3       Non-solicitation
of Employees. During the Term and for a period of twelve (12) months after the termination of the Executive’s employment
for any reason, the Executive agrees and covenants not to directly or indirectly solicit, hire, recruit, attempt to hire or recruit,
or induce the termination of employment of any employee of the Company.

 

10.4       Non-solicitation
of Customers. The Executive understands and acknowledges that because of the Executive’s experience with and relationship
to the Company, the Executive will have access to and learn about much or all of the Company’s customer information, and
will have formed customer relationships. The Executive understands and acknowledges that loss of this customer relationship and/or
goodwill will cause significant and irreparable harm to the Company. Therefore, Executive agrees and covenants, during the Term
and for a period of twelve (12) months after the termination of Executive’s employment for any reason, not to directly or
indirectly solicit, contact, attempt to contact or meet with the Company’s customers that the Executive contracted or solicited
in the two-year period prior to the Termination Date, or those potential customers who the Executive solicited within the six (6)
month period before the Termination Date, for purposes of offering or providing goods or services similar to or competitive with
those offered by the Company.

 

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11.       Non-disparagement.
The Executive agrees and covenants that the Executive will not during and after the Term, make, publish or communicate to any person
or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Company or its businesses,
or any of its employees, officers or directors.

 

12.       Remedies.
In the event of a breach or threatened breach by the Executive of Section 9, Section 10 or Section 11 of this Agreement, the Executive
hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or
permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction,
without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the
necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal
remedies, monetary damages or other available forms of relief. Should the Executive violate any of the terms of the restrictive
covenant obligations articulated herein, the obligation at issue will run from the first date on which the Executive ceases to
be in violation of such obligation.

 

13.       Proprietary
Rights.

 

13.1       Work
Product. The Executive acknowledges and agrees that all writings, works of authorship, technology, inventions, discoveries,
ideas and other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended, conceived
or reduced to practice by the Executive individually or jointly with others during the Term and relating in any way to the business
or contemplated business, research or development of the Company (regardless of when or where the Work Product is prepared or whose
equipment or other resources is used in preparing the same) and all printed, physical and electronic copies, all improvements,
rights and claims related to the foregoing, and other tangible embodiments thereof (collectively, “Work Product”),
as well as any and all rights in and to copyrights, trade secrets, trademarks (and related goodwill), patents and other intellectual
property rights therein arising in any jurisdiction throughout the world and all related rights of priority under international
conventions with respect thereto, including all pending and future applications and registrations therefor, and continuations,
divisions, continuations-in-part, reissues, extensions and renewals thereof (collectively, “Intellectual Property Rights”),
shall be the sole and exclusive property of the Company. Work Product includes, but is not limited to, Company publications, research,
strategies, discoveries, techniques, know-how, results, developments, algorithms, product designs, inventions, trade secrets, original
works of authorship, and discoveries.

 

13.2       Work
Made for Hire; Assignment. The Executive acknowledges that, by reason of being employed by the Company at the relevant times,
to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is “work made for hire”
as defined in 17 U.S.C. § 101 and such copyrights are therefore owned by the Company. To the extent that the foregoing does
not apply, the Executive hereby irrevocably assigns to the Company, for no additional consideration, the Executive’s entire
right, title and interest in and to all Work Product and Intellectual Property Rights therein, including the right to sue, counterclaim
and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding thereto
throughout the world. Nothing contained in this Agreement shall be construed to reduce or limit the Company’s rights, title
or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that the Company would have
had in the absence of this Agreement.

 

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13.3       Further
Assurances; Power of Attorney. During and after the Term, the Executive agrees to reasonably cooperate with the Company to
(a) apply for, obtain, perfect and transfer to the Company the Work Product as well as an Intellectual Property Right in the Work
Product in any jurisdiction in the world; and (b) maintain, protect and enforce the same, including, without limitation, executing
and delivering to the Company any and all applications, oaths, declarations, affidavits, waivers, assignments and other documents
and instruments as shall be requested by the Company. The Executive hereby irrevocably grants the Company power of attorney to
execute and deliver any such documents on the Executive’s behalf in the Executive’s name and to do all other lawfully
permitted acts to transfer the Work Product to the Company and further the transfer, issuance, prosecution and maintenance of all
Intellectual Property Rights therein, to the full extent permitted by law, if the Executive does not promptly cooperate with the
Company’s request (without limiting the rights the Company shall have in such circumstances by operation of law). The power
of attorney is coupled with an interest and shall not be effected by the Executive’s subsequent incapacity.

 

14.       Governing
Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of the State
of New Jersey without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this
Agreement shall be brought only in a state or federal court located in New Jersey. The parties hereby irrevocably submit to the
exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding
in such venue.

 

15.       Entire
Agreement. Unless specifically provided herein, this Agreement contains all of the understandings and representations between
the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings,
agreements, representations and warranties, both written and oral, with respect to such subject matter. The parties mutually agree
that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the
Agreement.

 

16.       Modification
and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in
writing and signed by the Executive and by the Chair of the Board. No waiver by either of the parties of any breach by the other
party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver
of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay
by either of the parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any other
or further exercise thereof or the exercise of any other such right, power or privilege.

 

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17.       Severability.
Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable and thus stricken, such
holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon
the parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement. The
parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement
in lieu of severing such unenforceable provision from this Agreement, whether by rewriting the offending provision, deleting any
or all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems
warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law.

 

18.       Captions.
Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of
this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

19.       Counterparts.
This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument.

 

20.       Section
409A.

 

20.1       General
Compliance. This Agreement is intended to comply with or be exempt from Section 409A and shall be construed and administered
in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement
may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this
Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a
short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment
payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon
a termination of employment shall only be made upon a “separation from service” under Section 409A. Notwithstanding
the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section
409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that
may be incurred by the Executive on account of non-compliance with Section 409A.

 

20.2       Specified
Employees. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to the Executive in connection
with his termination of employment is determined to constitute “nonqualified deferred compensation” within the meaning
of Section 409A and the Executive is determined to be a “specified employee” as defined in Section 409A(a)(2)(b)(i),
then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the
Termination Date (the “Specified Employee Payment Date”) or, if earlier, on the Executive’s death. The
aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid to the Executive
in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance
with their original schedule.

 

    	 	12	 

     

    

 

20.3       Reimbursements.
To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in
accordance with the following:

 

(a)       the
amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;

 

(b)       any
reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar year following the
calendar year in which the expense was incurred; and

 

(c)       any
right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.

 

21.       Successors
and Assigns. This Agreement is personal to the Executive and shall not be assigned by the Executive. The Company may assign
this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all
or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted
successors and assigns.

 

22.       Notice.
Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent
by registered or certified mail, return receipt requested, or by overnight carrier to the parties at the addresses set forth below
(or such other addresses as specified by the parties by like notice):

If to the Company:

 

CytoSorbents Corporation

7 Deer Park Drive, Suite K

Monmouth Junction, NJ 08852

c/o Chief Executive Officer

If to the Executive:

 

Eric R. Mortensen, MD, PhD

5 Trestle Way

Dayton, NJ 08810

 

23.       Representations
of the Executive. The Executive represents and warrants to the Company that the Executive’s execution of this Agreement
and performance thereunder will not conflict with or result in a violation of, a breach of, or a default under any contract, agreement
or understanding to which the Executive is a party or is otherwise bound.

 

24.       Withholding.
The Company shall have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for
the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

    	 	13	 

     

    

 

25.       Survival.
Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive
such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

 

26.       Acknowledgment
of Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT THE EXECUTIVE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS
INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT THE EXECUTIVE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT
WITH AN ATTORNEY OF THE EXECUTIVE’S CHOICE BEFORE SIGNING THIS AGREEMENT.

 

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date written below.

 

	 	CYTOSORBENTS MEDICAL, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Dr. Phillip P. Chan	 
	 	Name:	Dr. Phillip P. Chan	 
	 	Title:	CEO	 
	 	Date:	May 19, 2017	 

 

	ERIC R. MORTENSEN	 
	 	 
	Signature:	/s/ Eric R. Mortensen	 
	Date: May 23, 2017  	 

 

 

    	 	14Blue Sphere Corporation S-1/A

Exhibit 10.35

 

 WARRANT
AGREEMENT 

   

 BLUE
SPHERE CORPORATION 

   

 and 

   

 [_____________________] 

   

 WARRANT
AGREEMENT 

   

 Dated
as of [__], 2017 

   

 THIS WARRANT AGREEMENT
(this “Agreement”), dated as of Aril [__], 2017 (the “Issuance Date”), is
by and between Blue Sphere Corporation, a Nevada corporation (the “Company”), and [______________],
a [___________] corporation, as warrant agent (the “Warrant Agent”). 

   

 WHEREAS, pursuant
to the terms of that certain Underwriting Agreement, dated [___], 2017, between the Company and Maxim Group LLC, as representative
of the underwriters set forth therein, the Company is engaged in a public offering (the “Offering”)
of the Company’s Common Stock (as defined below) together with Warrants (as defined below) to purchase Common Stock and,
in connection therewith, has determined to issue and deliver up to [__________] Warrants (including up to [__________] Warrants
subject to an over-allotment option granted to the underwriters by the Company) to investors in the Offering (the “Warrants”),
with each such Warrant representing the right of the holder thereof to purchase one share of common stock of the Company, par
value $0.001 per share (the “Common Stock”), for $[___] per share, subject to adjustment as described
herein, plus applicable fees, charges and taxes; and 

   

 WHEREAS, the Company
has filed with the Securities and Exchange Commission (the “Commission”) a Registration Statement (No.
333-215110) on Form S-1 (as the same may be amended from time to time, the “Registration Statement”)
for the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of, among
other securities, the Warrants and the shares of Common Stock underlying the Warrants (the “Warrant Shares”),
and such Registration Statement was declared effective on [__________], 2017; and 

   

 WHEREAS, the Company
desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the
issuance, registration, transfer, exchange, redemption and exercise of the Warrants; and 

   

 WHEREAS, the Company
desires to provide for the provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective
rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and 

   

 WHEREAS, all acts
and things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned
by or on behalf of the Warrant Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize
the execution and delivery of this Agreement. 

 

     - 1 -

     

    

 

 NOW, THEREFORE,
in consideration of the mutual agreements herein contained, the parties hereto agree as follows: 

   

 1.           Appointment
of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company with respect to the Warrants,
and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the express terms and
conditions set forth in this Agreement. 

   

 2.           Warrants. 

   

 2.1       Form
of Warrant. The Warrants shall be registered securities and shall initially be evidenced by a global certificate (“Global
Certificate”) in substantially the form of Exhibit A hereto, which shall be deposited on behalf of the Company
with a custodian for The Depository Trust Company (“DTC”) and registered in the name of Cede & Co.,
a nominee of DTC. If DTC subsequently ceases to make its book-entry settlement system available for the Warrants, the Company
may instruct the Warrant Agent regarding making other arrangements for book-entry settlement. In the event that the Warrants are
not eligible for, or it is no longer necessary to have the Warrants available in, book-entry form, the Company may instruct the
Warrant Agent to provide written instructions to DTC to deliver to the Warrant Agent for cancellation the Global Certificate,
and the Company shall instruct the Warrant Agent to deliver to DTC separate certificates evidencing Warrants (“Definitive
Certificates” and, together with the Global Certificate, “Warrant Certificates”) registered
as requested through the DTC system. 

   

 2.2       Issuance
and Registration of Warrants. 

 

		2.2.1	Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”)
for the registration of original issuance and the registration of transfer of the Warrants.
	 	 	 
		2.2.2	Issuance of Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall
issue the Global Certificate and deliver the Warrants in the DTC book-entry settlement system in accordance with written instructions
delivered to the Warrant Agent by the Company. Ownership of security entitlements in the Warrants shall be shown on, and the transfer
of such ownership shall be effected through, records maintained (i) by DTC or its nominee or (ii) by institutions that have accounts
with DTC (each, a “Participant”).
	 	 	 
		2.2.3	Beneficial Owner; Holder. Prior to due presentment for registration of transfer of any Warrant,
the Company and the Warrant Agent may deem and treat the person in whose name that Warrant shall be registered on the Warrant Register
(the “Holder”) as the absolute owner of such Warrant for purposes of any exercise thereof, and for all
other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. Notwithstanding
the foregoing, nothing herein shall prevent the Company, the Warrant Agent or any agent of the Company or the Warrant Agent from
giving effect to any written certification, proxy or other authorization furnished by DTC governing the exercise of the rights
of a holder of a beneficial interest in any Warrant. The rights of beneficial owners in a Warrant evidenced by the Global Certificate
shall be exercised by the Holder or a Participant through the DTC system, except to the extent set forth herein or in the Global
Certificate.

 

     - 2 -

     

    

 

		2.2.4	Execution. The Warrant Certificates shall be executed on behalf of the Company by any authorized
officer of the Company (an “Authorized Officer”), which need not be the same authorized signatory for all of the Warrant
Certificates, either manually or by facsimile signature. The Warrant Certificates shall be countersigned by an authorized signatory
of the Warrant Agent, which need not be the same signatory for all of the Warrant Certificates, and no Warrant Certificate shall
be valid for any purpose unless so countersigned. In case any Authorized Officer of the Company that signed any of the Warrant
Certificates ceases to be an Authorized Officer of the Company before countersignature by the Warrant Agent and issuance and delivery
by the Company, such Warrant Certificates, nevertheless, may be countersigned by the Warrant Agent, issued and delivered with the
same force and effect as though the person who signed such Warrant Certificates had not ceased to be such officer of the Company;
and any Warrant Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such
Warrant Certificate, shall be an Authorized Officer of the Company authorized to sign such Warrant Certificate, although at the
date of the execution of this Agreement any such person was not such an Authorized Officer.
	 	 	 
		2.2.5	Registration of Transfer. At any time at or prior to the Expiration Date (as defined below),
a transfer of any Warrants may be registered and any Warrant Certificate or Warrant Certificates may be split up, combined or exchanged
for another Warrant Certificate or Warrant Certificates evidencing the same number of Warrants as the Warrant Certificate or Warrant
Certificates surrendered. Any Holder desiring to register the transfer of Warrants or to split up, combine or exchange any Warrant
Certificate shall make such request in writing delivered to the Warrant Agent, and shall surrender to the Warrant Agent the Warrant
Certificate or Warrant Certificates evidencing the Warrants the transfer of which is to be registered or that is or are to be split
up, combined or exchanged and, in the case of registration of transfer, shall provide a signature guarantee. Thereupon, the Warrant
Agent shall countersign and deliver to the person entitled thereto a Warrant Certificate or Warrant Certificates, as the case may
be, as so requested. The Company and the Warrant Agent may require payment from the Holder requesting a registration of transfer
of Warrants or a split-up, combination or exchange of a Warrant Certificate (but, for purposes of clarity, not upon the exercise
of the Warrants and issuance of Warrant Shares to the Holder), of a sum sufficient to cover any tax or governmental charge that
may be imposed in connection with such registration of transfer, split-up, combination or exchange, together with reimbursement
to the Company and the Warrant Agent of all reasonable expenses incidental thereto. Any Warrant Certificate or Warrant Certificates
surrendered pursuant to this Section 2.2.5 shall be delivered by the Warrant Agent to the Company upon request.

 

     - 3 -

     

    

 

		2.2.6	Loss, Theft and Mutilation of Warrant Certificates. Upon receipt by the Company and the
Warrant Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Warrant Certificate,
and, in case of loss, theft or destruction, of indemnity or security in customary form and amount, and reimbursement to the Company
and the Warrant Agent of all reasonable expenses incidental thereto, and upon surrender to the Warrant Agent and cancellation of
the Warrant Certificate if mutilated, the Warrant Agent shall, on behalf of the Company, countersign and deliver a new Warrant
Certificate of like denomination, tenor and date to the Holder in lieu of the Warrant Certificate so lost, stolen, destroyed or
mutilated. The Warrant Agent may charge the Holder an administrative fee for processing the replacement of lost Warrant Certificates,
which shall be charged only once in instances where a single surety bond obtained covers multiple certificates. The Warrant Agent
may receive compensation from the surety companies or surety agents for administrative services provided to them.
	 	 	 
		2.2.7	Proxies. The Holder of a Warrant may grant proxies or otherwise authorize any person, including
the Participants and beneficial holders that may own interests through the Participants, to take any action that a Holder is entitled
to take under this Agreement or the Warrants; provided, however, that at all times that Warrants are evidenced by a Global Certificate,
exercise of those Warrants shall be effected on their behalf by Participants through DTC in accordance the procedures administered
by DTC.

 

 2.3       Additional
Warrants to be Issued. At any time following the consummation of the Offering, the Warrant Agent may issue additional warrants
to purchase Common Stock (“Additional Warrants”) on the same terms and conditions as the Warrants in
the Offering, upon receipt of joint written instructions from the Company and Maxim Group LLC for the issuance thereof. Such Additional
Warrants, and the obligations of the Company and the Warrant Agent with respect thereto, shall be subject to the terms and conditions
set forth in this Agreement in all respects. 

   

 3.           Terms
and Exercise of Warrants. 

   

 3.1       Exercise
Price. Each Warrant shall, when countersigned by the Warrant Agent, entitle the Holder, subject to the provisions of the applicable
Warrant Certificate and of this Agreement, to purchase from the Company the number of shares of Common Stock stated therein, at
the initial price of $[___] per share, subject to the subsequent adjustments provided in Section 4 hereof. The term
“Exercise Price” as used in this Agreement refers to the price per share at which shares of Common Stock
may be purchased at the time a Warrant is exercised. The Company in its sole discretion may lower the Exercise Price at any time
prior to the Expiration Date for a period of not less than twenty (20) business days, provided, that the Company shall provide
at least five (5) days prior written notice of such reduction to the Holders of the Warrants, and provided further, that any such
reduction shall be identical among all of the Warrants. 

 

     - 4 -

     

    

 

 3.2       Duration
of Warrants. Warrants may be exercised only during the period (the “Exercise Period”) commencing
on the Issuance Date and terminating at 5:00 p.m., New York City time on [__________] (the “Expiration Date”).
Each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect
thereof under this Agreement shall cease at 5:00 p.m., New York City time on the Expiration Date. The Company in its sole discretion
may extend the duration of the Warrants by delaying the Expiration Date, provided, that the Company shall provide at least five
(5) days prior written notice of any such extension to Holders of the Warrants, and provided further, that any such extension
shall be identical in duration among all of the Warrants. 

   

 3.3       Exercise
of Warrants. 

   

 3.3.1       Exercise
and Payment. (a) Subject to the provisions of this Agreement, a Holder (or a Participant acting on behalf of a Holder in accordance
with DTC procedures) may exercise Warrants by delivering to the Warrant Agent, not later than 5:00 p.m., New York City time on
any business day during the Exercise Period (i) the Warrants to be exercised by (A) surrender of the Warrant Certificate evidencing
the Warrants to the Warrant Agent at its office designated for such purpose or (B) delivery of the Warrants to an account of the
Warrant Agent at DTC designated for such purpose in writing by the Warrant Agent to DTC from time to time, (ii) an election to
purchase the Warrant Shares underlying the Warrants to be exercised (A) in the form included in Exhibit B to this Agreement
or (B) via an electronic warrant exercise through the DTC system (each, an “Election to Purchase”) and
(iii) the Exercise Price per share for each Warrant to be exercised (and, if applicable, any taxes or charges due in connection
with the exercise of such Warrants), in lawful money of the United States of America by (A) certified or official bank check payable
to [__________], (B) bank wire transfer in immediately available funds to [__________] or (C) payment to the Warrant Agent through
the DTC system. 

   

 (b)       If
any of (i) the Warrants, (ii) the Election to Purchase, or (iii) the Exercise Price therefor (and, if applicable, any taxes or
charges due in connection with the exercise of such Warrants), is received by the Warrant Agent on any date after 5:00 P.M., New
York City time, or on a date that is not a Trading Day, the Warrants with respect thereto will be deemed to have been received
and exercised on the Trading Day next succeeding such date. “Trading Day” means any day on which the
Common Stock is traded on the Trading Market, or, if the Trading Market is not the principal trading market for the Common Stock,
then on the principal securities exchange or securities market in the United States on which the Common Stock is then traded,
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange
or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading
on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange
or market, then during the hour ending at 4:00 P.M., New York City time). “Trading Market” means The
NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ Global Select Market, the New York Stock Exchange or the NYSE MKT.
The “Exercise Date” will be the date on which the materials in the first sentence of this Section 3.3.1(b)
are received by the Warrant Agent (if by 5:00 P.M., New York City time), or the following Trading Day (if after 5:00 P.M., New
York City time), regardless of any earlier date written on the materials. If the Warrants are received or deemed to be received
after the Expiration Date, the exercise thereof will be null and void and any funds delivered to the Warrant Agent will be returned
to the Holder or Participant, as the case may be, as soon as practicable. In no event will interest accrue on any funds deposited
with the Warrant Agent in respect of an exercise or attempted exercise of Warrants. 

 

     - 5 -

     

    

 

  (c)       The
Warrant Agent shall deposit all funds received by it in payment of the Exercise Price in the account of the Company maintained
with the Warrant Agent for such purpose and shall advise the Company via telephone at the end of each day on which funds for the
exercise of the Warrants are received of the amount so deposited to such account. The Warrant Agent shall promptly confirm such
telephonic advice to the Company in writing. 

   

 (d)       If
less than all the Warrants evidenced by a surrendered Warrant Certificate are exercised, the Warrant Agent shall split up the
surrendered Warrant Certificate and return to the Holder a Warrant Certificate evidencing the Warrants that were not exercised. 

   

 3.3.2       Issuance
of Warrant Shares. As soon as practicable, but no later than 5:00 P.M., New York City time, on the third Trading Day following
the Exercise Date of any Warrant and the clearance of the funds in payment of the Exercise Price (such date and time, the “Delivery
Time”), the Warrant Agent shall direct the transfer agent for the Company’s Common Stock (the “Transfer
Agent”) to, (i) provided that the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
Program at such time, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such
exercise to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian System,
or (ii) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program at such time, issue to
the Holder of such Warrant a certificate or certificates for the number of full shares of Common Stock to which he, she or it
is entitled, registered in such name or names as may be directed by him, her or it. 

   

 3.3.3       Valid
Issuance. All Warrant Shares issuable upon the proper exercise of a Warrant in conformity with this Agreement shall be validly
issued, fully paid and nonassessable. 

   

 3.3.4       No
Fractional Exercise. No fractional Warrant Shares will be issued upon the exercise of Warrants. As to any fraction of a share
which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a
cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round
up to the nearest whole number the number of shares of Common Stock to be issued to such Holder. 

   

 3.3.5       No
Transfer Taxes. The Company shall not be required to pay any stamp or other tax or charge required to be paid in connection
with the exercise of Warrants; and the Company shall not be required to issue or deliver any Warrant Shares until such tax or
other charge shall have been paid or it has been established to the Company’s and the Warrant Agent’s satisfaction
that no such tax or other charge is due. For purposes of clarity, the Company shall pay any stamp or other tax or charge required
to be paid in connection with any issuance to the Holder of the Warrant Shares upon the exercise of Warrants. 

 

     - 6 -

     

    

 

 3.3.6       Date
of Issuance. The Company will treat an exercising Holder as a beneficial owner of the Warrant Shares as of the Exercise Date,
except that, if the Exercise Date is a date when the stock transfer books of the Company are closed, such person shall be deemed
to have become the holder of such shares at the open of business on the next succeeding date on which the stock transfer books
are open. 

   

 3.3.7       Restrictive
Legend Events; Cashless Exercise Under Certain Circumstances. 

   

 (a)       The
Company shall use its best efforts to maintain the effectiveness of the Registration Statement and the current status of the prospectus
included therein, or file and maintain the effectiveness of another registration statement and another current prospectus covering
the Warrants and the Warrant Shares, until the expiration of the Warrants in accordance with the provisions of this Agreement.
The Company shall provide to the Warrant Agent and each Holder prompt written notice of any time that the Company is unable to
deliver the Warrant Shares via DTC transfer or otherwise without restrictive legend because (A) the Commission has issued a stop
order with respect to the Registration Statement, (B) the Commission otherwise has suspended or withdrawn the effectiveness of
the Registration Statement, either temporarily or permanently, (C) the Company has suspended or withdrawn the effectiveness of
the Registration Statement, either temporarily or permanently, (D) the prospectus contained in the Registration Statement is not
available for the issuance of the Warrant Shares to the Holder or (E) otherwise (each a “Restrictive Legend Event”).
To the extent that the Warrants cannot be exercised as a result of a Restrictive Legend Event or a Restrictive Legend Event occurs
after a Holder has exercised Warrants in accordance with the terms of the Warrants but prior to the delivery of the Warrant Shares,
the Company shall, at the election of the Holder, which shall be given within five (5) days of receipt of such notice of the Restrictive
Legend Event, either (A) rescind the previously submitted Election to Purchase and the Company shall return all consideration
paid by the Holder for such shares upon such rescission or (B) treat the attempted exercise as a cashless exercise as described
in paragraph (b) below and refund the cash portion of the Exercise Price to the Holder. 

   

 (b)       If
a Restrictive Legend Event has occurred, the Warrant shall only be exercisable on a cashless basis. Notwithstanding anything herein
to the contrary, the Company shall not be required to make any cash payments or net cash settlement to the Holder in lieu of delivery
of the Warrant Shares. Upon a “cashless exercise”, the Holder shall be entitled to receive the number of Warrant Shares
equal to the quotient obtained by dividing (i) the product of (C) multiplied by (A-B) by (ii) (A), where: 

   

 (A)       =
the VWAP on the Trading Day immediately preceding the Exercise Date; 

   

 (B)       =
the Exercise Price of the Warrant, as adjusted as set forth herein; and 

 

     - 7 -

     

    

 

 (C)         =
the number of Warrant Shares that would be issuable upon exercise of the Warrant in accordance with the terms of the Warrant if
such exercise were by means of a cash exercise rather than a cashless exercise. 

   

 For purposes of this
Agreement, “VWAP” means, for any date, the price determined by the first of the following clauses that
applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted
as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)),
(b) the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board,
(c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock
are then reported in the OTCQB maintained by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions
of reporting prices), the most recent bid price per share of Common Stock so reported, or (d) in all other cases, the fair market
value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Company, the fees and
expenses of which shall be paid by the Company. 

   

 If the Warrant Shares
are issued in such a cashless exercise, the Company acknowledges and agrees that, in accordance with Section 3(a)(9) of the Securities
Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised and the Company agrees not
to take any position contrary thereto. Upon receipt of an Election to Purchase for a cashless exercise, the Warrant Agent will
promptly deliver a copy of the Election to Purchase to the Company to confirm the number of Warrant Shares issuable in connection
with the cashless exercise. The Company shall calculate and transmit to the Warrant Agent in a written notice, and the Warrant
Agent shall have no duty, responsibility or obligation under this section to calculate, the number of Warrant Shares issuable
in connection with any cashless exercise. The Warrant Agent shall be entitled to rely conclusively on any such written notice
provided by the Company, and the Warrant Agent shall not be liable for any action taken, suffered or omitted to be taken by it
in accordance with such written instructions or pursuant to this Agreement. 

   

 3.3.8       Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant
Shares issuable in connection with any exercise, the Company shall promptly deliver to the Holder the number of Warrant Shares
that are not disputed. 

   

 3.3.9       Compensation
for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Transfer Agent to deliver the Warrant Shares to the Holder pursuant to Section 3.3.2
on or before 5:00 p.m. (New York City time) on the second Trading Day after the Delivery Time, and if after such date the beneficial
owner is required by its broker to purchase (in an open market transaction or otherwise) or the beneficial owner’s brokerage
firm otherwise purchases, Common Stock to deliver in satisfaction of a sale by the beneficial owner of the Warrant Shares, which
the beneficial owner anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A)
pay in cash to the Holder the amount, if any, by which (x) the beneficial owner’s total purchase price (including brokerage
commissions, if any) for the Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant
Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at
which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate
the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such
exercise shall be deemed rescinded) or deliver to the Holder the number of Warrant Shares that would have been issued had the
Company timely complied with its delivery obligations. For example, if the beneficial owner purchases Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of Warrant Shares with an aggregate sale price
giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence, the Company shall
be required to pay the Holder $1,000 for the benefit of the beneficial owner. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount
of such loss. Nothing herein shall limit right of a Holder to pursue any other remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver Warrant Shares upon exercise of Warrants as required pursuant to the terms hereof. 

 

     - 8 -

     

    

 

 3.3.10       Beneficial
Ownership Limitation. A Holder shall not have the right to exercise any Warrants to the extent that after giving effect to
the issuance of Warrant Shares after such exercise as set forth on the applicable Election to Purchase, such Holder or a person
holding through such Holder (together with such Holder’s or person’s Affiliates (as defined in Rule 405 under the
Securities Act), and any other persons acting as a group together with that Holder or person or any of that Holder’s or
person’s Affiliates), would beneficially own in excess of 4.99% (the “Beneficial Ownership Limitation”)
of the Company’s Common Stock. For purposes of the foregoing sentence, the number of shares of Common Stock beneficially
owned by a person shall include the number of Warrant Shares that would be owned by that person issuable upon exercise of the
Warrants with respect to which such determination is being made, but shall exclude the number of Warrant Shares (i) which would
be issuable upon exercise of the remaining, non-exercised Warrants beneficially owned by that person or any of its Affiliates
and (ii) underlying any other securities of the Company held by such Holder or its Affiliates that are exercisable or convertible
into Common Stock and subject to a limitation on conversion or exercise that is analogous to the limitation contained in this
Section 3.3.10. Except as set forth in the preceding sentence, for purposes of this Section 3.3.10, beneficial ownership
shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that neither the
Warrant Agent nor the Company is representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange
Act and the Holder or beneficial owner is solely responsible for any schedules required to be filed in accordance therewith. To
the extent that the limitation contained in this Section 3.3.10 applies, the determination of whether a Warrant is exercisable
and of the number of Warrants that are exercisable shall be in the sole discretion of the Holder, and the submission of an Election
to Purchase shall be deemed to be the Holder’s determination of whether such Warrant is exercisable and of the number of
Warrants that are exercisable, and neither the Warrant Agent nor the Company shall have any obligation to verify or confirm the
accuracy of such determination and neither of them shall have any liability for any error made by the Holder or any other person.
In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 3.3.10, in determining
the number of outstanding shares of Common Stock, a Holder or other person may rely on the number of outstanding shares of Common
Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may
be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent
setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of
a person that represents that it is or is acting on behalf of a Holder, the Company shall, within two (2) Trading Days, confirm
orally or in writing or by e-mail to that person the number of shares of Common Stock then outstanding. Upon delivery of a written
notice to the Company, the Holder may from time to time increase or decrease the Beneficial Ownership Limitation to any other
percentage not in excess of 9.99% as specified in such notice, provided that any increase in the Beneficial Ownership Limitation
will not be effective until the sixty-first (61st) day after such notice is delivered to the Company and any such increase or
decrease will apply only to the Holder and its Affiliates and not to any other holder of Warrants. The provisions of this Section
3.3.10 shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section
3.3.10 to correct this subsection (or any portion hereof) which may be defective or inconsistent with the intended beneficial
ownership limitation herein contained. 

 

     - 9 -

     

    

 

 4.           Adjustments. 

   

 4.1       Adjustment
upon Subdivisions or Combinations. If the Company at any time after the Issuance Date subdivides (by any stock split, stock
dividend, recapitalization, reorganization, scheme of arrangement or otherwise) its outstanding Common Stock into a greater number
of shares of Common Stock, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Shares will be proportionately increased. If the Company at any time after the Issuance Date combines
(by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding Common
Stock into a smaller number of shares of Common Stock, the Exercise Price in effect immediately prior to such combination will
be proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section
4.1 shall become effective at 5:00 p.m., New York City time on the date the subdivision or combination or ratio change becomes
effective. The Company shall promptly notify the Warrant Agent in writing of any adjustment to the Warrants and give specific
instructions to the Warrant Agent with respect to any adjustments to the Warrant Register. 

 

     - 10 -

     

    

 

 4.2       Reclassification,
Consolidation, Purchase, Combination, Sale or Conveyance. If, at any time while the Warrants are outstanding, (i) the Company,
directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another
person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other
disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any direct or indirect
purchase offer, tender offer or exchange offer (whether by the Company or another person) is completed pursuant to which holders
of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted
by the holders of 50% or more of the outstanding Common Stock (not including any shares of Common Stock held by the other person
or other persons making or party to, or associated or affiliated with the other persons making, such purchase offer, tender offer
or exchange offer), (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of Common Stock or any compulsory share exchange pursuant to which the shares of Common Stock
are effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly,
in one or more related transactions consummates a stock or share purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another person whereby such other
person acquires more than 50% of the outstanding Common Stock (not including any Common Stock held by the other person or other
persons making or party to, or associated or affiliated with the other persons making or party to, such stock or share purchase
agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of a Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such
exercise immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 3.3.10
on the exercise of the Warrants), the number of shares, if any, of the successor or acquiring corporation or of the Company,
if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 3.3.10 on
the exercise of the Warrants). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share
of Common Stock in such Fundamental Transaction and the Company shall apportion the Exercise Price among the Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the
Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following
such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is
not the survivor (the “Successor Entity”), to assume in writing all of the obligations of the Company
under this Agreement in accordance with the provisions of this Section 4.2 pursuant to written agreements in customary
form and shall, upon the written request of the Holder of Warrants, deliver to that Holder in exchange for those Warrants a security
of the Successor Entity evidenced by a written instrument substantially similar in form and substance to those Warrants that is
exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity), if any, plus
any Alternate Consideration, receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common
Stock for which those Warrants were exercisable immediately prior to such Fundamental Transaction, and with an exercise price
which applies the exercise price hereunder to such shares of capital stock, if any, plus any Alternate Consideration (but taking
into account the relative value of the shares of Common Stock prior to such Fundamental Transaction and the value of such shares
of capital stock plus Alternative Consideration after that Fundamental Transaction, for the purpose of protecting the economic
value those Warrants had immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence of any such
Fundamental Transaction the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Agreement and the Warrant referring to the “Company” shall refer instead
to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the
Company under this Agreement and the Warrant with the same effect as if such Successor Entity had been named as the Company herein. 

 

     - 11 -

     

    

 

 The Company shall
instruct the Warrant Agent in writing to mail by first class mail, postage prepaid, to each Holder, written notice of the execution
of any such amendment, supplement or agreement with the Successor Entity. Any supplemented or amended agreement entered into by
the successor corporation or transferee shall provide for adjustments, which shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Section 4.2. The Warrant Agent shall have no duty, responsibility or obligation
to determine the correctness of any provisions contained in such agreement or such notice, including but not limited to any provisions
relating either to the kind or amount of securities or other property receivable upon exercise of warrants or with respect to
the method employed and provided therein for any adjustments, and shall be entitled to rely conclusively for all purposes upon
the provisions contained in any such agreement. The provisions of this Section 4.2 shall similarly apply to successive
reclassifications, changes, consolidations, mergers, sales and conveyances of the kind described above. 

   

 4.3       Notices
of Changes in Warrant. Upon every adjustment of the Exercise Price or the number of Warrant Shares issuable upon exercise
of a Warrant, the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Exercise Price
resulting from such adjustment and the increase or decrease, if any, in the number of Warrant Shares purchasable at such price
upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation
is based. Upon the occurrence of any event specified in Sections 4.1 or 4.2, or in Sections 5.1 or 5.2
below, then, in any such event, the Company shall give written notice of the occurrence of such event to each Holder of a
Warrant, at the last address set forth for such Holder in the Warrant Register, of the record date or the effective date of the
event. The Warrant Agent shall be entitled to rely conclusively on, and shall be fully protected in relying on, any certificate,
notice or instructions provided by the Company with respect to any adjustment of the Exercise Price or the number of Warrant Shares
issuable upon exercise of a Warrant, or any related matter, and the Warrant Agent shall not be liable for any action taken, suffered
or omitted to be taken by it in accordance with any such certificate, notice or instructions or pursuant to this Agreement. The
Warrant Agent shall not be deemed to have knowledge of any such adjustment unless and until it shall have received written notice
thereof from the Company. 

   

 4.4       Other
Events. In case any event shall occur affecting the Company as to which none of the provisions of preceding subsections of
this Section 4 are strictly applicable, but which would require an adjustment to the terms of the Warrants in order
to (i) avoid an adverse impact on the Warrants and (ii) effectuate the intent and purpose of this Section 4, then,
in each such case, the Company’s Board of Directors shall make such adjustments in the application of such provisions, as
shall be reasonably necessary, in the good faith opinion of the Company’s Board of Directors, to effectuate the intent and
purpose of this Section 4. 

 

     - 12 -

     

    

 

 5.           Other
Rights. 

 

 5.1       Purchase
Rights. If, during the Exercise Period, the Company grants, issues or sells any options, convertible securities or rights
to purchase stock, warrants, securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase
Rights”), then, in each such case, the Holder shall be entitled to acquire, upon the terms applicable to such Purchase
Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common
Stock acquirable upon complete exercise of the Warrant (without regard to any limitations on exercise of the Warrant, including
without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Stock
are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s
right to participate in any such Purchase Right would result in the Holder and its Affiliates exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (and shall not be entitled
to beneficial ownership of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to such extent)
and such Purchase Right to such extent shall be held in abeyance for the benefit of the Holder until such time or times, if ever,
as its right thereto would not result in the Holder and its Affiliates exceeding the Beneficial Ownership Limitation, at which
time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold on such initial Purchase
Right or on any subsequent Purchase Right held similarly in abeyance) to the same extent as if there had been no such limitation). 

 

 5.2       Rights
Upon Distribution of Assets. In addition to any adjustments pursuant to Section 4 above, if, during the Exercise Period,
the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders
of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash,
stock or other securities, property, options, evidence of indebtedness or any other assets by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would
have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of the
Warrant (without regard to any limitations or restrictions on exercise of the Warrant, including without limitation, the Beneficial
Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken,
the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution
(provided, however, that to the extent that the Holder’s right to participate in any such Distribution would result in the
Holder and its Affiliates exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Distribution to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result
of such Distribution (and beneficial ownership) to such extent) and such Distribution to such extent shall be held in abeyance
for the benefit of the Holder until such time or times, if ever, as its right thereto would not result in the Holder and its Affiliates
exceeding the Beneficial Ownership Limitation, at which time or times the Holder shall be granted such Distribution (and any Distributions
declared or made on such initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent
as if there had been no such limitation). 

 

     - 13 -

     

    

 

 6.           Restrictive
Legends; Fractional Warrants. In the event that a Warrant Certificate surrendered for transfer bears a restrictive legend,
the Warrant Agent shall not register that transfer until the Warrant Agent has received an opinion of counsel for the Company
stating that such transfer may be made and indicating whether the Warrants must also bear a restrictive legend upon that transfer.
The Warrant Agent shall not be required to effect any registration of transfer or exchange which will result in the transfer of
or delivery of a Warrant Certificate for a fraction of a Warrant. 

   

 7.           Other
Provisions Relating to Rights of Holders of Warrants. 

   

 7.1       No
Rights as Stockholder. Except as otherwise specifically provided herein, a Holder, solely in its capacity as the registered
holder of Warrants, shall not be entitled to vote or receive dividends or be deemed the holder of capital stock of the Company
for any purpose, nor shall anything contained in this Agreement be construed to confer upon a Holder, solely in its capacity as
the registered holder of Warrants, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent
to any corporate action (whether any reorganization, issue of stock, reclassification of share capital, consolidation, merger,
conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights or rights to participate in new
issues of shares, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive
upon the due exercise of Warrants. 

   

 7.2       Reservation
of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares
of Common Stock that shall be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement. 

   

 7.3       Public
Information Failure. If at any time, a registration statement for the Warrant Shares is not effective and available and Rule
144 under the Securities Act is not available to cover the resale of such shares of Common Stock due to the failure of the Company
to be currently reporting under the Exchange Act (“Public Information Failure”), then the Company shall
pay in cash by wire transfer of immediately available funds an amount per month equal to 1% of the aggregate VWAP of the shares
into which a Warrant is converted which are not able to be delivered without legend because of such Public Information Failure
to the Holder thereof until such shares are able to be delivered without legend (to be pro-rated for any periods which are less
than one month). 

   

 7.4       NASDAQ
Listing. The Company will use its best efforts to ensure the Warrants and the Warrant Shares are listed for trading on The
NASDAQ Capital Market and maintain such listing. Unless and until all of the Warrants have been exercised, the Company shall continue
to be obligated to comply with its listing obligations under this Section 7.4. 

   

 8.           Concerning
the Warrant Agent and Other Matters. 

   

 8.1       Payment
of Taxes. The Company shall from time to time promptly pay all taxes and charges that may be imposed upon the Company or the
Warrant Agent in respect of the issuance or delivery of the Warrant Shares upon the exercise of Warrants , but the Company may
require the Holders to pay any transfer taxes in respect of the Warrants or such shares. The Warrant Agent may refrain from registering
any transfer of Warrants or any delivery of any Warrant Shares unless or until the persons requesting the registration or issuance
shall have paid to the Warrant Agent for the account of the Company the amount of such tax or charge, if any, or shall have established
to the reasonable satisfaction of the Company and the Warrant Agent that such tax or charge, if any, has been paid. 

 

     - 14 -

     

    

 

 8.2         Resignation,
Consolidation, or Merger of Warrant Agent. 

   

 8.2.1       Appointment
of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving thirty (30) days’ notice in writing to the Company, or such
shorter period of time agreed to by the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity
to act or otherwise, the Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the Company
shall fail to make such appointment within a period of thirty (30) days after it has been notified in writing of such resignation
or incapacity by the Warrant Agent or by the Holder of a Warrant (who shall, with such notice, submit his Warrant for inspection
by the Company), then the Warrant Agent or any Holder may apply to any court of competent jurisdiction for the appointment of
a successor Warrant Agent at the Company’s cost. Any successor Warrant Agent, whether appointed by the Company or by such
court, shall be a corporation organized and existing under the laws of any state of the United States of America, in good standing,
and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state
authority. After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities,
duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without
any further act or deed, and except for executing and delivering documents as provided in the sentence that follows, the predecessor
Warrant Agent shall have no further duties, obligations, responsibilities or liabilities hereunder, but shall be entitled to all
rights that survive the termination of this Agreement and the resignation of the Warrant Agent, including but not limited to its
right to indemnity hereunder. If for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute
and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers,
and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make,
execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming
to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations. 

   

 8.2.2       Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof
to the predecessor Warrant Agent and the Transfer Agent for the Common Stock not later than the effective date of any such appointment. 

   

 8.2.3       Merger
or Consolidation of Warrant Agent. Any person into which the Warrant Agent may be merged or converted or with which it may
be consolidated or any person resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a party
or any person succeeding to the shareowner services business of the Warrant Agent or any successor Warrant Agent shall be the
successor Warrant Agent under this Warrant Agreement, without any further act or deed. For purposes of this Warrant Agreement,
“person” shall mean any individual, firm, corporation, partnership, limited liability company, joint venture, association,
trust or other entity, and shall include any successor (by merger or otherwise) thereof or thereto. 

 

     - 15 -

     

    

 

 8.3         Fees
and Expenses of Warrant Agent. 

   

 8.3.1       Remuneration.
The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent hereunder and shall,
pursuant to its obligations under this Agreement, reimburse the Warrant Agent upon demand for all expenditures that the Warrant
Agent may reasonably incur in the execution of its duties hereunder. 

   

 8.3.2       Further
Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged,
and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant Agent
for the carrying out or performing of the provisions of this Agreement. 

   

 8.4         Liability
of Warrant Agent. 

   

 8.4.1       Reliance
on Company Statement. Whenever in the performance of its duties under this Agreement, the Warrant Agent shall deem it necessary
or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder,
such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a statement signed by the Chief Executive Officer or other authorized officer of the Company and delivered
to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant
to the provisions of this Agreement. 

   

 8.4.2       Indemnity.
The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. The Company agrees
to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable
counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement, except as a result of the
Warrant Agent’s gross negligence, willful misconduct or bad faith. 

   

 8.4.3       Exclusions.
The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity
or execution of any Warrant (except its countersignature thereof). The Warrant Agent shall not be responsible for any breach by
the Company of any covenant or condition contained in this Agreement or in any Warrant. The Warrant Agent shall not be responsible
to make any adjustments required under the provisions of Section 4 hereof or responsible for the manner, method, or
amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment; nor shall
it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares
of Common Stock to be issued pursuant to this Agreement or any Warrant or as to whether any Warrant Shares, when issued, be valid
and fully paid and nonassessable. 

 

     - 16 -

     

    

 

 8.5       Acceptance
of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the
terms and conditions herein set forth and among other things, shall account promptly to the Company with respect to Warrants exercised
and concurrently account for, and pay to the Company, all monies received by the Warrant Agent for the purchase of Warrant Shares. 

   

 9.           Miscellaneous
Provisions. 

   

 9.1       Successors.
All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure
to the benefit of their respective successors and assigns. 

   

 9.2       Notices.
Any notice, statement or demand authorized by this Agreement to be given or made by the Warrant Agent or by the Holder of any
Warrant to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified
mail or private courier service within five (5) days after deposit of such notice, postage prepaid, addressed (until another address
is filed in writing by the Company with the Warrant Agent), as follows: 

   

 Blue Sphere Corporation  

 301 McCullough Drive, 4th Floor  

 Charlotte, NC 28262  

 Attention: Shlomi Palas, Chief Executive Officer 

   

 Any notice, statement
or demand authorized by this Agreement to be given or made by the Holder of any Warrant or by the Company to or on the Warrant
Agent shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier
service within five (5) days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing
by the Warrant Agent with the Company), as follows: 

   

 [__________]  

 [ADDRESS]  

 Attention: [__________] 

   

 9.3       Applicable
Law. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in all respects
by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application
of the substantive laws of another jurisdiction. Each of the parties hereto hereby agrees that any action, proceeding or claim
against it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of
New York or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenient forum. 

   

 9.4       Persons
Having Rights under this Agreement. Nothing in this Agreement shall be construed to confer upon, or give to, any person or
entity other than the parties hereto and the Holders of the Warrants any right, remedy, or claim under or by reason of this Agreement
or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and
agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors
and assigns and of the Holders of the Warrants. 

 

     - 17 -

     

    

 

 9.5       Examination
of the Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Warrant Agent designated
for such purpose for inspection by any Holder. Prior to such inspection, the Warrant Agent may require any such Holder to provide
reasonable evidence of its interest in the Warrants. 

   

 9.6       Counterparts.
This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all
purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

   

 9.7       Effect
of Headings. The section headings herein are for convenience only and are not part of this Agreement and shall not affect
the interpretation thereof. 

   

 9.8       Amendments.
This Agreement may be amended by the parties hereto without the consent of any Holder for the purpose of curing any ambiguity,
or curing, correcting or supplementing any defective provision contained herein or adding or changing any other provisions with
respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties
deem shall not adversely affect the interest of the Holders. All other modifications or amendments, including any amendment to
increase the Exercise Price or shorten the Exercise Period, shall require the vote or written consent of the Holders of more than
50% of the then outstanding Warrants. Notwithstanding the foregoing, the Company may lower the Exercise Price or extend the duration
of the Exercise Period pursuant to Sections 3.1 and 3.2, respectively, without the consent of the Holders. No consideration
shall be offered by the Company to any Holder in connection with a modification, amendment or waiver of this Agreement or any
Warrant without also offering the same consideration to all Holders. 

   

 9.9       Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect
the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable. 

 

     - 18 -

     

    

 

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

	 	 	 
	 	BLUE SPHERE CORPORATION
	 	 	 
	 	By:	 
	 	Name: Shlomo Palas
	 	Title: Chief Executive Officer
	 	 	 
	 	[____________], as Warrant Agent
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

 [Signature Page to Warrant Agreement] 

 

     - 19 -

     

    

 

 EXHIBIT A 

   

 [TO BE INCLUDED IN THE GLOBAL CERTIFICATE] 

   

 [UNLESS THIS CERTIFICATE IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 

   

 BLUE SPHERE CORPORATION 

   

 WARRANT CERTIFICATE 

 NOT EXERCISABLE AFTER _____________,
20__ 

   

 This certifies
that the person whose name and address appears below, or registered assigns, is the registered owner of the number of Warrants
set forth below. Each Warrant entitles its registered holder to purchase from Blue Sphere Corporation, a Nevada corporation (the
“Company”) at any time prior to 5:00 P.M. (New York City time) on ______, 20__, at the designated office
of _______________, as warrant agent (the “Warrant Agent”), set forth below, one share of common stock,
par value $0.001 per share (the “Common Stock”), of the Company, at price of $____ per share, subject
to possible adjustments as provided in the Warrant Agreement (as defined below). 

   

 This Warrant Certificate,
with or without other Warrant Certificates, upon surrender at the designated office of the Warrant Agent, may be exchanged for
another Warrant Certificate or Warrant Certificates evidencing the same number of Warrants as the Warrant Certificate or Warrant
Certificates surrendered. A transfer of the Warrants evidenced hereby may be registered upon surrender of this Warrant Certificate
at the designated office of the Warrant Agent by the registered holder in person or by a duly authorized attorney, properly endorsed
or accompanied by proper instruments of transfer, a signature guarantee, and such other and further documentation as the Warrant
Agent may reasonably request and duly stamped as may be required by the laws of the State of New York and of the United States
of America. 

   

 The terms and conditions
of the Warrants and the rights and obligations of the holder of this Warrant Certificate are set forth in the Warrant Agreement
dated as of [         ], 2017 (the “Warrant Agreement”) between
the Company and the Warrant Agent. A copy of the Warrant Agreement is available for inspection during business hours at the office
of the Warrant Agent. 

   

 This Warrant Certificate
shall not be valid or obligatory for any purpose until it shall have been countersigned by an authorized signatory of the Warrant
Agent. 

 

     

     

    

 

 IN WITNESS WHEREOF,
the parties hereto have caused this Warrant Certificate to be duly executed as of this ___ of [       ],
2017. 

	 	 	 
	 	BLUE SPHERE CORPORATION
	 	 	 
	 	By:	 
	 	Name:
	 	Title: Chief Executive Officer
	 	 	 
	 	[____________], as Warrant Agent
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

 [Signature Page to Warrant Certificate] 

 

     

     

    

 PLEASE
DETACH HERE

—————————————————————————————————————— 

   

 Certificate No.:_________ Number of
Warrants:__________ 

   

 WARRANT CUSIP NO.: _____________ 

   

 BLUE SPHERE CORPORATION 

 

	[Name & Address of Holder]	[______________], Warrant Agent
	 	 
	 	By mail:
	 	 
	 	[ADDRESS]
	 	 
	 	By hand or overnight courier:
	 	 
	 	[ADDRESS]

 

     

     

    

 

 EXHIBIT B 

   

 [Form of Election to Purchase] 

   

 (To Be Executed Upon Exercise of Warrants
not evidenced by a Global Certificate) 

   

 The undersigned
hereby irrevocably elects to exercise the right, represented by Warrants evidenced by this Warrant Certificate, to receive __________
shares of Common Stock and herewith tenders payment for such shares to the order of _________________ in the amount of $________
in accordance with the terms hereof. 

   

 OR 

   

 [In cases where
cashless exercise is permitted under the Warrant Agreement] — The undersigned hereby irrevocably elects to exercise the
right, represented by Warrants evidenced by this Warrant Certificate, to receive __________ shares of Common Stock (before giving
effect to the cashless exercise provisions) and herewith agrees to make payment therefor pursuant to the cashless exercise provisions
of the Warrant Agreement, all on the terms and the conditions specified in the Warrant Agreement. 

   

 The undersigned
requests that a certificate for such shares be registered in the name of ___________, whose address is ________________________________________,
and that such certificate be delivered to ________________, whose address is ______________________________ . If the number of
Warrants being exercised hereby is less than all of the Warrants evidenced by this Warrant Certificate, the undersigned requests
that a new Warrant Certificate representing the remaining unexercised Warrants be registered in the name of ___________________,
whose address is _______________, and that such Warrant Certificate be delivered to ________________, whose address is __________________________. 

   

	 Date: ____________, 20 	   	 (Signature) 
	   	   	 (Address) 
	   	   	 (Tax Identification Number) 
	   	   	   
	 Signature Guaranteed: 	   	   

 Signatures must be guaranteed by an “eligible guarantor
institution” meeting the requirements of the Warrant Agent, which requirements include membership or participation in the
Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may
be determined by the Warrant Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.

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