TRANSITION
SERVICES AGREEMENT


 


THIS
TRANSITION SERVICES AGREEMENT (this “Agreement”), dated as of December 2, 2019 (the “Effective Date”),
is made and entered into by and between Taronis Technologies, Inc., a Delaware corporation (“Tech”), and Taronis
Fuels, Inc., a Delaware corporation and wholly owned subsidiary of Tech (“Fuels”). Each of Tech and Fuels may
be referred to herein individually as a “Party” and collectively as the “Parties.” For purposes
of this Agreement, capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to such
terms in the Master Distribution Agreement (as defined below).


 


RECITALS


 


WHEREAS,
Tech is engaged, directly and indirectly, in the welding supply and gas distribution business and the manufacture and sale of
“MagneGas” and Venturi® Gasification systems used to create synthetic gases (“Fuels Business”)
as well as being engaged, directly and indirectly, in the water technology business (“Tech Business”);


 


WHEREAS,
the Board of Directors of Tech (the “Tech Board”) has determined that it is advisable and in the best interests
of Tech and Tech’s stockholders to separate Fuels’ businesses from that of Tech standing along, creating two independent
publicly traded companies (the “Distribution”);


 


WHEREAS,
to effectuate the Distribution, Tech and Fuels have entered into a Master Distribution Agreement, dated as of December 2, 2019
(the “Master Distribution Agreement”); and


 


WHEREAS,
to facilitate and provide for an orderly transition in connection with the Distribution, the Parties desire to enter into this
Agreement to set forth the terms pursuant to which each of the Parties shall provide Services to the other Party for a transitional
period;


 


NOW,
THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally
bound, hereby agree as follows:


 


Article
I. Services


 


Section
1.01 Services.


 


	 	(a)	With
    respect to each applicable service set forth on Schedule 1 hereto (the “Services”), the Party identified
    on Schedule 1 hereto as the “Provider” of such Service agrees to provide, or to cause one or more members of its
    Group to provide, such Service to the other Party (the “Recipient”), or any members of the Recipient’s
    Group, in each case for the period commencing on the Effective Date and ending on the earlier of (i) the date that a Party
    terminates the provision of such Service pursuant to Section 4.02 and (ii) the date set forth on Schedule 1 with respect to
    such Service (the “Service Period”). The Parties acknowledge and agree that the “Service” as
    described on Schedule 1 may be amended or modified, or added to with greater specificity, by the Parties following the Effective
    Date, via a revision of such Schedule 1 duly executed by an authorized officer of each of the Parties.
	 	 	 
	 	(b)	At
    any time during the term of this Agreement, either Party may request that the other Party provide or cause its Group to provide
    additional services hereunder (the “Additional Services”) by providing written notice of such request,
    it being understood that the Party that receives such request may in its sole discretion decline to provide such requested
    Additional Services. If a Provider agrees to undertake to provide the Additional Services, upon the mutual written agreement
    as to the nature, cost, duration and scope of such Additional Services, Tech and Fuels shall supplement in writing the Services
    set forth on Schedule 1 to include such Additional Services. Except where the context otherwise indicates or requires, any
    such Additional Services specified on Schedule 1 or so agreed upon in writing by the Parties shall be deemed to be “Services”
    under this Agreement.


 






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Section
1.02 Performance of Services.


 


	 	(a)	The
    Provider shall perform, or shall cause one or more members of its Group to perform, all Services to be provided by the Provider
    in a manner that is based on its past practice and that is substantially similar in all material respects to such Services
    (or analogous services) provided by or on behalf of Tech or any of its Subsidiaries with respect to the Fuels Business or
    Tech Business, as applicable, during the twelve (12) months prior to the Effective Date (collectively referred to as the “Level
    of Service”).
	 	 	 
	 	(b)	Nothing
    in this Agreement shall require the Provider to perform or cause to be performed any Service to the extent that the manner
    of such performance would constitute a violation of any applicable Law or any existing contract or agreement with a Third
    Party. As between the Parties, the Provider shall be the party that determines, in its sole discretion, whether to communicate
    with and shall be the party that communicates with Third Parties in connection with any necessary Third Party consents required
    under any existing contract or agreement with a Third Party to allow the Provider to perform, or cause to be performed, Services
    to be provided to the Recipient hereunder, with any such communications to be in the sole discretion of Provider. Unless otherwise
    agreed in writing by the Parties, all reasonable and documented out-of-pocket costs and expenses (if any) incurred by any
    Party or any member of its Group in connection with obtaining any Third Party consent that is required to allow the Provider
    to perform or cause to be performed any Services hereunder shall be paid for by the Recipient. If, with respect to a Service,
    a required Third-Party consent has not been obtained, or the performance of a Service by or on behalf of the Provider would
    constitute a violation of any applicable Law, the Provider shall have no obligation to perform or cause to be performed such
    Service.
	 	 	 
	 	(c)	The
    Provider shall not be obligated to perform or to cause to be performed any Service in a manner that is materially more burdensome
    (with respect to service quality, service quantity, or allocation of personnel or resources) than such services (or analogous
    services) provided by or on behalf of Tech or any of its Subsidiaries with respect to the Fuels Business or Tech Business,
    as applicable, during the 12-month period prior to the Effective Date. Without limiting the generality of the foregoing, the
    Provider shall not be required to maintain the employment of any specific employee(s), hire additional employees or third-party
    service providers or purchase, lease or license any additional equipment, software or other assets or properties in order
    the provide the Services hereunder. If the Recipient requests that the Provider perform or cause to be performed any Service
    in a manner that exceeds the Level of Service, then the Parties shall reasonably cooperate and act in good faith to determine
    whether the Provider will be required to provide such requested higher Level of Service. If the Parties determine that the
    Provider shall provide the requested higher Level of Service, then such higher Level of Service shall be documented in a written
    agreement signed by the Parties, which may be an amendment or addendum to this Agreement.


 


	 	(d)	Neither
    the Provider nor any member of its Group shall be required to perform or to cause to be performed any of the Services for
    the benefit of any Third Party or any other Person other than the Recipient and the members of its Group. EXCEPT AS EXPRESSLY
    PROVIDED IN THIS Section 1.02 OR Section 6.04, EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL SERVICES ARE PROVIDED ON AN “AS-IS”
    BASIS, THAT THE RECIPIENT ASSUMES ALL RISK AND LIABILITY ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON THE SERVICES,
    AND THAT THE PROVIDER MAKES NO OTHER REPRESENTATIONS OR GRANTS ANY WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION
    OF LAW, BY STATUTE OR OTHERWISE, WITH RESPECT TO THE SERVICES. EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER
    WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE
    OR PURPOSE OR THE NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.
	 	 	 
	 	(e)	Each
    Party shall be responsible for its own compliance with any and all Laws applicable to its performance under this Agreement.
    No Party shall knowingly take any action in violation of any such applicable Law.


 






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Section
1.03 Determination of Allocated Costs; Dispute Resolution; Payment.


 


	 	(a)	From
    and after the Effective Date and during the Service Period, the actual costs to applicable Provider of providing the Services
    to the Recipient, including, without limitation, the salaries, employment taxes and benefits applicable to the employees of
    the Provider actually engaged in providing the Services, based on the percentage of time spent by such employees in providing
    such services relative to the time spent by such employees on matters not relating to such services, plus applicable allocated
    overhead and other expenses incurred, in each case without mark-up (the “Allocated Costs”), will be determined
    and allocated in good faith by the Parties jointly, on a monthly basis, commencing as of the end of the first (1st)
    calendar month following the Effective Date and continuing thereafter as of the end of each succeeding one (1) calendar month
    period. The Allocated Costs so determined by the Parties shall be subject to quarterly review (“Review Period”)
    and approval by the Audit Committee of each Party, or such other committee as determined by the Board of Directors of each
    Party (the “Audit Committees”).
	 	 	 
	 	(b)	In
    the event of a dispute between the Parties or their applicable Audit Committees, concerning the proposed Allocated Costs in
    respect of any month(s) comprising a Review Period, then the Parties shall mutually select and engage a recognized certified
    public accountant acceptable to each of the them to review disputed items and to determine the Allocated Costs for the month(s)
    comprising the Review Period in question; provided, however, if such Parties cannot agree on a mutually acceptable certified
    public accountant, each Party or such party’s Audit Committee, each shall name a recognized certified public accountant
    and those two certified public accountants shall select a third recognized certified public accountant which shall be used
    for the purposes of this Section 1.03(b). The selected certified public accountant’s opinion concerning the Allocated
    Costs for the quarterly period in question shall be final and binding on all Parties. The expenses of the certified public
    accountant will be borne by each Party in the same proportion by which their respective positions as initially presented to
    the certified public accountant differs from the final resolution as determined by the certified public accountant.


 


	 	(c)	The
    Allocated Costs for each month comprising a Review Period during the Service Period, as finally determined pursuant to Section
    1.03(a) or Section 1.03(b), as applicable, will be invoiced, in arrears, by the applicable Provider to the applicable Recipient
    as set forth in Article III. Together with any invoice for Allocated Costs, the Provider shall provide the Recipient with
    reasonable documentation, including any additional documentation reasonably requested by the Recipient to the extent that
    such documentation is in the Provider’s or its Group’s possession or control, to confirm the calculation of the
    Allocated Costs.


 


Section
1.04 Changes in the Performance of Services. Subject to the performance Level of Service, the Provider may make changes from
time to time in the manner of performing the Services if the Provider is making similar changes in performing analogous services
for itself or its Group and if the Provider furnishes to the Recipient reasonable prior written notice of such changes. No such
change shall materially adversely affect the timeliness or quality of the applicable Service.


 


Section
1.05 Transitional Nature of Services. The Parties acknowledge the transitional nature of the Services and agree to reasonably
cooperate and to use commercially reasonable efforts to effectuate a smooth transition of the Services from the Provider to the
Recipient (or its designee).


 


Section
1.06 Subcontracting. A Provider may hire or engage one or more Third Parties to perform any or all of its obligations under
this Agreement; provided, however, that (a) such Provider shall use the same degree of care (but at least reasonable care) in
selecting each such Third Party as it would if such Third Party was being retained to provide similar services to the Provider
or its Group and (b) such Provider shall in all cases remain primarily responsible for all of its obligations under this Agreement
with respect to the Services.


 






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Article
II. OTHER ARRANGEMENTS


 


Section
2.01 Access. The Recipient shall, and shall cause the members of its Group to, allow the Provider and the members of its Group
and their respective Representatives reasonable access to the facilities of the Recipient and the members of its Group that is
necessary for the Provider to fulfill its obligations under this Agreement. In addition to the foregoing right of access, the
Recipient shall, and shall cause the members of its Group to, afford the Provider and the members of its Group and their respective
Representatives, upon reasonable advance written notice, reasonable access during normal business hours to the facilities, Information,
systems, infrastructure and personnel of the Recipient and the members of its Group as reasonably necessary for the Provider to
verify the adequacy of internal controls over information technology, reporting of financial data and related processes employed
in connection with the Services being provided by the Provider or the members of the Provider Group, including in connection with
verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided that (i) such access shall not unreasonably
interfere with any of the business or operations of the Recipient or any member of its Group and (ii) in the event that the Recipient
determines that providing such access could be commercially detrimental, violate any applicable Law or agreement or waive any
attorney-client privilege, then the Parties shall use commercially reasonable efforts to permit such access in a manner that avoids
such harm and consequence. The Provider agrees that all of its and its Group’s employees shall, and that it shall use commercially
reasonable efforts to cause its Representatives’ employees to, when on the property of the Recipient or a member of the
Recipient’s Group, or when given access to any facilities, Information, systems, infrastructure or personnel of the Recipient
or a member of the Recipient’s Group, conform to the policies and procedures of the Recipient and the members of the Recipient’s
Group, as applicable, concerning health, safety, conduct and security which are made known or provided to the Provider from time
to time.


 


Section
2.02 Audit Assistance. Each of the Parties and the members of their respective Groups are or may be subject to regulation
and audit by a Governmental Authority (including a Governmental Authority with respect to Taxes) or parties to contracts with
such Parties or the members of their Groups. If such a Third Party exercises its right to examine or audit such Party’s
or a member of its Group’s books, records, documents or accounting practices and procedures pursuant to such applicable
Law or contract provisions, and such examination or audit relates to the Services, then the other Party shall provide, at the
sole cost and expense of the requesting Party (except if related to the Recipient’s receipt of Services, in which case such
cost and expense shall be the Recipient’s responsibility), all assistance reasonably requested by the Party that is subject
to the examination or audit in responding to such examination or audits or requests for Information, to the extent that such assistance
or Information is within the reasonable control of the cooperating Party and is related to the Services. The requesting Party
shall consult and cooperate with the cooperating Party to limit the scope of any such examination or audit to the extent reasonably
possible.


 


Section
2.03 Title to Intellectual Property. Except as otherwise expressly provided for under this Agreement, the Master Distribution
Agreement, or another Ancillary Agreement, the Recipient acknowledges that it shall acquire no right, title or interest (including
any license rights or rights of use) in any intellectual property which is owned or licensed by the Provider, by reason of the
provision of the Services hereunder (other than the receipt and use of the Services by the Recipient during the term of this Agreement
as contemplated hereunder). The Recipient shall not remove or alter any copyright, trademark, confidentiality or other proprietary
notices that appear on any intellectual property owned or licensed by the Provider, and the Recipient shall reproduce any such
notices on any and all copies thereof. The Recipient shall not attempt to decompile, translate, reverse engineer or make excessive
copies of any intellectual property owned or licensed by the Provider, and the Recipient shall promptly notify the Provider of
any such attempt, regardless of whether by the Recipient or any Third Party, of which the Recipient becomes aware.


 


Article
III. BILLING; TAXES


 


Section
3.01 Procedure. Allocated Costs for the Services as well as any Covered Taxes (as defined below) (collectively, the “Charges”)
due and owing in accordance with this Agreement, shall be charged to and payable by the Recipient. Amounts payable pursuant to
this Agreement shall be paid by wire transfer (or such other method of payment as may be agreed between the Parties from time
to time) to the Provider (as directed by the Provider), on a monthly basis, which amounts shall be due within thirty (30) days
after the Recipient’s receipt of each such invoice, including reasonable documentation pursuant to Section 1.02(e). All
amounts due and payable hereunder shall be invoiced and paid in U.S. dollars.


 


Section
3.02 Late Payments. Charges not paid when due pursuant to this Agreement (and any amounts billed or otherwise invoiced or
demanded and properly payable that are not paid within thirty (30) days of the receipt of such bill, invoice or other demand)
shall accrue interest at a rate per annum equal to the Prime Rate plus one percent (1%) or the maximum rate under applicable Law,
whichever is lower.


 






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Section
3.03 Taxes.


 


	 	(a)	Without
    limiting any provisions of this Agreement, the Charges shall be exclusive of all sales, use, value-added, goods and services,
    services, excise, consumption, transfer or similar taxes, and any related penalties and interest, arising from the payment
    of such Charges to the Provider under this Agreement (other than any taxes measured by or imposed on the Provider’s
    gross or net income, or franchise or other similar taxes of the Provider) (“Covered Taxes”).
	 	 	 
	 	(b)	The
    Recipient shall pay, or reimburse the Provider for, any and all Covered Taxes.
	 	 	 
	 	(c)	Where
    required by applicable Law, the Recipient shall pay any Covered Taxes directly to the relevant Governmental Authority in compliance
    with applicable Law. If any Covered Taxes are assessed on the receipt of Charges by the Provider under this Agreement, the
    Provider shall notify the Recipient, pay such Covered Taxes directly to the applicable Governmental Authority and promptly
    provide the Recipient with an official receipt showing such payment, and the Recipient shall (without duplication) reimburse
    the Provider for such Covered Taxes.
	 	 	 
	 	(d)	In
    the event that applicable Law requires any Covered Taxes to be withheld from a payment of Charges by a Recipient to a Provider
    under this Agreement, the Recipient shall make such required withholding, pay such withheld amounts over to the applicable
    Governmental Authority in compliance with applicable Law, and increase the amount payable to the Provider as necessary so
    that, after the Recipient has withheld such amounts, the Provider receives an amount equal to the amount the Provider would
    have received had no such withholding been required.
	 	 	 
	 	(e)	The
    Recipient and the Provider shall use reasonable efforts, and shall cooperate with each other in good faith, to secure (and
    to enable the Recipient to claim) any exemption from, or otherwise to minimize, any Covered Taxes or to claim a tax refund
    therefor or tax credit in respect thereof, and the Recipient shall not be responsible for any Covered Taxes to the extent
    that such Covered Taxes would not have been imposed if (i) the Provider was eligible to claim an exemption from or reduction
    of such Covered Taxes, (ii) the Recipient used commercially reasonable efforts to notify the Provider of such eligibility
    reasonably in advance and (iii) the Provider failed to claim such exemption or reduction. If the Provider receives a refund
    with respect to any Covered Taxes paid or borne by the Recipient under this Agreement, the Provider shall promptly pay such
    refund to the Recipient net of costs and expenses (including any additional taxes) incurred by the Provider in connection
    with the receipt of such refund or the payment of such refund to the Recipient net of costs and expenses (including any additional
    taxes) incurred by the Provider in connection with the receipt of such refund or the payment of such refund to the Recipient.
	 	 	 
	 	(f)	Except
    as mutually agreed to in writing by Tech and Fuels, no Party or any member of its Group shall have any right of set-off or
    other similar rights with respect to (a) any amounts received pursuant to this Agreement or (b) any other amounts claimed
    to be owed to the other Party or any of member of its Group arising out of this Agreement.


 


Article
IV. TERM AND TERMINATION


 


Section
4.01 Term. This Agreement shall commence upon the Effective Date and shall terminate upon the earlier to occur of: (a) the
last date on which either Party is obligated to provide any Service to the other Party in accordance with the terms of this Agreement;
(b) the mutual written agreement of the Parties to terminate this Agreement in its entirety; and (c) 11:59 p.m., Arizona time
on December 31, 2020. Unless otherwise terminated pursuant to Section 4.02, this Agreement shall terminate with respect to each
Service as of the close of business on the last day of the Service Period for such Service.


 


Section
4.02 Early Termination.


 


	 	(a)	Without
    prejudice to the Recipient’s rights with respect to Force Majeure, the Recipient may from time to time terminate this
    Agreement with respect to the entirety of any individual Service:


 


	 	(i)	for
    any reason or no reason, at least thirty (30) days following written request to the Provider to terminate such Service, if
    the Provider agrees in writing to such termination; provided, however, that any such termination (x) may only be effective
    as of the date agreed to in writing by the Parties, (y) shall not result in a reduction of Charges with respect to calendar
    year 2019 or 2020, and (z) shall result in a reduction of Charges following calendar year 2019 or 2020 only if and to the
    extent expressly set forth in Schedule 1; or



 






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	 	(ii)	if
    the Provider of such Service has failed to perform any of its material obligations under this Agreement with respect to such
    Service, and such failure shall continue to be uncured for a period of thirty (30) days (or ninety (90) days if Provider is
    using good-faith efforts to so cure during such thirty (30) day period and thereafter) after receipt by the Provider of written
    notice of such failure from the Recipient; provided, however, that any such termination may only be effective as of the last
    day of a month; provided, further, that the Recipient shall not be entitled to terminate this Agreement with respect to the
    applicable Service if, as of the end of such period, there remains a good-faith Dispute between the Parties (undertaken in
    accordance with the terms of Section 7.02) as to whether the Provider has cured the applicable breach.


 


	 	(b)	The
    Provider may terminate this Agreement with respect to any individual Service, but not a portion thereof, at any time upon
    prior written notice to the Recipient if the Recipient has failed to perform any of its material obligations under this Agreement
    relating to such Service, including making payment of Charges for such Service when due, and such failure shall continue to
    be uncured for a period of thirty (30) days (or ninety (90) days if Recipient is using good-faith efforts to so cure during
    such thirty (30) day period and thereafter) after receipt by the Recipient of a written notice of such failure from the Provider;
    provided, however, that any such termination may only be effective as of the last day of a month; provided, further, that
    the Provider shall not be entitled to terminate this Agreement with respect to the applicable Service if, as of the end of
    such period, there remains a good-faith Dispute between the Parties (undertaken in accordance with the terms of Section 7.02)
    as to whether the Recipient has cured the applicable breach.


 


Section
4.03 Interdependencies. The Parties acknowledge and agree that: (a) there may be interdependencies among the Services being
provided under this Agreement; (b) upon the request of either Party, the Parties shall cooperate and act in good faith to determine
whether (i) any such interdependencies exist with respect to the particular Service that a Party is seeking to terminate pursuant
to Section 4.02 and (ii) in the case of such termination, the Provider’s ability to provide a particular Service in accordance
with this Agreement would be materially and adversely affected by such termination of another Service; and (c) in the event that
the Parties have determined that such interdependencies exist (and, in the case of such termination that the Provider’s
ability to provide a particular Service in accordance with this Agreement would be materially and adversely affected by such termination),
the Parties shall negotiate in good faith to amend Schedule 1 with respect to such termination of such impacted Service, which
amendment shall be consistent with the terms of comparable Services. To the extent that the Provider’s ability to provide
a Service is dependent on the continuation of a specified Service, the Provider’s obligation to provide such dependent Service
shall terminate automatically with the termination of such supporting Service.


 


Section
4.04 Effect of Termination. Upon the termination of any Service pursuant to this Agreement, the Provider of the terminated
Service shall have no further obligation to provide the terminated Service.


 


Section
4.05 Information Transmission. The Provider, on behalf of itself and the members of its Group, shall use commercially reasonable
efforts to provide or make available, or cause to be provided or made available, to the Recipient, in accordance with the Master
Distribution Agreement, any Information received or computed by the Provider for the benefit of the Recipient concerning the relevant
Service during the Service Period; provided, however, that, except as otherwise agreed to in writing by the Parties (a) the Provider
shall not have any obligation to provide, or cause to be provided, Information in any nonstandard format, (b) the Provider and
the members of its Group shall be reimbursed for their reasonable costs in accordance with the Master Distribution Agreement for
creating, gathering, copying, transporting and otherwise providing such Information, and (c) the Provider shall use commercially
reasonable efforts to maintain any such Information in accordance with the Master Distribution Agreement.


 






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Article
V. CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS


 


Section
5.01 Tech and Fuels Obligations. Subject to Section 5.04, until the five (5)-year anniversary of the Effective Date, each
of Tech and Fuels, on behalf of itself and each member of its Group, agrees to hold, and to cause its respective Representatives
to hold, in confidence, with at least the same degree of care that applies to Tech’s proprietary and confidential Information
pursuant to policies in effect as of the Effective Date, all proprietary or confidential Information concerning the other Party
or the members of its Group or their respective businesses (“Confidential Information”) that is either in its
possession (including Confidential Information in its possession prior to the Effective Date) or furnished by such other Party
or such other Party’s Group members or their respective Representatives at any time pursuant to this Agreement, and shall
not use any such Confidential Information other than for such purposes as may be expressly permitted hereunder, except, in each
case, to the extent that such Confidential Information has been (a) in the public domain or generally available to the public,
other than as a result of a disclosure by such Party or any member of its Group or any of their respective Representatives in
violation of this Agreement; (b) later lawfully acquired from other sources by such Party or any of member of its Group, which
sources are not themselves bound by a confidentiality obligation or other contractual, legal or fiduciary obligation of confidentiality
with respect to such Confidential Information; or (c) independently developed or generated without reference to or use of the
Confidential Information of the other Party or any member of its Group, in each case other than as may be required by applicable
law or order of a Governmental Authority. If any Confidential Information of a Party or any member of its Group is disclosed to
the other Party or any member of its Group in connection with providing the Services, then such disclosed Confidential Information
shall be used only as required to perform such Services.


 


Section
5.02 No Release; Return or Destruction. Other than as may be required by law or order of a Governmental Authority, each Party
agrees (a) not to release or disclose, or permit to be released or disclosed, any Confidential Information of the other Party
addressed in Section 5.01 to any other Person, except its Representatives who need to know such Confidential Information in their
capacities as such (whom shall be advised of their obligations hereunder with respect to such Confidential Information) and except
in compliance with Section 5.04, and (b) to use commercially reasonable efforts to maintain such Confidential Information in accordance
with the Master Distribution Agreement. Without limiting the foregoing, when any such Confidential Information is no longer needed
for the purposes contemplated by the Master Distribution Agreement, this Agreement or any other Ancillary Agreements, each Party
will promptly after request of the other Party either return to the other Party all such Confidential Information in a tangible
form (including all copies thereof and all notes, extracts or summaries based thereon) or notify the other Party in writing that
it has destroyed such information (and such copies thereof and such notes, extracts or summaries based thereon).


 


Section
5.03 Privacy and Data Protection Laws. Each Party shall comply with all applicable state, federal and foreign privacy and
data protection Laws that are or that may in the future be applicable to the provision of the Services under this Agreement.


 


Section
5.04 Protective Arrangements. In the event that a Party or any member of its Group either determines on the advice of its
counsel that it is required to disclose any Confidential Information of the other Party pursuant to applicable Law or receives
any request or demand under lawful process or from any Governmental Authority to disclose or provide Confidential Information
of the other Party (or any member of its Group) that is subject to the confidentiality provisions hereof, such Party shall notify
the other Party (to the extent legally permitted) as promptly as practicable under the circumstances prior to disclosing or providing
such Information and shall reasonably cooperate, at the expense of the other Party, in seeking any appropriate protective order
requested by the other Party. In the event that such other Party fails to receive such appropriate protective order in a timely
manner and the Party receiving the request or demand reasonably determines that its failure to disclose or provide such Information
shall actually prejudice the Party receiving the request or demand, then the Party that received such request or demand may thereafter
disclose or provide such Information to the extent required by such Law (as so advised by its counsel) or by lawful process or
such Governmental Authority, and the disclosing Party shall promptly provide the other Party with a copy of the Information so
disclosed, in the same form and format so disclosed, together with a list of all Persons to whom such Information was disclosed,
in each case to the extent legally permitted.


 






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Article
VI. LIMITED LIABILITY AND INDEMNIFICATION


 


Section
6.01 Limitations on Liability.


 


	 	(a)	THE
    LIABILITIES OF THE PROVIDER AND ITS GROUP MEMBERS AND THEIR RESPECTIVE REPRESENTATIVES, COLLECTIVELY, UNDER THIS AGREEMENT
    FOR ANY AND ALL ACTS OR FAILURES TO ACT IN CONNECTION HEREWITH (INCLUDING THE PERFORMANCE OR BREACH OF THIS AGREEMENT), OR
    FROM THE SALE, DELIVERY, PROVISION OR USE OF ANY AND ALL SERVICES PROVIDED UNDER OR CONTEMPLATED BY THIS AGREEMENT, WHETHER
    IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, SHALL NOT IN THE AGGREGATE EXCEED FIFTY (50%)
    PERCENT OF THE CHARGES PAID AND PAYABLE TO PROVIDER BY THE RECIPIENT PURSUANT TO THIS AGREEMENT.
	 	 	 
	 	(b)	The
    limitations in Section 6.01(a) shall not apply in respect of any Liability to the extent arising out of or in connection with
    the gross negligence, willful misconduct or fraud of or by the Party (or a member of its Group) to be charged.
	 	 	 
	 	(c)	IN
    NO EVENT SHALL EITHER PARTY, THE MEMBERS OF ITS GROUP OR THEIR RESPECTIVE REPRESENTATIVES BE LIABLE TO THE OTHER PARTY FOR
    ANY INDIRECT, PUNITIVE, EXEMPLARY, REMOTE, SPECULATIVE OR SIMILAR DAMAGES IN EXCESS OF COMPENSATORY DAMAGES OF THE OTHER PARTY
    IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT (OTHER THAN ANY SUCH LIABILITY AS PERMITTED BY THE MASTER DISTRIBUTION
    AGREEMENT) AND EACH PARTY HEREBY WAIVES ON BEHALF OF ITSELF, THE MEMBERS OF ITS GROUP AND ITS REPRESENTATIVES ANY CLAIM FOR
    SUCH DAMAGES, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE.


 


Section
6.02 Obligation to Re-Perform. In the event of any breach of this Agreement by the Provider with respect to the provision
of any Services which the Provider can reasonably be expected to re-perform in a commercially reasonable manner, the Provider
shall promptly correct in all material respects such error, defect or breach or re-perform in all material respects such Services
at the request of the Recipient and at the sole cost and expense of the Provider. Any request for re-performance in accordance
with this Section 6.02 by the Recipient must be in writing and specify in reasonable detail the particular error, defect or breach,
and such request must be made no more than one month from the later of (x) the date on which such breach occurred and (y) the
date on which such breach was reasonably discovered by the Recipient.


 


Section
6.03 Recipient Indemnity. In addition to (but not in duplication of) its other indemnification obligations (if any) under
the Master Distribution Agreement, this Agreement or any other Ancillary Agreement, but subject to the limitations set forth in
Section 6.01, the Recipient shall indemnify, defend and hold harmless the Provider, the members of the Provider’s Group
and each of their respective Representatives, and each of the successors and assigns of any of the foregoing (collectively, the
“Provider Indemnitees”), from and against any and all claims of Third Parties to the extent relating to, arising
out of or resulting from the Provider’s furnishing or failing to furnish the Services provided for in this Agreement, other
than Third Party Claims to the extent arising out of the gross negligence, willful misconduct or fraud of Provider or a member
of Provider’s Group.


 


Section
6.04 Provider Indemnity. In addition to (but not in duplication of) its other indemnification obligations (if any) under the
Master Distribution Agreement, this Agreement or any other Ancillary Agreement, but subject to the limitations set forth in Section
6.01, the Provider shall indemnify, defend and hold harmless the Recipient, the members of the Recipient’s Group and each
of their respective Representatives, and each of the successors and assigns of any of the foregoing (collectively, the “Recipient
Indemnitees”), from and against any and all Liabilities to the extent relating to, arising out of or resulting from
the sale, delivery, provision or use of any Services provided by such Provider hereunder, but only to the extent that such Liability
relates to, arises out of or results from the gross negligence, willful misconduct or fraud of Provider or a member of Provider’s
Group.


 


Section
6.05 Indemnification Procedures. The procedures for indemnification set forth in Master Distribution Agreement shall govern
claims for indemnification under this Agreement, mutatis mutandis.


 


Article
VII. MISCELLANEOUS


 


Section
7.01 Independent Contractors. The Parties each acknowledge and agree that they are separate entities, each of which has entered
into this Agreement for independent business reasons. The relationships of the Parties hereunder are those of independent contractors
and nothing contained herein shall be deemed to create a joint venture, partnership or any other relationship between the Parties
or the respective members of its Group. Employees performing Services hereunder do so on behalf of, under the direction of, and
as employees of, the Provider, and the Recipient shall have no right, power or authority to direct such employees.


 


Section
7.02 Dispute Resolution. In the event of any controversy, dispute or claim (a “Dispute”) arising out of
or relating to any Party’s rights or obligations under this Agreement (whether arising in contract, tort or otherwise),
calculation or allocation of the costs of any Service or otherwise arising out of or relating in any way to this Agreement (including
the interpretation or validity of this Agreement), such Dispute shall be resolved in accordance with the dispute resolution process
referred to in the Master Distribution Agreement.


 


Section
7.03 Incorporation by Reference. The provisions of Article IX of the Master Distribution Agreement (Miscellaneous) are incorporated
herein by reference and shall apply to this Agreement as though fully set forth herein, including the representations and warranties
of the Parties as set forth therein, provided that any reference therein to the “Agreement” shall be deemed a reference
to this Agreement.


 


[Signatures
appear on following page]


 






    	 	 	8



    	 



    

 


IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective
Date.


 


	 	Taronis
    Technologies, Inc.
	 	 	 
	 	By:	 
	 	Name:	Scott
    Mahoney
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Taronis
    Fuels, Inc.
	 	 	 
	 	By:	 
	 	Name:	Scott
    Mahoney
	 	Title:	Chief
    Executive Officer


 






    	 	 	9



    	 



    

 


Schedule
1


 


Services;
Service Period; Additional Notes


 


	Item
    or Service	 	Provider
    (Tech or Fuels or Both)	 	Service
    Period	 	Additional
    Notes
	Executive
    Office:	 	Fuels	 	13
    months	 	Subject
    to extension
	Finance:	 	Both	 	13
    months	 	Subject
    to extension
	Taxation:	 	Both	 	13
    months	 	Subject
    to extension
	Legal/Compliance:	 	Both	 	13
    months	 	Subject
    to extension
	Government
    Relations/Public Relations:	 	Both	 	13
    months	 	Subject
    to extension
	Risk:	 	Both	 	13
    months	 	Subject
    to extension
	Information
    Technology: 	 	Fuels	 	13
    months	 	Subject
    to extension
	Marketing
    & Product Management:	 	Fuels	 	13
    months	 	Subject
    to extension
	Operations:	 	None	 	13
    months 	 	Subject
    to extension
	Human
    Resources:	 	Fuels	 	13
    months	 	Subject
    to extension
	Payroll:	 	Fuels	 	13
    months	 	Subject
    to extension
	Back
    Office/Computers/Communications:	 	Fuels	 	13
    months	 	Subject
    to extension
	Websites
    and Domains:	 	Fuels	 	13
    months	 	Subject
    to extension
	Software:	 	Fuels	 	13
    months	 	Subject
    to extension
	Regulatory:	 	Both	 	13
    months	 	Subject
    to extension
	SEC
    and OTC Compliance:	 	Both	 	13
    months	 	Subject
    to extension
	Asset
    maintenance:	 	Fuels	 	13
    months	 	Subject
    to extension
	Advertising:	 	Fuels	 	13
    months	 	Subject
    to extension
	Real
    Estate:	 	Fuels	 	13
    months	 	Subject
    to extension


 








    	 	 	10