Document:

NOTE
CONVERSION AND WARRANT AMENDMENT AGREEMENT

 

This
Note Conversion Agreement (this “Agreement”) is entered into at the date of the signature of the last
party (the “Effective Date”), by and among Surna Inc., a Nevada corporation (the “Company”),
and the party listed on the signature page attached hereto (the “Note Holder” or “Holder”).

 

Recitals

 

WHEREAS,
the Company and the Note Holder entered into a certain Securities Purchase Agreement dated ____________________ as may be amended
from time to time (the “SPA”), pursuant to which the Company sold and the Note Holder purchased units
(the “Units”) each full Unit consisted of 250,000 shares of the Company’s common stock, par value
$0.00001 per share (the “Common Stock”), a 10% convertible promissory note (each a “Note”)
and a warrant to purchase shares of Common Stock (each a “Warrant”);

 

WHEREAS,
the Note Holder purchased a portion or more Units pursuant to the SPA;

 

WHEREAS,
the Note Holder desires to convert and cancel all indebtedness of the Company under the Notes held by the Note Holder, including
any accrued and unpaid interest or penalties under the Notes, as set forth on Schedule A attached hereto, and the Company
desires to issue to the Note Holder in exchange for the cancellation of all indebtedness of the Company to such Note Holder, including
any accrued and unpaid interest or penalties under the Notes, and for no additional consideration, the number of shares of Common
Stock described in Section 2(a) (collectively, the “Note Conversion Shares”); and

 

WHEREAS,
in connection with the cancellation of the Notes and issuance of the Note Conversion Shares, the Company and the Note Holder desire
to amend the Warrants to reduce the mandatory call price and the exercise price per share.

 

NOW,
THEREFORE, in consideration of the rights and benefits that they will each receive in connection with this Agreement, the
parties, intending to be legally bound, agree as follows:

 

1.       Defined
Terms. Terms capitalized herein and not otherwise defined herein shall have the meanings ascribed to such terms in the SPA.

 

2.       Cancellation
of Notes; Issuance of Note Conversion Shares.

 

a)       Note
Conversion[1]. Subject to the terms and conditions of this Agreement, on the Effective Date, the Company shall
issue to the Note Holder, in exchange for the cancellation of all indebtedness of the Company to the Note Holder, including any
accrued and unpaid interest or penalties under the Notes held by the Note Holder and for no additional consideration, such number
of Note Conversion Shares equal to the amount determined by dividing (A) the outstanding balance under the Notes plus the accrued
and unpaid interest as of the Effective Date by (B) ______________% of the VWAP of the Common Stock for the________ Trading Days
immediately preceding the Effective Date (the “Note Conversion”). From and after the Note Conversion,
the Notes converted shall solely represent the right to receive the Note Conversion Shares hereunder, no amounts shall remain
outstanding under such Notes and such Notes shall be cancelled and otherwise be of no further force or effect. For purposes hereof,
“VWAP” shall mean, for any Trading Day, the volume-weighted average price, calculated by dividing the aggregate value
of Common Stock traded on the Trading Market during regular hours (price per share multiplied by number of shares traded) by the
total volume (number of shares) of Common Stock traded on the Trading Market (or such other national securities exchange or automated
quotation system on which the Common Stock is listed) for such Trading Day, or if such volume-weighted average price is unavailable,
the market value of one share of Common Stock on such Trading Day as determined by the Board of Directors in a commercially reasonable
manner, using a volume-weighted average price method.

 

 

		1	Some Noteholders
received a cash payment as part of their settlement.

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	1	 

     

    

 

b)       Delivery
of Notes. The Note Holder shall deliver its physical Notes (or if such Notes are lost, mutilated or destroyed or the Note
Holder is not able to easily obtain the Note, a lost note affidavit and indemnity agreement in substantially the form attached
hereto as Exhibit B (each, an “Affidavit”)) to the Company for cancellation.

 

c)       Rule
144 Opinion. The Note Holder requests that the Company obtain an opinion under Rule 144 of the Securities Act on behalf of
the Note Holder. If the attorney undertaking the Rule 144 Opinion requires representations or other documentation from the Note
Holder the Note Holder will provide such representations or other documentation within five (5) Business Day of the request. The
Note Holder acknowledges that further documentation may be required to be provided by the Note Holder. Within five (5) Business
Day after receipt of all of the duly executed documentation under this Agreement the Company shall provide the share issuer with
the Opinion Letter for the removal of the restricted legend on the Note Conversion Shares.

 

d)       Delivery
of Shares. Within five (5) Business Days from the receipt of all duly executed documentation and receipt of the physical Notes
(or Affidavit, as applicable), and Shareholder Representation letters, whichever is the later, from the Note Holder, the Company
shall deliver the applicable Note Conversion Shares to the Note Holder in accordance with Section 2(a).

 

3.       Warrant
Amendment. Subject to the terms and conditions of this Agreement, on the Effective Date, the following amendments will be
automatically made to each Warrant held by the Note Holder:

 

	 	a)	Section
    2(b) of each Warrant held by the Note Holder shall be automatically amended to provide that the mandatory call price per share
    shall be reduced from $3.60 to $___________.
	 	 	 
	 	b)	Section
    2(c) of each Warrant held by the Note Holder shall be automatically amended to provide that the exercise price per share shall
    be reduced from $3.00 to $_______.

 

No
other terms of the Warrants are being amended, and the Warrants shall remain otherwise in full force and effect.

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	2	 

     

    

 

4.       Representations
and Warranties of the Company. The Company hereby represents and warrants to the Note Holder as of the date hereof as follows:

 

a)       Organization
and Standing. The Company is a corporation duly organized, validly existing under, and by virtue of, the laws of the State
of Nevada, and is in good standing under such laws.

 

b)       Corporate
Power. The Company has all requisite legal and corporate power and authority to execute and deliver this Agreement, to sell
and issue the Note Conversion Shares hereunder, and to carry out and perform its obligations under the terms of this Agreement
and the transactions contemplated hereby.

 

c)       Authorization.
All corporate action on the part of the Company, its officers, directors and shareholders necessary for the authorization, execution,
delivery and performance of this Agreement, the authorization, sale, issuance and delivery of the Note Conversion Shares and the
performance of all of the Company’s obligations hereunder have been taken or will be taken prior to or on the date hereof.
This Agreement has been duly executed by the Company and constitutes a valid and legally binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to the laws of general application relating to bankruptcy, insolvency
and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies.

 

d)       Valid
Issuance of Stock. The Note Conversion Shares, when issued, sold and delivered in compliance with the provisions of this Agreement,
will be duly and validly issued, fully paid and non-assessable and issued in compliance with applicable federal and state securities
laws. Such Note Conversion Shares will also be free and clear of any liens or encumbrances; provided, however, that the Note Conversion
Shares shall be subject to the provisions of this Agreement and restrictions on transfer under state and/or federal securities
laws. The Note Conversion Shares are not subject to any preemptive rights, rights of first refusal or restrictions on transfer.

 

e)       Offering.
Subject in part to the accuracy of the Note Holder’s representations in Section 5 (if applicable) hereof, the offer, sale
and issuance of the Note Conversion Shares in conformity with the terms of this Agreement and the Warrant Amendment constitute
transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”),
and from all applicable state securities laws.

 

f)       Governmental
Consents. No consent, approval, qualification or authority of, or registration or filing with, any local, state or federal
governmental authority on the part of the Company is required in connection with the valid execution, delivery or performance
of this Agreement, or the offer, sale or issuance of the Note Conversion Shares, or the consummation of any transaction contemplated
hereby, except (i) such filings as have been made prior to the date hereof and (ii) such additional post-closing filings as may
be required to comply with applicable federal and state securities laws (including but not limited to any Form D or Form 8-K filings),
and with applicable general corporation laws of the various states, each of which will be filed with the proper authority by the
Company in a timely manner.

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	3	 

     

    

 

5.       Representations
and Warranties of the Note Holder. The Note Holder hereby represents and warrants as of the date hereof to the Company as
follows:

 

g)       Organization
and Standing. The Note Holder is either an individual or an entity duly organized, validly existing under, and by virtue of,
the laws of the jurisdiction of its incorporation or formation, and is in good standing under such laws.

 

h)       Corporate
Power. The Note Holder has all right, corporate, partnership, limited liability company or similar power and authority to
execute and deliver this Agreement, to effect the Note Conversion hereunder, and to carry out and perform its obligations under
the terms of this Agreement and the transactions contemplated hereby.

 

i)       Authorization.
All corporate, partnership, limited liability company or similar action, as applicable on the part of the Note Holder, necessary
for the authorization, execution, delivery and performance of this Agreement, the Note Conversion, the Warrant Amendment and the
performance of all of the Note Holder’s obligations hereunder have been taken or will be taken prior to the Effective Date.
This Agreement has been duly executed by the Note Holder and constitutes a valid and legally binding obligation of the Note Holder,
enforceable against the Note Holder in accordance with its terms, subject to the laws of general application relating to bankruptcy,
insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies.

 

j)       Governmental
Consents. No consent, approval, qualification or authority of, or registration or filing with, any local, state or federal
governmental authority on the part of the Company is required in connection with the valid execution, delivery or performance
of this Agreement, or the offer, sale or issuance of the Note Conversion Shares, or the Warrant Amendment or the consummation
of any transaction contemplated hereby, except such filings as have been made prior to the date hereof.

 

k)       Own
Account. The Note Holder understands that the Note Conversion Shares are “restricted securities” and have not
been registered under the Securities Act or any applicable state securities law in reliance upon exemptions from regulation for
non-public offerings and is acquiring the Note Conversion Shares as principal for its own account and not with a view to or for
distributing or reselling such Note Conversion Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, has no present intention of distributing any such Note Conversion Shares in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons
to distribute or regarding the distribution of such Note Conversion Shares in violation of the Securities Act or any applicable
state securities law. The Note Holder agrees that the Note Conversion Shares or any interest therein will not be sold or otherwise
disposed of by the Note Holder unless the shares are subsequently registered under the Securities Act and under appropriate state
securities laws or unless the Company receives an opinion of counsel satisfactory to it that an exception from registration is
available.

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	4	 

     

    

 

l)       Note
Holder Status. The Note Holder is an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7)
or (a)(8) under the Securities Act and the Note Holder has accurately completed the Investor Questionnaire attached hereto as
Exhibit A. The Note Holder agrees to provide any additional documents and information that the Company shall reasonably
request for purposes of determining whether the Note Holder is an accredited investor. The Note Holder is not required to be,
and certifies that it is not, registered as a broker-dealer or registered representative under Section 15 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”).

 

m)       Experience
of Note Holder. The Note Holder, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Note Conversion Shares, and has so evaluated the merits and risks of such investment.

 

n)       Ability
to Bear Risk. The Note Holder understands and acknowledges that investment in the Company is highly speculative and involves
substantial risks. The Note Holder is able to bear the economic risk of an investment in the Note Conversion Shares and is able
to afford a complete loss of such investment.

 

o)       General
Solicitation. The Note Holder is not accepting the Note Conversion Shares or the Warrant Amendment as a result of any advertisement,
article, notice or other communication regarding the Note Conversion Shares or the Warrant Amendment published in any newspaper,
magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation
or general advertisement.

 

p)       Disclosure
of Information. The Note Holder has had the opportunity to receive all additional information related the Company requested
by it and to ask questions of, and receive answers from, the Company regarding the Company, including the Company’s business
management and financial affairs, and the terms and conditions of this offering of the Note Conversion Shares and Warrant Amendment.
Such questions were answered to the Note Holder’s satisfaction. The Note Holder has also had access to copies of the Company’s
filings with the U.S. Securities and Exchange Commission under the Securities Act and Exchange Act. The Note Holder believes that
it has received all the information the Note Holder considers necessary or appropriate for deciding whether to consummate the
Note Conversion and Warrant Amendment. The Note Holder understands that such discussions, as well as any information issued by
the Company, were intended to describe certain aspects of the Company’s business and prospects, but were not necessarily
a thorough or exhaustive description.

 

q)       Residency.
The residency of the Note Holder (or in the case of a partnership or corporation, such entity’s principal place of business)
is correctly set forth on the signature page attached hereto.

 

r)       Tax
Matters. The Note Holder has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences
of this investment and the transaction contemplated by this Agreement. The Note Holder understands that it (and not the Company)
shall be responsible for its own tax liability that may arise as a result of this investment and the transactions contemplated
by this Agreement.

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	5	 

     

    

 

s)       Restrictions
on Transferability; No Endorsement. The Note Holder has been informed of and understand the following:

 

	 	i.	There
    are substantial restrictions on the transferability of the Note Conversion Shares; or
	 	 	 
	 	ii.	No
    federal or state agency has made any finding or determination as to the fairness for public investment, nor any recommendation
    nor endorsement of the Note Conversion Shares.

 

t)       No
Other Representation by the Company. None of the following information has ever been represented, guaranteed or warranted
to the Note Holder, expressly or by implication by any broker, the Company, or agent or employee of the foregoing, or by any other
Person:

 

	 	i.	The
    approximate or exact length of time that the Note Holder will be required to remain a holder of the Note Conversion Shares;
	 	 	 
	 	ii.	The
    amount of consideration, profit or loss to be realized, if any, as a result of an investment in the Company; or
	 	 	 
	 	iii.	that
    the past performance or experience of the Company, its officers, directors, associates, agents, affiliates or employees or
    any other person will in any way indicate or predict economic results in connection with the plan of operations of the Company
    or the return on investment.

 

6.       Waiver.
Effective immediately upon the Note Conversion with respect to the Notes and Warrants held by the Note Holder, the Note Holder
expressly forfeits and waives any and all rights that are inconsistent with the terms of this Agreement either under the SPA,
the Warrants, the Notes or otherwise applicable to the Notes, including, but not limited to, any anti-dilution rights the Note
Holder may have with respect to the issuances of any capital stock or other securities of the Company pursuant to previous transactions
and pursuant to this Agreement.

 

7.       Trading
Restrictions. At all times during the ninety (90) day period immediately following the Effective Date (the “Leak-Out
Period”), beginning on the Effective Date, the Note Holder hereby agrees with the Company that the Note Holder shall
not sell, transfer or dispose of more than one-third of the total amount of Note Conversion Shares beneficially owned by the Note
Holder during any thirty (30) day period in such Leak-Out Period. The Note Holder agrees that if they violate this section that
this will be a Material Breach of this Agreement.

 

8.       Miscellaneous.

 

		a.	Legends.

 

	 	i.	The
    Note Holder hereby acknowledges that a legend may be placed on any certificates representing any of the Note Conversion Shares
    to the effect that the Note Conversion Shares represented by such certificates are subject to restrictions on transfer during
    the Leak-Out Period and may not be traded except in accordance with the restrictions set forth herein.

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	6	 

     

    

 

	 	ii.	The
    Note Holder hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar
    and transfer agent of the Company (along with any successor transfer agent of the Company) in order to implement the restrictions
    on transfer set forth and described in this Agreement.

 

b.       Reliance
on Representations and Warranties by the Company. The Note Holder acknowledges that the representations and warranties contained
herein are made by it with the intention that such representations and warranties may be relied upon by the Company and its legal
counsel in determining the Note Holder’s eligibility to purchase the Note Conversion Shares under applicable securities
legislation, or (if applicable) the eligibility of others on whose behalf it is contracting hereunder to purchase the Note Conversion
Shares under applicable securities legislation. The Note Holder further agrees that the representations and warranties made by
the Note Holder will survive the Note Conversion and Warrant Amendment and will continue in full force and effect notwithstanding
any subsequent disposition of the Note Holder of such Note Conversion Shares.

 

c.       Fees
and Expenses. Each party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any,
and all other expenses incurred by such party incident to the preparation, execution, delivery and performance of this Agreement.

 

d.       Entire
Agreement. This Agreement, together with the schedules and exhibits attached hereto, contain the entire agreement of the parties
with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written with respect
to such matters. To the extent that any provision of the SPA, the Notes, or the Warrants are inconsistent with the provisions
of this Agreement, the provisions of this Agreement shall control.

 

e.       Notices.
All notices, demands requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, facsimile or electronic mail, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile or electronic mail, with delivery receipt or the affidavit
of messenger, at the address, number or electronic mail address designated below (if delivered on a Business Day during normal
business hours where such notice is to be received), or the first Business Day following such delivery (if delivered other than
on a Business Day during normal business hours where such notice is to be received) or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall occur first. The addresses for such communications shall be: (i) if to the Company, to: Surna Inc., Attn: Chief
Executive Officer - Amendment, Surna 1780 55th Street, Suite C, Boulder, Colorado 80301, facsimile: +1 (303) 955-2544,
e-mail: amendment@surna.com, with a copy (which shall not constitute notice) to Duane Morris LLP, Attn: David N. Feldman, 1540
Broadway, New York, New York 10024, facsimile: +1 (212) 202 6094, e-mail: dnfeldman@duanemorris.com, and (iii) if to the Note
Holder, to the address, fax number and e-mail as indicated on the signature page attached hereto.

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	7	 

     

    

 

f.       Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and the Note Holder. No waiver with respect to any provision, condition or requirement
of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision, condition or requirement
hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any
such right.

 

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

 

h.       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns.

 

i.       No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

j.       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement and the transactions
contemplated hereby shall be governed by and construed and enforced in accordance with the internal laws of the State of Colorado,
without regard to the principals of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state
and federal courts of Colorado. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
of Colorado for the adjudication of any dispute hereunder or in connection herewith or the transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it
is not an appropriate venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and notice thereof.

 

k.       Survival.
The representations and warranties contained herein shall survive the Effective Date for the applicable statute of limitations.

 

l.       Execution.
This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered one and the same
agreement, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or by email delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature was an original thereof.

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	8	 

     

    

 

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

 

n.       Construction.
The parties hereto agree that each of them and/or their respective counsel have reviewed and have had an opportunity to revise
this Agreement and the schedules and exhibits attached hereto. This Agreement shall be construed according to its fair meaning
and not strictly for or against any party. The word “including” shall be construed to include the words “without
limitation.” In this Agreement, unless the context otherwise requires, references to the singular shall include the plural
and vice versa.

 

o.       Confidentiality.
The Note Holder agrees to maintain the confidentiality of all of the terms and conditions of this Agreement (the “Information”),
except that Information may be disclosed (a) to its and its affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the persons to whom such disclosure is made will be informed
of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal
process, (d) with the consent of the Company or (e) to the extent such Information (i) becomes publicly available other than as
a result of a breach of this Section 8(o) or (ii) becomes available to the Note Holder on a non-confidential basis from a source
other than the Company.

 

p.       Material
Breach of Agreement by Note Holder. Without limiting the damages payable to or the rights provided to the Company under this
Agreement. The Note Holder agrees that in the event that the Note Holder materially breaches this Agreement that in addition to
any damages and legal expense actually incurred by the Company and any other amounts owed to the Company in accordance with this
agreement that the Note Holder will pay the Company, the actual legal expenses of the Company in enforcing this agreement and
the sum equal to 25% of the VWAP of the Common Stock as calculated in accordance with section 2(a). The Note Holder further acknowledges
that in the event that they materially breach this Agreement that the Warrants issued to the Note Holder as amended under this
Agreement will be null and void and the Note Holder shall be required to immediately return the Warrant to the Company.

 

q.       Acknowledgment
of Concurrent Negotiations. The Note Holder acknowledges that they have been informed that the Company is currently negotiating
with other holders of the Notes and Warrants and that the terms being offered to those holders may be more favorable than the
terms set forth in this Agreement.

 

r.       Offer
to Close. This Offer shall remain open until ____________________.

 

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

 

[Signature
Page Follows]

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	9	 

     

    

 

IN
WITNESS WHEREOF, the parties have caused this Note Conversion and Warrant Amendment Agreement to be duly executed and delivered
as of the date and year first written above.

 

	 	“Company”
	 	SURNA
    INC.
	 	 
	 	By:	 
	 	Name:	Trent
    Doucet
	 	Title:	CEO
	 	Date:	 

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	10	 

     

    

 

IN
WITNESS WHEREOF, the parties have caused this Note Conversion and Warrant Amendment Agreement to be duly executed and delivered
as of the date and year first written above.

 

	 	“Note
    Holder”
	 	 
	 	Address
    for Notice: _____________________
	 	______________________________________
	 	______________________________________
	 	Facsimile:
    _____________________________
	 	E-mail
    address: ________________________
	 	Dated:
    _______________________________
	 	 
	 	By
    an individual:
	 	 
	 	By:
    ___________________________________
	 	Printed
    Name: __________________________
	 	State
    Residency: ________________________
	 	 
	 	If
    by an entity:
	 	 
	 	By:
    ___________________________________
	 	Name
    of Entity: _________________________
	 	Printed
    Name: __________________________
	 	Title:
    __________________________________
	 	Principal
    Place of Business: ________________

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	11	 

     

    

 

SCHEDULE
A

 

	Note
    Holder Name	 	Principal
    of Note	 	Interest	 	Total
    Outstanding
	 	 	 	 	 	 	 

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	12	 

     

    

 

EXHIBIT
A

 

ACCREDITED
INVESTOR QUESTIONNAIRE

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	13	 

     

    

 

EXHIBIT
B

 

LOST
NOTE AFFIDAVIT AND INDEMNITY AGREEMENT

 

    	Initial Note Holder _________	 	Initial Surna _________
	 	14PURCHASE
AGREEMENT

 

 

 

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

  

    	 

    	 

    

 

For
Surna Estimate Number:    081716C-1B

 

Purchaser
Info:

	Full
    Legal Name (Company or Individual)	Phone:	Fax:
	Sante
    Veritas Therapeutics, Inc	 	 
	Doing
    Business as:	Email
    Address:
	 	 
	Address
    I City I State I Zip:	 	Country:
    
	507-595
    Howe St Vancouver, BC V6C-2T5	 	CANADA

	Company
    Type:	State
    / Providence Licensed in: 
	[X]
    CORPORATION [  ] PROPRIETORSHIP       [  ] PARTNERSHIP      [  ]
    FRANCHISE       [  ] OTHER	BC

	Federal
    Tax ID# NA 	Year
    Established:	At
    Present Location Since:

 

Ship
to:

	Business
    Name: Same as Purchaser	 	Contact
    Name:	 
	Info	 	 	 
	Phone:	Email:	 	Address
                                         Same as Above:

        

	 	 	 	    [  ]
    Yes (Don’t fill out address below.)
	Address
    I   City I   State I   Zip:	Country:

 

Owner’s
Information:

	Owner’s
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	Purchase
    Price: $834,270.00	Estimated
    Shipping Costs: Included
	 	 
	 	 
	Purchase
    Agreement Date: 2/21/17	 
	 	 

 

 

 

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

 

    	 

    	 

    

 

Subject
to the provisions of this Purchase Agreement (“Agreement”), Surna, Inc. (“Seller”) agrees to sell to the
entity or entities identified herein (collectively, the “Buyer”) and Buyer agrees to purchase and accept from Seller
the equipment (“Equipment”), together with any services (“Services”) as described in the proposal (“Proposal”).

 

1.
ACCEPTANCE

 

The
Agreement is subject to acceptance in writing by the party to whom this offer is made or an authorized agent delivered to Seller
within 30 days from the date of the Agreement. If the Buyer does not accept the Agreement but places an order, without the addition
of any other terms and conditions of sale or any other modification, Buyer’s order shall be deemed acceptance of the Agreement
subject to Seller’s terms and conditions. Buyer’s acceptance of the Equipment will in any event constitute an acceptance
by Buyer of Seller’s terms and conditions. This Agreement may be subject to credit approval by Seller. Upon disapproval
of credit, Seller may delay or suspend performance or, at its option, renegotiate prices and/or terms and conditions with Buyer.
If Seller and Buyer are unable to agree on such revisions, this Agreement shall be cancelled, prior to execution of agreement,
without any liability.

 

2.
EQUIPMENT AND OR SERVICE

 

The
Equipment and or service shall conform in all respects to the specifications set forth in the Proposal referenced above in the
Purchase and Services Agreement Section.

 

3.
AGREEMENT PRICE

 

The
total Agreement Price for the Equipment, and Services, if applicable, to be provided by Seller as described on the Purchase and
Services Agreement (Agreement Price). Following acceptance without addition of any other terms and condition of sale or any other
modification by Buyer, the prices stated are firm provided that notification of release for immediate production and shipment
is received at Seller’s factory not later than 4 months from order acceptance. If such release is received later than 4
months from order acceptance date, prices will be increased a straight 1% (not compounded) for each 1-month period (or part thereof)
beyond the 3-month firm price period up to the date of receipt of such release. If such release is not received within 6 months
after the date of order acceptance, the prices are subject to renegotiation or at Seller’s option, the order will be cancelled.
Any delay in shipment caused by Buyer’s actions will subject prices to increase equal to the percentage increase in list
prices during that period of delay and Seller may charge Buyer with incurred storage fees. In no event will prices be decreased.
All prices include packaging in accordance with Seller’s standard procedures. Charges for special packaging, crating, or
packing are the responsibility of Buyer.

 

4.
TERMS OF PAYMENT AND CANCELLATION POLICY

 

Unless
otherwise stated herein, payment schedule will be as follows:

 

Five
percent (5%) deposit payment, totaling $41,713.50, will be invoiced and is due upon acceptance of Agreement. Upon receipt of deposit
payment, engineering drawings will be initiated and completed through Phase 2 of the accompanying Engineering Scope of Work.

 

 

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

 

    	 

    	 

    

 

Fifty
percent (50%) of remaining agreement price, totaling $396,278.25 is due prior to commencement of manufacturing. This payment will
be invoiced upon request and will be due no later than June 15, 2017.

 

Twenty-five
percent (25%) of remaining agreement price, totaling $198,139.13 will be invoiced and is due six weeks (6 weeks) prior to shipment
of chillers. This deposit payment will release air handlers, dehumidifiers, and all other components except chillers for shipment.

 

Final
payment of twenty-five percent (25%) of agreement price, totaling $198,139.12, will be invoiced and is due immediately prior to
chiller shipment.

 

In
the event that Buyer fails to receive building permit, Buyer may cancel this contract at any time after execution of contract
and prior to manufacturing deposit payment. In the event that cancellation is initiated under these terms, Buyer agrees that engineering
work has been completed and therefore engineering deposit shall be forfeited.

 

Should
building permits be delayed past 5/31/2017, Buyer may extend payment due dates; however, price is subject to increase as outlined
in Section 3 (Agreement Price) if manufacturing deposit is not received prior to June 15, 2017.

 

Once
manufacturing deposit is received, buyer has five (5) business days to cancel and obtain refund of manufacturing deposit less
ten percent (10%) for administrative costs. After five (5) business days, any cancellation will result in forfeiture of the deposit.

 

Remaining
invoice(s), if any, will be submitted on a percent complete basis, with payment due upon receipt of invoice. Buyer agrees that
shipment of goods may or may not, at Seller’s discretion, be initiated prior to receipt of full payment of completed goods
and that payment is considered received upon clearance of payment at seller’s bank. Buyer agrees that remaining balance
will be paid promptly upon invoice and understands that goods subject to payments over 30 days from invoice date will be subject
to storage fees equivalent to 2% of the total order as well as a service charge equal to the lesser of the maximum allowable legal
interest rate or 2% of the amount due at the end of each month. Unless otherwise agreed in writing, a balance due and unpaid 60
days from invoice date may be subject to order cancellation and forfeiture of deposit at seller’s sole discretion. Buyer
shall pay all costs (including attorneys’ fees) incurred by Seller in attempting to collect amounts due and otherwise enforcing
these terms and conditions. If requested, Seller will provide appropriate lien waivers upon receipt of payment. Seller may at
any time decline to ship, make delivery, or perform work except upon receipt of payment or upon other terms and conditions satisfactory
to Seller

 

  

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

 

    	 

    	 

    

 

5.
COMPREHENSIVE WARRANTY

 

For
equipment manufactured by Seller, Seller shall warrant the equipment until the earlier of twelve (12) months from initial start-up
or eighteen (18) months from date of shipment against failure due to defects in material and/or manufacturing to the capacities
and ratings set forth in Company’s catalogs and bulletins (“Warranty”). Equipment, material, and or parts that
are not manufactured directly by Seller are not warranted by Seller and carry such warranties as may be extended by the respective
manufacturer. Exclusions from this Warranty include damage or failure arising from: wear and tear; corrosion, erosion, deterioration;
modifications made by others to the Equipment; repairs or alterations by a party other than Company that adversely affects the
stability or reliability of the Equipment; vandalism; neglect; accident; adverse weather or environmental conditions; abuse or
improper use; improper installation; commissioning by a party other than Seller; unusual physical or electrical or mechanical
stress; operation with any accessory, equipment or part not specifically approved by Seller; refrigerant not recommended or supplied
by Seller; and or lack of proper start-up or maintenance as recommended by Seller. Seller shall not be obligated to pay for the
cost of lost refrigerant or lost product or any other direct, indirect, or consequential damages. Seller’s obligations and
liabilities under this Warranty are limited to furnishing replacement equipment or OEM parts, at its option, FCA (Incoterms 2000)
factory or warehouse (f.o.b. factory or warehouse for US domestic purposes) at Seller-designated shipping point, freight-allowed
to Seller’s warranty agent’s stock location, for all non-conforming Seller-manufactured Equipment which have been
returned by Buyer to Seller. Returns must have prior written approval by Seller and are subject to restocking and replacement
charges where applicable. No warranty liability whatsoever shall attach to Seller until Buyer’s complete order has been
paid for in full and Seller’s liability under this Warranty shall be limited to the purchase price of the Equipment shown
to be defective. Additional warranty and service protection is available on an extra-cost basis and must be in writing and agreed
to by an authorized signatory of the Seller. The warranty excludes: (a) labor, transportation and related costs incurred by Buyer;
(b) reinstallation costs of repaired equipment; (c) reinstallation costs of replacement equipment;

 

(d)
consequential damages of any kind; and, (e) reimbursement for loss caused by interruption of service.

 

EQUIPMENT
MANUFACTURED BY SELLER THAT INCLUDES A REQUIRED START-UP AND SOLD IN NORTH AMERICA WILL NOT BE WARRANTED BY COMPANY UNLESS SELLER
OR ITS AUTHORIZED AGENT PERFORMS THE EQUIPMENT STARTUP. SELELR MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING
PREVENTION OF MOLD/MOULD, FUNGUS, BACTERIA, MICROBIAL GROWTH, OR ANY OTHER CONTAMINATES. EXCEPT FOR SELLER’S WARRANTY EXPRESSLY
SET FORTH HEREIN, SELLER DOES NOT MAKE, AND HEREBY EXPRESSLY DISCLAIMS, ANY WARRANTIES, EXPRESS OR IMPLIED CONCERNING ITS PRODUCTS,
EQUIPMENT OR SERVICES, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF DESIGN, MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE,
OR OTHERS THAT ARE ALLEGED TO ARISE FROM COURSE OF DEALING OR TRADE.

 

6.
SECURITY INTEREST

 

Buyer
agrees that, unless Buyer makes full payment in advance, Seller will have a purchase money security interest in all Equipment
to secure payment in full of all amounts due Seller and its order for the Equipment, together with these terms and conditions,
form a security agreement (as defined by the UCC in the United States and as defined in the Personal Property Security Act in
Canada). Buyer shall keep the Equipment free of all taxes and encumbrances, shall not remove the Equipment from its original installation
point and shall not assign or transfer any interest in the Equipment until all payments due Seller have been made. The purchase
money security interest granted herein attaches upon Seller’s acceptance of Buyer’s order and on receipt of the Equipment
described in the accepted Proposal but prior to its installation. The parties have no agreement to postpone the time for attachment
unless specifically noted in writing on the accepted order. Buyer will have no rights of set off against any amounts, which become
payable to Seller under this Agreement or otherwise.

 

 

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

 

    	 

    	 

    

 

7.
TITLE AND RISK OF LOSS

 

Title
to and risk of loss of the Equipment shall pass to Buyer upon shipment; Buyer assumes title and control of the goods upon signature
by the carrier on the bill of lading for the equipment. Seller shall pay the shipping fees and invoice the Buyer as defined in
Section 4 of this Agreement.

 

8.
TAXES

 

Buyer
is required to pay all taxes in connection with the sale, purchase, delivery, and use of any of the goods (except for taxes based
upon Seller’s net income). The Agreement Price does not include any present or future foreign, federal, state, or local
property, license, privilege, sales, use, excise, value added, gross receipts, or other like taxes or assessments. Such amounts
will be itemized separately to Buyer, who will make prompt payment to Seller. Buyer agrees that shipment of goods may be delayed
until Seller’s receipt of full payment including any required taxes.

 

9.
DELIVERY AND DELAYS

 

Delivery
dates are approximate and not guaranteed. Seller will use commercially reasonable efforts to deliver the Equipment on or before
the estimated delivery date will notify Buyer if the estimated delivery dates cannot be honored, and will deliver the Equipment
and services as soon as practicable thereafter. In no event will Seller be liable for any damages or expenses caused by delays
in delivery.

 

10.
PERFORMANCE

 

Seller
shall be obligated to furnish only the Equipment described in the Proposal and in submittal data (if such data is issued in connection
with the order). Seller may rely on the acceptance of the Proposal, in submittal data, and in approved drawings as acceptance
of the suitability of the Equipment for the particular project or location. Unless specifically stated in the Proposal, compliance
with any local building codes or other laws or regulations relating to specifications or the location, use, or operation of the
Equipment is the sole responsibility of Buyer. If Equipment is tendered that does not fully comply with the provisions of this
Agreement, and Equipment is rejected by Buyer, Seller will have the right to cure within a reasonable time after notice thereof
by substituting a conforming tender whether or not the time for performance has passed.

 

11.
FORCE MAJEURE

 

Seller’s
duty to perform under this Agreement and the Equipment prices are contingent upon the non- occurrence of an Event of Force Majeure.
An “Event of Force Majeure” shall mean any cause or event beyond the control of Seller. Without limiting the foregoing,
“Event of Force Majeure” includes: acts of God; acts of terrorism, war or the public enemy; flood; earthquake; tornado;
storm; fire; civil disobedience; pandemic insurrections; riots; labor/labour disputes; labor/labour or material shortages; sabotage;
restraint by court order or public authority (whether valid or invalid); and action or non-action by or inability to obtain or
keep in force the necessary governmental authorizations, permits, licenses, certificates or approvals if not caused by Seller;
and the requirements of any applicable government in any manner that diverts either the material or the finished product to the
direct or indirect benefit of the government. If the Seller shall be unable to carry out any material obligation under this Agreement
due to an Event of Force Majeure, this Agreement shall at Seller’s election (i) remain in effect but Seller’s obligations
shall be suspended until the uncontrollable event terminates or (ii) be terminated upon 10 days’ notice to Buyer, in which
event Buyer shall pay Seller for all parts of the Work furnished to the date of termination.

 

 

 

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

 

    	 

    	 

    

 

12.
INDEMNITY

 

To
the fullest extent permitted by law, Seller and Buyer shall indemnify, defend, and hold harmless each other from any and all claims,
actions, costs, expenses, damages, and liabilities, including reasonable attorneys’ fees, resulting from death or bodily
injury or damage to real or personal property, to the extent caused by the negligence or misconduct of their respective employees
or other authorized agents in connection with their activities within the scope of this Agreement. Neither party shall indemnify
the other against claims, damages, expenses, or liabilities to the extent attributable to the acts or omissions of the other party.
If the parties are both at fault, the obligation to indemnify shall be proportional to their relative fault. The duty to indemnify
will continue in full force and effect, notwithstanding the expiration or early termination hereof, with respect to any claims
based on facts or conditions that occurred prior to expiration or termination.

 

13.
BUYER BREACH

 

Each
of the following events or conditions shall constitute a breach by Buyer and shall give Seller the right, without an election
of remedies, to terminate this Agreement or temporarily suspend performance by delivery of written notice: (a) Any failure by
Buyer to pay amounts when due; or (b) any general assignment by Buyer for the benefit of its creditors, or if Buyer becomes bankrupt
or insolvent or takes the benefit of any statute for bankrupt or insolvent debtors, or makes or proposes to make any proposal
or arrangement with creditors, or if any steps are taken for the winding up or other termination of Buyer or the liquidation of
its assets, or if a trustee, receiver, or similar person is appointed over any of the assets or interests of Buyer; (c) Any representation
or warranty furnished by Buyer in connection with this Agreement is false or misleading in any material respect when made; or
(d) Any failure by Buyer to perform or comply with any material provision of this Agreement. Buyer shall be liable to the Seller
for all Equipment furnished and all damages sustained by Seller (including lost profit and overhead).

 

14.
LIMITATION OF LIABILITY

 

The
Seller will not be liable for any indirect, special, consequential, or punitive damages (including lost profits) arising out of
or relating to this Agreement or the transactions it contemplates (whether for breach of contract, tort, negligence, or other
form of action) and irrespective of whether the Seller has been advised of the possibility of any such damage. In no event will
the Seller’s liability exceed the price the Buyer paid to the Seller for the specific goods and services provided by the
Seller giving rise to the claim or cause of action.

 

15.
LIMITATION OF ACTIONS

 

No
action arising out of or relating to this Agreement or the transactions it contemplates may be commenced against the seller more
than twelve (12) months after the basis for such claim could reasonably have been discovered.

 

 

 

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

 

    	 

    	 

    

 

16.
INTELLECTUAL PROPERTY; PATENT INDEMNITY

 

Seller
retains all ownership, license, and other rights to all patents, trademarks, copyrights, trade secrets, and other intellectual
property rights related to the Equipment, and, except for the right to use the Equipment sold, Buyer obtains no rights to use
any such intellectual property. Seller agrees to defend any suit or proceeding brought against Buyer so far as such suit or proceeding
is solely based upon a claim that the use of the Equipment provided by Seller constitutes infringement of any patent of the United
States of America, provided Seller is promptly notified in writing and given authority, information, and assistance for defense
of same. Seller will, at its option, procure for Buyer the right to continue to use said Equipment, or modify it so that it becomes
non-infringing, or replace same with non-infringing Equipment, or to remove said Equipment and to refund the purchase price. The
foregoing will not be construed to include any Agreement by Seller to accept any liability whatsoever in respect to patents for
inventions including more than the Equipment furnished hereunder, or in respect of patents for methods and processes to be carried
out with the aid of said Equipment. The provision of Equipment by Seller does not convey any license, by implication, estoppel,
or otherwise, under patent claims covering combinations of said Equipment with other devices or elements. The foregoing states
the entire liability of Seller with regard to patent infringement. Notwithstanding the provisions of this paragraph, Buyer will
hold Seller harmless against any expense or loss resulting from infringement of patents or trademarks arising from compliance
with Buyer’s designs or specifications or instructions.

 

17.
CANCELLATION

 

Equipment
is specially manufactured in response to orders. An order placed with and accepted by Seller cannot be delayed, canceled, suspended,
or extended except with Seller’s written consent and upon written terms accepted by Seller that will reimburse Seller for
and indemnify Seller against loss and provide Seller with a reasonable profit for its materials, time, labor, services, use of
facilities, and otherwise. Buyer will be obligated to accept any Equipment shipped, tendered for delivery, or delivered by Seller
pursuant to the order prior to any agreed delay, cancellation, suspension, or extension of the order. Any attempt by Buyer to
unilaterally revoke, delay, or suspend acceptance for any reason whatsoever after it has agreed to delivery of or accepted any
shipment shall constitute a breach of this Agreement. For purposes of this paragraph, acceptance occurs by any waiver of inspection,
use, or possession of Equipment, payment of the invoice, or any indication of exclusive control exercised by Buyer.

 

18.
CLAIMS

 

Seller
will consider claims for concealed shortages in shipments or rejections due to failure to conform to an order only if such claims
or rejections are made in writing within fifteen (15) days of delivery and are accompanied by the packing list and, if applicable,
the reasons in detail why the Equipment does not conform to Buyer’s order. Upon receiving authorization and shipping instructions
from authorized personnel of Seller, Buyer may return rejected Equipment, transportation charges prepaid, for replacement. Seller
may charge Buyer any costs resulting from the testing, handling, and disposition of any Equipment returned by Buyer which are
not found by Seller to be nonconforming. Claims for Equipment damaged during shipment are not covered under the warranty provision
stated herein. Seller agrees to promptly replace such damaged equipment only in the event that the Purchaser rejects or properly
notes damaged equipment upon delivery by freight carrier. Purchaser agrees to carefully inspect all incoming shipments and accepts
ownership of damaged equipment accepted at the time of delivery.

 

 

 

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

 

    	 

    	 

    

 

19.
EXPORT LAWS

 

The
obligation of Seller to supply Equipment under this Agreement is subject to the ability of Seller to supply such items consistent
with applicable laws and regulations of the United States and other governments. Seller reserves the right to refuse to enter
into or perform any order, and to cancel any order, under this Agreement if Seller in its sole discretion determines that performance
of the transaction to which such order relates would violate any such applicable law or regulation. Buyer will pay all handling
and other similar costs from Seller’s factories including the costs of freight, insurance, export clearances, import duties,
and taxes. Buyer will be “exporter of record” with respect to any export from the United States of America and will
perform all compliance and logistics functions in connection therewith and will also comply with all applicable laws, rules, and
regulations. Buyer understands that Seller and/or the Equipment are subject to laws and regulations of the United States of America
which may require licensing or authorization for and/or prohibit export, re-export or diversion of Seller’s Equipment to
certain countries, and agrees it will not knowingly assist or participate in any such diversion or other violation of applicable
United States of America or individual state laws and regulations. Buyer agrees to hold harmless and indemnify Seller for any
damages resulting to Buyer or Seller from a breach of this paragraph by Buyer.

 

20.
GENERAL

 

Except
as provided below, to the maximum extent provided by law, this Agreement is made and shall be interpreted and enforced in accordance
with the laws of the state of Colorado without regard to its conflict of law principles that might otherwise call for the application
of a different state’s law, and not including the United Nations Convention on Contracts for the International Sale of Goods.
Any action or suit arising out of or related to this Agreement must be commenced within one year after the cause of action has
accrued. To the extent the Equipment is being used at a site owned and or operated by any agency of the Federal Government, determination
of any substantive issue of law shall be according to the Federal common law of Government contracts as enunciated and applied
by Federal judicial bodies and boards of contract appeals of the Federal Government. This Agreement contains all of the agreements,
representations and understandings of the parties and supersedes all previous understandings, commitments or agreements, oral
or written, related to the subject matter hereof. This Agreement may not be amended, modified, or terminated except by a writing
signed by the parties hereto. No documents shall be incorporated herein by reference except to the extent Seller is a signatory
thereon. If any term or condition of this Agreement is invalid, illegal, or incapable of being enforced by any rule of law, all
other terms and conditions of this Agreement will nevertheless remain in full force and effect as long as the economic or legal
substance of the transaction contemplated hereby is not affected in a manner averse to any party hereto. Buyer may not assign,
transfer, or convey this Agreement, or any part hereof, or its right, title, or interest herein, without the written consent of
the Seller. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of Buyer’s permitted
successors and assigns.

 

 

 

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

 

    	 

    	 

    

 

21.
LIMITED WAIVER OF SOVEREIGN IMMUNITY

 

If
Buyer is an Indian tribe (in the U.S.) or a First Nation or Band Council (in Canada), Buyer, whether acting in its capacity as
a government, governmental entity, a duly organized corporate entity or otherwise, for itself and for its agents, successors,
and assigns: (1) hereby provides this limited waiver of its sovereign immunity as to any damages, claims, lawsuit, or cause of
action (herein “Action”) brought against Buyer by Seller and arising or alleged to arise out of the furnishing by
Seller of any product or service under this Agreement, whether such Action is based in contract, tort, strict liability, civil
liability or any other legal theory; (2) agrees that jurisdiction and venue for any such Action shall be proper and valid (a)
if Buyer is in the U.S., in any state or United States court located in the state in which Seller is performing this Agreement
or (b) if Buyer is in Canada, in the superior court of the province or territory in which the work was performed; (3) expressly
consents to such Action, and waives any objection to jurisdiction or venue; (4) waives any requirement of exhaustion of tribal
court or administrative remedies for any Action arising out of or related to this Agreement; and (5) expressly acknowledges and
agrees that Seller is not subject to the jurisdiction of Buyer’s tribal court or any similar tribal forum, that Buyer will
not bring any action against Seller in tribal court, and that Buyer will not avail itself of any ruling or direction of the tribal
court permitting or directing it to suspend its payment or other obligations under this Agreement. The individual signing on behalf
of Buyer warrants and represents that such individual is duly authorized to provide this waiver and enter into this Agreement
and that this Agreement constitutes the valid and legally binding obligation of Buyer, enforceable in accordance with its terms.

 

22.
COUNTERPARTS AND ELECTRONIC DOCUMENTS

 

This
Agreement may be executed and delivered in counterparts, including by a facsimile or an electronic transmission thereof, each
of which shall be deemed an original, but all together shall constitute but one and the same Agreement. Any document generated
by the parties with respect to this Agreement, including this Agreement, may be imaged and stored electronically and introduced
as evidence in any proceeding as if original business records. Neither party will object to the admissibility of such images as
evidence in any proceeding on account of having been stored electronically.

 

 

 

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

 

    	 

    	 

    

 

BY
SIGNING BELOW, you acknowledge you have the vested authority to acquiesce to the Terms and Conditions referencing the above-listed
Suma estimate and also the Statement of Work for Engineering Design & Implementation Support (“Agreement for Professional
Services”) referencing the above-listed Suma estimate and hereby approve of the transaction as contemplated in this purchase
order. This Purchase Agreement (“Agreement”) is non-revocable and your signature shall serve as commitment to this
Agreement and be binding upon the parties described herein, their heirs and assigns.

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their duly authorized officers as of the
date first written below.

 

	AGREED
    AND ACCEPTED	 	AGREED
    AND ACCEPTED
	 	 	 
	SURNA
    INC.	 	BUYER:
    Sante Veritas Therapeutics, Inc
	 	 	 	 	 
	 -
    Signature:	/s/
    Brandy Keen	 	 -
    Signature:	/s/
    Suzanne Wood
	 	 	 	 	 
	 -
    Print Name: 	Brandy
    Keen	 	 -
    Print Name: 	Suzanne
    Wood
	 	 	 	 	 
	 -
    Title:	Vice
    President of Sales	 	 -
    Title: 	Chief
    Financial Officer
	 	 	 	 	 
	 -
    Date: 	2/21/17	 	 -
    Date: 	2/21/17

 

 

Surna,
Inc. | 1780 55th St. Boulder, CO 80301 | Phone: (303) 993-5271 |sales@surna.com

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