Document:

Exhibit
10.1

 

FORM
OF

COMMON
STOCK PURCHASE AGREEMENT

 

This
COMMON STOCK PURCHASE AGREEMENT (this “Agreement”) is made by and among Taronis Fuels, Inc., a Delaware corporation
(the “Company”), and the Purchaser whose name is set forth on the signature page hereto (the “Purchaser”).

 

RECITALS

 

WHEREAS,
the Company and the Purchaser are executing and delivering this Agreement in accordance with and in reliance upon the exemption from
securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”),
and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission
(the “Commission”) under the Securities Act; and

 

WHEREAS,
the Company is offering up to an aggregate of $16,000,000 of shares of its common stock, par value $0.000001 per share (the “Common
Stock”) pursuant to the confidential private placement memorandum, dated May 21, 2021 (the “Private Placement Memorandum”),
as more fully described and set forth in the Private Placement Memorandum.

 

AGREEMENT

 

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

 

    	 

     

    

 

ARTICLE
I

Purchase and Sale of Common Stock

 

Section
1.1 Purchase and Sale of Common Stock. Upon the following terms and conditions, the Company is offering to the Purchaser the number
of shares of Common Stock set forth opposite the Purchaser’s name on the Purchaser’s signature page hereto. The shares of
Common Stock to be issued pursuant to the terms hereof are sometimes referred to herein as the “Shares”.

 

Section
1.2 Purchase Price and Closing. Subject to the terms and conditions hereof, the Company agrees to issue and sell to the Purchaser
and, in consideration of and in express reliance upon the representations, warranties, covenants, terms and conditions of this Agreement,
the Purchaser agrees to purchase the Shares for $3.00 per Share for the aggregate purchase price set forth on the signature page hereto
(the “Purchase Price”). The closing (the “Closing”) of the purchase and sale of the shares of Common
Stock to be acquired by the Purchaser from the Company under this Agreement shall take place remotely at such time as the parties hereto
have executed this Agreement and all of the conditions set forth in Article IV hereof
and applicable to the Closing shall have been fulfilled or waived in accordance herewith (the “Closing Date”). The
Purchaser shall deliver to TMI Trust Company (the “Escrow Agent”), via wire transfer of immediately available funds
equal to the Purchase Price, and the Company shall deliver the Shares to the Purchaser.

 

Section
1.3 Acceptance of Purchase and Issuance of Shares. It is understood and agreed that the Company shall have the sole right, at
its complete discretion, to accept or reject this purchase and sale of Shares, in whole or in part, for any reason and that the same
shall be deemed to be accepted by the Company only when it is signed by a duly authorized officer of the Company and delivered to the
Purchaser at the Closing referred to in Section 1.2 hereof. Subscriptions need not be accepted in the order received, and the Shares
may be allocated among purchasers. Notwithstanding anything in this Agreement to the contrary, the Company shall have no obligation to
issue Shares to a person who is a resident of a jurisdiction in which the issuance of Shares to such person would constitute a violation
of the securities, “blue sky” or other similar laws of such jurisdiction.

 

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ARTICLE
II

Representations and Warranties

 

Section
2.1 Representations and Warranties of the Company. Except as set forth in the Private Placement Memorandum, the Company hereby
represents and warrants to the Purchaser as follows:

 

(a)
Organization, Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Delaware and has the requisite corporate power to own, lease and operate its properties and assets and to conduct
its business as it is now being conducted. The Company is duly qualified to do business and is in good standing in every jurisdiction
in which the nature of the business conducted or property owned by it makes such qualification necessary except for any jurisdiction(s)
(alone or in the aggregate) in which the failure to be so qualified would not reasonably be expected to have a material adverse effect
on the business, operations, properties, or condition (financial or other) of the Company and its subsidiaries, taken as a whole, and/or
any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability of the Company to perform
any of its obligations under this Agreement (a “Material Adverse Effect”).

 

(b)
Corporate Power; Authority and Enforcement. The Company has the requisite corporate power and authority to enter into and perform
this Agreement, the Registration Rights Agreement in the form attached hereto as Exhibit A (the “Registration Rights
Agreement”, the engagement agreement dated as of April 28, 2021 by and between the Company and Kingswood Capital Markets, division
of Benchmark Investments, Inc. (the “Placement Agent”) as placement agent (the “Placement Agency Agreement”
and, together with the Registration Rights Agreement and this Agreement, the “Transaction Documents”), and to issue
and sell the Shares in accordance with the terms hereof. The execution, delivery and performance of the Transaction Documents by the
Company and the consummation by it of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary
corporate action, and no further consent or authorization of the Company or its Board of Directors (the “Board”) or
stockholders is required. Each of the Transaction Documents constitutes, or shall constitute when executed and delivered, a valid and
binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws
relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general
application.

 

    	3

     

    

 

(c)
Capitalization. The authorized capital stock of the Company and the shares thereof currently issued and outstanding as of the
date hereof is set forth in the Private Placement Memorandum. Except as set forth in the Private Placement Memorandum, all of the issued
and outstanding shares of the Common Stock have been duly and validly authorized. Except as set forth in the Private Placement Memorandum,
there are no contracts, commitments, understandings, or arrangements by which the Company is or may become bound to issue additional
shares of capital stock of the Company or options, securities or rights convertible into shares of capital stock of the Company.

 

(d)
Issuance of Shares. The Shares to be issued at the Closing will conform in all material respects to the description thereof set
forth in the Private Placement Memorandum and have been duly authorized by all necessary corporate action and the Shares, when paid for
or issued in accordance with the terms hereof, will be validly issued and outstanding, fully paid and nonassessable and, immediately
after the Closing, the Purchaser will be the owners of all of such Shares and have good and valid title to all of such Shares, free and
clear of all encumbrances, except as may be imposed under federal and state securities laws.

 

(e)
Actions Pending. There is no action, suit, claim, investigation, arbitration, alternate dispute resolution proceeding or any other
proceeding pending or, to the knowledge of the Company, threatened against or involving the Company which questions the validity of this
Agreement or any of the other Transaction Documents or the transactions contemplated hereby or thereby or any action taken or to be taken
pursuant hereto or thereto.

 

(f)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated herein and therein do not and will not (i) violate any provision of the Company’s Amended
and Restated Certificate of Incorporation, as amended and in effect on the date hereof (the “Certificate of Incorporation”),
or the Company’s Bylaws, as amended and in effect on the date hereof (the “Bylaws”), (ii) conflict with, or
constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights
of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease
agreement, instrument or obligation to which the Company is a party or by which it or its properties or assets are bound, (iii) create
or impose a lien, mortgage, security interest, pledge, charge or encumbrance of any nature on any property of the Company under any agreement
or any commitment to which the Company is a party or by which the Company is bound or by which any of its respective properties or assets
are bound, or (iv) result in a violation of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations) applicable to the Company or any of its subsidiaries or by which any property
or asset of the Company or any of its subsidiaries are bound or affected, provided, however, that, excluded from the foregoing
in clauses (ii) and (iii) are such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would
not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

 

    	4

     

    

 

(g)
Certain Fees. No brokers fees, finder’s fees or financial advisory fees or commissions will be payable by the Company with
respect to the transactions contemplated by this Agreement and the other Transaction Documents, except for the commission payable to
the Placement Agent pursuant to the Placement Agency Agreement.

 

(h)
Securities Act of 1933. Assuming the accuracy of the representations of the Purchaser set forth in Section 2.2 hereof, the Company
has complied with all applicable federal and state securities laws in connection with the offer, issuance and sale of the Shares hereunder.
Neither the Company nor any of its affiliates, nor any person acting on its or their behalf, has engaged in any form of general solicitation
or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer or sale of any of the
shares of Common Stock.

 

(i)
Governmental Approvals. Except for the filing of any notice prior or subsequent to the Closing Date that may be required under
applicable state and/or federal securities laws (which if required, shall be filed on a timely basis), including the filing of a Form
D and a registration statement or statements pursuant to the Registration Rights Agreement, no authorization, consent, approval, license,
exemption of, filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, is or will be necessary for, or in connection with, the execution or delivery of the Shares, or for the performance
by the Company of its obligations under the Transaction Documents.

 

(j)
No Integrated Offering. Neither the Company, nor to the knowledge of the Company, any person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that
would require registration of the Shares under the Securities Act.

 

(k)
No Disqualification Events. None of the Company, any of its predecessors, any affiliated issuer, any director, executive officer,
other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities
Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”) is subject
to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification
Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care
to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable,
with its disclosure obligations under Rule 506(e), and has furnished to the Purchaser a copy of any disclosures provided thereunder.

 

(l)
Other Covered Persons. Other than the Placement Agent and Gunnar, the Company is not aware of any person (other than any Issuer
Covered Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with
the sale of any Common Stock.

 

(m)
Notice of Disqualification Events. The Company will notify the Purchaser in writing, prior to the Closing Date of (i) any Disqualification
Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, reasonably be expected to become
a Disqualification Event relating to any Issuer Covered Person, in each case of which it is aware.

 

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Section
2.2 Representations and Warranties of the Purchaser. The Purchaser hereby makes the following representations and warranties to
the Company as of the date hereof:

 

(a)
Organization and Good Standing of the Purchaser. If the Purchaser is an entity, the Purchaser is a corporation, partnership or
limited liability company duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction of
its incorporation or organization.

 

(b)
Authorization and Power. The Purchaser has the requisite power and authority to enter into and perform this Agreement and each
of the other Transaction Documents to which the Purchaser is a party and to purchase the shares of Common Stock being sold to it hereunder.
The execution, delivery and performance of this Agreement and each of the other Transaction Documents to which the Purchaser is a party
by the Purchaser and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary
corporate, partnership or limited liability company action, and no further consent or authorization of the Purchaser or its Board of
Directors, stockholders, partners, members, or managers, as the case may be, is required. This Agreement and each of the other Transaction
Documents to which the Purchaser is a party has been duly authorized, executed and delivered by the Purchaser and constitutes, or shall
constitute when executed and delivered, a valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance
with the terms hereof, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights
and remedies or by other equitable principles of general application.

 

(c)
No Conflicts. The execution, delivery and performance of this Agreement and each of the other Transaction Documents to which the
Purchaser is a party and the consummation by the Purchaser of the transactions contemplated hereby and thereby or relating hereto do
not and will not (i) result in a violation of the Purchaser’s charter documents, bylaws, operating agreement, partnership agreement
or other organizational documents or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement,
indenture or instrument or obligation to which the Purchaser is a party or by which its properties or assets are bound, or result in
a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to the Purchaser
or its properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate, have a material
adverse effect on the Purchaser). The Purchaser is not required to obtain any consent, authorization or order of, or make any filing
or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this
Agreement or any other Transaction Document to which the Purchaser is a party or to purchase the shares of Common Stock in accordance
with the terms hereof, provided, that for purposes of the representation made in this sentence, the Purchaser is assuming and relying
upon the accuracy of the relevant representations and agreements of the Company herein.

 

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(d)
Status of Purchaser. The Purchaser is an “accredited investor” as defined in Regulation D under the Securities Act.
The Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act and the Purchaser is not a broker-dealer,
nor an affiliate of a broker-dealer.

 

(e)
Experience of the Purchaser. The Purchaser, 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 its prospective investment
in the Shares, and has so evaluated the merits and risks of such investment. Without limitation of the foregoing, the Purchaser acknowledges
that is aware of the information reported by the Company in its Current Report on Form 8-K filed on April 12, 2021 and in the Private
Placement Memorandum. The Purchaser is able to bear the economic risk of an investment in the Shares and, at the present time, is able
to afford a complete loss of such investment. The Purchaser understands that no United States federal or state agency or any other governmental
or state agency has passed on or made recommendations or endorsement of the shares of Common Stock to be acquired by the Purchaser hereunder
or the suitability of the investment therein, nor have such authorities passed upon or endorsed the merits of the transactions set forth
herein.

 

(f)
Acquisition for Investment. The Purchaser is acquiring the shares of Common Stock solely for its own account for the purpose of
investment and not with a view to or for sale in connection with a distribution. The Purchaser does not have a present intention to sell
the shares of Common Stock, nor a present arrangement (whether or not legally binding) or intention to effect any distribution of the
shares of Common Stock to or through any person or entity; provided, however, that by making the representations herein,
the Purchaser does not agree to hold the shares of Common Stock for any minimum or other specific term and reserves the right to dispose
of the shares of Common Stock at any time in accordance with federal and state securities laws applicable to such disposition. The Purchaser
acknowledges that it is able to bear the financial risks associated with an investment in the shares of Common Stock and that it has
been given full access to such records of the Company and to the officers of the Company and received such information as it has deemed
necessary or appropriate to conduct its due diligence investigation and has sufficient knowledge and experience in investing in companies
similar to the Company in terms of the Company’s stage of development so as to be able to evaluate the risks and merits of its
investment in the Company.

 

(g)
Information Concerning the Company.

 

(i)
The Purchaser has received a copy of the Transaction Documents, including the Private Placement Memorandum. The Purchaser acknowledges
that it has read and understands the information set forth in the Private Placement Memorandum. The Purchaser has not been furnished
any offering literature other than the Transaction Documents and has relied only on the information contained therein.

 

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(ii)
The Purchaser understands and accepts that the purchase of the Shares involves various risks, including the risks outlined in the Private
Placement Memorandum and in this Agreement.

 

(iii)
The Purchaser confirms that it is not relying on any communication (written or oral) of the Company or any of its affiliates, as investment
or tax advice or as a recommendation to purchase the Shares. It is understood that information and explanations related to the terms
and conditions of the Shares provided in the Transaction Documents or otherwise by the Company or any of its affiliates shall not be
considered investment or tax advice or a recommendation to purchase the Shares, and that neither the Company nor any of its affiliates
is acting or has acted as an advisor to the undersigned in deciding to invest in the Shares. The Purchaser acknowledges that neither
the Company nor any of its affiliates has made any representation regarding the proper characterization of the Shares for purposes of
determining the Purchaser’s authority to invest in the Shares.

 

(iv)
The Purchaser is familiar with the business and financial condition and operations of the Company, all as generally described in the
Transaction Documents. The Purchaser has had access to such information concerning the Company and the Shares as it deems necessary to
enable it to make an informed investment decision concerning the purchase of the Shares.

 

(v)
The Purchaser understands that, unless the Purchaser notifies the Company in writing to the contrary at or before the Closing, each of
the Purchaser’s representations and warranties contained in this Agreement will be deemed to have been reaffirmed and confirmed
as of the Closing, taking into account all information received by the Purchaser.

 

(vi)
The Purchaser acknowledges that the Company has the right in its sole and absolute discretion to abandon this private placement at any
time prior to the completion of the offering. This Agreement shall thereafter have no force or effect and the Company shall return the
previously paid purchase price of the Shares, without interest thereon, to the Purchaser.

 

(h)
Opportunities for Additional Information. The Purchaser acknowledges that the Purchaser has had the opportunity to ask questions
of and receive answers from, or obtain additional information from, the executive officers of the Company concerning the financial and
other affairs of the Company.

 

(i)
No General Solicitation. The Purchaser acknowledges that the Shares were not offered to the Purchaser by means of any form of
general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any
advertisement, article, notice or other communication published in any newspaper, magazine, or similar media, or broadcast over television
or radio, or (ii) any seminar or meeting to which the Purchaser was invited by any of the foregoing means of communications.

 

(j)
Rule 144. The Purchaser understands that the Shares must be held indefinitely unless such Shares are registered under the Securities
Act or an exemption from registration is available. The Purchaser acknowledges that the Purchaser is familiar with Rule 144, of the rules
and regulations of the Commission, as amended, promulgated pursuant to the Securities Act (“Rule 144”), and that the
Purchaser has been advised that Rule 144 permits resales only under certain circumstances. The Purchaser understands that to the extent
that Rule 144 is not available, the Purchaser will be unable to sell any Shares without either registration under the Securities Act
or the existence of another exemption from such registration requirement.

 

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(k)
Reliance. The Purchaser understands that the Shares are being offered and sold in reliance on a transactional exemption from the
registration requirements of federal and state securities laws and the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in order to determine the applicability
of such exemptions and the suitability of the Purchaser to acquire the Shares.

 

(l)
Independent Investment. The Purchaser has not agreed to act with any other Purchaser for the purpose of acquiring, holding, voting
or disposing of the Shares purchased hereunder for purposes of Section 13(d) under the Exchange Act, and the Purchaser is acting independently
with respect to its investment in the Shares.

 

(m)
Brokers. Except for a commission payable to the Placement Agent, the Purchaser has no knowledge of any brokerage or finder’s
fees or commissions that are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other person or entity with respect to the transactions contemplated by this Agreement.

 

(n)
Confidential Information. The Purchaser agrees that the Purchaser and its affiliates, employees, agents and representatives will
keep confidential and will not disclose, divulge or use (other than for purposes of monitoring its investment in the Company) any confidential
information which the Purchaser may obtain from the Company pursuant to financial statements, reports and other materials submitted by
the Company to the Purchaser pursuant to this Agreement, unless such information is known to the public through no fault of the Purchaser
or his, her or its employees or representatives; provided, however, that the Purchaser may disclose such information (i) to its attorneys,
accountants and other professionals in connection with their representation of the Purchaser in connection with the Purchaser’s
investment in the Company, (ii) to any prospective permitted transferee of the Shares, so long as the prospective transferee agrees to
be bound by the provisions of this Section 2.2(n), or (iii) to any general partner or affiliate of the Purchaser; or (iii) as required
by applicable law.

 

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ARTICLE
III

Covenants

 

The
Company covenants with the Purchaser as follows, which covenants are for the benefit of the Purchaser and its permitted assignees (as
defined herein).

 

Section
3.1 Securities Compliance. The Company shall notify the Commission in accordance with its rules and regulations, of the transactions
contemplated by any of the Transaction Documents, including filing a Form D with respect to the Shares as required under Regulation D
and applicable “blue sky” laws, and shall take all other necessary action and proceedings as may be required by applicable
law, rule and regulation, for the legal and valid issuance of the Shares to the Purchaser or subsequent holders.

 

Section
3.2 Compliance with Laws. The Company shall take all reasonable efforts to comply with, and cause each of its subsidiaries to
take all reasonable efforts to comply with, in all material respects, all applicable laws, rules, regulations and orders.

 

Section
3.3 Disclosure of Transaction. The Company shall (a) promptly following the date hereof, issue a press release disclosing the
material terms of the transactions contemplated hereby (the “Press Release”), and (b) file a Current Report on Form
8-K, including the Transaction Documents as exhibits thereto, with the Commission within four (4) Business Day following the Closing
Date (the “Closing Date Form 8-K”). “Business Day” means any day during which the principal exchange
in which the Common Stock is trading shall be open for trading.

 

Section
3.4 Disclosure of Material Information. The Company covenants and agrees that neither it nor any other person acting on its or
their behalf has provided or, from and after the filing of the Press Release and the Closing Date Form 8-K, will provide any Purchaser
or its agents or counsel with any information that the Company believes constitutes material non-public information (other than with
respect to the transactions contemplated by this Agreement), unless prior thereto the Purchaser shall have executed a specific written
agreement regarding the confidentiality and use of such information. The Company understands and confirms that each Purchaser shall be
relying on the foregoing covenants in effecting transactions in securities of the Company. At the time of the filing of the Press Release,
and the Closing Date Form 8-K, no Purchaser shall be in possession of any material, nonpublic information received from the Company,
any of its subsidiaries or any of its respective officers, directors, employees or agents, that is not disclosed in the Press Release.
The Company shall not disclose the identity of any Purchaser in any filing with the Commission except as required by the rules and regulations
of the Commission thereunder.

 

Section
3.5 No Integrated Offerings. The Company shall not make any offers or sales of any security (other than the securities being offered
or sold hereunder) under circumstances that would require registration of the securities being offered or sold hereunder under the Securities
Act.

 

Section
3.6 Use of Proceeds. The Company shall use the net proceeds from the sale of the Shares hereunder for general corporate and working
capital purposes.

 

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ARTICLE
IV

CONDITIONS

 

Section
4.1 Conditions Precedent to the Obligation of the Company to Sell the Shares. The obligation hereunder of the Company to issue
and sell the Shares to the Purchaser is subject to the satisfaction or waiver, at or before each Closing, of each of the conditions set
forth below. These conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion.

 

(a)
Accuracy of the Purchaser’s Representations and Warranties. Each of the representations and warranties of the Purchaser
in this Agreement and the other Transaction Documents that are qualified by materiality or by reference to any Material Adverse Effect
shall be true and correct in all respects, and all other representations and warranties shall be true and correct in all material respects,
as of the date when made and as of the Closing Date as though made at that time, except for representations and warranties that are expressly
made as of a particular date, which shall be true and correct in all respects as of such date.

 

(b)
Performance by the Purchaser. The Purchaser shall have performed, satisfied and complied in all respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by the Purchaser at or prior to the Closing.

 

(c)
No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

 

(d)
Delivery of Purchase Price. The Purchase Price for the Shares shall have been delivered to the Escrow Agent.

 

(e)
Delivery of Transaction Documents. The Transaction Documents to which the Purchaser is a party shall have been duly executed and
delivered by the Purchaser to the Company.

 

Section
4.2 Conditions Precedent to the Obligation of the Purchaser to Purchase the Shares. The obligation hereunder of the Purchaser
to acquire and pay for the Shares is subject to the satisfaction or waiver, at or before each Closing, of each of the conditions set
forth below. These conditions are for the Purchaser’s sole benefit and may be waived by the Purchaser at any time in its sole discretion.

 

(a)
Accuracy of the Company’s Representations and Warranties. Each of the representations and warranties of the Company in this
Agreement and the other Transaction Documents that are qualified by materiality or by reference to any Material Adverse Effect shall
be true and correct in all respects, and all other representations and warranties shall be true and correct in all material respects,
as of the date when made and as of the Closing Date as though made at that time, except for representations and warranties that are expressly
made as of a particular date, which shall be true and correct in all respects as of such date.

 

(b)
Performance by the Company. The Company shall have performed, satisfied and complied in all respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing.

 

(c)
No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

 

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(d)
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any governmental authority shall have been
commenced, and no investigation by any governmental authority shall have been threatened, against the Company or any of its subsidiaries,
or any of the officers, directors or affiliates of the Company or any of its subsidiaries seeking to restrain, prevent or change the
transactions contemplated by this Agreement, or seeking damages in connection with such transactions.

 

(e)
Opinion of Counsel. At the Closing, the Purchaser and the Placement Agent shall have received an opinion of securities counsel
to the Company, dated the date of the Closing, in a form reasonably acceptable to the Purchaser and the Placement Agent.

 

(f)
Delivery of Transaction Documents. The Transaction Documents to which the Purchaser is a party shall have been duly executed and
delivered by the Company to the Purchaser.

 

(g)
Delivery of Shares. Promptly following each Closing, the Company shall cause its transfer agent to (i) credit the Shares being
acquired the Purchaser at Closing in book-entry form to the Purchaser’s balance account with the Depository Trust Company through
its Deposit Withdrawal Agent Commission system, or (ii) at the request of the Purchaser, deliver to the Purchaser the certificate for
the Shares being acquired by the Purchaser at the Closing to such address set forth next to the Purchaser’s name on the signature
pages hereto.

 

(h)
Secretary’s Certificate. The Secretary of the Company shall have delivered to the Purchaser and the Placement Agent at the
Closing a certificate certifying as to the accuracy of (i) the Certificate of Incorporation, (ii) the Bylaws, and (iii) resolutions of
the Board approving the Transaction Agreements and the transactions contemplated thereunder.

 

(i)
Officer’s Certificate. The Company shall have delivered to the Purchaser and the Placement Agent a certificate of an executive
officer of the Company, dated as of the Closing Date, confirming the accuracy of the Company’s representations, warranties and
covenants as of the Closing Date and confirming the compliance by the Company with the conditions precedent set forth in this Section
4.2 as of the Closing Date.

 

    	12

     

    

     

ARTICLE
V

 

Stock
Certificate Legend

 

Section
5.1 Legend. Each certificate or “book entry” statement representing the Shares shall be stamped or otherwise imprinted
with a legend substantially in the following form (in addition to any legend required by applicable state securities or “blue sky”
laws):

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED AN OPINION OF
COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS
NOT REQUIRED.”

 

The
Company agrees to cause its transfer agent to reissue certificates or “book entry” statements representing any of the shares
of Common Stock without the legend set forth above so long as such legend removal is in connection with a sale transaction and such holder
thereof shall give written notice to the Company describing the manner and terms of such sale and removal as the Company may reasonably
request. In addition, such proposed transfer and removal will not be effected until: (a) either (i) the Company has received an opinion
of counsel reasonably satisfactory to the Company, to the effect that the registration of the shares of Common Stock under the Securities
Act is not required in connection with such proposed transfer, (ii) a registration statement under the Securities Act covering such proposed
disposition has been filed by the Company with the Commission and has become effective under the Securities Act, or (iii) the Company
has received other evidence reasonably satisfactory to the Company that such registration and qualification under the Securities Act
and state securities laws are not required; and (b) either (i) the Company has received an opinion of counsel reasonably satisfactory
to the Company, to the effect that registration or qualification under the securities or “blue sky” laws of any state is
not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or “blue sky”
laws has been effected or a valid exemption exists with respect thereto. The Company will respond to any such notice from a holder within
five (5) Business Days. In the case of any proposed transfer under this Section 5.1, the Company will use reasonable efforts to comply
with any such applicable state securities or “blue sky” laws, but shall in no event be required, (x) to qualify to do business
in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process
in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which
registration by coordination is unavailable to the Company. The restrictions on transfer contained in this Section 5.1 shall be in addition
to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Agreement. Whenever a
certificate representing the shares of Common Stock is permitted to be issued to the Purchaser without a legend, in lieu of delivering
physical certificates representing the shares of Common Stock (provided that a registration statement under the Securities Act providing
for the resale of the shares of Common Stock is then in effect and such shares have been sold), the Company may cause its transfer agent
to electronically transmit the shares of Common Stock to the Purchaser by crediting the account of the Purchaser or the Purchaser’s
prime broker with the DTC through its DWAC system (to the extent not inconsistent with any provisions of this Agreement). In addition,
the Company will provide, at the Company’s expense, such legal opinions in the future as are reasonably necessary for the issuance
and public resale of the Common Stock pursuant to an effective registration statement, Rule 144 under the Securities Act or an exemption
from registration under the Securities Act and applicable “blue sky” laws, which opinion, if issued, shall be deemed to satisfy
the requirements of third paragraph of this Section 5.1. Without limiting the generality of the foregoing, in the event that shares of
Common Stock are sold in a manner that complies with an exemption from registration (including pursuant to Rule 144), the Company shall
promptly instruct its counsel (at its expense) to issue to the transfer agent an opinion permitting removal of any legend restricting
transfer pursuant to Section 5.1 hereof.

 

    	13

     

    

 

ARTICLE
VI

Indemnification

 

Section
6.1 General Indemnity. The Company agrees to indemnify and hold harmless the Purchaser (and its directors, officers, managers,
partners, members, shareholders, affiliates, agents, successors and assigns) from and against any and all losses, liabilities, deficiencies,
costs, damages and expenses (including, without limitation, reasonable attorneys’ fees, charges and disbursements) incurred by
the Purchaser as a result of any breach of the representations, warranties or covenants made by the Company herein. The Purchaser, severally
but not jointly with any other purchasers in the offering described in the Private Placement Memorandum, agrees to indemnify and hold
harmless the Company and its directors, officers, affiliates, agents, successors and assigns from and against any and all losses, liabilities,
deficiencies, costs, damages and expenses (including, without limitation, reasonable attorneys’ fees, charges and disbursements)
incurred by the Company as a result of any breach of the representations, warranties or covenants made by the Purchaser herein. The maximum
aggregate liability of the Purchaser pursuant to its indemnification obligations under this Article VI shall not exceed the Purchase
Price paid by the Purchaser hereunder. In no event shall any “Indemnified Party” (as defined below) be entitled to recover
consequential or punitive damages resulting from a breach or violation of this Agreement.

 

Section
6.2 Indemnification Procedure. Any party entitled to indemnification under this Article VI (an “Indemnified Party”)
will give written notice to the indemnifying party of any matters giving rise to a claim for indemnification; provided, that the
failure of any party entitled to indemnification hereunder to give notice as provided herein shall not relieve the indemnifying party
of its obligations under this Article VI except to the extent that the indemnifying party is materially prejudiced by such failure to
give notice. In case any action, proceeding or claim is brought against an Indemnified Party in respect of which indemnification is sought
hereunder, the indemnifying party shall be entitled to participate in and, unless in the reasonable judgment of the Indemnified Party
a conflict of interest between it and the indemnifying party may exist with respect of such action, proceeding or claim, to assume the
defense thereof with counsel reasonably satisfactory to the Indemnified Party. In the event that the indemnifying party advises an Indemnified
Party that it will contest such a claim for indemnification hereunder, or fails, within thirty (30) days of receipt of any indemnification
notice to notify, in writing, such person of its election to defend, settle or compromise, at its sole cost and expense, any action,
proceeding or claim (or discontinues its defense at any time after it commences such defense), then the Indemnified Party may, at its
option, defend, settle or otherwise compromise or pay such action or claim. In any event, unless and until the indemnifying party elects
in writing to assume and does so assume the defense of any such claim, proceeding or action, the Indemnified Party’s costs and
expenses arising out of the defense, settlement or compromise of any such action, claim or proceeding shall be losses subject to indemnification
hereunder. The Indemnified Party shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any
such action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the
Indemnified Party, which relates to such action or claim. The indemnifying party shall keep the Indemnified Party fully apprised at all
times as to the status of the defense or any settlement negotiations with respect thereto. If the indemnifying party elects to defend
any such action or claim, then the Indemnified Party shall be entitled to participate in such defense with counsel of its choice at its
sole cost and expense. The indemnifying party shall not be liable for any settlement of any action, claim or proceeding effected without
its prior written consent (which consent will not be unreasonably withheld or delayed), provided, however, that the indemnifying
party shall be liable for any settlement if the indemnifying party is advised of the settlement but fails to respond to the settlement
within thirty (30) days of receipt of such notification. Notwithstanding anything in this Article VI to the contrary, the indemnifying
party shall not, without the Indemnified Party’s prior written consent, settle or compromise any claim or consent to entry of any
judgment in respect thereof which imposes any future obligation on the Indemnified Party or which does not include, as an unconditional
term thereof, the giving by the claimant or the plaintiff to the Indemnified Party of a release from all liability in respect of such
claim. The indemnity agreements contained herein shall be in addition to (a) any cause of action or similar rights of the Indemnified
Party against the indemnifying party or others, and (b) any liabilities the indemnifying party may be subject to pursuant to the law.

 

    	14

     

    

 

ARTICLE
VII

Miscellaneous

 

Section
7.1 Fees and Expenses. Except as otherwise set forth in this Agreement and the other Transaction Documents, 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 negotiation, preparation, execution, delivery and performance of this Agreement and the other Transaction Documents.

 

Section
7.2 Specific Enforcement; Consent to Jurisdiction.

 

(a)
The Company and the Purchaser acknowledge and agree that irreparable damage may occur in the event that any of the provisions of this
Agreement or the other Transaction Documents were not performed in accordance with their specific terms or were otherwise breached. It
is accordingly agreed that the parties may be entitled to an injunction or injunctions to prevent or cure breaches of the provisions
of this Agreement or the other Transaction Documents and to enforce specifically the terms and provisions hereof or thereof, this being
in addition to any other remedy to which any of them may be entitled by law or equity.

 

(b)
Each of the Company and the Purchaser (i) hereby irrevocably submits to the jurisdiction of the United States District Court sitting
in the Southern District of New York and the courts of the State of New York located in New York county for the purposes of any suit,
action or proceeding arising out of or relating to this Agreement or any of the other Transaction Documents or the transactions contemplated
hereby or thereby and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue
of the suit, action or proceeding is improper. Each of the Company and the Purchaser 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. Nothing in this Section 7.2 shall affect or limit any right to serve process in any other manner
permitted by law. 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 to such party at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by law.

 

    	15

     

    

 

Section
7.3 Entire Agreement; Amendment. This Agreement and the other Transaction Documents contain the entire understanding and agreement
of the parties with respect to the matters covered hereby and, except as specifically set forth herein or in the Transaction Documents,
neither the Company nor the Purchaser makes any representations, warranty, covenant or undertaking with respect to such matters and they
supersede all prior understandings and agreements with respect to said subject matter, all of which are merged herein. No provision of
this Agreement nor any of the Transaction Documents may be waived or amended other than by a written instrument signed by the Company
and the Purchaser, and no provision hereof may be waived other than by a written instrument signed by the party against whom enforcement
of any such waiver is sought.

 

Section
7.4 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be
in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication
is delivered via electronic mail (“Email”) at the Email address set forth on the signature pages attached hereto at
or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice
or communication is delivered via Email at the Email address set forth on the signature pages attached hereto on a day that is not a
Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the
date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such
notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached
hereto.

 

Section
7.5 Waivers. No waiver by any party of any default with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any other provisions, 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 accruing to it thereafter.

 

Section
7.6 Headings. The section headings contained in this Agreement (including, without limitation, section headings and headings in
the exhibits and schedules) are inserted for reference purposes only and shall not affect in any way the meaning, construction or interpretation
of this Agreement. Any reference to the masculine, feminine, or neuter gender shall be a reference to such other gender as is appropriate.
References to the singular shall include the plural and vice versa.

 

    	16

     

    

 

Section
7.7 Successors and Assigns. This Agreement may not be assigned by a party hereto without the prior written consent of the Company
or the Purchaser, as applicable, provided, however, that, subject to federal and state securities laws and as otherwise
provided in the Transaction Documents, the Purchaser may assign its rights and delegate its duties hereunder in whole or in part (i)
to a third party acquiring all or substantially all of its shares of Common Stock in a private transaction or (ii) to an affiliate, in
each case, without the prior written consent of the Company, after notice duly given by the Purchaser to the Company; provided,
that no such assignment or obligation shall affect the obligations of the Purchaser hereunder and that such assignee agrees in writing
to be bound, with respect to the transferred securities, by the provisions hereof that apply to the Purchaser. The provisions of this
Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties. Nothing in
this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors
and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this
Agreement.

 

Section
7.8 No Third Party Beneficiaries. Except as set forth in Article VI, this Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other person; provided, however, that notwithstanding the foregoing, the parties agree that the Placement Agent shall be a third
party beneficiary of the representations and warranties of the Company set forth in Section 2.1 hereof and the representations and warranties
of the Purchaser set forth in Section 2.2 hereof.

 

Section
7.9 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New
York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of
another jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement
to be drafted.

 

Section
7.10 Survival. The representations and warranties of the Company and the Purchaser shall survive the execution and delivery hereof
and the Closing hereunder for a period of one (1) year following the Closing Date.

 

Section
7.11 Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed
to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts
have been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same
counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation
of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature
were the original thereof.

 

Section
7.12 Publicity. The Company agrees that it will not disclose, and will not include in any public announcement, the name of the
Purchaser without the consent of the Purchaser unless and until such disclosure is required by law or applicable regulation, and then
only to the extent of such requirement.

 

    	17

     

    

 

Section
7.13 Severability. The provisions of this Agreement and the Transaction Documents are severable and, in the event that any court
of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions contained in this Agreement
or the Transaction Documents shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement or the Transaction Documents
and such provision shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of such provision,
had never been contained herein, so that such provisions would be valid, legal and enforceable to the maximum extent possible.

 

Section
7.14 Further Assurances. From and after the date of this Agreement, upon the request of the Purchaser or the Company, each of
the Company and the Purchaser shall execute and deliver such instrument, documents and other writings as may be reasonably necessary
or desirable to confirm and carry out and to effectuate fully the intent and purposes of the Transaction Documents.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	18

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Common Stock Purchase Agreement to be duly executed by its authorized signatory this         day
of ,       2021.

 

	TARONIS
    FUELS, INC.	 	Address
    for Notice:
	 	 	 	 
	By:	 	 	Taronis
    Fuels, Inc.
	Name:	Tobias
    W. Welo	 	24980
    N. 83rd Avenue, Ste. 100
	Title:	Chief
    Executive Officer	 	Peoria,
    Arizona 85383
	 	 	 	Attention:
    Mary Pat Thompson, CFO 
	 	 	 	Telephone
    No.: (866) 370-3835
	 	 	 	Email:
    mpthompson@taronisfuels.com

 

With
a copy to (which shall not constitute notice):

 

Hogan
Lovells US LLP

1601
Wewatta Street, Suite 900

Denver,
Colorado 80202

Attention:
David Crandall

Telephone
No.: (303) 454-2449

Email:
david.crandall@hoganlovells.com

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    	19

     

    

 

[PURCHASER
SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned has caused this Common Stock Purchase Agreement to be duly executed by its authorized signatory this
day of , 2021.

 

Name
of Purchaser: ________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: __________________________________

 

Name
of Authorized Signatory: ____________________________________________________

 

Title
of Authorized Signatory: _____________________________________________________

 

Email
Address of Authorized Signatory: ______________________________________________

 

Facsimile
Number of Authorized Signatory: _____________________________________________

 

Address
for Notice to Purchaser:

 

 

 

 

 

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

 

 

 

 

 

Subscription
Amount: $_________________

 

Shares
of Common Stock: _________________. The Subscription Amount set forth above divided by $3.00 price per Share, rounded up to the nearest
whole Share.

 

Purchaser’s
Tax I.D. or Social Security Number: _______________________

 

    	20

     

    

 

EXHIBIT
A TO THE

COMMON STOCK PURCHASE AGREEMENT

 

 

 

FORM
OF REGISTRATION RIGHTS AGREEMENT

 

    	A-1Exhibit
10.2

 

FORM
OF

REGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made and entered into as of June ____, 2021, by and among Taronis
Fuels, Inc., a Delaware corporation (the “Company”), and the purchasers signatory hereto (each, a “Purchaser”
and collectively, the “Purchasers”). This Agreement is made pursuant to the Common Stock Purchase Agreements, dated
as of the date hereof, by and among the Company and the Purchasers (the “Purchase Agreement”).

 

The
Company and each Purchaser hereby agrees as follows:

 

1.
Definitions.

 

Capitalized
terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the
Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Advice”
shall have the meaning set forth in Section 6(d).

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 30th calendar day following
the Filing Date (or, in the event of a “full review” by the Commission, the 60th calendar day following the Filing Date)
and with respect to any additional Registration Statements which may be required pursuant to Section 2(c), the 30th calendar day following
the date on which an additional Registration Statement is required to be filed hereunder (or, in the event of a “full review”
by the Commission, the 60th calendar day following the date such additional Registration Statement is required to be filed hereunder);
provided, however, that in the event the Company is notified by the Commission that one or more of the above Registration
Statements will not be reviewed or is no longer subject to further review and comments, the Effectiveness Date as to such Registration
Statement shall be the fifth (5th) Trading Day following the date on which the Company is so notified if such date precedes
the dates otherwise required above; provided, further, that if such Effectiveness Date falls on a day that is not a Trading
Day, then the Effectiveness Date shall be the next succeeding Trading Day.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Filing
Date” means, with respect to the Initial Registration Statement required hereunder, the 30th calendar day following the date
upon which the Company files its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and all Quarterly Reports on
Form 10-Q relating to interim financial periods required to be included in the Initial Registration Statement pursuant to Regulation
S-X Rule 8-08 and, with respect to any additional Registration Statements which may be required pursuant to Section 2(c), the earliest
practical date on which the Company is permitted by SEC Guidance to file such additional Registration Statement related to the Registrable
Securities.

 

    	 

     

    

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“Plan
of Distribution” shall have the meaning set forth in Section 2(a).

 

“Proceeding(s)”
means any writ, injunction, decree, order, judgment, lawsuit, claim, action, arbitration, proceeding, investigation, summons, audit or
hearing (in each case, whether civil, criminal, administrative, investigative or informal) commenced, brought, conducted or heard by
or before, or otherwise involving, any governmental authority.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated by the
Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to
the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference
in such Prospectus.

 

“Registrable
Securities” means, as of any date of determination, (a) all shares of Common Stock issued pursuant to the Purchase Agreement,
and (b) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event
with respect to such securities; provided, however, that the Holder has completed and delivered to the Company a Selling Stockholder
Questionnaire and that any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required
to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so long as (a) a Registration
Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and
such Registrable Securities have been disposed of by the Holder in accordance with such effective Registration Statement, (b) such Registrable
Securities have been previously sold in accordance with Rule 144, or (c) such securities become eligible for resale without volume or
manner-of-sale restrictions pursuant to Rule 144 (assuming that such securities and any securities issuable upon exercise, conversion
or exchange of which, or as a dividend upon which, such securities were issued or are issuable, were at no time held by any Affiliate
of the Company), as reasonably determined by the Company, upon the advice of counsel to the Company.

 

    	2

     

    

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional registration
statements contemplated by Section 2(c), including (in each case) the Prospectus, amendments and supplements to any such registration
statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference
or deemed to be incorporated by reference in any such registration statement.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

 

“Selling
Stockholder Questionnaire” means a questionnaire in the form attached as Annex B hereto, or such other form of questionnaire
as may reasonably be adopted by the Company from time to time.

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements
or requests of the Commission staff and (ii) the Securities Act.

 

2.
Resale Registration.

 

(a)
On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale
of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering to be made on
a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-1 (or Form S-3, if available
to register for resale the Registrable Securities, or such other form available to register for resale the Registrable Securities) and
shall contain substantially the “Plan of Distribution” attached hereto as Annex A. Subject to the terms of
this Agreement, the Company shall use its commercially reasonable efforts to cause a Registration Statement filed under this Agreement
to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event no later than the
applicable Effectiveness Date, and shall use its commercially reasonable efforts to keep such Registration Statement continuously effective
under the Securities Act until all Registrable Securities covered by such Registration Statement (i) have been sold, thereunder or pursuant
to Rule 144, or (ii) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the
Company to be in compliance with the current public information requirement under Rule 144, as determined by the counsel to the Company
pursuant to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the affected Holders (the “Effectiveness
Period”). The Company shall promptly notify the Holders of the effectiveness of a Registration Statement. The Company shall
file a final Prospectus with the Commission as required by Rule 424.

 

    	3

     

    

 

(b)
Notwithstanding the registration obligations set forth in Section 2(a), if the Commission informs the Company that all of the Registrable
Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration
statement, the Company agrees to promptly inform each of the Holders thereof and use its commercially reasonable efforts to file amendments
to the Initial Registration Statement as required by the Commission, covering the maximum number of Registrable Securities permitted
to be registered by the Commission, on Form S-1 or such other form available to register for resale the Registrable Securities as a secondary
offering.

 

(c)
Notwithstanding any other provision of this Agreement, if the Commission or any SEC Guidance sets forth a limitation on the number of
Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering (and notwithstanding
that the Company used commercially reasonable efforts to advocate with the Commission for the registration of all or a greater portion
of Registrable Securities), unless otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable
Securities to be registered on such Registration Statement will be reduced first to reduce or eliminate any securities to be included
by any Person other than a Holder. In the event of a cutback hereunder, the Company shall give the Holder at least two (2) Trading Days
prior written notice along with the calculations as to such Holder’s allotment. In the event the Company amends the Initial Registration
Statement in accordance with the foregoing, the Company will use its commercially reasonable efforts to file with the Commission, as
promptly as allowed by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration
statements on Form S-1 or such other form available to register for resale those Registrable Securities that were not registered for
resale on the Initial Registration Statement, as amended.

 

(d)
Each Holder agrees to furnish to the Company a completed Selling Stockholder Questionnaire within ten (10) Business Days following the
date of this Agreement. Each Holder further agrees that it shall not be entitled to be named as a selling security holder in the Registration
Statement or use the Prospectus for offers and resales of Registrable Securities at any time, unless such Holder has returned to the
Company a completed and signed Selling Stockholder Questionnaire. If a Holder of Registrable Securities returns a Selling Stockholder
Questionnaire after the deadline specified in this Section 2(d), the Company shall use its commercially reasonable efforts to take such
actions as are required to name such Holder as a selling security holder in the Registration Statement or any pre-effective or post-effective
amendment thereto and to include (to the extent not theretofore included) in the Registration Statement the Registrable Securities identified
in such late Selling Stockholder Questionnaire; provided that the Company shall not be required to file an additional Registration Statement
solely for such shares. Each Holder acknowledges and agrees that the information in the Selling Stockholder Questionnaire will be used
and relied upon by the Company in the preparation of the Registration Statement and hereby consents to the inclusion of such information
in the Registration Statement.

 

    	4

     

    

 

3.
Registration Procedures.

 

In
connection with the Company’s registration obligations hereunder, the Company shall:

 

(a)
Not less than five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior to
the filing of any related Prospectus or any amendment or supplement thereto, the Company shall (i) furnish to each Holder copies of all
such documents proposed to be filed, which documents will be subject to the reasonable review of such Holders, and (ii) use its commercially
reasonable efforts to cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries
as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable investigation within the
meaning of the Securities Act. Notwithstanding the above, the Company shall not be obligated to provide the Holders advance copies of
any universal shelf registration statement registering securities in addition to those required hereunder, or any Prospectus prepared
thereto.

 

(b)
(i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the Prospectus
used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable Registrable
Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to
register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus to be amended or supplemented
by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant
to Rule 424, (iii) respond as promptly as reasonably practicable to any comments received from the Commission with respect to a Registration
Statement or any amendment thereto and provide as promptly as reasonably practicable to the Holders true and complete copies of all correspondence
from and to the Commission related to and/or applicable to a Holder in the reasonable opinion of the Company relating to a Registration
Statement (provided that, the Company shall excise any information contained therein which would constitute material non-public information
regarding the Company or any of its Subsidiaries), and (iv) comply in all material respects with the applicable provisions of the Securities
Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration Statement during the
Effectiveness Period in accordance (subject to the terms of this Agreement) with the intended methods of disposition by the Holders thereof
set forth in such Registration Statement as so amended or in such Prospectus as so supplemented.

 

    	5

     

    

 

(c)
Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (ii) through (v) hereof, be accompanied
by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably possible
(and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such Person) confirm
such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to a Registration Statement is proposed to be filed, (B) when the Commission notifies the Company whether there will be a “review”
of such Registration Statement and whenever the Commission comments in writing on such Registration Statement, and (C) with respect to
a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any request by the Commission or
any other federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional
information, (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending
the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings
for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding
for such purpose, and (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration Statement,
Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be, it will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading, provided, however, in no event shall
any such notice contain any information which would constitute material, non-public information regarding the Company or any of its Subsidiaries.

 

(d)
Use its commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending
the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of
the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(e)
Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto
by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and
any amendment or supplement thereto, except after the giving of any notice pursuant to clauses (ii) through (v) of Section 3(c).

 

    	6

     

    

 

(f)
Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification) of
such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United
States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during
the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions
of the Registrable Securities covered by each Registration Statement; provided, that, the Company shall not be required to qualify generally
to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction
where it is not then so subject or file a general consent to service of process in any such jurisdiction.

 

(g)
If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates or direct registration
statements in book entry form representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement,
which certificates shall be free, to the extent permitted by the Purchase Agreement (solely with respect to Holders a party thereto)
and applicable securities laws, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and
registered in such names as any such Holder may reasonably request.

 

(h)
Upon the occurrence of any event contemplated by Section 3(c), as promptly as reasonably practicable under the circumstances taking into
account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature disclosure
of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement or a supplement to
the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document
so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading. If the Company notifies the Holders in accordance with clauses (ii) through (v) of Section
3(c) above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall
suspend use of such Prospectus. The Company will use its commercially reasonable efforts to ensure that the use of the Prospectus may
be resumed as promptly as is practicable. In addition, if (i) there is material non-public information regarding the Company which the
Company’s Board of Directors (the “Board”) determines not to be in the Company’s best interest to disclose
and which the Company is not otherwise required to disclose, or (ii) there is a significant business opportunity (including, but not
limited to, the acquisition or disposition of assets (other than in the ordinary course of business) or any merger, consolidation, tender
offer or other similar transaction) available to the Company which the Board determines not to be in the Company’s best interest
to disclose, then the Company may (x) postpone or suspend filing of a registration statement for a period not to exceed forty-five (45)
consecutive days or (y) postpone or suspend effectiveness of a registration statement for a period not to exceed forty-five (45) consecutive
days; provided, that the Company may not postpone or suspend effectiveness of a registration statement under this Section
for more than ninety (90) days in the aggregate during any three hundred sixty (360) day period; provided, however, that
no such postponement or suspension shall be permitted for consecutive twenty (20) day periods arising out of the same set of facts, circumstances
or transactions.

 

    	7

     

    

 

(i)
Comply in all material respects with all applicable rules and regulations of the Commission.

 

(j)
The Company shall require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common Stock
beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive control
over the shares, pursuant to the Selling Stockholder Questionnaire.

 

4.
Registration Expenses. All fees and expenses incident to the performance of or compliance with, this Agreement by the Company
shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made with
the Commission, (B) with respect to filings required to be made with any trading market on which the Common Stock is then listed for
trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing (including,
without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the
Registrable Securities) and (D) if not previously paid by the Company in connection with an issuer filing, with respect to any filing
that may be required to be made by any broker through which a Holder intends to make sales of Registrable Securities with FINRA pursuant
to FINRA Rule 5110, so long as the broker is receiving no more than a customary brokerage commission in connection with such sale, (ii)
printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities), (iii) messenger, telephone
and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company
so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation
of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred
in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and
expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. In no event shall
the Company be responsible for any broker or similar commissions of any Holder or, except to the extent of reasonable legal fees and
disbursements of one firm to represent the Purchasers, not to exceed $10,000, any legal fees or other costs of the Holders.

 

    	8

     

    

 

5.
Indemnification.

 

(a)
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities
as principal as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees
(and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any
other title) of each Holder, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents and employees (and any other Persons with
a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each such
controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities,
costs (including, without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”), as
incurred, arising out of or relating to (1) any untrue or alleged untrue statement of a material fact contained in a Registration Statement,
any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of
or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements
therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading
or (2) any violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder,
in connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such
untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder
expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution
of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement,
such Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose)
or (ii) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated,
defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated,
defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the Advice contemplated in Section
6(d), but only if and to the extent that following the receipt of the Advice the misstatement or omission giving rise to such Loss would
have been corrected. The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising
from or in connection with the transactions contemplated by this Agreement of which the Company is aware.

 

    	9

     

    

 

(b)
Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors,
officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: (x) such Holder’s
failure to comply with any applicable prospectus delivery requirements of the Securities Act through no fault of the Company or (y) any
untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto,
in light of the circumstances under which they were made) not misleading (i) to the extent, but only to the extent, that such untrue
statement or omission is contained in any information so furnished in writing by such Holder to the Company expressly for inclusion in
such Registration Statement or such Prospectus or (ii) to the extent, but only to the extent, that such information relates to such Holder’s
proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly
for use in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus
or in any amendment or supplement thereto or (iii) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v),
to the extent, but only to the extent, related to the use by such Holder of an outdated, defective or otherwise unavailable Prospectus
after the Company has notified such Holder in writing that the Prospectus is outdated, defective or otherwise unavailable for use by
such Holder and prior to the receipt by such Holder of the Advice contemplated in Section 6(d), but only if and to the extent that following
the receipt of the Advice the misstatement or omission giving rise to such Loss would have been corrected. In no event shall the liability
of any selling Holder under this Section 5(b) be greater in amount than the dollar amount of the net proceeds received by such Holder
upon the sale of the Registrable Securities giving rise to such indemnification obligation.

 

(c)
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is
sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense
thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses
incurred in connection with defense thereof; provided, that, the failure of any Indemnified Party to give such notice shall not relieve
the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be
finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure
shall have materially and adversely prejudiced the Indemnifying Party.

 

An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party
has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense of such
Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named parties to
any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and counsel to
the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent
such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing
that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to
assume the defense thereof and the reasonable fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying
Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which
consent shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes
an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

    	10

     

    

 

(d)
Contribution. If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold
an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified
Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection
with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative
fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has
been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any
reasonable attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party
would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party
in accordance with its terms.

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately
preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute pursuant to this
Section 5(d), in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from the
sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, except in the case of fraud by a Holder.

 

The
indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have
to the Indemnified Parties.

 

6.
Miscellaneous.

 

(a)
Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement,
each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each of the Company and
each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it
of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect
of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

    	11

     

    

 

(b)
No Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Except as set forth in Section 6(e), neither
the Company nor any of its security holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company
in any Registration Statements other than the Registrable Securities. The Company shall not file any other registration statements until
a Registration Statement has been filed with the Commission covering all of the Registrable Securities, provided that this Section 6(b)
(i) shall not prohibit the Company from filing amendments to registration statements filed prior to the date of this Agreement,(ii) shall
not prohibit the Company from filing a shelf registration statement on Form S-3 for a primary offering by the Company, provided that
the Company makes no offering of securities pursuant to such shelf registration statement prior to the effective date of the Registration
Statement required hereunder that includes all of the Registrable Securities, and (iii) shall not prohibit the Company from filing a
registration statement on Form S-8; provided, however, that upon the filing of a Registration Statement covering all of the Registrable
Securities, the Company shall be permitted to file any other registration statements in connection with a primary offering regardless
of whether a Registration Statement covering all of the Registrable Securities has been declared effective by the Commission; provided,
further, that once all Registrable Securities are registered pursuant to a Registration Statement that is declared effective by the Commission,
the Company shall be permitted to file any other registration statements.

 

(c)
Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act
as applicable to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to a Registration
Statement.

 

(d)
Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from
the Company of the occurrence of any event of the kind described in Section 3(c)(ii) through (v), such Holder will forthwith discontinue
disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company will
use its commercially reasonable efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.

 

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(e)
Piggy-Back Registrations. If, at any time during the Effectiveness Period, there is not an effective Registration Statement covering
all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating
to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form
S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity securities issuable in connection with the Company’s stock
option or other employee benefit plans, then the Company shall deliver to each Holder a written notice of such determination and, if
within ten (10) days after the date of the delivery of such notice, any such Holder shall so request in writing, the Company shall include
in such registration statement all or any part of such Registrable Securities such Holder requests to be registered; provided,
however, that the Company shall not be required to register any Registrable Securities pursuant to this Section 6(e) that are
eligible for resale pursuant to Rule 144 (without volume restrictions or current public information requirements) promulgated by the
Commission pursuant to the Securities Act or that are the subject of a then effective Registration Statement. In connection with any
offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required to include any of
the Registrable Securities in such underwriting unless the Holder accepts the terms of the underwriting as agreed upon between the Company
and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success
of the offering by the Company. If the total number of securities, requested by stockholders to be included in such offering exceeds
the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible
with the success of the offering, then the Company shall be required to include in the offering only that number of such securities,
including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success
of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included
in such offering, then the Registrable Securities that are included in such offering shall be allocated among the Holders of Registrable
Securities in proportion (as nearly as practicable to) the number of Registrable Securities owned by each Holder requesting registration.

 

(f)
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified
or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing
and signed by the Company and the Holders of at least a majority of the then outstanding Registrable Securities. If a Registration Statement
does not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence,
then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders and each Holder
shall have the right to designate which of its Registrable Securities shall be omitted from such Registration Statement. Notwithstanding
the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights
of a Holder or some Holders and that does not directly or indirectly affect the rights of other Holders may be given only by such Holder
or Holders of all of the Registrable Securities to which such waiver or consent relates. No consideration shall be offered or paid to
any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration also is offered
to all of the parties to this Agreement.

 

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(g)
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered
as set forth in the Purchase Agreement.

 

(h)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations
hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Each Holder may assign
their respective rights hereunder to any Person to whom such Purchaser assigns or transfers any Registrable Securities, provided that
such transferee agrees in writing to be bound, with respect to the transferred Registrable Securities, by the provisions of this Agreement
and any other Transaction Document that applies to the Purchasers.

 

(i)
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the
Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts in any material respect
with the provisions hereof. Neither the Company nor any of its Subsidiaries has previously entered into any agreement granting any registration
rights with respect to any of its securities to any Person that have not been satisfied in full.

 

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

 

(k)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be
determined in accordance with the provisions of the Purchase Agreement.

 

(l)
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(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.

 

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(n)
Headings. The headings in this Agreement 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.

 

(o)
Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not joint
with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations
of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action
taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture
or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or entity
with respect to such obligations or the transactions contemplated by this Agreement or any other matters. Each Holder shall be entitled
to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary
for any other Holder to be joined as an additional party in any proceeding for such purpose. It is expressly understood and agreed that
each provision contained in this Agreement is between the Company and a Holder, solely, and not between the Company and the Holders collectively
and not between and among Holders.

 

********************

 

(Signature
Pages Follow)

 

    	15

     

    

 

 

IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

 

	 	TARONIS
    FUELS, INC. 
	 	 
	 	By:	          
	 	Name:	 
	 	Title:	 

 

[SIGNATURE
PAGE OF HOLDERS FOLLOWS]

 

    	16

     

    

 

[SIGNATURE
PAGE OF HOLDERS TO RRA]

 

Name
of Holder: __________________________

 

Signature
of Authorized Signatory of Holder: __________________________

 

Name
of Authorized Signatory: _________________________

 

Title
of Authorized Signatory: __________________________

 

[SIGNATURE
PAGES CONTINUE]

 

    	17

     

    

 

Annex
A

 

Plan
of Distribution

 

Annex
B

 

TARONIS
FUELS, INC.

Selling
Stockholder Notice and Questionnaire

 

    	18

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