Document:

Exhibit 4.7

 

THIS NOTE, IS A GLOBAL SECURITY WITHIN THE MEANING OF SECTION 2.05 OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY NAMED BELOW OR A NOMINEE OF THE DEPOSITARY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF CLEARSTREAM BANKING, SOCIÉTÉ ANONYME OR EUROCLEAR BANK S.A./N.V. (EACH A “DEPOSITARY”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF BT GLOBENET NOMINEES LIMITED OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO BT GLOBENET NOMINEES LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, BT GLOBENET NOMINEES LIMITED, HAS AN INTEREST HEREIN.

 

THE COCA-COLA COMPANY

 

1.250% Notes due 2031

 

	
No.
    	
€
    

 

CUSIP No. 191216 CK4

ISIN No.  XS1955024986

Common Code: 195502498

 

THE COCA-COLA COMPANY, a Delaware corporation (hereinafter called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to BT GLOBENET NOMINEES LIMITED (as nominee of the Depositary), or its registered assigns, the principal sum of                                             Euros (€                               ) on March 8, 2031 and to pay interest thereon from March 8, 2019, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, annually on March 8 in each year, commencing March 8, 2020 at the rate of 1.250% per annum until the principal hereof is paid or made available for payment. Interest on the Securities shall be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on 

 

 

which interest was  paid on the Securities (or from March 8, 2019, if no interest has been paid on the Securities) to but excluding the next scheduled Interest Payment Date.  This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the Business Day immediately preceding such Interest Payment Date. Any such interest which is payable but is not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this Series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this Series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

 

As set forth herein, the Company will pay additional interest on this Security in certain circumstances.

 

If either a date for payment of principal or interest on this Security or the Maturity of this Security falls on a day that is not a Business Day, the related payment of principal or interest will be made on the next succeeding Business Day as if made on the date the payment was due. No interest will accrue on any amounts payable for the period from and after the date for payment of principal of or interest on this Security or the Maturity of this Security provided such payment is made on such next succeeding Business Day. For this purpose, “Business Day” means any day that is not a Saturday or Sunday and that is not a day on which banking institutions are authorized or obligated by law or executive order to close in the City of New York or London and on which the Trans-European Automated Real-time Gross Settlement Express Transfer system, or any successor thereto, operates.

 

Payment of the principal of and interest on this Security will be made at the office or agency of the Company maintained for that purpose in a location agreed upon between the Company and the Paying Agent; provided, however, that at the option of the Company payment of interest, other than interest at Maturity, or upon redemption, may be made by check drawn upon the Paying Agent and mailed-on or prior to an Interest Payment Date to the address of the Person entitled thereto as such address shall appear in the Securities Register; provided, further, that (1) the Depositary, as Holder of the Securities, or (2) a Holder of more than €5,000,000 in aggregate principal amount of a Series of Securities in definitive form is entitled to require the Paying Agent to make payments of interest, other than interest due at Maturity or upon redemption, by wire transfer of immediately available funds into an account maintained by the Holder in the United States, by sending appropriate wire transfer instructions as long as the Paying Agent receives the instructions not less than ten days prior to the applicable Interest Payment Date. The principal and interest payable on any of the Securities at Maturity, or upon redemption, will be paid by wire transfer of immediately available funds against presentation of a Security at the office of the Transfer Agent and Registrar.

 

 

All payments on this Security will be payable in Euro. If, however, the Euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the Euro is no longer being used by the then Member States of the European Monetary Union (the “Member States”) that have adopted the Euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of this Security will be made in U.S. Dollars until the Euro is again available to the Company or so used. In such circumstance, the amount otherwise payable by the Company on any date in Euro will be converted into U.S. Dollars at a rate determined by the Company in good faith. If applicable laws or regulations of the Member States (including official pronouncements applying those laws or regulations) mandated, in the Company’s good faith determination, the use of a specific exchange rate for these purposes, the Company will apply the exchange rate so mandated. Any payment in respect of this Security so made in U.S. Dollars will not constitute an Event of Default under this Security or the Indenture. Neither the Trustee nor the Paying Agent shall have any responsibility for any calculation or conversion in connection with the foregoing.

 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof, directly or through an authenticating agent, by the manual signature of an authorized signatory, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

 

Dated:

 

	
 
    	
THE COCA-COLA COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: Christopher P. Nolan
    
	
 
    	
 
    	
Title:   Vice President and   Treasurer
    

 

 

Attest:

 

 

	
 
    	
 
    
	
Name: Jennifer Manning
    	
 
    
	
Title:   Secretary
    	
 
    

 

 

(Trustee’s Certificate of Authentication)

 

This is one of the Securities of the Series provided for in the within-mentioned  Indenture.

 

 

	
 
    	
Deutsche Bank Trust Company Americas, as Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

 

[Reverse]

 

This Note (as defined herein) is one of a duly authorized issue of debentures, notes or other evidences of indebtedness of the Company (herein called the “Securities”), issued and to be issued in one or more Series under an Indenture, dated as of April 26, 1988, as amended and supplemented by that First Supplemental Indenture, dated as of February 24, 1992, and by that Second Supplemental Indenture, dated as of November 1, 2007 (as so amended and supplemented, herein called the “Indenture”), between the Company and Bankers Trust Company (now known as Deutsche Bank Trust Company Americas), as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.  The Securities may be issued in one or more Series, which different Series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be denominated and bear interest, if any, in Dollars or in a Foreign Currency, may be subject to different redemption provisions (if any), may be subject to different sinking, purchase or analogous funds (if any), may be subject to different covenants and Events of Default and may otherwise vary as in the Indenture provided. This Security is one of a Series of Securities of the Company designated as set forth on the face hereof (herein called the “Notes”), limited in aggregate principal amount to €                           .

 

No sinking fund is provided for the Notes.

 

In the event of a deposit or withdrawal of an interest in this Note, including an exchange, redemption or transfer of this Note in part only, the Trustee or its designee, as custodian of the Depositary, shall make an adjustment on its records to reflect such deposit or withdrawal in accordance with the rules and procedures of Euroclear and Clearstream applicable to, and as in effect at the time of, such transaction.

 

If an Event of Default with respect to the Notes shall occur and be continuing, the principal of, and accrued interest on, the Notes may be declared due and payable in the manner and with the effect provided in the Indenture. Upon payment (i) of the amount of principal so declared due and payable and (ii) of interest on any overdue principal and overdue interest (in each case to the extent that the payment of such interest shall be legally enforceable), all of the Company’s obligations in respect of the payment of such principal of and interest, if any, on the Notes shall terminate. The Holders shall have such other rights and remedies after the occurrence and during the continuance of an Event of Default as set forth in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes of each Series under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding of each Series to be affected by such amendment or modification. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Notes of each Series at the time outstanding, on 

 

 

behalf of the Holders of all Notes  of such Series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. The Indenture contains provisions setting forth certain conditions to the institution of proceedings by Holders of Notes with respect to the Indenture or for any remedy under the Indenture. Section 12.01(a) of the Indenture also contains provisions applicable to the Notes relating to the Company’s ability to discharge its obligations with respect to the Notes and under the Indenture with respect to the Notes, upon the deposit of money, German government securities or other government obligations, in an amount sufficient to pay and discharge the principal of and interest on the Notes to the Maturity of the Note, in certain specified circumstances. The defeasance provisions described in Section 12.01(b) of the Indenture will not be applicable to the Notes.  The lien and sale and lease back provisions described in Sections 5.03 and 5.04 of the Indenture will not be applicable to the Notes.

 

Subject to the next preceding sentence hereof, no reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

This Note is exchangeable for definitive Notes only if (1) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Note and the Company does not appoint a successor Depositary within 90 days after receiving that notice or becoming aware that the Depositary is no longer registered or (2) the Company executes and delivers to the Trustee a Company Order that this Note shall be so exchangeable.  In such case, this Note shall be exchangeable into definitive Notes issuable only in denominations of €100,000 and integral multiples of €1,000 in excess thereof.  No definitive Notes shall be issuable in denominations of less than €100,000.  If this Note is exchanged pursuant to the preceding sentences, it shall be exchangeable for definitive Notes at the office of the Transfer Agent and Registrar, currently located at Deutsche Bank Trust Company Americas, 60 Wall Street, 16th Floor, New York, New York 10005, registered in the name or names that the Depositary gives to the Trustee, bearing interest at the same rate, having the same date of issuance, redemption provisions, Stated Maturity and other terms in registered form and of differing denominations aggregating a like amount.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Securities Register, upon surrender of this Note for registration of transfer at the office or agency of the Transfer Agent and Registrar, currently located at Deutsche Bank Trust Company Americas, 60 Wall Street, 16th Floor, New York, New York 10005, or at any other office or agency of the Company where the principal of and interest on this Note are payable, duly endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Transfer Agent and Registrar, duly executed, by the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the 

 

 

designated transferee or transferees.

 

The Notes are issuable only in registered form without coupons and only in minimum denominations of €100,000 and any integral multiple of €1,000 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, this Note is exchangeable for a like aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same.

 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

The Company may redeem the Notes at its option and at any time, either as a whole or in part. If the Company elects to redeem the Notes, the Company will pay a Redemption Price equal to the greater of:

 

·                  100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest; and

 

·                  the sum of the present values of the Remaining Scheduled Payments, plus accrued and unpaid interest (excluding any portion of such payments of interest accrued as of the Redemption Date).

 

In determining the present value of the Remaining Scheduled Payments, the Company will discount such payments to the Redemption Date on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate, plus 20 basis points. A partial redemption of the Notes may be effected by such method as the Paying Agent shall deem fair and appropriate in accordance with Clearstream/Euroclear’s procedures and may provide for the selection for redemption of portions (equal to the minimum authorized denomination for the Notes or any integral multiple of €1,000 in excess thereof) of the principal amount of Notes of a denomination larger than the minimum authorized denomination for the Notes.

 

The term “Comparable Government Bond Rate” means the yield to maturity, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards), on the third Business Day prior to the Redemption Date, of the Comparable Government Bond (as defined below) on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by an independent investment bank selected by the Company.

 

The term “Comparable Government Bond” means, with respect to any Redemption Date, in relation to any Comparable Government Bond Rate calculation, at the discretion of an independent investment bank selected by the Company, the 0.250% German Bundesobligationen due February 15, 2029, or if such independent investment bank in its discretion determines that such bond is not in issue, such other German Bundesobligationen as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company, determine to be appropriate for determining the 

 

 

Comparable Government Bond Rate.

 

The term “Remaining Scheduled Payments” means, with respect to any Note, the remaining scheduled payments of the principal thereof to be redeemed and interest thereon that would be due after the related Redemption Date but for such redemption; provided, however, that, if such Redemption Date is not an Interest Payment Date with respect to such Note, the amount of the next scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such Redemption Date.

 

Notice of any redemption will be mailed at least 30 days but not more than 60 days before the Redemption Date to each holder of Notes to be redeemed.

 

Unless the Company defaults in payment of the Redemption Price, on and after the Redemption Date interest will cease to accrue on the Notes or portions thereof called for redemption.  Neither the Trustee nor the Paying Agent shall be responsible for calculation of the Redemption Price.

 

The Company will, subject to the exceptions and limitations set forth below, pay as additional interest on the Notes such additional amounts as are necessary in order that the net payment by the Company of the principal of and interest on the Notes to a Holder who is not a United States Person (as defined below), after withholding or deduction for any present or future tax, assessment or other governmental charge imposed by the United States or a taxing authority in the United States, will not be less than the amount provided in the Notes to be then due and payable; provided, however, that the foregoing obligation to pay additional amounts shall not apply:

 

(1)         to any tax, assessment or other governmental charge that is imposed by reason of the Holder (or the beneficial owner for whose benefit such Holder holds such Note), or a fiduciary, settlor, beneficiary, member or shareholder of the Holder if the Holder is an estate, trust, partnership or corporation, or a Person holding a power over an estate or trust administered by a fiduciary holder, being considered as:

 

(a) being or having been engaged in a trade or business in the United States or having or having had a permanent establishment in the United States;

 

(b) having a current or former connection with the United States (other than a connection arising solely as a result of the ownership of the Notes or the receipt of any payment or the enforcement of any rights thereunder), including being or having been a citizen or resident of the United States;

 

(c) being or having been a personal holding company, a passive foreign investment company or a controlled foreign corporation for United States income tax purposes or a corporation that has accumulated earnings to avoid United States federal income tax;

 

(d) being a controlled foreign corporation within the meaning of Section 957(a) of the United States Internal Revenue Code of 1986, as amended (the “Code”) related within the meaning

 

 

of Code Section 864(d)(4) to the Company;

 

(e) being or having been a “10-percent shareholder” of the Company as defined in section 871(h)(3) of the Code, or any successor provision;

 

(f) being subject to income tax withholding or backup withholding as of the date of the purchase by the Holder or beneficial owner of the Notes; or

 

(g) being a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

(2)         to any Holder that is not the sole beneficial owner of the Notes, or a portion of the Notes, or that is a fiduciary, partnership or limited liability company, but only to the extent that a beneficial owner with respect to the Holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership or limited liability company would not have been entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment;

 

(3)         to any tax, duty, levy, assessment or other governmental charge which would not have been imposed but for the presentation of the note or evidence of beneficial ownership thereof (where presentation is required) for payment on a date more than 30 days after the date on which such payment becomes due and payable or the date on which payment is duly provided for, whichever occurs later;

 

(4)         to any tax, assessment or other governmental charge that would not have been imposed but for the failure of the Holder or any other Person to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity or connection with the United States of the Holder or beneficial owner of the Notes, if compliance is required by statute, by regulation of the United States or any taxing authority therein or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge;

 

(5)         to any inheritance, gift, estate, personal property, sales, transfer or similar tax, duty levy, assessment, or similar governmental charge;

 

(6)         to any tax, duty, levy, assessment, or other governmental charge that is payable otherwise than by withholding from payments in respect of the Notes;

 

(7)         to any tax, duty, levy, assessment or governmental charge that would not have been imposed but for an election by the Holder or beneficial owner of the Notes, the effect of which is to make one or more payments in respect of the Notes subject to United States federal income tax, state or local tax, or any other tax, duty, levy, assessment or other governmental charge;

 

(8)         to any tax, duty, levy, assessment or governmental charge imposed under any of Sections 1471 through 1474 of the Code, any applicable United States Treasury Regulations 

 

 

promulgated thereunder, or any judicial or administrative interpretation of any of the foregoing; or

 

(9)         to any combination of items (1), (2), (3), (4), (5), (6), (7), or (8) above.

 

This Note is subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to this Note. Except as specifically provided above, no payment will be required for any tax, assessment or other governmental charge imposed by any government or a political subdivision or taxing authority of or in any government or political subdivision.

 

If the Company is required to pay any additional amounts as described above with respect to the Notes, the Company will notify the Trustee and the Paying Agent pursuant to an Officer’s Certificate that specifies the additional amounts payable and when the additional amounts are payable.  If the Trustee and the Paying Agent do not receive such an Officer’s Certificate from the Company, the Trustee and the Paying Agent may rely on the absence of such an Officer’s Certificate in assuming that no such additional amounts are payable.

 

The term “United States” means the United States of America, the states of the United States, and the District of Columbia, and the term “United States Person” means any individual who is a citizen or resident of the United States for United States federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of Columbia, or any estate or trust the income of which is subject to United States federal income taxation regardless of its source.

 

If, as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any taxing authority in the United States), or any change in, or amendment to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after February 25, 2019, the Company becomes or, based upon a written opinion of independent counsel selected by the Company, will become obligated to pay additional amounts as described above with respect to the Notes, then the Company may at any time at the Company’s option redeem, in whole, but not in part, the Notes on not less than 30 nor more than 60 days’ prior notice to the Holders, at a redemption price equal to 100% of their principal amount plus accrued and unpaid interest on the Notes to the Redemption Date.

 

The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. The Notes are governed by the laws of the State of New York.

 

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription of the face of this Note, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN COM
    	
-
    	
as tenants in common
    
	
TEN ENT
    	
-
    	
as tenants by entireties (Cust)
    
	
JT TEN
    	
-
    	
As joint tenants with right of survivorship and not as tenants in   common
    
	
UNIF GIFT MIN ACT
    	
-
    	
 
    	
Custodian
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(Minor)
    	
 
    
	
 
    	
 
    	
Under Uniform Gifts to Minors Act
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(State)
    	
 
    
								

 

Additional abbreviations may also be used though not in the above list.

 

 

FORM OF ASSIGNMENT

 

For value received                                            hereby sell(s), assign(s) and transfer(s) unto                                              (Please insert social security or other identifying number of assignee) the within Note, and hereby irrevocably constitutes and appoints                                                                                         as attorney to transfer the said Note on the books of the Company, with full power of substitution in the premises.

 

 

Dated:

 

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature(s)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature(s) must be guaranteed by an Eligible Guarantor   Institution with membership in an approved signature guarantee program   pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934.EXECUTION
VERSION

 

PURCHASE
AND CONVERSION AGREEMENT

 

This
Purchase and Conversion Agreement (the “Agreement”) is entered into as of the 8th day of March,
2019, by and among Taronis Technologies, Inc., a Delaware corporation, formerly known as MagneGas Corporation, with offices located
at 11885 44th St. N. Clearwater, FL 33762 (the “Company”), and the undersigned holder of the Existing Preferred
Shares (as defined below) (the “Holder”), with reference to the following facts:

 

A.
In accordance with that certain Securities Purchase Agreement, dated as of June 15, 2017 (the “June Securities Purchase
Agreement”), by and among the Company and the buyers signatory thereto (the “June Buyers”), the Company,
among other things, issued to the Holder (in its capacity as a June Buyer thereunder) certain shares of Series C Convertible Preferred
Stock, $0.001 par value, of the Company (the “Series C Preferred Stock”).

 

B.
In accordance with that certain Securities Purchase Agreement, dated as of September 15, 2017 (the “September Securities
Purchase Agreement”), by and among the Company and the buyers signatory thereto (the “September Buyers”),
the Company, among other things, issued to the Holder (in its capacity as a September Buyer thereunder) certain shares of Series
E Convertible Preferred Stock, $0.001 par value, of the Company (the “Series E Preferred Stock”).

 

C.
The Company desires to (a) purchase (the “Purchase”) 499 shares of Series C Preferred Stock held by the Holder
and 31,765 shares of Series E Preferred Stock held by the Holder (together, the “Repurchase Preferred Shares”)
in exchange for a cash payment of $3,500,000 (the “Purchase Price”) and (b) convert (the “Conversion”)
5,000 shares of Series E Preferred Stock held by the Holder (the “Conversion Preferred Shares”, and together
with the Repurchase Preferred Shares, the “Existing Preferred Shares”) into 500,000 shares (the “Conversion
Shares”) of common stock of the Company, par value $0.001 per share (the “Common Stock”).

 

D.
Capitalized terms not defined herein shall have the meaning as set forth in the September Securities Purchase Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree
as follows:

 

1.
Purchase and Conversion. On the date hereof, the Company shall purchase from the Holder, and the Holder shall sell
to the Company, the Repurchase Preferred Shares for the Purchase Price, and the Holder shall convert the Conversion Preferred
Shares into the Conversion Shares.

 

(a)
On the date hereof, the Company shall deliver to the Holder by wire transfer, in U.S. dollars and immediately available funds,
in accordance with the wire instructions delivered by the Holder to the Company prior to the date hereof, an amount equal to the
Purchase Price.

 

(b)
On the date hereof, the Company shall deliver or cause to be delivered the Conversion Shares to the Holder or its designee’s
balance account with the Depository Trust Company (“DTC”) in accordance with the DTC instructions delivered
by the Holder to the Company prior to the date hereof. As of the date hereof, the Holder shall be deemed for all corporate purposes
to have become the holder of record of the Conversion Shares, irrespective of the date the Conversion Shares are credited to the
Holder’s or its designee’s balance account with DTC in accordance herewith. Immediately upon receipt of the Conversion
Shares, the Holder shall cease to be a holder of the Conversion Preferred Shares.

 

    	 

     

    

 

(c)
Immediately following the Holder’s receipt of the Purchase Price, the Repurchase Preferred Shares shall be automatically
cancelled, the Holder shall cease to be a holder of the Repurchase Preferred Shares.

 

(d)
The Company and the Holder shall execute and/or deliver such other documents and agreements as are customary and reasonably necessary
to effectuate the Purchase and the Conversion.

 

2.
AMENDMENTS TO TRANSACTION DOCUMENTS.

 

(a)
Ratifications. Except as otherwise expressly provided herein, the June Securities Purchase Agreement, the September Securities
Purchase Agreement and each other Transaction Document (as defined in the June Securities Purchase Agreement) and other Transaction
Document (as defined in the September Securities Purchase Agreement), is, and shall continue to be, in full force and effect and
is hereby ratified and confirmed in all respects (including, without limitation, with respect to any indemnification rights and
obligations thereunder and any participation rights set forth therein), except that on and after the date hereof: (i) all references
in any of the June Securities Purchase Agreement to “this Agreement”, “hereto”, “hereof”,
“hereunder” or words of like import referring to the June Securities Purchase Agreement shall mean such June Securities
Purchase Agreement as amended by this Agreement, and (ii) all references in each other Transaction Document (as defined in the
June Securities Purchase Agreement) to the “Securities Purchase Agreement”, “thereto”, “thereof”,
“thereunder” or words of like import referring to a Securities Purchase Agreement shall mean the applicable Securities
Purchase Agreement as amended by this Agreement. Notwithstanding the foregoing, the Holder hereby acknowledges and agrees that,
upon the consummation of the Purchase and the Conversion, Section 4(q) of the September Securities Purchase Agreement shall have
no further force and effect and shall be null and void.

 

(b)
Amendments to Transaction Documents. On and after the date hereof, the June Securities Purchase Agreement is hereby amended
as follows:

 

(i)
The first sentence of Section 4(o) is hereby amended by replacing “So long as any Warrants remain outstanding” with
“Until July 23, 2022”.

 

(ii)
Section 4(o)(i) is hereby amended by replacing “such Buyer’s pro rata portion of 50% of the Offered Securities, provided
that the number of Offered Securities which such Buyer shall have the right to subscribe for under this Section 4(o) shall be
(x) based on such Buyer’s pro rata portion of the aggregate original principal amount of the Preferred Shares purchased
hereunder by all Buyers (the “Basic Amount”)” with “(x) 65% of the Offered Securities (the “Basic
Amount”)”.

 

    	2

     

    

 

3.
Representations and Warranties of the Company. The Company represents and warrants to the Holder, as of the date
hereof, as of the time of consummation of the Purchase and as of the time of consummation of the Conversion, that:

 

(a)
Organization and Qualification. The Company and each Subsidiary (as defined in the September Securities Purchase Agreement)
are duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its
incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets
and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of the provisions
of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents except, with respect
to the Subsidiaries, for violations which would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect. The Company and each Subsidiary are duly qualified to conduct its respective businesses and are
in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the
case may be, would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.
As used herein, “Material Adverse Effect” means any material adverse effect on (A) the business, properties,
assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or
any Subsidiary, individually or taken as a whole, (B) the transactions contemplated hereby or (C) the authority or ability of
the Company to perform any of its obligations under this Agreement.

 

(b)
Authorization and Binding Obligation. The Company has the requisite power and authority to enter into and perform its obligations
under this Agreement and each of the other agreements and certificates entered into by the parties hereto in connection with the
transactions contemplated by this Agreement (collectively, the “Purchase and Conversion Documents”), including,
without limitation, to consummate the Purchase and the Conversion and to issue the Conversion Shares in accordance with the terms
hereof and thereof. The execution and delivery of the Purchase and Conversion Documents by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby, including, without limitation, the Purchase, the Conversion and
the issuance of the Conversion Shares, have been duly authorized by the Board of Directors of the Company and, other than such
filings required under applicable securities or “Blue Sky” laws of the states of the United States, no further filing,
consent or authorization is required by the Company or of its Board of Directors or its shareholders in connection with the Purchase
or the Conversion. This Agreement and the other Purchase and Conversion Documents have been duly executed and delivered by the
Company and constitute the legal, valid and binding obligations of the Company enforceable against the Company in accordance with
their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies.

 

    	3

     

    

 

(c)
No Conflict; Required Filings and Consents.

 

(i)
The execution, delivery and performance of the Purchase and Conversion Documents by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby will not (A) result in a violation of the Certificate of Incorporation (as
defined in the September Securities Purchase Agreement), the terms of any share capital of the Company or any of its Subsidiaries,
the Bylaws (as defined in the September Securities Purchase Agreement) or any of the organizational documents of the Company or
any of its Subsidiaries, (B) 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 to which the Company or any of its Subsidiaries is a party, or (C) result in a violation of any law, rule,
regulation, order, judgment or decree (including U.S. federal and state securities laws, rules and regulations, and the rules
and regulations of the Nasdaq Capital Market (the “Principal Market”)) applicable to the Company or any of
its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except, in
the case of (B) or (C), as would not be reasonably expected to result in a Material Adverse Effect.

 

(ii)
Neither the Company nor any of its Subsidiaries is required to obtain any consent, authorization or order of, or make any filing
or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person (as defined
in the September Securities Purchase Agreement) in order for it to execute, deliver or perform any of its obligations under or
contemplated by the Purchase and Conversion Documents, in each case in accordance with the terms hereof or thereof. All consents,
authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have
been obtained or effected, or will have been obtained or effected, on or prior to the date hereof, and the Company and its Subsidiaries
are unaware of any facts or circumstances that might prevent the Company from obtaining or effecting any of the registration,
application or filings pursuant to the preceding sentence.

 

(d)
No Integration. None of the Company, its Subsidiaries, any of their affiliates, or any Person acting on 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 any of Conversion Shares under the Securities Act or cause this offering of the Conversion
Shares to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable shareholder approval
provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which
any of the securities of the Company are listed or designated. None of the Company, its Subsidiaries, their affiliates or any
Person acting on their behalf will take any action or steps referred to in the preceding sentence that would require registration
of any of Conversion Shares under the Securities Act or cause the offering of the Conversion Shares to be integrated with other
offerings.

 

(e)
Issuance of Conversion Shares. The issuance of the Conversion Shares is duly authorized and upon issuance in accordance
with the terms of the Purchase and Conversion Documents will be validly issued, fully paid and non-assessable and free from all
preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof, with the holders
being entitled to all rights accorded to a holder of Common Stock.

 

    	4

     

    

 

(f)
Disclosure. Other than as set forth in the 8-K Filing (as defined below), the Company confirms that neither it nor any
other Person acting on its behalf has provided the Holder or its agents or counsel with any information that constitutes or could
reasonably be expected to constitute material, non-public information. The Company understands and confirms that the Holder will
rely on the foregoing representations in effecting transactions in the Conversion Shares. All disclosure provided to the Holder
regarding the Company and its Subsidiaries, their business and the transactions contemplated hereby, furnished by or on behalf
of the Company is true and correct and does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not
misleading. No event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries
or its or their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation,
requires public disclosure or announcement by the Company on or before the date hereof but which has not been so publicly announced
or disclosed.

 

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

 

(a)
Organization and Authority. The Holder is an entity duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions
contemplated by the Purchase and Conversion Documents and otherwise to carry out its obligations hereunder and thereunder. The
Holder has the requisite power and authority to enter into and perform its obligations under the Purchase and Conversion Documents.
The execution and delivery of the Purchase and Conversion Documents by the Holder and the consummation by the Holder of the transactions
contemplated hereby and thereby has been duly authorized by the Holder’s board of directors or other governing body.

 

(b)
Ownership of Existing Preferred Shares. The Holder owns the Existing Preferred Shares free and clear of any liens (other
than the obligations pursuant to this Agreement and applicable securities laws). The Holder does not hold any shares of Series
C Preferred Stock or Series E Preferred Stock other than the Existing Preferred Shares.

 

(c)
Reliance on Exemptions. The Holder understands that the Conversion Shares are being offered and exchanged in reliance on
specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying in part upon the truth and accuracy of, and the Holder’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Holder set forth herein and in the other Purchase and Conversion Documents in order
to determine the availability of such exemptions and the eligibility of the Holder to acquire the Conversion Shares.

 

(d)
Validity; Enforcement. This Agreement and the Purchase and Conversion Documents to which the Holder is a party have been
duly and validly authorized, executed and delivered on behalf of the Holder and shall constitute the legal, valid and binding
obligations of the Holder enforceable against the Holder in accordance with their respective terms, except as such enforceability
may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

    	5

     

    

 

(e)
No Conflicts. The execution, delivery and performance by the Holder of this Agreement and the Purchase and Conversion Documents
to which the Holder is a party, and the consummation by the Holder of the transactions contemplated hereby and thereby will not
(i) result in a violation of the organizational documents of the Holder, (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 to which the Holder is a party, or (iii) result in a violation
of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to the Holder,
except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually
or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Holder to perform its obligations
hereunder.

 

5.
Fees. The Company shall reimburse Kelley Drye & Warren LLP (counsel to the Holder), on demand, for all reasonable,
documented costs and expenses incurred by it in connection with preparing and delivering this Agreement (including, without limitation,
all reasonable, documented legal fees and disbursements in connection therewith, and due diligence in connection with the transactions
contemplated thereby) in an aggregate amount not to exceed $10,000.

 

6.
Form D and Blue Sky. The Company shall make all filings and reports relating to the transactions contemplated hereby
as required under applicable securities or “Blue Sky” laws of the states of the United States following the date hereof,
if any.

 

7.
Disclosure of Transaction. The Company shall, on or before 8:30 a.m., New York City time, on or prior to the first
(1st) Business Day (as defined in the September Securities Purchase Agreement) after the date of this Agreement, file
a Current Report on Form 8-K describing the terms of the transactions contemplated hereby in the form required by the Securities
Exchange Act of 1934 (the “Exchange Act”) and attaching the Purchase and Conversion Documents, to the extent
they are required to be filed under the Exchange Act, as exhibits to such filing (including all attachments, the “8-K
Filing”). The 8-K Filing shall disclose all material, non-public information (if any) provided up to such time to the
Holder by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents. In addition,
effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations
under any agreement with respect to the transactions contemplated by the Purchase and Conversion Documents or as otherwise disclosed
in the 8-K Filing, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers,
directors, affiliates, employees or agents, on the one hand, and any of the Holder or any of their affiliates, on the other hand,
shall terminate. Neither the Company, its Subsidiaries nor the Holder shall issue any press releases or any other public statements
with respect to the transactions contemplated hereby; provided, however, the Company shall be entitled, without the prior approval
of the Holder, to make a press release or other public disclosure with respect to such transactions (a) in substantial conformity
with the 8-K Filing and contemporaneously therewith or (b) as is required by applicable law and regulations (provided that in
the case of clause (a) the Holder shall be informed by the Company in connection with any such press release or other public disclosure
prior to its release). Without the prior written consent of the Holder (which may be granted or withheld in the Holder’s
sole discretion), except as required by applicable law, the Company shall not (and shall cause each of its Subsidiaries and affiliates
to not) disclose the name of the Holder in any filing, announcement, release or otherwise.

 

    	6

     

    

 

8.
Miscellaneous. Section 9 of the Securities Purchase Agreement, with the exception of Section 9(e), is hereby incorporated
by reference herein, mutatis mutandis. As used therein:

 

	 	(a)	“Buyer”
or “Buyers” shall be deemed to refer to the Holder;
	 	 	 
	 	(b)	“Agreement”
and “Transaction Documents” shall be deemed to refer to this Agreement;
	 	 	 
	 	(c)	“MagneGas
Corporation” shall be deemed to refer to Taronis Technologies, Inc.; and
	 	 	 
	 	(d)	“Securities”
shall be deemed to refer to the Conversion Shares.

 

9.
Amendments. This Agreement may not be amended or modified unless in writing by both of the parties hereto, and no
condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit.

 

10.
Termination. Notwithstanding anything contained in this Agreement to the contrary, if the Company does not deliver
the Purchase Price and the Conversion Shares to the Holder in accordance with Section 1 hereof, then, at the election of the Holder
delivered in writing to the Company at any time after the fifth (5th) business day immediately following the date of
this Agreement, this Agreement shall be terminated and be null and void ab initio and the Existing Preferred Shares shall not
be cancelled hereunder and shall remain outstanding as if this Agreement never existed.

 

11.
Most Favored Nation. The Company hereby represents and warrants as of the date hereof and covenants and agrees from
and after the date hereof that none of the terms offered to any Person with respect to any consent, release, amendment, settlement
or waiver relating to the Purchase (each, a “Settlement Document”), is or will be more favorable to such Person
than those of the Holder and this Agreement. If, and whenever on or after the date hereof, the Company enters into a Settlement
Document, then (a) the Company shall provide notice thereof to the Holder immediately following the occurrence thereof and (b)
the terms and conditions of this Agreement shall be, without any further action by the Holder or the Company, automatically amended
and modified in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more favorable
terms and/or conditions (as the case may be) set forth in such Settlement Document, provided that upon written notice to the Company
at any time the Holder may elect not to accept the benefit of any such amended or modified term or condition, in which event the
term or condition contained in this Agreement shall apply to the Holder as it was in effect immediately prior to such amendment
or modification as if such amendment or modification never occurred with respect to the Holder. The provisions of this Section
11 shall apply similarly and equally to each Settlement Document.

 

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remainder of the page is intentionally left blank]

 

    	7

     

    

 

IN
WITNESS WHEREOF, the Holder and the Company have executed this Agreement as of the date set forth on the first page of this
Agreement.

 

	 	COMPANY:
	 	 
	 	TARONIS
    TECHNOLOGIES, INC.
	 	 	 
	 	By:	/s/
    Scott Mahoney 
	 	Name:	Scott
    Mahoney
	 	Title:	Chief
    Executive Officer   

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Holder and the Company have executed this Agreement as of the date set forth on the first page of this
Agreement.

 

	 	HOLDER:
	 	 
	 	ALTO
    OPPORTUNITY MASTER FUND, SPC - SEGREGATED MASTER PORTFOLIO B
	 	 	 
	 	By:	/s/
    Waqas Katri 
	 	Name:	Waqas
    Katri
	 	Title:	Director

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