Document:

Exhibit 10.1

 

FORM
OF 

NOTE
PURCHASE AGREEMENT

 

This
Note Purchase Agreement is dated as of __________, 20__ (the “Agreement”) by and among Taronis Fuels, Inc., a Delaware
corporation (ticker: TRNF) (the “Company”), and the individuals and entities who become parties to this Agreement
by executing and delivering a Note Purchase Agreement Signature Page in the form of Exhibit A hereto in accordance with Section
2 hereof (each a “Purchaser” and, collectively, the “Purchasers”).

 

In
consideration of the mutual promises and covenants contained in this Agreement, the parties hereto agree as follows:

 

		1.	Authorization;
                                            Sale of Notes.

 

1.1       Authorization.
The Company has duly authorized the sale and issuance, pursuant to the terms of this Agreement of Convertible Promissory Notes in the
form attached hereto as Exhibit B in the aggregate principal amount of up to $___________ (each a “Note” and, collectively,
the “Notes”).

 

1.2       Use
of Proceeds. The Company will use the proceeds from the sale of the Notes for working capital and other operational expenses.

 

2.       Closing.
Subject to the terms and conditions of this Agreement, the closing (the “Closing”) of the sale and purchase of Notes
under this Agreement shall take place remotely via the exchange of documents and signatures on the date hereof (the date of such Closing,
the “Closing Date”). At the Closing, the Company shall deliver a Note to each Purchaser participating in the Closing
in the original principal amount set forth next to such Purchaser’s name on its signature page hereto, and each Purchaser shall
pay to the Company the purchase price therefor, which shall be equal to such original principal amount.

 

		3.	Certain
                                            Terms of the Notes.

 

3.1       Maturity.
Each Note shall be due and payable on the earlier of (i) on or after ____________, 20__ (the “Maturity Date”) or (ii)
the occurrence of an Event of Default (as defined below).

 

3.2       Interest.
The principal balance of the Notes will bear simple interest at a rate of One Percent (1%) per annum payable in cash.

 

3.3       Payments.
Any payments on the Notes will be made in proportion to the outstanding principal amount each such Note represents relative to the aggregate
outstanding principal amount of all Notes. The Company shall not prepay any portion of the Notes without the prior written consent of
each Purchaser.

 

    	-1- 

     

    

 

3.4       Conversion;
Sale of Company.

 

(a)       Conversion
Price. The conversion price shall be Seven Dollars ($7.00) per share, subject to anti-dilution adjustment set forth in Section
4 (the “Conversion Price”).

 

(b)       Upon
a Sale of the Company. The Company shall notify the holders of then outstanding Notes of the closing of a Company Sale (as defined
below) at least fifteen (15) days prior to the expected closing of such Company Sale. Upon the closing of such Company Sale, each Purchaser
shall (i) have the right, but not obligation, to convert in whole or in part of the Note plus all accrued and unpaid interest thereon
to the date of such conversion or (ii) receive an amount equal to Ten Percent (10%) internal rate of return (IRR), as calculated using
the XIRR function in Microsoft Excel with the initial amount being the outstanding principal balance followed by any interest payments
thereupon. A “Company Sale” shall occur upon the sale, conveyance, or other disposition of majority of the Company’s
assets or the Company’s merger with or into, or consolidation with, any other entity (other than a wholly-owned subsidiary of the
Company) or any other transaction or series of related transactions as a result of which less than fifty percent (50%) of the voting
power of the surviving entity (or, if the surviving entity is a wholly-owned subsidiary of another entity, the ultimate parent of the
surviving entity) is held by persons that are stockholders of the Company as of immediately prior to such event; provided, however, that
a merger effected exclusively for the purpose of changing the domicile of the Company shall not be deemed to be a Company Sale; and provided,
further, that the term “Company Sale” shall not apply to equity financings primarily for capital-raising purposes.

 

3.5       Effect
of Conversion, Etc. Upon conversion of any Note pursuant to this Section 3, provided that the securities issued upon such
conversion are duly and validly issued and are nonassessable, the Company will be forever released and discharged from all of its obligations
and liabilities under such Note, including without limitation the obligation to pay the principal amount and accrued interest. No fractional
shares shall be issuable by the Company upon conversion of any Note. In lieu of any fractional share which would otherwise be issuable
upon conversion of any Note, the Company shall pay to the holder of such Note an amount in cash equal to the product of such fraction
multiplied by the applicable conversion price. Upon conversion of each Note, the holder thereof shall surrender such Note, duly endorsed,
at the principal offices of the Company. Following such surrender, the Company will, at its expense, issue and deliver to such holder
a certificate or certificates for the securities to which such holder is entitled as a result of such conversion and pay, or cause to
be paid, to such holder for any cash amounts payable in lieu of any fractional share in accordance with this Section 3.5.

 

3.6       Events
of Default. Each of the following shall constitute an “Event of Default,” unless waived in writing by the Purchasers:

 

(a)       the
failure by the Company to pay any amount due hereunder within 21 days of the due date thereof;

 

(b)       a
material breach of any covenant contained in the Notes or other debt obligations of the Company; or

    	-2- 

     

    

 

(c)       the
appointment of a receiver of any property, the assignment or trust mortgage for the benefit of creditors, the commencement of any kind
of insolvency proceedings under any bankruptcy or other law relating to the relief of debtors, or the entry of an order for relief with
respect to the Company in any proceeding pursuant to the United States Bankruptcy Code, as amended.

 

4.       Anti-dilution
Adjustments. The Conversion Price, and the number and type of securities to be received upon conversion of this Note, shall be subject
to adjustment as follows:

 

4.1       Common
Stock Dividend, Subdivision, Combination, Share Split, Recapitalization or Reclassification of Common Stock. In the event that the
Company shall at any time or from time to time prior to the conversion or payment of this Note, effect a subdivision or combination of
its outstanding Common Stock or in the event of a reclassification, recapitalization, share split, share combination, bonus issue or
other distribution payable in securities of the Company or any other Person, then, and in each such case, the Conversion Price in effect
immediately prior to such event shall be proportionally adjusted (and any other appropriate actions shall be taken by the Company) so
that the Purchasers shall be entitled to receive the number of shares of Common Stock or other securities of the Company that the Purchasers
would have owned or would have been entitled to receive upon or by reason of any of the events described above, had this Note been converted
immediately prior to the occurrence of such event. An adjustment made pursuant to this Section 4.1 shall become effective retroactively
(x) in the case of any such dividend or distribution, to a date immediately following the close of business on the record date for the
determination of holders of Common Stock entitled to receive such dividend or distribution or (y) in the case of any such subdivision,
combination, reclassification, recapitalization or share split, to the close of business on the day upon which such corporate action
becomes effective.

 

4.2       Other
Changes. If the Company at any time or from time to time, prior to the conversion of this Note, shall take any action affecting its
Common Stock or share capital similar to or having an effect similar to any of the actions described in Section 4.1, then, and
in each such case, the Conversion Price shall be adjusted in such manner as would be equitable in the circumstances.

 

4.3       Certificate
as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 4, the Company at its expense
shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Purchaser a certificate
setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based.

 

4.4       No
Impairment. The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms
to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions
of this Section 4 and in the taking of all such action as may be necessary or appropriate in order to protect the rights of Purchasers
against impairment.

 

4.5       Cash
Distributions. In the event that the Company shall at any time or from time to time prior to the conversion or payment of the Note
declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, by way of
return of capital or otherwise (including any dividend or distribution to the Company’s stockholders in cash or shares (or rights
to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the holder of the
Note shall be entitled, concurrently with the payment of such Distribution to the Company’s stockholders, to receive the amount
of such assets which would have been payable to the holder of the Note with respect to the shares of Common Stock issuable upon conversion
of the Note had the holder of the Note been the holder of such shares of Common Stock on the record date for the determination of stockholders
entitled to such Distribution.

 

    	-3- 

     

    

 

5.       Representations
and Warranties of the Company. The Company represents and warrants to each Purchaser as of the date of this Agreement that:

 

5.1       Corporate
Organization and Authority. The Company:

 

(a)       is
a corporation duly organized, validly existing, and in good standing in the State of Delaware; and

 

(b)       has
the corporate power and authority to own and operate its properties and to carry on its business as now conducted and as proposed to
be conducted.

 

5.2       Corporate
Power. The Company has all requisite legal and corporate power and authority to execute and deliver this Agreement, to sell and issue
the Notes hereunder, and to carry out and perform its obligations under the terms of the Agreement.

 

5.3       Due
Execution. The execution and delivery of this Agreement and the Notes by the Company and the consummation of the transactions contemplated
hereby have been duly authorized by all requisite corporate action on the part of the Company. This Agreement and the Notes to be issued
hereunder have been duly executed and delivered by the Company and constitute the valid and binding obligation of the Company, enforceable
against the Company in accordance with their terms, except to the extent that such enforcement may be subject to applicable bankruptcy,
insolvency, reorganization, moratorium, or other laws of general application relating to or affecting enforcement of creditors’
rights and laws concerning equitable remedies.

 

5.4       Compliance
with Laws. To its knowledge, the Company is not in violation of any applicable statute, rule, regulation, order or restriction of
any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its business or the ownership
of its properties, the violation of which would have a material adverse effect on the Company or its business.

 

6.       Representations,
Warranties, and Covenants of each Purchaser. Each Purchaser represents and warrants to and covenants with the Company as follows
as of the Closing Date:

 

6.1       Authorization.
When executed and delivered by the Purchaser, and assuming execution and delivery by the Company, this Agreement will constitute a valid
and binding obligation of the Purchaser, enforceable in accordance with its terms, except to the extent that such enforcement may be
subject to applicable bankruptcy, insolvency, reorganization, moratorium, or other laws of general application relating to or affecting
enforcement of creditors’ rights and laws concerning equitable remedies.

 

    	-4- 

     

    

 

6.2       Brokers
and Finders. The Purchaser has not retained any investment banker, broker, or finder in connection with the transactions contemplated
by this Agreement.

 

6.3       Investment.
The Purchaser is acquiring the Note for investment for the Purchaser’s own account, not as a nominee or agent, and not with a view
to the sale or distribution of any part thereof. The Purchaser has no present intention of selling, granting any participation in, or
otherwise distributing the Note. By executing this Agreement, the Purchaser further represents that it has no contract, undertaking,
agreement, or arrangement with any person to sell, transfer, or grant participation to such person or to any third person, with respect
to the Note.

 

6.4       Experience;
Etc. The Purchaser represents that he, she or it: (a) has such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of a prospective investment in the Note being purchased by the Purchaser; (b) has received
all the information requested from the Company that might be necessary or appropriate for deciding whether to obtain the Note; (c) has
had the opportunity to discuss the Company’s business, management, and financial affairs with the Company’s management; (d)
has the ability to bear the economic risks of this investment; and (e) is able, without materially impairing its financial condition,
to hold the Note and shares of Common Stock issuable upon conversion of the Note (collectively, the “Securities”)
for an indefinite period of time and to suffer a complete loss on this investment.

 

6.5       No
Reliance. The Purchaser has not relied upon any representation or warranty by the Company or its representatives in connection with
the transactions contemplated hereby other than those set forth in this Agreement.

 

6.6       Accredited
Investor. The Purchaser hereby represents that he, she or it qualifies as an Accredited Investor, as such term is defined in Rule
501(a) of Regulation D (or any successor provision or amendment thereto) promulgated under the Securities Act (an “Accredited
Investor”).

 

6.7       “Bad
Actor” Disqualification. The Purchaser hereby represents that neither it nor any of its affiliates or other related parties
is a “bad actor,” as defined in Rule 506(d) promulgated under the Securities Act.

 

		7.	Legends
                                            and Restrictions on Transfer.

 

7.1       Securities
Act. The Securities shall bear such restrictive legends as the Company and the Company’s counsel deem necessary or advisable
under applicable law or pursuant to this Agreement, including, without limitation, a legend substantially in the following form:

 

“THE
SECURITIES REPRESENTED HEREBY AND ANY SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 OR REGISTERED OR QUALIFIED UNDER THE SECURITIES OR “BLUE SKY” LAWS OF ANY JURISDICTION.
SUCH SECURITIES AND ANY SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS THE REGISTRATION
PROVISIONS OF SAID ACT AND THE REGISTRATION, QUALIFICATION AND FILING REQUIREMENTS OF ALL APPLICABLE JURISDICTIONS HAVE BEEN COMPLIED
WITH OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF LEGAL COUNSEL SATISFACTORY TO THE COMPANY, IN FORM AND SUBSTANCE SATISFACTORY TO
THE COMPANY, THAT THE PROPOSED TRANSACTION WILL BE EXEMPT FROM REGISTRATION, QUALIFICATION AND FILING IN ALL SUCH JURISDICTIONS.”

 

    	-5- 

     

    

 

7.2       No
Transfer. No Purchaser may sell or transfer any Note other than to an affiliate of such Purchaser without the prior written consent
of the Company.

 

		8.	Miscellaneous.

 

8.1       Successors
and Assigns. This Agreement shall not be assignable by any party without the written consent of the others; provided, that a merger
or consolidation to which the Company is a party shall be deemed not be an assignment requiring consent; and provided, further, that
the Company may assign this Agreement without the consent of the other parties hereto to any individual or entity that acquires control
of the stock or all or substantially all of the assets or business of the Company. This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto and their respective successors and permitted assigns.

 

8.2       Survival
of Representations and Warranties. All representations and warranties contained herein shall survive the execution and delivery of
this Agreement and the Closing.

 

8.3       Severability.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision
of this Agreement.

 

8.4       Governing
Law; Jurisdiction; Venue. This Agreement, and all matters arising directly and indirectly herefrom (“Covered Matters”),
shall be governed in all respects by the laws of the state of Delaware. Each of the parties hereto irrevocably submits to the personal
jurisdiction of the courts of the state of Delaware and the United States District Court for the District of Delaware for the purpose
of any suit, action, proceeding or judgment relating to or arising out of the Covered Matters. Service of process in connection with
any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for
the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in
any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any objection to the
laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient forum.

 

    	-6- 

     

    

 

8.5       Notices.
All notices, requests, consents, and other communications under this Agreement shall be in writing and shall be delivered by hand, sent
by overnight courier, e-mail, or mailed by first class certified or registered mail, return receipt requested, postage prepaid:

 

(a)       If
to the Company:

 

Taronis
Fuels, Inc.

24980
N. 83rd Avenue, Suite 100

Peoria,
AZ 85383

Attn:

E-mail:

 

(b)       If
to a Purchaser, at the address set forth next to the Purchaser’s name on the signature page hereto, or, in either case, at such
other address for a party as such party may have furnished in writing in accordance with this Section 8.5.

 

Notices
provided in accordance with this Section 8.5 shall be deemed delivered (i) upon personal delivery with signature required, (ii)
one Business Day after they have been sent to the recipient by reputable overnight courier service (charges prepaid and signature required),
(iii) upon confirmation of successful transmission of a facsimile message containing such notice if sent before 5 p.m., local time of
the recipient, on any Business Day, and as of 9 a.m. local time of the recipient on the next Business Day if sent thereafter or on a
day that is not a Business Day, (iv) if sent via e-mail, upon receipt if sent before 5 p.m., local time of the recipient, on any Business
Day, and as of 9 a.m. local time of the recipient on the next Business Day if sent thereafter or on a day that is not a Business Day,
or (v) three Business Days after deposit in the United States mail. The term “Business Day” as used in this Section 8.5
shall mean any day other than Saturday, Sunday or a day on which banking institutions are not required to be open in the State of
Delaware.

 

8.6       Complete
Agreement. This Agreement (including its Exhibits) constitutes the entire agreement and understanding of the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements and understandings, written and oral, relating to such subject
matter.

 

8.7       Withholdings.
The Company shall be entitled to deduct and withhold from any payments on the Notes such amount, if any, as Company determines in good
faith is required to be deducted and withheld with respect to the making of such payment under applicable tax law. To the extent that
amounts are so withheld, such withheld amounts shall be treated for all purposes as having been paid to the holder of the Note in respect
of which such deduction and withholding was made. The Company shall provide the holder of the Note with any information or documentation
relating to any such withholdings requested by such holder.

 

8.8       Amendments
and Waivers. This Agreement and the corresponding terms of each Note may be amended, modified, or terminated, and the observance
of any term of this Agreement may be waived, with respect to all parties to this Agreement (either generally or in a particular instance
and either retroactively or prospectively), with the written consent of the Company and the Purchasers; provided, that no such amendment,
modification or waiver shall be effective to the extent such amendment, modification or waiver adversely affects the rights of any holder
of a Note in a manner different from those of such consenting holders (other than differences related to the different principal amounts
or issue dates of the Notes) without the consent of each such differently affected holder; and provided, further, that consent by the
Purchasers shall not be required for the addition of additional Purchasers as parties to this Agreement. No waivers of or exceptions
to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such term, condition or provision.

 

    	-7- 

     

    

 

8.9       Further
Assurances. The parties agree to execute such further instruments and to take such further actions as may reasonably be necessary
to carry out the intent of this Agreement.

 

8.10       Counterparts;
Facsimile Signatures. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original
instrument, and all of which together shall for all purposes constitute one and the same Agreement. A signature of any party to this
Agreement transmitted by facsimile, electronic mail (including pdf) or other electronic means shall be deemed to have been duly and validly
delivered and be valid and effective for all purposes.

 

8.11       Pronouns.
Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms,
and the singular form of nouns and pronouns shall include the plural, and vice versa.

 

8.12       Section
Headings and References. The section headings are for the convenience of the parties and in no way alter, modify, amend, limit, or
restrict the contractual obligations of the parties. Any reference in this agreement to a particular section or subsection shall refer
to a section or subsection of this Agreement, unless specified otherwise.

 

[Remainder
of page intentionally left blank.]

 

    	-8- 

     

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Note Purchase Agreement as of the date set forth above.

 

	 	TARONIS
    FUELS, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Signature
Page to Note Purchase Agreement

 

    	-9- 

     

    

 

Exhibit
A

 

Note
Purchase Agreement Signature Page

 

By
execution and delivery of this signature page, the undersigned hereby agrees that he, she, or it is a Purchaser, as defined in that certain
Note Purchase Agreement (the “Purchase Agreement”) by and among Taronis Fuels, Inc., a Delaware corporation (the “Company”),
and the Purchasers (as defined in the Purchase Agreement), dated as of ____________, acknowledges having read the representations in
the Purchase Agreement contained in the section entitled “Representations, Warranties, and Covenants of each Purchaser,”
and hereby represents that the statements contained therein are complete and accurate with respect to the undersigned as a Purchaser.

 

Executed,
in counterpart, as of the date set forth below.

 

	 	 
	 	Print Name
    of Purchaser (Individual or Entity)
	 	 
	 	 
	 	Signature
    of Purchaser or Authorized Agent
	 	 
	 	 
	 	Print Name
    of Authorized Agent (If Entity)
	 	 
	 	 
	 	Title of
    Authorized Agent (If Entity)

 

	 	Date:	 

 

	 	Amount
    Invested: $ ________________________________
	 	 
	 	Address:
	 	 
	 	Email
    Address:

 

Signature
Page to Note Purchase Agreement

 

    	 

     

    

 

Exhibit
B

 

Form
of Convertible Note

 

See
attached.

 

    	 

     

    

 

THE
SECURITIES REPRESENTED HEREBY AND ANY SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 OR REGISTERED OR QUALIFIED UNDER THE SECURITIES OR “BLUE SKY” LAWS OF ANY JURISDICTION.
SUCH SECURITIES AND ANY SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS THE REGISTRATION
PROVISIONS OF SAID ACT AND THE REGISTRATION, QUALIFICATION AND FILING REQUIREMENTS OF ALL APPLICABLE JURISDICTIONS HAVE BEEN COMPLIED
WITH OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF LEGAL COUNSEL SATISFACTORY TO THE COMPANY, IN FORM AND SUBSTANCE SATISFACTORY TO
THE COMPANY, THAT THE PROPOSED TRANSACTION WILL BE EXEMPT FROM REGISTRATION, QUALIFICATION AND FILING IN ALL SUCH JURISDICTIONS.

 

CONVERTIBLE
PROMISSORY NOTE

 

	$________	__________,
    20__

 

FOR
VALUE RECEIVED, Taronis Fuels, Inc., a Delaware corporation (the “Company”) hereby promises to pay to the order of
________________ (the “Holder”), the principal amount of ____________ Dollars ($____________) on the Maturity Date.

 

This
Note is one of a series of Notes that are being issued pursuant to a Note Purchase Agreement dated as of _____________, 20__, by and
among the Company and the investors named therein, including the Holder (as it may be amended from time to time, the “Purchase
Agreement”). Capitalized terms used herein but not otherwise defined shall have the meaning given to such terms in the Purchase
Agreement. Each Note ranks equally and ratably with the other Notes without priority over one another. No payment shall be made hereunder
unless payment is made with respect to the other Notes in an amount which bears the same ratio to the then unpaid principal and accrued
but unpaid interest on such other Notes as the payment made hereon bears to the then unpaid principal and accrued but unpaid interest
under this Note.

 

1.       Interest.
The principal balance of this Note outstanding from time to time shall bear simple interest at the applicable interest rate specified
in the Purchase Agreement. Such interest shall accrue and shall be due and payable annually, at the anniversary date of the date of issuance
of this Note each year.

 

2.       Payments.
Payment of principal and interest shall be made in lawful money of the United States of America at the address of the Holder set forth
below, or at such other place as the holder hereof shall have designated to the Company in writing.

 

3.       Events
of Default. Upon the occurrence of any Event of Default, the entire unpaid principal balance of this Note and all unpaid accrued
interest hereunder shall become immediately due and payable without notice or demand.

 

    	-1- 

     

    

 

4.       Conversion.

 

4.1       Voluntary
Conversion. At any time prior to the Maturity Date (or any time after the Maturity Date if this Note remains outstanding), the Holder
shall be entitled, by written notice to the Company, to convert the outstanding principal balance and unpaid accrued interest on this
Note, in whole or in part, into shares of the Company’s Common Stock, at the Conversion Price.

 

4.2.       Conversion
Price. The conversion price shall be Seven Dollars ($7.00) per share, subject to anti-dilution adjustment specified in the Purchase
Agreement (the “Conversion Price”).

 

4.3.       Company
Sale. Upon the closing of a Company Sale, the Holder shall be entitled to receive in respect of this Note certain consideration as
more fully described in the Purchase Agreement.

 

5.       New
Note. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note,
the Company will issue a new promissory note, of like tenor and amount and dated the original date of this Note, in lieu of such lost,
stolen, destroyed or mutilated Note, and in such event the holder thereof shall indemnify and hold harmless the Company in respect of
any such lost, stolen, destroyed or mutilated Note.

 

6.       Miscellaneous.

 

6.1.       The
undersigned and every endorser or guarantor of this Note, regardless of the time, order or place of signing, waives presentment, demand,
protest and notice of every kind and assents to any one or more extensions or postponements of the time of payment or any other indulgences,
to any substitutions, exchanges or releases of collateral available to the Holder, if any, and to the additions or releases of any other
parties or persons primarily or secondarily liable.

 

6.2.       The
provisions of this Note shall be governed by, and construed and enforced in accordance with, the substantive laws of the State of Delaware,
without regard to its principles of conflicts of laws.

 

6.3.       Notwithstanding
anything herein to the contrary, payment of any interest, expense or other amount shall not be required if such payment would be unlawful.
In any such event, this Note shall automatically be deemed amended so that interest charges and all other payments required hereunder,
individually and in the aggregate, shall be equal to but not greater than the maximum permitted by law.

 

6.4.       This
Note may be amended or modified, and any provision of this Note may be waived, only with the written consent of the Company and (a) the
holder hereof, or (b) the Purchasers; provided, that in the case of clause (b), no such amendment, modification or waiver shall be effective
without the written consent of the holder hereof to the extent such amendment, modification or waiver adversely affects the rights of
the holder of this Note in a manner different from those of the holders of the other Notes (other than differences related to the different
principal amounts or issue dates of the Notes). Any amendment effected in accordance with the immediately preceding sentence shall be
binding upon the Company, the Holder and each transferee of this Note.

 

6.5.       In
the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole
or in part or in any respect, or in the event that any one or more of the provisions of this Note operate or would prospectively operate
to invalidate this Note, then and in any such event, such provision(s) only shall be deemed null and void and shall not affect any other
provision of this Note and the remaining provisions of this Note shall remain operative and in full force and effect and in no way shall
be affected, prejudiced, or disturbed thereby.

 

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of page intentionally left blank.]

 

    	-2- 

     

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Convertible Promissory Note as an instrument under seal as of the date first above
written.

 

	 	TARONIS
    FUELS, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Signature
Page to Convertible Promissory NoteSunOpta Inc.: Exhibit 10.2 - Filed by newsfilecorp.com

    

    Exhibit 10.2

    SECOND AMENDMENT

    SECOND AMENDMENT, dated as of July 2, 2021 (this "Amendment"), to the Second Amended and Restated Credit Agreement, dated as of December 31, 2020 (as amended by the First Amendment, dated as of April 15, 2021, and as further amended, supplemented or modified from time to time prior to the date hereof, the "Credit Agreement"; and the Credit Agreement as amended by this Amendment, the "Amended Credit Agreement"), among SunOpta Inc. (the "Company"), SunOpta Foods Inc., each of the other Borrowers and Guarantors party thereto, the Lenders party thereto, the Issuing Banks party thereto, Bank of America, N.A., as Administrative Agent, as an Issuing Bank and as the Swingline Lender, Bank of America, N.A, as Collateral Agent, and JPMorgan Chase Bank, N.A., as Term Loan Administrative Agent. 

    Recitals

    WHEREAS, the Company has requested that the Credit Agreement be amended as set forth herein; and

    WHEREAS, Lenders constituting the Supermajority Tranche A Revolving Lenders and the Supermajority Tranche B Revolving Lenders, the Administrative Agent and the Term Loan Administrative Agent hereby agree to this Amendment, subject to the terms and conditions set forth in Article IV and relying upon the representations and warranties herein set forth in Article III.

    NOW, THEREFORE, in consideration of the premises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

    ARTICLE I
DEFINED TERMS

    Capitalized terms used in this Amendment but not defined herein shall have the meanings assigned to them in the Amended Credit Agreement.

    ARTICLE II
AMENDMENT

    Effective as of the Second Amendment Effective Date (as defined below), clause (n) of the definition of "Eligible Account" in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

    "(n) that, when aggregated with all other Accounts of the same Account Debtor, is not in excess of (x) solely in the case of Accounts owing by an Account Debtor that has a corporate family rating that is an Investment Grade Rating or an equivalent rating, 30.0% or (y) in the case of all other Accounts, 15.0%, in each case, of all Eligible Accounts (but, in each case, the portion of the Accounts not in excess of such applicable concentration limit shall not be deemed ineligible due to this clause (n));"

    

    ARTICLE III
REPRESENTATIONS AND WARRANTIES; NO DEFAULTS

    Each Credit Party makes the following representations and warranties:

    (a) no Default or Event of Default exists pursuant to the Credit Agreement as of the Second Amendment Effective Date, and immediately after giving effect to this Amendment; and

    (b) each of the representations and warranties made by any Credit Party set forth in Section 7 of the Credit Agreement, and in any Credit Document, are true and correct in all material respects (without duplication of any materiality standard set forth in any such representation or warranty) on and as of the Second Amendment Effective Date (after giving effect to this Amendment) with the same effect as though made on and as of such date, except to the extent such representations and warranties relate to an earlier date, in which event such representations and warranties were true in all material respects as of such earlier date (without duplication of any materiality standard set forth in any such representation or warranty).

    ARTICLE IV
CONDITIONS

    This Amendment shall become effective on the date (such date, the "Second Amendment Effective Date") that the following conditions have been satisfied:

    (a) Counterparts of Amendment. The Administrative Agent shall have received counterparts of this Amendment executed by (i) the Administrative Agent and the Term Loan Administrative Agent, (ii) the Credit Parties and (iii) Lenders constituting the Supermajority Tranche A Revolving Lenders and the Supermajority Tranche B Revolving Lenders (each such consenting Lender, a "Consenting Lender" and, collectively, the "Consenting Lenders").

    (b) Expenses.  The Company (or its designee) shall have paid, or caused to be paid, all reasonable documented out of pocket costs and expenses of the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment (including the fees and expenses of Cahill Gordon & Reindel LLP as counsel to the Administrative Agent) for which invoices have been presented to the Company at least two business days prior to the Second Amendment Effective Date.

    (c) Fees.  The Company (or its designee) shall have paid, or caused to be paid to the Administrative Agent, for the account of Consenting Lenders, the fees separately agreed in writing.

    (d) Absence of Default or Event of Default. No Default or Event of Default shall exist pursuant to the Credit Agreement as of the Second Amendment Effective Date and immediately after giving effect to this Amendment.

    (e) Representations and Warranties. Each of the representations and warranties made by any Credit Party set forth in Section 7 of the Credit Agreement, and in any Credit Document, shall be true and correct in all material respects (without duplication of any materiality standard set forth in any such representation or warranty) on and as of the Second Amendment Effective Date (after giving effect to this Amendment) with the same effect as though made on and as of such date, except to the extent such representations and warranties relate to an earlier date, in which event such representations and warranties shall be true in all material respects as of such earlier date (without duplication of any materiality standard set forth in any such representation or warranty).

    
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    ARTICLE V
MISCELLANEOUS

    (a) Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts (including by facsimile or other electronic transmission (i.e., a "pdf" or "tif"), each of which when so executed and delivered shall be deemed to be an original, but all of which shall together constitute one and the same instrument.  This Amendment and any document, amendment, approval, consent, information, notice, certificate, request, statement, disclosure or authorization related to this Amendment (each a "Communication"), including Communications required to be in writing, may be in the form of an Electronic Record and may be executed using Electronic Signatures.  The parties hereto agree that any Electronic Signature on or associated with any Communication shall be valid and binding on the parties hereto to the same extent as a manual, original signature, and that any Communication entered into by Electronic Signature, will constitute the legal, valid and binding obligation of the parties hereto enforceable against such party in accordance with the terms thereof to the same extent as if a manually executed original signature was delivered.  Any Communication may be executed in as many counterparts as necessary or convenient, including both paper and electronic counterparts, but all such counterparts are one and the same Communication.  For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Borrowers, the other Credit Parties, the Administrative Agent and each of the Lenders of a manually signed paper Communication which has been converted into electronic form (such as scanned into PDF format), or an electronically signed Communication converted into another format, for transmission, delivery and/or retention. Each party hereto may, at its option, create one or more copies of any Communication in the form of an imaged Electronic Record ("Electronic Copy"), which shall be deemed created in the ordinary course of the such Person's business, and destroy the original paper document.  All Communications in the form of an Electronic Record, including an Electronic Copy, shall be considered an original for all purposes, and shall have the same legal effect, validity and enforceability as a paper record.  Notwithstanding anything contained herein to the contrary, the Administrative Agent is under no obligation to accept an Electronic Signature in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it; provided, further, without limiting the foregoing, (a) to the extent the Administrative Agent has agreed to accept such Electronic Signature, the Borrowers, the other Credit Parties, the Administrative Agent and each of the Lenders shall be entitled to rely on any such Electronic Signature purportedly given by or on behalf of any other party without further verification and (b) upon the request of the Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by such manually executed counterpart.  For purposes hereof, "Electronic Record" and "Electronic Signature" shall have the meanings assigned to them, respectively, by 15 USC §7006, as it may be amended from time to time.

    (b) Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial. 

    (i) THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

    (ii) EACH PARTY TO THIS AMENDMENT CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE COURT SITTING IN NEW YORK COUNTY OR THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, IN ANY DISPUTE, ACTION, LITIGATION OR OTHER PROCEEDING RELATING IN ANY WAY TO THIS AMENDMENT, AND AGREES THAT ANY DISPUTE, ACTION, LITIGATION OR OTHER PROCEEDING SHALL BE BROUGHT BY IT SOLELY IN ANY SUCH COURT.  EACH PARTY TO THIS AMENDMENT IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL CLAIMS, OBJECTIONS AND DEFENSES THAT IT MAY HAVE REGARDING ANY SUCH COURT'S PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE OR INCONVENIENT FORUM.  EACH PARTY TO THIS AMENDMENT IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 12.03 OF THE CREDIT AGREEMENT.  A FINAL JUDGMENT IN ANY PROCEEDING OF ANY SUCH COURT SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR ANY OTHER MANNER PROVIDED BY APPLICABLE REQUIREMENT OF LAW. 

    
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    (iii) EACH OF THE PARTIES TO THIS AMENDMENT  HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

    (c) Headings.  The headings of the several Articles and subsections of this Amendment are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Amendment.

    (d) Effect of this Amendment. 

    (i) Except as expressly set forth herein, (i) this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, the Administrative Agent or the Collateral Agent, in each case under the Credit Agreement or any other Credit Document, (ii) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Credit Document and (iii) each and every term, condition, obligation, covenant and agreement contained in the Credit Agreement or any other Credit Document is hereby ratified and re-affirmed in all respects and shall continue in full force and effect.

    (ii) Each of the Credit Parties hereby consents to this Amendment and confirms and reaffirms (i) that all obligations of such Credit Party under the Credit Documents to which such Credit Party is a party shall continue to apply to the Credit Agreement as amended hereby, (ii) its Guarantees of the Obligations, (iii) its pledges and grants of security interests and Liens on the Collateral to secure the Obligations pursuant to the Security Documents and (iv) such Guarantees, pledges and grants of security interests, as applicable, shall continue to be in full force and effect and shall continue to inure to the benefit of the Lenders and the other Secured Creditors.

    (iii) This Amendment shall constitute a Credit Document for purposes of the Amended Credit Agreement. On and after the Second Amendment Effective Date, each reference in any Credit Document to "the Credit Agreement" shall mean and be a reference to the Amended Credit Agreement and each reference in the Credit Agreement to "this Agreement," "hereunder," "hereof" or words of like import shall mean and be a reference to the Amended Credit Agreement. The parties hereto acknowledge and agree that the amendment of the Credit Agreement pursuant to this Amendment and all other Credit Documents amended and/or executed and delivered in connection herewith shall not constitute a novation of the Credit Agreement or of any other Credit Documents as in effect prior to the Second Amendment Effective Date.

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    IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

    	 	SUNOPTA INC.
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Chief Financial Officer
	 	 	 
	 	 	 
	 	SUNOPTA FOODS INC.
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President
	 	 	 
	 	 	 
	 	SUNOPTA GRAINS AND FOODS INC.
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President
	 	 	 
	 	 	 
	 	CITRUSOURCE, LLC
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President
	 	 	 
	 	 	 
	 	SUNOPTA COMPANIES INC.
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President
	 	 	 
	 	 	 
	 	SUNOPTA GLOBAL ORGANIC INGREDIENTS INC.
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President

     

    
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    	 	SUNOPTA INVESTMENTS LTD.
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President
	 	 	 
	 	 	 
	 	SUNRISE HOLDINGS (DELAWARE), INC.
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President
	 	 	 
	 	 	 
	 	SUNRISE GROWERS, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President
	 	 	 
	 	 	 
	 	FARM CAPITAL INCORPORATED
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President
	 	 	 
	 	 	 
	 	PACIFIC RIDGE FARMS, LLC
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President
	 	 	 
	 	 	 
	 	SUNOPTA FINANCING 2017 LLC
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Chief Financial Officer

     

    
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    	 	SUNOPTA HOLDINGS LLC
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President - CFO
	 	 	 
	 	 	 
	 	SUNOPTA FINANCING CANADA ULC
	 	 	 
	 	 	 
	 	By:	/s/ Scott Huckins
	 	 	Name: Scott Huckins
	 	 	Title: Vice President - CFO

     

    
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    	 	BANK OF AMERICA N.A., as Administrative Agent, a Tranche A Revolving Lender and a Tranche B Revolving Lender
	 	 	 
	 	 	 
	 	By:	/s/ Monirah J. Masud
	 	 	Name:  Monirah J. Masud
	 	 	Title: Senior Vice President

     

    
        [Signature Page to Second Amendment]

    

    

    	 	JPMORGAN CHASE BANK, N.A., as Term Loan Administrative Agent
	 	 	 
	 	 	 
	 	By:	/s/ Farhan Lodhi
	 	 	Name: Farhan Lodhi
	 	 	Title: Authorized Officer

     

    
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    	 	JPMORGAN CHASE BANK, N.A., as a Tranche A Revolving Lender and a Tranche B Revolving Lender
	 	 	 
	 	 	 
	 	By:	/s/ Farhan Lodhi
	 	 	Name: Farhan Lodhi
	 	 	Title: Authorized Officer

     

    
        [Signature Page to Second Amendment]

    

    

    	 	BANK OF MONTREAL, as a Tranche A Revolving Lender and a Tranche B Revolving Lender
	 	 	 
	 	 	 
	 	By:	/s/ Anthony Lam
	 	 	Name: Anthony Lam
	 	 	Title: Director, Asset Based Lending
	 	 	 
	 	 	 
	 	By:	/s/ Sahil Khullar
	 	 	Name: Sahil Khullar
	 	 	Title: Director, Asset Based Lending

                        

    
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    	 	BMO OF MONTREAL CHICAGO, as a Tranche A Revolving Lender and a Tranche B Revolving Lender
	 	 	 
	 	 	 
	 	By:	/s/ Laura Ullman
	 	 	Name: Laura Ullman
	 	 	Title: SVP

     

    
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    	 	Rabobank Canada, as a Tranche A Revolving Lender and a Tranche B Revolving Lender
	 	 	 
	 	 	 
	 	By:	/s/ Kimberley Fobert
	 	 	Name: Kimberley Fobert
	 	 	Title: Managing Director
	 	 	 
	 	 	 
	 	By:	/s/ Sandra Seaton Barnes
	 	 	Name: Sandra Seaton Barnes
	 	 	Title: Executive Director

               

    
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    	 	WELLS FARGO BANK, N.A., as a Tranche A Revolving Lender and a Tranche B Revolving Lender
	 	 	 
	 	 	 
	 	By:	/s/ Raymond Eghobamien
	 	 	Name: Raymond Eghobamien
	 	 	Title: Vice President

     

     

    
        [Signature Page to Second Amendment]

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