Document:

CERTIFICATE
OF DESIGNATIONS, PREFERENCES

AND
RIGHTS OF SERIES G CONVERTIBLE PREFERRED STOCK

OF

TARONIS
TECHNOLOGIES, INC.

 

Taronis
Technologies, Inc. (the “Company”), a corporation organized and existing under the General Corporation Law
of the State of Delaware (the “DGCL”), does hereby certify that, pursuant to authority conferred upon the Board
of Directors of the Company (the “Board”) by the Certificate of Incorporation, as amended, of the Company,
and pursuant to the provisions of the DGCL, the Board adopted resolutions (i) designating a series of the Company’s previously
authorized preferred stock, par value $0.001 per share, and (ii) providing for the designations, preferences and relative, participating,
optional or other rights, and the qualifications, limitations or restrictions thereof, of three thousand five hundred (3,500)
shares of Series G Convertible Preferred Stock of the Company, as follows:

 

RESOLVED,
that the Company is authorized to issue three thousand five hundred (3,500) shares of Series G Convertible Preferred
Stock, par value $0.001 per share (the “Series G Preferred Shares”), which shall have the following powers,
designations, preferences and other special rights:

 

(1)
RANKING. The Series G Preferred Shares shall rank prior and superior to all of the Common Stock and any other capital
stock of the Company with respect to the preferences as to dividends (other than pursuant to TRNF Spin-Off), distributions and
payments upon a Liquidation Event (such stock being referred to hereinafter collectively as "Junior Stock").
The rights of the shares of Common Stock and other capital stock of the Company shall be of junior rank to and subject to the
preferences and relative rights of the Series G Preferred Shares.

 

(2)
PAYMENTS OF STATED VALUE; PREPAYMENT. If any Series G Preferred Shares remain outstanding on the Maturity Date, the
Company shall redeem such Series G Preferred Shares in cash in an amount equal to the Conversion Amount (as defined in Section
5(b)) for each such Series G Preferred Share. The “Maturity Date” shall be November 16, 2020 , as may be extended
at the option of each Holder (i) in the event that, and for so long as, a Triggering Event (as defined in Section 6(a)) shall
have occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 2) or any event shall have occurred
and be continuing on the Maturity Date (as may be extended pursuant to this Section 2) that with the passage of time and the failure
to cure would result in a Triggering Event and (ii) through the date that is ten (10) Business Days after the consummation of
a Change of Control in the event that a Change of Control is publicly announced or a Change of Control Notice (as defined in Section
7(b)) is delivered prior to the Maturity Date. Other than as specifically permitted by this Certificate of Designations, the Company
may not prepay any portion of the outstanding Stated Value, accrued and unpaid dividends, if any, or accrued and unpaid Late Charges
(as defined in Section 25(b)) on Stated Value and dividends, if any.

 

    	 

    	 

    

 

(3)
LIQUIDATION.

 

(a)
Preferential Payment to Holders. In the event of a Liquidation Event, holders of Series G Preferred Shares (each, a “Holder”
and collectively, the “Holders”) shall be entitled to receive in cash out of the assets of the Company, whether
from capital or from earnings available for distribution to its stockholders (the “Liquidation Funds”) upon
such Liquidation Event, but before any amount shall be paid to the holders of any Junior Stock, an amount per Series G Preferred
Share equal to the Conversion Amount; provided that, if the Liquidation Funds are insufficient to pay the full amount due to the
Holders and holders of shares of other classes or series of preferred stock of the Company, if any, that are of equal rank with
the Series G Preferred Shares as to payments of Liquidation Funds (such stock being referred to hereinafter collectively as “Pari
Passu Stock”), if any, then each Holder and each holder of any such Pari Passu Stock shall receive a percentage of the
Liquidation Funds equal to the full amount of Liquidation Funds payable to such Holder as a liquidation preference, in accordance
with their respective Certificate of Designations, Preferences and Rights, as a percentage of the full amount of Liquidation Funds
payable to all holders of Series G Preferred Shares and Pari Passu Stock.

 

(b)
Distribution of Remaining Assets. After the foregoing distributions, the Holders shall be entitled, on a pari passu
basis with the holders of Common Stock and treating for the purpose thereof all of the Series G Preferred Shares as having
been converted into Common Stock pursuant to Section 5, to participate in the distribution of any remaining assets of the Company
to the holders of the outstanding Common Stock (without regard to any limitations on conversion). To the extent necessary, the
Company shall cause such actions to be taken by any of its Subsidiaries so as to enable, to the maximum extent permitted by law,
the proceeds of a Liquidation Event to be distributed to the Holders in accordance with this Section. All the preferential amounts
to be paid to the Holders under this Section shall be paid or set apart for payment before the payment or setting apart for payment
of any amount for, or the distribution of any Liquidation Funds of the Company to the holders of Junior Stock in connection with
a Liquidation Event as to which this Section applies.

 

(c)
Maximum Percentage. Notwithstanding the foregoing, to the extent that a Holder’s right to participate in any liquidation
pursuant to this Section 3 would result in such Holder and such Holder’s other Attribution Parties exceeding the Maximum
Percentage, if applicable, then such Holder shall not be entitled to participate in such liquidation to such extent (and shall
not be entitled to beneficial ownership of such shares of Common Stock as a result of such liquidation (and beneficial ownership)
to such extent) and the portion of such liquidation shall be held in abeyance for such Holder until such time or times as its
right thereto would not result in such Holder and its other Attribution Parties exceeding the Maximum Percentage, if applicable,
at which time or times such Holder shall be granted such rights (and any rights under this Section 3 to be held similarly in abeyance)
to the same extent as if there had been no such limitation.

 

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(4)
DIVIDENDS.

 

(a)
Except for the TRNF Spin-Off (as defined below), from and after the first date of issuance of any Series G Preferred Shares (the
“Issuance Date”), the Holders shall be entitled to receive dividends per Series G Preferred Share when, as
and if declared by the Board. In addition, from and after the occurrence and during the continuance of any Triggering Event, dividends
shall accrue hereunder at eighteen percent (18.0%) per annum (the “Default Rate”) and shall be computed on
the basis of a 360-day year and twelve 30-day months and shall be payable, if applicable, in arrears on the last Business Day
of any Calendar Quarter during which dividends accrue hereunder (a “Dividend Date”) to the record holder of
the Series G Preferred Shares in cash by wire transfer of immediately available funds pursuant to wire instructions provided by
the Holders in writing to the Company. Accrued and unpaid dividends, if any, shall also be payable prior to a Dividend Date by
way of inclusion of the dividends in the Conversion Amount (as defined in Section 5(b)(i)) on each (i) Conversion Date (as defined
in Section 5(c)(i)) in accordance with Section 5(c)(i) and/or (ii) upon any redemption hereunder occurring prior to the Maturity
Date. In the event that an Triggering Event is subsequently cured (and no other Triggering Event then exists (including, without
limitation, for the Company’s failure to pay such dividends at the Default Rate on the Maturity Date)), dividends shall
cease to accrue hereunder as of the calendar day immediately following the date of such cure; provided that the dividends
as calculated and unpaid during the continuance of such Triggering Event shall continue to apply to the extent relating to the
days after the occurrence of such Triggering Event through and including the date of such cure of such Triggering Event; provided,
further, that for the purpose of this Section 4, such Triggering Event shall not be deemed cured unless and until any accrued
and unpaid dividends shall be paid to the Holders.

 

(b)
In addition to the dividends, if any, referred to in Section 4(a), and excepting any dividends pursuant to the TRNF Spin-Off,
from and after the Issuance Date, the Holders shall be entitled to receive such dividends paid and distributions made to the holders
of Common Stock to the same extent as if such Holders had converted the Series G Preferred Shares into Common Stock (without regard
to any limitations on conversion) and had held such shares of Common Stock on the record date for such dividends and distributions.
Payments under the preceding sentence shall be made concurrently with the dividends or distribution to the holders of Common Stock.
Following the occurrence of a Liquidation Event and the payment in full to a Holder of its applicable liquidation preference as
set forth in Section 3 above, such Holder shall cease to have any rights hereunder to participate in any future dividends or distributions
made to the holders of Common Stock. Except pursuant to the TRNF Spin-Off, the Company shall not declare or pay any dividends
on any Junior Stock or Pari Passu Stock unless the Holders of Series G Preferred Shares then outstanding shall simultaneously
receive dividends on a pro rata basis as if the Series G Preferred Shares had been converted into shares of Common Stock pursuant
to Section 5 immediately prior to the record date for determining the stockholders eligible to receive such dividends (without
regard to any limitations on conversion). Notwithstanding the foregoing, to the extent that a Holder’s right to participate
in any such dividends or distribution pursuant to this Section 4 would result in such Holder and its other Attribution Parties
exceeding the Maximum Percentage, then such Holder shall not be entitled to participate in such dividends or distribution to such
extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such dividends or distribution
(and beneficial ownership) to such extent) and the portion of such dividends or distribution shall be held in abeyance for such
Holder until such time or times as its right thereto would not result in such Holder and its other Attribution Parties exceeding
the Maximum Percentage, at which time or times such Holder shall be granted such rights (and any rights under this Section 4 on
such initial rights or on any subsequent such rights to be held similarly in abeyance) to the same extent as if there had been
no such limitation.

 

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(5)
CONVERSION OF SERIES G PREFERRED SHARES. At any time or times after the Issuance Date, the Series G Preferred Shares
shall be convertible into shares of Common Stock, on the terms and conditions set forth in this Section 5.

 

(a)
Conversion Right. Subject to the provisions of Section 5(d), at any time or times on or after the thirtieth (30th)
calendar day immediately following the Issuance Date (the “Convertibility Date”), any Holder shall be entitled
to convert any portion of the outstanding and unpaid Conversion Amount into fully paid and nonassessable shares of Common Stock
in accordance with Section 5(c), at the Conversion Rate (as defined below). The Company shall not issue any fraction of a share
of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the
Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all
transfer, stamp and similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion
of any Conversion Amount.

 

(b)
Conversion Rate. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section
5(a) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price (the “Conversion Rate”).

 

(i)
“Conversion Amount” means the sum of (A) the portion of the Stated Value to be converted, redeemed or otherwise
with respect to which this determination is being made, (B) accrued and unpaid dividends, if any, with respect to such Stated
Value and (C) accrued and unpaid Late Charges, if any, with respect to such Stated Value and dividends.

 

(ii)
“Conversion Price” means, as of any Conversion Date or other date of determination, $2.25, subject to adjustment
as provided herein.

 

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(c)
Mechanics of Conversion.

 

(i)
Optional Conversion. To convert Series G Preferred Shares into shares of Common Stock on any date on or following the Convertibility
Date (each a “Conversion Date”), a Holder shall (A) deliver on or prior to 11:59 p.m., New York time, on such
date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (a “Conversion Notice”)
to the Company and (B) if required by Section 5(c)(iv), but without delaying the Company’s requirement to deliver shares
of Common Stock on the applicable Share Delivery Date (as defined below), surrender the original certificates representing the
Series G Preferred Shares, if any (the “Series G Preferred Stock Certificates”) being converted to a common
carrier for delivery to the Company as soon as practicable on or following such date (or an indemnification undertaking with respect
to such Series G Preferred Stock Certificates in the case of its loss, theft, destruction or mutilation in compliance with the
procedures set forth in Section 27). In lieu of indicating the portion of the Conversion Amount that a Holder elects to convert,
such Holder may indicate in a Conversion Notice the number of shares of Common Stock it seeks to receive upon conversion of any
portion of such Holder’s Series G Preferred Shares and the reduction of the Conversion Amount pursuant to such conversion
shall be determined at the end of such Conversion Date by multiplying such number of shares of Common Stock by the applicable
Conversion Price. No ink-original Conversion Notice shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Conversion Notice be required.

 

(ii)
Company’s Response. On or before the first (1st) Business Day following the date of delivery of a Conversion Notice,
the Company shall transmit via electronic mail a confirmation of receipt of such Conversion Notice to the applicable Holder and
the Company’s transfer agent (the “Transfer Agent”). On or before the earlier of (i) the second (2nd)
Trading Day and (ii) the number of Trading Days comprising the Standard Settlement Period, in each case, following the date on
which a Holder has delivered a Conversion Notice to the Company (a “Share Delivery Date”), the Company shall
(x) provided that the Transfer Agent is participating in the Depository Trust Company (“DTC”) Fast Automated
Securities Transfer Program, credit such aggregate number of shares of Common Stock to which such Holder shall be entitled to
such Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal At Custodian system or (y)
if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address
as specified in the Conversion Notice, a certificate, registered in the name of such Holder or its designee, for the number of
shares of Common Stock to which such Holder shall be entitled. If the number of Series G Preferred Shares represented by the Series
G Preferred Stock Certificate(s) submitted for conversion, as required by Section 5(c)(iv), is greater than the number of Series
G Preferred Shares being converted, then the Company shall as soon as practicable and in no event later than three (3) Business
Days after receipt of the Series G Preferred Stock Certificate(s) (the “Preferred Stock Delivery Date”) and
at its own expense, issue and deliver to such Holder a new Series G Preferred Stock Certificate representing the number of Series
G Preferred Shares not converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion
of Series G Preferred Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock
on the applicable Conversion Date, irrespective of the date such Conversion Shares are credited to such Holder’s account
with DTC or the date of delivery of the certificates evidencing such Conversion Shares, as the case may be.

 

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(iii)
Company’s Failure to Timely Convert. If the Company shall fail on or prior to the applicable Share Delivery Date
to issue and deliver a certificate to a Holder, if the Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program or if converted, at a time when the Conversion Shares are not subject to
an effective resale registration statement in favor of the Holder and Rule 144 would not be available for immediate resale of
the Conversion Shares by such Holder, or credit such Holder’s balance account with DTC, if the Transfer Agent is
participating in the DTC Fast Automated Securities Transfer Program and (a) the Conversion
Shares are subject to an effective resale registration statement in favor of such Holder or (b) if converted at a time when Rule
144 would be available for immediate resale of the Conversion Shares by such Holder, for the number of shares of Common
Stock to which such Holder is entitled upon such Holder’s conversion of any Conversion Amount (a “Conversion Failure”),
then (A) the Company shall pay damages to such Holder for each Trading Day of such Conversion Failure in an amount equal to 1.5%
of the product of (1) the sum of the number of shares of Common Stock not issued to such Holder on or prior to the Share Delivery
Date and to which such Holder is entitled, and (2) any trading price of the Common Stock selected by such Holder in writing as
in effect at any time during the period beginning on the applicable Conversion Date and ending on the applicable Share Delivery
Date and (B) such Holder, upon written notice to the Company, may void its Conversion Notice with respect to, and retain or have
returned, as the case may be, any portion of such Holder’s Series G Preferred Shares that has not been converted pursuant
to such Conversion Notice; provided that the voiding of a Conversion Notice shall not affect the Company’s obligations
to make any payments which have accrued prior to the date of such notice pursuant to this Section 5(c)(iii) or otherwise. In addition
to the foregoing, if the Company shall fail on or prior to the applicable Share Delivery Date to issue and deliver a certificate
to a Holder, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, or credit such
Holder’s balance account with DTC, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
Program, for the number of shares of Common Stock to which such Holder is entitled upon such Holder’s conversion of any
Conversion Amount or on any date of the Company’s obligation to deliver shares of Common Stock as contemplated pursuant
to clause (y) below, and if on or after such Trading Day such Holder purchases (in an open market transaction or otherwise) Common
Stock to deliver in satisfaction of a sale by such Holder of Common Stock issuable upon such conversion that such Holder anticipated
receiving from the Company (a “Buy-In”), then the Company shall, within three (3) Trading Days after such Holder’s
request and in such Holder’s discretion, either (x) pay cash to such Holder in an amount equal to such Holder’s total
purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased
(the “Buy-In Price”), at which point the Company’s obligation to issue and deliver such certificate or
credit such Holder’s balance account with DTC for the shares of Common Stock to which such Holder is entitled upon such
Holder’s conversion of the applicable Conversion Amount shall terminate, or (y) promptly honor its obligation to deliver
to such Holder a certificate or certificates representing such shares of Common Stock or credit such Holder’s balance account
with DTC for such shares of Common Stock and pay cash to such Holder in an amount equal to the excess (if any) of the Buy-In Price
over the product of (A) such number of shares of Common Stock, times (B) the price at which the sell order giving rise to such
purchase obligation was executed.

 

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(iv)
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of Series G Preferred Shares in
accordance with the terms hereof, a Holder shall not be required to physically surrender the certificate representing the Series
G Preferred Shares to the Company unless (A) the full or remaining number of Series G Preferred Shares represented by the certificate
are being converted or (B) a Holder has provided the Company with prior written notice (which notice may be included in a Conversion
Notice) requesting reissuance of Series G Preferred Shares upon physical surrender of any Series G Preferred Shares. Each Holder
and the Company shall maintain records showing the number of Series G Preferred Shares so converted and the dates of such conversions
or shall use such other method, reasonably satisfactory to the Holders and the Company, so as not to require physical surrender
of the certificate representing the Series G Preferred Shares upon each such conversion. If the Company does not update its records
to record such Stated Value, dividends and Late Charges converted and/or paid (as the case may be) and the dates of such conversions
and/or payments (as the case may be) within two (2) Business Days of such occurrence, then the Company’s records shall be
automatically deemed updated to reflect such occurrence. In the event of any dispute or discrepancy, such records of the Company
establishing the number of Series G Preferred Shares to which the record holder is entitled shall be controlling and determinative
in the absence of manifest error. Notwithstanding the foregoing, if Series G Preferred Shares represented by a certificate are
converted as aforesaid, a Holder may not transfer the certificate representing the Series G Preferred Shares unless such Holder
first physically surrenders the certificate representing the Series G Preferred Shares to the Company, whereupon the Company will
forthwith issue and deliver upon the order of such Holder a new certificate of like tenor, registered as such Holder may request,
representing in the aggregate the remaining number of Series G Preferred Shares represented by such certificate. A
Holder and any assignee, by acceptance of a certificate, acknowledge and agree that, by reason of the provisions of this
paragraph, following conversion of any Series G Preferred Shares, the number of Series G Preferred Shares represented by such
certificate may be less than the number of Series G Preferred Shares stated on the face thereof. Each certificate for Series G
Preferred Shares shall bear the following legend:

 

ANY
TRANSFEREE OF THIS CERTIFICATE SHOULD CAREFULLY REVIEW THE TERMS OF THE COMPANY’S CERTIFICATE OF DESIGNATIONS RELATING TO
THE SERIES G PREFERRED SHARES REPRESENTED BY THIS CERTIFICATE, INCLUDING SECTION 5(c)(iv) THEREOF. THE NUMBER OF SERIES G PREFERRED
SHARES REPRESENTED BY THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF SERIES G PREFERRED SHARES STATED ON THE FACE HEREOF PURSUANT
TO SECTION 5(c)(iv) OF THE CERTIFICATE OF DESIGNATIONS RELATING TO THE SERIES G PREFERRED SHARES REPRESENTED BY THIS CERTIFICATE.

 

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(v)
Pro Rata Conversion; Disputes. In the event the Company receives a Conversion Notice from more than one Holder for the
same Conversion Date and the Company can convert some, but not all, of such Series G Preferred Shares submitted for conversion,
the Company, subject to Section 5(d), shall convert from each Holder electing to have Series G Preferred Shares converted on such
date, a pro rata amount of such Holder’s Series G Preferred Shares submitted for conversion based on the Stated Value of
Series G Preferred Shares submitted for conversion on such date by such Holder relative to the Stated Value of all Series G Preferred
Shares submitted for conversion on such date. In the event of a dispute as to the number of shares of Common Stock issuable to
a Holder in connection with a conversion of Series G Preferred Shares, the Company shall issue to such Holder the number of shares
of Common Stock not in dispute and resolve such dispute in accordance with Section 24.

 

(d)
Conversion Limitations.

 

(i)
Beneficial Ownership. Notwithstanding anything to the contrary contained herein, the Company shall not issue any shares
of Common Stock pursuant to the terms of this Certificate of Designations, and no Holder shall not have the right to any shares
of Common Stock otherwise issuable pursuant to the terms of this Certificate of Designations and such issuance shall be null and
void and treated as if never made, to the extent that after giving effect to such issuance, such Holder together with the other
Attribution Parties collectively would beneficially own in excess of 4.99% or 9.99%, as the Buyers shall have indicated on their
respective signature pages attached to the Securities Purchase Agreement or as any subsequent transferee of Series G Preferred
Shares indicates in a written notice to the Company (as applicable, the “Maximum Percentage”) of the shares
of Common Stock outstanding immediately after giving effect to such issuance. For purposes of the foregoing sentence, the aggregate
number of shares of Common Stock beneficially owned by a Holder and its other Attribution Parties shall include the number of
shares of Common Stock held by such Holder and all other Attribution Parties plus the number of shares of Common Stock issuable
upon conversion of the Series G Preferred Shares with respect to which the determination of such sentence is being made, but shall
exclude shares of Common Stock which would be issuable upon (A) conversion of the remaining, nonconverted Series G Preferred Shares
beneficially owned by such Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or
nonconverted portion of any other securities of the Company (including, without limitation, any convertible notes or convertible
preferred stock or warrants, including the Warrants) beneficially owned by such Holder or any other Attribution Party subject
to a limitation on conversion or exercise analogous to the limitation contained in this Section 5(d)(i). For purposes of this
Section 5(d)(i), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act. For purposes of
determining the number of outstanding shares of Common Stock a Holder may acquire upon the conversion of Series G Preferred Shares
without exceeding the Maximum Percentage, such Holder may rely on the number of outstanding shares of Common Stock as reflected
in (x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or
other public filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other written
notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding (the “Reported
Outstanding Share Number”). If the Company receives a Conversion Notice from a Holder at a time when the actual number
of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall notify such Holder
in writing of the number of shares of Common Stock then outstanding and, to the extent that such Conversion Notice would otherwise
cause such Holder’s beneficial ownership, as determined pursuant to this Section 5(d)(i), to exceed the Maximum Percentage,
such Holder must notify the Company of a reduced number of shares of Common Stock to be purchased pursuant to such Conversion
Notice. For any reason at any time, upon the written or oral request of any Holder, the Company shall within one (1) Trading Day
confirm orally and in writing or by electronic mail to such Holder the number of shares of Common Stock then outstanding. In any
case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company, including the Series G Preferred Shares, by such Holder and any other Attribution Party since the date
as of which the Reported Outstanding Share Number was reported. In the event that the issuance of shares of Common Stock to a
Holder upon conversion of such Holder’s Series G Preferred Shares results in such Holder and the other Attribution Parties
being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number of outstanding shares of Common
Stock (as determined under Section 13(d) of the Exchange Act), the number of shares so issued by which such Holder’s and
the other Attribution Parties’ aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”)
shall be deemed null and void and shall be cancelled ab initio, and such Holder shall not have the power to vote or to transfer
the Excess Shares. Upon delivery of a written notice to the Company, any Holder may from time to time increase or decrease the
Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that (i) any such increase
in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered to the Company
and (ii) any such increase or decrease will apply only to such Holder and its other Attribution Parties and not to any other holder
of Series G Preferred Shares that is not an Attribution Party of such Holder. For purposes of clarity, the shares of Common Stock
issuable with respect to the Series G Preferred Shares in excess of the Maximum Percentage shall not be deemed to be beneficially
owned by a Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the Exchange Act. The provisions
of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section
5(d)(i) to the extent necessary to correct this paragraph (or any portion of this paragraph) which may be defective or inconsistent
with the intended beneficial ownership limitation contained in this Section 5(d)(i) or to make changes or supplements necessary
or desirable to properly give effect to such limitation. The limitation contained in this paragraph may not be waived and shall
apply to a successor holder of Series G Preferred Shares.

 

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(ii)
Principal Market Regulation. The Company shall not be obligated to issue any shares of Common Stock pursuant to the terms
of this Certificate of Designations, and the Holders shall not have the right to receive pursuant to the terms of this Certificate
of Designations any shares of Common Stock, to the extent the issuance of such shares of Common Stock would exceed the aggregate
number of shares of Common Stock which the Company may issue pursuant to the terms of the Securities Purchase Agreement and this
Certificate of Designations without breaching the Company’s obligations under the rules or regulations of the Principal
Market (the “Exchange Cap”), except that such limitation shall not apply in the event that the Company obtains
the approval of its stockholders as required by the applicable rules of the Principal Market for issuances of Common Stock in
excess of such amount. Until such approval is obtained, no Buyer shall be issued in the aggregate, pursuant to the terms of the
Securities Purchase Agreement and this Certificate of Designations, shares of Common Stock in an amount greater than the product
of the Exchange Cap multiplied by a fraction, the numerator of which is the number of Series G Preferred Shares issued to such
Buyer pursuant to the Securities Purchase Agreement on the Issuance Date and the denominator of which is the aggregate number
of all Series G Preferred Shares issued to the Buyers pursuant to the Securities Purchase Agreement on the Issuance Date (with
respect to each Buyer, the “Exchange Cap Allocation”). In the event that any Buyer shall sell or otherwise
transfer any of such Buyer’s Series G Preferred Shares, the transferee shall be allocated a pro rata portion of such Buyer’s
Exchange Cap Allocation with respect to such portion of such Series G Preferred Shares
transferred, and the restrictions of the prior sentence shall apply to such transferee
with respect to the portion of the Exchange Cap Allocation allocated to such transferee. In the event that any Holder shall convert
all of such Holder’s Series G Preferred Shares and Series G Preferred Shares into a number of shares of Common Stock which,
in the aggregate, is less than such Holder’s Exchange Cap Allocation, then the difference between such Holder’s Exchange
Cap Allocation and the number of shares of Common Stock actually issued to such Holder shall be allocated to the respective Exchange
Cap Allocations of the remaining Holders on a pro rata basis in proportion to the Stated
Value of Preferred Shares then held by each such Holder. In the event that the Company is prohibited from issuing any shares
of Common Stock for which a Conversion Notice has been delivered as a result of the operation of this Section 5(d)(ii), the Company
shall within two (2) Trading Days of the applicable attempted conversion pay cash
in exchange for cancellation of the Conversion Amount that is subject to such Conversion Notice, at a price per share of Common
Stock that would have been issuable upon such conversion if this Section 5(d)(ii) were not in effect, equal to the greater of
(x) the Closing Sale Price of the Common Stock and (y) the arithmetic average of the Closing Sale Prices of the Common Stock during
the five (5) Trading Days, in each case, immediately preceding the applicable attempted exercise (or if any such date is not a
Trading Day, the last Trading Day prior to such date).

 

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(e)
Adjustments to Conversion Price. The Conversion Price will be subject to adjustment from time to time as provided in this
Section 5(e).

 

(i)
Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. If the Company at any time on or after
the Subscription Date subdivides (by any stock split, stock dividend (other than pursuant to the TRNF Spin-Off), recapitalization
or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price
in effect immediately prior to such subdivision will be proportionately reduced. If the Company at any time on or after the Subscription
Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock
into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately
increased. Any adjustment under this Section 5(e)(i) shall become effective at the close of business on the date the subdivision
or combination becomes effective.

 

(ii)
Voluntary Adjustment by Company. Subject to the prior approval of the Principal Market, or if the Principal Market is not
as of the applicable date of determination the principal trading market of the Common Stock, such other applicable Eligible Market
that then serves as the principal trading market of the Common Stock, the Company may at any time, with the prior written consent
of the Required Holders, reduce the then current Conversion Price to any amount and for any period of time deemed appropriate
by the Board.

 

    	 	-10-	 

    	 

    

 

(6)
RIGHTS UPON TRIGGERING EVENT.

 

(a)
Triggering Event. Each of the following events or failure to comply therewith shall constitute a “Triggering Event”:

 

(i)
the shares of Common Stock issued and issuable with respect to the Series G Preferred Shares shall be issued or issuable without
restrictive legends and eligible for immediate sale without restriction or limitation pursuant to Rule 144 and Section 3(a)(9)
of the Securities Act without the requirement to be in compliance with Rule 144(c)(1) and without the need for registration under
any applicable federal or state securities laws;

 

(ii)
(A) the suspension of the Common Stock from trading on an Eligible Market for a period of two (2) consecutive Trading Days or
for more than an aggregate of ten (10) Trading Days in any 365-day period or (B) the failure of the Common Stock to be listed
on an Eligible Market;

 

(iii)
the Company’s (A) failure to cure a Conversion Failure by delivery of the required number of shares of Common Stock within
five (5) Business Days after the applicable Conversion Date or (B) notice, written or oral, to any Holder, including by way of
public announcement, or through any of its agents, at any time, of its intention not to comply with a request for conversion of
any Series G Preferred Shares into shares of Common Stock that is tendered in accordance with the provisions of this Certificate
of Designations, other than pursuant to Section 5(d);

 

(iv)
at any time following the fifth (5th) consecutive Business Day that the Holder’s Authorized Share Allocation
is less than the Holder’s Pro Rata Amount of the Required Reserve Amount (as defined in Section 12(a));

 

(v)
the Company’s failure to pay to such Holder any amount of Stated Value, dividends, Late Charges, Redemption Price or other
amounts when and as due under this Certificate of Designations or any other Transaction Document, except, in the case of a failure
to pay dividends and/or Late Charges when and as due, in which case only if such failure continues for a period of at least an
aggregate of two (2) Business Days;

 

    	 	-11-	 

    	 

    

 

(vi)
the occurrence of any default (after lapse of any applicable cure periods) under, redemption of or acceleration prior to maturity
of at least an aggregate of $100,000 of Indebtedness of the Company or any of its Subsidiaries;

 

(vii)
the Company or any of its Subsidiaries, pursuant to or within the meaning of Title 11, U.S. Code, or any similar federal, foreign
or state law for the relief of debtors (collectively, “Bankruptcy Law”), (A) commences a voluntary case, (B)
consents to the entry of an order for relief against it in an involuntary case, (C) consents to the appointment of a receiver,
trustee, assignee, liquidator or similar official (a “Custodian”), (D) makes a general assignment for the benefit
of its creditors or (E) admits in writing that it is generally unable to pay its debts as they become due;

 

(viii)
a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against the Company
or any of its Subsidiaries in an involuntary case, (B) appoints a Custodian of the Company or any of its Subsidiaries or (C) orders
the liquidation of the Company or any of its Subsidiaries;

 

(ix)
a final judgment or judgments for the payment of money aggregating in excess of $100,000 are rendered against the Company or any
of its Subsidiaries and which judgments are not, within sixty (60) days after the entry thereof, bonded, discharged or stayed
pending appeal, or are not discharged within sixty (60) days after the expiration of such stay; provided, however,
that any judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating
the $100,000 amount set forth above so long as the Company provides the Holders a written statement from such insurer or indemnity
provider (which written statement shall be reasonably satisfactory to the Holders) to the effect that such judgment is covered
by insurance or an indemnity and the Company or such Subsidiary (as the case may be) will receive the proceeds of such insurance
or indemnity within thirty (30) days of the issuance of such judgment;

 

(x)
other than as specifically set forth in another clause of this Section 6(a), the Company or any of its Subsidiaries breaches any
representation, warranty, covenant or other term or condition of any Transaction Document, except, in the case of a breach of
a covenant or other term or condition of any Transaction Document which is curable, only if such breach remains uncured for a
period of five (5) consecutive Business Days;

 

    	 	-12-	 

    	 

    

 

(xi)
any breach or failure in any respect to comply with either Sections 15 or 16 of this Certificate of Designations;

 

(xii)
any material damage to, or loss, theft or destruction of, any material amount of property of the Company, whether or not insured,
or any strike, lockout, labor dispute, embargo, condemnation, act of God or public enemy, or other casualty which causes, for
more than fifteen (15) consecutive days, the cessation or substantial curtailment of revenue producing activities at any facility
of the Company or any Subsidiary, if any such event or circumstance would reasonably be expected to have a Material Adverse Effect;

 

(xiii)
a false or inaccurate certification (including a false or inaccurate deemed certification) by the Company that the Equity Conditions
are satisfied or that there has been no Equity Conditions Failure or as to whether any Triggering Event has occurred; or

 

(xiv)
any Material Adverse Effect occurs.

 

(b)
Redemption Right. Upon the occurrence of a Triggering Event, the Company shall within one (1) Business Day deliver written
notice thereof via electronic mail (a “Triggering Event Notice”) to the Holders. At any time after the earlier
of a Holder’s receipt of a Triggering Event Notice and a Holder becoming aware of a Triggering Event, such Holder may require
the Company to redeem (an “Triggering Event Redemption”) all or any portion of such Holder’s Series G
Preferred Shares by delivering written notice thereof (the “Triggering Event Redemption Notice”) to the Company,
which Triggering Event Redemption Notice shall indicate the number of such Holder’s Series G Preferred Shares that such
Holder is electing to require the Company to redeem. Each Series G Preferred Share subject to redemption by the Company pursuant
to this Section 6(b) shall be redeemed by the Company in cash by wire transfer of immediately available funds at a price equal
to the greater of (x) 118% of the Conversion Amount being redeemed and (y) the product of (A) the Conversion Amount being redeemed
and (B) the quotient determined by dividing (I) the greatest Closing Sale Price of the shares of Common Stock during the period
beginning on the date immediately preceding such Triggering Event and ending on the date such Holder delivers the Triggering Event
Redemption Notice, by (II) the lowest Conversion Price in effect during such period (the “Triggering Event Redemption
Price”). Redemptions required by this Section 6(b) shall be made in accordance with the provisions of Section 13. To
the extent redemptions required by this Section 6(b) are deemed or determined by a court of competent jurisdiction to be prepayments
of the Series G Preferred Shares by the Company, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding
anything to the contrary in this Section 6, but subject to Section 5(d), until the Triggering Event Redemption Price is paid in
full, the Conversion Amount submitted for redemption under this Section 6(b) may be converted, in whole or in part, by a Holder
into Common Stock pursuant to Section 5. The parties hereto agree that in the event of the Company’s redemption of any Series
G Preferred Shares under this Section 6(b), each Holder’s damages would be uncertain and difficult to estimate because of
the parties’ inability to predict future interest rates and the uncertainty of the availability of a suitable substitute
investment opportunity for such Holder. Accordingly, any Triggering Event redemption premium due under this Section 6(b) is intended
by the parties to be, and shall be deemed, a reasonable estimate of a Holder’s actual loss of its investment opportunity
and not as a penalty.

 

    	 	-13-	 

    	 

    

 

(7)
RIGHTS UPON FUNDAMENTAL TRANSACTION AND CHANGE OF CONTROL.

 

(a)
Assumption. If, at any time while any Series G Preferred Shares are outstanding, a Fundamental Transaction occurs or is
consummated, then, upon any subsequent conversion of any Series G Preferred Shares, the Holders shall have the right to receive,
for each share of Common Stock that would have been issuable upon such conversion immediately prior to the occurrence of such
Fundamental Transaction, at the option of such Holder (without regard to any limitation in Section 5(d) on the conversion of the
Series G Preferred Shares), the number of shares of Common Stock of the successor or acquiring corporation or of the Company,
if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable
as a result of such Fundamental Transaction by such holder of the number of shares of Common Stock for which such Holder’s
Series G Preferred Shares is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in
Section 5(d) on the conversion of the Series G Preferred Shares). For purposes of any such conversion, the determination of the
Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holders shall be given the same choice as to the Alternate Consideration it receives upon
any conversion of the Series G Preferred Shares following such Fundamental Transaction. The Company shall cause any successor
entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume
in writing all of the obligations of the Company under this Certificate of Designations in accordance with the provisions of this
Section 7(a) pursuant to written agreements in form and substance reasonably satisfactory to the Holders and approved by the Holders
(without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of each Holder, deliver to such Holder
in exchange for such Holder’s Series G Preferred Shares a security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Certificate of Designations governing shares of preferred stock of the Successor
Entity which are convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity)
equivalent to the shares of Common Stock acquirable and receivable upon conversion of such Holder’s Series G Preferred Shares
(without regard to any limitations on the conversion set forth in this Certificate of Designations) prior to such Fundamental
Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking
into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares
of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic
value of the Series G Preferred Shares immediately prior to the consummation of such Fundamental Transaction), and which is reasonably
satisfactory in form and substance to the Holders. Upon the occurrence of any such Fundamental Transaction, the Successor Entity
shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this
Certificate of Designations referring to the “Company” shall refer instead to the Successor Entity), and may exercise
every right and power of the Company and shall assume all of the obligations of the Company under this Certificate of Designations
with the same effect as if such Successor Entity had been named as the Company herein.

 

    	 	-14-	 

    	 

    

 

(b)
Redemption Right. No sooner than twenty (20) days nor later than fifteen (15) days prior to the consummation of a Change
of Control, but not prior to the public announcement of such Change of Control, the Company shall deliver written notice thereof
via electronic mail to the Holders (a “Change of Control Notice”). At any time during the period beginning
on the earlier to occur of (x) any oral or written agreement by the Company or any of its Subsidiaries, upon consummation of which
the transaction contemplated thereby would reasonably be expected to result in a Change of Control, (y) a Holder becoming aware
of a Change of Control if the Change of Control Notice is not delivered to such Holder in accordance with the immediately preceding
sentence (as applicable) and (z) a Holder’s receipt of a Change of Control Notice and ending twenty (20) Trading Days after
the date of the consummation of such Change of Control, such Holder may require the Company to redeem (a “Change of Control
Redemption”) all or any portion of such Holder’s Series G Preferred Shares by delivering written notice thereof
(“Change of Control Redemption Notice”) to the Company, which Change of Control Redemption Notice shall indicate
the Conversion Amount such Holder is electing to require the Company to redeem. Any Series G Preferred Shares subject to redemption
pursuant to this Section 7(b) shall be redeemed by the Company in cash by wire transfer of immediately available funds at a price
equal to greater of (i) 118% of the Conversion Amount being redeemed and (ii) the product of (A) the Conversion Amount being redeemed
and (B) the quotient determined by dividing (1) the greatest Closing Sale Price of the shares of Common Stock during the period
beginning on the date immediately preceding the earlier to occur of (x) the consummation of the Change of Control and (y) the
public announcement of such Change of Control and ending on the date the Holder delivers the Change of Control Redemption Notice,
by (II) the lowest Conversion Price in effect during such period (the “Change of Control Redemption Price”).
Redemptions required by this Section 7(b) shall be made in accordance with the provisions of Section 13 and shall have priority
to payments to stockholders in connection with a Change of Control. To the extent redemptions required by this Section 7(b) are
deemed or determined by a court of competent jurisdiction to be prepayments of the Series G Preferred Shares by the Company, such
redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to the contrary in this Section 7(b), but subject
to Section 5(d), until the Change of Control Redemption Price is paid in full, the Conversion Amount submitted for redemption
under this Section 7(b) may be converted, in whole or in part, by a Holder into shares of Common Stock pursuant to Section 5.
The parties hereto agree that in the event of the Company’s redemption of any portion of the Series G Preferred Shares under
this Section 7(b), the Holders’ damages would be uncertain and difficult to estimate because of the parties’ inability
to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity for the
Holders. Accordingly, any Change of Control redemption premium due under this Section 7(b) is intended by the parties to be, and
shall be deemed, a reasonable estimate of the Holders’ actual loss of its investment opportunity and not as a penalty.

 

    	 	-15-	 

    	 

    

 

(8) PURCHASE
RIGHTS. If at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase
stock, warrants, securities or other property pro rata to all record holders of any class of Common Stock (the
“Purchase Rights”), then the Holders will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of
shares of Common Stock acquirable upon complete conversion of the Series G Preferred Shares (without taking into account any
limitations or restrictions on the convertibility of the Series G Preferred Shares) immediately prior to the date on which a
record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which
the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, that to the extent that a Holder’s right to participate in any such Purchase Right
would result in such Holder and the other Attribution Parties exceeding the Maximum Percentage, then such Holder shall not be
entitled to participate in such Purchase Right to such extent (and shall not be entitled to beneficial ownership of such
shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to such extent) and such Purchase Right
to such extent shall be held in abeyance for such Holder until such time or times as its right thereto would not result in
such Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times such Holder shall be
granted such right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any
subsequent Purchase Right to be held similarly in abeyance) to the same extent as if there had been no such
limitation).

 

(9)
OPTIONAL REDEMPTION AT THE HOLDER’S ELECTION. At any time or times after the six (6) month anniversary of the
Issuance Date, each Holder shall have the right, in its sole and absolute discretion, to require that the Company redeem (a “Holder
Optional Redemption”) all or any portion of the Conversion Amount of such Holder’s Series G Preferred Shares then
outstanding by delivering written notice thereof (a “Holder Optional Redemption Notice” and the date such Holder
delivers such notice to the Company, a “Holder Optional Redemption Notice Date”) to the Company which notice
shall state (i) the number of Series G Preferred Shares that is being redeemed by such Holder, (ii) the date on which such Holder
Optional Redemption shall occur, which date shall be the third (3rd) Trading Day from the applicable Holder Optional
Redemption Notice Date (a “Holder Optional Redemption Date”) and (iii) the wire instructions for the payment
of the applicable Holder Optional Redemption Price (as defined below) to such Holder. The portion of such Holder’s Series
G Preferred Shares subject to redemption pursuant to this Section 9 shall be redeemed by the Company in cash at a price equal
to the Conversion Amount being redeemed, including, without limitation, any accrued and unpaid Dividends on such Conversion Amount
and any accrued and unpaid Late Charges (as defined in Section 25(b)) on such Conversion Amount and Dividends, if any, through
the applicable Holder Optional Redemption Date (a “Holder Optional Redemption Price”). Holder Optional Redemptions
made pursuant to this Section 9 shall be made in accordance with Section 13. To the extent redemptions required by this Section
9 are deemed or determined by a court of competent jurisdiction to be prepayments of the Series G Preferred Shares by the Company,
such redemptions shall be deemed to be voluntary prepayments. The parties hereto agree that in the event of the Company’s
redemption of any portion of a Holder’s Series G Preferred Shares under this Section 9, such Holder’s damages would
be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and the uncertainty
of the availability of a suitable substitute investment opportunity for such Holder.

 

    	 	-16-	 

    	 

    

 

(10)
OPTIONAL REDEMPTION AT THE COMPANY’S ELECTION. At any time after the Issuance Date, the Company shall have the
right to redeem all, but not less than all, of the Conversion Amount then remaining under the Series G Preferred Shares (the “Company
Optional Redemption Amount”) as designated in the Company Optional Redemption Notice on the Company Optional Redemption
Date (each as defined below) (the “Company Optional Redemption”). The Series G Preferred Shares subject to
redemption pursuant to this Section 10 shall be redeemed by the Company on the Company Optional Redemption Date in cash by wire
transfer of immediately available funds pursuant to wire instructions provided by the Holders in writing to the Company at a price
equal to: (i) so long as there has been no Equity Conditions Failure during the period beginning on the Company Optional Redemption
Notice Date (as defined below) through the Company Optional Redemption Date (as defined below), the Conversion Amount to be redeemed
and (ii) if an Equity Conditions Failure occurs (which is not waived in writing by such Holder) at any time during the period
beginning on the Company Optional Redemption Notice Date through the Company Optional Redemption Date (the “Company Optional
Redemption Interim Period”), the greater of (x) the Conversion Amount to be redeemed and (y) the product of (A) the
Conversion Amount being redeemed and (B) the quotient determined by dividing (I) the greatest Closing Sale Price of the shares
of Common Stock during the period beginning on the date immediately preceding the Company Optional Redemption Notice Date and
ending on the Company Optional Redemption Date, by (II) the lowest Conversion Price in effect during such period (the price set
forth in the foregoing clause (i) or (i), as applicable, the “Company Optional Redemption Price”). The Company
may exercise its right to require redemption under this Section 10 by delivering a ten (10) Trading Days prior written notice
thereof via electronic mail to all, but not less than all, of the Holders (the “Company Optional Redemption Notice”
and the date all of the Holders received such notice is referred to as the “Company Optional Redemption Notice Date”).
The Company Optional Redemption Notice shall be irrevocable. The Company Optional Redemption Notice shall (i) state the date on
which the Company Optional Redemption shall occur (the “Company Optional Redemption Date”), which date shall
be the tenth (10th) Trading Day immediately following the Company Optional Redemption Notice Date, (ii) state the aggregate
Conversion Amount of the Series G Preferred Shares which the Company has elected to be subject to Company Optional Redemption
from the Holders pursuant to this Section 10 on the Company Optional Redemption Date, (iii) state the applicable Company Optional
Redemption Price in the event: (x) no Equity Conditions Failure occurs during the Company Optional Redemption Interim Period and
(y) an Equity Conditions Failure has occurred or will occur (which is not waived in writing by a Holder) during the Company Optional
Redemption Interim Period. If the Company confirmed that there was no such Equity Conditions Failure as of the Company Optional
Redemption Notice Date but an Equity Conditions Failure occurs at any time during the Company Optional Redemption Interim Period,
the Company shall provide the Holders a subsequent written notice to that effect. Notwithstanding anything to the contrary in
this Section 10, until the Company Optional Redemption Price is paid, in full, the Company Optional Redemption Amount may be converted,
in whole or in part, by the Holder into shares of Common Stock pursuant to Section 5. All Conversion Amounts converted by a Holder
after the Company Optional Redemption Notice Date shall reduce the Company Optional Redemption Amount of such Holder’s Series
G Preferred Shares required to be redeemed on the Company Optional Redemption Date, unless such Holder otherwise indicates in
the applicable Conversion Notice. Company Optional Redemptions made pursuant to this Section 10 shall be made in accordance with
Section 13. To the extent redemptions required by this Section 10 are deemed or determined by a court of competent jurisdiction
to be prepayments of the Series G Preferred Shares by the Company, such redemptions shall be deemed to be voluntary prepayments.
The parties hereto agree that in the event of the Company’s redemption of any portion of a Holder’s Series G Preferred
Shares under this Section 10, such Holder’s damages would be uncertain and difficult to estimate because of the parties’
inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity
for such Holder. If the Company elects to cause a Company Optional Redemption pursuant to Section 10, then it must simultaneously
take the same action in the same proportion with respect to all Holders.

 

    	 	-17-	 

    	 

    

 

(11)
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate
of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution,
issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Certificate of Designations, and will at all times in good faith carry out all of the provisions of this Certificate
of Designations and take all action as may be required to protect the rights of the Holders.

 

 

(12)
RESERVATION OF AUTHORIZED SHARES.

 

(a)
Reservation. The Company shall have sufficient authorized and unissued shares of Common Stock for each of the Series G
Preferred Shares equal to not less than 100% of the number of shares of Common Stock necessary to effect the conversion at the
Conversion Rate (without regard to any limitations herein on any such conversion) with respect to the Conversion Amount of each
such Series G Preferred Share as of the Issuance Date (the "Required Reserve Amount"). The Company shall, so
long as any of the Series G Preferred Shares are outstanding, take all action necessary to reserve and keep available out of its
authorized and unissued Common Stock, solely for the purpose of effecting the conversions of the Series G Preferred Shares, such
number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all of the Series G Preferred
Shares then outstanding; provided that at no time shall the number of shares of Common Stock so reserved shall at no time be less
than the Required Reserve Amount. The initial number of shares of Common Stock reserved for conversions of the Series G Preferred
Shares and each increase in the number of shares so reserved shall be allocated pro rata among the Holders based on the number
of Series G Preferred Shares held by each Holder at the time of issuance of the Series G Preferred Shares or increase in the number
of reserved shares, as the case may be (the "Authorized Share Allocation"). In the event a Holder shall sell
or otherwise transfer any of such Holder’s Series G Preferred Shares, each transferee shall be allocated a pro rata portion
of the number of reserved shares of Common Stock reserved for such transferor. Any shares of Common Stock reserved and allocated
to any Person which ceases to hold any Series G Preferred Shares (other than pursuant to a transfer of Series G Preferred Shares
in accordance with the immediately preceding sentence) shall be allocated to the remaining Holders of Series G Preferred Shares,
pro rata based on the number of Series G Preferred Shares then held by such Holders.

 

(b)
Insufficient Authorized Shares. If at any time while any of the Series G Preferred Shares remain outstanding the Company
does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for
issuance upon conversion of the Series G Preferred Shares at least a number of shares of Common Stock equal to the Required Reserve
Amount (an "Authorized Share Failure"), then the Company shall immediately take all action necessary to increase
the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve
Amount for the Series G Preferred Shares then outstanding. Without limiting the generality of the foregoing sentence, as soon
as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after
the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase
in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder
with a proxy statement and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized
shares of Common Stock and to cause its Board of Directors to recommend to the stockholders that they approve such proposal. Notwithstanding
the foregoing, if during any such time of an Authorized Share Failure, the Company is able to obtain the written consent of a
majority of the shares of its issued and outstanding Common Stock to approve the increase in the number of authorized shares of
Common Stock, the Company may satisfy this obligation by obtaining such consent and submitting for filing with the SEC an Information
Statement on Schedule 14C. If, upon any conversion of the Series G Preferred Shares, the Company does not have sufficient authorized
shares to deliver in satisfaction of such conversion, then unless a Holder elects to rescind such attempted conversion, such Holder
may require the Company to pay to the Holder within three (3) Trading Days of the applicable attempted conversion, cash in an
amount equal to the product of (i) the number of shares of Common Stock that the Company is unable to deliver pursuant to this
Section 12, and (ii) the highest Closing Sale Price of the Common Stock during the period beginning on the date of the applicable
Conversion Date and ending on the date the Company makes the applicable cash payment.

 

    	 	-18-	 

    	 

    

 

(13)
REDEMPTIONS.

 

(a)
Mechanics. The Company shall deliver the applicable Triggering Event Redemption Price to a Holders within three (3) Business
Days after the Company’s receipt of such Holder’s Triggering Event Redemption Notice (the "Event of Default
Redemption Date"). If a Holder has submitted a Change of Control Redemption Notice in accordance with Section 7(b), the
Company shall deliver the applicable Change of Control Redemption Price to such Holder (i) concurrently with the consummation
of such Change of Control if such notice is received prior to the consummation of such Change of Control and (ii) within three
(3) Business Days after the Company’s receipt of such notice otherwise (such date, the "Change of Control Redemption
Date"). The Company shall deliver the applicable Holder Optional Redemption Price to each Holder on the applicable Holder
Optional Redemption Date. The Company shall deliver the applicable Company Optional Redemption Price to each Holder on the applicable
Company Optional Redemption Date. The Company shall pay the applicable Redemption Price to the Holders in cash by wire transfer
of immediately available funds pursuant to wire instructions provided by the holder in writing to the Company on the applicable
due date. In the event that the Company does not pay a Redemption Price to a Holder within the time period required, at any time
thereafter and until the Company pays such unpaid Redemption Price in full, a Holder shall have the option, in lieu of redemption,
to require the Company to promptly return to such Holder any or all of the Series G Preferred Shares that were submitted for redemption
by such Holder and for which the applicable Redemption Price has not been paid. Upon the Company’s receipt of such notice,
(i) the applicable Redemption Notice of such Holder shall be null and void with respect to such Series G Preferred Shares and
(ii) the Company shall immediately return any Series G Preferred Shares, or issue new Series G Stock Certificates to such Holder
representing such Conversion Amount to be redeemed. A Holder’s delivery of a notice voiding a Redemption Notice and exercise
of its rights following such notice shall not affect the Company’s obligations to make any payments of Late Charges which
have accrued prior to the date of such notice with respect to the Conversion Amount subject to such notice.

 

(b)
Redemption by Other Holders. Upon the Company’s receipt of notice from any Holder for redemption or repayment as
a result of an event or occurrence substantially similar to the events or occurrences described in Section 6(b) or Section 7(b)
or Section 9 (each, an "Other Redemption Notice"), the Company shall immediately, but no later than one (1) Business
Day of its receipt thereof, forward to each Holder a copy of such notice. If the Company receives a Redemption Notice and one
or more Other Redemption Notices, during the seven (7) Business Day period beginning on and including the date which is three
(3) Business Days prior to the Company’s receipt of such Holder’s Redemption Notice and ending on and including the
date which is three (3) Business Days after the Company’s receipt of a Holder’s Redemption Notice and the Company
is unable to redeem all Stated Value, dividends, Late Charges and other amounts designated in such Redemption Notice and such
Other Redemption Notices received during such seven (7) Business Day period, then the Company shall redeem a pro rata amount from
each Holder based on the Stated Value of the Series G Preferred Shares submitted for redemption pursuant to such Redemption Notice
and such Other Redemption Notices received by the Company during such seven (7) Business Day period.

 

    	 	-19-	 

    	 

    

 

(c)
Insufficient Assets. If upon a Redemption Date, the assets of the Company are insufficient to pay the applicable Redemption
Price, the Company shall (i) take all appropriate action reasonably within its means to maximize the assets available for paying
the applicable Redemption Price, (ii) redeem out of all such assets available therefor on the applicable Redemption Date the maximum
possible number of Series G Preferred Shares that it can redeem on such date pro rata among the Holders to be redeemed in proportion
to the aggregate number of Series G Preferred Shares outstanding on the applicable Redemption Date and (iii) following the applicable
Redemption Date, at any time and from time to time when additional assets of the Company become available to pay the balance of
the applicable Redemption Price of the Series G Preferred Shares, the Company shall use such assets, at the end of the then current
fiscal quarter, to pay the balance of such Redemption Price of the Series G Preferred Shares, or such portion thereof for which
assets are then available, on the basis set forth above at the applicable Redemption Price, and such assets will not be used prior
to the end of such fiscal quarter for any other purpose. Dividends on the Stated Value of the Series G Preferred Shares that have
not been redeemed shall continue to accrue until such time as the Company redeems the Series G Preferred Shares. The Company shall
pay to each Holder the applicable Redemption Price for each Series G Preferred Share without regard to the legal availability
of funds unless expressly prohibited by applicable law or unless the payment of the applicable Redemption Price could reasonably
be expected to result in personal liability to the directors of the Company.

 

(14)
VOTING RIGHTS. Each Holder shall be entitled to the whole number of votes equal to the number of shares of Common
Stock into which such Holder's Series G Preferred Shares would be convertible on the record date for the vote or consent of stockholders
assuming a Conversion Price equal to $1.91 (subject to adjustment to the Common Stock on or after the Subscription Date for any
stock split, stock dividend, stock combination, recapitalization or similar event) and solely for purposes of this Section 14,
without giving effect to the provisions of Section 5(d)(i). Each Holder shall be entitled to receive the same prior notice of
any stockholders' meeting as is provided to the holders of Common Stock in accordance with the bylaws of the Company, as well
as prior notice of all stockholder actions to be taken by legally available means in lieu of a meeting, and shall vote as a class
with the holders of Common Stock as if they were a single class of securities upon any matter submitted to a vote of stockholders,
except those matters required by law or by the terms hereof to be submitted to a class vote of the Holders of Series G Preferred
Shares, in which case the Holders of Series G Preferred Shares only shall vote as a separate class.

 

    	 	-20-	 

    	 

    

 

(15)
NEGATIVE COVENANTS. After the date hereof and until all of the Series G Preferred Shares have been converted, redeemed
or otherwise satisfied in full in accordance with their terms, the Company shall not, and the Company shall not permit any of
its Subsidiaries, without the prior written consent of the Required Holders, to directly or indirectly:

 

(a)
incur or guarantee, assume or suffer to exist any Indebtedness, other than Permitted Indebtedness;

 

(b)
allow or suffer to exist any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or
assets (including accounts and contract rights) owned by the Company or any of its Subsidiaries (collectively, "Liens")
other than Permitted Liens and as set forth on Schedule 3(yy)(i) of the Securities Purchase Agreement;

 

(c)
redeem, defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or
in part, whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion of any
Indebtedness, whether by way of payment in respect of principal of (or premium, if any) or interest on, such Indebtedness if at
the time such payment is due or is otherwise made or, after giving effect to such payment, an event constituting, or that with
the passage of time and without being cured would constitute, a Triggering Event has occurred and is continuing;

 

(d)
redeem, defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or
in part, whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion of any
Indebtedness (including, without limitation Permitted Indebtedness) other than as set forth on Schedule 3(yy)(ii) of the
Securities Purchase Agreement;

 

(e)
other than with respect to the Series G Preferred Shares in accordance with the terms of the Certificate of Designations, redeem
or repurchase its Equity Interest (except on a pro rata basis among all holders thereof);

 

(f)
declare or pay any cash dividends or distribution on any Equity Interest of the Company or of its Subsidiaries (other than in
connection with the TRNF Spin-Off);

 

(g)
make, any change in the nature of its business as described in the Company’s most recent Annual Report filed on Form 10-K
with the SEC or modify its corporate structure or purpose, except as contemplated by the TRNF Spin-Off;

 

(h)
encumber, license or otherwise allow any Liens on any Intellectual Property, including, without limitation, any claims for damage
by way of any past, present, or future infringement of any of the foregoing, in each case, other than Permitted Liens;

 

    	 	-21-	 

    	 

    

 

(i)
except as contemplated by the TRNF Spin-Off, enter into, renew, extend or be a party to, any transaction or series of related
transactions (including, without limitation, the purchase, sale, lease, license, transfer or exchange of property or assets of
any kind or the rendering of services of any kind) with any Affiliate, except in the ordinary course of business in a manner and
to an extent consistent with past practice and necessary or desirable for the prudent operation of its business, for fair consideration
and on terms no less favorable to it or its Subsidiaries than would be obtainable in a comparable arm’s length transaction
with a Person that is not an Affiliate thereof;

 

(j)
issue Series G Preferred Shares (other than as contemplated by the Securities Purchase Agreement), or issue any
other securities that would cause a breach or default under this Certificate of Designations; or

 

(k)
create (by reclassification or otherwise), or authorize the creation of, or issue or obligate itself to issue additional or other
capital stock or securities exchangeable for or convertible or exercisable into capital stock whether such capital stock is Pari
Passu Stock or ranks senior to the Series G Preferred Shares prior and in preference to the Series G Preferred Shares in respect
of the preferences as to distributions, the payment of dividends and payments upon a Liquidation Event.

 

(16)
AFFIRMATIVE COVENANTS. Until all of the Series G Preferred Shares have been converted, redeemed or otherwise satisfied
in full in accordance with their terms, the Company shall, and the Company shall, except with respect to clause (vi) below, cause
each Subsidiary to, unless otherwise agreed to by the Required Holders, directly and indirectly:

 

(a)
maintain and preserve its existence, rights and privileges, and become or remain duly qualified and in good standing in each jurisdiction
in which the character of the properties owned or leased by it or in which the transaction
of its business makes such qualification necessary, except in the case that any such failure to so maintain, preserve or comply
has not had and is not reasonably likely to have, a Material Adverse Effect;

 

(b)
maintain and preserve all of its properties which are necessary or useful in the proper conduct of its business in good working
order and condition, ordinary wear and tear excepted, and comply at all times with the provisions of all leases to which it is
a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder, except in
the case that any such failure to so maintain, preserve or comply has not had, and is not reasonably likely to have, a Material
Adverse Effect;

 

(c)
take all action necessary or advisable to maintain all of the Intellectual Property that is necessary or material to the conduct
of its business in full force and effect;

 

(d)
maintain insurance with responsible and reputable insurance companies or associations (including, without limitation, comprehensive
general liability, hazard, rent and business interruption insurance) with respect to its properties (including all real properties
leased or owned by it) and business, in such amounts and covering such risks as is required by any governmental authority having
jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies in similar
businesses similarly situated; and

 

    	 	-22-	 

    	 

    

 

(e)
notify the Holders in writing whenever an Equity Conditions Failure occurs, and simultaneously with the delivery of such notice
to the Holder, file a Current Report on Form 8-K with the SEC to state such fact.

 

(17)
VOTE TO CHANGE THE TERMS OF OR ISSUE SERIES G PREFERRED SHARES. In addition to any other rights provided by law, except
where the vote or written consent of the holders of a greater number of shares is required by law or by another provision of the
Certificate of Incorporation, the affirmative vote at a meeting duly called for such purpose or the written consent without a
meeting of the Required Holders, voting together as a single class, shall be required before the Company may: (a) amend or repeal
any provision of, or add any provision to, the Certificate of Incorporation or bylaws, or file any articles of amendment, certificate
of designations, preferences, limitations and relative rights of any series of preferred stock, if such action would adversely
alter or change the preferences, rights, privileges or powers of, or restrictions provided for the benefit of the Series G Preferred
Shares, regardless of whether any such action shall be by means of amendment to the Certificate of Incorporation or by merger,
consolidation or otherwise; (b) increase or decrease (other than by conversion) the authorized number of shares of Series G Preferred
Shares; or (c) amend or waive any provision of the Certificate of Designations with respect to the Series G Preferred Shares.
Any amendment or waiver to this Certificate of Incorporation made in conformity with the provisions of this Section 17 shall be
binding on all Holders. No such amendment or waiver shall be effective to the extent that it applies to less than all of the Holders.

 

(18)
TRANSFER. Series G Preferred Shares and any shares of Common Stock issued upon conversion of the Series G Preferred
Shares may be offered, sold, assigned or transferred by a Holder without the consent of the Company, subject only to the provisions
of Section 2(h) of the Securities Purchase Agreement. Holders shall have the right to transfer and to exercise rights with respect
to fractional Series G Preferred Shares and any redemptions of Series G Preferred Shares by the Company shall be made calculating
the number of applicable Series G Preferred Shares to one thousandth of a Series G Preferred Share.

 

(19)
EQUAL TREATMENT OF HOLDERS. No consideration shall be offered or paid to any of the Holders to amend or waive or modify
any provision of the Series G Preferred Shares, unless the same consideration (other than the reimbursement of legal fees) is
also offered to all of the Holders. This provision constitutes a separate right granted to each of the Holders by the Company
and shall not in any way be construed as the Holders acting in concert or as a group with respect to the purchase, disposition
or voting of securities or otherwise.

 

(20)
GENERAL PROVISIONS.

 

(a)
In addition to the above provisions with respect to Series G Preferred Shares, such Series G Preferred Shares shall be subject
to and be entitled to the benefit of the provisions set forth in the Certificate of Incorporation of the Company with respect
to preferred stock of the Company generally; provided, however, that in the event of any conflict between such provisions,
the provisions set forth in this Certificate of Designations shall control.

 

    	 	-23-	 

    	 

    

 

(b)
Any Series G Preferred Shares which are converted, repurchased or redeemed shall be automatically and immediately cancelled and
shall not be reissued, sold or transferred.

 

(c)
Whenever notice is required to be given under this Certificate of Designations, unless otherwise provided herein, such notice
shall be given in accordance with Section 9(f) of the Securities Purchase Agreement.

 

(21)
REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Certificate
of Designations shall be cumulative and in addition to all other remedies available under this Certificate of Designations and
any of the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive
relief), and nothing herein shall limit a Holder’s right to pursue actual and consequential damages for any failure by the
Company to comply with the terms of this Certificate of Designations. The Company covenants to each Holder that there shall be
no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein
with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by such Holder
and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof).
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holders and that
the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or
threatened breach, the Holders shall be entitled, in addition to all other available remedies, to an injunction restraining any
breach, without the necessity of showing economic loss and without any bond or other security being required.

 

(22)
CONSTRUCTION; HEADINGS. This Certificate of Designations shall be deemed to be jointly drafted by the Company and all
the Buyers and shall not be construed against any person as the drafter hereof. The headings of this Certificate of Designations
are for convenience of reference and shall not form part of, or affect the interpretation of, this Certificate of Designations.

 

(23)
FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of a Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privilege.

 

(24)
DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Closing Bid Price or the Closing Sale Price
or the arithmetic calculation of the Conversion Rate, the Conversion Price or any Redemption Price, the Company shall instruct
the Transfer Agent to issue to such Holder the number of shares of Common Stock that is not disputed and the Company shall submit
the disputed determinations or arithmetic calculations within one (1) Business Day of receipt, or deemed receipt, of the Conversion
Notice or Redemption Notice or other event giving rise to such dispute, as the case may be, to the applicable Holder. If a Holder
and the Company are unable to agree upon such determination or calculation within one (1) Business Day of such disputed determination
or arithmetic calculation being submitted to such Holder, then the Company shall, within one (1) Business Day submit (a) the disputed
determination of the Closing Bid Price or the Closing Sale Price to an independent, reputable investment bank selected by such
Holder and approved by the Company, such approval not to be unreasonably withheld, conditioned or delayed, or (b) the disputed
arithmetic calculation of the Conversion Rate, Conversion Price or any Redemption Price to an independent, outside accountant,
selected by such Holder and approved by the Company, such approval not to be unreasonably withheld, conditioned or delayed. The
Company, at the Company’s expense, shall cause the investment bank or the accountant, as the case may be, to perform the
determinations or calculations and notify the Company and the applicable Holder of the results no later than five (5) Business
Days from the time it receives the disputed determinations or calculations. Such investment bank’s or accountant’s
determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

 

    	 	-24-	 

    	 

    

 

(25)
NOTICES; PAYMENTS.

 

(a)
Notices. Whenever notice is required to be given under this Certificate of Designations, unless otherwise provided herein,
such notice shall be given in accordance with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the
Holder with prompt written notice of all actions taken pursuant to this Certificate of Designations, including in reasonable detail
a description of such action and the reason therefore. Without limiting the generality of the foregoing, the Company shall give
written notice to the Holder (i) immediately upon any adjustment of the Conversion Price, setting forth in reasonable detail,
and certifying, the calculation of such adjustment and (ii) at least ten (10) Business Days prior to the date on which the Company
closes its books or takes a record (I) with respect to any dividends or distribution upon the Common Stock, (II) with respect
to any pro rata subscription offer to holders of Common Stock or (III) for determining rights to vote with respect to any Fundamental
Transaction or Liquidation Event, provided that such information shall be made known to the public prior to or in conjunction
with such notice being provided to such Holder.

 

(b)
Payments. Whenever any payment of cash is to be made by the Company to any Person pursuant to this Certificate of Designations,
such payment shall be made in lawful money of the United States of America via wire transfer of immediately available funds by
providing the Company with prior written notice setting out such request and such Holder’s wire transfer instructions; provided,
that a Holder may elect to receive a payment of cash by a check drawn on the account of the Company and sent via overnight courier
service to such Person at such address as previously provided to the Company in writing (which address, in the case of each of
the Buyers, shall initially be as set forth on the Schedule of Buyers attached to the Securities Purchase Agreement). Whenever
any amount expressed to be due by the terms of this Certificate of Designations is due on any day which is not a Business Day,
the same shall instead be due on the next succeeding day which is a Business Day. Any amount of Stated Value or other amounts
due under the Transaction Documents which is not paid when due shall result in a late charge being incurred and payable by the
Company in an amount equal to interest on such amount at the rate of eighteen percent (18.0%) per annum from the date such amount
was due until the same is paid in full ("Late Charge").

 

    	 	-25-	 

    	 

    

 

(26)
GOVERNING LAW; JURISDICTION; JURY TRIAL. This Certificate of Designations shall be construed and enforced in accordance
with, and all questions concerning the construction, validity, interpretation and performance of this Certificate of Designations
shall be governed by, the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State of Delaware. The Company hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any
such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. The Company hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party at the address set forth in Section 9(f) of the
Securities Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.
Nothing contained herein shall be deemed or operate to preclude the Holders from bringing suit or taking other legal action against
the Company in any other jurisdiction to collect on the Company’s obligations to the Holders, to realize on any collateral
or any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holders. THE COMPANY
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION WITH OR ARISING OUT OF THIS CERTIFICATE OF DESIGNATIONS OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(27)
LOST OR STOLEN CERTIFICATES. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the
loss, theft, destruction or mutilation of any Series G Preferred Stock Certificates representing the Series G Preferred Shares
(if any), and, in the case of loss, theft or destruction, of any indemnification undertaking by such Holder to the Company in
customary form (but without any obligation to post a surety or other bond) and, in the case of mutilation, upon surrender and
cancellation of the Series G Preferred Stock Certificate(s), the Company shall execute and deliver new preferred stock certificate(s)
representing the outstanding Stated Value; provided, however, the Company shall not be obligated to re-issue preferred
stock certificates if such Holder contemporaneously requests the Company to convert such Series G Preferred Shares into Common
Stock.

 

    	 	-26-	 

    	 

    

 

(28)
DISCLOSURE. Upon receipt or delivery by the Company of any notice in accordance with the terms of this Certificate
of Designations, unless the Company has in good faith determined that the matters relating to such notice do not constitute material,
nonpublic information relating to the Company or its Subsidiaries, the Company shall contemporaneously with any such receipt or
delivery publicly disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that
the Company believes that a notice contains material, nonpublic information relating to the Company or its Subsidiaries, the Company
so shall indicate to the Holders contemporaneously with delivery of such notice, and in the absence of any such indication, the
Holders shall be allowed to presume that all matters relating to such notice do not constitute material, nonpublic information
relating to the Company or its Subsidiaries.

 

(29)
SERIES G PREFERRED SHARE REGISTER. The Company shall maintain at its principal executive offices (or such other office
or agency of the Company as it may designate by notice to the Holders), a register for the Series G Preferred Shares, in which
the Company shall record the name and address of the persons in whose name the Series G Preferred Shares have been issued, as
well as the name and address of each transferee. The Company may treat the Person in whose name any Series G Preferred Share is
registered on the register as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary, but in
all events recognizing any properly made transfers.

 

(30)
STOCKHOLDER MATTERS. Any stockholder action, approval or consent required, desired or otherwise sought by the Company
pursuant to the rules and regulations of the Principal Market, the DGCL, this Certificate of Designations or otherwise with respect
to the issuance of the Series G Preferred Shares or the Common Stock issuable upon conversion thereof may be effected by written
consent of the Company’s stockholders or at a duly called meeting of the Company’s stockholders, all in accordance
with the applicable rules and regulations of the Principal Market and the DGCL. This provision is intended to comply with the
applicable sections of the DGCL permitting stockholder action, approval and consent affected by written consent in lieu of a meeting.

 

(31)
INDEPENDENT NATURE OF HOLDERS’ OBLIGATIONS AND RIGHTS. The rights and obligations of each Holder under any Transaction
Document are several and not joint with the obligations of any other Holder, and no Holder shall be responsible in any way for
the performance of the obligations of any other Holder under any Transaction Document. Nothing contained herein or in any other
Transaction Document, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute such Holder
as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holders are in
any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.
Each Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising
out of this Certificate of Designations or out of any other Transaction Documents, and it shall not be necessary for any other
Holder to be joined as an additional party in any proceeding for such purpose.

 

    	 	-27-	 

    	 

    

 

(32)
CERTAIN DEFINITIONS. For purposes of this Certificate of Designations, Preferences and Rights of Series G Preferred
Shares of the Company (this “Certificate of Designations”) the following terms shall have the following meanings:

 

(a)
“Affiliate” shall have the meaning ascribed to such term in Rule 405 of the Securities Act.

 

(b)
“Attribution Parties” means, collectively, the following Persons: (i) any investment vehicle, including, any
funds, feeder funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed
or advised by such Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates
of such Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with such
Holder or any of the foregoing and (iv) any other Persons whose beneficial ownership of the Common Stock would or could be aggregated
with such Holder’s and the other Attribution Parties for purposes of Section 13(d) of the Exchange Act. For clarity, the
purpose of the foregoing is to subject collectively such Holder and all other Attribution Parties to the Maximum Percentage.

 

(c)
“Bloomberg” means Bloomberg Financial Markets.

 

(d)
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City
of New York are authorized or required by law to remain closed.

 

(e)
“Buyers” has the meaning ascribed to such term in the Securities Purchase Agreement.

 

(f)
“Calendar Quarter” means each of: the period beginning on and including January 1 and ending on and including
March 31; the period beginning on and including April 1 and ending on and including June 30; the period beginning on and including
July 1 and ending on and including September 30; and the period beginning on and including October 1 and ending on and including
December 31.

 

(g)
“Change of Control” means any Fundamental Transaction other than (i) any reorganization, recapitalization or
reclassification of the Common Stock in which holders of the Company’s voting power immediately prior to such reorganization,
recapitalization or reclassification continue after such reorganization, recapitalization or reclassification to hold publicly
traded securities and, directly or indirectly, are, in all material respect, the holders of the voting power of the surviving
entity (or entities with the authority or voting power to elect the members of the board of directors (or their equivalent if
other than a corporation) of such entity or entities) after such reorganization, recapitalization or reclassification or (ii)
pursuant to a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company.

 

    	 	-28-	 

    	 

    

 

(h)
“Closing Bid Price” and “Closing Sale Price” means, for any security as of any date, the
last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg,
or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing
trade price, as the case may be, then the last bid price or last trade price, respectively, of such security prior to 4:00:00
p.m., New York Time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading
market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities
exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply,
the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported
for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such
security as reported in the Pink Open Market (f/k/a OTC Pink) published by OTC Markets Group, Inc. (or a similar organization
or agency succeeding to its functions of reporting prices). If the Closing Bid Price or the Closing Sale Price cannot be calculated
for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case
may be, of such security on such date shall be the fair market value as mutually determined by the Company and the applicable
Holder. If the Company and such Holder are unable to agree upon the fair market value of such security, then such dispute shall
be resolved pursuant to Section 24. All such determinations to be appropriately adjusted for any stock dividend, stock split,
stock combination, reclassification or other similar transaction during the applicable calculation period.

 

(i)
“Common Shares” has the meaning ascribed to such term in the Securities Purchase Agreement.

 

(j)
“Common Stock” means (i) the Company’s shares of Common Stock, par value $0.001 per share, and (ii) any
share capital into which such Common Stock shall have been changed or any share capital resulting from a reorganization, recapitalization
or reclassification of such Common Stock, excluding shares of Taronis Fuels, Inc. to be issued pursuant to the TRNF Spin-Off.

 

    	 	-29-	 

    	 

    

 

(k)
“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise,
of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose
or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such
liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that
the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

 

(l)
“Conversion Shares” means shares of Common Stock issuable by the Company pursuant to the terms of this Certificate
of Designations, including any related dividends and Late Charges so converted or redeemed.

 

(m)
“Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

 

(n)
“Eligible Market” means the Principal Market, The New York Stock Exchange, The Nasdaq
Global Market, The Nasdaq Global Select Market, or the NYSE American.

 

(o)
“Equity Conditions” means each of the following conditions: (i) on each day during Equity Conditions Measuring
Period, all Underlying Shares, including the shares of Common Stock issuable upon conversion of the Conversion Amount that is
subject to the applicable Company Optional Redemption requiring the satisfaction of the Equity Conditions, issued or issuable
without restrictive legends and eligible for immediate sale without restriction or limitation pursuant to pursuant to Rule 144
and Section 3(a)(9) of the Securities Act without the requirement to be in compliance with Rule 144(c)(1) and without the need
for registration under any applicable federal or state securities laws; (ii) on each day during the Equity Conditions Measuring
Period, the Common Stock is designated for quotation on the Principal Market or any other Eligible Market and shall not have been
suspended from trading on such exchange or market nor shall delisting or suspension by such exchange or market been threatened
(with delisting reasonably likely to occur after giving effect to all applicable notice, appeal, cure, compliance and hearing
periods), commenced or pending either (A) in writing by such exchange or market or (B) by falling below the then effective minimum
listing maintenance requirements of such exchange or market; (iii) during the Equity Conditions Measuring Period, the Company
shall have delivered shares of Common Stock pursuant to the terms of this Certificate of Designations and shares of Common Stock
upon exercise of the Warrants to the holders on a timely basis as set forth in Section 5(c) hereof and Section 1(a) of the Warrants;
(iv) the shares of Common Stock issuable upon conversion of the Conversion Amount that is subject to the applicable Company Optional
Redemption requiring the satisfaction of the Equity Conditions may be issued in full without violating Section 5(d) hereof and
the rules or regulations of the Principal Market or any other applicable Eligible Market; (v) during the Equity Conditions Measuring
Period, the Company shall not have failed to timely make any payments within five (5) Business Days of when such payment is due
pursuant to any Transaction Document; (vi) during the Equity Conditions Measuring Period, there shall not have occurred either
(A) the public announcement of a pending, proposed or intended Fundamental Transaction which has not been abandoned, terminated
or consummated, (B) a Triggering Event or (C) an event that with the passage of time or giving of notice would constitute a Triggering
Event; (vii) the Company shall have no knowledge of any fact that would cause any Underlying Shares, including the shares of Common
Stock issuable upon conversion of the Conversion Amount that is subject to the applicable Company Optional Redemption requiring
the satisfaction of the Equity Conditions, not to be eligible for immediate sale without restriction pursuant to Rule 144 and
Section 3(a)(9) of the Securities Act without the requirement to be in compliance with Rule 144(c)(1); (viii) during the Equity
Conditions Measuring Period, the Company otherwise shall have been in compliance with and shall not have breached any provision,
covenant, representation or warranty of any Transaction Document in any respect; (ix) during the Equity Conditions Measuring Period,
such Holder shall not be in possession of any unsolicited material, nonpublic information received from the Company, any Subsidiary
or its respective agent or affiliates; (x) the shares of Common Stock issuable upon conversion of the Conversion Amount that is
subject to the applicable Company Optional Redemption requiring the satisfaction of the Equity Conditions are duly authorized
and listed and eligible for trading without restriction on an Eligible Market; and (xi) the average daily dollar trading volume
of the Common Stock as reported by Bloomberg during the twenty (20) Trading Days immediately prior to the applicable date of determination
shall be at least twenty percent (20%) of the Stated Value of the then outstanding Series G Preferred Shares.

 

    	 	-30-	 

    	 

    

 

(p)
“Equity Conditions Failure” means that on any applicable date of determination, the Equity Conditions have
not each been satisfied or waived in writing by such Holder; provided, however, that the Equity Condition set forth
in clause (iv) of such definition is not waivable by any Holder.

 

(q)
“Equity Conditions Measuring Period” means each day during the period beginning thirty (30) Trading Days immediately
prior to the applicable date of determination and ending on and including the applicable date of determination.

 

(r)
“Equity Interests” means (a) all shares of capital stock (whether denominated as common capital stock or preferred
capital stock), equity interests, beneficial, partnership or membership interests, joint venture interests, participations or
other ownership or profit interests in or equivalents (regardless of how designated) of or in a Person (other than an individual),
whether voting or non-voting and (b) all securities convertible into or exchangeable for any of the foregoing and all warrants,
Options or other rights to purchase, subscribe for or otherwise acquire any of the foregoing, whether or not presently convertible,
exchangeable or exercisable.

 

(s)
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

    	 	-31-	 

    	 

    

 

(t)
“Fundamental Transaction” means (i) that the Company shall, directly or indirectly, including through Subsidiaries,
Affiliates or otherwise, in one or more related transactions, (a) consolidate or merge with or into (whether or not the Company
is the surviving corporation) another Subject Entity, or (b) sell, assign, transfer, convey or otherwise dispose of all or substantially
all of the properties or assets of the Company or any of its “significant subsidiaries” (as defined in Rule 1-02 of
Regulation S-X) to one or more Subject Entities, or (c) make, or allow one or more Subject Entities to make, or allow the Company
to be subject to or have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or
exchange offer that is accepted by the holders of at least either (1) 50% of the outstanding shares of Common Stock, (2) 50% of
the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party
to, or Affiliated with any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding;
or (3) such number of shares of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject
Entity making or party to, such purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule
13d-3 under the Exchange Act) of at least 50% of the outstanding shares of Common Stock, or (d) consummate a share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with one or more Subject Entities whereby such Subject Entities, individually or in the aggregate, acquire, either (1) at least
50% of the outstanding shares of Common Stock, (2) at least 50% of the outstanding shares of Common Stock calculated as if any
shares of Common Stock held by all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party
to, such stock purchase agreement or other business combination were not outstanding; or (3) such number of shares of Common Stock
such that the Subject Entities become collectively the beneficial owners (as defined in Rule 13d-3 under the Exchange Act) of
at least 50% of the outstanding shares of Common Stock, or (e) reorganize, recapitalize or reclassify its Common Stock, (ii) that
the Company shall, directly or indirectly, including through Subsidiaries, Affiliates or otherwise, in one or more related transactions,
allow any Subject Entity individually or the Subject Entities in the aggregate to be or become the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, whether through acquisition, purchase, assignment,
conveyance, tender, tender offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business combination,
reorganization, recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise
in any manner whatsoever, of either (a) at least 50% of the aggregate ordinary voting power represented by issued and outstanding
Common Stock, (b) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock not held
by all such Subject Entities as of the Subscription Date calculated as if any shares of Common Stock held by all such Subject
Entities were not outstanding, or (c) a percentage of the aggregate ordinary voting power represented by issued and outstanding
shares of Common Stock or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory
short form merger or other transaction requiring other stockholders of the Company to surrender their shares of Common Stock without
approval of the stockholders of the Company or (iii) that the Company shall directly or indirectly, including through Subsidiaries,
Affiliates or otherwise, in one or more related transactions, the issuance of or the entering into any other instrument or transaction
structured in a manner to circumvent, or that circumvents, the intent of this definition in which case this definition shall be
construed and implemented in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary
to correct this definition or any portion of this definition which may be defective or inconsistent with the intended treatment
of such instrument or transaction. Notwithstanding anything to the contrary contained herein, the TRNF Spin-Off shall not constitute
a Fundamental Transaction or a Change of Control.

 

    	 	-32-	 

    	 

    

 

(u)
“GAAP” means United States generally accepted accounting principles, consistently applied.

 

(v)
“Group” means a “group” as that term is used in Section 13(d) of the Exchange Act and as defined
in Rule 13d-5 thereunder.

 

(w)
“Indebtedness” of any Person means, without duplication (i) all indebtedness for borrowed money, (ii) all obligations
issued, undertaken or assumed as the deferred purchase price of property or services, including (without limitation) “capital
leases” in accordance with GAAP (other than trade payables entered into in the ordinary course of business consistent with
past practice), (iii) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar
instruments, (iv) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced
incurred in connection with the acquisition of property, assets or businesses, (v) all indebtedness created or arising under any
conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or
assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement
in the event of default are limited to repossession or sale of such property), (vi) all monetary obligations under any leasing
or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as
a capital lease, (vii) all indebtedness referred to in clauses (i) through (vi) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, deed of trust, lien, pledge, charge,
security interest or other encumbrance of any nature whatsoever in or upon any property or assets (including accounts and contract
rights) with respect to any asset or property owned by any Person, even though the Person which owns such assets or property has
not assumed or become liable for the payment of such indebtedness, and (viii) all Contingent Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (i) through (vii) above.

 

    	 	-33-	 

    	 

    

 

(x)
“Intellectual Property” has the meaning ascribed to such term in the Securities Purchase Agreement.

 

(y)
“Lead Investor” means Empery Asset Master Fund, Ltd.

 

(z)
“Liquidation Event” means the voluntary or involuntary liquidation, dissolution or winding up of the Company
or such Subsidiaries the assets of which constitute all or substantially all of the assets of the business of the Company and
its Subsidiaries taken as a whole, in a single transaction or series of transactions, or adoption of any plan for the same.

 

(aa)
“Material Adverse Effect” has the meaning ascribed to such term in the Securities Purchase Agreement.

 

(bb)
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible
Securities.

 

(cc)
“Permitted Indebtedness” means (i) trade payables incurred in the ordinary course of business consistent with
past practice and (ii) Indebtedness secured by Permitted Liens described in clauses (iv) of the definition of Permitted Liens.

 

(dd)
“Permitted Liens” means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by
appropriate proceedings for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising
in the ordinary course of business by operation of law with respect to a liability that is not yet due or delinquent, (iii) any
Lien created by operation of law, such as materialmen’s liens, mechanics’ liens and other similar liens, arising in
the ordinary course of business with respect to a liability that is not yet due or delinquent or that are being contested in good
faith by appropriate proceedings, (iv) Liens (A) upon or in any equipment acquired or held by the Company or any of its Subsidiaries
to secure the purchase price of such equipment or Indebtedness incurred solely for the purpose of financing the acquisition or
lease of such equipment, or (B) existing on such equipment at the time of its acquisition, provided that the Lien is confined
solely to the property so acquired and improvements thereon, and the proceeds of such equipment, (v) Liens incurred in connection
with the extension, renewal or refinancing of the Indebtedness secured by Liens of the type described in clause (iv) above, provided
that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal
amount of the Indebtedness being extended, renewed or refinanced does not increase, (vi) leases or subleases and licenses and
sublicenses granted to others in the ordinary course of the Company’s business, not interfering in any material respect
with the business of the Company and its Subsidiaries taken as a whole, (vii) Liens in favor of customs and revenue authorities
arising as a matter of law to secure payments of custom duties in connection with the importation of goods and (viii) Liens arising
from judgments, decrees or attachments in circumstances not constituting a Triggering Event under Section 6(a)(ix).

 

    	 	-34-	 

    	 

    

 

 

(ee) “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

(ff) “Principal
Market” means The Nasdaq Capital Market.

 

(gg) “Pro
Rata Amount” means a fraction (i) the numerator of which is the number of Series G Preferred Shares held by the applicable
Holder at the applicable time of determination and (ii) the denominator of which is the number of Series G Preferred Shares outstanding
at the applicable time of determination.

 

(hh) “Redemption
Dates” means, collectively, the Event of Default Redemption Dates, the Change of Control Redemption Dates, the Holder
Optional Redemption Dates and the Company Optional Redemption Date, as applicable, each of the foregoing, individually, a Redemption
Date.

 

(ii) “Redemption
Notices” means, collectively, the Event of Default Redemption Notices, the Change of Control Redemption Notices, the
Holder Optional Redemption Notices and the Company Optional Redemption Notice, each of the foregoing, individually, a Redemption
Notice.

 

(jj) “Redemption
Prices” means, collectively, the Event of Default Redemption Prices, the Change of Control Redemption Prices, the Holder
Optional Redemption Prices and the Company Optional Redemption Price, each of the foregoing, individually, a Redemption Price.

 

(kk) “Required
Holders” means the Holders representing at least a majority of the aggregate Series G Preferred Shares then outstanding
and shall include the Lead Investor so long as the Lead Investor or any of its Affiliates is a Holder.

 

(ll) “SEC”
means the United States Securities and Exchange Commission.

 

(mm) “Securities
Act” means the Securities Act of 1933, as amended.

 

(nn) “Securities
Purchase Agreement” means that certain securities purchase agreement dated as of the Subscription Date by and among
the Company and the investors listed on the signature pages attached thereto pursuant to which the Company issued the Common Shares,
Series G Preferred Shares and Warrants, as amended from time to time.

 

(oo) “Standard
Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the principal securities
exchange or securities market on which the Common Stock is then traded as in effect on the date of delivery of the applicable
Conversion Notice.

 

    	 	-35-	 

    	 

    

 

(pp) “Stated
Value” means $1,000 per Series G Preferred Share.

 

(qq) “Subject
Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(rr) “Subscription
Date” means November 13, 2019.

 

(ss) “Subsidiary”
has the meaning ascribed to such term in the Securities Purchase Agreement.

 

(tt) “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock on such day, then on the principal securities exchange or securities market on which
the Common Stock is then traded.

 

(uu) “Transaction
Documents” has the meaning ascribed to such term in the Securities Purchase Agreement.

 

(vv) “TRNF
Spin-Off” means the Company’s previously announced stock dividend to each holder of Common Stock of the Company
of five (5) shares of common stock of Taronis Fuels, Inc. for each share of Common Stock of the Company held by stockholders of
the Company from November 29, 2019 through and including the distribution date of such securities, currently contemplated to be
December 5, 2019.

 

(ww) “Underlying
Securities” means all Common Shares, all shares of Common Stock issued and issuable pursuant to the terms of this Certificate
of Designations and upon exercise of the Warrants (in each case, without giving effect to any limitation on conversion or exercise
set forth herein and in the Warrants).

 

(xx) “Warrants”
has the meaning ascribed to such term in the Securities Purchase Agreement, and shall include all warrants issued in exchange
therefor or replacement thereof.

 

*
* * * *

 

    	 	-36-	 

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Certificate of Designations to be signed by Scott Mahoney, its Chief Executive Officer,
as of the 13th day of November, 2019.

 

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

 

    	 	-37-	 

    	 

    

 

EXHIBIT
I

 

TARONIS
TECHNOLOGIES, INC.

 

CONVERSION
NOTICE

 

Reference
is made to the Certificate of Designations, Preferences and Rights of Series G Convertible Preferred Stock of Taronis Technologies,
Inc. (the “Certificate of Designations”). In accordance with and pursuant to the Certificate of Designations,
the undersigned hereby elects to convert the number of shares of Series G Convertible Preferred Stock, par value $0.001 per share
(the “Series G Preferred Shares”), of Taronis Technologies, Inc., a Delaware corporation (the “Company”),
indicated below into shares of Common Stock, par value $0.001 per share (the “Common Stock”), of the Company,
as of the date specified below.

 

Date
of Conversion: ________________________________________________________

 

Number
of Series G Preferred Shares to be converted or number of Conversion Shares to be issued upon conversion:: _____________________________________________________________________

 

Stock
certificate no(s). of Series G Preferred Shares to be converted:_________________

 

Tax
ID Number (If applicable): ______________________________________________

 

Please
confirm the following information: _____________________________________________

 

Conversion
Price:_________________________________________________________

 

Conversion
of Initial Unrestricted Amount: [  ]

 

Conversion
of Other Unrestricted Amount: [  ]

 

If
number of Series G Preferred Shares is provided above, number of shares of Common Stock to be issued: :_________________________________________________________

 

Percentage
of conversion to constitute Initial Unrestricted Amount: _________________

 

Percentage
of conversion to constitute Other Unrestricted Amount: _________________

 

Please
issue the Common Stock into which the Series G Preferred Shares are being converted to the Holder, or for its benefit, as follows:

 

    	 	-38-	 

    	 

    

 

[  ] Check
here if requesting delivery as a certificate to the following name and to the following address:

 

Issue
to:_________________________________________

_________________________________________

 

Address:
_________________________________________

 

Telephone
Number: ________________________________

 

Facsimile
Number and Electronic Mail: ________________

 

[  ] Check
here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

DTC
Participant: _________________________________________

 

DTC
Number: _________________________________________

 

Account
Number: ________________________________

 

Authorization:________________________________

 

	 	By: 	 	 
	 	Title:	 	 
	 	 	 	 
	 	Dated:	 	 

 

Account
Number (if electronic book entry transfer):________________________________

 

Transaction
Code Number (if electronic book entry transfer):_________________________

 

[NOTE
TO HOLDER — THIS FORM MUST BE SENT CONCURRENTLY TO TRANSFER AGENT]

 

    	 	-39-	 

    	 

    

 

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Conversion Notice and hereby directs Corporate Stock Transfer, Inc. to issue the above indicated
number of shares of Common Stock in accordance with the Irrevocable Transfer Agent Instructions dated November 15, 2019 from the
Company and acknowledged and agreed to by Corporate Stock Transfer, Inc.

 

	 	TARONIS
    TECHNOLOGIES, INC.

 

	 	By:	 
	 	Name:	 
	 	Title:Form
of SPA

 

SECURITIES
PURCHASE AGREEMENT

 

SECURITIES
PURCHASE AGREEMENT (this “Agreement”), dated as of November 13, 2019, by and among Taronis Technologies,
Inc., a Delaware corporation (the “Company”), and the investors listed on the Schedule of Buyers attached hereto
(individually, a “Buyer” and collectively, the “Buyers”).

 

WHEREAS:

 

A.
The Company and the Buyers desire to enter into this transaction to purchase the Common Shares (as defined below), Preferred Shares
(as defined below) and Warrants (as defined below) pursuant to the Registration Statement (as defined below) which is currently
effective, has at least $92,000,000 of initial offering price of unallocated securities available for sale as of the date hereof
and has been declared effective in accordance with the Securities Act of 1933, as amended (the “1933 Act”),
by the United States Securities and Exchange Commission (the “SEC”).

 

B.
The Company has authorized (i) that aggregate number of shares of the Company’s shares of common stock, par value $0.001
per share (the “Common Stock”), set forth opposite such Buyer’s name in column (3) of the Schedule of
Buyers attached hereto (which aggregate number for all Buyers together shall be 2,097,496 shares of Common Stock and shall collectively
be referred to herein as the “Common Shares”), (ii) a new series of convertible preferred stock of the Company
designated as Series G Convertible Preferred Stock (together with any convertible preferred shares issued in replacement thereof
in accordance with the terms thereof, the “Preferred Shares”), the terms of which are set forth in the certificate
of designations for such series of preferred stock, in the form attached hereto as Exhibit A (the “Certificate
of Designations”), which Preferred Shares shall be convertible into Common Stock, in accordance with the terms of the
Certificate of Designations (all shares of Common Stock issued or issuable pursuant to the terms of the Certificate of Designations,
including, without limitation, upon conversion or otherwise, collectively, the “Conversion Shares”), which
Conversion Shares shall be issued pursuant to the Registration Statement or, if such Registration Statement is not available at
the time of issuance of such Conversion Shares, as securities exempt from registration pursuant to Section 3(a)(9) of the 1933
Act and (iii) warrants, in the form attached hereto as Exhibit B (the “Warrants”), which Warrants shall
be exercisable into shares of Common Stock (such shares issuable upon exercise of the Warrants, collectively, the “Warrant
Shares”).

 

C.
The Common Shares, the Preferred Shares, the Conversion Shares, the Warrants and the Warrant Shares are collectively referred
to herein as the “Securities.”

 

    	 	 	 

    	 

    

 

NOW,
THEREFORE, the Company and each Buyer hereby agree as follows:

 

1.
PURCHASE AND SALE OF COMMON SHARES, PREFERRED SHARES AND WARRANTS.

 

(a)
Purchase of Common Shares, Preferred Shares and Warrants. Subject to the satisfaction (or waiver) of the conditions set
forth in Sections 6 and 7 below, the Company shall issue and sell to each Buyer, and each Buyer, severally, but not jointly, agrees
to purchase from the Company on the Closing Date (as defined below), (i) that aggregate number of Common Shares as is set forth
opposite such Buyer’s name in column (3) of the Schedule of Buyers attached hereto, (ii) that aggregate number of Preferred
Shares as is forth opposite such Buyer’s name in column (4) of the Schedule of Buyers attached hereto, and (iii) Warrants
representing the right to acquire up to that number of Warrant Shares as is set forth opposite such Buyer’s name in column
(5) of the Schedule of Buyers attached hereto (the “Closing”).

 

(b)
Purchase Price. The aggregate purchase price for the Common Shares, the Preferred Shares and the Warrants shall be such
amount as set forth opposite such Buyer’s name in column (6) of the schedule of Buyers attached hereto (less, in the case
of Empery Debt Opportunity Fund, LP (the “Lead Investor”), any amounts withheld pursuant to Section 4(f)) (the
“Purchase Price”). Each Buyer shall pay $850 for each Preferred Share and related Common Shares and Warrants
to be purchased by such Buyer at the Closing.

 

(c)
Closing Date. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., New York City
time, on the date hereof (or such other date and time as is mutually agreed to by the Company and each Buyer) after notification
of satisfaction (or waiver) of the conditions to the Closing set forth in Sections 6 and 7 below at the offices of Schulte Roth
& Zabel LLP, 919 Third Avenue, New York, New York 10022. The Closing may also be undertaken remotely by electronic transfer
of Closing documentation.

 

(d)
Form of Payment. On the Closing Date, (i) each Buyer shall acquire the Common Shares, the Preferred Shares and the Warrants
by paying its respective Purchase Price (less, in the case of the Lead Investor, any amounts withheld pursuant to Section 4(f))
to the Company by wire transfer of immediately available funds in accordance with the Wire Instructions (as defined below) and
(ii) the Company shall deliver to each Buyer: (x) via The Depository Trust Company Deposit / Withdrawal at Custodian system (“DWAC”),
the number of Common Shares as is set forth opposite such Buyer’s name in column (3) of the Schedule of Buyer attached hereto
pursuant to DWAC instructions delivered by such Buyer in writing to the Company, (y) the Preferred Shares (allocated in the amounts
as such Buyer shall request) as is set forth opposite such Buyer’s name in column (4) of the Schedule of Buyer attached
hereto, duly executed on behalf of the Company and registered in the name of such Buyer or its designee and (z) the Warrants (allocated
in the principal amounts as such Buyer shall request) which such Buyer is then purchasing hereunder pursuant to which such Buyer
shall have the right to acquire such number of Warrant Shares as is set forth opposite such Buyer’s name in column (5) of
the Schedule of Buyers attached hereto, duly executed on behalf of the Company and registered in the name of such Buyer or its
designee.

 

2.
BUYER’S REPRESENTATIONS AND WARRANTIES. Each Buyer, severally and
not jointly, represents and warrants with respect to only itself that, as of the date hereof and as of the Closing Date:

 

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

 

    	 	2	 

    	 

    

 

(b)
No Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the consummation by such Buyer
of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Buyer, (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 such Buyer 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 such Buyer, 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 such Buyer to perform its obligations hereunder.

 

(c)
No Short Selling. Each Buyer represents and warrants to the Company that at no time from the time that such Buyer was notified
as to the transactions contemplated by this Agreement has such Buyer, its agents, representatives or affiliates engaged in or
effected, in any manner whatsoever, directly or indirectly, any (i) “short sale” (as such term is defined in Rule
200 of Regulation SHO of the 1934 Act) of the Company’s Common Stock or (ii) hedging transaction, which establishes a net
short position with respect to the Company’s Common Stock. Each Buyer covenants and agrees that from the date here through
the Closing, that such Buyer will not take any of the actions set forth in the prior sentence.

 

The
Company acknowledges and agrees that each Buyer does not make or has not made any representations or warranties with respect to
the transactions contemplated hereby other than those specifically set forth in this Section 2.

 3.
                                         REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
                                         The Company represents and warrants to each of the Buyers that, as of the date
                                         hereof and as of the Closing Date:

 

(a)
Shelf Registration Statement.

 

(i)
The Company has prepared and filed in conformity with the requirements of the 1933 Act and the published rules and regulations
thereunder (the “Rules and Regulations”) adopted by the SEC a “shelf” registration statement on
Form S-3 (No. 333-230854), which became effective on April 24, 2019, including a base prospectus (the “Base Prospectus”)
relating to Common Stock, preferred stock, warrants, rights or units of the Company that may be sold from time to time by the
Company, in accordance with Rule 415 of the 1933 Act, and such amendments, including post-effective amendments, thereof as may
have been required to the date of this Agreement. The term “Registration Statement” as used in this Agreement
means such registration statement, including all exhibits, financial schedules and all documents and information deemed to be
part of the Registration Statement by incorporation by reference or otherwise, as amended from time to time, including the information
(if any) contained in the form of final prospectus filed with the SEC pursuant to Rule 424(b) of the Rules and Regulations and
deemed to be part thereof at the time of effectiveness pursuant to Rules 430A and 430B of the Rules and Regulations. The term
“Preliminary Prospectus” means the Base Prospectus, together with any preliminary prospectus supplement used
or filed with the SEC pursuant to Rule 424 of the Rules and Regulations. The term “Prospectus” means the Base
Prospectus, any Preliminary Prospectus and any amendments or further supplements to such prospectus filed with the SEC, and including,
without limitation, the final prospectus supplement (the “Prospectus Supplement”), filed pursuant to and within
the limits described in Rule 424(b) with the SEC in connection with the proposed sale of the Securities contemplated by this Agreement
through the date of such Prospectus Supplement. Unless otherwise stated herein, any reference herein to the Registration Statement,
any Preliminary Prospectus, the Statutory Prospectus (as defined below) and the Prospectus shall be deemed to refer to and include
the documents incorporated by reference therein, including pursuant to Item 12 of Form S-3 under the 1933 Act, which were filed
under the Securities Exchange Act of 1934, as amended (the “1934 Act”), on or before the date hereof or are
so filed hereafter. Any reference herein to the terms “amend,” “amendment” or “supplement”
with respect to the Registration Statement any Preliminary Prospectus, the Statutory Prospectus or the Prospectus shall be deemed
to refer to and include any such document filed or to be filed under the 1934 Act after the date of the Registration Statement,
any such Preliminary Prospectus, the Statutory Prospectus or Prospectus, as the case may be, and deemed to be incorporated therein
by reference.

 

    	 	3	 

    	 

    

 

(ii)
The Company was at the time of the filing of the Registration Statement eligible to use Form S-3. As of the date of this Agreement,
the Company is eligible to use Form S-3 under the 1933 Act and it meets the transaction requirements with respect to the aggregate
market value of securities being sold pursuant to this offering in accordance with General Instruction I.B.1 of Form S-3. The
Company filed with the SEC the Registration Statement on such Form S-3, including a Base Prospectus, for registration under the
1933 Act of the offering and sale of the Securities, and the Company has prepared and used a Preliminary Prospectus in connection
with the offer and sale of the Securities. When the Registration Statement or any amendment thereof or supplement thereto was
or is declared effective and as of the date of the most recent amendment to the Registration Statement, it (i) complied or will
comply, in all material respects, with the requirements of the 1933 Act and the Rules and Regulations and the 1934 Act and the
rules and regulations of the SEC thereunder and (ii) did not or will not, contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary in order to make the statements therein not misleading.
When any Preliminary Prospectus or Prospectus was first filed with the SEC (whether filed as part of the Registration Statement
or any amendment thereto or pursuant to Rule 424 of the Rules) and when any amendment thereof or supplement thereto was first
filed with the SEC, such Preliminary Prospectus or Prospectus as amended or supplemented complied in all material respects with
the applicable provisions of the 1933 Act and the Rules and Regulations and did not or will not, contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements
therein not misleading. Notwithstanding the forgoing, the Company makes no representations or warranties as to information contained
in or omitted from any Preliminary Prospectus or Prospectus, in reliance upon, and in conformity with, written information furnished
to the Company by or on behalf of the Buyers, specifically for use therein.

 

    	 	4	 

    	 

    

 

(b)
Prospectus. As of the Applicable Time (as defined below) and as of the Closing Date, neither (x) the General Use Free Writing
Prospectus(es) (as defined below) issued at or prior to the Applicable Time, the Statutory Prospectus, all considered together
(collectively, the “General Disclosure Package”), nor (y) any individual Limited Use Free Writing Prospectus
(as defined below), when considered together with the General Disclosure Package, included, includes or will include any untrue
statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. As used in this subsection and elsewhere
in this Agreement:

 

(i)
“Applicable Time” means 9:00 AM (New York time) on the date of this Agreement or such other time as agreed
to by the Company and the Buyers.

 

(ii)
“Statutory Prospectus” as of any time means the Preliminary Prospectus included in the Registration Statement
immediately prior to that time.

 

(iii)
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule
433 under the 1933 Act, relating to the Securities in the form filed or required to be filed with the SEC or, if not required
to be filed, in the form retained in the Company’s records pursuant to Rule 433(g) under the 1933 Act.

 

(iv)
“General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is identified on Schedule
I hereto.

 

(v)
“Limited Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is not a General Use Free
Writing Prospectus.

 

(c)
Organization. The Company has been duly organized and is validly existing as a corporation in good standing under the laws
of the State of Delaware, with corporate power and authority to own or lease its properties and conduct its business as described
in the Registration Statement, the General Disclosure Package and the Prospectus. The Company has no subsidiaries (which for purposes
of this Agreement means any entity in which the Company, directly or indirectly, owns any of the capital stock or holds an equity
or similar interest) other than as set forth on Schedule 3(c) hereto (collectively, the “Subsidiaries”).
Each of the Subsidiaries has been duly organized and is validly existing as an entity in good standing under the laws of the jurisdiction
of its organization, with corporate power and authority to own or lease its properties and conduct its business as described in
the Registration Statement, the General Disclosure Package and the Prospectus. The Subsidiaries are the only subsidiaries, direct
or indirect, of the Company. The Company and each of the Subsidiaries are duly qualified to transact business in all jurisdictions
in which the conduct of their business requires such qualification, except where the failure to be so qualified would not reasonably
be expected to result in any material adverse effect on, or any development that would reasonably be expected to result in a material
adverse effect, in or affecting (i) the business, properties, assets, liabilities, operations, results of operations, condition
(financial or otherwise) or prospects of the Company and of the Subsidiaries, individually or taken as a whole, whether or not
occurring in the ordinary course of business, or (ii) on the transactions contemplated hereby or the other Transaction Documents
(as defined below) or by the agreements and instruments to be entered into in connection herewith or therewith, or (iii) on the
authority or ability of the Company to perform its obligations under the Transaction Documents or (iv) on the legality, validity,
binding effect or enforceability of any of the Transaction Documents (collectively a “Material Adverse Effect”).
The outstanding shares of capital stock of each of the Subsidiaries have been duly authorized and validly issued, are fully paid
and non-assessable and are owned by the Company or another Subsidiary free and clear of all liens, encumbrances and equities and
claims, except as described in the Registration Statement; and no options, warrants or other rights to purchase, agreements or
other obligations to issue or other rights to convert any obligations into shares of capital stock or ownership interests in the
Subsidiaries are outstanding.

 

    	 	5	 

    	 

    

 

(d)
Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and perform
its obligations under this Agreement, the Certificate of Designations, the Warrants, the Irrevocable Transfer Agent Instructions
(as defined in Section 5(b)), the Lock-Up Agreements (as defined in Section 7(xvi)) and each of the other agreements entered into
by the parties hereto in connection with the transactions contemplated by this Agreement (collectively, the “Transaction
Documents”) and to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery
of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby,
including, without limitation, the issuance of the Common Shares, the Preferred Shares and the Warrants, the reservation for issuance
and the issuance of the Conversion Shares issuable pursuant to the terms of the Certificate of Designations, and the reservation
for issuance and the issuance of the Warrant Shares issuable upon exercise of the Warrants have been duly authorized by the Company’s
Board of Directors, and no further filing, consent, or authorization is required by the Company’s Board of Directors or
its stockholders. This Agreement and the other Transaction 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. The Certificate of Designations has been filed with the Secretary of State of the State of Delaware and is in full
force and effect, enforceable against the Company in accordance with its terms and has not been amended.

 

(e)
Issuance of Securities. The outstanding shares of Common Stock of the Company have been duly authorized and validly issued
and are fully paid and non-assessable; the Securities to be issued and sold by the Company have been duly authorized and when
issued and paid for as contemplated herein in accordance with the terms of the Transaction Documents will be free from all taxes,
liens and charges with respect to the issue thereof, validly issued, fully paid and non-assessable; and no preemptive rights of
stockholders exist with respect to any of the Securities or the issue and sale thereof. As of the Closing, a number of shares
of Common Stock shall have been duly authorized and reserved for issuance which equals or exceeds (the “Required Reserve
Amount”) the sum of (i) 100% of the maximum number of shares of Common Stock necessary to effect the conversion at the
Conversion Rate (as defined in the Certificate of Designations) (without regard to any limitations herein on any such conversion)
with respect to the Conversion Amount (as defined in the Certificate of Designations) of each Preferred Share and (ii) 100% of
the maximum number of Warrant Shares issuable upon exercise of the Warrants, each as of the Trading Day (as defined in the Warrants)
immediately preceding the applicable date of determination (without taking into account any limitations on the exercise of the
Warrants set forth in the Warrants). As of the date hereof, there are 169,795,935 shares of Common Stock authorized and unissued.
Neither the filing of the Registration Statement nor the offering or sale of the Securities as contemplated by this Agreement
gives rise to any rights, other than those which have been waived or satisfied, for or relating to the registration of any shares
of Common Stock. Upon issuance pursuant to the terms of the Certificate of Designations or exercise in accordance with the Warrants,
as the case may be, the Conversion Shares and the Warrant Shares, respectively, will be validly issued, fully paid and nonassessable
and free from all preemptive or similar rights, taxes, liens and charges with respect to the issue thereof, with the holders being
entitled to all rights accorded to a holder of Common Stock.

 

    	 	6	 

    	 

    

 

(f)
Equity Capitalization. As of the date hereof and as of the Closing Date, the Company has or will have, as the case may
be, an authorized, issued and outstanding capitalization as is set forth in the Registration Statement and the Prospectus (subject,
in each case, to the issuance of shares of Common Stock upon exercise of stock options and warrants disclosed as outstanding in
the Registration Statement and the Prospectus and the grant or issuance of options or shares under existing equity compensation
plans or stock purchase plans described in the Registration Statement or the Prospectus), and such authorized capital stock conforms
to the description thereof set forth in the Registration Statement and the Prospectus. All of the Securities conform to the description
thereof contained in the Registration Statement and the Prospectus. The form of certificates for the Common Shares, the Preferred
Shares, the Conversion Shares, the Warrants and the Warrant Shares, as applicable, will conform to the corporate law of the jurisdiction
of the Company’s incorporation. As of the date hereof, the authorized capital stock of the Company consists of (1) 190,000,000
shares of Common Stock, of which as of the date hereof, 20,204,065 shares are issued and outstanding, no shares are reserved for
issuance pursuant to the Company’s stock option and purchase plans and 2,568,940 shares are reserved for issuance pursuant
to securities (other than the aforementioned Preferred Shares and Warrants) exercisable or exchangeable for, or convertible into,
Common Stock, (2) 10,000,000 shares of preferred stock, par value $0.001 per share, none of which are issued and outstanding as
of the date hereof and (3) there are 1,433,376 shares of Common Stock held by non-affiliates of the Company. All of such outstanding
shares have been, or upon issuance will be, validly issued and are fully paid and nonassessable. Except as disclosed on Schedule
3(f) hereto, (i) none of the Company’s capital stock is subject to preemptive rights or any other similar rights or
any liens or encumbrances suffered or permitted by the Company; (ii) there are no outstanding options, warrants, scrip, rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable
or exchangeable for, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock
of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock
of the Company or any of its Subsidiaries; (iii) there are no material outstanding debt securities, notes, credit agreements,
credit facilities or other agreements, documents or instruments evidencing Indebtedness (as defined in the Certificate of Designations)
of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv) there
are no financing statements securing obligations in any material amounts, either singly or in the aggregate, filed in connection
with the Company or any of its Subsidiaries; (v) there are no agreements or arrangements under which the Company or any of its
Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act; (vi) there are no outstanding securities
or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no
contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound
to redeem a security of the Company or any of its Subsidiaries; (vii) there are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by the issuance of the Securities; (viii) the Company does not have any stock appreciation
rights or “phantom stock” plans or agreements or any similar plan or agreement; and (ix) the Company and its Subsidiaries
have no liabilities or obligations required to be disclosed in the SEC Documents (as defined in Section 3(ww)) but not so disclosed
in the SEC Documents, other than those incurred in the ordinary course of the Company’s or any of its Subsidiary’s
respective businesses and which, individually or in the aggregate, do not or would not have a Material Adverse Effect. Schedule
3(f) set forth the material terms of any outstanding warrants of the Company, including, without limitation, the exercise
price, put rights or other special features and expiration date thereof.

 

    	 	7	 

    	 

    

 

(g)
Disclosure.

 

(i)
The SEC has not issued an order preventing or suspending the use of any Preliminary Prospectus, any Issuer Free Writing Prospectus
or the Prospectus relating to the proposed offering of the Securities, and no proceeding for that purpose or pursuant to Section
8A of the 1933 Act has been instituted or, to the Company’s knowledge, threatened by the SEC. The Registration Statement
conforms, and the Prospectus and any amendments or supplements thereto will conform to the requirements of the 1933 Act and the
Rules and Regulations. The documents incorporated, or to be incorporated, by reference in the Prospectus, at the time filed with
the SEC conformed in all material respects, or will conform in all respects, to the requirements of the 1934 Act, or the 1933
Act, as applicable, and the Rules and Regulations. The Registration Statement and any amendments and supplements thereto do not
contain, and on the Closing Date will not contain, any untrue statement of a material fact and do not omit, and on the Closing
Date will not omit, to state a material fact required to be stated therein or necessary to make the statements therein not misleading.
The Prospectus and any amendments and supplements thereto do not contain, and on the Closing Date will not contain, any untrue
statement of a material fact; and do not omit, and on the Closing Date will not omit, to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(ii)
Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through the completion of the public offer
and sale of the Securities or until any earlier date that the Company notified or notifies the Buyers as described in the next
sentence, did not, does not and will not include any information that conflicted, conflicts or will conflict with the information
contained in the Registration Statement or the Prospectus, including any document incorporated by reference therein that has not
been superseded or modified. If at any time following issuance of an Issuer Free Writing Prospectus, there occurred or occurs
an event or development as a result of which such Issuer Free Writing Prospectus included or would include an untrue statement
of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in light
of the circumstances, not misleading, the Company has notified or will notify promptly the Buyers so that any use of such Issuer
Free Writing Prospectus may cease until it is amended or supplemented.

 

    	 	8	 

    	 

    

 

(iii)
The Company confirms that neither it nor any other Person acting on its behalf has provided any of the Buyers or their agents
or counsel with any information that constitutes or would reasonably be expected to constitute material, nonpublic information
concerning the Company or any of its Subsidiaries that will not be included in the 8-K Filing (as defined in Section 4(j)). The
Company understands and confirms that each of the Buyers will rely on the foregoing representations in effecting transactions
in securities of the Company. All disclosure provided to the Buyers regarding the Company or any of its Subsidiaries, their business
and the transactions contemplated hereby, including the Schedules to this Agreement, furnished by or on behalf of the Company
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. All of the written information furnished
after the date hereof by or on behalf of the Company or any of its Subsidiaries to the Buyers pursuant to or in connection with
this Agreement and the other Transaction Documents, taken as a whole, will be true and correct in all material respects as of
the date on which such information is so provided and will 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 are
made, not misleading. Except as set forth on Schedule 3(g), each press release issued by the Company or any of its Subsidiaries
during the twelve (12) months preceding the date hereof did not at the time of release contain any untrue statement of material
fact or omit to state a material fact required to be stated therein or necessary in order to make such statements therein, in
the light of the circumstances in 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, liabilities, prospects, operations
(including results thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires
public disclosure at or prior to the date hereof or announcement by the Company but which has not been so publicly announced or
disclosed. The Company does not have any agreement or understanding with any Buyer with respect to the transactions contemplated
by the Transaction Documents other than as specified in the Transaction Documents. For purposes of this Agreement, “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and any government or any department or agency thereof.

 

(h)
Offering Materials. The Company has not, directly or indirectly, distributed and will not distribute any offering material
in connection with the offering and sale of the Securities other than any Preliminary Prospectus, the Prospectus, any Issuer Free
Writing Prospectus and other materials, if any, permitted under the 1933 Act. The Company will file with the SEC all Issuer Free
Writing Prospectuses in the time required under Rule 433(d) under the 1933 Act. The Company has satisfied or will satisfy the
conditions in Rule 433 under the 1933 Act to avoid a requirement to file with the SEC any electronic road show.

 

(i)
Ineligible Issuer Status. At the time of filing the Registration Statement and as of the date hereof, the Company was not
and is not an “ineligible issuer” (as defined in Rule 405 under the 1933 Act, without taking into account any determination
by the SEC pursuant to Rule 405 under the 1933 Act that it is not necessary that the Company be considered an ineligible issuer),
including, without limitation, for purposes of Rules 164 and 433 under the 1933 Act with respect to the offering of the Securities
as contemplated by the Registration Statement.

 

    	 	9	 

    	 

    

 

(j)
Financial Statements. The consolidated financial statements of the Company and the Subsidiaries, together with related
notes and schedules as set forth or incorporated by reference in the Registration Statement, the General Disclosure Package and
the Prospectus, present fairly in all material respects the financial position of the Company and the consolidated Subsidiaries
and the results of operations and cash flows of the Company and the consolidated Subsidiaries, at the indicated dates and for
the indicated periods. Such consolidated financial statements and related schedules have been prepared in accordance with United
States generally accepted accounting principles consistently applied throughout the periods involved (“GAAP”),
except as disclosed therein, and all adjustments necessary for a fair presentation of results for such periods have been made.
The summary and selected consolidated financial and statistical data included or incorporated by reference in the Registration
Statement, the General Disclosure Package and the Prospectus presents fairly in all material respects the information shown therein,
at the indicated dates and for the indicated periods, and such data has been compiled on a basis consistent with the financial
statements presented therein and the books and records of the Company. All disclosures, if any, contained in the Registration
Statement, the General Disclosure Package and the Prospectus regarding “non-GAAP financial measures” (as such term
is defined by the Rules and Regulations) comply in all material respects with Regulation G of the 1934 Act and Item 10 of Regulation
S-K under the 1933 Act, to the extent applicable. The Company and the Subsidiaries do not have any material liabilities or obligations,
direct or contingent (including any off-balance sheet obligations or any “variable interest entities” within the meaning
of Financial Accounting Standards Board Interpretation No. 46), not disclosed in the Registration Statement, the General Disclosure
Package and the Prospectus. There are no financial statements (historical or pro forma) that are required to be included in the
Registration Statement, the General Disclosure Package or the Prospectus that are not included as required.

 

(k)
Accountants. Marcum LLP, who has certified certain of the financial statements filed with the SEC as part of, or incorporated
by reference in, the Registration Statement, the General Disclosure Package and the Prospectus, has represented to the Company
that it is an independent registered public accounting firm with respect to the Company and the Subsidiaries within the meaning
of the 1933 Act and the applicable Rules and Regulations and the Public Company Accounting Oversight Board (United States).

 

(l)
Weaknesses or Changes in Internal Accounting Controls. Except as set forth on Schedule 3(l), neither the Company
nor any of the Subsidiaries is aware of (i) any material weakness in its internal control over financial reporting or (ii) change
in internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.

 

(m)
Sarbanes-Oxley. Solely to the extent that the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated
by the SEC and The Nasdaq Capital Market (the “Principal Market”), if applicable, thereunder (collectively,
the “Sarbanes-Oxley Act”) has been applicable to the Company, there is and has been no failure on the part
of the Company to comply in all respects with any provision of the Sarbanes-Oxley Act. The Company has taken all necessary actions
to ensure that it is in compliance in all respects with all provisions of the Sarbanes-Oxley Act that are in effect with respect
to which the Company is required to comply and is actively taking steps to ensure that it will be in compliance with the other
provisions of the Sarbanes-Oxley Act which will become applicable to the Company.

 

    	 	10	 

    	 

    

 

(n)
Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by the Principal Market,
any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company,
threatened against or affecting the Company or any of its Subsidiaries, the Common Stock or any of the Company’s Subsidiaries
or any of the Company’s or its Subsidiaries’ officers or directors, whether of a civil or criminal nature or otherwise,
in their capacities as such, except as set forth in Schedule 3(n). The matters set forth in Schedule 3(n) would
not reasonably be expected to have a Material Adverse Effect.

 

(o)
Title. The Company and the Subsidiaries have good and marketable title to all of the material properties and assets reflected
in the consolidated financial statements hereinabove described or described in the Registration Statement, the General Disclosure
Package and the Prospectus, subject to no lien, mortgage, pledge, charge or encumbrance of any kind except those reflected in
such financial statements or described in the Registration Statement, the General Disclosure Package and the Prospectus or which
are not material in amount or would not materially interfere with the use to be made of such properties or assets. The Company
and the Subsidiaries occupy their leased properties under valid and binding leases conforming in all material respects to the
description thereof set forth in the Registration Statement, the General Disclosure Package and the Prospectus.

 

(p)
Tax Status. The Company and each of its Subsidiaries (i) has timely made or filed all foreign, federal and state income
and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid
all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns,
reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably
adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers
of the Company and its Subsidiaries know of no basis for any such claim.

 

(q)
Absence of Certain Changes. Except as disclosed in Schedule 3(q), since December 31, 2018, neither the Company nor
any of its Subsidiaries has, (i) declared or paid any dividends, (ii) sold any assets, individually or in the aggregate, in excess
of $100,000 or (iii) had capital expenditures, individually or in the aggregate, in excess of $100,000. The Company and the Subsidiaries
have no material contingent obligations which are not disclosed in the Company’s consolidated financial statements which
are included in the Registration Statement, the General Disclosure Package and the Prospectus. Neither
the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any bankruptcy law nor does the Company
have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings or any actual
knowledge of any fact that would reasonably lead a creditor to do so. The Company and its Subsidiaries, individually and on a
consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at
the Closing, will not be Insolvent (as defined below). For purposes of this Agreement, (x) “Insolvent” means,
with respect to any Person, (i) the present fair saleable value of such Person’s assets is less than the amount required
to pay such Person’s total Indebtedness, (ii) such Person is unable to pay its debts and liabilities, subordinated, contingent
or otherwise, as such debts and liabilities become absolute and matured, (iii) such Person intends to incur or believes that it
will incur debts that would be beyond its ability to pay as such debts mature or (iv) such Person has unreasonably small capital
with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted.

 

    	 	11	 

    	 

    

 

(r)
No Conflicts. Neither the Company nor any of the Subsidiaries is, or with the giving of notice or lapse of time or both,
will be after giving effect to the execution, delivery and performance of the Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Securities),
(i) in violation of its certificate of incorporation, bylaws, any certificate of designations or other organizational documents
or (ii) in violation of or in default (or an event which with notice or lapse of time or both would become a default) in any respect
under, or give to others any rights of termination, amendment, acceleration or cancellation of under any agreement, indenture,
mortgage, deed of trust, lease, contract, indenture or other agreement or instrument or obligation to which the Company or any
Subsidiary is a party or by which the Company or any Subsidiary, or any of their respective properties, is bound or (iii) in violation
of any law, rule, regulation, order, judgment, writ or decree of any court or of any government, regulatory body or administrative
agency or other governmental body having jurisdiction (including U.S. federal and state securities laws and regulations and the
rules and regulations of 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, and, solely with respect to clauses (ii) and (iii), which
violation, conflict, breach or default, individually or in the aggregate, would have a Material Adverse Effect.

 

(s)
Contracts. There is no document, contract or other agreement required to be described in the Registration Statement or
Prospectus or to be filed as an exhibit to the Registration Statement which is not described or filed as required by the 1933
Act or the Rules and Regulations. Each description of a contract, document or other agreement in the Registration Statement and
the Prospectus accurately reflects in all material respects the terms of the underlying contract, document or other agreement.
Each contract, document or other agreement described in the Registration Statement and Prospectus or listed in the exhibits to
the Registration Statement or incorporated by reference is in full force and effect and is valid and enforceable by and against
the Company in accordance with its terms (except as rights to indemnity and contribution thereunder may be limited by federal
or state securities laws and matter of public policy and except as the enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by general
equitable principle). Neither the Company nor any of its Subsidiaries nor, to the Company’s knowledge, any other party is
in default in the observance or performance of any term or obligation to be performed by it under any such agreement or any other
agreement or instrument to which the Company or its Subsidiaries is a party or by which the Company or its Subsidiaries or their
respective properties or businesses may be bound, and no event has occurred which with notice or lapse of time or both would constitute
such a default, in any such case in which the default or event, individually or in the aggregate, would have a Material Adverse
Effect.

 

(t)
Regulatory Approvals. Each approval, consent, order, authorization, designation, declaration or filing by or with any regulatory,
administrative or other governmental body necessary in connection with the execution and delivery by the Company of this Agreement
and the consummation of the transactions herein contemplated (except such additional steps as may be required by the SEC, the
Financial Industry Regulatory Authority, Inc. (FINRA) or such additional steps as may be required under state securities or Blue
Sky laws) has been obtained or made and is in full force and effect.

 

    	 	12	 

    	 

    

 

(u)
Conduct of Business. Neither the Company nor any of its Subsidiaries is in violation of any term of or in default under
the certificate of incorporation of the Company (“Certificate of Incorporation”), bylaws of the Company (the
“Bylaws”), any certificate of designations, preferences or rights of any other outstanding series of preferred
stock of the Company or any of its Subsidiaries or their organizational charter, certificate of formation or certificate of incorporation
or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any
statute, ordinance, rule or regulation applicable to the Company or its Subsidiaries and neither the Company nor any of its Subsidiaries
will conduct its business in violation of any of the foregoing, except in all cases for possible violations which could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has satisfied all eligibility requirements
necessary to enable its Common Stock to be listed or quoted on one or more Eligible Markets (as defined in the Warrants). During
the two (2) years prior to the date hereof, (i) the Common Stock has been listed or designated for quotation on the Principal
Market or another Eligible Market and (ii) trading in the Common Stock has not been suspended by the SEC or the Principal Market.
The Company and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state
or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates,
authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company
nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate,
authorization or permit. Without limiting the generality of the foregoing, neither the Company not any of its Subsidiaries is
in violation of any of the rules, regulations or requirements of the Principal Market and has no knowledge of any facts or circumstances
that would reasonably lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable future.

 

(v)
Permits; Intellectual Property. Except as described in the Registration Statement or in any document incorporated by reference
therein, the Company and each of the Subsidiaries hold all material licenses, certificates and permits from governmental authorities
which are necessary to the conduct of their businesses in the manner in which they are being conducted; the Company and the Subsidiaries
each own or possess the right to use all patents, patent rights, trademarks, trade names, service marks, service names, copyrights,
know-how, license rights (including trade secrets and other unpatented and unpatentable proprietary or confidential information,
systems or procedures) and other intellectual property or proprietary rights (“Intellectual Property”) necessary
to carry on their business in all material respects in the manner in which it is being conducted; none of the Company’s
or its Subsidiaries’ Intellectual Property have expired, terminated or been abandoned, or are expected to expire, terminate
or be abandoned, within three years from the date of this Agreement. The Company has taken all steps reasonably necessary to secure
ownership interests in Intellectual Property created for it by any contractors. There are no outstanding options, licenses or
agreements of any kind relating to the Intellectual Property of the Company or its Subsidiaries that are required to be described
in the Registration Statement, the General Disclosure Package and the Prospectus and are not described therein in all material
respects. Neither the Company nor any of its Subsidiaries is a party to or bound by any options, licenses or agreements with respect
to the Intellectual Property of any other person or entity that are required to be set forth in the General Disclosure Package
and are not described therein in all material respects. None of the Intellectual Property used by the Company or any of its Subsidiaries
and material to their businesses has been obtained or is being used by the Company or any of its Subsidiaries in violation of
any contractual obligation binding on the Company or any of its Subsidiaries or, to the Company’s knowledge, any of the
Company’s or any of its Subsidiaries’ officers, directors or employees or, to the Company’s knowledge, otherwise
in violation of the rights of any Persons; neither the Company nor any of its Subsidiaries has infringed or conflicted with any
Intellectual Property of any Person; the Company has not received any written or oral communications alleging that the Company
or any of its Subsidiaries has violated, infringed or conflicted with, or, by conducting their businesses as set forth in the
Registration Statement, the General Disclosure Package and the Prospectus, would violate, infringe or conflict with, any of the
Intellectual Property of any other person or entity. The Company knows of no infringement or other violation by others of Intellectual
Property owned by or licensed to the Company. The Company and each of its Subsidiaries have taken reasonable security measures
to protect the secrecy, confidentiality and value of their trade secrets and other proprietary or confidential information.

 

    	 	13	 

    	 

    

 

(w)
Manipulation of Prices. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken or may take,
directly or indirectly, any action designed to cause or to result, or that would reasonably be expected to cause or result, in
the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities,
(ii) other than the Agent (as defined in Section 3(kk)), sold, bid for, purchased, or paid any compensation for soliciting purchases
of, any of the Securities, or (iii) other than the Agent, paid or agreed to pay to any person any compensation for soliciting
another to purchase any other securities of the Company.

 

(x)
Investment Company Act. Neither the Company nor any of its Subsidiaries is, and upon consummation of the sale of the Securities
will not be, an “investment company,” an affiliate of an “investment company,” a company controlled by
an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter”
for, an “investment company” as such terms are defined in the Investment Company Act of 1940, as amended.

 

(y)
Internal Accounting Controls. Except as set forth on Schedule 3(l):

 

(i)
The Company and each of the Subsidiaries maintains a system of internal accounting controls sufficient to provide reasonable assurances
that (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability
for assets and liabilities; (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets and liabilities is compared with existing assets
and liabilities at reasonable intervals and appropriate action is taken with respect to any differences.

 

    	 	14	 

    	 

    

 

(ii)
The Company has established and maintains “disclosure controls and procedures” (as defined in Rules 13a-15(e) and
15d-15(e) under the 1934 Act); the Company’s “disclosure controls and procedures” are effective in ensuring
that all information (both financial and non-financial) required to be disclosed by the Company in the reports that it files or
submits under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the rules and
forms of the SEC, including, without limitation, controls and procedures designed to ensure that information required to be disclosed
by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated to the Company’s
management, including its principal executive officer or officers and its principal financial officer or officers, as appropriate,
to allow timely decisions regarding required disclosure. During the twelve (12) months prior to the date hereof neither the Company
nor any of its Subsidiaries has received any notice or correspondence from any accountant relating to any material weakness in
any part of the system of internal accounting controls of the Company or any of its Subsidiaries.

 

(z)
Industry and Market Data. The statistical, industry-related and market-related data included in the Registration Statement,
the General Disclosure Package and the Prospectus are based on or derived from sources which the Company reasonably and in good
faith believes are reliable and accurate, and such data agree in all material respects with the sources from which they are derived.

 

(aa)
Compliance with Anti-Money Laundering Laws. The operations of the Company and its
Subsidiaries are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting
requirements and all other applicable U.S. and non-U.S. anti-money laundering laws, rules
and regulations, including, but not limited to, those of the Currency and Foreign Transactions Reporting Act of 1970, as amended,
the United States Bank Secrecy Act, as amended by the USA PATRIOT Act of 2001, and the United States Money Laundering Control
Act of 1986 (18 U.S.C. §§1956 and 1957), as amended, as well as the implementing
rules and regulations promulgated thereunder, and the applicable money laundering statutes of all applicable jurisdictions, the
rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced
by any governmental agency or self-regulatory body (collectively, the “Anti-Money Laundering Laws”), and no
action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company
or any of its Subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

    	 	15	 

    	 

    

 

(bb)
No Conflicts with Sanctions Laws. Neither the Company nor any of its Subsidiaries,
nor any director, officer, employee, agent, affiliate or other person associated with or acting on behalf of the Company or any
of its Subsidiaries or affiliates is, or is directly or indirectly owned or controlled by, a Person that is currently the subject
or the target of any sanctions administered or enforced by the U.S. government including, without limitation, the Office of Foreign
Assets Control of the U.S. Department of the Treasury (“OFAC”) or the U.S. Departments of State or Commerce
and including, without limitation, the designation as a “Specially Designated National” or on the “Sectoral
Sanctions Identifications List” (collectively, “Blocked Persons”), the United Nations Security Council,
the European Union, Her Majesty’s Treasury or any other relevant sanctions authority (collectively, “Sanctions
Laws”); neither the Company, any of its Subsidiaries, nor any director, officer, employee, agent, affiliate or other
person associated with or acting on behalf of the Company or any of its Subsidiaries or affiliates, is located, organized or resident
in a country or territory that is the subject or target of a comprehensive embargo or Sanctions Laws prohibiting trade with the
country or territory, including, without limitation, Crimea, Cuba, Iran, North Korea, Sudan and Syria (each, a “Sanctioned
Country”); the Company maintains in effect and enforces policies and procedures designed to ensure compliance
by the Company and its Subsidiaries with applicable Sanctions Laws; neither the Company,
any of its Subsidiaries, nor any director, officer, employee, agent, affiliate or other person associated with or acting on behalf
of the Company or any of its Subsidiaries or affiliates, acting in any capacity in connection with the operations of the Company,
conducts any business with or for the benefit of any Blocked Person or engages in making or receiving any contribution
of funds, goods or services to, from or for the benefit of any Blocked Person, or deals in, or otherwise engages in any transaction
relating to, any property or interests in property blocked or subject to blocking pursuant to any applicable Sanctions Laws; no
action of the Company or any of its Subsidiaries in connection with (i) the execution, delivery and performance of this Agreement
and the other Transaction Documents, (ii) the issuance and sale of the Securities, or (iii) the direct or indirect use of proceeds
from the Securities or the consummation of any other transaction contemplated hereby or by the other Transaction Documents or
the fulfillment of the terms hereof or thereof, will result in the proceeds of the transactions contemplated hereby and by the
other Transaction Documents being used, or loaned, contributed or otherwise made available, directly or indirectly, to any Subsidiary,
joint venture partner or other person or entity, for the purpose of (i) unlawfully funding or facilitating any activities of or
business with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions Laws, (ii) unlawfully
funding or facilitating any activities of or business in any Sanctioned Country or (iii) in any other manner that will result
in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor
or otherwise) of Sanctions Laws. For the past five (5) years, the Company and its Subsidiaries have not knowingly engaged in and
are not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is
or was the subject or the target of Sanctions Laws or with any Sanctioned Country.

 

(cc)
Anti-Bribery. Neither the Company nor any of the Subsidiaries has made any
contribution or other payment to any official of, or candidate for, any federal, state or foreign office in violation of any law
which violation is required to be disclosed in the Prospectus. Neither the Company, nor
any of its Subsidiaries or affiliates, nor any director, officer, agent, employee or other person associated with or acting on
behalf of the Company, or any of its Subsidiaries or affiliates, has (i) used any funds for any unlawful contribution, gift, entertainment
or other unlawful expense relating to political activity, (ii) made any direct or indirect unlawful payment to any foreign or
domestic government official or employee, to any employee or agent of a private entity with which the Company does or seeks to
do business or to foreign or domestic political parties or campaigns, (iii) violated or is in violation of any provision of any
applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions or any applicable provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”),
the U.K. Bribery Act 2010, or any other similar law of any other jurisdiction in which the Company operates its business, including,
in each case, the rules and regulations thereunder (the “Anti-Bribery Laws”), (iv) taken, is currently taking
or will take any action in furtherance of an offer, payment, gift or anything else of value, directly or indirectly, to any person
while knowing that all or some portion of the money or value will be offered, given or promised to anyone to improperly influence
official action, to obtain or retain business or otherwise to secure any improper advantage or (v) otherwise made any offer, bribe,
rebate, payoff, influence payment, unlawful kickback or other unlawful payment; the Company and each of its respective Subsidiaries
has instituted and has maintained, and will continue to maintain, policies and procedures reasonably designed to promote and achieve
compliance with the laws referred to in (iii) above and with this representation and warranty; none of the Company, nor any of
its Subsidiaries or affiliates will directly or indirectly use the proceeds of the convertible securities or lend, contribute
or otherwise make available such proceeds to any subsidiary, affiliate, joint venture partner or other person or entity for the
purpose of financing or facilitating any activity that would violate the laws and regulations referred to in (iii) above; there
are, and have been, no allegations, investigations or inquiries with regard to a potential violation of any Anti-Bribery Laws
by the Company, its Subsidiaries or affiliates, or any of their respective current or former directors, officers, employees,
stockholders, representatives or agents, or other persons acting or purporting to act on their behalf.

 

    	 	16	 

    	 

    

 

(dd)
Insurance. The Company and each of the Subsidiaries carry, or are covered by, insurance by insurers of recognized financial
responsibility in such amounts and covering such losses and risks as is adequate for the conduct of their respective businesses
and the value of their respective properties and as is customary for companies engaged in similar businesses. Neither the Company
nor any such Subsidiary has been refused any insurance coverage sought or applied for and neither the Company nor any such Subsidiary
has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers, in each case, as may be necessary to continue its business at a cost that,
individually or in the aggregate, do not or would not reasonably be expected to have a Material Adverse Effect.

 

(ee)
Employee Benefits. The Company and each Subsidiary is in compliance in all material respects with all presently applicable
provisions of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations
thereunder (“ERISA”); no “reportable event” (as defined in ERISA) has occurred with respect to
any “pension plan” (as defined in ERISA) for which the Company and each Subsidiary would have any material liability;
the Company and each Subsidiary has not incurred and does not expect to incur material liability under (i) Title IV of ERISA with
respect to termination of, or withdrawal from, any “pension plan” or (ii) Sections 412 or 4971 of the Code; and each
“pension plan” for which the Company or any Subsidiary would have any liability that is intended to be qualified under
Section 401(a) of the Code is so qualified in all material respects and nothing has occurred, whether by action or by failure
to act, which would cause the loss of such qualification.

 

(ff)
Employee Relations.

 

(i)
Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any member of a union.
The Company and its Subsidiaries believe that their relations with their employees are good. No executive officer of the Company
or any of its Subsidiaries (as defined in Rule 501(f) of the 1933 Act) or other key employee of the Company of any of its Subsidiaries
has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise
terminate such officer’s employment with the Company or any such Subsidiary. No current executive officer or other key employee
of the Company or any of its Subsidiaries is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement
or any restrictive covenant, and the continued employment of each such executive officer or other key employee (as the case may
be) does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters, except
where such violation would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect.

 

    	 	17	 

    	 

    

 

(ii)
The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting
labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where
failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect.

 

(gg)
Transactions with Affiliates. Except as set forth on Schedule 3(gg), none of the officers, directors or employees
of the Company or any of its Subsidiaries is presently a party to any transaction with the Company or any of its Subsidiaries
(other than for ordinary course services as employees, officers or directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any such officer, director or employee or, to the knowledge of the Company or any of its Subsidiaries,
any corporation, partnership, trust or other entity in which any such officer, director, or employee has a substantial interest
or is an officer, director, employee, trustee or partner.

 

(hh)
Environmental Laws. The Company and its Subsidiaries (A) are in compliance with all Environmental Laws (as defined below),
(B) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their
respective businesses and (C) are in compliance with all terms and conditions of any such permit, license or approval where, in
each of the foregoing clauses (A), (B) and (C), the failure to so comply could be reasonably expected to have, individually or
in the aggregate, a Material Adverse Effect. The term “Environmental Laws” means all federal, state, local
or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient
air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions,
discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes
(collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations,
codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans
or regulations issued, entered, promulgated or approved thereunder.

 

(ii)
Listing; 1934 Act Registration. The Common Stock is quoted for trading on the Principal Market. The Company has taken no
action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the 1934 Act or the
quotation of the Common Stock on the Principal Market, nor has the Company received any notification that the SEC or the Principal
Market is contemplating terminating such registration or quotation.

 

    	 	18	 

    	 

    

 

(jj)
No Integrated Offering. The Company has not sold or issued any securities that would be integrated with the offering of
the Securities contemplated by this Agreement pursuant to the 1933 Act, the Rules and Regulations or the interpretations thereof
by the SEC. None of the Company, its Subsidiaries, any of their affiliates, and 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 cause this offering of the Securities to require approval of stockholders of the Company for purposes of any applicable
stockholder 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.

 

(kk)
Brokerage Fees; Commissions. Except as described in the Registration Statement and the Prospectus, neither the Company
nor any of its Subsidiaries is a party to any contract, agreement or understanding with any person that would give rise to a valid
claim against the Company or the Buyers for a brokerage commission, finder’s fee or like payment in connection with the
offering and sale of the Securities. The Company shall be responsible for the payment of any placement agent’s fees, financial
advisory fees, or broker’s commissions (other than for persons engaged by any Buyer or its investment advisor) relating
to or arising out of the transactions contemplated hereby. The Company shall pay, and hold each Buyer harmless against, any liability,
loss or expense (including, without limitation, attorney’s fees and out-of-pocket expenses) arising in connection with such
claim (other than for claims made by Persons engaged by the Buyers). The Company acknowledges that it has engaged The Special
Equities Group, a division of Bradley Woods & Co. Ltd. (the “Agent”) as placement agent in connection with
the sale of the Securities. Other than the Agent, neither the Company nor any of its Subsidiaries has engaged any placement agent
or other agent in connection with the sale of the Securities.

 

(ll)
Consents. Other than as described in Section 3(t) hereof, or as have been previously obtained, filed or made, 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 in order for it to execute,
deliver or perform any of its obligations under or contemplated by the Transaction Documents, in each case in accordance with
the terms hereof or thereof. 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. The Company is not in violation of the listing requirements of the Principal Market and has
no knowledge of any facts that would reasonably lead to delisting or suspension of the Common Stock in the foreseeable future.

 

(mm)
Acknowledgment Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that each Buyer is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
hereby and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an “affiliate”
of the Company or any of its Subsidiaries (as defined in Rule 405 of the 1933 Act) or (iii) to the knowledge of the Company, a
“beneficial owner” of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the 1934
Act). The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company or any of its
Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and
thereby, and any advice given by a Buyer or any of its representatives or agents in connection with the Transaction Documents
and the transactions contemplated hereby and thereby is merely incidental to such Buyer’s purchase of the Securities. The
Company further represents to each Buyer that the Company’s decision to enter into the Transaction Documents has been based
solely on the independent evaluation by the Company and its representatives.

 

    	 	19	 

    	 

    

 

(nn)
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares issuable pursuant to the
terms of the Certificate of Designations will increase in certain circumstances. The Company further acknowledges that its obligations
to issue Conversion Shares in accordance with this Agreement and the Certificate of Designations is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.

 

(oo)
Application of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary
action, if any, in order to render inapplicable the Company’s issuance of the Securities and any Buyer’s ownership
of the Securities from the provisions of any control share acquisition, interested stockholder, business combination, poison pill
(including any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation
or the laws of the state of its incorporation which is or could become applicable to any Buyer as a result of the transactions
contemplated by this Agreement, including, without limitation, the Company’s issuance of Securities and each Buyer’s
ownership of the Securities. Except as set forth in the Registration Statement and the Prospectus, the Company does not have any
stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of Common Stock or a change in
control of the Company.

 

(pp)
Subsidiary Rights. Except as set forth on Schedule 3(pp), the Company or one of its Subsidiaries has the unrestricted
right to vote, and (subject to limitations imposed by applicable law) to receive dividends and distributions on, all capital securities
of its Subsidiaries as owned by the Company or such Subsidiary.

 

(qq)
Off Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company and an
unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is
not so disclosed or that otherwise would be reasonably likely to have a Material Adverse Effect.

 

(rr)
Transfer Taxes. On the Closing Date, all stock transfer or other similar taxes (other than income or similar taxes) which
are required to be paid in connection with the sale and transfer of the Securities to be sold to each Buyer hereunder will be,
or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied
with.

 

    	 	20	 

    	 

    

 

(ss)
Acknowledgement Regarding Buyers’ Trading Activity. Except as set forth in Section 2(c), the Company acknowledges
and agrees (i) that none of the Buyers has been asked to agree, nor has any Buyer agreed, to desist from purchasing or selling,
long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company
or to hold the Securities for any specified term; (ii) that past or future open market or other transactions by any Buyer, including,
without limitation, short sales or “derivative” transactions, before or after the closing of the transactions contemplated
by this Agreement or future transactions, may negatively impact the market price of the Company’s publicly-traded securities;
(iii) that any Buyer, and counter parties in “derivative” transactions to which any such Buyer is a party, directly
or indirectly, presently may have a “short” position in the Common Stock; and (iv) that such Buyer shall not be deemed
to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction.
The Company further understands and acknowledges that, except as set forth in Section 2(c), (a) one or more Buyers may engage
in hedging and/or trading activities at various times during the periods that the Securities are outstanding, including, without
limitation, during the period that the value of the Conversion Shares and the Warrant Shares deliverable with respect to Securities
are being determined and (b) such hedging and/or trading activities (if any) could reduce the value of the existing stockholders’
equity interests in the Company at and after the time that the hedging and/or trading activities are being conducted. The Company
acknowledges that such aforementioned hedging and/or trading activities do not constitute a breach of this Agreement, the Certificate
of Designations, the Warrants or any of the documents executed in connection herewith.

 

(tt)
U.S. Real Property Holding Corporation. Neither the Company, nor any of its Subsidiaries, is or has ever been a U.S. real
property holding corporation within the meaning of Section 897 of the Code and the Company and each Subsidiary shall so certify
upon any Buyer’s request.

 

(uu)
Shell Company Status. The Company is not, and has not been for a period of at least one year from the date hereof, an issuer
identified in Rule 144(i)(1) of the 1933 Act. The Company has filed current “Form 10 information” (as defined in Rule
144(i)(3)) with the SEC reflecting its status as an entity that was no longer an issuer described in Rule 144(i)(1)(i) more than
one year ago from the date hereof.

 

(vv)
Bank Holding Company. Neither the Company nor any of its Subsidiaries or affiliates is subject to the Bank Holding Company
Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System
(the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or affiliates owns or controls directly
or indirectly, five percent or more of the outstanding shares of any class of voting securities or twenty-five percent or more
of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the
Company nor any of its Subsidiaries or affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(ww)
SEC Documents; Financial Statements. Except as disclosed in Schedule 3(ww), during the two (2) years prior to the
date hereof, the Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by
it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof, and
all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein
being hereinafter referred to as the “SEC Documents”). The Company has delivered to the Buyers or their respective
representatives true, correct and complete copies of the SEC Documents not available on the EDGAR system. As of their respective
filing dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations
of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed
with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
As of their respective filing dates, the financial statements of the Company included in the SEC Documents complied as to form
in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect
thereto. Such financial statements have been prepared in accordance with GAAP (except (i) as may be otherwise indicated in such
financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the
Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case
of unaudited statements, to normal year-end audit adjustments). No other information provided by or on behalf of the Company to
the Buyers which is not included in the SEC Documents contains any untrue statement of a material fact or omits to state any material
fact necessary in order to make the statements therein, in the light of the circumstance under which they are or were made, not
misleading.

 

    	 	21	 

    	 

    

 

(xx)
Placement Agent Agreement. The Company has entered into a Placement Agent Agreement, dated as of November 12, 2019, with
the Agent that contains certain representations, warranties, covenants and agreements of the Company. Such representations, warranties,
covenants and agreements are for the benefit of and may be relied upon by the Buyers, each of which shall be a third-party beneficiary
thereof.

 

(yy)
Indebtedness and Other Contracts. Except as set forth on Schedule 3(yy), neither the Company nor any of its Subsidiaries,
(i) has any outstanding Indebtedness, (ii) is a party to any contract, agreement or instrument, the violation of which, or default
under which, by the other party(ies) to such contract, agreement or instrument would reasonably be expected to result in a Material
Adverse Effect, (iii) is in violation of any term of, or in default under, any contract, agreement or instrument relating to any
Indebtedness, except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse
Effect, or (iv) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in
the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect. Schedule 3(yy) provides
a detailed description of the material terms of any such outstanding Indebtedness, including, without limitation, descriptions
of any defaults, forbearances, accounts receivable and accounts payable thereunder. Schedule 3(yy)(i) sets forth a list
of Liens (as defined in the Certificate of Designations) permitted while any Preferred Shares are outstanding. Schedule 3(yy)(ii)
sets forth a list of Indebtedness that may be repaid while any Preferred Shares are outstanding.

 

(zz)
Stock Option Plans. Each stock option granted by the Company was granted (i) in accordance with the terms of the applicable
Company stock option plan and (ii) with an exercise price at least equal to the fair market value of the Common Stock on the date
such stock option would be considered granted under GAAP and applicable law. No stock option granted under the Company’s
stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or
practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release
or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

 

    	 	22	 

    	 

    

 

(aaa)
No Disagreements with Accountants and Lawyers. There are no material disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the
Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s
ability to perform any of its obligations under any of the Transaction Documents.

 

4.
COVENANTS.

 

(a)
Best Efforts. Each party shall use its best efforts timely to satisfy each of the covenants and the conditions to be satisfied
by it as provided in Sections 6 and 7 of this Agreement.

 

(b)
Maintenance of Registration Statement. For so long as any of the Preferred Shares or Warrants remain outstanding, the Company
shall use its best efforts to maintain the effectiveness of the Registration Statement for the issuance thereunder of the Relevant
Securities (as defined below); provided that, if at any time while the Preferred Shares and Warrants are outstanding, the Company
shall be ineligible to utilize Form S-3 (or any successor form) for the purpose of issuance of the Relevant Securities, the Company
shall use its best efforts to promptly amend the Registration Statement on such other form as may be necessary to maintain the
effectiveness of the Registration Statement for this purpose. For the purpose of this Agreement, “Relevant Securities”
means (i) the Conversion Shares issued or issuable pursuant to the terms of the Certificate of Designations, (ii) the Warrant
Shares issued or issuable upon exercise of the Warrants and (iii) any shares of capital stock of the Company issued or issuable
with respect to the Preferred Shares, the Conversion Shares, the Warrants and/or the Warrant Shares as a result of any stock split,
stock dividend, recapitalization, exchange or similar event or otherwise, without regard to any limitations on issuance, conversion
or exercise thereof.

 

(c)
Prospectus Supplement and Blue Sky. In the manner required by law, the Company shall have delivered to the Buyers, and
as soon as practicable after the Closing, the Company shall file, the Prospectus Supplement with respect to the Securities as
required under and in conformity with the 1933 Act, including Rule 424(b) thereunder. If required, the Company, on or before the
Closing Date, shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for
or to qualify the Securities for sale to the Buyers at the Closing pursuant to this Agreement under applicable securities or “Blue
Sky” laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence
of any such action so taken to the Buyers on or prior to the Closing Date. The Company shall make all filings and reports relating
to the offer and sale of the Securities required under applicable securities or “Blue Sky” laws of the states of the
United States following the Closing Date.

 

(d)
Use of Proceeds. The Company will use the proceeds from the sale of the Securities for working capital and general corporate
purposes.

 

    	 	23	 

    	 

    

 

(e)
Listing. The Company shall promptly secure the listing of all of the Common Shares, the Conversion Shares and the Warrant
Shares upon each securities exchange and automated quotation system, if any, upon which the Common Stock is then listed, including
the Principal Market (subject to official notice of issuance) and shall maintain such listing of all the Common Shares, the Conversion
Shares and the Warrant Shares from time to time issuable under the terms of the Transaction Documents. The Company shall maintain
the authorization for quotation of the Common Stock on the Principal Market or any other Eligible Market. Neither the Company
nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension
of the Common Stock on the Principal Market. The Company shall pay all fees and expenses in connection with satisfying its obligations
under this Section 4(e).

 

(f)
Fees. The Company shall pay an expense allowance to the Lead Investor or its designee(s) for all costs and expenses incurred
in connection with the transactions contemplated by the Transaction Documents (including all legal fees and disbursements in connection
therewith, documentation and implementation of the transactions contemplated by the Transaction Documents and due diligence in
connection therewith) not reimbursed by the Company on or prior to the Closing, which amount, at the option of such Buyer, may
be withheld by such Buyer from its Purchase Price at the Closing; provided, however, in no event will the amount
of costs, fees and expenses of the Lead Investor to be reimbursed by the Company in connection with this Agreement and the Closing
exceed $50,000 without the prior approval from the Company (in addition to any other expense amounts paid to the Lead Investor
or its counsel prior to the date of this Agreement). The Company shall be responsible for the payment of any placement agent’s
fees, financial advisory fees, or broker’s commissions (other than for Persons engaged by any Buyer) relating to or arising
out of the transactions contemplated hereby, including, without limitation, any fees or commission payable to the Agent. The Company
shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorney’s
fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except as otherwise set forth
in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the sale of the Securities
to the Buyers.

 

(g)
Pledge of Securities. The Company acknowledges and agrees that, except as otherwise set forth in Section 2(c), the Securities
may be pledged by any holder of Securities (an “Investor”) in connection with a bona fide margin agreement
or other loan or financing arrangement that is secured by the Securities. Any such pledge of Securities shall not be deemed to
be a transfer, sale or assignment of the Securities hereunder, and no Investor effecting a pledge of Securities shall be required
to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any
other Transaction Document. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities
may reasonably request in connection with a pledge of the Securities to such pledgee by an Investor.

 

(h)
Reporting Status. Until the date on which the Investors shall have sold all of the Common Shares, the Conversion Shares
and the Warrant Shares and none of the Preferred Shares or the Warrants are outstanding (the “Reporting Period”),
the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not
terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations
thereunder would no longer require or otherwise permit such termination.

 

    	 	24	 

    	 

    

 

(i)
Financial Information. The Company agrees to send the following to each Investor during the Reporting Period (i) unless
the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system, within one (1) Business
Day after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, any Quarterly Reports on Form 10-Q, any
Current Reports on Form 8-K (or any analogous reports under the 1934 Act) and any registration statements (other than on Form
S-8) or amendments filed pursuant to the 1933 Act, (ii) on the same day as the release thereof, facsimile or e-mailed copies of
all press releases issued by the Company or any of its Subsidiaries and (iii) copies of any notices and other information made
available or given to the stockholders of the Company generally, contemporaneously with the making available or giving thereof
to the stockholders. As used herein, “Business Day” means any day other than Saturday, Sunday or other day
on which commercial banks in The City of New York are authorized or required by law to remain closed.

 

(j)
Disclosure of Transactions and Other Material Information. On or before the Disclosure Time (as defined below), the Company
shall, after receiving approval by the Lead Investor, issue a press release and file a Current Report on Form 8-K describing the
terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching the material
Transaction Documents (including, without limitation, this Agreement (and all schedules and exhibits to this Agreement), the form
of Certificate of Designations, the form of Warrant and the form of Lock-Up Agreement as exhibits to such filing (including all
attachments, the “8-K Filing”). As of immediately following the filing of the 8-K Filing with the SEC, no Buyer
shall be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries or any of their
respective officers, directors, employees, affiliates or agents, that is not disclosed in the 8-K Filing or in prior filings with
the SEC. 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, whether written or oral, between the Company, any of its Subsidiaries or any of their
respective officers, directors, employees, affiliates or agents, on the one hand, and any of the Buyers or any of their affiliates,
on the other hand, shall terminate and be of no further force or effect. The Company shall not, and shall cause each of its Subsidiaries
and its and each of their respective officers, directors, employees, affiliates and agents, not to, provide any Buyer with any
material, nonpublic information regarding the Company or any of its Subsidiaries from and after the date hereof without the express
written consent of such Buyer. If a Buyer has, or believes it has, received any such material, nonpublic information regarding
the Company or any of its Subsidiaries provided in breach of the preceding sentence, it shall provide the Company with written
notice thereof in which case the Company shall, within two (2) Trading Days (as defined in the Warrants) of receipt of such notice,
make public disclosure of any such material, nonpublic information provided in breach of the preceding sentence. In the event
of a breach of the foregoing covenant by the Company, any of its Subsidiaries, or any of its or their respective officers, directors,
employees, affiliates and agents, in addition to any other remedy provided herein or in the Transaction Documents, a Buyer shall
have the right to make a public disclosure, in the form of a press release, public advertisement or otherwise, of such material,
nonpublic information without the prior approval by the Company, its Subsidiaries, or any of its or their respective officers,
directors, employees, affiliates or agents. No Buyer shall have any liability to the Company, its Subsidiaries, or any of its
or their respective officers, directors, employees, affiliates or agents for any such disclosure. To the extent that the Company,
its Subsidiaries or any of its or their respective officers, directors, employees, affiliates
or agents delivers any material, nonpublic information to a Buyer without such Buyer’s prior written consent, the
Company hereby covenants and agrees that such Buyer shall not have any duty of confidentiality to the Company, any of its Subsidiaries
or any of their respective officers, directors, employees, affiliates or agents with respect to, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, employees, affiliates or agents not to trade on the basis
of, such material, nonpublic information. Subject to the foregoing, neither the Company nor any of, its Subsidiaries shall issue
any press releases or any other public statements with respect to the transactions contemplated hereby without the prior express
written consent of each Buyer; provided, however, that the Company shall be entitled, without such prior approval
of each Buyer, to make any press release or other public disclosure with respect to such transactions (i) in substantial conformity
with the 8-K Filing and press release contemplated by this Section 4(j) and contemporaneously therewith and (ii) as is required
by applicable law, regulation or any Eligible Market on which the Company’s securities are then listed or quoted (provided
that in the case of clause (i) each Buyer shall be consulted by the Company in connection with any such press release or other
public disclosure prior to its release). Without the prior written consent of any applicable Buyer, neither the Company nor any
of its Subsidiaries or affiliates shall disclose the name of such Buyer in any filing, announcement, release or otherwise other
than in connection with the Registration Statement unless such disclosure is required by law, regulation or any Eligible Market
on which the Company’s securities are then listed or quoted. As used herein, “Disclosure Time” means,
(i) if this Agreement is signed after 8:30 a.m. (New York City time) and before midnight (New York City time) on any Trading Day,
8:31 a.m. (New York City time) on the second Trading Day immediately following the date hereof, unless otherwise instructed as
to an earlier time by the Agent, or (ii) if this Agreement is signed between midnight (New York City time) and 8:30 a.m. (New
York City time) on any Trading Day, no later than 8:31 a.m. (New York City time) on the Trading Day immediately following date
hereof, unless otherwise instructed as to an earlier time by the Agent.

 

    	 	25	 

    	 

    

 

(k)
Additional Preferred Shares and Warrants; Variable Securities. For so long as any Preferred Shares remain outstanding,
the Company will not issue any shares of Series G Convertible Preferred Stock other than to the Buyers as contemplated hereby
and the Company shall not issue any other securities that would cause a breach or default under the Certificate of Designations.
Any Buyer shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall
be in addition to any right to collect damages.

 

(l)
Corporate Existence. For so long as any Preferred Shares or Warrants remain outstanding, the Company shall maintain its
corporate existence and shall not be party to any Fundamental Transaction (as defined in the Certificate of Designations and the
Warrants) unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the
Certificate of Designations and the Warrants.

 

(m)
Reservation of Shares. So long as any Buyer owns any Securities, the Company shall take all action necessary to at all
times have authorized, and reserved for the purpose of issuance no less than the Required Reserve Amount. If at any time the number
of shares of Common Stock authorized and reserved for issuance is not sufficient to meet the Required Reserve Amount, the Company
shall take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation,
(i) calling a special meeting of stockholders to authorize an increase in the amount of shares of Common Stock to be authorized
and reserved to meet the Company’s obligations under Section 3(e), (ii) obtaining stockholder approval of such increase
in such authorized number of shares, (iii) causing the Board of Directors of the Company to unanimously recommend to the stockholders
of the Company that they approve such resolutions, (iv) using best efforts to cause its officers and directors who hold shares
of Common Stock to be present at the Stockholder Meeting for quorum purposes (including by proxy) and (v) causing management’s
shares of the Company to be voted in favor of such increase in the authorized shares of the Company, to ensure that the number
of authorized shares is sufficient to meet the Required Reserve Amount. The Required Reserve Amount and any increase in the number
of shares so reserved shall be allocated pro rata among the Buyers, based on the total number of shares of Common Stock issuable
pursuant to the terms of the Certificate of Designations and upon exercise of the Warrants (without regard to any limitations
on the issuance of shares pursuant to the terms of the Certificate of Designations or upon exercise of the Warrants) issued to
each Buyer on the Closing Date (the “Authorized Share Allocation”). In the event that a Buyer shall sell or
otherwise transfer any of its Preferred Shares or Warrants, each transferee shall be allocated a pro rata portion of such holder’s
Authorized Share Allocation with respect to such holder’s Preferred Shares or Warrants being transferred. Any shares of
Common Stock reserved and allocated to any Person which ceases to hold any Preferred Shares or Warrants shall be allocated to
the holders of the remaining Preferred Shares and Warrants, pro rata based on the Conversion Shares issuable pursuant to the terms
of the Certificate of Designations and the Warrant Shares issuable upon exercise of the Warrants then held by such holders (without
regard to any limitations on the issuance of shares pursuant to the terms of the Certificate of Designations or upon the exercise
of the Warrants).

 

    	 	26	 

    	 

    

 

(n)
Conduct of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance
or regulation of any governmental entity, including, without limitation, FCPA and other applicable Anti-Bribery Laws, OFAC regulations
and other applicable Sanctions Laws, and Anti-Money Laundering Laws.

 

(i)
Neither the Company, nor any of its Subsidiaries or affiliates, directors, officers, employees, representatives or agents shall:

 

(a)
conduct any business or engage in any transaction or dealing with or for the benefit of any Blocked Person, including the making
or receiving of any contribution of funds, goods or services to, from or for the benefit of any Blocked Person;

 

(b)
deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked or subject to blocking
pursuant to the applicable Sanctions Laws;

 

(c)
use any of the proceeds of the transactions contemplated by this Agreement to finance, promote or otherwise support in any manner
any illegal activity, including, without limitation, any Anti-Money Laundering Laws, Sanctions Laws, or Anti-Bribery Laws; or

 

(d)
violate, attempt to violate, or engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of
evading or avoiding, any of the Anti-Money Laundering Laws, Sanctions Laws, or Anti-Bribery Laws.

 

(ii)
The Company shall maintain in effect and enforce policies and procedures designed to ensure compliance by the Company and its
Subsidiaries and their directors, officers, employees, agents representatives and affiliates with the Sanctions Laws and Anti-Bribery
Laws.

 

    	 	27	 

    	 

    

 

(iii)
The Company will promptly notify the Buyers in writing if any of the Company, or
any of its Subsidiaries or affiliates, directors, officers, employees, representatives or agents, shall become
a Blocked Person, or become directly or indirectly owned or controlled by a Blocked Person.

 

(iv)
The Company shall provide such information and documentation as the Buyers or any of their affiliates may require to satisfy compliance
with the Anti-Money Laundering Laws, Sanctions Laws, or Anti-Bribery Laws.

 

(v)
The covenants set forth above shall be ongoing. The Company shall promptly notify the Buyers in writing should it become aware
(a) of any changes to these covenants, or (b) if it cannot comply with the covenants set forth herein. The Company shall also
promptly notify the Buyers in writing should they become aware of an investigation, litigation or regulatory action relating to
an alleged or potential violation of the Anti-Money Laundering Laws, Sanctions Laws, and Anti-Bribery Laws.

 

(o)
Reserved.

 

(p)
Integration. None of the Company, its Subsidiaries, their affiliates and any Person acting on their behalf shall sell,
offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the 1933
Act) that would be integrated with the offer or sale of the Securities in a manner that would be integrated with the offer or
sale of the Securities for purposes of the rules and regulations of any Eligible Market such that it would require shareholder
approval prior to the closing of such other transaction.

 

(q)
FAST Compliance. While any Securities are outstanding, the Company shall maintain a transfer agent that participates in
the at The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program.

 

(r)
Company’s Operations. While any Securities are outstanding, the Company and each of its Subsidiaries shall (i) not
be an “investment company,” and affiliate of an “investment company,” a company controlled by an “investment
company” or an “affiliated person” of, or “promoter” or “principal underwriter” for,
an “investment company”, as such terms are defined in the Investment Company Act of 1940, as amended; (ii) not become
a U.S. real property holding corporation within the meaning of Section 897 of the Code (and the Company and each Subsidiary shall
so certify upon any Buyer’s request); (iii) not become subject to the BHCA or regulation by the Federal Reserve; (iv) not
own or control, directly or indirectly, five percent or more of the outstanding shares of any class of voting securities or twenty-five
percent or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve;
and (v) not exercise a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA
and to regulation by the Federal Reserve.

 

(s)
Lock-Up. The Company shall not amend or waive any provision of the Lock-Up Agreements except to extend the term of the
lock-up period contained therein and shall enforce the provisions of the Lock-Up Agreements in accordance with their terms. If
any party to a Lock-Up Agreement breaches any provision of a Lock-Up Agreement, the Company shall promptly use its best efforts
to seek specific performance of the terms of such Lock-Up Agreement.

 

    	 	28	 

    	 

    

 

(t)
Closing Documents. On or prior to fourteen (14) calendar days after the Closing Date, Schulte Roth & Zabel LLP will
deliver to the Company and the Lead Investor a complete closing set (which may be solely in electronic format) of the executed
copies of the Transaction Documents, Securities and other documents required to be delivered to any party pursuant to Section
7 hereof. The Company promptly will deliver a copy of such closing set in electronic format to any Investor that requests one.

 

5.
REGISTER; TRANSFER AGENT INSTRUCTIONS.

 

(a)
Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company
as it may designate by notice to each holder of Securities), a register for the Common Shares, the Preferred Shares and the Warrants
in which the Company shall record the name and address of the Person in whose name the Common Shares, the Preferred Shares and
the Warrants have been issued (including the name and address of each transferee), the number of Common Shares held by such Person,
the number of Conversion Shares issued and issuable pursuant to the terms of the Certificate of Designations and the number of
Warrant Shares issuable upon exercise of the Warrants held by such Person. The Company shall keep the register open and available
at all times during business hours for inspection of any Buyer or its legal representatives.

 

(b)
Transfer Agent Instructions. The Company shall issue irrevocable instructions to Corporate Stock Transfer, Inc. (including
any successor transfer agent, the “Transfer Agent”) to issue certificates or credit shares to the applicable
balance accounts at DTC, registered in the name of each Buyer or its respective nominee(s), for the Conversion Shares and the
Warrant Shares in such amounts as specified from time to time by each Buyer to the Company pursuant to the terms of the Certificate
of Designations or exercise of the Warrants, in the form attached hereto as Exhibit C (the “Irrevocable Transfer
Agent Instructions”). The Company represents and warrants that no instruction other than the Irrevocable Transfer Agent
Instructions referred to in this Section 5 will be given by the Company to the Transfer Agent, and any subsequent transfer agent
with respect to the Securities, and that the Securities shall otherwise be freely transferable on the books and records of the
Company as and to the extent provided in this Agreement and the other Transaction Documents. The Company acknowledges that a breach
by it of its obligations hereunder will cause irreparable harm to the Buyers. Accordingly, the Company acknowledges that the remedy
at law for a breach of its obligations under this Section 5 will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of the provisions of this Section 5, that the Buyers shall be entitled, in addition to all other available
remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity
of showing economic loss and without any bond or other security being required.

 

    	 	29	 

    	 

    

 

6.
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

The
obligation of the Company hereunder to issue and sell the Common Shares, the Preferred Shares and the Warrants to each Buyer at
the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that
these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion
by providing each Buyer with prior written notice thereof:

 

(i)
Such Buyer shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

 

(ii)
Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less, in the case of the Lead Investor,
the amounts withheld pursuant to Section 4(f)) by wire transfer of immediately available funds pursuant to the Wire Instructions
provided by the Company.

 

(iii)
The representations and warranties of such Buyer shall be true and correct in all respects as of the date when made and as of
the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date, which
shall be true and correct as of such specified date), and such Buyer shall have performed, satisfied and complied in all respects
with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer
at or prior to the Closing Date.

 

(iv)
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

7.
CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE.

 

The
obligation of each Buyer hereunder to purchase the Common Shares, the Preferred Shares and the Warrants at the Closing is subject
to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for
each Buyer’s sole benefit and may be waived by such Buyer at any time in its sole discretion by providing the Company with
prior written notice thereof:

 

(i)
The Company shall have duly executed and delivered to such Buyer (i) each of the Transaction Documents, (ii) via DWAC, the Common
Shares (allocated in such amounts as such Buyer shall request) being purchased by such Buyer at the Closing pursuant to this Agreement,
(iii) the Preferred Shares (allocated in such amounts as such Buyer shall request) being purchased by such Buyer at the Closing
pursuant to this Agreement and (iv) the Warrants (allocated in such amounts as such Buyer shall request) being purchased by such
Buyer at the Closing pursuant to this Agreement;

 

(ii)
Such Buyer shall have received the opinion of Anthony L.G., PLLC, the Company’s counsel, dated as of the Closing Date, in
the form attached hereto as Exhibit D;

 

(iii)
The Company shall have delivered to such Buyer a copy of the Irrevocable Transfer Agent Instructions, which instructions shall
have been delivered to and acknowledged in writing by the Transfer Agent;

 

    	 	30	 

    	 

    

 

(iv)
The Company shall have delivered to such Buyer a certificate evidencing the formation and good standing of the Company in such
entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction, as of a
date within ten (10) days of the Closing Date;

 

(v)
The Company shall have delivered to such Buyer a certificate evidencing the Company’s qualification as a foreign corporation
and a “short form” good standing certificate issued by the Secretary of State (or comparable office) of each jurisdiction
in which the Company conducts business and is required to so qualify, as of a date within ten (10) days of the Closing Date;

 

(vi)
The Company shall have delivered to such Buyer a certified copy of the Certificate of Incorporation as certified by the Secretary
of State of the State of Delaware (or a fax or pdf copy of such certificate) within ten (10) days of the Closing Date;

 

(vii)
The Company shall have delivered to such Buyer a certificate, executed by the Secretary of the Company and dated as of the Closing
Date, as to (i) the resolutions consistent with Section 3(d) as adopted by the Company’s Board of Directors in a form reasonably
acceptable to such Buyer, (ii) the Company’s Certificate of Incorporation and (iii) the Company’s Bylaws, each as
in effect at the Closing, in the form attached hereto as Exhibit E;

 

(viii)
The representations and warranties of the Company shall be true and correct in all respects as of the date when made and as of
the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date, which
shall be true and correct as of such specified date) and the Company shall have performed, satisfied and complied in all respects
with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with
by the Company at or prior to the Closing Date. Such Buyer shall have received a certificate, executed by the Chief Executive
Officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably
requested by such Buyer in the form attached hereto as Exhibit F;

 

(ix)
The Company shall have delivered to such Buyer a letter from the Transfer Agent certifying the number of shares of Common Stock
outstanding as of a date within five (5) days before the Closing Date;

 

(x)
The Common Stock (I) shall be designated for quotation or listed on the Principal Market and (II) shall not have been suspended,
as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market, nor shall suspension by the SEC
or the Principal Market have been threatened, as of the Closing Date, either (A) in writing by the SEC or the Principal Market
or (B) by falling below the minimum listing maintenance requirements of the Principal Market;

 

(xi)
The Company shall have obtained all governmental, regulatory or third-party consents and approvals, if any, necessary for the
sale of the Securities and the transactions contemplated by the Transactions Documents and all payments thereunder;

 

    	 	31	 

    	 

    

 

(xii)
The Registration Statement shall be effective and available for the issuance and sale of the Securities hereunder and the Company
shall have delivered to such Buyer the Prospectus and the Prospectus Supplement as required thereunder;

 

(xiii)
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement;

 

(xiv)
Since the date of this Agreement, no event or series of events shall have occurred that reasonably could be expected to result
in a Material Adverse Effect;

 

(xv)
The Company shall have provided to such Buyer the Company’s wire instructions, on the Company’s letterhead and executed
by the Company’s Chief Financial Officer (the “Wire Instructions”);

 

(xvi)
The Company shall have delivered to each Buyer a lock-up agreement, in the form attached hereto as Exhibit G, executed
and delivered by each of the Persons listed on Schedule 7(xvi) (collectively, the “Lock-Up Agreements”);

 

(xvii)
The Certificate of Designations shall have been filed with the Secretary of State of the State of Delaware and shall be in full
force and effect, enforceable against the Company in accordance with its terms and shall not have been amended; and

 

(xviii)
The Company shall have delivered to such Buyer such other documents relating to the transactions contemplated by this Agreement
as such Buyer or its counsel may reasonably request.

 

8.
TERMINATION. In the event that the Closing shall not have occurred with
respect to a Buyer on or before five (5) Business Days from the date hereof due to the Company’s or such Buyer’s failure
to satisfy the conditions set forth in Sections 6 and 7 above (and the nonbreaching party’s failure to waive such unsatisfied
condition(s)), the nonbreaching party shall have the option to terminate this Agreement with respect to such breaching party at
the close of business on such date by delivering a written notice to that effect to each other party to this Agreement and without
liability of any party to any other party; provided, however, that
if this Agreement is terminated pursuant to this Section 8, the Company shall remain obligated to reimburse the Lead Investor
or its designee(s), as applicable, for the expenses described in Section 4(f) above.

 

    	 	32	 

    	 

    

 

9.
MISCELLANEOUS.

 

(a)
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law
or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any
such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(b)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party; provided that a facsimile or .pdf signature shall be considered due execution and shall be binding upon the signatory thereto
with the same force and effect as if the signature were an original, not a facsimile or .pdf signature.

 

(c)
Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement.

 

(d)
Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective
expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred
upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

    	 	33	 

    	 

    

 

(e)
Entire Agreement; Amendments. This Agreement and the other Transaction Documents supersede all other prior oral or written
agreements between the Buyers, the Company, their affiliates and Persons acting on their behalf with respect to the matters discussed
herein, and this Agreement, the other Transaction Documents and the instruments referenced herein and therein contain the entire
understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein
or therein, neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such
matters. No provision of this Agreement may be amended or waived other than by an instrument in writing signed by the Company
and the holders of at least a majority of the aggregate number of shares of Common Stock issued and issuable hereunder and under
the Certificate of Designations and the Warrants (without regard to any restriction or limitation on the issuance of shares pursuant
to the terms of the Certificate of Designations or upon the exercise of the Warrants contained therein) and shall include the
Lead Investor so long as the Lead Investor or any of its affiliates holds any Securities (the “Required Holders”),
and any amendment or waiver to this Agreement made in conformity with the provisions of this Section 9(e) shall be binding on
all Buyers and holders of Securities as applicable. No such amendment shall be effective to the extent that it applies to less
than all of the holders of the applicable Securities then outstanding. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration (other than the
reimbursement of legal fees) also is offered to all of the parties to this Agreement, the holders of the Preferred Shares, the
Common Shares and the Warrants, as the case may be. Each Buyer hereby acknowledges and agrees that any action taken pursuant to
this Section may result in, or be perceived to result in, a disproportionate impact on such Buyer compared to the impact of such
action on one or more other Buyer(s). This provision constitutes a separate right granted to each Buyer by the Company and shall
not in any way be construed as the Buyers acting in concert or as a group with respect to the purchase, disposition or voting
of securities or otherwise. The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms
or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents.
Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment
or promise or has any other obligation to provide any financing to the Company or otherwise.

 

(f)
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
delivery, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending party) or by electronic mail; or (iii) one Business Day after deposit with an overnight courier service, in
each case properly addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses for such
communications shall be:

 

If
to the Company:

 

Taronis
Technologies, Inc.

300
W. Clarendon Avenue, # 230

Phoenix,
Arizona 85013

Telephone:
866-370-3835

Attention:
Tyler B. Wilson, Esq.

E-mail:
tylerwilson@taronistech.com

 

    	 	34	 

    	 

    

 

If
to the Transfer Agent:

 

Corporate
Stock Transfer, Inc.

3200
Cherry Creek Dr. South, Suite 430

Denver,
CO 80209

Telephone:
(303) 282-4800

Attention:
Michaelie Wingo

E-mail:
mwingo@corporatestock.com

 

If
to a Buyer, to its address, facsimile number and e-mail address set forth on the Schedule of Buyers, with copies to such Buyer’s
representatives as set forth on the Schedule of Buyers,

 

with
a copy (for informational purposes only) to:

 

Schulte
Roth & Zabel LLP

919
Third Avenue

New
York, New York 10022

Telephone:
(212) 756-2000

Facsimile:
(212) 593-5955

Attention:
Eleazer N. Klein, Esq.

E-mail:
eleazer.klein@srz.com

 

or
to such other address, facsimile number and/or e-mail address and/or to the attention of such other Person as the recipient party
has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically
generated by the sender’s facsimile machine or e-mail containing the time, date, recipient facsimile number and an image
of the first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above,
respectively.

 

(g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of the Common Shares, the Preferred Shares or the Warrants. The Company shall
not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Required Holders, including
by way of a Fundamental Transaction (unless the Company is in compliance with the applicable provisions governing Fundamental
Transactions set forth in the Certificate of Designations and the Warrants). A Buyer may assign some or all of its rights hereunder
without the consent of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such
assigned rights.

 

(h)
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except that
each Indemnitee (as defined below) shall have the right to enforce the obligations of the Company with respect to Section 9(k).

 

    	 	35	 

    	 

    

 

(i)
Survival. Unless this Agreement is terminated under Section 8, the representations and warranties of the Company and the
Buyers contained in Sections 2 and 3, and the agreements and covenants set forth in Sections 4, 5 and 9 shall survive the Closing.
Each Buyer shall be responsible only for its own representations, warranties, agreements and covenants hereunder.

 

(j)
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as are reasonably necessary
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

(k)
Indemnification. (i) In consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring
the Securities thereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the
Company shall defend, protect, indemnify and hold harmless each Buyer and each other holder of the Securities and all of their
stockholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’
agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated
by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action,
suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of
whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable
attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result
of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company
in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of
any covenant, agreement or obligation of the Company contained in the Transaction Documents or any other certificate, instrument
or document contemplated hereby or thereby or (c) any cause of action, suit or claim brought or made against such Indemnitee by
a third-party (including for these purposes a derivative action brought on behalf of the Company) and arising out of or resulting
from (i) the execution, delivery, performance or enforcement of the Transaction Documents or any other certificate, instrument
or document contemplated hereby or thereby, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly,
with the proceeds of the issuance of the Securities, (iii) any disclosure made by such Buyer pursuant to Section 4(j) or (iv)
the status of such Buyer or holder of the Securities as an investor in the Company pursuant to the transactions contemplated by
the Transaction Documents. For the avoidance of doubt, the indemnification set forth in this Section 9(k) is intended to apply,
and shall apply, to direct claims asserted by any Buyer against the Company as well as any third-party claims asserted by an Indemnitee
(other than a Buyer) against the Company. To the extent that the foregoing undertaking by the Company may be unenforceable for
any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities
which is permissible under applicable law.

 

    	 	36	 

    	 

    

 

(ii)
Promptly after receipt by an Indemnitee under this Section 9(k) of notice of the commencement of any action or proceeding (including
any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim for indemnification
in respect thereof is to be made against any indemnifying party under this Section 9(k), deliver to the indemnifying party a written
notice of the commencement thereof, and, except in the case of a direct claim against the indemnifying party, the indemnifying
party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party
and the Indemnitee; provided, however, that an Indemnitee shall have the right to retain its own counsel with the
fees and expenses of not more than one counsel for such Indemnitee to be paid by the indemnifying party, if, in the reasonable
opinion of the Indemnitee, the representation by such counsel of the Indemnitee and the indemnifying party would be inappropriate
due to actual or potential differing interests between such Indemnitee and any other party represented by such counsel in such
proceeding. Legal counsel referred to in the immediately preceding sentence shall be selected by the Required Holders. The Indemnitee
shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or Indemnified
Liabilities by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the
Indemnitee that relates to such action or Indemnified Liabilities. The indemnifying party shall keep the Indemnitee fully apprised
at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall
be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however,
that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without
the prior written consent of the Indemnitee, consent to entry of any judgment or enter into any settlement or other compromise
which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release
from all liability in respect to such Indemnified Liabilities or litigation. Following indemnification as provided for hereunder,
the indemnifying party shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to
the Indemnitee under this Section 9(k), except to the extent that the indemnifying party is prejudiced in its ability to defend
such action. For the avoidance of doubt, the provisions of this Section 9(k)(ii) shall not apply to direct claims between the
Company and a Buyer.

 

(iii)
The indemnification required by this Section 9(k) shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as and when bills are received or Indemnified Liabilities are incurred.

 

(iv)
The indemnity agreements contained herein shall be in addition to (x) any cause of action or similar right of the Indemnitee against
the indemnifying party or others, and (y) any liabilities the indemnifying party may be subject to pursuant to the law.

 

(l)
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

(m)
Remedies. Each Buyer and each holder of the Securities shall have all rights and remedies set forth in the Transaction
Documents and all rights and remedies which such holders have been granted at any time under any other agreement or contract and
all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall
be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any
breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes
that in the event that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents,
any remedy at law may prove to be inadequate relief to the Buyers. The Company therefore agrees that the Buyers shall be entitled
to seek temporary and permanent injunctive relief in any such case without the necessity of proving actual damages and without
posting a bond or other security.

 

    	 	37	 

    	 

    

 

(n)
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar
provisions of) the Transaction Documents, whenever any Buyer exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Buyer
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights.

 

(o)
Payment Set Aside. To the extent that the Company makes a payment or payments to the Buyers hereunder or pursuant to any
of the other Transaction Documents or the Buyers enforce or exercise their rights hereunder or thereunder, and such payment or
payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company,
a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal
law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.

 

(p)
Independent Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under any Transaction Document
are several and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance
of the obligations of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document,
and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges,
and each Buyer confirms, that the Buyers do not so constitute, a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Buyers are in any way acting in concert or as a group, and the Company will not assert
any such claim with respect to such obligations or the transactions contemplated by the Transaction Documents and the Company
acknowledges, and each Buyer confirms, that the Buyers are not acting in concert or as a group with respect to such obligations
or the transactions contemplated by the Transaction Documents. The Company acknowledges and each Buyer confirms that it has independently
participated in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Buyer
shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this
Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Buyer to be joined as an additional
party in any proceeding for such purpose.

 

[Signature
Page Follows]

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement
to be duly executed as of the date first written above.

 

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

 

[Signature
Page to Securities Purchase Agreement]

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement
to be duly executed as of the date first written above.

 

	 	BUYERS:
	 	 
	 	By:	
	 	 	 
	 	By:	 
	 	Name:
    	
	 	Title:
    	      

 

	 	Maximum
    Percentage:	[  ]	4.99%
	 	 	 	 
	 	 	[  ]	9.99%

 

[Signature
Page to Securities Purchase Agreement]

 

    	 	 	 

    	 

    

 

SCHEDULE
OF BUYERS

 

	(1)	 	(2)	 	(3)	 	(4)	 	(5)	 	(6)	 	(7)
	Buyer	 	Address,
                                         

        Facsimile
        Number and Email
	 	Number
    of Common Shares	 	Number
    of Preferred Shares	 	Number
    of Warrant Shares	 	Purchase
    Price	 	Legal
    Representative’s Address, Facsimile Number and Email
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 

        
	 	[  ]	 	[  ]	 	[  ]	 	$       [  ]	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL	 	 	 	 	 	 	 	 	 	$

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