Document:

Exhibit
10.4

 

SUBSIDIARY
GUARANTEE

 

SUBSIDIARY
GUARANTEE, dated as of __, 2020 (this “Guarantee”), made by each of the signatories hereto (together with any
other entity that may become a party hereto as provided herein, the “Guarantors”), in favor of the purchasers
signatory (together with their permitted assigns, the “Purchasers”) to that certain Securities Purchase Agreement,
dated as of the date hereof, by and among Taronis Fuels, Inc., a Delaware corporation (the “Company”) and the
Purchasers.

 

W
I T N E S S E T H:

 

WHEREAS,
pursuant to that certain Securities Purchase Agreement, dated as of the date hereof, by and among the Company and the Purchasers
(the “Purchase Agreement”), the Company has agreed to sell and issue to the Purchasers, and the Purchasers
have agreed to purchase from the Company the Debentures, subject to the terms and conditions set forth therein; and

 

WHEREAS,
each Guarantor will directly benefit from the extension of credit to the Company represented by the issuance of the Debentures;
and

 

NOW,
THEREFORE, in consideration of the premises and to induce the Purchasers to enter into the Purchase Agreement and to carry out
the transactions contemplated thereby, each Guarantor hereby agrees with the Purchasers as follows:

 

1.
Definitions. Unless otherwise defined herein, terms defined in the Purchase Agreement and used herein shall have the meanings
given to them in the Purchase Agreement. The words “hereof,” “herein,” “hereto” and “hereunder”
and words of similar import when used in this Guarantee shall refer to this Guarantee as a whole and not to any particular provision
of this Guarantee, and Section and Schedule references are to this Guarantee unless otherwise specified. The meanings given to
terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The following terms shall
have the following meanings:

 

“Guarantee”
means this Subsidiary Guarantee, as the same may be amended, supplemented or otherwise modified from time to time.

 

    	 	1	 

     

    

 

“Obligations”
means, in addition to all other reasonable costs and expenses of collection incurred by Purchasers in enforcing any of such Obligations
and/or this Guarantee, all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several)
due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of the Company or any Guarantor
to the Purchasers, including, without limitation, all obligations under this Guarantee, the Debentures and any other instruments,
agreements or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter
existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly
owed with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and
all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided
or recovered directly or indirectly from any of the Purchasers as a preference, fraudulent transfer or otherwise as such obligations
may be amended, supplemented, converted, extended or modified from time to time. Without limiting the generality of the foregoing,
the term “Obligations” shall include, without limitation: (i) principal of, and interest on the Debentures and the
loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations and liabilities of the Company or
any Guarantor from time to time under or in connection with this Guarantee, the Debentures and any other instruments, agreements
or other documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts (including but not limited
to post-petition interest) in respect of the foregoing that would be payable but for the fact that the obligations to pay such
amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving
the Company or any Guarantor.

 

2.
Guarantee.

 

(a)
Guarantee.

 

(i)
The Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantee to the Purchasers and their respective
successors, indorsees, transferees and assigns, the prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations.

 

(ii)
Anything herein or in any other Transaction Document to the contrary notwithstanding, the maximum liability of each Guarantor
hereunder and under the other Transaction Documents shall in no event exceed the amount which can be guaranteed by such Guarantor
under applicable federal and state laws, including laws relating to the insolvency of debtors, fraudulent conveyance or transfer
or laws affecting the rights of creditors generally (after giving effect to the right of contribution established in Section 2(b)).

 

(iii)
Each Guarantor agrees that the Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of the Purchasers hereunder.

 

(iv)
The guarantee contained in this Section 2 shall remain in full force and effect until all the Obligations and the obligations
of each Guarantor under the guarantee contained in this Section 2 shall have been satisfied by indefeasible payment in full.

 

    	 	2	 

     

    

 

(v)
No payment made by the Company, any of the Guarantors, any other guarantor or any other Person or received or collected by the
Purchasers from the Company, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding
or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Obligations
shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding
any such payment (other than any payment made by such Guarantor in respect of the Obligations or any payment received or collected
from such Guarantor in respect of the Obligations), remain liable for the Obligations up to the maximum liability of such Guarantor
hereunder until the Obligations are indefeasibly paid in full.

 

(vi)
Notwithstanding anything to the contrary in this Guarantee, with respect to any defaulted non-monetary Obligations the specific
performance of which by the Guarantors is not reasonably possible (e.g. the issuance of the Company’s Common Stock), the
Guarantors shall only be liable for making the Purchasers whole on a monetary basis for the Company’s failure to perform
such Obligations in accordance with the Transaction Documents.

 

(b)
Right of Contribution. Subject to Section 2(c), each Guarantor hereby agrees that to the extent that a Guarantor shall
have paid more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive
contribution from and against any other Guarantor hereunder which has not paid its proportionate share of such payment. Each Guarantor’s
right of contribution shall be subject to the terms and conditions of Section 2(c). The provisions of this Section 2(b) shall
in no respect limit the obligations and liabilities of any Guarantor to the Purchasers and each Guarantor shall remain liable
to the Purchasers for the full amount guaranteed by such Guarantor hereunder.

 

(c)
No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any
Guarantor by the Purchasers, no Guarantor shall be entitled to be subrogated to any of the rights of the Purchasers against the
Company or any other Guarantor or any collateral security or guarantee or right of offset held by the Purchasers for the payment
of the Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Company or
any other Guarantor in respect of payments made by such Guarantor hereunder, until all amounts owing to the Purchasers by the
Company on account of the Obligations are indefeasibly paid in full. If any amount shall be paid to any Guarantor on account of
such subrogation rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by
such Guarantor in trust for the Purchasers, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by
such Guarantor, be turned over to the Purchasers in the exact form received by such Guarantor (duly indorsed by such Guarantor
to the Purchasers, if required), to be applied against the Obligations, whether matured or unmatured, in such order as the Purchasers
may determine.

 

    	 	3	 

     

    

 

(d)
Amendments, Etc. With Respect to the Obligations. Each Guarantor shall remain obligated hereunder notwithstanding that,
without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for
payment of any of the Obligations made by the Purchasers may be rescinded by the Purchasers and any of the Obligations continued,
and the Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee
therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended,
modified, accelerated, compromised, waived, surrendered or released by the Purchasers, and the Purchase Agreement and the other
Transaction Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented
or terminated, in whole or in part, as the Purchasers may deem advisable from time to time, and any collateral security, guarantee
or right of offset at any time held by the Purchasers for the payment of the Obligations may be sold, exchanged, waived, surrendered
or released. The Purchasers shall have no obligation to protect, secure, perfect or insure any Lien at any time held by them as
security for the Obligations or for the guarantee contained in this Section 2 or any property subject thereto.

 

(e) Guarantee
Absolute and Unconditional. Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of
any of the Obligations and notice of or proof of reliance by the Purchasers upon the guarantee contained in this Section 2 or
acceptance of the guarantee contained in this Section 2; the Obligations, and any of them, shall conclusively be deemed to
have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained
in this Section 2; and all dealings between the Company and any of the Guarantors, on the one hand, and the Purchasers, on
the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee
contained in this Section 2. Each Guarantor waives to the extent permitted by law diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon the Company or any of the Guarantors with respect to the Obligations.
Each Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed as a continuing,
absolute and unconditional guarantee of payment and performance without regard to (a) the validity or enforceability of the
Purchase Agreement or any other Transaction Document, any of the Obligations or any other collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to time held by the Purchasers, (b) any defense,
set-off or counterclaim (other than a defense of payment or performance or fraud by Purchasers) which may at any time be
available to or be asserted by the Company or any other Person against the Purchasers, or (c) any other circumstance
whatsoever (with or without notice to or knowledge of the Company or such Guarantor) which constitutes, or might be construed
to constitute, an equitable or legal discharge of the Company for the Obligations, or of such Guarantor under the guarantee
contained in this Section 2, in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing
its rights and remedies hereunder against any Guarantor, the Purchasers may, but shall be under no obligation to, make a
similar demand on or otherwise pursue such rights and remedies as they may have against the Company, any other Guarantor or
any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect
thereto, and any failure by the Purchasers to make any such demand, to pursue such other rights or remedies or to collect any
payments from the Company, any other Guarantor or any other Person or to realize upon any such collateral security or
guarantee or to exercise any such right of offset, or any release of the Company, any other Guarantor or any other Person or
any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability
hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law,
of the Purchasers against any Guarantor. For the purposes hereof, “demand” shall include the commencement and
continuance of any legal proceedings.

 

    	 	4	 

     

    

 

(f)
Reinstatement. The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the case
may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned
by the Purchasers upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company or any Guarantor,
or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the
Company or any Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made.

 

(g)
Payments. Each Guarantor hereby guarantees that payments hereunder will be paid to the Purchasers without set-off or counterclaim
in U.S. dollars at the address set forth or referred to in the Signature Pages to the Purchase Agreement.

 

3.
Representations and Warranties. Each Guarantor hereby makes the following representations and warranties to Purchasers
as of the date hereof:

 

(a)
Organization and Qualification. The Guarantor is duly organized, validly existing and in good standing under the laws of
the applicable jurisdiction set forth on Schedule 1, with the requisite corporate power and authority to own and use its properties
and assets and to carry on its business as currently conducted. The Guarantor has no subsidiaries other than those identified
as such on the Disclosure Schedules to the Purchase Agreement. The Guarantor is duly qualified to do business and is in good standing
as a foreign corporation in each jurisdiction in which the nature of the business conducted or property owned by it makes such
qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not, individually
or in the aggregate, (x) adversely affect the legality, validity or enforceability of any of this Guaranty in any material respect,
(y) have a material adverse effect on the results of operations, assets, or financial condition of the Guarantor or (z) adversely
impair in any material respect the Guarantor’s ability to perform fully on a timely basis its obligations under this Guaranty
(a “Material Adverse Effect”).

 

    	 	5	 

     

    

 

(b)
Authorization; Enforcement. The Guarantor has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Guaranty, and otherwise to carry out its obligations hereunder. The execution and delivery
of this Guaranty by the Guarantor and the consummation by it of the transactions contemplated hereby have been duly authorized
by all requisite corporate action on the part of the Guarantor. This Guaranty has been duly executed and delivered by the Guarantor
and constitutes the valid and binding obligation of the Guarantor enforceable against the Guarantor in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable
principles of general application.

 

(c)
No Conflicts. Except as disclosed in the Disclosure Schedules to the Purchase Agreement, the execution, delivery and performance
of this Guaranty by the Guarantor and the consummation by the Guarantor of the transactions contemplated thereby do not and will
not (i) conflict with or violate any provision of its Certificate of Incorporation or By-laws or (ii) conflict with, constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights
of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Guarantor is a
party, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of
any court or governmental authority to which the Guarantor is subject (including Federal and State securities laws and regulations),
or by which any material property or asset of the Guarantor is bound or affected, except in the case of each of clauses (ii) and
(iii), such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as could not, individually
or in the aggregate, have or result in a Material Adverse Effect. The business of the Guarantor is not being conducted in violation
of any law, ordinance or regulation of any governmental authority, except for violations which, individually or in the aggregate,
do not have a Material Adverse Effect.

 

(d)
Consents and Approvals. Except as disclosed in the Disclosure Schedules to the Purchase Agreement, the Guarantor is not
required to obtain any consent, waiver, authorization or order of, or make any filing or registration with, any court or other
federal, state, local, foreign or other governmental authority or other person in connection with the execution, delivery and
performance by the Guarantor of this Guaranty.

 

    	 	6	 

     

    

 

(e)
Purchase Agreement. The representations and warranties of the Company set forth in the Purchase Agreement as they relate
to such Guarantor, each of which is hereby incorporated herein by reference, are true and correct as of each time such representations
are deemed to be made pursuant to such Purchase Agreement, and the Purchasers shall be entitled to rely on each of them as if
they were fully set forth herein, provided that each reference in each such representation and warranty to the Company’s
knowledge shall, for the purposes of this Section 3, be deemed to be a reference to such Guarantor’s knowledge.

 

(f)
[Intentionally Omitted].

 

4.
Covenants.

 

(a)
Each Guarantor covenants and agrees with the Purchasers that, from and after the date of this Guarantee until the Obligations
shall have been indefeasibly paid in full, such Guarantor shall take, and/or shall refrain from taking, as the case may be, each
commercially reasonable action that is necessary to be taken or not taken, as the case may be, so that no Event of Default (as
defined in the Debentures) is caused by the failure to take such action or to refrain from taking such action by such Guarantor.

 

(b)
So long as any of the Obligations are outstanding, unless Purchasers holding at least 67% of the aggregate principal amount of
the then outstanding Debentures shall otherwise consent in writing, each Guarantor will not directly or indirectly on or after
the date of this Guarantee:

 

i.
other than Permitted Indebtedness (as defined in the Debenture), enter into, create, incur, assume or suffer to exist any indebtedness
for borrowed money of any kind, including but not limited to, a guarantee, on or with respect to any of its property or assets
now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

ii.
other than Permitted Liens (as defined in the Debenture), enter into, create, incur, assume or suffer to exist any liens of any
kind, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income
or profits therefrom;

 

iii.
amend its certificate of incorporation, bylaws or other charter documents so as to adversely affect any rights of any Purchaser;

 

iv.
repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its securities
or debt obligations;

 

v.
pay cash dividends on any equity securities of the Company;

 

    	 	7	 

     

    

 

vi.
enter into any transaction with any Affiliate of the Guarantor which would be required to be disclosed in any public filing of
the Company with the Commission, unless such transaction is made on an arm’s-length basis and expressly approved by a majority
of the disinterested directors of the Company (even if less than a quorum otherwise required for board approval); or

 

vii.
enter into any agreement with respect to any of the foregoing.

 

5.
Miscellaneous.

 

(a)
Amendments in Writing. None of the terms or provisions of this Guarantee may be waived, amended, supplemented or otherwise
modified except in writing by the Purchasers.

 

(b)
Notices. All notices, requests and demands to or upon the Purchasers or any Guarantor hereunder shall be effected in the
manner provided for in the Purchase Agreement, provided that any such notice, request or demand to or upon any Guarantor shall
be addressed to such Guarantor at its notice address set forth on Schedule 5(b).

 

(c)
No Waiver By Course Of Conduct; Cumulative Remedies. The Purchasers shall not by any act (except by a written instrument
pursuant to Section 5(a)), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or
to have acquiesced in any default under the Transaction Documents or Event of Default. No failure to exercise, nor any delay in
exercising, on the part of the Purchasers, any right, power or privilege hereunder shall operate as a waiver thereof. No single
or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by the Purchasers of any right or remedy hereunder on any one occasion shall
not be construed as a bar to any right or remedy which the Purchasers would otherwise have on any future occasion. The rights
and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights
or remedies provided by law.

 

(d)
Enforcement Expenses; Indemnification.

 

(i)
Each Guarantor agrees to pay, or reimburse the Purchasers for, all its costs and expenses to the extent reasonable incurred in
collecting against such Guarantor under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under
this Guarantee and the other Transaction Documents to which such Guarantor is a party, including, without limitation, the reasonable
fees and disbursements of counsel to the Purchasers.

 

    	 	8	 

     

    

 

(ii)
Each Guarantor agrees to pay, and to save the Purchasers harmless from, any and all liabilities with respect to, or resulting
from any delay in paying, any and all stamp, excise, sales or other taxes (not including income taxes) which may be payable or
determined to be payable in connection with any of the transactions contemplated by this Guarantee.

 

(iii)
Each Guarantor agrees to pay, and to save the Purchasers harmless from, any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution,
delivery, enforcement, performance and administration of this Guarantee to the extent the Company would be required to do so pursuant
to the Purchase Agreement.

 

(iv)
The agreements in this Section shall survive repayment of the Obligations and all other amounts payable under the Purchase Agreement
and the other Transaction Documents.

 

(e)
Successor and Assigns. This Guarantee shall be binding upon the successors and assigns of each Guarantor and shall inure
to the benefit of the Purchasers and their respective successors and assigns; provided that no Guarantor may assign, transfer
or delegate any of its rights or obligations under this Guarantee without the prior written consent of the Purchasers, Company,
and Guarantors (and any such assignment or transfer in violation of the aforementioned provision shall be void).

 

(f)
Set-Off. Each Guarantor hereby irrevocably authorizes the Purchasers at any time and from time to time while an Event of
Default under any of the Transaction Documents shall have occurred and be continuing, without notice to such Guarantor or any
other Guarantor, any such notice being expressly waived by each Guarantor, to set-off and appropriate and apply any and all deposits,
credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by the Purchasers to or for the credit or the account of such Guarantor, or any part thereof
in such amounts as the Purchasers may elect, against and on account of the obligations and liabilities of such Guarantor to the
Purchasers hereunder and claims of every nature and description of the Purchasers against such Guarantor, in any currency, whether
arising hereunder, under the Purchase Agreement, any other Transaction Document or otherwise, as the Purchasers may elect, whether
or not the Purchasers have made any demand for payment and although such obligations, liabilities and claims may be contingent
or unmatured. The Purchasers shall notify such Guarantor promptly of any such set-off and the application made by the Purchasers
of the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such set-off and application.
The rights of the Purchasers under this Section are in addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Purchasers may have.

 

    	 	9	 

     

    

 

(g)
Counterparts. This Guarantee may be executed by one or more of the parties to this Guarantee on any number of separate
counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same
instrument.

 

(h)
Severability. Any provision of this Guarantee which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

 

(i)
Section Headings. The Section headings used in this Guarantee are for convenience of reference only and are not to affect
the construction hereof or be taken into consideration in the interpretation hereof.

 

(j)
Integration. This Guarantee and the other Transaction Documents represent the agreement of the Guarantors and the Purchasers
with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties
by the Purchasers relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other
Transaction Documents.

 

(k)
Governing Laws. All questions concerning the construction, validity, enforcement and interpretation of this Guarantee shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each of the Company and the Guarantors agree that all proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Guarantee (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state
and federal courts sitting in the City of New York, Borough of Manhattan. Each of the Company and the Guarantors 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 proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service
of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Guarantee
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 hereto hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising
out of or relating to this Guarantee or the transactions contemplated hereby.

 

    	 	10	 

     

    

 

(l)
Acknowledgements. Each Guarantor hereby acknowledges that:

 

(i)
it has been advised by counsel in the negotiation, execution and delivery of this Guarantee and the other Transaction Documents
to which it is a party;

 

(ii)
the Purchasers have no fiduciary relationship with or duty to any Guarantor arising out of or in connection with this Guarantee
or any of the other Transaction Documents, and the relationship between the Guarantors, on the one hand, and the Purchasers, on
the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

(iii)
no joint venture is created hereby or by the other Transaction Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Guarantors and the Purchasers.

 

(m)
Additional Guarantors. Until the Obligations shall have been indefeasibly paid in full, the Company shall cause each of
its subsidiaries formed or acquired on or subsequent to the date hereof to become a Guarantor for all purposes of this Guarantee
by executing and delivering an

Assumption
Agreement in the form of Annex 1 hereto.

 

(n)
Release of Guarantors. Each Guarantor will be released from all liability hereunder concurrently with the indefeasible
repayment in full of all amounts owed under the Purchase Agreement, the Debentures and the other Transaction Documents.

 

(o)
Seniority. The Obligations of each of the Guarantors hereunder rank senior in priority to any other Indebtedness (as defined
in the Purchase Agreement) of such Guarantor, except with respect to Senior Indebtedness (as defined in the Debentures).

 

(p)
WAIVER OF JURY TRIAL. EACH GUARANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, THE PURCHASERS, HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE AND FOR ANY COUNTERCLAIM THEREIN.

 

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

 

 

(Signature
Pages Follow)

 

    	 	11	 

     

    

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Guarantee to be duly executed and delivered as of the date first
above written.

 

	MAGNEGAS
    WELDING SUPPLY – SOUTHEAST, LLC	 
	 	 	 
	By:	                             	 
	Name:
    	 	 
	Title:
    	 	 
	 	 	 
	MAGNEGAS REAL ESTATE HOLDINGS, LLC	 
	 	 	 
	By:
    		 
	Name:
    	 	 
	Title:
    	 	 
	 	 	 
	MAGNEGAS PRODUCTION, LLC	 
	 	 	 
	By:
    		 
	Name:
    	 	 
	Title:
    	 	 
	 	 	 
	MAGNEGAS WELDING SUPPLY - SOUTH, LLC	 
	 	 	 
	By:
    		 
	Name:
    	 	 
	Title:
    	 	 
	 	 	 
	MAGNEGAS WELDING SUPPLY - WEST, LLC	 
	 	 	 
	By:
    		 
	Name:
    	 	 
	Title:
    	 	 
	 	 	 
	MAGNEGAS LIMITED	 
	 	 	 
	By:
    		 
	Name:
    	 	 
	Title:
    	 	 

 

    	 	12	 

     

    

 

	MAGNEGAS IRELAND LTD.	 
	 	                              	 
	By:
    		 
	Name:
    	 	 
	Title:
    	 	 
	 	 	 
	TARONIS-TGS, LLC	 
	 	 	 
	By:
    		 
	Name:
    	 	 
	Title:
    	 	 
	 	 	 
	TECH-GAS SOLUTIONS, LLC	 
	 	 	 
	By:
    		 
	Name:
    	 	 
	Title:
    	 	 
	 	 	 
	TARONIS NETHERLANDS, B.V.	 
	 	 	 
	By:
    		 
	Name:
    	 	 
	Title:
    	 	 

 

    	 	13	 

     

    

 

SCHEDULE
1

 

GUARANTORS

 

The
following are the names, notice addresses and jurisdiction of organization of each Guarantor.

 

	 	 	JURISDICTION 
OF 
INCORPORATION	 	COMPANY 
OWNED BY 
PERCENTAGE	 
	 	 	 	 	 	 
	MagneGas Welding Supply – Southeast, LLC	 	Florida	 	 	100	%
	 	 	 	 	 	 	 
	MagneGas Real Estate Holdings, LLC	 	Delaware	 	 	100	%
	 	 	 	 	 	 	 
	MagneGas Production, LLC	 	Delaware	 	 	100	%
	 	 	 	 	 	 	 
	MagneGas Welding Supply – South, LLC	 	Texas	 	 	100	%
	 	 	 	 	 	 	 
	MagneGas Welding Supply - West, LLC	 	California	 	 	100	%
	 	 	 	 	 	 	 
	MagneGas Limited	 	United Kingdom	 	 	100	%
	 	 	 	 	 	 	 
	MagneGas Ireland Ltd.	 	Republic of Ireland	 	 	100	%
	 	 	 	 	 	 	 
	Taronis-TGS, LLC	 	Delaware	 	 	100	%
	 	 	 	 	 	 	 
	Tech-Gas Solutions, LLC	 	Texas	 	 	100% (owned by Taronis-TGS, LLC)	 
	 	 	 	 	 	 	 
	Taronis Netherlands, B.V.	 	Kingdom of the Netherlands	 	 	100% (owned by MagneGas Ireland Ltd.)	 

 

    	 	14	 

     

    

 

Annex
1 to

SUBSIDIARY
GUARANTEE

 

ASSUMPTION
AGREEMENT, dated as of ____ __, ______ made by ______________________________, a ______________ corporation (the “Additional
Guarantor”), in favor of the Purchasers pursuant to the Purchase Agreement referred to below. All capitalized terms
not defined herein shall have the meaning ascribed to them in such Purchase Agreement.

 

W
I T N E S S E T H :

 

WHEREAS,
Taronis Fuels, Inc., a Delaware corporation (the “Company”) and the Purchasers have entered into a Securities
Purchase Agreement, dated as of ___, 2020 (as amended, supplemented or otherwise modified from time to time, the “Purchase
Agreement”);

 

WHEREAS,
in connection with the Purchase Agreement, the Subsidiaries of the Company (other than the Additional Guarantor) have entered
into the Subsidiary Guarantee, dated as of ____, 2020 (as amended, supplemented or otherwise modified from time to time, the “Guarantee”)
in favor of the Purchasers;

 

WHEREAS,
the Purchase Agreement requires the Additional Guarantor to become a party to the Guarantee; and

 

WHEREAS,
the Additional Guarantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the
Guarantee;

 

NOW,
THEREFORE, IT IS AGREED:

 

1.
Guarantee. By executing and delivering this Assumption Agreement, the Additional Guarantor, as provided in Section 5(m)
of the Guarantee, hereby becomes a party to the Guarantee as a Guarantor thereunder with the same force and effect as if originally
named therein as a Guarantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and
liabilities of a Guarantor thereunder. The information set forth in Annex 1 hereto is hereby added to the information set forth
in Schedule 1 to the Guarantee. The Additional Guarantor hereby represents and warrants that each of the representations and warranties
contained in Section 3 of the Guarantee is true and correct on and as the date hereof as to such Additional Guarantor (after giving
effect to this Assumption Agreement) as if made on and as of such date.

 

2.
Governing Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK.

 

    	 	15	 

     

    

 

IN
WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above
written.

 

	 	[ADDITIONAL
GUARANTOR]
	 	 	 
	 	By:	        
          
	 	Name:	 
	 	Title:	 

 

    	 	16Exhibit 10.1

 

SUPPLEMENT AGREEMENT

 

THIS SUPPLEMENT AGREEMENT (this “Agreement”)
is made this 10th day of August, 2020, by and among STRATEGIC EDUCATION, INC., a Maryland corporation, formerly
known as Strayer Education, Inc., a Maryland corporation (the “Borrower”), STRAYER
UNIVERSITY, LLC, a Maryland limited liability company, formerly known as The Strayer University Corporation, a Maryland corporation,
formerly known as Strayer University, Inc., a Maryland corporation (and successor by merger to New York Code and Design Academy, Inc.,
a Delaware corporation, The New York Code and Design Academy Pennsylvania, Inc., a Delaware corporation, NYCDA Realty, LLC,
a New York limited liability company, and DevMountain, LLC, a Utah limited liability company) (“SU”),
Capella Education Company, a Minnesota corporation (“Capella”),
CAPELLA UNIVERSITY, LLC, a Minnesota limited liability company, formerly
known as Capella University, Inc., a Minnesota corporation (“CU”), CAPELLA LEARNING SOLUTIONS, LLC,
a Delaware limited liability company (“CLS”), SOPHIA LEARNING, LLC, a Delaware limited liability company
(“Sophia”), and HACKBRIGHT ACADEMY, INC., a Delaware corporation (“Hackbright”
and together with SU, Capella, CU, CLS and Sophia, collectively, the “Subsidiary Loan Parties,” and each, a
“Subsidiary Loan Party,” and the Subsidiary Loan Parties together with the Borrower, collectively, the “Loan
Parties,” and individually, a “Loan Party”), TRUIST BANK, a North Carolina banking corporation,
successor by merger to SunTrust Bank, a Georgia banking corporation (“Truist”), BANK OF AMERICA, N.A.
(“Bank of America,” and together with Truist, collectively, the “Increase Lenders,” and each,
an “Increase Lender”), and TRUIST BANK, successor by merger to SunTrust Bank, as administrative agent
for the Lenders referred to below (the “Administrative Agent”), as issuing bank (the “Issuing Bank”),
and as swingline lender (the “Swingline Lender”). Reference is made to the Second Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of November 8, 2012, by and among the Borrower, certain banks and other financial
institutions from time to time parties thereto (the “Lenders”), and the Administrative Agent, as amended by
the First Amendment to Second Amended and Restated Revolving Credit and Term Loan Agreement, dated as of July 2, 2015, by
and among the Borrower, the other Loan Parties party thereto, the Lenders party thereto, and the Administrative Agent, as amended
by the Supplement and Joinder Agreement, dated as of July 2, 2015, by and among the Borrower, the other Loan Parties party
thereto, the Lenders party thereto, and the Administrative Agent, as amended by the Waiver to Second Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of January 12, 2016, by and among the Borrower, the other Loan Parties party thereto,
the Lenders party thereto and the Administrative Agent, as amended by the Second Amendment to Second Amended and Restated Revolving
Credit and Term Loan Agreement and Amendment to Other Loan Documents, dated as of August 1, 2018, by and among the Borrower,
the other Loan Parties, the Lenders party thereto, and the Administrative Agent (as further amended, supplemented, amended and
restated or otherwise modified through the date hereof, the “Credit Agreement”). Capitalized terms used herein
and not herein defined shall have the meanings given to such terms in the Credit Agreement.

 

    

    

    

 

RECITALS

 

WHEREAS, the Increase Lenders, which are parties
to the Credit Agreement immediately prior to the date hereof, have agreed to increase their respective Revolving Commitments; and

 

WHEREAS, after giving effect hereto, the Revolving
Commitments and the Aggregate Revolving Commitments and the total Commitments of the Lenders, will be adjusted as reflected on
Annex 1 attached hereto, such that, after giving effect hereto, the Aggregate Revolving Commitments will be $350,000,000;
and

 

WHEREAS, the Administrative Agent is willing
to give effect hereto provided that the Borrower, the other Loan Parties, the Administrative Agent and the Increase Lenders enter
into this Agreement;

 

NOW, THEREFORE, in consideration of the premises
and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto
hereby agree as follows:

 

AGREEMENT

 

1.            Incorporation
of Recitals. The Recitals hereto are incorporated herein by reference to the same extent and with the same force and effect
as if fully set forth herein.

 

2.            Intentionally
Deleted.

 

3.            Funding
of Commitments. Pursuant to Section 2.2 of the Credit Agreement, each Increase Lender hereby agrees to fund its respective
Commitment with each Lender having the resulting Revolving Commitment and total Commitment set forth on Annex 1 attached
hereto.

 

4.            Intentionally
Deleted.

 

5.            Intentionally
Deleted.

 

6.            Effectiveness
of Agreement. This Agreement and the amendments contained herein shall become effective on the date (the “Effective
Date”) when each of the conditions set forth below shall have been fulfilled to the satisfaction of the Administrative
Agent:

 

(a)          The
Administrative Agent shall have received counterparts of this Agreement, duly executed and delivered on behalf of the Borrower,
the other Loan Parties, the Administrative Agent and the Lenders party hereto, as well as allonges to the Revolving Credit Notes
or amended and restated Revolving Credit Notes and/or new Revolving Credit Notes, in the principal amount of each Increase Lender’s
Revolving Commitment (after giving effect to this Agreement), made payable to the order of such Increase Lender, duly executed
and delivered by all parties thereto (collectively, the “Modification Documents”).

 

(b)          After
giving effect hereto, no event shall have occurred and be continuing that constitutes a Default or an Event of Default.

 

    

    

    

 

(c)          All
representations and warranties of the Borrower contained in the Credit Agreement, and all representations and warranties of each
other Loan Party in each Loan Document to which it is a party, shall be true and correct in all material respects (or, if qualified
by materiality, in all respects) at the Effective Date as if made on and as of such Effective Date (except to the extent stated
to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material
respects (or, if qualified by materiality, in all respects) as of such earlier date).

 

(d)          The
Borrower shall have delivered to the Administrative Agent a certificate of the Secretary or Assistant Secretary of each Loan Party
in form and substance reasonably acceptable to the Administrative Agent, attaching and certifying copies of its bylaws and of the
resolutions of its boards of directors, or comparable organizational documents and authorizations, authorizing the execution, delivery
and performance of the Modification Documents to which it is a party and certifying the name, title and true signature of each
officer of such Loan Party executing the Modification Documents to which it is a party.

 

(e)          The
Administrative Agent and the Joint Lead Arrangers shall have received reasonably satisfactory evidence that the Borrower is in
compliance with the financial covenants contained in Article 6 of the Credit Agreement (including Section 6.3) on a pro
forma basis after giving effect hereto.

 

(f)           The
Administrative Agent shall have received evidence that the Borrower has received, or will receive contemporaneously with the effectiveness
hereof, gross proceeds of an equity offering in an amount not less than $225,000,000.

 

(g)          All
documents delivered pursuant to this Agreement must be of form and substance reasonably satisfactory to the Administrative Agent.

 

(h)          Payment
by the Borrower in immediately available funds of the fees and expenses required to be paid by Section 12 of this Agreement.

 

7.            Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Borrower, the other Loan Parties, the Lenders
and the Administrative Agent and their respective successors and assigns.

 

8.            No
Further Amendments. Nothing in this Agreement or any prior amendment to the Loan Documents shall require the Administrative
Agent or any Lender to grant any further amendments to the terms of the Loan Documents. Each of the Borrower and each other Loan
Party acknowledges and agrees that there are no defenses, counterclaims or setoffs against any of their respective obligations
under the Loan Documents.

 

9.            Representations
and Warranties. Each of the Borrower and each other Loan Party represents and warrants that (i) this Agreement has been
duly authorized, executed and delivered by it in accordance with resolutions adopted by its board of directors or comparable managing
body and (ii) all other representations and warranties made by the Borrower and each other Loan Party in the Loan Documents
to which it is a party, are true and correct in all material respects (or, if qualified by materiality, in all respects) on the
Effective Date (except to the extent stated to relate to a specific earlier date, in which case such representations and warranties
are true and correct in all material respects (or, if qualified by materiality, in all respects) as of such earlier date). Each
of the Borrower and each other Loan Party represents and warrants to the Administrative Agent, the Lenders, the Issuing Bank and
the Swingline Lender that, after giving effect to the terms of this Agreement, no Default has occurred and been continuing.

 

    

    

    

 

10.          Confirmation
of Lien. Each of the Borrower and each other Loan Party hereby acknowledges and agrees that the Collateral is and shall remain
in all respects subject to the lien, charge and encumbrance of the Credit Agreement and the other Loan Documents and nothing herein
contained, and nothing done pursuant hereto, shall adversely affect or be construed to adversely affect such lien, charge or encumbrance
or the priority thereof over other liens, charges, encumbrances or conveyances.

 

11.          Ratification.
Other than as set forth herein, the terms of the Credit Agreement and the other Loan Documents shall remain in full force and effect
and are ratified and affirmed by the Borrower and each other Loan Party.

 

12.          Fees
and Expenses. The Borrower agrees to pay the reasonable and documented out-of-pocket costs and expenses of the Administrative
Agent and its Affiliates, including the fees, charges and disbursements of counsel for the Administrative Agent and its Affiliates,
in connection with the preparation, due diligence and administration of this Agreement.

 

13.          Severability.
Any provision of this Agreement held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction,
be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability
of the remaining provisions hereof; and the illegality, invalidity or unenforceability of a particular provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

14.          Governing
Law. This Agreement shall be construed in accordance with and be governed by the law (without giving effect to the conflict
of law principles thereof) of the Commonwealth of Virginia. THIS AGREEMENT WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED
BY THE LAWS OF THE COMMONWEALTH OF VIRGINIA.

 

15.          Counterparts.
This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including
by telecopy or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and
the same instrument. It shall not be necessary that the signature of, or on behalf of, each party, or that the signatures of the
persons required to bind any party, appear on more than one counterpart.

 

[SIGNATURES ON FOLLOWING PAGES]

 

    

    

    

 

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

 

	 	BORROWER:
	 	 
	 	STRATEGIC EDUCATION, INC., a Maryland corporation, formerly known as Strayer Education, Inc., a Maryland corporation
	 	 	 
	 	By:	/s/ Daniel Jackson
	 	Name:	Daniel Jackson
	 	Title:	Executive Vice President, Chief Financial
	 	 	Officer, and Treasurer
	 	 	 
	 	 	 
	 	SUBSIDIARY LOAN PARTIES:
	 	 
	 	STRAYER UNIVERSITY, LLC, a Maryland limited liability company
	 	 	 
	 	By:	/s/ Cale Holman
	 	Name:	Cale Holman
	 	Title:	Provost and Chief Academic Officer, and
	 	 	Acting President

 

[SIGNATURES CONTINUE
ON FOLLOWING PAGES]

 

[SIGNATURE PAGE TO SUPPLEMENT
AGREEMENT]

 

    

    

    

 

	 	Capella Education Company, a Minnesota corporation
	 	 
	 	By:	/s/ Daniel Jackson
	 	Name:	Daniel Jackson
	 	Title:	Vice President and Treasurer
	 	 	 
	 	CAPELLA UNIVERSITY, LLC, a Minnesota limited liability company
	 	 
	 	By:	/s/ Richard Senese
	 	Name:	Dr. Richard Senese
	 	Title:	President
	 	 	 
	 	CAPELLA LEARNING SOLUTIONS, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Daniel Jackson
	 	Name:	Daniel Jackson
	 	Title:	Treasurer
	 	 	 
	 	SOPHIA LEARNING, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Daniel Jackson
	 	Name:	Daniel Jackson
	 	Title:	Treasurer

 

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT]

 

    

    

    

 

	 	HACKBRIGHT ACADEMY, INC., a Delaware corporation
	 	 	 
	 	By:	/s/ Daniel Jackson
	 	Name:	Daniel Jackson
	 	Title:	President and Chief Financial Officer

 

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

    

    

    

 

	 	INCREASE LENDERS:
	 	 
	 	TRUIST BANK, successor by merger to SunTrust Bank
	 	as a Lender
	 	 	 
	 	By:	/s/ Matthew J. Davis      
	 	Name:	Matthew J. Davis
	 	Title:	Senior Vice President

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

[SIGNATURE
PAGE TO SUPPLEMENT AGREEMENT]

 

    

    

    

 

	 	BANK OF AMERICA, N.A.
	 	as a Lender
	 	 	 
	 	By:	/s/ Monica Sevila       
	 	Name:	Monica Sevila
	 	Title:	Senior Vice President

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

[SIGNATURE PAGE TO SUPPLEMENT
AGREEMENT]

 

    

    

    

 

Consented and agreed to:

 

TRUIST BANK, successor by merger to SunTrust Bank, as
Administrative Agent, as Issuing Bank and as Swingline Lender

 

	By:	/s/ Matthew J. Davis    	 
	Name:	Matthew J. Davis	 
	Title:	Senior Vice President	 

 

[SIGNATURE PAGE TO SUPPLEMENT
AGREEMENT]

 

    

    

    

 

Annex 1

 

COMMITMENT AMOUNTS

 

	Lender	 	Revolving Commitment Amount	 
	Truist Bank, successor by merger to SunTrust Bank	 	$	115,000,000	 
	Bank of America, N.A.	 	$	75,000,000	 
	PNC Bank, National Association	 	$	55,000,000	 
	Bank of Montreal	 	$	35,000,000	 
	Associated Bank	 	$	20,000,000	 
	Bank of the West	 	$	20,000,000	 
	TD Bank, N.A.	 	$	20,000,000	 
	Atlantic Union Bank, successor by merger to Union Bank & Trust	 	$	10,000,000	 
	Total	 	$	350,000,000

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