Document:

TRANSITION
SERVICES AGREEMENT

 

THIS
TRANSITION SERVICES AGREEMENT (this “Agreement”), dated as of December 2, 2019 (the “Effective Date”),
is made and entered into by and between Taronis Technologies, Inc., a Delaware corporation (“Tech”), and Taronis
Fuels, Inc., a Delaware corporation and wholly owned subsidiary of Tech (“Fuels”). Each of Tech and Fuels may
be referred to herein individually as a “Party” and collectively as the “Parties.” For purposes
of this Agreement, capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to such
terms in the Master Distribution Agreement (as defined below).

 

RECITALS

 

WHEREAS,
Tech is engaged, directly and indirectly, in the welding supply and gas distribution business and the manufacture and sale of
“MagneGas” and Venturi® Gasification systems used to create synthetic gases (“Fuels Business”)
as well as being engaged, directly and indirectly, in the water technology business (“Tech Business”);

 

WHEREAS,
the Board of Directors of Tech (the “Tech Board”) has determined that it is advisable and in the best interests
of Tech and Tech’s stockholders to separate Fuels’ businesses from that of Tech standing along, creating two independent
publicly traded companies (the “Distribution”);

 

WHEREAS,
to effectuate the Distribution, Tech and Fuels have entered into a Master Distribution Agreement, dated as of December 2, 2019
(the “Master Distribution Agreement”); and

 

WHEREAS,
to facilitate and provide for an orderly transition in connection with the Distribution, the Parties desire to enter into this
Agreement to set forth the terms pursuant to which each of the Parties shall provide Services to the other Party for a transitional
period;

 

NOW,
THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally
bound, hereby agree as follows:

 

Article
I. Services

 

Section
1.01 Services.

 

	 	(a)	With
    respect to each applicable service set forth on Schedule 1 hereto (the “Services”), the Party identified
    on Schedule 1 hereto as the “Provider” of such Service agrees to provide, or to cause one or more members of its
    Group to provide, such Service to the other Party (the “Recipient”), or any members of the Recipient’s
    Group, in each case for the period commencing on the Effective Date and ending on the earlier of (i) the date that a Party
    terminates the provision of such Service pursuant to Section 4.02 and (ii) the date set forth on Schedule 1 with respect to
    such Service (the “Service Period”). The Parties acknowledge and agree that the “Service” as
    described on Schedule 1 may be amended or modified, or added to with greater specificity, by the Parties following the Effective
    Date, via a revision of such Schedule 1 duly executed by an authorized officer of each of the Parties.
	 	 	 
	 	(b)	At
    any time during the term of this Agreement, either Party may request that the other Party provide or cause its Group to provide
    additional services hereunder (the “Additional Services”) by providing written notice of such request,
    it being understood that the Party that receives such request may in its sole discretion decline to provide such requested
    Additional Services. If a Provider agrees to undertake to provide the Additional Services, upon the mutual written agreement
    as to the nature, cost, duration and scope of such Additional Services, Tech and Fuels shall supplement in writing the Services
    set forth on Schedule 1 to include such Additional Services. Except where the context otherwise indicates or requires, any
    such Additional Services specified on Schedule 1 or so agreed upon in writing by the Parties shall be deemed to be “Services”
    under this Agreement.

 

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Section
1.02 Performance of Services.

 

	 	(a)	The
    Provider shall perform, or shall cause one or more members of its Group to perform, all Services to be provided by the Provider
    in a manner that is based on its past practice and that is substantially similar in all material respects to such Services
    (or analogous services) provided by or on behalf of Tech or any of its Subsidiaries with respect to the Fuels Business or
    Tech Business, as applicable, during the twelve (12) months prior to the Effective Date (collectively referred to as the “Level
    of Service”).
	 	 	 
	 	(b)	Nothing
    in this Agreement shall require the Provider to perform or cause to be performed any Service to the extent that the manner
    of such performance would constitute a violation of any applicable Law or any existing contract or agreement with a Third
    Party. As between the Parties, the Provider shall be the party that determines, in its sole discretion, whether to communicate
    with and shall be the party that communicates with Third Parties in connection with any necessary Third Party consents required
    under any existing contract or agreement with a Third Party to allow the Provider to perform, or cause to be performed, Services
    to be provided to the Recipient hereunder, with any such communications to be in the sole discretion of Provider. Unless otherwise
    agreed in writing by the Parties, all reasonable and documented out-of-pocket costs and expenses (if any) incurred by any
    Party or any member of its Group in connection with obtaining any Third Party consent that is required to allow the Provider
    to perform or cause to be performed any Services hereunder shall be paid for by the Recipient. If, with respect to a Service,
    a required Third-Party consent has not been obtained, or the performance of a Service by or on behalf of the Provider would
    constitute a violation of any applicable Law, the Provider shall have no obligation to perform or cause to be performed such
    Service.
	 	 	 
	 	(c)	The
    Provider shall not be obligated to perform or to cause to be performed any Service in a manner that is materially more burdensome
    (with respect to service quality, service quantity, or allocation of personnel or resources) than such services (or analogous
    services) provided by or on behalf of Tech or any of its Subsidiaries with respect to the Fuels Business or Tech Business,
    as applicable, during the 12-month period prior to the Effective Date. Without limiting the generality of the foregoing, the
    Provider shall not be required to maintain the employment of any specific employee(s), hire additional employees or third-party
    service providers or purchase, lease or license any additional equipment, software or other assets or properties in order
    the provide the Services hereunder. If the Recipient requests that the Provider perform or cause to be performed any Service
    in a manner that exceeds the Level of Service, then the Parties shall reasonably cooperate and act in good faith to determine
    whether the Provider will be required to provide such requested higher Level of Service. If the Parties determine that the
    Provider shall provide the requested higher Level of Service, then such higher Level of Service shall be documented in a written
    agreement signed by the Parties, which may be an amendment or addendum to this Agreement.

 

	 	(d)	Neither
    the Provider nor any member of its Group shall be required to perform or to cause to be performed any of the Services for
    the benefit of any Third Party or any other Person other than the Recipient and the members of its Group. EXCEPT AS EXPRESSLY
    PROVIDED IN THIS Section 1.02 OR Section 6.04, EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL SERVICES ARE PROVIDED ON AN “AS-IS”
    BASIS, THAT THE RECIPIENT ASSUMES ALL RISK AND LIABILITY ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON THE SERVICES,
    AND THAT THE PROVIDER MAKES NO OTHER REPRESENTATIONS OR GRANTS ANY WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION
    OF LAW, BY STATUTE OR OTHERWISE, WITH RESPECT TO THE SERVICES. EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER
    WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE
    OR PURPOSE OR THE NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.
	 	 	 
	 	(e)	Each
    Party shall be responsible for its own compliance with any and all Laws applicable to its performance under this Agreement.
    No Party shall knowingly take any action in violation of any such applicable Law.

 

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Section
1.03 Determination of Allocated Costs; Dispute Resolution; Payment.

 

	 	(a)	From
    and after the Effective Date and during the Service Period, the actual costs to applicable Provider of providing the Services
    to the Recipient, including, without limitation, the salaries, employment taxes and benefits applicable to the employees of
    the Provider actually engaged in providing the Services, based on the percentage of time spent by such employees in providing
    such services relative to the time spent by such employees on matters not relating to such services, plus applicable allocated
    overhead and other expenses incurred, in each case without mark-up (the “Allocated Costs”), will be determined
    and allocated in good faith by the Parties jointly, on a monthly basis, commencing as of the end of the first (1st)
    calendar month following the Effective Date and continuing thereafter as of the end of each succeeding one (1) calendar month
    period. The Allocated Costs so determined by the Parties shall be subject to quarterly review (“Review Period”)
    and approval by the Audit Committee of each Party, or such other committee as determined by the Board of Directors of each
    Party (the “Audit Committees”).
	 	 	 
	 	(b)	In
    the event of a dispute between the Parties or their applicable Audit Committees, concerning the proposed Allocated Costs in
    respect of any month(s) comprising a Review Period, then the Parties shall mutually select and engage a recognized certified
    public accountant acceptable to each of the them to review disputed items and to determine the Allocated Costs for the month(s)
    comprising the Review Period in question; provided, however, if such Parties cannot agree on a mutually acceptable certified
    public accountant, each Party or such party’s Audit Committee, each shall name a recognized certified public accountant
    and those two certified public accountants shall select a third recognized certified public accountant which shall be used
    for the purposes of this Section 1.03(b). The selected certified public accountant’s opinion concerning the Allocated
    Costs for the quarterly period in question shall be final and binding on all Parties. The expenses of the certified public
    accountant will be borne by each Party in the same proportion by which their respective positions as initially presented to
    the certified public accountant differs from the final resolution as determined by the certified public accountant.

 

	 	(c)	The
    Allocated Costs for each month comprising a Review Period during the Service Period, as finally determined pursuant to Section
    1.03(a) or Section 1.03(b), as applicable, will be invoiced, in arrears, by the applicable Provider to the applicable Recipient
    as set forth in Article III. Together with any invoice for Allocated Costs, the Provider shall provide the Recipient with
    reasonable documentation, including any additional documentation reasonably requested by the Recipient to the extent that
    such documentation is in the Provider’s or its Group’s possession or control, to confirm the calculation of the
    Allocated Costs.

 

Section
1.04 Changes in the Performance of Services. Subject to the performance Level of Service, the Provider may make changes from
time to time in the manner of performing the Services if the Provider is making similar changes in performing analogous services
for itself or its Group and if the Provider furnishes to the Recipient reasonable prior written notice of such changes. No such
change shall materially adversely affect the timeliness or quality of the applicable Service.

 

Section
1.05 Transitional Nature of Services. The Parties acknowledge the transitional nature of the Services and agree to reasonably
cooperate and to use commercially reasonable efforts to effectuate a smooth transition of the Services from the Provider to the
Recipient (or its designee).

 

Section
1.06 Subcontracting. A Provider may hire or engage one or more Third Parties to perform any or all of its obligations under
this Agreement; provided, however, that (a) such Provider shall use the same degree of care (but at least reasonable care) in
selecting each such Third Party as it would if such Third Party was being retained to provide similar services to the Provider
or its Group and (b) such Provider shall in all cases remain primarily responsible for all of its obligations under this Agreement
with respect to the Services.

 

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Article
II. OTHER ARRANGEMENTS

 

Section
2.01 Access. The Recipient shall, and shall cause the members of its Group to, allow the Provider and the members of its Group
and their respective Representatives reasonable access to the facilities of the Recipient and the members of its Group that is
necessary for the Provider to fulfill its obligations under this Agreement. In addition to the foregoing right of access, the
Recipient shall, and shall cause the members of its Group to, afford the Provider and the members of its Group and their respective
Representatives, upon reasonable advance written notice, reasonable access during normal business hours to the facilities, Information,
systems, infrastructure and personnel of the Recipient and the members of its Group as reasonably necessary for the Provider to
verify the adequacy of internal controls over information technology, reporting of financial data and related processes employed
in connection with the Services being provided by the Provider or the members of the Provider Group, including in connection with
verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided that (i) such access shall not unreasonably
interfere with any of the business or operations of the Recipient or any member of its Group and (ii) in the event that the Recipient
determines that providing such access could be commercially detrimental, violate any applicable Law or agreement or waive any
attorney-client privilege, then the Parties shall use commercially reasonable efforts to permit such access in a manner that avoids
such harm and consequence. The Provider agrees that all of its and its Group’s employees shall, and that it shall use commercially
reasonable efforts to cause its Representatives’ employees to, when on the property of the Recipient or a member of the
Recipient’s Group, or when given access to any facilities, Information, systems, infrastructure or personnel of the Recipient
or a member of the Recipient’s Group, conform to the policies and procedures of the Recipient and the members of the Recipient’s
Group, as applicable, concerning health, safety, conduct and security which are made known or provided to the Provider from time
to time.

 

Section
2.02 Audit Assistance. Each of the Parties and the members of their respective Groups are or may be subject to regulation
and audit by a Governmental Authority (including a Governmental Authority with respect to Taxes) or parties to contracts with
such Parties or the members of their Groups. If such a Third Party exercises its right to examine or audit such Party’s
or a member of its Group’s books, records, documents or accounting practices and procedures pursuant to such applicable
Law or contract provisions, and such examination or audit relates to the Services, then the other Party shall provide, at the
sole cost and expense of the requesting Party (except if related to the Recipient’s receipt of Services, in which case such
cost and expense shall be the Recipient’s responsibility), all assistance reasonably requested by the Party that is subject
to the examination or audit in responding to such examination or audits or requests for Information, to the extent that such assistance
or Information is within the reasonable control of the cooperating Party and is related to the Services. The requesting Party
shall consult and cooperate with the cooperating Party to limit the scope of any such examination or audit to the extent reasonably
possible.

 

Section
2.03 Title to Intellectual Property. Except as otherwise expressly provided for under this Agreement, the Master Distribution
Agreement, or another Ancillary Agreement, the Recipient acknowledges that it shall acquire no right, title or interest (including
any license rights or rights of use) in any intellectual property which is owned or licensed by the Provider, by reason of the
provision of the Services hereunder (other than the receipt and use of the Services by the Recipient during the term of this Agreement
as contemplated hereunder). The Recipient shall not remove or alter any copyright, trademark, confidentiality or other proprietary
notices that appear on any intellectual property owned or licensed by the Provider, and the Recipient shall reproduce any such
notices on any and all copies thereof. The Recipient shall not attempt to decompile, translate, reverse engineer or make excessive
copies of any intellectual property owned or licensed by the Provider, and the Recipient shall promptly notify the Provider of
any such attempt, regardless of whether by the Recipient or any Third Party, of which the Recipient becomes aware.

 

Article
III. BILLING; TAXES

 

Section
3.01 Procedure. Allocated Costs for the Services as well as any Covered Taxes (as defined below) (collectively, the “Charges”)
due and owing in accordance with this Agreement, shall be charged to and payable by the Recipient. Amounts payable pursuant to
this Agreement shall be paid by wire transfer (or such other method of payment as may be agreed between the Parties from time
to time) to the Provider (as directed by the Provider), on a monthly basis, which amounts shall be due within thirty (30) days
after the Recipient’s receipt of each such invoice, including reasonable documentation pursuant to Section 1.02(e). All
amounts due and payable hereunder shall be invoiced and paid in U.S. dollars.

 

Section
3.02 Late Payments. Charges not paid when due pursuant to this Agreement (and any amounts billed or otherwise invoiced or
demanded and properly payable that are not paid within thirty (30) days of the receipt of such bill, invoice or other demand)
shall accrue interest at a rate per annum equal to the Prime Rate plus one percent (1%) or the maximum rate under applicable Law,
whichever is lower.

 

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Section
3.03 Taxes.

 

	 	(a)	Without
    limiting any provisions of this Agreement, the Charges shall be exclusive of all sales, use, value-added, goods and services,
    services, excise, consumption, transfer or similar taxes, and any related penalties and interest, arising from the payment
    of such Charges to the Provider under this Agreement (other than any taxes measured by or imposed on the Provider’s
    gross or net income, or franchise or other similar taxes of the Provider) (“Covered Taxes”).
	 	 	 
	 	(b)	The
    Recipient shall pay, or reimburse the Provider for, any and all Covered Taxes.
	 	 	 
	 	(c)	Where
    required by applicable Law, the Recipient shall pay any Covered Taxes directly to the relevant Governmental Authority in compliance
    with applicable Law. If any Covered Taxes are assessed on the receipt of Charges by the Provider under this Agreement, the
    Provider shall notify the Recipient, pay such Covered Taxes directly to the applicable Governmental Authority and promptly
    provide the Recipient with an official receipt showing such payment, and the Recipient shall (without duplication) reimburse
    the Provider for such Covered Taxes.
	 	 	 
	 	(d)	In
    the event that applicable Law requires any Covered Taxes to be withheld from a payment of Charges by a Recipient to a Provider
    under this Agreement, the Recipient shall make such required withholding, pay such withheld amounts over to the applicable
    Governmental Authority in compliance with applicable Law, and increase the amount payable to the Provider as necessary so
    that, after the Recipient has withheld such amounts, the Provider receives an amount equal to the amount the Provider would
    have received had no such withholding been required.
	 	 	 
	 	(e)	The
    Recipient and the Provider shall use reasonable efforts, and shall cooperate with each other in good faith, to secure (and
    to enable the Recipient to claim) any exemption from, or otherwise to minimize, any Covered Taxes or to claim a tax refund
    therefor or tax credit in respect thereof, and the Recipient shall not be responsible for any Covered Taxes to the extent
    that such Covered Taxes would not have been imposed if (i) the Provider was eligible to claim an exemption from or reduction
    of such Covered Taxes, (ii) the Recipient used commercially reasonable efforts to notify the Provider of such eligibility
    reasonably in advance and (iii) the Provider failed to claim such exemption or reduction. If the Provider receives a refund
    with respect to any Covered Taxes paid or borne by the Recipient under this Agreement, the Provider shall promptly pay such
    refund to the Recipient net of costs and expenses (including any additional taxes) incurred by the Provider in connection
    with the receipt of such refund or the payment of such refund to the Recipient net of costs and expenses (including any additional
    taxes) incurred by the Provider in connection with the receipt of such refund or the payment of such refund to the Recipient.
	 	 	 
	 	(f)	Except
    as mutually agreed to in writing by Tech and Fuels, no Party or any member of its Group shall have any right of set-off or
    other similar rights with respect to (a) any amounts received pursuant to this Agreement or (b) any other amounts claimed
    to be owed to the other Party or any of member of its Group arising out of this Agreement.

 

Article
IV. TERM AND TERMINATION

 

Section
4.01 Term. This Agreement shall commence upon the Effective Date and shall terminate upon the earlier to occur of: (a) the
last date on which either Party is obligated to provide any Service to the other Party in accordance with the terms of this Agreement;
(b) the mutual written agreement of the Parties to terminate this Agreement in its entirety; and (c) 11:59 p.m., Arizona time
on December 31, 2020. Unless otherwise terminated pursuant to Section 4.02, this Agreement shall terminate with respect to each
Service as of the close of business on the last day of the Service Period for such Service.

 

Section
4.02 Early Termination.

 

	 	(a)	Without
    prejudice to the Recipient’s rights with respect to Force Majeure, the Recipient may from time to time terminate this
    Agreement with respect to the entirety of any individual Service:

 

	 	(i)	for
    any reason or no reason, at least thirty (30) days following written request to the Provider to terminate such Service, if
    the Provider agrees in writing to such termination; provided, however, that any such termination (x) may only be effective
    as of the date agreed to in writing by the Parties, (y) shall not result in a reduction of Charges with respect to calendar
    year 2019 or 2020, and (z) shall result in a reduction of Charges following calendar year 2019 or 2020 only if and to the
    extent expressly set forth in Schedule 1; or

 

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	 	(ii)	if
    the Provider of such Service has failed to perform any of its material obligations under this Agreement with respect to such
    Service, and such failure shall continue to be uncured for a period of thirty (30) days (or ninety (90) days if Provider is
    using good-faith efforts to so cure during such thirty (30) day period and thereafter) after receipt by the Provider of written
    notice of such failure from the Recipient; provided, however, that any such termination may only be effective as of the last
    day of a month; provided, further, that the Recipient shall not be entitled to terminate this Agreement with respect to the
    applicable Service if, as of the end of such period, there remains a good-faith Dispute between the Parties (undertaken in
    accordance with the terms of Section 7.02) as to whether the Provider has cured the applicable breach.

 

	 	(b)	The
    Provider may terminate this Agreement with respect to any individual Service, but not a portion thereof, at any time upon
    prior written notice to the Recipient if the Recipient has failed to perform any of its material obligations under this Agreement
    relating to such Service, including making payment of Charges for such Service when due, and such failure shall continue to
    be uncured for a period of thirty (30) days (or ninety (90) days if Recipient is using good-faith efforts to so cure during
    such thirty (30) day period and thereafter) after receipt by the Recipient of a written notice of such failure from the Provider;
    provided, however, that any such termination may only be effective as of the last day of a month; provided, further, that
    the Provider shall not be entitled to terminate this Agreement with respect to the applicable Service if, as of the end of
    such period, there remains a good-faith Dispute between the Parties (undertaken in accordance with the terms of Section 7.02)
    as to whether the Recipient has cured the applicable breach.

 

Section
4.03 Interdependencies. The Parties acknowledge and agree that: (a) there may be interdependencies among the Services being
provided under this Agreement; (b) upon the request of either Party, the Parties shall cooperate and act in good faith to determine
whether (i) any such interdependencies exist with respect to the particular Service that a Party is seeking to terminate pursuant
to Section 4.02 and (ii) in the case of such termination, the Provider’s ability to provide a particular Service in accordance
with this Agreement would be materially and adversely affected by such termination of another Service; and (c) in the event that
the Parties have determined that such interdependencies exist (and, in the case of such termination that the Provider’s
ability to provide a particular Service in accordance with this Agreement would be materially and adversely affected by such termination),
the Parties shall negotiate in good faith to amend Schedule 1 with respect to such termination of such impacted Service, which
amendment shall be consistent with the terms of comparable Services. To the extent that the Provider’s ability to provide
a Service is dependent on the continuation of a specified Service, the Provider’s obligation to provide such dependent Service
shall terminate automatically with the termination of such supporting Service.

 

Section
4.04 Effect of Termination. Upon the termination of any Service pursuant to this Agreement, the Provider of the terminated
Service shall have no further obligation to provide the terminated Service.

 

Section
4.05 Information Transmission. The Provider, on behalf of itself and the members of its Group, shall use commercially reasonable
efforts to provide or make available, or cause to be provided or made available, to the Recipient, in accordance with the Master
Distribution Agreement, any Information received or computed by the Provider for the benefit of the Recipient concerning the relevant
Service during the Service Period; provided, however, that, except as otherwise agreed to in writing by the Parties (a) the Provider
shall not have any obligation to provide, or cause to be provided, Information in any nonstandard format, (b) the Provider and
the members of its Group shall be reimbursed for their reasonable costs in accordance with the Master Distribution Agreement for
creating, gathering, copying, transporting and otherwise providing such Information, and (c) the Provider shall use commercially
reasonable efforts to maintain any such Information in accordance with the Master Distribution Agreement.

 

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Article
V. CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS

 

Section
5.01 Tech and Fuels Obligations. Subject to Section 5.04, until the five (5)-year anniversary of the Effective Date, each
of Tech and Fuels, on behalf of itself and each member of its Group, agrees to hold, and to cause its respective Representatives
to hold, in confidence, with at least the same degree of care that applies to Tech’s proprietary and confidential Information
pursuant to policies in effect as of the Effective Date, all proprietary or confidential Information concerning the other Party
or the members of its Group or their respective businesses (“Confidential Information”) that is either in its
possession (including Confidential Information in its possession prior to the Effective Date) or furnished by such other Party
or such other Party’s Group members or their respective Representatives at any time pursuant to this Agreement, and shall
not use any such Confidential Information other than for such purposes as may be expressly permitted hereunder, except, in each
case, to the extent that such Confidential Information has been (a) in the public domain or generally available to the public,
other than as a result of a disclosure by such Party or any member of its Group or any of their respective Representatives in
violation of this Agreement; (b) later lawfully acquired from other sources by such Party or any of member of its Group, which
sources are not themselves bound by a confidentiality obligation or other contractual, legal or fiduciary obligation of confidentiality
with respect to such Confidential Information; or (c) independently developed or generated without reference to or use of the
Confidential Information of the other Party or any member of its Group, in each case other than as may be required by applicable
law or order of a Governmental Authority. If any Confidential Information of a Party or any member of its Group is disclosed to
the other Party or any member of its Group in connection with providing the Services, then such disclosed Confidential Information
shall be used only as required to perform such Services.

 

Section
5.02 No Release; Return or Destruction. Other than as may be required by law or order of a Governmental Authority, each Party
agrees (a) not to release or disclose, or permit to be released or disclosed, any Confidential Information of the other Party
addressed in Section 5.01 to any other Person, except its Representatives who need to know such Confidential Information in their
capacities as such (whom shall be advised of their obligations hereunder with respect to such Confidential Information) and except
in compliance with Section 5.04, and (b) to use commercially reasonable efforts to maintain such Confidential Information in accordance
with the Master Distribution Agreement. Without limiting the foregoing, when any such Confidential Information is no longer needed
for the purposes contemplated by the Master Distribution Agreement, this Agreement or any other Ancillary Agreements, each Party
will promptly after request of the other Party either return to the other Party all such Confidential Information in a tangible
form (including all copies thereof and all notes, extracts or summaries based thereon) or notify the other Party in writing that
it has destroyed such information (and such copies thereof and such notes, extracts or summaries based thereon).

 

Section
5.03 Privacy and Data Protection Laws. Each Party shall comply with all applicable state, federal and foreign privacy and
data protection Laws that are or that may in the future be applicable to the provision of the Services under this Agreement.

 

Section
5.04 Protective Arrangements. In the event that a Party or any member of its Group either determines on the advice of its
counsel that it is required to disclose any Confidential Information of the other Party pursuant to applicable Law or receives
any request or demand under lawful process or from any Governmental Authority to disclose or provide Confidential Information
of the other Party (or any member of its Group) that is subject to the confidentiality provisions hereof, such Party shall notify
the other Party (to the extent legally permitted) as promptly as practicable under the circumstances prior to disclosing or providing
such Information and shall reasonably cooperate, at the expense of the other Party, in seeking any appropriate protective order
requested by the other Party. In the event that such other Party fails to receive such appropriate protective order in a timely
manner and the Party receiving the request or demand reasonably determines that its failure to disclose or provide such Information
shall actually prejudice the Party receiving the request or demand, then the Party that received such request or demand may thereafter
disclose or provide such Information to the extent required by such Law (as so advised by its counsel) or by lawful process or
such Governmental Authority, and the disclosing Party shall promptly provide the other Party with a copy of the Information so
disclosed, in the same form and format so disclosed, together with a list of all Persons to whom such Information was disclosed,
in each case to the extent legally permitted.

 

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Article
VI. LIMITED LIABILITY AND INDEMNIFICATION

 

Section
6.01 Limitations on Liability.

 

	 	(a)	THE
    LIABILITIES OF THE PROVIDER AND ITS GROUP MEMBERS AND THEIR RESPECTIVE REPRESENTATIVES, COLLECTIVELY, UNDER THIS AGREEMENT
    FOR ANY AND ALL ACTS OR FAILURES TO ACT IN CONNECTION HEREWITH (INCLUDING THE PERFORMANCE OR BREACH OF THIS AGREEMENT), OR
    FROM THE SALE, DELIVERY, PROVISION OR USE OF ANY AND ALL SERVICES PROVIDED UNDER OR CONTEMPLATED BY THIS AGREEMENT, WHETHER
    IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, SHALL NOT IN THE AGGREGATE EXCEED FIFTY (50%)
    PERCENT OF THE CHARGES PAID AND PAYABLE TO PROVIDER BY THE RECIPIENT PURSUANT TO THIS AGREEMENT.
	 	 	 
	 	(b)	The
    limitations in Section 6.01(a) shall not apply in respect of any Liability to the extent arising out of or in connection with
    the gross negligence, willful misconduct or fraud of or by the Party (or a member of its Group) to be charged.
	 	 	 
	 	(c)	IN
    NO EVENT SHALL EITHER PARTY, THE MEMBERS OF ITS GROUP OR THEIR RESPECTIVE REPRESENTATIVES BE LIABLE TO THE OTHER PARTY FOR
    ANY INDIRECT, PUNITIVE, EXEMPLARY, REMOTE, SPECULATIVE OR SIMILAR DAMAGES IN EXCESS OF COMPENSATORY DAMAGES OF THE OTHER PARTY
    IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT (OTHER THAN ANY SUCH LIABILITY AS PERMITTED BY THE MASTER DISTRIBUTION
    AGREEMENT) AND EACH PARTY HEREBY WAIVES ON BEHALF OF ITSELF, THE MEMBERS OF ITS GROUP AND ITS REPRESENTATIVES ANY CLAIM FOR
    SUCH DAMAGES, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE.

 

Section
6.02 Obligation to Re-Perform. In the event of any breach of this Agreement by the Provider with respect to the provision
of any Services which the Provider can reasonably be expected to re-perform in a commercially reasonable manner, the Provider
shall promptly correct in all material respects such error, defect or breach or re-perform in all material respects such Services
at the request of the Recipient and at the sole cost and expense of the Provider. Any request for re-performance in accordance
with this Section 6.02 by the Recipient must be in writing and specify in reasonable detail the particular error, defect or breach,
and such request must be made no more than one month from the later of (x) the date on which such breach occurred and (y) the
date on which such breach was reasonably discovered by the Recipient.

 

Section
6.03 Recipient Indemnity. In addition to (but not in duplication of) its other indemnification obligations (if any) under
the Master Distribution Agreement, this Agreement or any other Ancillary Agreement, but subject to the limitations set forth in
Section 6.01, the Recipient shall indemnify, defend and hold harmless the Provider, the members of the Provider’s Group
and each of their respective Representatives, and each of the successors and assigns of any of the foregoing (collectively, the
“Provider Indemnitees”), from and against any and all claims of Third Parties to the extent relating to, arising
out of or resulting from the Provider’s furnishing or failing to furnish the Services provided for in this Agreement, other
than Third Party Claims to the extent arising out of the gross negligence, willful misconduct or fraud of Provider or a member
of Provider’s Group.

 

Section
6.04 Provider Indemnity. In addition to (but not in duplication of) its other indemnification obligations (if any) under the
Master Distribution Agreement, this Agreement or any other Ancillary Agreement, but subject to the limitations set forth in Section
6.01, the Provider shall indemnify, defend and hold harmless the Recipient, the members of the Recipient’s Group and each
of their respective Representatives, and each of the successors and assigns of any of the foregoing (collectively, the “Recipient
Indemnitees”), from and against any and all Liabilities to the extent relating to, arising out of or resulting from
the sale, delivery, provision or use of any Services provided by such Provider hereunder, but only to the extent that such Liability
relates to, arises out of or results from the gross negligence, willful misconduct or fraud of Provider or a member of Provider’s
Group.

 

Section
6.05 Indemnification Procedures. The procedures for indemnification set forth in Master Distribution Agreement shall govern
claims for indemnification under this Agreement, mutatis mutandis.

 

Article
VII. MISCELLANEOUS

 

Section
7.01 Independent Contractors. The Parties each acknowledge and agree that they are separate entities, each of which has entered
into this Agreement for independent business reasons. The relationships of the Parties hereunder are those of independent contractors
and nothing contained herein shall be deemed to create a joint venture, partnership or any other relationship between the Parties
or the respective members of its Group. Employees performing Services hereunder do so on behalf of, under the direction of, and
as employees of, the Provider, and the Recipient shall have no right, power or authority to direct such employees.

 

Section
7.02 Dispute Resolution. In the event of any controversy, dispute or claim (a “Dispute”) arising out of
or relating to any Party’s rights or obligations under this Agreement (whether arising in contract, tort or otherwise),
calculation or allocation of the costs of any Service or otherwise arising out of or relating in any way to this Agreement (including
the interpretation or validity of this Agreement), such Dispute shall be resolved in accordance with the dispute resolution process
referred to in the Master Distribution Agreement.

 

Section
7.03 Incorporation by Reference. The provisions of Article IX of the Master Distribution Agreement (Miscellaneous) are incorporated
herein by reference and shall apply to this Agreement as though fully set forth herein, including the representations and warranties
of the Parties as set forth therein, provided that any reference therein to the “Agreement” shall be deemed a reference
to this Agreement.

 

[Signatures
appear on following page]

 

    	 	 	8

    	 

    

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective
Date.

 

	 	Taronis
    Technologies, Inc.
	 	 	 
	 	By:	 
	 	Name:	Scott
    Mahoney
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Taronis
    Fuels, Inc.
	 	 	 
	 	By:	 
	 	Name:	Scott
    Mahoney
	 	Title:	Chief
    Executive Officer

 

    	 	 	9

    	 

    

 

Schedule
1

 

Services;
Service Period; Additional Notes

 

	Item
    or Service	 	Provider
    (Tech or Fuels or Both)	 	Service
    Period	 	Additional
    Notes
	Executive
    Office:	 	Fuels	 	13
    months	 	Subject
    to extension
	Finance:	 	Both	 	13
    months	 	Subject
    to extension
	Taxation:	 	Both	 	13
    months	 	Subject
    to extension
	Legal/Compliance:	 	Both	 	13
    months	 	Subject
    to extension
	Government
    Relations/Public Relations:	 	Both	 	13
    months	 	Subject
    to extension
	Risk:	 	Both	 	13
    months	 	Subject
    to extension
	Information
    Technology: 	 	Fuels	 	13
    months	 	Subject
    to extension
	Marketing
    & Product Management:	 	Fuels	 	13
    months	 	Subject
    to extension
	Operations:	 	None	 	13
    months 	 	Subject
    to extension
	Human
    Resources:	 	Fuels	 	13
    months	 	Subject
    to extension
	Payroll:	 	Fuels	 	13
    months	 	Subject
    to extension
	Back
    Office/Computers/Communications:	 	Fuels	 	13
    months	 	Subject
    to extension
	Websites
    and Domains:	 	Fuels	 	13
    months	 	Subject
    to extension
	Software:	 	Fuels	 	13
    months	 	Subject
    to extension
	Regulatory:	 	Both	 	13
    months	 	Subject
    to extension
	SEC
    and OTC Compliance:	 	Both	 	13
    months	 	Subject
    to extension
	Asset
    maintenance:	 	Fuels	 	13
    months	 	Subject
    to extension
	Advertising:	 	Fuels	 	13
    months	 	Subject
    to extension
	Real
    Estate:	 	Fuels	 	13
    months	 	Subject
    to extension

 

    	 	 	10GASIFIER
PURCHASE AGREEMENT

 

This
GASIFIER PURCHASE AGREEMENT (this “Agreement”) is effective as of July 17, 2019 (the “Effective Date”),
and is made and entered into by and between TA GROUP MEDIA ENERGY INDUSTRY TRADE JOINT STOCK COMPANY (TA Grup Medya Enerji
Sanayi Ticaret Anonim Sirketi), a company organized and existing under the laws of the Republic of Turkey, with its principal
offices at Beştepe Mah., Mertebe Sokak no 13/3, Yenimahalle, 06560 Ankara, Turkey (“Purchaser”), and TARONIS
FUELS, INC., a Delaware corporation and its permitted assigns, having an address at 300 W. Clarendon Avenue, Ste. 230, Phoenix,
Arizona 85013 (“Taronis” or “Company”).

 

PURPOSE

 

The
purpose of this Agreement is to document the understanding and agreement of Taronis and the Purchaser with respect to:

 

	 	●	Taronis’
    sale of its proprietary 300kw Plasma Arc Flow Units (hereinafter defined as “Units”) to the Purchaser for
    the purpose of creating and selling “MagneGas” in the Territory;
	 	 	 
	 	●	Purchaser’s
    purchase of the Units, Services and Support Services;
	 	 	 
	 	●	Taronis’ provision
    of Services, as a subcontractor to the Purchaser, on Purchaser specific engagements; and
	 	 	 
	 	●	Taronis’ role
    in selling and delivering Support Services to the Purchaser.

 

Taronis
and Purchaser may wish to engage in other mutually agreed upon activities not covered by this Agreement. In such event, the parties
will set forth their mutual agreement to engage in such activities in a written document to be signed by authorized representatives
of both parties. Such document may take the form of an amendment or exhibit to this Agreement, or an entirely separate agreement.

 

1.
DEFINITIONS. All of the capitalized terms used in this Agreement will have the meaning ascribed to them in this Section
1.0 or elsewhere in this Agreement, unless otherwise expressly stated.

 

1.1.
“Alteration” means any modification to, including a change to the code, physical, mechanical, or electrical
arrangement of, a Product or Unit whether or not additional devices or parts are required.

 

1.2.
“Company Marks” means the logos, trademarks and service marks by which Taronis identifies the Products and
its other goods and services, including without limitation “MagneGas”, “PLASMA-ARC-FLOW”, “Venturi”
and other marks.

 

    	 	 	1

     

    

 

1.3.
“Customer” means the person or entity that first places a Product in productive use as an end user for its
own internal use, and does not: (i) resell or distribute the Product, and/or (ii) use the Product to provide outsourcing and/or
service bureau services to others.

 

1.4.
“Delivery” means the location in the Territory initially be set forth on Exhibit B hereto, which may be modified
by the written agreement of the parties.

 

1.5.
“Documentation” means information in any form intended by Taronis to be used by Customer(s) pertaining to a
Product (e.g., user manuals, training materials).

 

1.6.
“Governmental Approval” means the governing authority in the Territory has approved “MagneGas”
for production, distribution, transportation and sale in the Territory.

 

1.7.
“LSMS” means License Continuation, Subscription and Maintenance & Support.

 

1.8.
“Order” means a written request to purchase Units, Products, Supplies, Services, Non-recurring Services or
any other item of value from Taronis, as context herein dictates or is otherwise agreed to in writing.

 

1.9.
“Products” means Unit(s), Supplies or other hard goods as are explicitly defined herein or are otherwise listed
on Exhibit A or any purchase Order, as applicable.

 

1.10.
“Services” consist of activities, including professional and installation services, to be performed by Taronis
as a subcontractor to you for an identified Customer pursuant to a Statement of Work on a project-by-project basis in accordance
with Exhibit C as attached hereto, but does not include Support Services. The tangible results of Services that are provided
to you or the Customer by Taronis are referred to herein as “Deliverables.”

 

1.11.
“Supplies” means consumable items that you acquire from Taronis as listed on Exhibit A.

 

1.12.
“Support Services” means Taronis-provided reactive, proactive and predictive Product maintenance support for
Products in use at Customer locations provided under Exhibit D as attached hereto, and include Taronis’ hardware
maintenance, software maintenance and support, and LSMS, but does not include Services.

 

1.13.
“Taronis Product Specifications” means Taronis’ official published specifications for Products when you
acquire them (which Taronis will provide to you upon request), and the Documentation which Taronis includes with Products delivered
to you.

 

1.14.
“Territory” is as defined in Exhibit B as attached hereto.

 

    	 	 	2

     

    

 

1.15.
“Unit(s)” means one or more 300 KW PLASMA-ARC-FLOW Venturi gasification devices.

 

2.
PURCHASE AND SALE COMMITMENT. Subject to the terms and conditions herein, Taronis will sell to Purchaser, and Purchaser
will purchase from Taronis, a minimum of fifteen (15) units and up to a total of thirty (30) Units as follows:

 

2.1.
Purchase Price. The purchase price is $3,750,000 per Unit (“Unit Purchase Price”). Assuming the Purchaser
exercises its option to purchase all thirty (30) Units, the total cost for such Units will be $112,500,000.

 

2.2.
Payment Schedule per Order. The Purchaser will make an initial deposit on each Unit comprising an Order as set forth in
Section 2.3 (“First Progress Payment”), and additional progress payments thereafter, as follows:

 

2.2.1.
Ninety (90) days following the Purchaser’s submission of any Order, the Purchaser will make an additional twenty-five percent
(25%) deposit of the Unit Purchase Price per Unit comprising the Order (“Second Progress Payment”);

 

2.2.2.
One Hundred Eighty (180) days following the Purchaser’s submission of any Order for Units, the Purchaser will make an additional
twenty-five percent (25%) deposit of the Unit Purchase Price per Unit comprising the Order (“Third Progress Payment”);

 

2.2.3.
Finally, the Purchaser shall make a final twenty-five percent (25%) payment of the Unit Purchase Price per Unit upon receipt of
written notice of commissioning of the Units by Taronis (“Final Progress Payment”).

 

2.3.
Initial Purchase Commitment. The Purchaser shall make an initial order for the purchase of fifteen (15) Units for a total
initial payment of $56,250,000 (“Initial Order”) paid in the manner set forth herein. This Agreement and the
Initial Order will be binding upon the Purchaser and the First Order deposit (defined in Section 2.3.1) will be due and payable
within sixty (60) days of receiving Governmental Approval (“Binding Commitment”).

 

The
Initial Order will be subject to the following schedule:

 

2.3.1.
First Order. Within two (2) business days of the Initial Order becoming a Binding Commitment, the Purchaser will make a
non-refundable deposit for the purchase of five (5) Units to Taronis in an amount equal to twenty-five percent (25%) of the Unit
Purchase Price per Unit, which amount is $3,515,625 (“First Order”).

 

    	 	 	3

     

    

 

2.3.2.
Second Order. Within ninety (90) days of the delivery of the Units comprising the First Order into the Territory, the Purchaser
will make a second non-refundable deposit for the purchase of five (5) additional Units to Taronis in an amount equal to twenty-five
percent (25%) of the Unit Purchase Price per Unit, which amount is $3,515,625 (“Second Order”).

 

2.3.3.
Third Order. Within ninety (90) days of the delivery of the Units comprising the Second Order into the Territory, the Purchaser
will make a third non-refundable deposit for the purchase of five (5) additional Units to Taronis in an amount equal to twenty-five
percent (25%) of the Unit Purchase Price per Unit, which amount is $3,515,625 (“Third Order”).

 

2.3.4.
All Units comprising the Initial Order must be ordered with their applicable deposits made as set forth above within eighteen
(18) months from the execution of this Agreement. Notwithstanding the foregoing, the parties hereto acknowledge that it is possible
that due to build-out schedule for Units, it is possible the final purchase and delivery of Units may extend beyond this eighteen
(18) month period.

 

2.4.
Purchase Option. Upon completion the Initial Order and the Units comprising such order having been delivered to the Territory,
the Purchaser shall have the option to purchase an additional fifteen (15) Units at the Unit Purchase Price totaling of $56,250,000
(“Purchase Option”). The Purchase Option must be exercised by effecting a fourth order for five (5) additional
Units within one hundred eight (180) days of competition of the Initial Order. The balance of the Units subject to the Purchase
Option must be ordered within eighteen (18) months of exercising the Purchase Option. Each order subject to the Purchase Option
will be for no less than five (5) Units at a time, with the obligation to make a non-refundable deposit equal to twenty-five percent
(25%) of the Unit Purchase Price per Unit being purchased at the time the order is submitted to Taronis.

 

2.5.
Purchase Contingency. The obligation to purchase the Units as set forth in this Section 2 shall be contingent upon receiving
Governmental Approval.

 

3.
SERVICES COMMITMENT. Taronis will provide Services on a per Unit basis at the rate of $175,000 per year, per Unit, for
the operational life of the Unit (“Services Payment”). The operational life of each Unit shall be ten (10)
years (“Operational Unit Life”). At the end of the Operational Unit Life, the Purchaser will agree to renew
the Services Payment at then current market rates reasonably determined by Taronis and will (i) either replace each Unit in service
having reached the end of its Operational Unit Life, or (ii) engage Taronis to refurbish each such Unit at then current market
rates reasonably determined by Taronis. The Services Payment for each Unit shall be initially due upon delivery of each Unit to
the Territory and thereafter on the anniversary of each respective Unit’s delivery for the Operational Unit Life. The Services
Payment is subject to adjustment upon the mutual written agreement of the parties. In the event the Services Payment is not renewed
at the end of a Unit(s) Operational Unit Life, the Royalty set forth in Section 4 shall be automatically increased to five percent
(5%).

 

3.1.
Services. The terms and conditions for Services are set forth in Exhibit C of this Agreement.

 

    	 	 	4

     

    

 

3.2.
Support Services. Invoicing, payment and pricing terms and conditions for Support Services are set forth in Exhibit
D of this Agreement and in the services program guide.

 

4.
ROYALTY PAYMENT. The Purchaser or its Customer(s), as applicable and except as otherwise set forth in Section 3, will pay
to Taronis a three percent (3%) gross royalty on gross cubic feet of gas produced by each Unit in the Territory in perpetuity,
regardless of whether such gas is thereafter sold by the Purchaser (“Royalty”). The Purchaser or its Customer(s)
will provide Taronis with monthly gas production reports. The Royalty will follow each Unit, regardless of ownership transfer.
If any Unit is sold pursuant to Section 9, the seller of any such Unit will pay to Taronis a fee equal to three percent (3%) of
the subsequent Unit(s)’ gross sales price. Each Royalty payment shall be made no later than thirty (30) calendar days from
the receipt of a Royalty invoice sent to the Purchaser or its Customer(s). Payment will be made pursuant to Section 10 hereof.

 

5.
INVOICE, PAYMENT, TAXES, AND TITLE.

 

5.1.
Invoice and Payment. Taronis will invoice Purchaser for: (i) Products as set forth in Section 2; (ii) Services Payments
as set forth in Section 3; (iii) Royalty payments as set forth in Section 4.

 

5.1.1.
Non-recurring Services, including the provision of extra training, as set forth in an applicable statement of work, and, if not
set forth therein, will be invoiced on a monthly time, materials and expenses basis. Payment for non-recurring Services is due
thirty (30) days after the date of invoice.

 

5.1.2.
Payment for Supplies is due within thirty (30) days after the date of the invoice, unless otherwise agreed to in writing.

 

5.1.3.
Purchaser acknowledges the Company reserves the right to hold on processing an order of Supplies until payment is received in
full or change terms of payment at any time, if the creditworthiness of the Purchaser or its Customer(s) becomes questionable,
in the discretion of Taronis.

 

5.1.4.
Taronis reserves the right to charge late fees if payment is not received within forty-five (45) days from the date of the invoice
at a rate not to exceed the maximum allowed by law.

 

5.1.5.
If Purchaser does not pay after Taronis notifies Purchaser of a payment default, Taronis may also (without waiving Taronis’
right to payment): (i) suspend or terminate Services, Unit operations and/or Support Services; (ii) repossess and/or reclaim the
applicable Products; and/or (iii) suspend Product, Service and/or Support Service order acceptance and/or shipment; and/or (iv)
terminate this Agreement and revoke the limited license granted hereunder as well as exercise any other rights or remedies at
law or in equity Taronis may have. Purchaser has no right of set-off with respect to the payments it is required to make under
this Agreement.

 

    	 	 	5

     

    

 

5.2.
Risk of Loss. Unless otherwise stated in an Order, risk of loss and damage to Products, passes to Purchaser and delivery
occurs when Taronis has tendered the Products to: (i) the applicable shipping agent (either as selected by Purchaser or Taronis);
or (ii) when Taronis stores Products for Purchaser, the applicable storage facility. Taronis or its agents may repossess products
if Purchaser does not pay for them in accordance with the provisions of this Agreement.

 

5.3.
Title. Unless otherwise stated in an Order, title to each Unit conveys to the Purchaser or its Customer(s) upon receipt
of the full Unit Purchase Price by Taronis.

 

5.4.
Taxes, Duties Insurance and Shipping Charges. Product, Support Service and Service prices exclude all applicable taxes
(including, but not limited to, sales, use, value-added and ad valorem taxes, tariffs, and assessments after audit) and duties.
Purchaser is responsible for payment of all applicable taxes, exclusive of taxes based on Taronis’ net income, and duties
resulting from this Agreement. If Purchaser qualifies for tax exemptions, Purchaser must provide Taronis with appropriate exemption
documentation applicable to the particular tax authority within the Territory. Except where Taronis specifically advises you in
writing that Taronis’ price includes shipping and insurance charges, Purchaser will reimburse Taronis within fifteen (15)
calendar days of receipt of an invoice for all such charges.

 

6.
DELIVERY OF UNITS.

 

6.1.
Each Unit will be packed and shipped in a commercially reasonable manner mutually agreed by the parties, consistent with industry
standards, and in compliance with applicable law. Taronis shall, at its sole cost and expense, be solely responsible for and will
prepare all documentation necessary for compliance with U.S. requirements for the exportation of the Units to the Territory, including
obtaining any export licenses for the Units and Products, if any are required. In this connection, Purchaser will cooperate fully
with Taronis with respect to any information that may be required for Taronis’ compliance with U.S. laws, including, but
not limited to, information on end-user, purpose, or background check.

 

6.2.
Purchaser will prepare all documentation necessary for importation of the Units and Products to the Territory, subject to Taronis’
approval. Taronis will not be held responsible for delays or costs related to the importation of the Units to the Territory, as
long as Taronis has used good faith efforts to provide technical information or documentation that may be required by Purchaser
to import the Units or Products into the Territory.

 

    	 	 	6

     

    

 

7.
ORDERING PRODUCTS.

 

7.1.
Purchase Orders. Purchaser’s orders must be placed with Taronis by utilizing the then-current Taronis order process
(such process may be changed by Taronis during the term of this Agreement upon written notice to you) that will include, for purposes
of this Agreement, Taronis checking your order for configuration validity and Taronis approving any third party customer-specific
requirements. Taronis accepts an order from Purchaser when Taronis’ authorized representative signs it and the applicable
deposit amount as determined by Section 2 are confirmed as having been wired by the Purchaser. Unless Taronis specifically agrees
in writing, any preprinted language on Purchaser’s order forms will not apply. Taronis reserves the right not to accept
any orders from Purchaser for any reason without any liability; provided, however, that Taronis will not unreasonably withhold
its acceptance. In addition, Taronis may make its acceptance of Purchaser’s orders subject to entering into additional mutually
acceptable credit arrangements, which may include making advance payments. If Taronis accepts your order, the contract concerning
it consists of this Agreement and the order, with the Agreement controlling to the extent of any conflict between this Agreement
and the order.

 

7.2.
Lead Times. In order to enhance Taronis’ ability to better meet your requested delivery dates in line with Taronis’
normal production lead times, Purchaser will order Products in conformity with the timelines set forth in Section 2.

 

7.3.
Delivery Dates. Taronis will use reasonable efforts to deliver the Products by the date stated on your Company-accepted
Order. Taronis will inform you of delays as far in advance as reasonably possible. If Taronis’ performance is delayed (other
than by a force majeure) for an unreasonable length of time (more than 270 days per Order), Purchaser will receive a ten percent
(10%) discount on the Unit Purchase Price of each Unit affected by the delay. Nothing herein shall eliminate or reduce the Purchaser’s
obligation to make the deposit and progress payments required in Section 2.

 

7.4.
Rescheduling Shipping of Orders. Purchaser may reschedule the shipping of its Orders only on the following conditions:
(i) Purchaser may reschedule each order only once; (ii) Purchaser must give Taronis written notice of your request to reschedule
an order at least sixty (60) days before the scheduled shipment date; and (iii) Purchaser may not delay shipment of the order
by more than ninety (90) days after the originally scheduled shipment date. A request for rescheduling shipping that does not
meet each of these criteria may, at Taronis’ discretion, be treated as a non-refundable order cancellation.

 

7.5.
Canceled Orders. Purchaser may not cancel an Order for Units once made. Purchaser may not cancel an Order for Supplies
or Non-recurring Services, within forty-five (45) days of the scheduled shipment or service date.

 

8.
OPERATION OF PURCHASER’S BUSINESS.

 

8.1.
Certification. Purchaser agrees to maintain properly equipped and located premises, and a competent group of personnel
dedicated to the safe operation of the Products. Purchaser agrees to maintain the skill levels appropriate to the mutually agreed
upon levels of certification. Taronis will conduct, and your personnel will attend, such Product training as Taronis requires.
As mutually agreed upon in writing, Taronis will provide you or your Customer(s) with access to Taronis personnel. All such training
in excess of the Services contemplated in Section 3, i.e. Non-recurring Services, as well as all such access to Taronis personnel,
will be at Taronis’ then-current terms and rates. Purchaser or its Customer(s), as applicable, is responsible for all compensation,
business class level transportation, and first class living expenses for Taronis’ personnel.

 

    	 	 	7

     

    

 

8.2.
Subcontracting. Purchaser is explicitly allowed to subcontract the obligations and rights under Section 8.1 to a local
agent or partner, if Purchaser deems this to be appropriate to address the local market in the territory effectively or more effectively.
Purchaser is required to provide Taronis with notice that it will be subcontracting any application of its business.

 

8.3.
Forecasts and Customer Lists. Purchaser will prepare and transmit to Taronis on a calendar quarterly basis such reports
as Taronis may reasonably require, including without limitation, gas production forecasts. Purchaser will compile and maintain
a current list of names of all of the Purchaser’s Customer(s) within the Territory to whom the Purchaser has sold Products.
Purchaser will transmit these lists to Taronis when requested.

 

8.4.
Documentation and Marketing Materials. Taronis may provide Purchaser with such Documentation and marketing materials (typically
in English) pertaining to Products, Services and Support Services (e.g., catalogs, promotional literature) as Taronis deems appropriate
in its sole discretion. At Purchaser’s request and subject to Taronis’ written agreement, Taronis may make additional
quantities available to the Purchaser or its Customer(s). However, such additional quantities will be subject to Taronis’
then-current terms and conditions, including rates. Purchaser may translate these materials at your expense into the local languages
of the Territory, but hereby assign to Taronis ownership of all resulting copyrights and other intellectual property rights in
such translated materials. Taronis reserves the right to review and approve any translated versions Purchaser or its Customer(s)
have prepared prior to publication or distribution, and Purchaser agrees to indemnify, defend and hold harmless Taronis against
any and all claims attributable to such translated materials to the extent caused by the Purchaser or its Customer(s)’ negligence
or willful misconduct. If Purchaser wishes to use or distribute marketing materials not supplied by Taronis for the Products,
Purchaser must first obtain Taronis’ written permission prior to any such use or distribution, which Taronis may grant or
withhold at its sole discretion. Throughout the term of this Agreement and in the context of Purchaser or its Customer(s)’
marketing and sales activities, Purchaser represents and warrants that it will use the most current version of Taronis-provided
Documentation and marketing materials pertaining to Products, Services and Support Services in conducting Purchaser’s authorized
activities under this Agreement.

 

8.5.
Customer Surveys. Purchaser agrees to participate in Taronis’ program of surveying Customer(s) periodically to determine
their levels of satisfaction with the Products, Services and Support Services and any Purchaser-provided services or products,
in any reasonable manner requested by Taronis.

 

8.6.
Remote Gas Production Monitoring. Purchaser agrees and acknowledges that Taronis shall have the irrevocable license and
legal right and ability to remotely monitor the production of gas by each Unit. Any remote monitoring equipment installed on a
Unit shall remain the property of Taronis and tampering with or removing or restricting any such remote monitoring unit shall
be grounds for immediate breach of this terms of this Agreement.

 

    	 	 	8

     

    

 

8.7.
Compliance with Laws.

 

8.7.1.
Government Approvals. Purchaser will, at its expense, obtain any and all import licenses and local governmental approvals
that may be necessary to permit Taronis to sell and Purchaser (or its Customer(s)) to buy Products hereunder; comply with all
registration requirements in the Territory; obtain such approvals from governmental authorities of the Territory as may be necessary
to guarantee payment of all amounts due hereunder to Taronis in U.S. Dollars or otherwise agreed currency; and comply with any
and all governmental laws, regulations, and orders that may be applicable to you by reason of your execution of this Agreement,
including: (i) any requirement to be registered as an independent purchaser or reseller of Taronis’ Products with any governmental
authority, and (ii) any and all laws, regulations, or orders that govern or affect the ordering, export, shipment, import, sale
(including government procurement), leasing, delivery or redelivery of Products in the Territory. Purchaser will furnish Taronis
with such documentation as Taronis may reasonably request to confirm Purchaser’s compliance with this Section 8.7.1. Purchaser
agrees not to engage in any course of conduct that, in Taronis’ reasonable belief, would cause Taronis to be in violation
of the laws of any jurisdiction. As hereafter mutually agreed upon in writing, Taronis will reasonably cooperate with and assist
Purchaser in complying with this Section 8.7.1.

 

8.7.2.
Notice to Company. During the term of this Agreement, Purchaser will notify Taronis immediately upon becoming aware of
the existence and content of any regulation, directive or law in the Territory that conflicts with any provision of this Agreement.

 

8.7.3.
U.S. Export Controls. Purchaser warrants and represents to Taronis that it is familiar with, and will take all actions
and execute all documents necessary to be in compliance with all U.S. laws, rules, and regulations in effect from time to time
applicable to the export of Products or Services to Purchaser and to Purchaser’s Customer(s). Taronis will reasonably provide
Purchaser with any information about Taronis and its Products that may be required by Purchaser to maintain U.S. Export compliance.

 

8.7.4.
U.S. Foreign Corrupt Practices Act. Purchaser agrees to comply with, and not to perform any act that would subject Taronis
to sanctions under, the U.S. Foreign Corrupt Practices Act, 15 U.S.C. Section 78 et seq. In particular, Purchaser agrees
that in connection with, or in the performance of, this Agreement it will not make or promise to make any payment (whether in
currency, property or other thing of value) to any third person, firm or entity (including, without limitation, any government
official or representative) for the purpose of obtaining or retaining business. For its part, Taronis agrees that it does not
desire and will not request any service or action by you that would or might constitute a violation of the Foreign Corrupt Practices
Act.

 

8.7.5.
Indemnity. Purchaser will indemnify, defend and hold harmless Taronis and its subsidiaries’ respective officers,
directors, employees, agents, successors, subcontractors, suppliers and assigns, (collectively and individually, the “Indemnified
Parties”) against any and all claims, losses, damages, or expenses of whatever form or nature, including attorneys’
fees and other costs of legal defense, whether direct or indirect, that any one or more of the Indemnified Parties may sustain
or incur as a result of any wrongful acts or omissions by Purchaser, its subsidiaries or any of Purchaser or Purchaser’s
subsidiaries’ directors, officers, employees, agents, successors or assigns, (collectively and individually, the “Indemnifying
Parties”), including, but not limited to Purchaser’s: (i) breach of any of the provisions of this Agreement; (ii)
negligence or other tortious conduct; (iii) representations or statements about Taronis and/or any of its product or services
(including Products or Services) not specifically authorized by Taronis herein or otherwise in writing; (iv) Alteration of a Product;
and/or (v) violation of any applicable law, regulation, or order.

 

    	 	 	9

     

    

 

9.
PURCHASER’S RIGHT OF RESALE. The Purchaser will have the right to resell the Products in the Territory, subject to
compliance with the terms and conditions of this Agreement. In the event the Purchaser resells Unit(s), it will, as a condition
of resale, obligate the purchasing party to engage Taronis for the provision of Services and pay all amounts due hereunder, as
presently contemplated or hereinafter agreed, that are owed to Taronis from the Purchaser at the time of resale or due in the
future.

 

9.1.
Conditions to the Resale of Products.

 

9.1.1.
Alterations. If Purchaser makes any Alteration to a Product bearing a Company Mark, then before furnishing that Unit or
Product to a third party, the Purchaser agrees to notify the third party customer in writing (i) of the nature of the Alteration,
(ii) that Taronis’ warranties do not cover the Alteration, and (iii) that Taronis may not maintain or support the altered
Unit or Product. Purchaser will not make any Alterations to any products that bear the logo, trademark or copyright of another
person or entity without obtaining such person’s or entity’s prior written consent.

 

9.1.2.
Provision of Documentation. Purchaser agrees to provide each of its Customer(s) with (i) a bill of sale or other document
stating the date of sale or license and the serial numbers, if any, of the Products furnished, and (ii) any other materials Taronis
may include with the Products.

 

9.1.3.
Disclaimers. Purchaser agrees to make no warranty of any kind to its Customer(s) on behalf of Taronis, and to include in
its written terms and conditions of sale a conspicuous statement that the manufacturers, licensors and suppliers of the Products
disclaim all implied warranties, including the implied warranties of merchantability, satisfactory quality and fitness for a particular
purpose, or such other applicable warranties customary in the Territory. If Taronis does not warrant the Products to Purchaser’s
Customer(s), Purchaser agrees to remove any Taronis customer warranty documents from the Product’s packaging before delivering
Products to a customer of the Purchaser.

 

9.1.4.
Safety Modifications. Purchaser agrees to assist Taronis in implementing safety modifications to Products, and to maintain
a list of each customer to whom the Purchaser sells Products that includes the last address known for each customer, and the serial
numbers of the Products each customer purchased or licensed, and the dates that such Products were purchased or licensed.

 

    	 	 	10

     

    

 

9.1.5.
Data. Purchaser and its Customer(s) are responsible for data used in connection with a Product. Purchaser and its Customer(s)’
responsibilities include determining whether any privacy laws, regulations or duties apply to the data. They also include providing
for data security and for adequate backup procedures. Purchaser warrants that there are no restrictions on the processing or use
of the data in connection with the Products, and Taronis will have no liability to Purchaser or any other person, including any
Customer(s) of the Purchaser, arising from Taronis’ violation of any restriction on the processing or use of such data while
performing any Services or providing any Products.

 

9.1.6.
Direct Customer Payments. Taronis and Purchaser may mutually agree that the Purchaser’s Customer(s) make direct payments
to Taronis in accordance with this Agreement.

 

10.
CURRENCY; MANNER OF PAYMENT. All payments for the Unit Purchase Price, Products, Services, Non-recurring Service, Royalties
or otherwise in connection therewith shall be calculated and paid in United States Dollars. All payments shall be paid by cash
wire transfer to an account in the name of Taronis pursuant to wire instructions set forth on Exhibit F, as amended from
time to time.

 

11.
CONFIDENTIALITY.

 

11.1.
Confidential Information; Defined. “Confidential Information” is information disclosed by one party to the
other which complies with this Section 11. Confidential Information disclosed in documents or other tangible form must be clearly
marked as confidential at the time of disclosure. Notwithstanding the foregoing marking requirement, the terms and conditions
of this Agreement constitute Taronis’ Confidential Information and may be disclosed by Taronis at its discretion. Confidential
Information in oral or other intangible form must be identified as confidential at the time of disclosure, and summarized in tangible
form clearly marked as confidential and delivered to the recipient within ten (10) calendar days thereafter. Confidential Information
does not include information that: (i) is or becomes public knowledge through no wrongful act of the receiving party; (ii) is
already known to the receiving party; (iii) is rightfully obtained by the receiving party from any third-party without similar
restriction and without breach of any obligation owed to the disclosing party; (iv) is independently developed by or for the receiving
party; (v) is furnished to a third party by the disclosing party without a similar restriction on the third party’s rights;
(vi) is approved for release by written authorization of the disclosing party; or (vii) is required to be disclosed pursuant to
a lawful government agency or court order (provided, however, that the receiving party hereunder will provide the disclosing party
prompt notice of, and the opportunity to contest, such order). Notwithstanding the foregoing, Taronis may disclose this Agreement
and the material terms hereof in order to comply with any federal or state securities laws.

 

11.2.
Obligations. Each party will use reasonable efforts to prevent the disclosure of the Confidential Information of the other
party to any other person or entity. The receiving party may disclose Confidential Information only to its employees or contractors
with a legitimate need to know who agree in writing to confidentiality obligations consistent with this Section 11. All materials
containing Confidential Information are and remain the discloser’s property, and upon written request the recipient will
promptly return them, and all copies of them, except a single archival copy which may be maintained for archival purposes only.
Nothing in this Section 11 grants the receiving party a license to any of the disclosing party’s patents or copyrights or
other intellectual property.

 

    	 	 	11

     

    

 

11.3.
Duration. A party’s obligations under this Section 11 will continue indefinitely.

 

12.
LIMITED SUB-LICENSE TO USE TARONIS’ MARKS.

 

12.1.
Limited Sub-License. During the term of this Agreement (unless this Agreement is terminated earlier as provided for herein),
Taronis grants Purchaser a non-exclusive, non-transferable, limited sub-license to use the Company Marks, only: (i) in the Territory;
(ii) to identify or promote the Products in the context of Purchaser’s sale or licensing thereof under this Agreement; and
(iii) in accordance with Taronis’ then-current policies or as Taronis approves in advance in writing. In the event the Purchaser
resells Products purchased under this Agreement, the sub-licensed granted in this Section 12.1 will only be extended to the Purchaser’s
Customer(s) upon the written consent of Taronis.

 

12.2.
Limitations. Purchaser agrees not to alter or remove any Company Mark from a Product without the prior written consent
of Taronis. Purchaser will not use the Company Marks as part of its corporate or other legal name, or as part of the name under
which you conduct business. Purchaser will not use the Company Marks to incur any obligation or indebtedness on behalf of Taronis.

 

12.3.
Taronis Ownership. Purchaser acknowledges that Taronis (its affiliates, licensor, assigns or a wholly owned subsidiary)
is the owner of all rights in the Company Marks and that Purchaser has no proprietary interest in any Company Mark. Purchaser’s
use of a Company Mark will not create any rights in or to that Company Mark. Purchaser acknowledges that the Company Marks are
valid under applicable law. Purchaser agrees not to do anything inconsistent with Company’s ownership of the Company Marks,
and you acknowledge that all uses of the Company Marks will inure to Taronis’ benefit. Purchaser further agrees to reasonably
cooperate with and assist Taronis in the protection of the Company Marks, and will inform Taronis immediately of any infringement
or other improper action with respect to them that comes to Purchaser’s attention.

 

12.4.
Third Parties. Purchaser agrees to respect the trademarks and service marks of Taronis’ suppliers and licensors to
a degree consistent with its obligations with respect to Company’s Marks under this Section 12.

 

13.
WARRANTIES BY TARONIS.

 

13.1.
Taronis warrants that: (i) except for Taronis’ purchase money security interest (to the extent applicable local law recognizes
the existence of a purchase money security interest), Products will materially conform to published documentation delivered with
them by Taronis. The warranty period for Products is three hundred sixty days (360) days from the date of Delivery to Purchaser
or the Purchaser’s Customer(s) (whichever is applicable and occurs first). If, during the applicable warranty period, a
Product does not conform to its warranty and Purchaser provides Taronis with written notice of such non-conformance, Taronis will
repair or replace non-conforming components or otherwise correct the non-conformity in accordance with its standard warranty service
terms. Specific Unit(s) warranties are set forth on Exhibit E.

 

    	 	 	12

     

    

 

13.2.
Taronis may provide Purchaser with alternative Product warranties applicable to specific locations within the Territory. Taronis
will notify Purchaser of the alternative Product warranty terms in writing and such alternative Product warranty provisions will
apply in lieu of the Product warranties stated in Section 13.1. Taronis reserves the right to charge Purchaser, and Purchaser
agrees to pay per the payment terms of Section 5.1 above, an additional amount for such country-specific Product warranties. If
mutually agreed between Taronis and Purchaser the payment obligations under this paragraph may be assigned to the Purchaser’s
customer directly.

 

13.3.
Warranty service will be provided either “on-site” or “depot”, as determined by Taronis policies at the
time of delivery. Taronis will charge separately for: (i) consumable items; (ii) service calls outside of Taronis’ standard
hours; (iii) service calls for Products that are in good operating condition at the time of the call; (iv) use of specified types
of Products above their rated usage levels (which Taronis will provide to Purchaser at your request); and (v) per-call services
covering Products that are outside of warranty. Taronis will also charge Purchaser separately to repair Products that have failed
due to: (i) an Alteration to Products, or an attachment not provided by Taronis, approved by Taronis in writing, or compatible
with Taronis’ standard interfaces; (ii) use of supplies or products acquired from third parties that are defective or that
do not meet Taronis’ standards or specifications; (iii) Purchaser’s or any third party’s negligence, misuse,
or abuse; or (iv) fire, smoke, water, acts of God, civil or military authority, war, riots, strikes or other causes beyond Taronis’
reasonable control. If mutually agreed between Taronis and Purchaser the payment obligations under this paragraph may be assigned
to the Purchaser’s customer directly.

 

13.4.
Other Company’s Products. If Taronis provides Purchaser or its Customer(s) with hardware or Supplies that bear the
logo or copyright of another company with warranty and/or support terms from the other company, such other company’s terms
apply instead of those in this Agreement, and, unless specifically agreed in writing by Taronis, Taronis provides no warranty
or support for those Products. Upon Purchaser’s request, Taronis will give you a copy of the terms discussed in this Section
13.4 before Purchaser orders such Products. Taronis has no warranty obligation for third-party Products even if Taronis assisted
in evaluating or selecting them.

 

13.5.
Disclaimer. EXCEPT FOR WARRANTIES SPECIFICALLY CONTAINED IN THIS SECTION 13 OF THIS AGREEMENT, TARONIS DISCLAIMS ALL
WARRANTIES, EXPRESS AND IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, SATISFACTORY QUALITY,
FITNESS FOR A PARTICULAR PURPOSE AND THOSE ARISING FROM A COURSE OF DEALING. TARONIS DOES NOT WARRANT THAT ANY DELIVERABLES OR
PRODUCTS WILL OPERATE UNINTERRUPTED OR ERROR FREE, OR THAT ALL DEFICIENCIES, ERRORS, DEFECTS OR NON-CONFORMITIES WILL BE CORRECTED.
THE FAILURE OF PRODUCTS YOU ACQUIRE FROM THIRD PARTIES OR THEIR SUPPLIERS WILL NOT AFFECT YOUR OBLIGATIONS TO TARONIS.

 

    	 	 	13

     

    

 

13.6.
Exclusive Remedies. Purchaser’s rights and remedies set forth in this Agreement are exclusive and in lieu of all
other rights and remedies (except to the extent that applicable law prohibits agreements to disclaim warranties or limit liabilities).

 

14.
TERM AND TERMINATION.

 

14.1.
Term. The term of this Agreement will commence on the Effective Date and will continue in force and effect until terminated
as set forth herein (“Term”). Alternative or supplementary provisions may be included in an Exhibit or Addendum
hereto.

 

14.2.
Termination for Material Breach. If either party materially breaches this Agreement, the other party may terminate by giving
at least thirty (30) days advance written notice of termination, specifically identifying the nature of the breach. The breaching
party may avoid termination by curing the breach within the thirty (30) day period. Effective immediately, a party may terminate
this Agreement upon notice to the other party and without affording any opportunity to cure if such other party, (i) contrary
to the terms of Section 19.3 of this Agreement, purports to transfer any right or obligation under this Agreement without prior
written consent (such to include but, not be limited to, a change in control or ownership of a party), or (ii) after curing a
breach as described above, commits the same or a similar breach again within one (1) year of the initial breach.

 

14.3.
Immediate Termination. On the occurrence of any of the following, this Agreement will automatically terminate unless the
non-affected party elects to have any such contract continue:

 

14.3.1.
The parties’ failure to obtain Governmental Approval within one hundred eighty (180) days of the Effective Date hereof;

 

14.3.2.
The admission by either party in writing of its inability to pay its debts generally or the making of a general assignment for
the benefit of creditors;

 

14.3.3.
Any affirmative act of insolvency by either party, or the filing by or against any party of any petition or action under any bankruptcy,
reorganization, insolvency arrangement, liquidation, dissolution or moratorium law, or any other law or laws for the relief of,
or relating to, debtors; or

 

14.3.4.
The subjection of a material part of either party’s property to any levy, seizure, assignment or sale for or by any creditor,
third party or governmental agency.

 

14.3.5.
Sections 3 through 5, 8, 10, 11, 13.5, 13.6, 14, and 16 through 19, will survive this Agreement’s termination or expiration,
will remain in effect until fulfilled, and will apply to each party’s respective successors and assigns to the extent permitted
herein.

 

    	 	 	14

     

    

 

15.
DEFENSE OF INFRINGEMENT CLAIMS. Taronis will defend, at its expense, any third party claim or suit brought against Purchaser,
and its Customer(s) alleging that any Taronis Product infringes a patent, copyright or trade secret, and will pay all costs and
damages finally awarded, if Purchaser promptly notifies Taronis of the claim and gives the Company (i) the information and cooperation
that Taronis reasonably asks for, and (ii) sole authority to defend or settle the claim. In handling the claim, Taronis may obtain
the right to continue using the Taronis Product or replace or modify the Taronis Product, so that it becomes non-infringing. THIS
SECTION STATES TARONIS’S ENTIRE LIABILITY, AND YOUR EXCLUSIVE REMEDY, FOR INFRINGEMENT OF PATENTS, COPYRIGHTS, TRADE SECRETS,
AND OTHER INTELLECTUAL PROPERTY RIGHTS.

 

16.
LIMITATIONS ON LIABILITY. UNDER NO CIRCUMSTANCES WILL TARONIS OR ITS SUBSIDIARIES, INCLUDING TARONIS’ AND ITS
SUBSIDIARIES’ RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SUCCESSORS, ASSIGNS, SHAREHOLDERS, SUBCONTRACTORS OR LICENSORS,
BE LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, OR FOR LOSS OF PROFITS, REVENUE, TIME, OPPORTUNITY
OR DATA, WHETHER IN AN ACTION IN CONTRACT, TORT, PRODUCT LIABILITY, STATUTE, EQUITY OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY
OF THOSE DAMAGES. UNDER NO CIRCUMSTANCES WILL TARONIS’ OR ITS SUBSIDIARIES’, INCLUDING TARONIS’ AND ITS SUBSIDIARIES’
RESPECTIVE OFFICERS’, DIRECTORS’, EMPLOYEES’, AGENTS’, SUCCESSORS’, ASSIGNS’, SHAREHOLDERS’,
SUBCONTRACTORS’ OR LICENSORS’, CUMULATIVE LIABILITY EXCEED THE AMOUNT YOU PAID TARONIS FOR THE APPLICABLE PRODUCT(S)
IN CONTROVERSY. EACH CLAUSE OF THIS SECTION IS SEPARATE FROM THE OTHERS AND FROM THE REMEDY LIMITATIONS AND EXCLUSIONS ELSEWHERE
IN THIS AGREEMENT, AND WILL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF A REMEDY OR TERMINATION OF THIS AGREEMENT.

 

17.
DISPUTE RESOLUTION.

 

17.1.
Negotiation, Escalation and Mediation. If any controversy or claim arises relating to this Agreement, Purchaser and Taronis
will attempt in good faith to negotiate a solution to such controversy or claim, including progressively escalating the controversy
or claim through senior levels of management. If negotiation does not result in a resolution within fifteen (15) business days
of when one party first notifies the other of the controversy or claim, Purchaser and Taronis will participate in good faith mediation
as administered by the London Centre for Dispute Resolution (“CEDR”).

 

17.2.
Arbitration and Governing Law. Any controversy or claim between Taronis, on the one hand, and Purchaser and its Customer(s),
on the other, whether based on contract, tort, statute, or other legal theory (including but not limited to any claim of infringement,
fraud, or misrepresentation) which cannot be resolved by negotiation or mediation will be resolved by binding arbitration under
this Section 17.2 and the then-current rules and supervision of the International Chamber of Commerce. The duty to arbitrate will
extend to any employee, officer, shareholder, director, agent, or affiliate of Purchaser, your authorized resellers if any, your
Customer(s), or Taronis making or defending a claim which would be subject to arbitration if brought by Purchaser, your authorized
resellers, your Customer(s), or Taronis. If any part of this Section 17 is held to be unenforceable, it will be severed and will
not affect either the duty to arbitrate or any other part of this Section 17. The arbitration will be held in London, England
before a sole arbitrator who is knowledgeable in business of the Company. The arbitrator’s award will be final and binding
and may be entered in any court having jurisdiction. The arbitrator will not have the power to award punitive or exemplary damages,
or any damages excluded by, or in excess of, any damage limitations expressed in this Agreement. Issues of arbitrability will
be determined in accordance solely with the English substantive and procedural laws relating to arbitration; in all other respects,
the arbitrator will be obligated to apply and follow the laws of England, but excluding its rules on conflicts of law and the
United Nations Convention on Contracts for the International Sale of Goods. This Agreement is governed by the laws of the United
Kingdom.

 

    	 	 	15

     

    

 

17.3.
Costs. Each party will bear its own attorney’s fees and other costs associated with the negotiation, mediation, and
arbitration provided for by this Section 17, except that costs and expenses of arbitration other than attorney’s fees will
be paid as provided by the rules of the International Chamber of Commerce. If court proceedings to stay litigation or compel arbitration
are necessary, the party who unsuccessfully opposes such proceedings will pay all associated costs, expenses and attorney’s
fees which are reasonably incurred by the other party.

 

17.4.
Two-Year Limitation; Discrepancies. Neither Purchaser, its Customer(s) nor Taronis may bring a claim or action regardless
of form, arising out of or related to this Agreement, including any claim of fraud or misrepresentation, more than two (2) years
after the delivery of any Product at issue, or more than two (2) years after cause of action accrues, whichever is later. In addition,
the Purchaser (and its Customer(s)) agree to bring any administrative discrepancies, including, but not limited to, invoice errors,
shipment discrepancies, and return variances, to Taronis’ attention in writing within ninety (90) days from the date of
the incident’s occurrence (e.g. invoice date, receipt of goods, etc.) Purchaser’s failure to raise an administrative
discrepancy (with appropriate supporting documentation) within this time period will result in the waiver of Purchaser’s
right to dispute the incident at a future date.

 

17.5.
Confidentiality. In order to facilitate the resolution of controversies or claims, Purchaser and Taronis will keep them
confidential, including details regarding negotiations, mediation, arbitration, and settlement terms.

 

18.
NOTICES. All notices (including requests, consents or waivers) made under this Agreement will be in writing and delivered
by facsimile, electronic mail, or other electronic means (in which case the recipient will provide acknowledgment within one (1)
business day separately from any machine-generated automatic reply); or by prepaid means providing proof of delivery. Notices
are effective upon receipt. The parties will send notices to the addresses set forth below. A party may change its notice of name/address
by providing written notice to the other party as required by this Section 18.

 

    	 	 	16

     

    

 

	TO
    PURCHASER:	 	TO
    TARONIS:
	 	 
	TA
        Grup Medya Enerji Sanayi Ticaret

                                                                              Anonim Sirketi

                                                                               

        Beştepe
        Mah.

        Mertebe
        Sokak no 13/3

        Yenimahalle

        06560
        Ankara, Turkey
	 	c/o
        General Counsel

        300
        W. Clarendon Avenue, Ste. 230

        Phoenix,
        Arizona 85013

        U.S.A.

	 	 
	With
        a copy to:

                                                                               

        Kersting

        Hattinger
        Strasse 397,

        44795
        Bochum, Germany

        Phone
        (0234) 890319-0

        Fax
        (0234) 890319-19

        info@anwaelte-kersting.de
	 	With
        a copy to:

                                                                               

        Covington
        & Burling LLP

        265
        Strand,

        London
        WC2R1BH

        c/o
        Simon Amies

        samies@cov.com

        +44
        20 7067 2002

 

19.
EXCLUSIVITY. The Purchaser, upon completing the purchase of the required number of Units below, will be granted the exclusive
right to produce, market and sell MagneGas within the Territory (“Exclusivity”) as follows:

 

19.1.
Upon the completion of the purchase of the First Order of five (5) Units comprising the Initial Purchase of fifteen (15) Units,
the Purchaser shall be granted five (5) years of Exclusivity. The Purchaser’s right of Exclusivity will begin on the date
Taronis receives the Final Progress Payment for the First Order.

 

19.2.
Upon completion of the purchase of the Second Order of five (5) additional Units (10 Units in total), comprising the Initial Purchase
of fifteen (15) Units, the Purchaser shall be granted an additional five (5) years of Exclusivity (10 years in total). The Purchaser’s
extended right of Exclusivity will begin on the date Taronis receives the Final Progress Payment for the Second Order.

 

19.3.
Upon completion of the purchase of the Third Order of five (5) additional Units (15 Units in total), comprising the completion
of the Initial Purchase of fifteen (15) Units, the Purchaser shall be granted Exclusivity in perpetuity, subject to complying
with the renewal and repurchase/refurbishment obligation set forth in Section 3. The Purchaser’s perpetual Exclusivity will
begin on the date Taronis receives the Final Progress Payment for the Third Order and will only terminate in the event the condition
in the Section 3 is not complied with.

 

    	 	 	17

     

    

 

20.
GENERAL.

 

20.1.
Independent Contractors. Purchaser and Taronis are contractors independent of one another. Nothing in this Agreement is
intended to establish or authorize either party as an agent, legal representative, joint venturer, franchisee, employee, or servant
of the other for any purpose. Neither party will make any contract, agreement, warranty, or representation on behalf of the other
party, or incur any debt or other obligation in the other party’s name, or act in any manner which has the effect of making
that party the apparent agent of the other. Neither party will assume liability for, or be deemed liable as a result of, any such
action by the other party. Neither party will be liable by reason of any act or omission of the other party in the conduct of
its business or for any resulting claim or judgment. Neither Taronis nor Purchaser will create and distribute to any third party,
any communication or material consisting of marketing materials or press releases pertaining to this Agreement, the other party,
or such other party’s products or services, without first obtaining such other party’s prior review and written approval.
Such approval will not be unreasonably withheld or delayed.

 

20.2.
Audit Procedures. Taronis reserves the right to audit Purchaser and its Customer(s)’ records in order to verify the
accuracy of Purchaser’s reports and payments to Taronis. Taronis will perform such audits at its own expense, and either
Taronis or an independent auditor selected by Taronis shall conduct these audits at Taronis’ election. Purchaser will be
given fifteen (15) days prior written notice of the date of each audit. In the event that an audit reveals a discrepancy that
has resulted in an underpayment to Taronis, Purchaser will remit the total amount due to Taronis within thirty (30) days of notification.
In the event of a discrepancy resulting in an underpayment to Taronis of greater than ten percent (10%), Purchaser agrees to pay
for Taronis’ cost of the audit in addition to the amount of any such underpayment.

 

20.3.
Non-Waiver; Assignment. Failure to enforce any term of this Agreement is not a waiver of future enforcement of that or
any other term. Purchaser will not assign this Agreement, or its rights or obligations hereunder, without Taronis’ prior
express written consent. This Agreement may be executed, assigned and performed by Taronis, its subsidiaries or its affiliates.

 

20.4.
Change in Control. Purchaser will promptly notify Taronis of any material changes in your underlying ownership. Taronis’
prior written consent is required for any proposed transfer of a material amount of Purchaser’s voting stock or your entry
into a merger, consolidation, or sale-of-assets transaction. Purchaser will ensure that Taronis is at all times fully aware of
your actual ownership and control, and of any parent company, at each tier in any ownership hierarchy that may exist.

 

20.5.
Severability. If any provision of this Agreement is held to be illegal, invalid, or unenforceable, the provision will be
enforced to the maximum extent permissible so as to effect the intent of the parties, and the remaining provisions of this Agreement
will remain in full force and effect.

 

20.6.
Force Majeure. Neither party is liable for failing to fulfill its obligations due to acts of God, civil or military authority,
war, riots, strikes, fire, or other causes beyond its reasonable control, except for your obligation to make payments.

 

    	 	 	18

     

    

 

20.7.
Language. This Agreement’s only official and legally effective version will be in the English language.

 

20.8.
Counterparts; Headings. This Agreement will be executed in two (2) counterparts, both of which will be deemed originals.
The section headings in this Agreement are for convenience only and are not to be considered in its interpretation.

 

20.9.
Order of Precedence. Notwithstanding anything to the contrary herein, should a conflict arise between the terms
and conditions of this Agreement and any Exhibit as attached hereto, the Exhibit will prevail with respect to the subject matter
thereof.

 

20.10.
Entire Agreement; Amendment. This Agreement is the complete and exclusive statement of the agreement of Purchaser about
its purchase or distribution of Taronis’ Products, and supersedes all prior oral and written agreements, understandings,
and communications about it. This Agreement may not be modified or amended except by a written document that references this Agreement
and has been signed by authorized representatives of both parties. Unless Taronis specifically agrees in writing, any preprinted
language on your order forms will not be a part of or amend this Agreement.

 

[Signature
Pages and Exhibits Follow]

 

[The
Remainder of This Page is Intentionally Blank]

 

    	 	 	19

     

    

 

IN
WITNESS WHEREOF, Taronis and Purchaser have caused this instrument to be executed by their duly authorized representatives.

 

	TA
        GROUP MEDIA ENERGY

        INDUSTRY
        TRADE JOINT STOCK

        COMPANY
        (TA Grup Medya Enerji

        Sanayi
        Ticaret Anonim Sirketi)
	 	TARONIS
    FUELS, INC.

 

	By:	/s/
    Mr. Anil Sümer     	 	By:	/s/
    Mr. Scott Mahoney
	 	 	 	 	 
	Name:	Mr. Anil Sümer 	 	Name:	Mr.
Scott Mahoney
	 	 	 	 	 
	Title:	Chief Executive Officer 	 	Title:	Chief Executive Officer
	 	 	 	 	 
	Date:	17 July 2019 	 	Date:	17 July 2019 

 

    	 	 	20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}]]