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NEITHER
THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE BEEN SOLD IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND
ACCORDINGLY, MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OR PURSUANT TO AVAILABLE EXEMPTION FROM THE REGISTATION REQUIREMENTS OF THE SECURITIES
ACT, THE AVAILABILITY OF WHICH IS CONFIRMED BY AN OPINION OF COUNSEL IN GENERALLY ACCEPTABLE FORM, AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS.

 

TARONIS
TECHNOLOGIES, INC.

 

Convertible
Debenture

 

	Issuance
    Date: May 3, 2019	Original
    Principal Amount: 	$1,500,000
	No.
    TRNX-1	 

 

FOR
VALUE RECEIVED, TARONIS TECHNOLOGIES, INC., a Delaware corporation (the “Company”), hereby promises to
pay to the order of YA II PN, LTD. or registered assigns (the “Holder”) the amount set out above as the Original
Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the “Principal”)
when due, whether upon the Maturity Date (as defined below), on any Installment Date with respect to the Installment Amount due
on such Installment Date (each, as defined herein), acceleration, redemption or otherwise (in each case in accordance with the
terms hereof) and to pay interest (“Interest”) on any outstanding Principal at the applicable Interest Rate
from the date set out above as the Issuance Date (the “Issuance Date”) until the same becomes due and payable,
whether upon any Installment Date or the Maturity Date or acceleration, conversion, redemption or otherwise (in each case in accordance
with the terms hereof). This Convertible Debenture (including all Convertible Debentures issued in exchange, transfer or replacement
hereof, this “Debenture”) is issued pursuant to the Securities Purchase Agreement. Certain capitalized terms
used herein are defined in Section (15).

 

(1)
GENERAL TERMS

 

(a)
Payment of Principal. On each Installment Date, the Company shall pay to the Holder an amount equal to the Installment
Amount due on such Installment Date in accordance with Section 3. On the Maturity Date, the Company shall pay to the Holder an
amount in cash representing all outstanding Principal, accrued and unpaid Interest. The “Maturity Date” shall
be November 3, 2019. Other than as specifically permitted by this Debenture, the Company may not prepay or redeem any portion
of the outstanding Principal at any time.

 

(b)
Interest. Interest shall accrue on the outstanding Principal at an annual rate equal to 6% (“Interest Rate”).
Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed, to the extent permitted by
applicable law. Interest hereunder shall be paid on each Installment Date and on the Maturity Date (or sooner as provided herein)
to the Holder or its assignee in whose name this Debenture is registered on the records of the Company regarding registration
and transfers of Debentures at the option of the Company in cash, or, provided that the Equity Conditions are then satisfied converted
into Common Stock at the Market Conversion Price on the Trading Day immediately prior to the date paid.

 

    	 	 	 

    	 

    

 

(2)
EVENTS OF DEFAULT. 

 

(a)
An “Event of Default”, wherever used herein, means any one of the following events which after notice to the
Company remain uncured for a period of 3 business days after such notice if an Event of Default under 2(a)(i), 2(a)(v) and 2(vi)
herein and 5 business days after such notice for all other Events of Default under Section 2(a) (whatever the reason and whether
it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court,
or any order, rule or regulation of any administrative or governmental body):

 

(i)
the Company’s failure to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under this
Debenture or any other Transaction Document;

 

(ii)
The Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary
of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the
Company or any subsidiary of the Company commences any other proceeding under any dissolution, insolvency or liquidation or similar
law of any jurisdiction whether now or hereafter in effect relating to the Company or any subsidiary of the Company or there is
commenced against the Company or any subsidiary of the Company any such bankruptcy, insolvency or other liquidation proceedings
which remains undismissed for a period of 61 days; or the Company or any subsidiary of the Company is adjudicated insolvent or
bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Company or any subsidiary
of the Company suffers any appointment of any custodian, private or court appointed receiver or the like for it or any substantial
part of its property which continues undischarged or unstayed for a period of 61 days; or the Company or any subsidiary of the
Company makes a general assignment for the benefit of creditors; or the Company or any subsidiary of the Company shall fail to
pay, or shall state that it is unable to pay, or shall be unable to pay, its debts in the aggregate grater that $1,000,000 generally
as they become due unless disputed by the Company in good faith; or the Company or any subsidiary of the Company shall call a
meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or the Company or any
subsidiary of the Company shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in
any of the foregoing; or any corporate or other action is taken by the Company or any subsidiary of the Company for the purpose
of effecting any of the foregoing. For the sake of clarity, any action or proceeding instituted in reliance upon the exchange
provisions afforded by Section 3(a)(10) of the Securities Act shall not constitute and Event of Default.

 

(iii)
The Company or any subsidiary of the Company shall default in any of its obligations under any other debenture or any mortgage,
credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued,
unless the Company is contesting such obligations in good faith;

 

(iv)
The Common Stock ceases to be so quoted or listed for trading for trading on the Trading Market (as defined in the Securities
Purchase Agreement) for a period of 5 consecutive Trading Days;

 

(v)
The Company’s (A) failure to cure a Conversion Failure by delivery of the required number of shares of Common Stock within
3 Business Days after the applicable Conversion Failure or (B) notice, written or oral, to any holder of the Debenture, including
by way of public announcement, at any time, of its intention not to comply with a request for conversion of the Debenture into
shares of Common Stock that is tendered in accordance with the provisions of the Debentures;

 

(vi)
The Company shall fail for any reason to deliver the payment in cash pursuant to a Buy-In (as defined herein) within 3 Business
Days after such payment is due;

 

(vii)
The Company shall fail to observe or perform any other covenant, agreement or warranty contained in, or otherwise commit any breach
or default of any provision of this Debenture (except as may be covered by Section 2(a)(i) through 2(a)(vi) hereof) or any Transaction
Documents (as defined in Section 17) which is not cured within the time prescribed.

 

(viii)
any Event of Default occurs with respect to any Transaction Document.

 

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(b)
During the time that any portion of this Debenture is outstanding, if any Event of Default has occurred, the full unpaid Principal
amount of this Debenture, together with Interest and other amounts owing in respect thereof, to the date of acceleration shall
become at the Holder’s election, immediately due and payable in cash or shares of Common Stock at the Market Conversion
Price. In addition to any other remedies, the Holder shall have the right (but not the obligation) to convert this Debenture at
any time after an Event of Default at the Market Conversion Price. Except as provided for herein, the Holder need not provide,
and the Company hereby waives, any presentment, demand, protest or other notice of any kind, (other than required notice of conversion)
and the Holder may if such Event of Default remains uncured after notice as may be provided for in the Transaction Documents immediately
enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration
may be rescinded and annulled by Holder at any time prior to payment hereunder. No such rescission or annulment shall affect any
subsequent Event of Default or impair any right consequent thereon.

 

(3)
COMPANY INSTALLMENT IN CASH, CONVERSION AND OPTIONAL REDEMPTION.

 

(a)
General. On each applicable Installment Date, the Company shall pay the Installment Amount by either (i) converting such
Installment Amount into shares of Common Stock of the Company (a “Company Conversion Payment”) in accordance
with this Section 3, provided that there is not then an Equity Conditions Failure, nor is the Company Installment Conversion Payment
Limitation exceeded, (ii) paying to the Holder of this Debenture a cash amount equal to the Installment Amount plus the applicable
Cash Payment Premium (collectively, a “Company Cash Payment”), or (iii) electing a combination of a Company
Conversion Payment and a Company Cash Payment so long as all of the outstanding applicable Installment Amount shall be paid (whether
in cash or converted into shares of the Company’s Common Stock as provided for herein) subject to the provisions of this
Section 3.

 

(b)
On or prior to the date which is the 3rd Trading Day prior to each Installment Date (each, an “Installment
Notice Date”), the Company shall deliver written notice in the form attached as Exhibit I hereto (each, a “Company
Installment Notice”) to the Holder which Company Installment Notice shall (i) either (A) confirm that the applicable
Installment Amount of the Holder’s Debenture shall be converted in whole pursuant to a Company Conversion Payment (such
amount to be converted, the “Company Conversion Amount”), or (B) (1) specify the portion of the applicable
Installment Amount (including Interest and the applicable Cash Payment Premium) which the Company elects to pay in cash, or is
required to pay in cash in accordance with the provisions of this Debenture, pursuant to a Company Cash Payment (the “Company
Cash Amount”) and (2) the portion of the applicable Installment Amount (including Interest) that the Company elects
to convert pursuant to a Company Conversion Payment, which amounts when added together must equal the applicable Installment Amount
and (ii) if the Installment Amount is to be paid, in whole or in part, pursuant to a Company Conversion Payment, certify that
there is not then an Equity Conditions Failure as of the date of the Company Installment Notice.

 

If
the Company does not timely deliver a Company Installment Notice in accordance with this Section 3, then the Company shall be
deemed to have delivered an irrevocable Company Installment Notice confirming a Company Conversion Payment and shall be deemed
to have certified that there is not then an Equity Conditions Failure in connection with any such conversion. The Company Conversion
Amount (whether set forth in the Company Installment Notice or by operation of this Section 3) shall be converted in accordance
with Section 3(c) and the Company Cash Amount shall be paid in accordance with Section 3(d).

 

(c)
Mechanics of Company Conversion Payment. Subject to Section 3(e), if the Company delivers a Company Installment Notice
and elects, or is deemed to have elected, in whole or in part, a Company Conversion Payment, then the applicable Company Conversion
Amount shall be converted as of the applicable Installment Date by converting such Company Conversion Amount at the Market Conversion
Price; provided that the Equity Conditions are then satisfied and the Company Installment Conversion Payment Limitation is not
exceeded on such Installment Date (unless waived in writing by the Holder). Such shares of the Company’s Common Stock to
be delivered in connection with such Company Conversion Payment shall be issued in accordance with Section 4(e)(ii) herein.

 

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If
the Equity Conditions are not satisfied or if the Company Installment Conversion Payment Limitation is exceeded on such Installment
Date (unless waived in writing by the Holder), then at the option of the Holder designated in writing to the Company, the Holder
may require the Company to redeem all or any part of the unconverted Company Conversion Amount designated by the Holder (such
designated amount is referred to as the “Unconverted Installment Amount”) and the Company shall pay to the
Holder within 3 days of such Installment Date, by wire transfer of immediately available funds, an amount in cash equal to such
Unconverted Installment Amount. If the Company fails to redeem any Unconverted Installment Amount by the 3rd day following
the applicable Installment Date, then the Holder shall have all rights under this Debenture (including, without limitation, such
failure constituting an Event of Default). Notwithstanding anything to the contrary in this Section 3(c), until the Company delivers
Common Stock representing the Company Conversion Amount to the Holder, the Company Conversion Amount may be converted by the Holder
into Common Stock pursuant to Section 4. In the event that the Holder elects to convert the Company Conversion Amount prior to
the applicable Installment Date as set forth in the immediately preceding sentence, the Company Conversion Amount so converted
shall be deducted from the Installment Amount relating to the applicable Installment Date as set forth in the applicable Conversion
Notice.

 

(d)
Mechanics of Company Cash Payment. If the Company elects a Company Cash Payment in accordance with Section 3(b), then the
Company Cash Amount, if any, which is to be paid to the Holder on the applicable Installment Date shall be paid by the Company
on such Installment Date, to the Holder by wire transfer of immediately available funds, in an amount in cash equal to the Installment
Amount being repaid in cash, plus the Cash Payment Premium of the Principal portion of such Installment Amount, plus accrued and
unpaid Interest. If the Company fails to deliver to the Holder via wire transfer the Company Cash Amount on the applicable Installment
Date then at the option of the Holder designated in writing to the Company (any such designation, “Conversion Notice”
for purposes of this Debenture), the Holder may require the Company to convert all or any part of the Company Cash Amount into
shares of Common Stock of the Company at the Market Conversion Price. Conversions required by this Section 3(d) shall be made
in accordance with the provisions of Section 4(d). Notwithstanding anything to the contrary in this Section 3(d), until the Company
Cash Amount is paid in full, the Company Cash Amount may be converted, in whole or in part, by the Holder into Common Stock pursuant
to Section 4. In the event the Holder elects to convert all or any portion of the unpaid Company Cash Amount prior to the applicable
Installment Date as set forth in the immediately preceding sentence, the Company Cash Amount so converted shall be deducted from
the Installment Amount relating to the applicable Installment Date as set forth in the applicable Conversion Notice.

 

(e)
Deferred Installment Amount. Notwithstanding any provision of this Section 3 to the contrary, the Holder may, at its option
and in its sole discretion, deliver a written notice to the Company on or prior to any Installment Notice Date electing to have
the payment of all or any portion of an Installment Amount payable on such Installment Date deferred to the Maturity Date.

 

(f)
Cancellation of Installment Amount. Notwithstanding any provision of this Section 3 to the contrary, in the event that
the VWAP of the Common Stock equals or exceeds 110% of the Fixed Conversion Price, as quoted by Bloomberg, LP, for each of the
5 consecutive Trading Days immediately preceding the Installment Notice Date and no Event of Default has occurred then the Installment
Amount payable on such Installment Date may be deferred to the Maturity Date, at the discretion of the Company.

 

(g)
Company’s Cash Redemption. The Company at its option shall have the right to redeem (a “Redemption”),
in part or in whole, outstanding Principal and Interest under this Debenture in addition to any Installment Amount payments prior
to the Maturity Date provided that as of the date of the Holder’s receipt of a Redemption Notice (as defined herein) (i)
the VWAP of the Company’s Common Stock is less than the Fixed Conversion Price and (ii) there is no Equity Conditions Failure.
The Company shall pay an amount equal to the Principal amount being redeemed plus an amount equal to the Redemption Premium plus
outstanding and accrued Interest. In order to make a Redemption pursuant to this Section, the Company shall first provide 3 business
days advanced written notice to the Holder of its intention to make a redemption (the “Redemption Notice”)
setting forth the amount of Principal and Interest it desires to redeem plus the applicable Redemption Premium (the “Redemption
Amount”). After receipt of the Redemption Notice the Holder shall have 2 Business Days to elect to convert all or any
portion of this Debenture, subject to the limitations set forth in Section 4(f). On the 4th Business Day after the
Redemption Notice, the Company shall deliver to the Holder via wire transfer of immediately available funds the Redemption Amount
with respect to the Principal Amount and Interest redeemed after giving effect to conversions by the Holder effected during the
1 Business Day period.

 

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(4)
CONVERSION OF DEBENTURE. This Debenture shall be convertible into shares of the Company’s Common Stock, on the terms
and conditions set forth in this Section 4.

 

(a)
Conversion Right. Subject to the provisions of Section 4(f), at any time or times on or after the Issuance Date and notwithstanding
any pending Company Cash Payment, Company Conversion Payment or Redemption, the Holder shall be entitled to convert any portion
of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and nonassessable shares of Common Stock in
accordance with Section 4(e)(i), at the Fixed Conversion Price. The number of shares of Common Stock issuable upon conversion
of any Conversion Amount pursuant to this Section 4(a) shall be determined by dividing (x) such Conversion Amount by (y) the Fixed
Conversion Price (the “Conversion Rate”). The Company shall not issue any fraction of a share of Common Stock
upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall
round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp
and similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion
Amount.

 

(b)
“Conversion Amount” means the portion of the Principal and accrued Interest to be converted, redeemed or otherwise
with respect to which this determination is being made.

 

(c)
“Fixed Conversion Price” means, as of any Conversion Date (as defined below) or other date of determination,
$0.70, subject to adjustment as provided herein. All such determinations to be appropriately adjusted for any stock split,
stock dividend, stock combination or other similar transaction.

 

(d)
“Market Conversion Price” means, as of any Conversion Date (as defined below) or other date of determination,
85% of the lowest VWAP of the Company’s Common Stock during the 10 Trading Days immediately preceding the Conversion Date.
All such prices used in such determinations to be appropriately adjusted for any stock split, stock dividend, stock combination
or other similar transaction.

 

(e)
Mechanics of Conversion.

 

(i)
Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”),
the Holder shall (A) transmit by electronic mail (or otherwise deliver), for receipt on or prior to 5:00 p.m., New York Time,
on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit II (the “Conversion
Notice”) to the Company and (B) if required by Section 4(e)(iv), surrender this Debenture to a nationally recognized
overnight delivery service for delivery to the Company (or an indemnification undertaking reasonably satisfactory to the Company
with respect to this Debenture in the case of its loss, theft or destruction). On or before the 3rd Business Day following
(i) the date of receipt of a Conversion Notice or (ii) an Installment Date if the Company has delivered a Company Installment
Notice pursuant to which a Company Conversion Payment will be made (the “Share Delivery Date”), the Company
shall (X) if legends are not required to be placed on certificates of Common Stock pursuant to the Securities Purchase Agreement
and provided that the Transfer Agent is participating in the Depository Trust Company’s (“DTC”) Fast
Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled
to the Holder’s or its designee’s balance account with DTC through its DWAC system or (Y) if the Transfer Agent is
not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified in the
Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock
to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless required pursuant to the
Securities Purchase Agreement. If this Debenture is physically surrendered for conversion and the outstanding Principal of this
Debenture is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable
and in no event later than 3 Business Days after receipt of this Debenture and at its own expense, issue and deliver to the holder
a new Debenture representing the outstanding Principal not converted. The Person or Persons entitled to receive the shares of
Common Stock issuable upon a conversion of this Debenture shall be treated for all purposes as the record holder or holders of
such shares of Common Stock upon the transmission pursuant to the notice delivery provisions in Section 7 herein of a Conversion
Notice.

 

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(ii)
Company’s Failure to Timely Convert. Company shall issue and deliver a certificate to the Holder or credit the Holder’s
balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon each conversion of any
Conversion Amount within 3 Trading Days after the Company’s receipt by electronic mail of a copy of a Conversion Notice
or an Installment Date if the Company has delivered a Company Installment Notice pursuant to which a Company Installment Conversion
Payment will be made. If the Company fails to deliver such shares within 3 Trading Days, unless such delivery failure results
from a failure of the Company’s transfer agent to issue such shares as a result of an act of terrorism, war, natural disaster,
act of god or other force majeure event, (a “Conversion Failure”), and if on or after a Conversion Failure
the Holder purchases (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder
of Common Stock issuable upon such conversion that the Holder anticipated receiving from the Company (a “Buy-In”),
then the Company shall, within 3 Business Days after the Holder’s request and in the Holder’s discretion, either (i)
pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other
out of pocket expenses, if any) for the shares of Common Stock so purchased (the “Buy-In Price”),
at which point the Company’s obligation to deliver such certificate (and to issue such Common Stock) shall terminate, or
(ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Common Stock and pay
cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares
of Common Stock, times (B) the Closing Bid Price on the Conversion Date.

 

(iii)
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Debenture
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Debenture to the Company unless
(A) the full Conversion Amount represented by this Debenture is being converted or (B) the Holder has provided the Company with
prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Debenture upon physical
surrender of this Debenture. The Holder and the Company shall maintain records showing the Principal and Interest converted and
the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not
to require physical surrender of this Debenture upon conversion.

 

(f)
Limitations on Conversions.

 

(i)
Beneficial Ownership. The Holder shall not have the right to convert any portion of this Debenture or otherwise receive
shares of Common Stock hereunder to the extent that after giving effect to such conversion or receipt of such shares, the Holder,
together with any affiliate thereof, would beneficially own (as determined in accordance with Section 13(d) of the Exchange Act
and the rules promulgated thereunder) in excess of 4.99% of the number of shares of Common Stock outstanding immediately after
giving effect to such conversion or receipt of shares as payment of interest. Since the Holder will not be obligated to report
to the Company the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at
issue would result in the issuance of shares of Common Stock in excess of 4.99% of the then outstanding shares of Common Stock
without regard to any other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have
the authority and obligation to determine whether the restriction contained in this Section will limit any particular conversion
hereunder and to the extent that the Holder determines that the limitation contained in this Section applies, the determination
of which portion of the principal amount of this Debenture is convertible shall be the responsibility and obligation of the Holder.
If the Holder has delivered a Conversion Notice for a principal amount of this Debenture that, without regard to any other shares
that the Holder or its affiliates may beneficially own, would result in the issuance in excess of the permitted amount hereunder,
the Company shall notify the Holder of this fact and shall honor the conversion for the maximum principal amount permitted to
be converted on such Conversion Date in accordance with Section 4(a) and, any principal amount tendered for conversion in excess
of the permitted amount hereunder shall remain outstanding under this Debenture. The provisions of this Section may be waived
by a Holder (but only as to itself and not to any other Holder) upon not less than 65 days prior notice to the Company. Other
Holders shall be unaffected by any such waiver.

 

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(ii)
Principal Market Limitation. The Company shall not issue any shares of Common Stock pursuant to the terms of this Debenture
if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock that the Company may
issue upon conversion of the Debenture in compliance with the Company’s obligations under the rules or regulations of the
Nasdaq Capital Market (“Trading Market”) (the number of shares which may be issued without violating such rules
and regulations, the “Exchange Cap”), except that such limitation shall not apply in the event that the Company
(A) obtains the approval of its stockholders as required by the applicable rules of the Trading Market for issuances of shares
of Common Stock in excess of such amount or (B) obtains a written opinion from outside counsel to the Company that such approval
is not required, which opinion shall be reasonably satisfactory to the Holder. Until such approval or such written opinion is
obtained, the Holder shall not be issued in the aggregate shares of Common Stock upon conversion of the Debentures in an amount
greater than the product of (i) the Exchange Cap as of the issuance date multiplied by (ii) the quotient of (1) the initial principal
amount of this Debenture divided by (2) the initial principal amount of all other debentures issued pursuant to the Securities
Purchase Agreement (the “Exchange Cap Allocation”). In the event that any Holder shall sell or otherwise transfer
any of such Holder’s Debentures, the transferee shall be allocated a pro rata portion of such Holder’s Exchange Cap
Allocation with respect to such portion of such Debentures so transferred, and the restrictions of the prior sentence shall apply
to such transferee with respect to the portion of the Exchange Cap Allocation so allocated to such transferee.

 

(g)
Other Provisions.

 

(i)
The Company shall at all times reserve and keep available out of its authorized Common Stock the full number of shares of Common
Stock issuable upon conversion of all outstanding amounts under this Debenture; and within 3 Business Days following the receipt
by the Company of a Holder’s notice that such minimum number of Underlying Shares is not so reserved, the Company shall
promptly reserve a sufficient number of shares of Common Stock to comply with such requirement.

 

(ii)
All calculations under this Debenture shall be rounded to the nearest $0.0001 or whole share.

 

(h)
Adjustment of the Fixed Conversion Price upon Subdivision or Combination of Common Stock. If the Company, at any time while
this Debenture is outstanding, shall (a) pay a stock dividend or otherwise make a distribution or distributions on shares of its
Common Stock or any other equity or equity equivalent securities payable in shares of its Common Stock, (b) subdivide outstanding
shares of Common Stock into a larger number of shares, (c) combine (including by way of reverse stock split) outstanding shares
of its Common Stock into a smaller number of shares, or (d) issue by reclassification of shares of the Common Stock any shares
of capital stock of the Company, then the Fixed Conversion Price, as applicable, shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such event and
of which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant
to this Section 4(h) shall become effective immediately after the record date for the determination of stockholders entitled to
receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

 

(5)
REISSUANCE OF THIS DEBENTURE.

 

(a)
Transfer. If this Debenture is to be transferred, the Holder shall surrender this Debenture to the Company, whereupon the
Company will, subject to the satisfaction of the transfer provisions of the Securities Purchase Agreement, forthwith issue and
deliver upon the order of the Holder a new Debenture (in accordance with Section 5(d)), registered in the name of the registered
transferee or assignee, representing the outstanding Principal being transferred by the Holder and, if less than the entire outstanding
Principal is being transferred, a new Debenture (in accordance with Section 5(d)) to the Holder representing the outstanding Principal
not being transferred. The Holder and any assignee, by acceptance of this Debenture, acknowledge and agree that, by reason of
the provisions of Section 4(c)(iii) following conversion or redemption of any portion of this Debenture, the outstanding Principal
represented by this Debenture may be less than the Principal stated on the face of this Debenture.

 

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(b)
Lost, Stolen or Mutilated Debenture. Upon receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Debenture, and, in the case of loss, theft or destruction, of any indemnification
undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of
this Debenture, the Company shall execute and deliver to the Holder a new Debenture (in accordance with Section 5(d)) representing
the outstanding Principal.

 

(c)
Debenture Exchangeable for Different Denominations. This Debenture is exchangeable, upon the surrender hereof by the Holder
at the principal office of the Company, for a new Debenture or Debentures (in accordance with Section 5(d)) representing in the
aggregate the outstanding Principal of this Debenture, and each such new Debenture will represent such portion of such outstanding
Principal as is designated by the Holder at the time of such surrender.

 

(d)
Issuance of New Debentures. Whenever the Company is required to issue a new Debenture pursuant to the terms of this Debenture,
such new Debenture (i) shall be of like tenor with this Debenture, (ii) shall represent, as indicated on the face of such new
Debenture, the Principal remaining outstanding (or in the case of a new Debenture being issued pursuant to Section 5(a) or Section
5(c), the Principal designated by the Holder which, when added to the principal represented by the other new Debentures issued
in connection with such issuance, does not exceed the Principal remaining outstanding under this Debenture immediately prior to
such issuance of new Debentures), (iii) shall have an issuance date, as indicated on the face of such new Debenture, which is
the same as the Issuance Date of this Debenture, (iv) shall have the same rights and conditions as this Debenture, and (v) shall
represent accrued and unpaid Interest from the Issuance Date to the date the Debenture is reissued.

 

(6)
NOTICES. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered upon: (i) receipt, when delivered personally, (ii) 1 Business
Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the
party to receive the same, or (iii) receipt, which shall mean the next Business day if such notice is sent after 5:00pm EST, when
sent by electronic mail (provided that the electronic mail transmission is not returned in error or the sender is not otherwise
notified of any error in transmission. The addresses and e-mail addresses for such communications shall be:

 

	If
    to the Company, to:	Taronis
    Technologies, Inc.
	 	11885
    44th Street North
	 	Clearwater,
    Florida 33762
	 	Attention:
    Tyler B. Wilson, Esq. 
	 	Email:
          tylerwilson@taronistech.com 

 

	If
    to the Holder:	YA
                                         II PN, Ltd.

        c/o
        Yorkville Advisors Global, LP

	 	1012
    Springfield Avenue
	 	Mountainside,
    NJ 07092
	 	Attention:
    Mark Angelo
	 	Email:
          mangelo@yorkvilleadvisors.com

 

	With
    a copy to:	David
    Gonzalez, Esq. 
	 	1012
    Springfield Avenue
	 	Mountainside,
    NJ 07092
	 	Email:
          Legal@yorkvilleadvisors.com 

 

or
at such other address and/or electronic email address and/or to the attention of such other person as the recipient party has
specified by written notice given to each other party 3 Business Days prior to the effectiveness of such change. Written confirmation
of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically
generated by the sender’s computer containing the time, date, recipient’s electronic mail address and the text of
such electronic mail or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of
personal service, receipt by electronic mail or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

    	 	8	 

    	 

    

 

(7)
Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligations of the Company, which
are absolute and unconditional, to pay the principal of, interest and other charges (if any) on, this Debenture at the time, place,
and rate, and in the coin or currency, herein prescribed. This Debenture is a direct obligation of the Company. As long as this
Debenture is outstanding, the Company shall not and shall cause their subsidiaries not to, without the consent of the Holder,
(i) amend its certificate of incorporation, bylaws or other charter documents so as to adversely affect any rights of the Holder
(which shall include combining (by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares);
(ii) repay, repurchase or offer to repay, repurchase or otherwise acquire shares of its Common Stock or other equity securities
other than as to the Underlying Shares to the extent permitted or required under the Transaction Documents or as may be required
pursuant to the Company’s convertible loans outstanding as of the date hereof, or as long as there is not in existence any
uncured Event of Default, as may be permitted pursuant to the Company’s convertible loans; or (iii) enter into any agreement
with respect to any of the foregoing.

 

(8)
This Debenture shall not entitle the Holder to any of the rights of a stockholder of the Company, including without limitation,
the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders
or any other proceedings of the Company, unless and to the extent converted into shares of Common Stock in accordance with the
terms hereof.

 

(9)
This Debenture shall be governed by and construed in accordance with the laws of the State of New York, without giving effect
to conflicts of laws thereof. Each of the parties consents to the jurisdiction of the state and federal courts sitting in The
City of New York, Borough of Manhattan in connection with any dispute arising under this Debenture and hereby waives, to the maximum
extent permitted by law, any objection, including any objection based on forum non conveniens to the bringing of any such proceeding
in such jurisdictions.

 

(10)
If the Company fails to strictly comply with the terms of this Debenture, then the Company shall reimburse the Holder promptly
for all reasonable fees, costs and expenses, including, without limitation, attorneys’ fees and expenses incurred by the
Holder in any action in connection with this Debenture, including, without limitation, those incurred: (i) during any workout,
attempted workout, and/or in connection with the rendering of legal advice as to the Holder’s rights, remedies and obligations,
(ii) collecting any sums which become due to the Holder, (iii) defending or prosecuting any proceeding or any counterclaim to
any proceeding or appeal; or (iv) the protection, preservation or enforcement of any rights or remedies of the Holder.

 

(11)
Any waiver by the Holder of a breach of any provision of this Debenture shall not operate as or be construed to be a waiver of
any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Holder to insist
upon strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver or deprive that
party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture. Any waiver must
be in writing.

 

(12)
If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect,
and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons
and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable
laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted
rate of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Debenture as contemplated
herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this
indenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted
to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

    	 	9	 

    	 

    

 

(13)
Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day.

 

(14)
THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

 

(15)
CERTAIN DEFINITIONS For purposes of this Debenture, the following terms shall have the following meanings:

 

(a)
“Bloomberg” means Bloomberg Financial Markets.

 

(b)
“Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday in
the United States or a day on which banking institutions are authorized or required by law or other government action to close.

 

(c)
“Cash Payment Premium” means with regard to any Installment Amount being paid in cash an amount equal to 15%
of the of the Installment Amount.

 

(d)
“Closing Bid Price” means the price per share in the last reported trade of the Common Stock on the Trading
Market or on the exchange which the Common Stock is then listed as quoted by Bloomberg.

 

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

 

(f)
“Commission” means the Securities and Exchange Commission.

 

(g)
“Common Stock” means the common stock, par value $0.001, of the Company and stock of any other class into which
such shares may hereafter be changed or reclassified.

 

(h)
“Company Installment Conversion Payment Limitation” means 300% of the average daily dollar trading volume,
as quoted by Bloomberg, LP of the Company’s Common Stock over the 10 consecutive Trading Day period immediately preceding
an Installment Notice.

 

(i)
“Eligible Market” means any of the NASDAQ Capital Market, NASDAQ Global Market the New York Stock Exchange,
the NYSE MKT, or the OTC Markets, and any successor to any of the foregoing markets or exchanges.

 

    	 	10	 

    	 

    

 

(j)
“Equity Conditions” means that each of the following conditions is satisfied: (i) on each day during the period
beginning 2 weeks prior to the applicable date of determination and ending on and including the applicable date of determination
(the “Equity Conditions Measuring Period”), either (x) the Underlying Shares Registration Statement filed pursuant
to the Registration Rights Agreement shall be effective and available for the resale of all applicable shares of Common Stock
to be issued in connection with the event requiring determination or (y) all applicable shares of Common Stock to be issued in
connection with the event requiring determination shall be eligible for sale without restriction and without the need for registration
under any applicable federal or state securities laws; (ii) during the Equity Conditions Measuring Period, the Company shall have
delivered Conversion Shares with respect to any prior conversions of the Debenture, if any, to the Holder on a timely basis as
set forth in Section 4(e)(ii) hereof; (iii) any applicable shares of Common Stock to be issued in connection with the event requiring
determination may be issued in full without violating Section 4(f) hereof and the rules or regulations of the Trading Market;
(iv) during the Equity Conditions Measuring Period, there shall not have occurred) an Event of Default; and (v) the Company shall
have no knowledge of any fact that would (x) cause the Registration Statements required pursuant to the Registration Rights Agreement
not to be effective and available for the resale of all applicable shares of Common Stock to be issued in connection with the
event requiring determination (y) cause any applicable shares of Common Stock to be issued in connection with the event requiring
determination not to be eligible for sale without restriction and without the need for registration under any applicable federal
or state securities laws, or (z) prevent the shares of Common Stock to be issued in connection with the event requiring determination
from being designated for quotation on the Trading Market.

 

(k)
“Equity Conditions Failure” means that on any applicable date the Equity Conditions have not been satisfied
(or waived in writing by the Holder).

 

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

 

(m)
“Installment Amount” means with respect to any Installment Date, $500,000 of Principal of this Debenture, plus
accrued and outstanding Interest. In the event the Holder shall sell or otherwise transfer any portion of this Debenture, the
transferee shall be allocated a pro rata portion of each unpaid Installment Amount hereunder. In the event that the Holder is
the holder of more than one Debenture of this series of Convertible Debentures issued pursuant to the Securities Purchase Agreement,
then the Holder shall have the right to allocate the total Installment Amount due to it among the Debentures as it sees fit and
shall notify the Company of such allocation.

 

(n)
“Installment Date” means each of the following dates: (i) September 3, 2019, (ii) October 3, 2019, and (iii)
November 3, 2019.

 

(o)
“Original Issue Date” means the date of the first issuance of this Debenture regardless of the number of transfers
and regardless of the number of instruments, which may be issued to evidence such Debenture.

 

(p)
“Person” means a corporation, an association, a partnership, organization, a business, an individual, a government
or political subdivision thereof or a governmental agency.

 

(q)
“Redemption Premium” means 15% of the Principal amount.

 

(r)
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

(s)
“Securities Purchase Agreement” means the Securities Purchase Agreement dated May 3, 2019 by and among the
Company and the Investor.

 

(t)
“Trading Day” means a day on which the shares of Common Stock are quoted on the Trading Market on which the
shares of Common Stock are then quoted or listed; provided, that in the event that the shares of Common Stock are not listed or
quoted, then Trading Day shall mean a Business Day.

 

(u)
“Trading Market” shall have the meaning set forth in the Securities Purchase Agreement.

 

(v)
“Transaction Documents” means the Securities Purchase Agreement or any other agreement delivered in connection
with the Securities Purchase Agreement, including, without limitation, the Irrevocable Transfer Agent Instructions and the Registration
Rights Agreement.

 

(w)
“Underlying Shares” means the shares of Common Stock issuable upon conversion of this Debenture in accordance
with the terms hereof.

 

(x)
“Underlying Shares Registration Statement” means a registration statement meeting the requirements set forth
in the Registration Rights Agreement, covering among other things the resale of the Underlying Shares and naming the Holder as
a “selling stockholder” thereunder.

 

(y)
“VWAP” means, for any security as of any date, the daily dollar volume-weighted average price for such security
as reported by Bloomberg, LP through its “Historical Price Table Screen (HP)” with Market: Weighted Ave function selected.

 

[Signature
Page Follows]

 

    	 	11	 

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Convertible Debenture to be duly executed by a duly authorized officer as of
the date set forth above.

 

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

 

    	 	 	 

    	 

    

 

EXHIBIT
I

COMPANY
INSTALLMENT NOTICE 

 

Date:
__________________

 

VIA
E-MAIL: trading@yorkvilleadvisors.com and dfine@yorkvilleadvisors.com 

 

This
letter shall serve as Company Instalment Notice by Taronis Technologies, Inc. (the “Company”) in accordance
with Clause 3(b) of the Convertible Debentures (the “Debentures”) issued to YA II PN, Ltd (the “Holder”).
Unless otherwise specified, capitalized terms used in this letter shall have the meaning assigned to them in the Debentures.

 

	Applicable
    Instalment Date:	___________
	 	 
	Debenture
    Number:	TRNX-1

 

	 	Principal
    Amount:	$
    500,000
	 	 	 
	 	Accrued
    and unpaid Interest:	$
	 	 	 
	 	Applicable
    Cash Payment Premium:1	$

 

Company
Cash Payment

 

Portion
of Applicable Instalment Amount which the Company elects to pay in cash (or is required to pay in cash in accordance with the
provisions of the Debenture) pursuant to a Company Cash Payment:

 

	 	Debenture
    Number:	TRNX-1
	 	 	 
	 	Principal
    Amount:	$
	 	 	 
	 	Accrued
    and unpaid Interest:	$
	 	 	 
	 	Applicable
    Cash Payment Premium:	$
	 	 	 
	 	Total
    Company Cash Amount:	$

 

Company
Conversion Payment

 

Portion
of Applicable Instalment Amount which the Company elects to convert pursuant to a Company Conversion Payment:

 

	 	Debenture
    Number:	TRNX-1
	 	 	 
	 	Principal
    Amount:	$
    
	 	 	 
	 	Accrued
    and unpaid Interest:	$
    
	 	 	 
	 	Total
    Company Conversion Amount:	$
    

 

If
the Company is electing to pay any part of the Instalment Amount pursuant to a Company Conversion Payment above, then:

 

	 	(a)	the
    Company hereby certifies that there no Equity Conditions Failure as of the date of this Company Instalment Notice, and 
	 	 	 
	 	(b)	the
    applicable Company Conversion Amount shall be converted as of the applicable Instalment Date by converting on such Instalment
    Date the Company Conversion Amount at the Market Conversion Price2; provided that the Equity Conditions are then
    satisfied (or waived in writing by the Holder) and the Company Instalment Conversion Payment Limitation3 is not
    exceeded on such Instalment Date. 

 

If
the Company is electing a Company Cash Payment, then the Company Cash Amount shall be paid by the Company on the Instalment Date
to the Holder by wire transfer of immediately available funds to the Holder.

 

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

 

1
Cash Payment Premium means with regard to any Instalment Amount being paid in cash an amount equal to an amount equal to
15% of the of the Instalment.

2
Market Conversion Price means 85% of the lowest VWAP of the Company’s Common Stock during the 10 Trading Days immediately
preceding the Conversion Date.

3
Company Instalment Conversion Payment Limitation means 300% of the average daily dollar trading volume, as quoted by Bloomberg,
LP of the Company’s Common Stock over the 10 consecutive Trading Day period immediately preceding an Instalment Notice.

 

    	 	 	 

    	 

    

 

EXHIBIT
II

CONVERSION
NOTICE

 

(To
be executed by the Holder in order to Convert the Debenture)

 

TO:

 

The
undersigned hereby irrevocably elects to convert $ ______________________ of the principal amount of Debenture No. TRNX-1 into
Shares of Common Stock of TARONIS TECHNOLOGIES, INC., according to the conditions stated therein, as of the Conversion
Date written below.

 

	Conversion
    Date:	_________________________________________________________
	 	 
	Conversion
    Amount to be converted:	$________________________________________________________
	 	 
	Applicable
    Conversion Price:	$________________________________________________________
	 	 
	Number
    of shares of Common Stock to be issued:	_________________________________________________________
	 	 
	Principal
    Amount of Debenture Unconverted:	$
	 	 
	Please
    issue the shares of Common Stock in the following name and to the following address:
	 
	Issue
    to:	 

 

	Authorized
    Signature:	_________________________________________________________
	 	 
	Name:	_________________________________________________________
	 	 
	Title:	_________________________________________________________
	 	 
	Broker
    DTC Participant Code:	
	 	 
	Account
    Number:Execution
Copy

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of May 3, 2019, by and among TARONIS TECHNOLOGIES,
INC., a Delaware corporation (the “Company”), and YA II PN, Ltd., a Cayman Islands exempt limited
partnership (the “Investor”).

 

RECITALS:

 

A.
In connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to the Investor $1,500,000 of convertible debentures (the “Convertible Debentures”),
which shall be convertible into shares of the Company’s common stock, par value $0.001 (the “Common Stock”)
(as converted, the “Conversion Shares. Capitalized terms not defined herein shall have the meaning ascribed to them
in the Securities Purchase Agreement.

 

B.
To induce the Investors to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute
(collectively, the “Securities Act”), and applicable state securities laws and other rights as provided for
herein.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Investors hereby agree as follows:

 

1.
DEFINITIONS.

 

As
used in this Agreement, the following terms shall have the following meanings:

 

(a)
“Effectiveness Deadline” means, with respect to a Registration Statement filed hereunder, the 120th calendar
day following the date hereof, provided, however, in the event the Company is notified by the U.S. Securities and Exchange Commission
(“SEC”) that one of the Registration Statements, as defined below, will not be reviewed or is no longer subject
to further review and comments, the Effectiveness Deadline as to such Registration Statement shall be the 5th calendar day following
the date on which the Company is so notified if such date precedes the date required above.

 

(b)
“Filing Deadline” means, with respect to a Registration Statement required hereunder, the 30th calendar day
following the date hereof.

 

(c)
“Person” shall have the meaning set forth in the Securities Purchase Agreement.

 

(d)
“Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus
that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to
the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such Prospectus.

 

(e)
“Registrable Securities” means all of (i) the Conversion Shares issuable upon conversion of the Convertible
Debentures, (ii) any additional shares issuable in connection with any anti-dilution provisions of the Convertible Debentures
(without giving effect to any limitations on exercise set forth in the Convertible Debentures) and (iii) any shares of Common
Stock issued or issuable with respect to the Conversion Shares as a result of any stock split, dividend or other distribution,
recapitalization or similar event or otherwise (in each case without giving effect to any limitations on exercise set forth in
the Convertible Debentures).

 

    	 	 	 

    	 	 	 

    

 

(f)
“Registration Statement” means the registration statements required to be filed hereunder (including any additional
registration statements contemplated by Section 2(c)), including (in each case) the Prospectus, amendments and supplements to
such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

(g)
“Required Registration Amount” means (i) with respect to the initial Registration Statement at least 3,847,927
shares of Common Stock issued or to be issued upon conversion of the Convertible Debentures, and (ii) with respect to subsequent
Registration Statements at least such number of shares of Common Stock as shall equal up to 300%
of the maximum number of
shares of Common Stock issuable upon conversion
of all Convertible Debentures then outstanding
assuming for purposes hereof that (x) such Convertible Debentures are convertible
at the Market Conversion Price (as defined therein) in effect as of the date
of determination, and (y) any such conversion shall not take into account any limitations on conversions set forth in the Convertible
Debentures, subject to any cutback set forth in Section 2(d).

 

(h)
“Rule 415” means Rule 415 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect
as such Rule.

 

2.
REGISTRATION.

 

(a)
The Company’s registration obligations set forth in this Section 2 including its obligations to file Registration Statements,
obtain effectiveness of Registration Statements, and maintain the continuous effectiveness of Registration Statement that have
been declared effective shall begin on the date hereof and continue until all the Registrable Securities have been sold or may
permanently be sold without any restrictions pursuant to Rule 144, as determined by the counsel to the Company pursuant to a written
opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the affected Holders (the “Registration
Period”).

 

(b)
Subject to the terms and conditions of this Agreement, the Company shall, on or prior to the Filing Deadline, prepare and file
with the SEC a Registration Statement on Form S-3 (or, if the Company is not then eligible, on Form S-1) covering the resale by
the Investor of Registrable Securities. Each Registration Statement prepared pursuant hereto shall register for resale at least
the number of shares of Common Stock equal to the Required Registration Amount as of date the Registration Statement is initially
filed with the SEC. Each Registration Statement shall contain the “Selling Stockholders” and “Plan
of Distribution” sections in substantially the form attached hereto as Exhibit A. The Company shall use its best
efforts to have each Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the
Effectiveness Deadline. Prior to the filing of the Registration Statement with the SEC, the Company shall furnish a draft of the
Registration Statement to the Investor for their review and comment. The Investor shall furnish comments on the Registration Statement
to the Company within twenty-four (24) hours of the receipt thereof from the Company.

 

(c)
During the Registration Period, the Company shall (i) promptly prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to a Registration Statement and the Prospectus used in connection with a Registration Statement, which
Prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep such Registration
Statement effective at all times during the Registration Period, (ii) prepare and file with the SEC additional Registration Statements
in order to register for resale under the Securities Act all of the Registrable Securities; (iii) cause the related Prospectus
to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and as so supplemented
or amended to be filed pursuant to Rule 424; (iv) respond as promptly as reasonably possible to any comments received from the
SEC with respect to a Registration Statement or any amendment thereto and as promptly as reasonably possible provide the Investors
true and complete copies of all correspondence from and to the SEC relating to a Registration Statement (provided that the Company
may excise any information contained therein which would constitute material non-public information as to any Investor which has
not executed a confidentiality agreement with the Company); and (v) comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities of the Company covered by such Registration Statement until such time as all
of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller
or sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a Registration Statement
which are required to be filed pursuant to this Agreement (including pursuant to this Section 2(c)) by reason of the Company’s
filing a report on Form 10-K, Form 10-Q, or Form 8-K or any analogous report under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), the Company shall incorporate such report by reference into the Registration Statement,
if applicable, or shall file such amendments or supplements with the SEC on the same day on which the Exchange Act report is filed
which created the requirement for the Company to amend or supplement the Registration Statement.

 

    	- 2 -

    	 

    

 

(d)
Reduction of Registrable Securities Included in a Registration Statement. Notwithstanding anything contained herein, in
the event that the SEC requires the Company to reduce the number of Registrable Securities to be included in a Registration Statement
in order to allow the Company to rely on Rule 415 with respect to a Registration Statement, then the Company shall be obligated
to include in such Registration Statement (which may be a subsequent Registration Statement if the Company needs to withdraw a
Registration Statement and refile a new Registration Statement in order to rely on Rule 415) only such limited portion of the
Registrable Securities as the SEC shall permit. Any Registrable Securities that are excluded in accordance with the foregoing
terms are hereinafter referred to as “Cut Back Securities.” To the extent Cut Back Securities exist, as soon
as may be permitted by the SEC, the Company shall be required to file a Registration Statement covering the resale of the Cut
Back Securities (subject also to the terms of this Section) and shall use best efforts to cause such Registration Statement to
be declared effective as promptly as practicable thereafter.

 

(e)
The Company shall, not less than two (2) Trading Days prior to the filing of each Registration Statement and not less than one
(1) Trading Day prior to the filing of any related amendments and supplements to all Registration Statements (except for annual
reports on Form 10-K), furnish to each Investor copies of all such documents proposed to be filed which contain information related
to such Investor, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to
the reasonable and prompt review of such Investors. The Company shall not file a Registration Statement or any such Prospectus
or any amendments or supplements thereto containing information relating to the Investors to which the Investors shall reasonably
object in good faith; provided that, the Company is notified of such objection in writing no later than two (2) Trading
Days after the Investors have been so furnished copies of a Registration Statement.

 

(f)
As promptly as practicable after becoming aware of such event or development, the Company shall notify each Investor in writing
of the happening of any event as a result of which the Prospectus included in a Registration Statement, as then in effect, includes
an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading (provided that in no event shall
such notice contain any material, nonpublic information), and promptly prepare a supplement or amendment to such Registration
Statement to correct such untrue statement or omission, and deliver ten (10) copies of such supplement or amendment to each Investor.
The Company shall also promptly notify each Investor in writing (i) when a Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective, (ii) of any
request by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information, and
(iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

 

3.
OBLIGATIONS OF THE INVESTORS.

 

(a)
The Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
2(f) such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement covering
such Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended prospectus contemplated
by Section 2(f) or receipt of notice that no supplement or amendment is required. Notwithstanding anything to the contrary, the
Company shall cause its transfer agent to deliver unrestricted certificates for shares of Common Stock to a transferee of an Investor
in accordance with the terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect
to which an Investor has entered into a contract for sale prior to the Investor’s receipt of a notice from the Company of
the happening of any event of the kind described in Section 2(f) and for which the Investor has not yet settled.

 

(b)
The Investor covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

    	- 3 -

    	 

    

 

4.
EXPENSES OF REGISTRATION.

 

All
expenses incurred in connection with registrations, filings or qualifications pursuant to Sections 2, including, without limitation,
all registration, listing and qualifications fees, printers, legal and accounting fees, except legal fees of Investor’s
counsel associated with the review of the Registration Statement and any comment letters issued by the SEC relating to such Registration
Statement, shall be paid by the Company.

 

5.
INDEMNIFICATION.

 

With
respect to Registrable Securities which are included in a Registration Statement under this Agreement:

 

(a)
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the
directors, officers, partners, employees, agents, representatives of, and each Person, if any, who controls any Investor within
the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Person”), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement
or expenses, joint or several (collectively, “Claims”) incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the offering under the securities or other “blue sky”
laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or
alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading;
(ii) any untrue statement or alleged untrue statement of a material fact contained in any final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein
were made, not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act,
any other law, including, without limitation, any state securities law, or any rule or regulation there under relating to the
offer or sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through
(iii) being, collectively, “Violations”). The Company shall reimburse the Investors and each such controlling
person promptly as such reasonable expenses are incurred and are due and payable, for any legal fees or disbursements or other
reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to
the contrary contained herein, the indemnification agreement contained in this Section 5(a): (x) shall not apply to a Claim by
an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information
furnished in writing to the Company by such Indemnified Person expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto; (y) shall not be available to the extent such Claim is based on
a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus
was timely made available by the Company pursuant to Section 2(e); and (z) shall not apply to amounts paid in settlement of any
Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
Person.

 

    	- 4 -

    	 

    

 

(b)
In connection with a Registration Statement, the Investor agrees to severally and not jointly indemnify, hold harmless and defend,
to the same extent and in the same manner as is set forth in Section 5(a), the Company, each of its directors, each of its officers,
employees, representatives, or agents and each Person, if any, who controls the Company within the meaning of the Securities Act
or the Exchange Act (each an “Indemnified Party”), against any Claim or Indemnified Damages to which any of
them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages
arise out of or is based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in
reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection
with such Registration Statement; and, subject to Section 5(d), such Investor will reimburse any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement
contained in this Section 5(b) and the agreement with respect to contribution contained in Section 6 shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior written consent of such Investor, which consent
shall not be unreasonably withheld; provided, further, however, that the Investor shall be liable under this Section 5(b) for
only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such Investor as a result of the sale
of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of such Indemnified Party. Notwithstanding anything to the contrary contained herein,
the indemnification agreement contained in this Section 5(b) with respect to any prospectus shall not inure to the benefit of
any Indemnified Party if the untrue statement or omission of material fact contained in the prospectus was corrected and such
new prospectus was delivered to each Investor prior to such Investor’s use of the prospectus to which the Claim relates.

 

(c)
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 5, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses of not more than one (1) counsel for such Indemnified Person or Indemnified Party to be
paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection
with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party
all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The
indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the
defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action,
claim or proceeding effected without its prior written consent; provided, however, that the indemnifying party shall not unreasonably
withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party
or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a
release from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person or Indemnified Party under this Section 5, except to the extent that the indemnifying party is prejudiced
in its ability to defend such action.

 

(d)
The indemnification required by this Section 5 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

    	- 5 -

    	 

    

 

(e)
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

6.
CONTRIBUTION.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 5 to the fullest extent
permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities
who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited
in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

 

7.
REPORTS UNDER THE EXCHANGE ACT.

 

With
a view to making available to the Investors the benefits of Rule 144 promulgated under the Securities Act or any similar rule
or regulation of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration
(“Rule 144”), and as a material inducement to the Investor’s purchase of the Convertible Debentures,
the Company represents, warrants, and covenants to the following:

 

(a)
The Company is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all required reports
under section 13 or 15(d) of the Exchange Act during the 12 months prior to the date hereof (or for such shorter period that the
issuer was required to file such reports), other than Form 8-K reports.

 

(b)
During the Registration Period, the Company shall file with the SEC in a timely manner all required reports under section 13 or
15(d) of the Exchange Act (it being understood that nothing herein shall limit the Company’s obligations under the Securities
Purchase Agreement) and such reports shall conform to the requirement of the Exchange Act and the SEC for filing thereunder.

 

(c)
The Company shall furnish to the Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written
statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent annual
or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information
as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

8.
AMENDMENT OF REGISTRATION RIGHTS.

 

Provisions
of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and Investors who then hold at least two-thirds
(2/3) of the Registrable Securities. Any amendment or waiver effected in accordance with this Section 8 shall be binding upon
each Investor and the Company. No such amendment shall be effective to the extent that it applies to fewer than all of the holders
of the Registrable Securities. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification
of any provision of any of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

 

9.
MISCELLANEOUS.

 

(a)
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities or owns the right to receive the Registrable Securities. If the Company receives conflicting instructions, notices
or elections from two (2) or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis
of instructions, notice or election received from the registered owner of such Registrable Securities.

 

    	- 6 -

    	 

    

 

(b)
Piggy-Back Registrations. If at any time there is not an effective Registration Statement covering all of the Registrable
Securities and the Company shall determine to prepare and file with the SEC a registration statement relating to an offering for
its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form
S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity securities issuable in connection with the stock option
or other employee benefit plans, then the Company shall send to each Investor a written notice of such determination and, if within
fifteen (15) days after the date of such notice, any such Investor shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such Investor requests to be registered; provided,
however, that, the Company shall not be required to register any Registrable Securities pursuant to this Section 10(c)
that are eligible for resale pursuant to Rule 144 promulgated under the Securities Act or that are the subject of a then effective
Registration Statement.

 

(c)
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered pursuant to the notice provisions of the Securities Purchase Agreement.

 

(d)
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof.

 

(e)
The laws of the State of New York shall govern all issues concerning the relative rights of the Company and the Investors as its
stockholders. All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of New York. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the Supreme Court
of the State of New York, sitting in New York County, New York and federal courts for the Southern District of New York sitting
New York, New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction
or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(f)
This Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

 

(g)
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(h)
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto as an attachment
to an email or by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

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

 

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

 

(k)
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	- 7 -

    	 

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused their signature page to this Registration Rights Agreement to be
duly executed as of the date first above written.

 

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

 

	 	INVESTOR:
	 	YA
    II PN, Ltd.
	 	 	

	 	By:	Yorkville
    Advisors Global, LP
	 	Its:	Investment
    Manager

 

	 	By:

        
	Yorkville
        Advisors Global II, LLC

        

	 	Its:	General
        Partner

 

	 	By:	/s/
    Matt Beckman
	 	Name:	Matt
    Beckman
	 	Title:	Member

 

    	- 8 -

    	 

    

 

Execution Copy

 

EXHIBIT
A

 

SELLING
STOCKHOLDERS 

 

AND
PLAN OF DISTRIBUTION

 

    	- 9 -

    	 

    

 

EXHIBIT
B

 

FORM
OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

Attention:

 

	 	Re:	TARONIS
    TECHNOLOGIES, INC.

 

Ladies
and Gentlemen:

 

We
are counsel to TARONIS TECHNOLOGIES, INC., a Delaware corporation (the “Company”), and have represented the
Company in connection with that certain Securities Purchase Agreement (the “Securities Purchase Agreement”)
entered into by and among the Company and the Investors named therein (collectively, the “Investors”) pursuant
to which the Company issued to the Investors $1,500,000 of convertible debentures (the “Convertible Debentures”),
which are convertible into its Common Stock, par value $0.001 per share (the “Common Stock”). Pursuant to the
Purchase Agreement, the Company also has entered into a Registration Rights Agreement with the Investors (the “Registration
Rights Agreement”) pursuant to which the Company agreed, among other things, to register the Registrable Securities
(as defined in the Registration Rights Agreement) under the Securities Act of 1933, as amended (the “Securities Act”).
In connection with the Company’s obligations under the Registration Rights Agreement, on ____________ ____, the Company
filed a Registration Statement on Form ________ (File No. 333-_____________) (the “Registration Statement”)
with the Securities and Exchange Commission (the “SEC”) relating to the Registrable Securities which names
each of the Investors as a selling stockholder there under.

 

In
connection with the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has
entered an order declaring the Registration Statement effective under the Securities Act at [ENTER TIME OF EFFECTIVENESS]
on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a member of the SEC’s staff,
that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before,
or threatened by, the SEC and the Registrable Securities are available for resale under the Securities Act pursuant to the Registration
Statement.

 

	 	Very truly yours,
	 	 	 
	 	[Law
    Firm]
	 	 
	 	By:	 
	 	 	 
	cc: 	[LIST NAMES
OF Investors]	 	 

 

    	- 10 -

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