Document:

EX-10.1

 Exhibit 10.1 

TENET HEALTHCARE 
 2019
STOCK INCENTIVE PLAN 
 Tenet Healthcare Corporation (the “Company”), a Nevada corporation, hereby establishes and adopts the
following Tenet Healthcare 2019 Stock Incentive Plan (as amended from time to time, the “Plan”). 
  

	1.	 PURPOSE OF THE PLAN 

The purpose of the Plan is to assist the Company and its Subsidiaries in attracting and retaining selected individuals to serve as employees
and directors of the Company and its Subsidiaries who are expected to contribute to the Company’s success and to achieve financial and strategic objectives which will inure to the benefit of all stockholders of the Company through the
additional incentives inherent in the Awards hereunder. To the extent the Plan is approved by the Company’s stockholders at its 2019 annual meeting of stockholders, no new awards may be granted under the 2008 Plan (as defined below) after such
approval; however, any awards under the 2008 Plan that are outstanding as of the date of such approval shall remain subject to the terms and conditions of, and be governed by, the 2008 Plan. 

 

	2.	 DEFINITIONS 

  

	 	2.1	 “2008 Plan” means the Sixth Amended and Restated Tenet Healthcare 2008 Stock Incentive Plan,
as the same may be amended. 

  

	 	2.2	 “Affiliate” means a corporation or other entity controlled by, controlling or under common
control with, the Company, or an entity that is otherwise closely connected to the Company, as determined by the Committee. 

  

	 	2.3	 “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock Award, Other
Share-Based Award, Performance Award or any other right, interest or option relating to Shares or cash granted pursuant to the provisions of the Plan. 

  

	 	2.4	 “Award Agreement” shall mean any agreement, contract or other instrument or document
evidencing any Award hereunder, including through an electronic medium. 

  

	 	2.5	 “Board” shall mean the board of directors of the Company. 

 

	 	2.6	 “Cause” shall have the following meaning: 

 

	 	(a)	 When used in connection with a Qualifying Termination occurring during a Participant’s Protection Period,
the same meaning as set forth in Section 2.1(f)(2) of the ESP, with the term “Participant” replacing the term “Covered Executive” as used therein. 

 

	 	(b)	 When used in connection with a Qualifying Termination not occurring during a Participant’s Protection
Period: 

  

	 	(i)	 For any Participant who is a “Covered Executive” under the ESP, the same meaning as set forth in
Section 2.1(f)(1) of the ESP, with the term “Participant” replacing the term “Covered Executive” as used therein. 

	 	(ii)	 For any Participant who is not a “Covered Executive” under the ESP, “Cause” shall mean a
Participant’s: 

  

	 	(A)	 dishonesty; 

  

	 	(B)	 fraud; 

  

	 	(C)	 willful misconduct; 

 

	 	(D)	 breach of fiduciary duty; 

 

	 	(E)	 conflict of interest; 

 

	 	(F)	 commission of a felony; 

 

	 	(G)	 material failure or refusal to perform his or her job duties in accordance with Company policies;

  

	 	(H)	 a material violation of Company policy that causes harm to the Company or an Affiliate; 

 

	 	(I)	 other wrongful conduct of a similar nature and degree; or 

 

	 	(J)	 sustained unsatisfactory performance which is not improved after the Participant has been provided with a
reasonable opportunity to improve his or her performance in accordance with the Company’s standard policies and procedures. 

  

	 	2.7	 “Change in Control” shall means the occurrence of one of the following: 

 

	 	(a)	 A “change in the ownership of the Company” which will occur on the date that any one person, or more
than one person acting as a group within the meaning of Section 409A of the Code, acquires, directly or indirectly, whether in a single transaction or series of related transactions, ownership of stock in the Company that, together with stock
held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company (“Ownership Control”). However, if any one person or more than one person
acting as a group, has previously acquired ownership of more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by the same person or persons will not be
considered a “change in the ownership of the 

  
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Company” (or to cause a “change in the effective control of the Company” within the meaning of Section 2.7(b) below). Further, an increase in the effective percentage of stock
owned by any one person, or persons acting as a group, as a result of a transaction in which the Company acquires its stock in exchange for cash or property will be treated as an acquisition of stock for purposes of this paragraph; provided, that
for purposes of this Section 2.7(a), the following acquisitions of Company stock will not constitute a Change of Control: 

  

	 	(i)	 any acquisition, whether in a single transaction or series of related transactions, by any employee benefit
plan (or related trust) sponsored or maintained by the Company or an Affiliate which results in such employee benefit plan obtaining “Ownership Control” of the Company; 

 

	 	(ii)	 any acquisition, whether in a single transaction or series of related transactions, by the Company which
results in the Company acquiring stock of the Company representing “Ownership Control”; or 

  

	 	(iii)	 any acquisition, whether in a single transaction or series of related transactions, after which those persons
who were owners of the Company’s stock immediately before such transaction(s) own more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company (or if after the consummation of such
transaction(s) the Company (or another entity into which the Company is merged into or otherwise combined, such the Company does not survive such transaction(s)) is a direct or indirect subsidiary of another entity which itself is not a subsidiary
of an entity, then the more than fifty percent (50%) ownership test shall be applied to the voting securities of such other entity) in substantially the same percentages as their respective ownership of the Company immediately before such
transaction(s). 

 This Section 2.7(a) applies either when there is a transfer of the stock of the Company (or
issuance of stock) and stock in the Company remains outstanding after the transaction or when there is a transfer of the stock of the Company (including a merger or similar transaction) and stock in the Company does not remain outstanding after the
transaction. 
  

	 	(b)	 A “change in the effective control of the Company” which will occur on the date that either
(i) or (ii) occurs: 

  

	 	(i)	 any one person, or more than one person acting as a group within the meaning of Section 409A of the Code,
acquires (taking into consideration any prior acquisitions during the twelve (12) month 

  
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period ending on the date of the most recent acquisition by such person or persons), directly or indirectly, ownership of stock of the Company possessing thirty-five percent (35%) or more of the
total voting power of the stock of the Company (not considering stock owned by such person or group before such twelve (12) month period) (i.e., such person or group must acquire within a twelve (12) month period stock possessing at least
thirty-five percent (35%) of the total voting power of the stock of the Company) (“Effective Control”), except for (A) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or an
Affiliate which results in such employee benefit plan obtaining “Effective Control” of the Company or (B) any acquisition by the Company. The occurrence of “Effective Control” under this Section 2.7(b)(i) may be
nullified by a vote of that number of the members of the Board, that exceeds two-thirds (2/3) of the independent members of the Board, which vote must occur before the time, if any, that a “change in the
effective control of the Company” has occurred under Section 2.7(b)(ii) below. In the event of such a supermajority vote, such transaction or series of related transactions shall not be treated as an event constituting “Effective
Control.” For avoidance of doubt, the Plan provides that in the event of the occurrence of the acquisition of ownership of stock of the Company that reaches or exceeds the thirty-five percent (35%) ownership threshold described above, if more
than two-thirds (2/3) of the independent members of the Board take action to resolve that such an acquisition is not a “change in the effective control of the Company” and a majority of the members
of the Board have not been replaced as provided under Section 2.7(b)(ii) below, then such Board action shall be final and no “Effective Control” shall be deemed to have occurred for any purpose under the Plan. 

 

	 	(ii)	 a majority of the members of the Board are replaced during any twelve (12) month period by directors whose
appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election. 

For purposes of a “change in the effective control of the Company,” if any one person, or more than one person acting as a group,
is considered to effectively control the Company within the meaning of this Section 2.7(b), the acquisition of additional control of the Company by the same person or persons is not considered a “change in the effective control of the
Company,” or to cause a “change in the ownership of the Company” within the meaning of Section 2.7(a) above. 
  

	 	(c)	 A sale, exchange, lease, disposition or other transfer of all or substantially all of the assets of the
Company. 

  
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	 	(d)	 A liquidation or dissolution of the Company that is approved by a majority of the Company’s stockholders.

  

	 	2.8	 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any
successor statute and the regulations promulgated thereunder, as it or they may be amended from time to time. 

  

	 	2.9	 “Committee” shall mean the Human Resources Committee of the Board or a subcommittee thereof
formed by the Human Resources Committee to act as the Committee hereunder. The Committee shall consist of no fewer than two Directors, each of whom is (i) a “Non- Employee Director” within the
meaning of Rule 16b-3 of the Exchange Act and (ii) an “independent director” for purpose of the rules and regulations of the New York Stock Exchange (or such other principal securities exchange
on which the Shares are traded). 

  

	 	2.10	 “Director” shall mean a non-employee member of the
Board. 

  

	 	2.11	 “Effective Date” has the meaning specified in Section 13.14. 

 

	 	2.12	 “Employee” shall mean any employee of the Company or any Subsidiary and any prospective
employee conditioned upon, and effective not earlier than, such person becoming an employee of the Company or any Subsidiary. 

  

	 	2.13	 “ESP” shall mean the Tenet Executive Severance Plan, as amended or restated from time to time.

  

	 	2.14	 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

  

	 	2.15	 “Executive Officer” shall mean an officer of the Company within the meaning of the rules under
Section 16 of the Exchange Act. 

  

	 	2.16	 “Fair Market Value” shall mean, unless otherwise determined by the Committee from time to
time, the per Share closing price of the Shares as reported on the New York Stock Exchange as of the relevant date (or if there were no reported prices on such date, on the last preceding date on which the prices were reported) or, if the Company is
not then listed on the New York Stock Exchange, on such other principal securities exchange on which the Shares are traded, and if the Company is not listed on the New York Stock Exchange or any other securities exchange, the Fair Market Value of
Shares shall be determined by the Committee in its sole discretion. 

  

	 	2.17	 “Good Reason” shall have the following meaning: 

 

	 	(a)	 When used in connection with a Qualifying Termination occurring during a Participant’s Protection Period,
the same meaning as set forth in Section 2.1(x)(2) of the ESP. 

  
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	 	(b)	 When used in connection with a Qualifying Termination not occurring during a Participant’s Protection
Period, for any Participant who is a “Covered Executive” under the ESP, the same meaning as set forth in Section 2.1(x)(1) of the ESP. For the avoidance of doubt, a Participant who is not a “Covered Executive” under the ESP
shall not be eligible to claim “Good Reason” hereunder with regard to any termination of employment occurring outside a Participant’s Protection Period. 

 

	 	(c)	 For purposes of this Section 2.17, references to “Employer” in the ESP with respect to any
Participant means the Company or an Affiliate employing such Participant and references to “Covered Executive” in the ESP mean the Participant. 

  

	 	2.18	 “Option” shall mean any right granted to a Participant under the Plan allowing such
Participant to purchase Shares at such price or prices and during such period or periods as the Committee shall determine. 

  

	 	2.19	 “Other Share-Based Award” shall have the meaning set forth in Section 8.1.

  

	 	2.20	 “Participant” shall mean an Employee or Director who is selected by the Committee to receive
an Award under the Plan. 

  

	 	2.21	 “Payee” shall have the meaning set forth in Section 13.3. 

 

	 	2.22	 “Performance Award” shall mean any Award of Performance Cash or Performance Share Units
granted pursuant to Article 9. 

  

	 	2.23	 “Performance Cash” shall mean any cash incentives granted pursuant to Article 9 which will be
paid to the Participant upon the achievement of such Performance Criteria as the Committee shall establish. 

  

	 	2.24	 “Performance Criteria” shall have the meaning set forth in Section 10.1.

  

	 	2.25	 “Performance Period” shall mean the period established by the Committee during which any
Performance Criteria specified by the Committee with respect to an Award are to be measured. 

  

	 	2.26	 “Performance Share Unit” shall mean any grant pursuant to Article 9 of a unit valued by
reference to a designated number of Shares, which value will be paid to the Participant upon achievement of such Performance Criteria as the Committee shall establish. 

 

	 	2.27	 “Permitted Assignee” shall have the meaning set forth in Section 12.3.

  

	 	2.28	 “Plan Administrator” shall mean the individual or committee appointed by the Committee to
handle the day-to-day administration of the Plan. If the Committee does not appoint an individual or committee to serve as the Plan Administrator, the Committee will be
the Plan Administrator. 

  
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	 	2.29	 “Protection Period” shall mean: 

 

	 	(a)	 with respect to a Participant who is not a “Covered Executive” under the ESP, the period beginning on
the date of a Change in Control and ending twenty-four (24) months following the occurrence of the Change in Control; and 

  

	 	(b)	 with respect to a Participant who is a “Covered Executive” under the ESP, the same period as set
forth in the ESP, and as it may be amended from time to time. 

  

	 	2.30	 “Qualifying Termination” means a Participant’s “separation from service”
(within the meaning of Section 409A of the Code) by reason of: 

  

	 	(a)	 the involuntary termination of a Participant’s employment by the Company (or Subsidiary) without Cause, or

  

	 	(b)	 the Participant’s resignation from the employment of the Company (or Subsidiary) for Good Reason;

 provided, however, that a Qualifying Termination will not occur by reason of the divestiture of a Subsidiary or an
Affiliate with respect to a Participant employed by such Subsidiary or Affiliate who is offered a comparable position with the purchaser and either declines or accepts such position (regardless of whether the Participant accepts such position). 

 

	 	2.31	 “Restricted Stock” shall mean any Share issued with the restriction that the holder may not
sell, transfer, pledge or assign such Share and with such other restrictions as the Committee, in its sole discretion, may impose (including any restriction on the right to vote such Share and the right to receive any dividends), which restrictions
may lapse separately or in combination at such time or times, in installments or otherwise, as the Committee may deem appropriate. 

  

	 	2.32	 “Restricted Stock Award” shall have the meaning set forth in Section 7.1.

  

	 	2.33	 “Restricted Stock Unit” means an Award that is valued by reference to a Share, which value may
be paid to the Participant by delivery, as the Committee shall determine, of cash, Shares, or any combination thereof, and that has such restrictions as the Committee, in its sole discretion, may impose, including without limitation, any restriction
on the right to retain such Awards, to sell, transfer, pledge or assign such Awards, which restrictions may lapse separately or in combination at such time or times, in installments or otherwise, as the Committee may deem appropriate.

  

	 	2.34	 “Restricted Stock Unit Award” shall have the meaning set forth in Section 7.1.

  

	 	2.35	 “Shares” shall mean the shares of common stock of the Company, par value $0.05 per share. If
there has been an adjustment pursuant to Section 12.2, the term “Shares” shall also include any shares of stock or other securities that are substituted for the common stock of the Company or into which the common stock is adjusted
pursuant to Section 12.2. 

  
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	 	2.36	 “Stock Appreciation Right” shall mean the right granted to a Participant pursuant to Article
6. 

  

	 	2.37	 “Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if, at the relevant time each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of
the other corporations in the chain. 

  

	 	2.38	 “Substitute Awards” shall mean Awards granted or Shares issued by the Company in assumption
of, or in substitution or exchange for, awards previously granted, or the right or obligation to make future awards, in each case by a company acquired by the Company or any Affiliate or with which the Company or any Affiliate combines.

  

	 	2.39	 “Vesting Period” shall have the meaning set forth in Section 7.1. 

 

	3.	 SHARES SUBJECT TO THE PLAN 

 

	 	3.1	 Number of Shares. 

 

	 	(a)	 Subject to any adjustments provided for in Section 12.2 and the permitted addbacks provided for in
Section 3.1(b), the aggregate number of Shares authorized for issuance under the Plan shall be equal to the sum of (i) 4,000,000 Shares, plus (ii) the number of Shares remaining available under the 2008 Plan as of the Effective Date, plus
(iii) any Shares subject to outstanding awards under the 2008 Plan that on or after the Effective Date are forfeited, are cancelled, expire, or are settled in cash. Any Shares that are subject to Awards of Options or Stock Appreciation Rights
shall be counted against this limit as one (1) Share for every one (1) Share issued and any Shares that are subject to Awards other than Options or Stock Appreciation Rights shall be counted against this limit as 1.65 Shares for every one
(1) Share issued. Similarly, any Shares that again become available for Awards under the Plan pursuant to Section 3.1(a)(iii) or Section 3.1(b) shall be added to this limit as (i) one (1) Share for every one (1) Share
subject to Options or Stock Appreciation Rights granted under the Plan or options or stock appreciation rights granted under any Prior Plan, and (ii) as 1.65 Shares for every one (1) Share subject to Awards other than Options or Stock
Appreciation Rights granted under the Plan or awards other than options or stock appreciation rights granted under the 2008 Plan. 

  

	 	(b)	 If (i) any Shares subject to an Award are forfeited, cancelled or expire or (ii) an Award is settled
for cash (in whole or in part), the Shares subject to 

  
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such Award shall, to the extent of such forfeiture, cancellation, expiration or cash settlement, remain available for issuance under the Plan. In the event that withholding tax liabilities
arising from an Award other than an Option or Stock Appreciation Right or, after the Effective Date, an award other than an option or stock appreciation right under the 2008 Plan are satisfied by the tendering of Shares (either
actually or by attestation) or by the withholding of Shares by the Company, the Shares so tendered or withheld shall be added to the Shares available for Awards under the Plan; provided, however, that Shares that again become available for issuance
under the Plan pursuant to the preceding clause shall not increase the numbers of shares that may be granted under the Plan in connection with “incentive stock options” under Section 5.7. 

 

	 	(c)	 Notwithstanding anything to the contrary contained herein, the following Shares shall be counted against the
limit set forth in Section 3.1(a) and shall not be available for issuance under paragraph (a) of this Section: (A) Shares tendered by the Participant or withheld by the Company in payment of the purchase price of an Option,
(B) Shares tendered by the Participant or withheld by the Company to satisfy any tax withholding obligation with respect to an Option or Stock Appreciation Right, (C) Shares subject to a Stock Appreciation Right that are not issued in
connection with the stock settlement of the Stock Appreciation Right on exercise thereof, and (D) Shares reacquired by the Company on the open market or otherwise using cash proceeds from the exercise of Options. 

 

	 	(d)	 Substitute Awards shall not reduce the Shares authorized for issuance under the Plan. Additionally, in the
event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines has shares available under a pre-existing plan approved by stockholders and not adopted in
contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other
adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan
and shall not reduce the Shares authorized for issuance under the Plan; provided that Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the
pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not Employees or Directors prior to such acquisition or combination. 

 

	 	(e)	 No Award may be granted if the number of Shares to be delivered in connection with such Award exceeds the
number of Shares remaining available for issuance under this Plan minus the number of Shares issuable in settlement of or related to then-outstanding Awards. The Committee 

  
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may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting and make adjustments if the number of Shares actually issued differs from the number of Shares
previously counted in connection with an Award. 

  

	 	3.2	 Character of Shares. Any Shares issued hereunder may consist, in whole or in part, of authorized and
unissued shares, treasury shares or shares purchased in the open market or otherwise. 

  

	4.	 ELIGIBILITY AND ADMINISTRATION 

 

	 	4.1	 Eligibility. Any Employee or Director shall be eligible to be selected by the Committee as a
Participant. 

  

	 	4.2	 Administration. 

 

	 	(a)	 The Plan shall be administered by the Committee. The Committee shall have full power and authority, subject to
the provisions of the Plan and subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be adopted by the Board, to: (i) select the Employees and Directors to whom Awards may from time to
time be granted hereunder; (ii) determine the type or types of Awards, not inconsistent with the provisions of the Plan, to be granted to each Participant hereunder; (iii) determine the number of Shares to be covered by each Award granted
hereunder; (iv) determine the terms and conditions, not inconsistent with the provisions of the Plan, of any Award granted hereunder; (v) determine whether, to what extent and under what circumstances, Awards may be settled in cash, Shares
or other property; (vi) determine whether, to what extent, and under what circumstances cash, Shares, other property and other amounts payable with respect to an Award made under the Plan shall be deferred either automatically or at the
election of the Participant; (vii) determine whether, to what extent and under what circumstances any Award shall be accelerated, canceled or suspended; (viii) interpret and administer the Plan and any instrument or agreement entered into
under or in connection with the Plan, including any Award Agreement; (ix) correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent that the Committee shall deem desirable to
carry it into effect; (x) establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; (xi) determine whether any Award will have the right to dividends; provided,
that any such dividend with respect to any Award that has not yet vested shall be subject to the same vesting restrictions as the underlying Award; and (xii) make any other determination and take any other action that the Committee deems
necessary or desirable for administration of the Plan. Notwithstanding the foregoing, the determination of the Directors to whom Awards may be granted, the time(s) at which Awards may be granted to Directors and the number of Shares subject to
Awards to Directors (within the limitations set forth in Section 10.3 below) shall be made by the Board. 

  
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	 	(b)	 Decisions of the Committee shall be final, conclusive and binding on all persons or entities, including the
Company, any Participant, and any Subsidiary. 

  

	 	(c)	 To the extent not inconsistent with applicable law, the rules and regulations of the New York Stock Exchange
(or such other principal securities exchange on which the Shares are traded), the Committee may delegate to one or more Executive Officers or a committee of Executive Officers the right to grant Awards to Employees who are not Directors or Executive
Officers of the Company, the authority to take action on behalf of the Committee pursuant to the Plan to cancel or suspend Awards to Employees who are not Directors or Executive Officers of the Company and the authority to take any of the other
actions described in Section 4.2(a). 

  

	 	(d)	 The Committee may appoint the Plan Administrator, who will have the responsibility and duty to administer the
Plan on a daily basis. The Committee may remove the Plan Administrator with or without cause at any time. The Plan Administrator will have all the day-to-day
responsibilities of administering the Plan but for those duties retained by the Committee as set forth above in Section 4.2(c) and not otherwise delegated to such Plan Administrator. 

 

	 	4.3	 Treatment of Dividends and Dividend Equivalents on Unvested Awards. Notwithstanding any other provision
of the Plan to the contrary, with respect to any Award that provides for or includes a right to dividends or dividend equivalents, if dividends are declared during the period that an equity Award is outstanding, such dividends (or dividend
equivalents) shall either (i) not be paid or credited with respect to such Award or (ii) be accumulated but remain subject to vesting requirement(s) to the same extent as the applicable Award and shall only be paid at the time or times
such vesting requirement(s) are satisfied. 

  

	5.	 OPTIONS 

  

	 	5.1	 Grant of Options. Options may be granted hereunder to Participants either alone or in addition to other
Awards granted under the Plan. Any Option shall be subject to the terms and conditions of this Article and to such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall deem desirable.

  

	 	5.2	 Award Agreements. All Options granted pursuant to this Article shall be evidenced by a written Award
Agreement in such form and containing such terms and conditions as the Committee shall determine which are not inconsistent with 

  
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the provisions of the Plan. The terms of Options need not be the same with respect to each Participant. Granting an Option pursuant to the Plan shall impose no obligation on the recipient to
exercise such Option. Any individual who is granted an Option pursuant to this Article may hold more than one Option granted pursuant to the Plan at the same time. 

 

	 	5.3	 Option Price. Other than in connection with Substitute Awards, the option price per each Share
purchasable under any Option granted pursuant to this Article shall not be less than 100% of the Fair Market Value of one Share on the date of grant of such Option. Other than pursuant to Section 12.2, the Committee shall not without the
approval of the Company’s stockholders (a) lower the option price per Share of an Option after it is granted, (b) cancel an Option that is out-of-the
money in exchange for cash or another Award, (c) cancel an Option in exchange for another Option with a lower option price, or (d) take any other action with respect to an Option that would be treated as a repricing under the rules and
regulations of the principal securities exchange on which the Shares are traded. 

  

	 	5.4	 Option Term. The term of each Option shall be fixed by the Committee in its sole discretion; provided
that no Option shall be exercisable after the expiration of ten (10) years from the date the Option is granted, except in the event of death or disability (as defined under Company policies). 

 

	 	5.5	 Exercise of Options. 

 

	 	(a)	 Vested Options granted under the Plan shall be exercised by the Participant or by a Permitted Assignee thereof
(or by the Participant’s executors, administrators, guardian or legal representative, as may be provided in an Award Agreement or in this Plan) as to all or part of the Shares covered thereby, by giving notice of exercise to the Company or its
designated agent, specifying the number of Shares to be purchased. The notice of exercise shall be in such form, made in such manner, and in compliance with such other requirements consistent with the provisions of the Plan as the Committee may
prescribe from time to time. 

  

	 	(b)	 Unless otherwise provided in an Award Agreement, if an Employee voluntarily resigns his employment with the
Company or a Subsidiary, then any vested and exercisable Options will remain exercisable for ninety (90) days thereafter unless by their terms they expire sooner. During said period, such Options may be exercised in accordance with their terms.

  

	 	(c)	 Unless otherwise provided in an Award Agreement, full payment of such purchase price shall be made at the time
of exercise and shall be made (i) in cash or cash equivalents (including certified check or bank check or wire transfer of immediately available funds), (ii) by tendering previously acquired Shares (either actually or by attestation, valued at
their then Fair Market Value), (iii) with the consent of the Committee, by delivery of other consideration (including, where permitted by law and the 

  
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Committee, other Awards) having a Fair Market Value on the exercise date equal to the total purchase price, (iv) with the consent of the Committee, by withholding Shares otherwise issuable
in connection with the exercise of the Option, (v) through any other method specified in an Award Agreement (including same-day sales through a broker except by Executive Officers), or (vi) any
combination of any of the foregoing. The notice of exercise, accompanied by such payment, shall be delivered to the Company at its principal business office or such other office as the Committee may from time to time direct, and shall be in such
form, containing such further provisions consistent with the provisions of the Plan, as the Committee may from time to time prescribe. In no event may any Option granted hereunder be exercised for a fraction of a Share. No adjustment shall be made
for cash dividends or other rights for which the record date is prior to the date of actual issuance of the underlying Shares. 

  

	 	5.6	 Form of Settlement. In its sole discretion, the Committee may provide that the Shares to be issued upon
an Option’s exercise shall be in the form of Restricted Stock or other similar securities. 

  

	 	5.7	 Incentive Stock Options. The Committee may grant Options intended to qualify as “incentive stock
options” as defined in Section 422 of the Code, to any employee of the Company or any Subsidiary, subject to the requirements of Section 422 of the Code. Solely for purposes of determining whether Shares are available for the grant of
“incentive stock options” under the Plan, the maximum aggregate number of Shares that may be issued pursuant to “incentive stock options” granted under the Plan shall be 4,000,000, subject to adjustments provided for in
Section 12.2. Incentive stock options shall not be granted more than ten (10) years after the earlier of the adoption of this Plan or the approval of this Plan by the Company’s stockholders. In addition, the Fair Market Value of
Shares subject to an incentive stock option and the aggregate Fair Market Value of Shares of any parent corporation or subsidiary corporation (within the meaning of Sections 424(e) and (f) of the Code) subject to any other incentive stock
option (within the meaning of Section 422 of the Code) of the Company or a parent corporation or a subsidiary corporation (within the meaning of Sections 424(e) and (f) of the Code) that first becomes purchasable by a Participant in any
calendar year may not (with respect to that Participant) exceed $100,000, or such other amount as may be prescribed under Section 422 of the Code. As used in the previous sentence, Fair Market Value shall be determined as of the date the
incentive stock options are granted. Failure to comply with this provision shall not impair the enforceability or exercisability of any Option, but shall cause the excess amount of shares to be reclassified in accordance with the Code.

  

	6.	 STOCK APPRECIATION RIGHTS 

 

	 	6.1	 Grant and Exercise. The Committee may grant Stock Appreciation Rights (a) in conjunction with all
or part of any Option granted under the Plan or at any subsequent time during the term of such Option, (b) in conjunction with all or part of any Award (other than an Option) granted under the Plan or at any subsequent time during the term of
such Award, or (c) without regard to any Option or other Award in each case upon such terms and conditions as the Committee may establish in its sole discretion. 

  
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	 	6.2	 Terms and Conditions. Stock Appreciation Rights shall be subject to such terms and conditions, not
inconsistent with the provisions of the Plan, as shall be determined from time to time by the Committee, including the following: 

  

	 	(a)	 Upon the exercise of a Stock Appreciation Right, the holder shall have the right to receive the excess of
(i) the Fair Market Value of one Share on the date of exercise (or such amount less than such Fair Market Value as the Committee shall so determine at any time during a specified period before the date of exercise) over (ii) the grant
price of the Stock Appreciation Right on the date of grant, which, except in the case of Substitute Awards or in connection with an adjustment provided for in Section 12.2, shall not be less than the Fair Market Value of one Share on such date
of grant of the Stock Appreciation Right. 

  

	 	(b)	 The Committee shall determine in its sole discretion whether payment of a Stock Appreciation Right shall be
made in cash, in whole Shares, or any combination thereof. No adjustment shall be made for cash dividends or other rights for which the record date is prior to the date of actual issuance of the underlying Shares. 

 

	 	(c)	 The provisions of Stock Appreciation Rights need not be the same with respect to each recipient.

  

	 	(d)	 The Committee may impose such other conditions or restrictions on the terms of exercise and the grant price of
any Stock Appreciation Right, as it shall deem appropriate. A Stock Appreciation Right shall have (i) a grant price not less than Fair Market Value on the date of grant (subject to the requirements of Section 409A of the Code with respect
to a Stock Appreciation Right granted in conjunction with, but subsequent to, an Option), and (ii) a term not greater than ten (10) years except in the event of death or disability (as defined under Company policies).

  

	 	(e)	 Without the approval of the Company’s stockholders, other than pursuant to Section 12.2, the
Committee shall not (i) reduce the grant price of any Stock Appreciation Right after the date of grant, (ii) cancel any Stock Appreciation Right that is out-of-the-money in exchange for cash or another Award, (iii) cancel any Stock Appreciation Right in exchange for another Stock Appreciation Right with a lower grant price, or (iv) take any
other action with respect to a Stock Appreciation Right that would be treated as a repricing under the rules and regulations of the principal securities market on which the Shares are traded. 

  
 14 

	 	(f)	 The Committee may impose such other terms and conditions on Stock Appreciation Rights granted in conjunction
with any Award as the Committee shall determine in its sole discretion. 

  

	7.	 RESTRICTED STOCK AND RESTRICTED STOCK UNITS 

 

	 	7.1	 Grants. Awards of Restricted Stock and of Restricted Stock Units may be issued hereunder to Participants
either alone or in addition to other Awards granted under the Plan (a “Restricted Stock Award” or “Restricted Stock Unit Award” respectively), and such Restricted Stock Awards and Restricted Stock Unit Awards shall also be
available as a form of payment of Performance Awards and other earned cash-based incentive compensation. A Restricted Stock Award or Restricted Stock Unit Award shall be subject to vesting restrictions imposed by the Committee covering a period of
time specified by the Committee (the “Vesting Period”). The Committee has absolute discretion to determine whether any consideration (other than services) is to be received by the Company or any Subsidiary as a condition precedent to the
issuance of Restricted Stock or Restricted Stock Units. 

  

	 	7.2	 Award Agreements. The terms of any Restricted Stock Award or Restricted Stock Unit Award granted under
the Plan shall be set forth in a written Award Agreement which shall contain provisions determined by the Committee and not inconsistent with the Plan. The terms of Restricted Stock Awards and Restricted Stock Unit Awards need not be the same with
respect to each Participant. 

  

	 	7.3	 Rights of Holders of Restricted Stock and Restricted Stock Units. Unless otherwise provided in the Award
Agreement, beginning on the date of grant of the Restricted Stock Award and subject to acceptance of the Award Agreement, the Participant shall become a stockholder of the Company with respect to all Shares subject to the Award Agreement and shall
have all of the rights of a stockholder, including the right to vote such Shares and the right to receive distributions made with respect to such Shares. A Participant receiving a Restricted Stock Unit Award shall not possess voting rights with
respect to such Award. Any Shares or any other property distributed as a dividend with respect to any Restricted Stock Award or Restricted Stock Unit Award as to which the restrictions have not yet lapsed shall be subject to the same restrictions as
such Restricted Stock Award or Restricted Stock Unit Award. 

  

	 	7.4	 Issuance of Shares. Any Restricted Stock granted under the Plan may be evidenced in such manner as the
Committee may deem appropriate, including book-entry registration or issuance of a stock certificate or certificates, which certificate or certificates shall be held by the Company. Such certificate or certificates shall be registered in the name of
the Participant and shall bear an appropriate legend referring to the restrictions applicable to such Restricted Stock. 

  
 15 

	8.	 OTHER SHARE-BASED AWARDS 

 

	 	8.1	 Grants. Other Awards of Shares and other Awards that are valued by reference to, or are otherwise based
on, Shares (“Other Share-Based Awards”) may be granted hereunder to Participants either alone or in addition to other Awards granted under the Plan. Other Share-Based Awards shall also be available as a form of payment of other Awards
granted under the Plan and other earned cash-based compensation. 

  

	 	8.2	 Award Agreements. The terms of Other Share-Based Award granted under the Plan shall be set forth in a
written Award Agreement which shall contain provisions determined by the Committee and not inconsistent with the Plan. The terms of such Awards need not be the same with respect to each Participant. 

 

	 	8.3	 Payment. Except as may be provided in an Award Agreement, Other Share-Based Awards may be paid in cash,
Shares, or any combination thereof, as determined in the sole discretion of the Committee. Other Share-Based Awards may be paid in a lump sum or in installments or, in accordance with procedures established by the Committee, on a deferred basis
subject to the requirements of Section 409A of the Code. 

  

	9.	 PERFORMANCE AWARDS 

 

	 	9.1	 Grants. Performance Awards in the form of Performance Cash or Performance Share Units, as determined by
the Committee in its sole discretion, may be granted hereunder to Participants, for no consideration or for such minimum consideration as may be required by applicable law, either alone or in addition to other Awards granted under the Plan. The
Performance Criteria to be achieved for each Performance Period shall be conclusively determined by the Committee and may be based upon the criteria set forth in Section 10.1. 

 

	 	9.2	 Award Agreements. The terms of any Performance Award granted under the Plan shall be set forth in a
written Award Agreement which shall contain provisions determined by the Committee and not inconsistent with the Plan. The terms of Performance Awards need not be the same with respect to each Participant. 

 

	 	9.3	 Terms and Conditions. The Performance Criteria to be achieved during any Performance Period and the
length of the Performance Period shall be determined by the Committee upon the grant of each Performance Award. The amount of the Award to be distributed shall be conclusively determined by the Committee. 

 

	 	9.4	 Payment. Except as provided in Article 11 or as may be provided in an Award Agreement, Performance
Awards will be settled only after the end of the relevant Performance Period. Performance Awards may be paid in cash, Shares, or any combination thereof in the sole discretion of the Committee. Performance Awards may be paid in a lump sum or in
installments following the close of the Performance Period or, in accordance with procedures established by the Committee, on a deferred basis subject to the requirements of Section 409A of the Code. 

  
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	10.	 PERFORMANCE CRITERIA 

 

	 	10.1	 Performance Criteria. The Committee may determine that the lapsing of restrictions with respect to an
Award, and the distribution of cash, Shares or other property pursuant thereto, as applicable, shall be subject to the achievement of one or more performance goals established by the Committee, which shall be based on the attainment of specified
levels of one or any combination of performance objectives and criteria, each as may be calculated or measured in the manner determined by the Committee (the “Performance Criteria”). Such Performance Criteria may include (without
limitation): 

  

	 	(a)	 Basic or diluted earnings per Share; 

 

	 	(b)	 Cash flow; 

  

	 	(c)	 Economic value added; 

 

	 	(d)	 Income, which may include, without limitation, net income, operating income, volume measures (e.g.,
admissions or visits) and expense control measures, and which and may be calculated or measured before or after income taxes, including or excluding interest, depreciation and amortization, minority interests, extraordinary items and other material non-recurring items, discontinued operations, the cumulative effect of changes in accounting policies and the effects of any tax law changes; 

 

	 	(e)	 Quality of service and/or patient care, including, without limitation, patient, physician and/or employee
satisfaction objectives; 

  

	 	(f)	 Business performance or return measures (consisting of market share, debt reduction, return on assets, capital,
equity, or sales); 

  

	 	(g)	 The price of the Company’s common or preferred stock (including, but not limited to, growth measures and
total shareholder return); or 

  

	 	(h)	 Any other criterion that the Committee may determine, in its sole discretion, is appropriate.

 Such Performance Criteria may be determined on an absolute or relative basis, may be based solely by reference to the
Company’s performance or the performance of an Affiliate, division, business segment or business unit of the Company, or based upon the relative performance of other companies or indices or upon comparisons of any of the indicators of
performance relative to other companies or indices. In the event of (i) a change in corporate capitalization, a corporate transaction or a complete or partial corporate liquidation, (ii) a natural disaster or other significant unforeseen
event that materially impacts the operation of the Company, (iii) any extraordinary, unusual or non-recurring gain or loss or other event, (iv) any material change in tax laws or accounting policies
or practices affecting the Company and/or the Performance Criteria, or (v) any other event(s) or item(s) determined by the Committee, the Committee may make adjustments to the Performance Criteria so as to neutralize the effect of the event on
the applicable Award. 

  
 17 

	 	10.2	 Settlement and Adjustments of Awards Subject to Performance Criteria. The Committee shall, at the end of
the applicable Performance Period, determine whether the applicable Performance Criteria were satisfied and the amount payable with respect to any Award. The Committee may, in its discretion, adjust the amount otherwise payable pursuant to such
Award after considering such factors as it deems relevant. 

  

	 	10.3	 Limitations on Director Awards. The aggregate dollar value of equity-based (based on the grant date Fair
Market Value of equity-based Awards) granted under this Plan during a calendar year to a Director, taken together with any cash fees paid during such calendar year to such Director, in respect of the Director’s service as a member of the Board
during such year (including service as a member or chair of any committees of the Board), shall not exceed $650,000; provided, however, that in any calendar year in which a Director serves as Chairman of the Board or Lead Director, the maximum
aggregate dollar value of equity-based and cash compensation provided to the Director may be up to $850,000. 

  

	11.	 CHANGE IN CONTROL PROVISIONS 

 

	 	11.1	 Impact on Certain Awards. Award Agreements may provide that in the event of a Change in Control of the
Company: (a) Options and Stock Appreciation Rights outstanding as of the date of the Change in Control shall be cancelled and terminated without payment therefor if the Fair Market Value of one Share as of the date of the Change in Control is
less than the per Share Option exercise price or Stock Appreciation Right grant price, and (b) all Performance Awards shall be considered to be earned and payable (either in full or pro rata based on the portion of Performance Period completed
as of the date of the Change in Control and either based on achievement of target or actual performance during such period), and any limitations or other restriction shall lapse and such Performance Awards shall be immediately settled or
distributed. 

  

	 	11.2	 Assumption or Substitution of Certain Awards. 

 

	 	(a)	 Unless otherwise provided in an Award Agreement or the ESP, with respect to a Participant who is a
“Covered Executive” under the ESP, in the event of a Change in Control of the Company in which the successor company assumes or substitutes for an Award, if a Participant incurs a Qualifying Termination with such successor company (or a
subsidiary thereof) within the Protection Period (or such other period set forth in the Award Agreement, including a period prior thereto if applicable) and under the circumstances specified in the Award Agreement, then the following shall occur:
(i) Options and Stock Appreciation Rights 

  
 18 

	 	
outstanding as of the date of such termination of employment will immediately vest (i.e., immediately vest on the termination date), become fully exercisable, and may thereafter be
exercised for twenty-four (24) months (or the period of time set forth in the Award Agreement), but in any event no later than the date of the expiration of the term of such Award, (ii) restrictions, limitations and other conditions
applicable to Restricted Stock and Restricted Stock Units shall lapse and the Restricted Stock and Restricted Stock Units shall become free of all restrictions, limitations and conditions and become fully vested on the termination date, and
(iii) the restrictions, limitations and other conditions applicable to any Other Share-Based Awards or any other Awards shall lapse, and such Other Share-Based Awards or such other Awards shall become free of all restrictions, limitations and
conditions and become fully vested and transferable, to the full extent of the original grant, on the termination date. For the purposes of this Section 11.2, an Award shall be considered assumed or substituted for if following the Change in
Control the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash or other securities or property) received in the transaction
constituting a Change in Control by holders of Shares for each Share held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the
outstanding shares); provided, however, that if such consideration received in the transaction constituting a Change in Control is not solely common stock of the successor company, the Committee may, with the consent of the successor company,
provide that the consideration to be received upon the exercise or vesting of an Award, for each Share subject thereto, will be solely common stock of the successor company substantially equal in fair market value to the per share consideration
received by holders of Shares in the transaction constituting a Change in Control. The determination of such substantial equality of value of consideration shall be made by the Committee in its sole discretion and its determination shall be
conclusive and binding. 

  

	 	(b)	 Unless otherwise provided in an Award Agreement or the ESP, with respect to a Participant who is a
“Covered Executive” under the ESP, in the event of a Change in Control of the Company to the extent the successor company does not assume or substitute for an Award: (i) those Options and Stock Appreciation Rights outstanding as of
the date of the Change in Control that are not assumed or substituted for shall immediately vest and become fully exercisable as of the date of the Change in Control, (ii) restrictions, limitations and other conditions on Restricted Stock and
Restricted Stock Units that are not assumed or substituted for shall lapse and the Restricted Stock and Restricted Stock Units shall become free of all restrictions, limitations and conditions and become fully vested as of the date of the Change in
Control, and (iii) the restrictions, limitations and other conditions applicable to any Other 

  
 19 

	 	
Share-Based Awards or any other Awards that are not assumed or substituted for shall lapse, and such Other Share-Based Awards or such other Awards shall become free of all restrictions,
limitations and conditions and become fully vested and transferable, to the full extent of the original grant, as of the date of the Change in Control. 

  

	 	(c)	 The Committee, in its discretion, may determine that, upon the occurrence of a Change in Control of the
Company, each Option and Stock Appreciation Right outstanding shall terminate within a specified number of days after notice to the Participant, and/or that each Participant shall receive, with respect to each Share subject to such Option or Stock
Appreciation Right, an amount equal to the excess of the Fair Market Value of such Share immediately prior to the occurrence of such Change in Control over the exercise price per share of such Option and/or Stock Appreciation Right; such amount to
be payable in cash, in one or more kinds of stock or property (including the stock or property, if any, payable in the transaction) or in a combination thereof, as the Committee, in its discretion, shall determine. 

 

	12.	 GENERALLY APPLICABLE PROVISIONS 

 

	 	12.1	 Amendment and Termination of the Plan. The Committee may, from time to time, alter, amend, suspend or
terminate the Plan as it shall deem advisable, subject to any requirement for stockholder approval imposed by applicable law, including the rules and regulations of the principal securities market on which the Shares are traded; provided that the
Committee may not amend the Plan in any manner that would result in noncompliance with Rule 16b-3 of the Exchange Act; and further provided that the Committee may not, without the approval of the
Company’s stockholders, amend the Plan to (a) increase the number of Shares that may be the subject of Awards under the Plan (except for adjustments pursuant to Section 12.2), (b) expand the types of awards available under the Plan,
(c) materially expand the class of persons eligible to participate in the Plan, (d) amend any provision of Section 5.3 or Section 6.2(e) (regarding changes in the exercise price of Options and Stock Appreciation Rights), (e)
increase the maximum permissible term of any Option specified by Section 5.4 or the maximum permissible term of a Stock Appreciation Right specified by Section 6.2(d), or (f) increase the limitations set forth in Section 10.3. In
addition, no amendments to, or termination of, the Plan shall impair in any material respect the rights of a Participant under any Award previously granted without such Participant’s consent except as required to comply with applicable law,
including in order to comply with or ensure exemption from Section 409A of the Code. 

  

	 	12.2	 Adjustments. In the event of any merger, reorganization, consolidation, recapitalization, dividend or
distribution (whether in cash, shares or other property, other than a regular cash dividend), stock split, reverse stock split, spin-off or similar transaction or other change in corporate structure affecting
the Shares or the value thereof, such adjustments and other substitutions shall be 

  
 20 

	 	
made to the Plan and to Awards as the Committee deems equitable or appropriate taking into consideration the accounting and tax consequences, including such adjustments in the aggregate number,
class and kind of securities that may be delivered under the Plan, the maximum number of Shares that may be issued as incentive stock options, in the number, class, kind and option or exercise price of securities subject to outstanding Awards
granted under the Plan (including, if the Committee deems appropriate, the substitution of similar options to purchase the shares of, or other awards denominated in the shares of, another company) and the terms and conditions of any outstanding
Awards (including, without limitation, any applicable performance targets or criteria with respect thereto), as the Committee may determine to be appropriate; provided, however, that the number of Shares subject to any Award shall always be a whole
number. 

  

	 	12.3	 Transferability of Awards. Except as provided below, no Award and no Shares subject to Awards that have
not been issued or as to which any applicable restriction, performance or deferral period has not lapsed, may be sold, assigned, transferred, pledged or otherwise encumbered, other than by will or the laws of descent and distribution, and such Award
may be exercised during the life of the Participant only by the Participant or the Participant’s guardian or legal representative. To the extent and under such terms and conditions as determined by the Committee, a Participant may assign or
transfer an Award (each transferee thereof, a “Permitted Assignee”) to (i) the Participant’s spouse, children or grandchildren (including any adopted and step children or grandchildren), parents, grandparents or siblings,
(ii) to a trust for the benefit of one or more of the Participant or the persons referred to in clause (i), (iii) to a partnership, limited liability company or corporation in which the Participant or the persons referred to in clause
(i) are the only partners, members or shareholders, (iv) for charitable donations or (v) pursuant to a domestic relations order entered or approved by a court of competent jurisdiction; provided that such Permitted Assignee shall be
bound by and subject to all of the terms and conditions of the Plan and the Award Agreement relating to the transferred Award and shall execute an agreement satisfactory to the Company evidencing such obligations; and provided further that such
Participant shall remain bound by the terms and conditions of the Plan. The Company shall cooperate with any Permitted Assignee and the Company’s transfer agent in effectuating any transfer permitted by the Committee under this Section. For the
avoidance of doubt, in no event will any Award be transferrable by a Participant in exchange for value. 

  

	 	12.4	 Termination of Employment. Subject to Article 11, the Committee shall determine and set forth in each
Award Agreement whether the Award subject to such Award Agreement will (i) in the case of Options or Stock Appreciation Rights, continue to be or become exercisable and, if so, the terms of exercise, and (ii) in the case of Awards other
than Options and Stock Appreciation Rights, cease to be subject to any applicable restrictions, limitations and other conditions, and if so, the timing of the removal of such restrictions, limitations and conditions, after the date that a
Participant ceases to be employed by or to provide services to the Company or any Subsidiary (including as a Director), whether by reason of death, disability, voluntary or involuntary termination of employment or services, or otherwise. The date of
termination of a Participant’s employment or services will be determined by the Committee, which determination will be final. 

  
 21 

	 	12.5	 Deferral. The Committee shall be authorized to establish procedures pursuant to which the payment of any
Award may be deferred. Such procedures may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of other amounts in respect of deferred payments
denominated in Shares. Any deferral shall only be allowed as is provided in a separate deferred compensation plan adopted by the Company. 

  

	13.	 MISCELLANEOUS 

 

	 	13.1	 Award Agreements. Each Award Agreement shall either be (a) in writing in a form approved by the
Committee and executed by the Company by an officer duly authorized to act on its behalf, or (b) an electronic notice in a form approved by the Committee and recorded by the Company (or its designee) in an electronic recordkeeping system used
for the purpose of tracking one or more types of Awards as the Committee may provide; in each case and if required by the Committee, the Award Agreement shall be executed or otherwise electronically accepted by the recipient of the Award in such
form and manner as the Committee may require. The Committee may authorize any officer of the Company to execute any or all Award Agreements on behalf of the Company. The Award Agreement shall set forth the material terms and conditions of the Award
as established by the Committee consistent with the provisions of the Plan. 

  

	 	13.2	 Other Benefit Plans. In the event that a provision of any other plan or benefit program of the Employer
is more favorable to a Participant with respect to the treatment of any Award upon termination of employment or in connection with a Change in Control than the provisions contained in this Plan or an applicable Award Agreement, the provisions of
such other plan or benefit program will control. 

  

	 	13.3	 Tax Withholding. The Company shall have the right to make all payments or distributions pursuant to the
Plan to a Participant (or a Permitted Assignee thereof) (any such person, a “Payee”) net of any applicable federal, state and local taxes required to be paid or withheld as a result of (a) the grant of any Award, (b) the exercise
of an Option or Stock Appreciation Right, (c) the delivery of Shares or cash, (d) the lapse of any restrictions in connection with any Award or (e) any other event occurring pursuant to the Plan. The Company or any Subsidiary shall
have the right to withhold from wages or other amounts otherwise payable to such Payee such withholding taxes as may be required by law, or to otherwise require the Payee to pay such withholding taxes. If the Payee shall fail to make such tax
payments as are required, the Company or its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to such Payee or to take such other action as may be

  
 22 

	 	
necessary to satisfy such withholding obligations. The Committee shall be authorized to establish procedures for election by Participants to satisfy such obligation for the payment of such taxes
by tendering previously acquired Shares (either actually or by attestation, valued at their then Fair Market Value), or by directing the Company to retain Shares (up to the Participant’s maximum tax withholding rate or such other rate that will
not trigger a negative accounting impact and is otherwise permitted under applicable withholding rules promulgated by the Internal Revenue Service or another applicable governmental entity) otherwise deliverable in connection with the Award.

  

	 	13.4	 Right of Discharge Reserved; Claims to Awards. Nothing in the Plan nor the grant of an Award hereunder
shall confer upon any Employee or Director the right to continue in the employment or service of the Company or any Subsidiary or affect any right that the Company or any Subsidiary may have to terminate the employment or service of (or to demote or
to exclude from future Awards under the Plan) any such Employee or Director at any time for any reason. Except as specifically provided by the Committee, the Company shall not be liable for the loss of existing or potential profit from an Award
granted in the event of termination of an employment or other relationship. No Employee or Participant shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Employees or Participants
under the Plan. 

  

	 	13.5	 Substitute Awards. Notwithstanding any other provision of the Plan, the terms of Substitute Awards may
vary from the terms set forth in the Plan to the extent the Committee deems appropriate to conform, in whole or in part, to the provisions of the awards in substitution for which they are granted. 

 

	 	13.6	 Cancellation of Award. Notwithstanding anything to the contrary contained herein, an Award Agreement may
provide that the Award shall be canceled if the Participant, without the consent of the Company, while employed by the Company or any Subsidiary or after termination of such employment or service, establishes a relationship with a competitor of the
Company or any Subsidiary or engages in activity that is in conflict with or adverse to the interest of the Company or any Subsidiary, as determined by the Committee in its sole discretion. The Committee may also provide in an Award Agreement that
if within the time period specified in the Agreement the Participant establishes a relationship with a competitor or engages in an activity referred to in the preceding sentence, the Participant will forfeit any gain realized on the vesting or
exercise of the Award and must repay such gain to the Company. 

  

	 	13.7	 Stop-Transfer Orders. All certificates for Shares delivered under the Plan pursuant to any Award shall
be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Shares are then
listed, and any applicable federal or state securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

  
 23 

	 	13.8	 Nature of Payments. All Awards made pursuant to the Plan are in consideration of services performed or
to be performed for the Company or any Subsidiary, division or business unit of the Company. Any income or gain realized pursuant to Awards under the Plan constitute a special incentive payment to the Participant and shall not be taken into account,
to the extent permissible under applicable law, as compensation for purposes of any of the employee benefit plans of the Company or any Subsidiary except as may be determined by the Committee or by the Board or board of directors of the applicable
Subsidiary. 

  

	 	13.9	 Other Plans. Nothing contained in the Plan shall prevent the Board from adopting other or additional
compensation arrangements, subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases. 

 

	 	13.10	 Severability. If any provision of the Plan shall be held unlawful or otherwise invalid or unenforceable
in whole or in part by a court of competent jurisdiction, such provision shall (a) be deemed limited to the extent that such court of competent jurisdiction deems it lawful, valid and/or enforceable and as so limited shall remain in full force
and effect, and (b) not affect any other provision of the Plan or part thereof, each of which shall remain in full force and effect. If the making of any payment or the provision of any other benefit required under the Plan shall be held
unlawful or otherwise invalid or unenforceable by a court of competent jurisdiction, such unlawfulness, invalidity or unenforceability shall not prevent any other payment or benefit from being made or provided under the Plan, and if the making of
any payment in full or the provision of any other benefit required under the Plan in full would be unlawful or otherwise invalid or unenforceable, then such unlawfulness, invalidity or unenforceability shall not prevent such payment or benefit from
being made or provided in part, to the extent that it would not be unlawful, invalid or unenforceable, and the maximum payment or benefit that would not be unlawful, invalid or unenforceable shall be made or provided under the Plan.

  

	 	13.11	 Construction. As used in the Plan, the words “include” and “including,” and
variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.” 

  

	 	13.12	 Unfunded Status of the Plan. The Plan is intended to constitute an “unfunded” plan for
incentive compensation. With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company. In its sole
discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver the Shares or payments in lieu of or with respect to Awards hereunder; provided, however, that the
existence of such trusts or other arrangements is consistent with the unfunded status of the Plan. This Plan shall not constitute an “employee benefit plan” for purposes of Section 3(3) of the Employee Retirement Income Security Act
of 1974, as amended. 

  
 24 

	 	13.13	 Governing Law. The Plan and all determinations made and actions taken thereunder, to the extent not
otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of Nevada, without reference to principles of conflict of laws, and construed accordingly. 

 

	 	13.14	 Effective Date of Plan; Termination of Plan. The Plan was adopted by the Board on March 18, 2019,
subject to approval of the holders of the shares entitled to vote at a duly constituted meeting of the stockholders of the Company (such stockholder approval date being referred to herein as the “Effective Date” of the Plan). This Plan
shall be null and void and of no effect if the foregoing condition is not fulfilled. Awards may be granted under the Plan at any time and from time to time on or prior to March 18, 2029, on which date the Plan will expire except as to Awards
then outstanding under the Plan. Such outstanding Awards shall remain in effect until they have been exercised or terminated, or have expired. 

  

	 	13.15	 Foreign Employees. With respect to Participants who reside or work outside the United States of America,
the Committee may, in its sole discretion, amend the terms of the Plan or Awards with respect to such Participants in order to conform such terms with the provisions of local law, and the Committee may, where appropriate, establish one or more sub-plans to reflect such amended or varied provisions. The Committee also may impose conditions on the exercise or vesting of Awards in order to minimize the Company’s obligation with respect to tax
equalization for Employees on assignments outside their home country. 

  

	 	13.16	 Compliance with Section 409A of the Code. Awards under this Plan are intended to
comply with or be exempt from Section 409A of the Code and shall be construed and interpreted in accordance with such intent. To the extent that an Award or the payment, settlement or deferral thereof is subject to Section 409A of the
Code, the Award shall be granted, paid, settled or deferred in a manner that will comply with Section 409A of the Code, except as otherwise determined by the Committee. Notwithstanding the foregoing, the Company, the Board and the Committee
shall have no liability to a Participant, or any other party, if an Award that is intended to be exempt from, or compliant with, Section 409A of the Code is not so exempt or compliant or for any action taken or that was not taken by the Board
or the Committee. 

  

	 	13.17	 Awards Subject to Clawback. The Awards granted under the Plan and any cash payment or Shares delivered
pursuant to an Award are subject to forfeiture, recovery by the Company or other action pursuant to the applicable Award Agreement or any clawback or recoupment policy which the Company may adopt from time to time, including without limitation any
such policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law. 

  
 25 

	 	13.18	 Captions. The captions in the Plan are for convenience of reference only, and are not intended to
narrow, limit or affect the substance or interpretation of the provisions contained herein. 

  
 26Execution
Copy

 

SECURITIES
PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of May 3, 2019, is between TARONIS TECHNOLOGIES,
INC., a company incorporated under the laws of the State of Delaware (the “Company”), and each of the investors
listed on the Schedule of Buyers attached hereto (individually, a “Buyer” and collectively the “Buyers”).

 

WITNESSETH

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to (i) an effective registration statement under
the Securities Act of 1933, as amended (the “Securities Act”), as to the Shares (as defined herein); and (ii)
a simultaneous private placement of Convertible Debentures and underlying Conversion Shares (as defined herein) pursuant to Section
4(a)(2) under the Securities Act, the Company desires to issue and sell to each Buyer, and each Buyer, severally and not jointly,
desires to purchase from the Company, “Securities” of the Company as more fully described in this Agreement.

 

WHEREAS,
the total dollar value of Shares that will be sold to the Buyer(s) pursuant to this Agreement shall be $500,000 sold at a 20%
discount to the closing price of the Company’s common stock on the Trading Market on the day immediately preceding the Closing
Date (“Share Subscription Amount”).

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the
Buyer(s), as provided herein, and the Buyer(s) shall purchase $1,500,000 (“Convertible Debenture Subscription Amount”)
of convertible debentures in the form attached hereto as “Exhibit B” (the “Convertible Debentures”),
which may be convertible into shares of the Company’s common stock, par value $0.001 (the “Common Stock”)
(as converted, the “Conversion Shares”) which shall be purchased upon the signing of this Agreement (the “Closing”)
for a total purchase price of $1,425,000 (the “Purchase Price”) in the respective amounts set forth opposite
each Buyer(s) name on Exhibit A;

 

WHEREAS,
contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration
Rights Agreement (the “Registration Rights Agreement”) pursuant to which the Company has agreed to provide
certain registration rights under the Securities Act and the rules and regulations promulgated there under, and applicable state
securities laws;

 

WHEREAS,
the Shares, Convertible Debentures and the Conversion Shares are collectively referred to herein as the “Securities.”

 

AGREEMENT

 

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

 

1.
DEFINITIONS. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following
terms have the meanings set forth in this Section 1:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

    	 	1	 

    	 

    

 

“Closing”
means the closing of the purchase and sale of the Securities on the Closing Date.

 

“Closing
Date” means May 3, 2019.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the shares of common stock of the Company, par value $0.001 per share.

 

“DWAC”
shall have the meaning ascribed to such term in Section 2(a).

 

“Exchange
Act” or “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

 

“Fees”
shall have the meaning ascribed to such term in Section 6(d).

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“Form
8-K” shall have the meaning ascribed to such term in Section 6(f).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” means any of the following: (i) a material adverse effect on the legality, validity or enforceability
of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial
or otherwise) of the Company or (iii) a material adverse effect on the Company’s ability to perform in any material respect
on a timely basis its obligations under any Transaction Document.

 

“OFAC”
means Office of Foreign Assets Control of the U.S. Treasury Department.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Prospectus”
means the base prospectus filed for the Registration Statement.

 

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with
the Commission and delivered by the Company to each Buyer at the Closing.

 

“Registration
Statement” means the effective registration statement with Commission File No. 333-230854 which registers the sale of
the Shares and the registration statement on Form S-3 or Form S-1, as applicable, which registers the Conversion Shares for resale.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Reports” means, collectively, all reports, schedules, forms, statements and other documents required to be filed by
the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years
preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material), including
the exhibits thereto and documents incorporated by reference therein, together with the Prospectus and the Prospectus Supplement.

 

    	 	2	 

    	 

    

 

“Securities”
means the Shares, the Convertible Debentures and the Conversion Shares.

 

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

 

“Shares”
means the shares of Common Stock issued or issuable to each Buyer pursuant to this Agreement.

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include locating and borrowing shares of Common Stock).

 

“Subscription
Amount” means, as to each Buyer, the aggregate amount to be paid for Shares or Convertible Debentures purchased hereunder
as specified below such Buyer’s name on the signature page of this Agreement in United States dollars and in immediately
available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth in the SEC Reports, and shall, where applicable, also include any direct or indirect
subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, New
York Stock Exchange, or OTC Markets (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement and any other documents or agreements executed in connection with the transactions contemplated
hereunder.

 

“Transfer
Agent” means Corporate Stock Transfer, Inc, the current transfer agent of the Company, with a mailing address of 3200
Cherry Creek South Drive, Suite 430, Denver, CO 80209, and any successor transfer agent of the Company.

 

2.
PURCHASE AND SALE OF THE SHARES.

 

(a)
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Buyer(s) agrees to purchase, up to an
aggregate of $500,000 of Shares. The number of Shares purchased by the Buyer(s) as set forth on the signature page hereto executed
by such Buyer(s) shall be made available for “Deposit/Withdrawal At Custodian” (“DWAC”) settlement
within two Trading Days of Closing. The Company shall deliver to the Buyer its Shares as determined pursuant to Section 2(b),
and the Company and the Buyer shall deliver the other items set forth in Section 2(b) at the Closing. Subject to the satisfaction
(or waiver) of the conditions set forth in Sections 8 and 9 below, the Closing shall occur at the offices of the counsel to the
Company or such other location as the parties shall mutually agree, including remotely by the electronic exchange of Transaction
Documents. On the Closing Date, the Company shall deliver to the Transfer Agent irrevocable issuance instructions to issue the
Shares registered in the Buyer(s)’ name and address and released by the Transfer Agent directly to the Buyer(s) account(s);
simultaneously the Buyer(s) shall make payment therefor by wire transfer to the Company.

 

    	 	3	 

    	 

    

 

(b)
Deliveries.

 

(i)
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to the Buyer the following:

 

(1)
this Agreement, duly executed by the Company;

 

(2)
the Company shall have provided each Buyer with the Company’s wire instructions, on Company letterhead and executed by the
Chief Executive Officer or Chief Financial Officer;

 

(3)
subject to the last sentence of Section 2(a), a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer
Agent to deliver on an expedited basis via The Depository Trust Company Deposit or DWAC Shares equal to each Buyer(s) Share Subscription
Amount divided by the Per Share Purchase Price, registered in the name of such Buyer;

 

(4)
the Prospectus and the Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act); and

 

(ii)
On or prior to the Closing Date, each Buyer shall deliver or cause to be delivered to the Company the following:

 

(iii)
this Agreement duly executed by such Buyer; and

 

(iv)
such Buyer’s Share Subscription Amount.

 

3.
PURCHASE AND SALE OF CONVERTIBLE DEBENTURES.

 

(a)
Purchase of Convertible Debentures. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 8 and
9 below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the
Company at each Closing, Convertible Debentures in amounts corresponding with the Subscription Amount set forth opposite each
Buyer’s name on Schedule of Buyers attached as Exhibit A hereto.

 

(b)
Closing Dates. The Closing of the purchase of Convertible Debentures by the Buyers shall occur on the Closing Date.

 

(c)
Form of Payment; Deliveries. Subject to the satisfaction of the terms and conditions of this Agreement, on the Closing
Date, (i) the Buyers shall deliver in cash to the Company such aggregate proceeds for the Convertible Debentures to be issued
and sold to such Buyer at such Closing, minus the fees to be paid directly from the proceeds of such Closing as set forth herein,
and (ii) the Company shall deliver to each Buyer, Convertible Debentures which such Buyer is purchasing at such Closing in amounts
indicated opposite such Buyer’s name on Exhibit A, duly executed on behalf of the Company.

 

4.
BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each
Buyer, severally and not jointly, represents and warrants to the Company with respect to only itself that, as of the date hereof
and as of the Closing Date:

 

(a)
Investment Purpose; Understandings or Arrangements. Such Buyer is acquiring the Securities as principal for its own account
and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution
of such Securities (this representation and warranty not limiting such Buyer’s right to sell the Securities pursuant to
the Registration Statement or otherwise in compliance with applicable federal and state securities laws). Such Buyer understands
that the Convertible Debentures and the Conversion Shares are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law. Such Buyer is acquiring the Securities hereunder in the ordinary
course of its business and is acquiring such Securities as principal for his, her or its own account, not as nominee or agent,
and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons
to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities
law (this representation and warranty not limiting such Buyer’s right to sell such Securities pursuant to a registration
statement or otherwise in compliance with applicable federal and state securities laws).

 

    	 	4	 

    	 

    

 

(b)
Accredited Investor Status. The Buyer is an “Accredited Investor” as that term is defined in Rule 501(a)(3)
of Regulation D.

 

(c)
General Solicitation. Such Buyer is not purchasing the Securities as a result of any advertisement, article, notice or
other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or, to the knowledge of such Buyer, any other general solicitation or general advertisement.

 

(d)
Experience of Such Buyer. Such Buyer, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Buyer is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e)
Reliance on Exemptions. The Buyer understands that the Convertible Debentures and the underlying Conversion Shares are
being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and
state securities laws and that the Company is relying in part upon the truth and accuracy of, and such Buyer’s compliance
with, the representations, warranties, agreements, acknowledgments and understandings of such Buyer set forth herein in order
to determine the availability of such exemptions and the eligibility of such Buyer to acquire the Convertible Debentures and underlying
Conversion Shares.

 

(f)
Access to Information. Each Buyer acknowledges that it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions as it
has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the
offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company
and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to
evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire
without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

(g)
Transfer or Resale. The Buyer understands that: (i) the Convertible Debentures and the Conversion Shares have not been
registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred
unless (A) subsequently registered thereunder, (B) such Buyer shall have delivered to the Company an opinion of counsel, in a
generally acceptable form, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred
pursuant to an exemption from such registration requirements, or (C) such Buyer provides the Company with reasonable assurances
(in the form of seller and broker representation letters) that such Securities can be sold, assigned or transferred pursuant to
Rule 144 promulgated under the Securities Act, as amended (or a successor rule thereto) (collectively, “Rule 144”),
in each case following the applicable holding period set forth therein; and (ii) any sale of the Securities made in reliance on
Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the
Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter
(as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the
rules and regulations of the SEC thereunder.

 

    	 	5	 

    	 

    

 

(h)
Legends. The Buyer(s) agrees to the imprinting, so long as it is required by this Section 4(f), of a restrictive legend
on the Securities in substantially the following form:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES AND THOSE SECURITIES INTO WHICH THEY
ARE CONVERTIBLE HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR
SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

 

Certificates
evidencing the Conversion Shares shall not contain any legend (including the legend set forth above), (i) following any sale of
such Conversion Shares pursuant to an effective registration statement under the Securities Act or pursuant to Rule 144, or (ii)
if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements
issued by the staff of the SEC). The Buyer agrees that the removal of restrictive legend from certificates representing Securities
as set forth in this Section 4(f) is predicated upon the Company’s reliance that the Buyer will sell any Securities pursuant
to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an
exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold in compliance with
the plan of distribution set forth therein.

 

(i)
Organization; Authority. Such Buyer is either an individual or an entity duly incorporated or formed, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership,
limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction
Documents and performance by such Buyer of the transactions contemplated by the Transaction Documents have been duly authorized
by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Buyer.
Each Transaction Document to which it is a party has been duly executed by such Buyer, and when delivered by such Buyer in accordance
with the terms hereof, will constitute the valid and legally binding obligation of such Buyer, enforceable against it in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(j)
No Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the consummation by such Buyer
of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Buyer, (ii)
conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which such Buyer is a party or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws) applicable to such Buyer, except, in the case of clauses (ii) and (iii) above, for such conflicts,
defaults, rights or violations which could not, individually or in the aggregate, reasonably be expected to have a material adverse
effect on the ability of such Buyer to perform its obligations hereunder.

 

(k)
Certain Trading Activities. The Buyer has not directly or indirectly, nor has any Person acting on behalf of or pursuant
to any understanding with the Buyer, engaged in any transactions in the securities of the Company (including, without limitation,
any Short Sales involving the Company’s securities) during the period commencing as of the time that the Buyer first contacted
the Company or the Company’s agents regarding the specific investment in the Company contemplated by this Agreement and
ending immediately prior to the execution of this Agreement by such Buyer.

 

    	 	6	 

    	 

    

 

(l)
No Oral Representations. Such Buyer acknowledges and agrees that neither the Company nor any other Person has made any
oral representation or warranty as to the Company or this Agreement.

 

(m)
No Governmental Review. Such Buyer understands that no United States federal or state agency or any other government or
governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of
the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(n)
Residency. If such Buyer is an entity, such Buyer’s principal executive offices are, and if such Buyer is a natural
person, such Buyer’s principal residence is, in the jurisdiction set forth immediately below such Buyer’s name on
the signature page hereto, and all communications between such Buyer and the Company regarding the transactions contemplated by
this Agreement took place within or from the state of such principal executive offices or principal residence.

 

(o)
Brokers and Finders. No broker or finder has acted for the Buyer in connection with its purchase of any of the Securities
and no broker or finder is entitled to any broker’s or finder’s fees or other commissions in connection therewith
based on agreements between the Buyer and any broker or finder.

 

5.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The
Company hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of
a specific date therein, in which case they shall be accurate as of such date):

 

(a)
Organization and Qualification. The Company is duly organized and validly existing and in good standing under the laws
of the jurisdiction in which it is formed, and has the requisite power and authority to own its properties and to carry on its
business as now being conducted and as presently proposed to be conducted. The Company is duly qualified as a foreign entity to
do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted
by it makes such qualification necessary.

 

(b)
Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform
its obligations under this Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms
hereof and thereof. The execution and delivery of this Agreement and the other Transaction Documents by the Company, and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Securities
have been duly authorized by the Company’s Board of Directors or other governing body, as applicable, and (other than (x)
the filing with the SEC of the Prospectus Supplement (“Required Filings”), no further filing, consent or authorization
is required by the Company, its Board of Directors or stockholders or other governing body. This Agreement has been, and the other
Transaction Documents to which it is a party will be prior to the Closing, duly executed and delivered by the Company, and each
constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its respective
terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities law.

 

(c)
Issuance of Securities. The issuance of the Securities is duly authorized and upon issuance in accordance with the terms
of the Transaction Documents shall be validly issued, fully paid and non-assessable and free from all Liens.

 

    	 	7	 

    	 

    

 

(d)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Securities
will not (i) result in a violation of the organizational documents of the Company, or any capital stock or other securities of
the Company, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become
a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Company is a party, or (iii) result in a violation of any law, rule, regulation,
order, judgment or decree (including, without limitation, foreign, federal and state securities laws and regulations and the rules
and regulations of the Trading Market and including all applicable foreign, federal and state laws, rules and regulations) applicable
to the Company or by which any property or asset of the Company is bound or affected.

 

(e)
Consents. The Company is not required to obtain any consent from, authorization or order of, or make any filing or registration
with (other than the Required Filings), any Governmental Entity (as defined below) or any regulatory or self-regulatory agency
or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by
the Transaction Documents, in each case, in accordance with the terms hereof or thereof. “Governmental Entity”
means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal, state,
local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental
agency, branch, department, official, or entity and any court or other tribunal), multi-national organization or body; or body
exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority
or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a
government or a public international organization or any of the foregoing.

 

(f)
Acknowledgment Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that each Buyer is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
hereby and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) to its knowledge,
an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule thereto) (collectively,
“Rule 144”)) of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner”
of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the 1934 Act). The Company further acknowledges
that no Buyer is acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity)
with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer
or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby
and thereby is merely incidental to such Buyer’s purchase of the Securities.

 

(g)
No Integrated Offering. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect
of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities
in a manner that would require the registration under the Securities Act of the Convertible Debentures or Conversion Shares or
that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market
such that it would require stockholder approval prior to the closing of such other transaction unless stockholder approval is
obtained before the closing of such subsequent transaction.

 

(h)
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares may increase in certain
circumstances. The Company further acknowledges its obligation to issue the Conversion Shares upon conversion of the Convertible
Debentures in accordance with this Agreement, and the Convertible Debentures is absolute and unconditional regardless of the dilutive
effect that such issuance may have on the ownership interests of other stockholders of the Company.

 

(i)
Application of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary
action, if any, in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison
pill (including, without limitation, any distribution under a rights agreement), stockholder rights plan or other similar anti-takeover
provision under the Certificate of Incorporation, Bylaws or other organizational documents or the laws of the jurisdiction of
its incorporation or otherwise which is or could become applicable to any Buyer as a result of the transactions contemplated by
this Agreement, including, without limitation, the Company’s issuance of the Securities and any Buyer’s ownership
of the Securities.

 

    	 	8	 

    	 

    

 

(j)
SEC Documents; Financial Statements. During the two (2) years prior to the date hereof, the Company has timely filed
all SEC Reports. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the
1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Reports, and none of the SEC Reports,
at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. As of their respective dates, the financial statements of the Company included in the SEC Reports
complied in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with
respect thereto as in effect as of the time of filing. Such financial statements have been prepared in accordance with generally
accepted accounting principles (“GAAP”), consistently applied, during the periods involved (except (i) as may
be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements,
to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects
the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments which will not be material, either
individually or in the aggregate). The Company is not currently contemplating amending or restating any of the financial statements
(including, without limitation, any notes or any letter of the independent accountants of the Company with respect thereto) included
in the SEC Reports (the “Financial Statements”), nor has the Company been informed by its independent accountants
that they recommend that the Company amend or restate any of the Financial Statements.

 

(k)
Absence of Certain Changes. Since the date of the Company’s most recent audited financial statements contained in
a Form 10-K, there has been no Material Adverse Effect, nor any event or occurrence specifically affecting the Company or its
Subsidiaries that would be reasonably expected to result in a Material Adverse Effect. Since the date of the Company’s most
recent audited financial statements contained in a Form 10-K, neither the Company nor any of its Subsidiaries has (i) declared
or paid any dividends, (ii) sold any material assets, individually or in the aggregate, outside of the ordinary course of business
or (iii) made any material capital expenditures, individually or in the aggregate, outside of the ordinary course of business.
Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating
to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have
any knowledge that any of their respective creditors intend to initiate involuntary bankruptcy proceedings.

 

(l)
No Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance has
occurred or exists, or is reasonably expected to exist or occur specific to the Company , any of its Subsidiaries or any of their
respective businesses, properties, liabilities, prospects, operations (including results thereof) or condition (financial or otherwise),
that has not been publicly disclosed and would reasonably be expected to have a Material Adverse Effect.

 

(m)
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term
under its Certificate of Incorporation, any certificate of designation, preferences or rights of any other outstanding series
of preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation,
memorandum of association, articles of association, articles of incorporation or certificate of incorporation or bylaws, respectively.
Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance, rule
or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor any of its Subsidiaries will conduct
its business in violation of any of the foregoing, except in all cases for violations which would not reasonably be expected to
have a Material Adverse Effect. The Company and each of its Subsidiaries possess all certificates, authorizations and permits
issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to
possess such certificates, authorizations or permits would not reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect, and neither the Company nor any of its Subsidiaries has received any notice of proceedings relating
to the revocation or modification of any such certificate, authorization or permit. There is no agreement, commitment, judgment,
injunction, order or decree binding upon the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries
is a party which has or would reasonably be expected to have the effect of prohibiting or materially impairing any business practice
of the Company or any of its Subsidiaries, any acquisition of property by the Company or any of its Subsidiaries or the conduct
of business by the Company or any of its Subsidiaries as currently conducted other than such effects, individually or in the aggregate,
which have not had and would not reasonably be expected to have a Material Adverse Effect on the Company or any of its Subsidiaries.

 

    	 	9	 

    	 

    

 

(n)
Foreign Corrupt Practices. Neither the Company, nor any of its Subsidiaries nor any director, officer, agent, employee,
nor any other person acting for or on behalf of the Company or any of its Subsidiaries (individually and collectively, a “Company
Affiliate”) have violated the U.S. Foreign Corrupt Practices Act (the “FCPA) or any other applicable anti-bribery
or anti-corruption laws, nor has any Company Affiliate offered, paid, promised to pay, or authorized the payment of any money,
or offered, given, promised to give, or authorized the giving of anything of value, to any officer, employee or any other person
acting in an official capacity for any Governmental Entity to any political party or official thereof or to any candidate for
political office (individually and collectively, a “Government Official”) or to any person under circumstances
where such Company Affiliate knew or was aware of a high probability that all or a portion of such money or thing of value would
be offered, given or promised, directly or indirectly, to any Government Official, for the purpose, in violation of applicable
law, of: (i) (A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing such Government
Official to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing
such Government Official to influence or affect any act or decision of any Governmental Entity, or (ii) assisting the Company
or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company or its Subsidiaries.

 

(o)
Equity Capitalization.

 

(i)
Definitions:

 

(A)
“Common Stock” means (x) the Company’s shares of common stock, par value $0.001 per share, and (y) any
capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such
common stock.

 

(ii)
Authorized and Outstanding Capital Stock. As of the date hereof, the authorized capital stock of the Company consists of
(A) 190,000,000 shares of Common Stock, of which 24,674,425 are issued and outstanding and (B) 10,000,000 shares of preferred
stock, of which none are outstanding. 

 

(iii)
Valid Issuance; Available Shares. All of such outstanding shares are duly authorized and have been validly issued
and are fully paid and nonassessable. 

 

(iv)
Existing Securities; Obligations. Except as disclosed in the SEC Reports: (A) none of the Company’s or any Subsidiary’s
shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens arising by or through
the Company or any Subsidiary; (B) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares,
interests or capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements
by which the Company or any of its Subsidiaries is or may become bound to issue additional shares, interests or capital stock
of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or
capital stock of the Company or any of its Subsidiaries; (C) there are no agreements or arrangements under which the Company
or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except pursuant to
this Agreement); (D) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain
any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company
or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (E) there
are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities;
and (G) neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements
or any similar plan or agreement.

 

    	 	10	 

    	 

    

 

(v)
Organizational Documents. The Company has furnished to the Buyers or filed with the SEC true, correct and complete copies
of the Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate
of Incorporation”), and the Company’s bylaws, as amended and as in effect on the date hereof (the “Bylaws”).

 

(p)
Litigation. Except as disclosed in the SEC Reports or otherwise disclosed to the Buyer(s), there is no action, suit, arbitration,
proceeding, inquiry or investigation before or by the Trading Market, public board, other Governmental Entity, self-regulatory
organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries,
the Common Stock or any of the Company’s or its Subsidiaries’ officers or directors, whether of a civil or criminal
nature or otherwise, in their capacities as such, which would reasonably be expected to result in a Material Adverse Effect. Without
limitation of the foregoing, there has not been, and to the knowledge of the Company, there is not pending or contemplated, any
investigation by the SEC involving the Company, any of its Subsidiaries or any current or former director or officer of the Company
or any of its Subsidiaries. Neither the Company nor any of its Subsidiaries is the subject of any order, writ, judgment, injunction,
decree, determination or award of any Governmental Entity that would reasonably be expected to result in a Material Adverse Effect.

 

(q)
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has any reason to believe that
it will be unable to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

 

(r)
Manipulation of Price. Neither the Company nor any of its Subsidiaries has, and, to the knowledge of the Company, no Person
acting on their behalf has, directly or indirectly, taken any action designed to cause or to result in the stabilization or manipulation
of the price of any security of the Company or any of its Subsidiaries to facilitate the sale or resale of any of the Securities.

 

(s)
Registration Eligibility. The Company is eligible to register the resale of the Conversion Shares by the Buyers using Form
S-1 or Form S-3 promulgated under the 1933 Act.

 

(t)
Money Laundering. The Company and its Subsidiaries are in compliance with, and have not previously violated, the USA Patriot
Act of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, but not limited
to, the laws, regulations and Executive Orders and sanctions programs (“Sanctions Programs”) administered by
the U.S. Office of Foreign Assets Control (“OFAC”), including, without limitation, (i) Executive Order 13224
of September 23, 2001 entitled, “Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit,
or Support Terrorism” (66 Fed. Reg. 49079 (2001)); and any regulations contained in 31 CFR, Subtitle B, Chapter V.

 

    	 	11	 

    	 

    

 

(u)
Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided any of the Buyers
or their agents or counsel with any information that constitutes or could reasonably be expected to constitute material, non-public
information concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated by this
Agreement and the other Transaction Documents. The Company understands and confirms that each of the Buyers will rely on the foregoing
representations in effecting transactions in securities of the Company. All disclosure provided or made available to the Buyers
regarding the Company and its Subsidiaries, their businesses and the transactions contemplated hereby, including the schedules
to this Agreement, furnished by or on behalf of the Company or any of its Subsidiaries, taken as a whole, is true and correct
and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were made, not misleading. The Company acknowledges
and agrees that no Buyer makes or has made any representations or warranties with respect to the transactions contemplated hereby
other than those specifically set forth in Section 4.

 

6.
COVENANTS.

 

(a)
Reporting Status. For the period beginning on the date hereof, and ending six months after the date on which all the Debentures
are no longer outstanding (the “Reporting Period”), the Company shall use its best efforts to file on a timely
basis all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status as
an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer
require or otherwise permit such termination.

 

(b)
Use of Proceeds. Neither the Company nor any Subsidiary will, directly or indirectly, use the proceeds of the transactions
contemplated herein to repay any loans to any insiders of the Company. Neither the Company nor any Subsidiary will, directly or
indirectly, use the proceeds of the transactions contemplated herein, or lend, contribute, facilitate or otherwise make available
such proceeds to any Person (i) to fund, either directly or indirectly, any activities or business of or with any Person that
is identified on the list of “specially designated nationals” and “blocker persons” maintained by OFAC,
or in any country or territory, that, at the time of such funding, is, or whose government is, the subject of sanctions programs,
or (ii) in any other manner that will result in a violation of the FCPA.

 

(c)
Listing. The Company shall use its best efforts to promptly secure the listing or designation for quotation (as the case
may be) of all of the Shares and the underlying Conversion Shares on the Trading Market, subject to official notice of issuance,
and shall use reasonable efforts to maintain such listing or designation for quotation (as the case may be) of all Shares and
Conversion Shares from time to time issuable under the terms of the Transaction Documents on such Trading Market for the Reporting
Period. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 6(c).

 

(d)
Fees. The Company shall pay to YA Global II SPV, LLC, an affiliate of the lead Buyer (the “Subsidiary Fund”),
a structuring fee of $15,000 (the “Fees”), of which $10,000 has been paid and the balance shall be paid as
a deduction from the gross proceeds of the Closing.

 

(e)
Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement except the Buyer(s) obligation
to not effect Short Sales, the Company acknowledges and agrees that, subject to compliance with applicable federal and state securities
laws, the Securities may be pledged by a Buyer in connection with a bona fide margin agreement or other loan or financing arrangement
that is secured by the Securities. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities
may reasonably request in connection with a pledge of the Securities to such pledgee by a Buyer.

 

(f)
Disclosure of Transactions and Other Material Information. The Company shall, on or before 9:30 a.m., New York time, on
the first (1st) Business Day after the date of this Agreement, file a Current Report on Form 8-K describing all the
material terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching
all the material Transaction Documents (including, without limitation, this Agreement (including all attachments, the “8-K
Filing”). From and after the filing of the 8-K Filing, the Company shall have disclosed all material, non-public information
(if any) provided to any of the Buyer(s) by the Company or any of its Subsidiaries or any of their respective officers, directors,
employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon
the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations with
respect to the transactions contemplated by the Transaction Documents under any agreement, whether written or oral, between the
Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand,
and any of the Buyer(s) or any of their affiliates, on the other hand, shall terminate. The Company shall not, and the Company
shall cause each of its Subsidiaries and each of its and their respective officers, directors, employees and agents not to, provide
any Buyer with any material, non-public information regarding the Company or any of its Subsidiaries from and after the date hereof
except pursuant a specific request by such Buyer.

 

    	 	12	 

    	 

    

 

(g)
Reservation of Shares. So long as any of the Convertible Debentures remain outstanding, the Company shall take all action
necessary to at all times have authorized, and reserved for the purpose of issuance, no less than 300% of the maximum number of
shares of Common Stock issuable upon conversion of all the Convertible Debentures then outstanding (assuming for purposes hereof
that (x) the Convertible Debentures are convertible at the Conversion Price then in effect, and (y) any such conversion shall
not take into account any limitations on the conversion of the Convertible Debentures) (the “Required Reserve Amount”);
provided that at no time shall the number of shares of Common Stock reserved pursuant to this Section 6(g) be reduced other than
proportionally in connection with any conversion and/or redemption, or reverse stock split. If at any time the number of shares
of Common Stock authorized and reserved for issuance is not sufficient to meet the Required Reserved Amount, the Company will
promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation,
calling a special meeting of stockholders to authorize additional shares to meet the Company’s obligations pursuant to the
Transaction Documents, in the case of an insufficient number of authorized shares, and recommending that stockholders vote in
favor of an increase in such authorized number of shares sufficient to meet the Required Reserved Amount.

 

(h)
Conduct of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance
or regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect. 

 

(i)
No Short Sales. The Buyer hereby agrees that it shall not directly or indirectly, engage in any Short Sales involving the
Company’s securities during the Reporting Period.

 

7.
REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

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

 

(b)
Transfer Restrictions. The Securities may only be disposed of in compliance with state and federal securities laws. In
connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of a Buyer or in connection with a pledge as contemplated herein, the Company may require the transferor thereof
to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form
and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require
registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree
in writing to be bound by the terms of this Agreement and shall have the rights and obligations of a Buyer under this Agreement.

 

    	 	13	 

    	 

    

 

(c)
Principal Market Limitation. The Company shall not issue any shares of Common Stock pursuant to the terms of this Agreement
or the terms of the Convertible 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 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 Buyer(s). Until such approval or such written
opinion is obtained, the Buyer(s) 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 the Convertible Debenture divided by (2) the initial principal amount of all other shares and debentures
issued pursuant to this Agreement (the “Exchange Cap Allocation”). In the event that any Buyer shall sell or
otherwise transfer any of such Buyer’s Convertible Debentures, the transferee shall be allocated a pro rata portion of such
Buyer’s Exchange Cap Allocation with respect to such portion of such Convertible 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.

 

8.
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

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

 

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

 

(b)
Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less, in the case of any Buyer, the amounts
withheld pursuant to Section 6(d)) for the Convertible Debentures being purchased by such Buyer at the Closing by wire transfer
of immediately available funds in accordance with the Closing Statement.

 

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

 

9.
CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE.

 

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

 

(a)
The Company shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party and
the Company shall have duly executed and delivered to such Buyer such aggregate amount of Securities as is set forth opposite
such Buyer’s name in column (b) of the Schedule of Buyers for the Closing.

 

(b)
Such Buyer shall have received the opinion of the Company’s counsel, dated as of the Closing Date, in the form reasonably
acceptable to such Buyer.

 

    	 	14	 

    	 

    

 

(c)
Each and every representation and warranty of the Company shall be true and correct in all material respects (other than representations
and warranties qualified by materiality, which shall be true and correct in all respects) as of the date when made and as of the
Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date,
which shall be true and correct as of such specific date) and the Company shall have performed, satisfied and complied in all
respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by the Company at
or prior to the Closing Date, as set forth in section 4 and 5.

 

(d)
The Common Stock (A) shall be designated for quotation or listed (as applicable) on the Trading Market and (B) shall not have
been suspended, as of the Closing Date, by the SEC or the Trading Market from trading on the Trading Market.

 

(e)
The Company shall have obtained all governmental, regulatory or third-party consents and approvals, if any, necessary for the
sale of the Securities, including without limitation, those required by the Trading Market, if any.

 

(f)
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents.

 

(g)
From the date hereof to the Closing Date, no event or series of events shall have occurred that has resulted in or would reasonably
be expected to result in a Material Adverse Effect. 

 

(h)
Within one (1) Trading Day of the Closing Date, the Company shall have filed a Prospectus Supplement covering the Shares.

 

(i)
Such Buyer shall have received a letter, duly executed by an officer of the Company, setting forth the wire amounts of each Buyer
and the wire transfer instructions of the Company (the “Closing Statement”). 

 

(j)
From the date hereof to the Closing Date, (i) trading in the Common Stock shall not have been suspended by the SEC or the Trading
Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated
prior to the Closing), and (ii) at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on the Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of each Buyer, makes it impracticable or inadvisable to purchase the Securities at the Closing.

 

10.
TERMINATION.

 

In
the event that the Closing shall not have occurred with respect to a Buyer within five (5) days of the date hereof, then such
Buyer shall have the right to terminate its obligations under this Agreement with respect to itself at any time on or after the
close of business on such date without liability of such Buyer to any other party; provided, however, (i) the right to terminate
this Agreement under this Section 10 shall not be available to such Buyer if the failure of the transactions contemplated by this
Agreement to have been consummated by such date is the result of such Buyer’s breach of this Agreement and (ii) the abandonment
of the sale and purchase of the Securities shall be applicable only to such Buyer providing such written notice, provided further
that no such termination shall affect any obligation of the Company under this Agreement to reimburse such Buyer for the expenses
described herein. Nothing contained in this Section 10 shall be deemed to release any party from any liability for any breach
by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of any party
to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents.
In the event of Termination resulting from a breach by any such Buyer, the Company shall be relieved of its obligation to pay
the balance of the Fees which have not previously been paid.

 

    	 	15	 

    	 

    

 

11.
MISCELLANEOUS.

 

(a)
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication
of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated
hereby or thereby, 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. Nothing contained herein shall be deemed or operate to preclude any Buyer from bringing suit or taking
other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to such Buyer or
to enforce a judgment or other court ruling in favor of such Buyer. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE
TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT
OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY
OR THEREBY.

 

(b)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document
format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original
thereof.

 

(c)
Headings; Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect
the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to
include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,”
“include” and words of like import shall be construed broadly as if followed by the words “without limitation.”
The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Agreement
instead of just the provision in which they are found.

 

(d)
Entire Agreement, Amendments. This Agreement supersedes all other prior oral or written agreements between the Buyer(s),
the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement
and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein
and therein and, except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation,
warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other
than by an instrument in writing signed by the party to be charged with enforcement.

 

(e)
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing by letter and email and will be deemed to have been delivered: upon the later of (A) either (i) receipt,
when delivered personally or (ii) one (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 and (B) receipt, when sent by electronic mail. The
addresses and e-mail addresses for such communications shall be:

 

    	 	16	 

    	 

    

 

	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 a Buyer, to its address, e-mail address and facsimile number set forth on the Schedule of Buyers, with copies to such Buyer’s
    representatives as set forth on the Schedule of Buyers, 
	 	 
	With
    copy to:	David
        Gonzalez, Esq.

        c/o
        Yorkville Advisors Global, LP

        1012
        Springfield Avenue

        Mountainside,
        NJ 07092

        Email:
        legal@yorkvilleadvisors.com

 

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

 

(f)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns. Neither party may assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other party hereto.

 

(g)
Indemnification.

 

(i)
In consideration of each Buyer(s) execution and delivery of the Transaction Documents and acquiring the Securities thereunder
and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect,
indemnify and hold harmless each Buyer and each of their stockholders, partners, members, officers, directors, employees and any
of the foregoing Persons’ agents or other representatives (including, without limitation, those retained in connection with
the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and
all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought),
and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred
by any Indemnitee as a result of, or arising out of, or relating to (i) any misrepresentation or breach of any representation
or warranty made by the Company in any of the Transaction Documents, (ii) any breach of any covenant, agreement or obligation
of the Company or any Subsidiary contained in any of the Transaction Documents or (iii) any cause of action, suit, proceeding
or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on
behalf of the Company or any Subsidiary) or which otherwise involves such Indemnitee, in each instance that arises out of or results
from (A) the execution, delivery, performance or enforcement of any of the Transaction Documents, (B) any transaction financed
or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, or (C) any
disclosure properly made by such Buyer pursuant to Section 6(f). To the extent that the foregoing undertaking by the Company may
be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the
Indemnified Liabilities which is permissible under applicable law.

 

    	 	17	 

    	 

    

 

(ii)
Promptly after receipt by an Indemnitee under this Section 11(g) of notice of the commencement of any action or proceeding (including
any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof
is to be made against the Company under this Section 11(g), deliver to the Company a written notice of the commencement thereof,
and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense
thereof with counsel mutually reasonably satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee
shall have the right to retain its own counsel with the reasonable fees and expenses of such counsel to be paid by the Company
if: (A) the Company has agreed in writing to pay such fees and expenses; (B) the Company shall have failed promptly to assume
the defense of such Indemnified Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified
Liability; or (C) the named parties to any such Indemnified Liability (including any impleaded parties) include both such
Indemnitee and the Company, and such Indemnitee shall have been advised by counsel that a conflict of interest is likely to exist
if the same counsel were to represent such Indemnitee and the Company (in which case, if such Indemnitee notifies the Company
in writing that it elects to employ separate counsel at the expense of the Company, then the Company shall not have the right
to assume the defense thereof and such counsel shall be at the expense of the Company), provided further, that in the case of
clause (C) above the Company shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal
counsel for the Indemnitees. The Indemnitee shall reasonably cooperate with the Company in connection with any negotiation or
defense of any such action or Indemnified Liability by the Company and shall furnish to the Company all information reasonably
available to the Indemnitee which relates to such action or Indemnified Liability. The Company shall keep the Indemnitee reasonably
apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. The Company shall not
be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however,
that the Company shall not unreasonably withhold, delay or condition its consent. The Company shall not, without the prior written
consent of the Indemnitee, consent to entry of any judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release from all liability in
respect to such Indemnified Liability or litigation, and such settlement shall not include any admission as to fault on the part
of the Indemnitee. Following indemnification as provided for hereunder, the Company shall be subrogated to all rights of the Indemnitee
with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure
to deliver written notice to the Company within a reasonable time of the commencement of any such action shall not relieve the
Company of any liability to the Indemnitee under this Section 11(g), except to the extent that the Company is materially and adversely
prejudiced in its ability to defend such action.

 

(iii)
The indemnification required by this Section 11(g) shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, within thirty (30) days after bills supporting the Indemnified Liabilities are received by the
Company.

 

(iv)
The indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnitee against
the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law.

 

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

 

[REMAINDER
PAGE INTENTIONALLY LEFT BLANK]

 

    	 	18	 

    	 

    

 

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

 

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

 

    	 	19	 

    	 

    

 

[PURCHASER
SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	Name
    of Purchaser: 	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	 

 

	Email
Address of Authorized Signatory:
	 

 

	Facsimile
Number of Authorized Signatory:
	

 

	Address
for Notice to Purchaser:
	 

 

	Address for Delivery of Securities to Purchaser (if not same as address for notice):

 

	DWAC
    for Shares:	 	 

 

	Subscription
    Amount: $	$500,000	 

 

	Shares:	1,086,957	 

 

	Convertible
    Debentures	$1,500,000	 

 

	EIN:	 	 

 

    	 	20	 

    	 

    

 

EXHIBIT
A

SCHEDULE
OF BUYERS

 

	(a)	 	(b)	 	 	(c)	 	 	(d)	 	 	(e)	 
	Buyer	 	Share
    Subscription Amount	 	 	Convertible
    Debenture Subscription Amount	 	 	Convertible
                                         Debenture

                                                                                Purchase
                                         Price

                                                                                (95%
                                         of Face Value)
	 	 	 
 
Total
                                         Proceeds to Company
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	YA II PN, Ltd.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1012 Springfield Avenue	 	$	500,000	 	 	$	1,500,000.00	 	 	$	1,425,000.00	 	 	$	1,925,000.00	 
	Mountainside, NJ 07092	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Email: Legal@yorkvilleadvisors.com	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Legal Representative’s Address and E-Mail
    Address	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	David Gonzalez, Esq.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1012 Springfield Avenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mountainside, NJ 07092	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Email: Legal@yorkvilleadvisors.com	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	 	21	 

    	 

    

 

EXHIBIT
B

CONVERTIBLE DEBENTURE

 

    	 	22

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