Document:

Exhibit 10.1

 

THIRTEENTH
AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

This
THIRTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT dated as of February 28, 2021 (this “Amendment”) to the
Loan and Security Agreement dated as of August 17, 2016 (as amended by the First Amendment dated as of December 12, 2016, the
Second Amendment dated as of November 13, 2017 (including the Allonge dated November 13, 2017 pursuant thereto to the Revolving
Note and the Term Note), the Third Amendment dated as of January 16, 2018, the Fourth Amendment dated as of April 27, 2018, the
Fifth Amendment dated as of November 14, 2018 and a Joinder Agreement dated as of November 20, 2018, the Sixth Amendment dated
as of November 6, 2019, the Seventh Amendment dated as of December 17, 2019, the Eighth Amendment dated as of April 1, 2020, the
Ninth Amendment dated as of September 29, 2020, the Tenth Amendment dated as of November 30, 2020, the Eleventh Amendment dated
as of December 31, 2020, the Twelfth Amendment dated as of January 31, 2021, and as it may be further amended, restated, supplemented,
modified or otherwise changed from time to time, the “Loan Agreement”), is by and among Creative Realities,
Inc., a Minnesota corporation (“CRI”), Creative Realities, LLC, a Delaware limited liability company (“CRLLC”),
Conexus World Global, LLC, a Kentucky limited liability company (“Conexus”), and Allure Global Solutions, Inc.
a Georgia corporation (“Allure” and collectively referred to together with CRI, CRLLC and Conexus as the “Borrower”),
and Slipstream Communications, LLC, an Anguillan limited liability company (the “Lender”). All terms used herein
that are defined in the Loan Agreement and not otherwise defined herein shall have the respective meanings assigned to them in
the Loan Agreement.

 

WHEREAS,
Lender is the holder of that certain Secured Convertible Special Loan Promissory Note issued on December 30, 2019 (the “Special
Loan”) by the Borrower;

 

WHEREAS,
the Special Loan automatically converts to New Preferred (as defined in the Loan Agreement) on February 28, 2021 and the Lender
and Borrower desire to extend the conversion date as set forth herein.

 

NOW
THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Borrower and the Lender, intending to be legally bound, hereby agree as follows:

 

1. Amendments. The
Loan Agreement is hereby amended as follows:

 

a) The
first sentence of Section 1.7 is hereby amended to replace “February 28, 2021” with “March 31, 2021”.

 

b) Schedule
A is hereby amended by adding the following definitions, in appropriate alphabetical order:

 

i) “Thirteenth
Amendment’ means the Thirteenth Amendment to Loan and Security Agreement dated as of February 28, 2021, among Borrower
and the Lender.”; and

 

ii) “Thirteenth
Amendment Effective Date” shall have the meaning specified therefor in Section 3 of the Thirteenth Amendment.”.

 

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2. Representations
and Warranties. Borrower hereby represents and warrants to Lender as follows:

 

a) Representations
and Warranties; No Event of Default. The representations and warranties herein, in Article 3 of the Loan Agreement and in each
other Loan Document, certificate or other writing delivered by or on behalf of Borrower to the Lender pursuant to this Amendment,
the Loan Agreement or any other Loan Document on or prior to the Thirteenth Amendment Effective Date (as defined below) are true
and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties
that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof,
which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the
Thirteenth Amendment Effective Date as though made on and as of such date (unless such representations or warranties (after taking
into account this Amendment) are stated to relate to an earlier date, in which case such representations and warranties shall
be true and correct on and as of such earlier date in all material respects (except that such materiality qualifier shall not
be applicable to any representations or warranties that already are qualified or modified as to “materiality” or “Material
Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject
to such qualification), and no Default or Event of Default has occurred and is continuing as of the Thirteenth Amendment Effective
Date or would result from this Amendment becoming effective in accordance with its terms.

 

b) Authorization,
Etc. The execution, delivery and performance by Borrower of this Amendment and the other Loan Documents being executed concurrently
herewith, and the performance of the Loan Agreement, as amended hereby, and the other Loan Documents, (i) have been duly authorized
by all necessary action, (ii) do not and will not contravene any of the governing documents of any Borrower or any applicable
Requirement of Law, (iii) do not and will not contravene any Contractual Obligation binding on or otherwise affecting any Borrower
or any of its properties (except for those the conflict with which could not reasonably be expected to result in a Material Adverse
Effect), (iv) do not and will not result in or require the creation of any Lien (other than pursuant to any Loan Document) upon
or with respect to any properties of any Borrower, and (v) do not and will not result in any default, noncompliance, suspension,
revocation, impairment, forfeiture or non-renewal of any permit, license, authorization or approval applicable to its operations
or any of its properties, except in each case to the extent that such default, noncompliance, contravention, suspension, revocation,
impairment, forfeiture or non-renewal could not reasonably be expected to result in a Material Adverse Effect.

 

c) Enforceability
of Loan Documents. This Amendment, the Loan Agreement as amended by this Amendment, and each other Loan Document to which
any Borrower is or will be a party, when delivered hereunder, will be, a legal, valid and binding obligation of such Person, enforceable
against such Person in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws and by general principles of equity .

 

3. Conditions
to Effectiveness. This Amendment shall become effective only upon satisfaction in full, in a manner reasonably satisfactory
to the Lender and its counsel, of the following conditions precedent (the first date upon which all such conditions shall have
been satisfied (or waived) being herein called the “Thirteenth Amendment Effective Date”):

 

a) Representations
and Warranties. The representations and warranties contained in this Amendment and in Article 3 of the Loan Agreement and
in each other Loan Document, certificate or other document delivered to Lender pursuant to this Amendment, the Loan Agreement
or any other Loan Document on or prior to the Thirteenth Amendment Effective Date are true and correct in all material respects
(except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or
modified as to “materiality” or “Material Adverse Effect” in the text thereof (which representations and
warranties shall be true and correct in all respects subject to such qualification), on and as of the Thirteenth Amendment Effective
Date as though made on and as of such date, except to the extent that any such representation or warranty (after taking into account
this Amendment) expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct
on and as of such earlier date in all material respects (except that such materiality qualifier shall not be applicable to any
representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse
Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such
qualification) on and as of such earlier date).

 

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b) No
Default; Event of Default. No Default or Event of Default shall have occurred and be continuing on the Thirteenth Amendment
Effective Date or result from this Amendment becoming effective in accordance with its terms.

 

c) Delivery
of Documents. The Lender shall have received on or before the Thirteenth Amendment Effective Date the following, each in form
and substance reasonably satisfactory to the Lender and, unless indicated otherwise, dated the Thirteenth Amendment Effective
Date:

 

i) this
Amendment, duly executed by each Borrower; and

 

ii) a
certificate of an authorized officer of each Borrower, certifying as to the matters set forth in subsections (a) and (b) of this
Section 3.

 

4. Continued
Effectiveness of the Loan Agreement and Other Loan Documents. Each Borrower hereby (i) confirms and agrees that the Loan Agreement
and each other Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified
and confirmed in all respects except that on and after the Thirteenth Amendment Effective Date all references in any such Loan
Document to “the Loan Agreement,” the “Agreement,” “thereto,” “thereof,” “thereunder”
or words of like import referring to the Loan Agreement shall mean the Loan Agreement as amended by this Amendment, and (ii) confirms
and agrees that to the extent that any Loan Document purports to assign or pledge to the Lender, or to grant to the Lender a security
interest in or Lien on, any Collateral as security for the Obligations of any Borrower from time to time existing in respect of
the Loan Agreement (as amended hereby) and the other Loan Documents, such pledge, assignment and/or grant of the security interest
or Lien is hereby ratified and confirmed in all respects. This Amendment does not and shall not affect any of the obligations
of any Borrower, other than as expressly provided herein, including, without limitation, the Borrower's obligations to repay the
Loans in accordance with the terms of the Loan Agreement, or the obligations of any Borrower under any Loan Document to which
it is a party, all of which obligations shall remain in full force and effect. Except as expressly provided herein, the execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Lender under the
Loan Agreement or any other Loan Document, nor constitute a waiver of any provision of the Loan Agreement or any other Loan Document.

 

5. Release.
(a) Each Borrower hereby acknowledges and agrees that: (i) no Borrower has any claim or cause of action against the Lender (or
any of its Affiliates or its or their officers, directors, employees, managers, members, partner, shareholders, attorneys or consultants)
in connection with the Loan Documents and (ii) the Lender has heretofore properly performed and satisfied in a timely manner all
of its obligations to Borrower under the Loan Agreement and the other Loan Documents that are required to have been performed
on or prior to the date hereof. Notwithstanding the foregoing, the Lender wishes (and Borrower agrees) to eliminate any possibility
that any past conditions, acts, omissions, events or circumstances would impair or otherwise adversely affect any of the Lender's
rights, interests, security and/or remedies under the Loan Agreement and the other Loan Documents. Accordingly, for and in consideration
of the agreements contained in this Amendment and other good and valuable consideration, each Borrower (for itself and each other
Borrower and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “Releasors”)
does hereby fully, finally, unconditionally and irrevocably release and forever discharge Lender and each of its Affiliates and
its and their managers, members, partners, officers, directors, employees, shareholders attorneys and consultants in their capacities
as or for the Lender (collectively, the “Released Parties”) from any and all debts, claims, obligations, damages,
costs, attorneys' fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, whether known or
unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under
contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against
any Released Party by reason of any act, omission or thing whatsoever done or omitted to be done directly arising out of, connected
with or related to this Amendment, the Loan Agreement or any other Loan Document, or any act, event or transaction related or
attendant thereto, or the agreements of the Lender contained therein, or the possession, use, operation or control of any of the
assets of any Borrower, or the making of any Loans or other Advances, or the management of such Loans or Advances or the Collateral,
in each case, solely to the extent arising from any act, omission or thing whatsoever done or omitted to be done on or prior to
the Thirteenth Amendment Effective Date.

 

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6. Miscellaneous.

 

a) Borrower
will pay on demand all reasonable and documented out-of-pocket fees, costs and expenses of the Lender in connection with the structuring,
preparation, negotiation, execution and delivery of this Amendment and the transactions and all documents contemplated herein
and therein, and related transactions, and all documents with respect thereto.

 

b) Section
and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

 

c) Borrower
hereby acknowledges and agrees that this Amendment constitutes a “Loan Document” under the Loan Agreement. Accordingly,
it shall be an Event of Default under the Loan Agreement if (i) any representation or warranty made by a Borrower under or in
connection with this Amendment shall have been incorrect in any material respect when made, or (ii) any Borrower shall fail to
perform or observe any term, covenant or agreement contained in this Amendment.

 

d) All
representations, warranties, acknowledgements, agreements and other covenants of the Borrowers in this Amendment are made on a
joint and several basis and are made by each Borrower with respect to itself and all other Borrowers.

 

e) Any
provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

 

f) In
the case of any conflict between the terms of this Amendment and any Loan Document (including any promissory notes and allonges),
the terms of this Amendment shall control.

 

7. Covenant
by Borrower. Borrower covenants and agrees that at any time upon the request of Lender, Borrower will cause Creative Realities
Canada, Inc., a Canadian company and subsidiary of CRI to become a party to the Agreement.

 

8. Counterparts.
This Amendment may be entered into in any number of separate counterparts by any one or more of the parties hereto, and all of
said counterparts taken together shall constitute one and the same instrument. Valid and binding signatures to this Amendment
may be delivered in original ink, by facsimile or by email or other means of electronic transmission.

 

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9. Governing
Law. This Amendment and the obligations arising hereunder shall be governed by, and construed and enforced in accordance with,
the laws of the State of New York applicable to contracts made and performed in such state, without regard to the principles thereof
regarding conflicts of laws.

 

10. Submission
To Jurisdiction; Waiver Of Jury Trial.

 

a)  BORROWER
HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK CITY, NEW YORK, SHALL HAVE EXCLUSIVE JURISDICTION
TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN BORROWER AND THE LENDER PERTAINING TO THIS AMENDMENT OR ANY OF THE OTHER
LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AMENDMENT OR ANY OF THE OTHER LOAN DOCUMENTS; PROVIDED, HOWEVER,
THAT NOTHING IN THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE LENDER FROM BRINGING SUIT
OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY
FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE LENDER. BORROWER EXPRESSLY SUBMITS AND CONSENTS
IN ADVANCE TO SUCH JURISDICTION IN ANYACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND BORROWER HEREBY WAIVES ANY OBJECTION THAT
IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS.

 

b) THE
PARTIES HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING
IN CONTRACT, TORT, OR OTHERWISE BETWEEN LENDER AND BORROWER ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AMENDMENT, THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO.

 

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of page intentionally left blank

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date set forth on the first
page hereof.

 

	BORROWER:	 	LENDER:
	 	 	 
	CREATIVE REALITIES, INC. 	 	SLIPSTREAM COMMUNICATIONS, LLC
	CREATIVE REALITIES, LLC 	 	 
	CONEXUS WORLD GLOBAL, LLC	 	 
	ALLURE GLOBAL SOLUTIONS, INC.	 	 
	 	 	 
	 	 	 
	By: 	/s/ Richard C. Mills 	 	By: 	/s/ Brian Friedman
	Name: 	 RICHARD C. MILLS	 	Name:	 BRIAN FRIEDMAN
	Title:	 Chief Executive Officer	 	Title:	 General Counsel & Secretary
	 	 	 
	Address for Notice (for all Borrowers):	 	Address for Notice:
	Creative Realities, Inc.	 	750 E. Main St., Suite 600
	Attention: Chief Financial Officer	 	Stamford, CT 06902 Attn: Mr. Brian Friedman
	13100 Magisterial Drive, Ste 100	 	 
	Louisville, KY 40223	 	 

  

 

Signature
Page to Thirteenth Amendment to Loan and Security AgreementExhibit
4.1

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.

 

TARONIS
FUELS, INC.

 

Form
Of Warrant To Purchase Common Stock

 

Number
of Shares of Common Stock: __________________

Date
of Issuance: _______________, 2021 (“Issuance Date”)

 

Taronis
Fuels, Inc., a Delaware corporation, (the “Company”), hereby certifies that, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, ____________________,
the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set
forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant
to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof,
the “Warrant”), at any time or times on or after _________________, 2021 (the “Initial Exercisability
Date”), but not after 11:59 p.m., New York Time, on the Expiration Date (as defined below), _______________ (_____________)
fully paid nonassessable shares of Common Stock (as defined below) (the “Warrant Shares”). Except as otherwise
defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 14.

 

    	 

     

    

 

1.
EXERCISE OF WARRANT.

 

(a)
Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth
in Section 1(f)), this Warrant may be exercised by the Holder on any day on or after the Date of Issuance in whole or in part,
by (i) delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”),
of the Holder’s election to exercise this Warrant and (ii) (A) payment to the Company of an amount equal to the applicable
Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate
Exercise Price”) in cash or by wire transfer of immediately available funds. The Holder shall not be required to deliver
the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice with respect to less
than all of the Warrant Shares shall have the same effect as cancellation of the original Warrant and issuance of a new Warrant
evidencing the right to purchase the remaining number of Warrant Shares. On or before the second Business Day following the date
on which the Company has received each of the Exercise Notice and the Aggregate Exercise Price (the “Exercise Delivery
Documents”), the Company shall transmit by e-mail or facsimile an acknowledgment of confirmation of receipt of the Exercise
Delivery Documents to the Holder and the Company’s transfer agent (the “Transfer Agent”). On or before
the second Trading Day following the date on which the Company has received all of the Exercise Delivery Documents (the “Share
Delivery Date”), the Company shall (X) provided that the Transfer Agent is participating in The Depository Trust Company
(“DTC”) Fast Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number
of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s
balance account with DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer Agent is not participating
in the DTC Fast Automated Securities Transfer Program, issue and dispatch by overnight courier to the address as specified in
the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee,
for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise
Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s
DTC account or the date of delivery of the certificates evidencing such Warrant Shares, as the case may be. If this Warrant is
submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant
submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as
soon as practicable and in no event later than three Business Days after any exercise and at its own expense, issue a new Warrant
(in accordance with Section 5(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior
to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional
shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to
be issued shall be rounded up to the nearest whole number.

 

(b)
Exercise Price. For purposes of this Warrant, “Exercise Price” means $3.00 subject to adjustment as
provided herein.

 

(c)
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute
in accordance with Section 10.

 

    	 

     

    

 

(d)
Limitation on Exercises. The Company shall not effect the exercise of this Warrant, and the Holder shall not have the right
to exercise this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person’s
affiliates) would beneficially own in excess of 4.99% of the shares of Common Stock outstanding immediately after giving effect
to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by
such Person and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with
respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable
upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially owned by such Person and its affiliates and
(B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned
by such Person and its affiliates (including, without limitation, any convertible notes or convertible preferred stock or warrants)
subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set forth in the preceding
sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). For purposes of this Warrant, in determining the number
of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in
(1) the Company’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the Securities
and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the
Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon
the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company by the Holder and its affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The provisions of this paragraph shall
be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 1(f) to correct this
paragraph (or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitation herein
contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.

 

(e)
Lock-Up. In the event the Holder exercises its Warrant for any Warrant Shares prior to May 31, 2021, the Holder covenants
and agrees that from the Initial Exercisability Date until May 31, 2021, the Holder will not, and will cause all its affiliates
(as defined in Rule 144 promulgated under the Securities Act of 1933, as amended) or any person in privity with the Holder or
any affiliate of the Holder not to, (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option
to purchase, make any short sale or otherwise dispose of or agree to dispose of, directly or indirectly, any of the Warrant Shares
received hereunder, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within
the meaning of Section 16 of the Exchange Act and the rules and regulations of the Commission promulgated thereunder with respect
to any Warrant Shares received hereunder by the Holder (including holding as a custodian) or with respect to which the Purchaser
has beneficial ownership within the rules and regulations of the Commission as a result of being received hereunder, or (ii) enter
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
of any of the Holder’s Warrant Shares received hereunder, whether any such transaction described in clause (i) or (ii) above
is to be settled by delivery of shares of Common Stock (including the Shares) or other securities, in cash or otherwise, (iii)
make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with
respect to the registration of any Warrant Shares, or (iv) publicly disclose the intention to do any of the foregoing. For the
avoidance of doubt and notwithstanding the foregoing, it is understood that the foregoing shall not impact the Holder’s
ability to sell or take any of the foregoing actions in respect of its shares of Common Stock or shares of Common Stock underlying
previously issued warrants to purchase Common Stock held by the Holder on the date hereof.

 

    	 

     

    

 

2.
ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be
adjusted from time to time as follows:

 

(a)
If the Company at any time on or after the Date of Issuance subdivides (by any stock split, stock dividend, recapitalization or
otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in
effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately
increased. If the Company at any time on or after the Date of Issuance combines (by combination, reverse stock split or otherwise)
one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately
prior to such combination will be proportionately increased and the number of Warrant Shares will be proportionately decreased.
Any adjustment under this Section 2(a) shall become effective at the close of business on the date the subdivision or combination
becomes effective.

 

(b)
Voluntary Adjustment By Company. The Company may at any time during the term of this Warrant reduce the then current Exercise
Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

 

3.
WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s
capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital
of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in
such Person’s capacity as the Holder of this Warrant, any of the rights of a shareholder of the Company or any right to
vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock,
consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise
of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to
purchase any securities (upon exercise of this Warrant or otherwise) or as a shareholder of the Company, whether such liabilities
are asserted by the Company or by creditors of the Company. Notwithstanding this Section 3, the Company shall provide the Holder
with copies of the same notices and other information given to the shareholders of the Company generally, contemporaneously with
the giving thereof to the shareholders.

 

    	 

     

    

 

4.
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Amended and Restated
Certificate of Incorporation, as amended on the date hereof, and Bylaws, as amended on the date hereof, or through any reorganization,
transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good
faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder.
Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common
Stock upon the exercise of this Warrant, and (iii) shall, so long as any of the Warrants are outstanding, take all action necessary
to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the
exercise of the Warrants, 100% of the number of shares of Common Stock as shall from time to time be necessary to effect the exercise
of the Warrants then outstanding (without regard to any limitations on exercise).

 

5.
REISSUANCE OF WARRANTS.

 

(a)
Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon
the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 5(d)), registered
as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and,
if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance
with Section 5(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

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

 

(c)
Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Warrant or Warrants (in accordance with Section 5(d)) representing in the aggregate the right
to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase
such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants
for fractional shares of Common Stock shall be given.

 

(d)
Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant,
such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant,
the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to
Section 5(a) or Section 5(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common
Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares
then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same
as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

    	 

     

    

 

6.
NOTICES. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant,
including in reasonable detail a description of such action and the reason therefore. Without limiting the generality of the foregoing,
the Company will give written notice to the Holder immediately upon any adjustment of the Exercise Price, setting forth in reasonable
detail, and certifying, the calculation of such adjustment.

 

7.
AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company
may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has
obtained the written consent of the Holder; provided that no such action may increase the exercise price of any Warrant or decrease
the number of shares or class of stock obtainable upon exercise of any Warrant without the written consent of the Holder. No such
amendment shall be effective to the extent that it applies to less than all of the holders of the Warrants then outstanding.

 

8.
GOVERNING LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning
the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State
of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware
or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware.

 

9.
CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not
be construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall
not form part of, or affect the interpretation of, this Warrant.

 

10.
DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation
of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via e-mail or facsimile
within two Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If
the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares
within three Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company
shall, within two Business Days submit via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable
investment bank selected by the Company and approved by the Holder or (b) the disputed arithmetic calculation of the Warrant Shares
to the Company’s independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant,
as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later
than ten Business Days from the time it receives the disputed determinations or calculations. Such investment bank’s or
accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

 

    	 

     

    

 

11.
REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance
and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure
by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore
agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to
all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without
any bond or other security being required.

 

12.
TRANSFER. This Warrant may not be offered for sale, sold, transferred or assigned without the prior written consent of
the Company.

 

13.
SEVERABILITY. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues
to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations
or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the
parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

14.
CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

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

 

(b)
“Common Stock” means (i) the Company’s shares of Common Stock, par value $0.000001 per share, and (ii)
any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification
of such Common Stock.

 

(c)
“Expiration Date” means ______________, 2024 or if such date falls on a day other than a Business Day or on
a day which trading does not take place on the Principal Market or the principal securities exchange or securities market on which
the Common Stock is then traded, the next Business Day.

 

    	 

     

    

 

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

 

(e)
“Principal Market” means the OTCQB.

 

(f)
“Trading Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market
on which the Common Stock is then traded; provided that “Trading Day” shall not include any day on which the
Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended
from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in
advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time).

 

[Signature
Page Follows]

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date
set out above.

 

	 	 	TARONIS FUELS, Inc.
	 	 	 	 
	 	 	By:	 
	 	 	Name:	Scott
    Mahoney
	 	 	Title:	Chief
    Executive Officer

 

    	 

     

    

 

EXHIBIT
A

 

EXERCISE
NOTICE

 

TO
BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT
TO PURCHASE COMMON STOCK

 

TARONIS
FUELS, INC.

 

The
undersigned holder hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”)
of Taronis Fuels, Inc., a Delaware corporation (the “Company”), evidenced by the attached Warrant to Purchase
Common Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective
meanings set forth in the Warrant.

 

1.
Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be made with respect to _________________
Warrant Shares.

 

2.
Payment of Exercise Price. The Holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the
Company in accordance with the terms of the Warrant.

 

3.
Delivery of Warrant Shares. The Company shall deliver to the Holder __________ Warrant Shares in accordance with the terms
of the Warrant.

 

Date:
_______________ __, ______

 

	 	 	 
	Name
of Registered Holder	 	 
	 	 	 	 
	By:	        	 	 
	Name:	 	 	 
	Title:	 	 	 

 

    	 

     

    

 

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Exercise Notice and hereby directs Nevada Agency and Transfer Company to issue the above indicated
number of shares of Common Stock.

 

	 	 	TARONIS
    FUELS, INC.
	 	 	 	 
	 	 	By:	                  
	 	 	Name:	 
	 	 	Title:

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