Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of April 26, 2021, is made by and between DarkPulse, Inc., a Delaware corporation
(the “Company”), and FirstFire Global Opportunities Fund, LLC (the “Holder”). The Company and the
Holder are hereinafter sometimes collectively referred to as the “Parties” and each a “Party” to
this Agreement.

 

RECITALS

 

WHEREAS, the Company’s
Board of Directors (the “Board”) has unanimously approved, upon the terms and subject to the conditions of, that certain
Securities Purchase Agreement, of even date herewith, by and between the Holder and the Company (the “Purchase Agreement”),
the Company has agreed to issue and sell to Holder a convertible promissory note in the principal amount of $825,000.00 (the “Note”)
and 75,000,000 shares of Common Stock (the “Commitment Shares”) to the Holder; and

 

WHEREAS, to induce
the Holder to execute and deliver the Purchase Agreement and this Agreement, the Company has agreed to provide certain registration rights
under the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations promulgated thereunder,
and applicable state securities laws, with respect to the Shares (as defined below) issuable pursuant to the Purchase Agreement.

 

NOW, THEREFORE, for
and in consideration of the foregoing premises, the agreements and covenants herein contained, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Holder, intending to be legally bound, hereby agree
as follows:

 

This Agreement predominately
references a Registration Statement and inclusion of the Holder’s securities thereunder. However, the Company may also satisfy
any of its obligations hereunder by including the Holder’s securities in a Regulation A Offering filed with the SEC and New York
state. As a result, references to Registration Statement, Effectiveness, among others, and the deadlines related thereto, also can be
satisfied by having a Regulation A Offering qualified covering the Holder’s securities.

 

1.       
Definitions. As used in this Agreement, the following terms shall have the following meanings:

 

a.       “Closing
Date” shall mean the Purchase Date, as such term is defined in the Purchase Agreement.

 

b.        “Filing
Date” shall mean the date the Registration Statement has been filed with the SEC (as determined by EDGAR) and no stop order
of acceptance has been issued by the SEC.

 

c.       “Registration
Statement” means a Registration Statement of the Company filed with the SEC under the Securities Act.

 

d.       “Person”
means a corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a governmental
or political subdivision thereof or a governmental agency.

 

e.       “Principal
Market” means either the NYSE MKT (formerly the American Stock Exchange), the New York Stock Exchange, Inc., any tier of the
NASDAQ Stock Market, OTCQX® Best Market, the OTCQB® Venture Market or the OTC Pink Market, whichever is the principal market on
which the Securities is listed.

 

 

 

 

    	 	1	 

     

    

 

f.       “Purchase
Amount” means the Purchase Price, as such term is defined in the Purchase Agreement.

 

g.        “Effectiveness
Date” shall mean the date the SEC declares the Registration Statement effective and the Company has filed all necessary amendments
covering the resale of Shares.

 

h.       “Register,”
“Effective” and “Effectiveness” refer to the process of register shares under a Registration Statement
by preparing and filing with the SEC one or more Registration Statements in
compliance with the Securities Act and any successor rule providing for among other securities, the Shares (defined below), and the process
of keeping such Registration Statement(s) effective.

 

i.        “Shares”
means the shares of Common Stock issued or issuable (i) pursuant to the Purchase Agreement (including the Commitment Shares) and (ii)
any shares of capital stock issued or issuable with respect to such Note and any conversion thereof, or other securities issued as a result
of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, which have not been (x) included in a Registration
Statement that has been declared effective by the SEC, (y) sold under circumstances meeting all of the applicable conditions of Rule 144,
promulgated under the Securities Act or (z) saleable without limitation as to time, manner and volume pursuant to Rule 144(k) (or any
similar provision then in force) under the Securities Act.

 

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

 

All capitalized terms used
but not defined in this Agreement shall have the meaning ascribed to them in the Purchase Agreement; provided however, that any references
to Fixed Conversion Price or Default Fixed Conversion Price shall have the meaning ascribed to them in the Note.

 

For the purposes of determining
dates for penalties or filing deadlines, as outlined in this Agreement, both Parties agree that the date given by the SEC shall constitute
the official date.

 

2.Registration.

 

a.       Registration.
If at any time while any amounts are due outstanding under the Note, the Company files a Registration Statement under the Securities Act,
the Company shall use its commercially reasonable efforts, to the extent permissible under U.S. securities laws and the rules and regulations
thereunder, to include the Shares in such Registration Statement with the intention of covering the resale of all of the Shares. If the
Company cannot register enough shares to cover resale of all of the Shares of the Holder, the Company shall register an amount equal to
the maximum amount allowed under the applicable rule or rules as interpreted by the SEC. In the event the Company cannot Register sufficient
shares to cover the Securities, due to the remaining number of authorized shares being insufficient, the Company will use its best efforts
to effective the maximum number of shares it can, based upon the remaining balance of authorized shares and will use its best efforts
to increase the number of its authorized shares as soon as reasonably practicable.

 

b.       The
Company shall use its commercially reasonable efforts, to the extent permissible under U.S. securities laws, to have the Registration
Statement filed with the SEC within ninety (90) days following the payment of the consideration due under the Note (the “Filing
Deadline”).

 

Notwithstanding the foregoing,
failure to file by the Filing Deadline shall not constitute an Event of Default under the Note to the extent any delay in the filing of
the Registration Statement occurs because of an act of, or a failure to act or to act timely by the Holder or is otherwise attributable
to the Holder.

 

The Company acknowledges that
its failure to have the Registration Statement filed by the Filing Deadline will cause the Holder to suffer irreparable harm, and, that
damages will be difficult to ascertain. Accordingly, the Parties agree that it is appropriate that the failure to file by the Filing Deadline
shall constitute an acceleration event with respect to the Maturity Date of the Note. The availability of any remedies hereunder and thereunder
shall not relieve the Company from its obligations to register the Shares and deliver the Shares pursuant to the terms of this Agreement
and the Purchase Agreement.

 

 

 

 

    	 	2	 

     

    

 

c.       The
Company shall use its best efforts and take all available steps to have the Registration Statement declared effective by the SEC within
one hundred eighty (180) calendar days after the Filing Date (the “Effectiveness Deadline”). If the Registration Statement
covering the Shares to be filed by the Company pursuant to Section 2(a) hereof has
not become effective by the Effectiveness Deadline, then it shall
constitute an Event of Default under the Note.

 

If the Registration Statement covering the
Shares to be filed by the Company pursuant to Section 2(a) hereof has become
effective, and, thereafter, the Holder’s right to sell is suspended, for any reason, then the Company shall pay the Holder the
sum of one percent (1%) of the Purchase Amount plus interest and penalties due to the Holder for the Shares pursuant to the Purchase
Agreement for each thirty (30) calendar day period, pro-rata, compounded annually, following the suspension, until such suspension ceases
(the “Suspension Damages”). The Suspension Damages shall continue until the obligation is fulfilled and shall be paid
within five (5) business days after each thirty (30) day period, or portion thereof, until such suspension is released. The Suspension
Damages shall be paid, at the Holder’s option, in cash or shares of the Company’s common stock, par value $0.001, priced
at the Default Fixed Conversion Price, or portion thereof. Failure of the Company to make payment within said five (5) business days
after each thirty (30) day period shall be considered a breach of this Agreement. 

 

Notwithstanding the foregoing,
the amounts payable by the Company pursuant to this Section 2(c) shall not be payable to the extent any delay in the effectiveness
of the Registration Statement or any suspension of the Registration Statement occurs because of an act of, or a failure to act or to
act timely by the Holder or is otherwise attributable to the Holder.

 

The Company acknowledges
that its failure to have the Registration Statement become effective by the
Effectiveness Deadline or to permit the suspension of the Registration Statement, will cause the Holder to suffer irreparable harm and,
that damages will be difficult to ascertain. Accordingly, the Parties agree that it is appropriate to include in this Agreement a provision
for liquidated damages. The Parties acknowledge and agree that the liquidated damages provision set forth in this Section 2(c)
represents the Parties’ good faith effort to quantify such damages and, as such, agree that the form and amount of such liquidated
damages are reasonable and will not constitute a penalty. The payment of liquidated damages shall not relieve the Company from its obligations
to effective the Shares and deliver the Shares pursuant to the terms of this Agreement and the Purchase Agreement.

 

3.Related
Obligations.

 

At such time as the Company
is obligated to prepare and file a Registration Statement with the SEC pursuant to Section 2(a) hereof, the Company will use its
best efforts to Register the Shares in accordance with the intended method of disposition thereof and, with respect thereto, the Company
shall have the following obligations:

 

a.       The
Company shall use its best efforts to cause such Registration Statement relating to the Shares to become effective within ninety (90)
calendar days after the Filing Date and shall keep such Registration Statement Effective until the date on which the Holder shall have
sold all the Shares, or the Shares included therein otherwise cease to be Shares (the “Effectiveness Period”), which
Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall, as of the date thereof,
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make
the statements therein, in light of the circumstances in which they were made, not misleading.

 

b.       The
Company shall prepare and file with the SEC such amendments (including post-effectiveness amendments) and supplements to the Registration
Statement and any exhibits and attachments thereto, as may be necessary to keep such Registration Statement Effective during the Effectiveness
Period, and, during such period, comply with the provisions of the Securities Act with respect to the disposition of all the Shares of
the Company covered by such Registration Statement until such time as all of such Shares shall have been disposed of in accordance with
the intended methods of disposition by the Holder as set forth in such Registration Statement. In the event the number of shares available
under a Registration Statement filed pursuant to this Agreement is at any time insufficient to cover all of the Shares, the Company shall
amend such Registration Statement, or file a new Registration Statement, or both, so as to cover all of the Shares, in each case, as soon
as practicable, but in any event within thirty (30) calendar days after the necessity therefor arises, assuming the Company has sufficient
authorized shares at that time, and if it does not, within thirty (30) calendar days after such shares are authorized. The Company shall
use it best efforts to cause such amendment or new Registration Statement to become effective as soon as practicable following the filing
thereof. If any of the provisions of the Securities Act in any way limit the ability of the Company to file any amendment or new Registration
Statement within thirty (30) calendar days, then the Company shall file the appropriate amendment or Registration Statement as soon as
permitted under the relevant Securities Act provisions.

 

 

    	 	3	 

     

    

 

c.       If
necessary to allow the Holder to sell all of the Shares without pricing restrictions, the Company shall “uplist” to the requisite
tier of the Company’s Principal Market in connection with the registration of the Shares. This requirement may be waived by the
Holder with its consent.

 

d.      Upon
the happening of any event as a result of which the Registration Statement, as then in effect, would then contain an untrue statement
of a material fact, or omission to state a material fact, which would otherwise be required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading; and, as a result of which the Registration
Statement is required to be amended (“Effectiveness Default”), the Company shall use all diligent efforts to promptly
prepare any necessary supplement or amendment to such Registration Statement and take any other necessary steps to cure the Effectiveness
Default, and deliver one (1) copy of such supplement or amendment to Holder (or such other number of copies as Holder may reasonably request;
delivery via EDGAR shall constitute delivery). Failure to cure the Effectiveness Default within five (5) business days shall result in
the Company paying liquidated damages of one percent (1%) of the Purchase Amount for each thirty (30) calendar day period or portion thereof,
beginning on the date of suspension. The Company shall also promptly notify Holder in writing (i) when any post-effective amendment has
been filed, and when a Registration Statement or any post-effectiveness amendment has become Effective (notification of such Effectiveness
shall be delivered to Holder by facsimile on the same day of such Effectiveness and by overnight mail); (ii) in the event the Registration
Statement is no longer effective; or (iii) the Registration Statement is stale for a period of more than five (5) trading days as a result
of the Company’s failure to timely file any reports required by the SEC or state jurisdiction.

 

The Company acknowledges that
its failure to cure the Effectiveness Default within five (5) business days will cause the Holder irreparable harm, and that damages will
be difficult to ascertain. Accordingly, the Parties agree that it is appropriate to include in this Agreement a provision for liquidated
damages. The Parties acknowledge and agree that the liquidated damages provision set forth in this Section 3(e) represents the
Parties’ good faith effort to quantify such damages and, as such, agree that the form and amount of such liquidated damages are
reasonable and will not constitute a penalty.

 

It is the intention of the
Parties that interest payable under any of the terms of this Agreement shall not exceed the maximum amount permitted under any applicable
law. If a law, which applies to this Agreement which sets the maximum interest amount, is finally interpreted so that the interest in
connection with this Agreement exceeds the permitted limits, then: (1) any such interest shall be reduced by the amount necessary to reduce
the interest to the permitted limit; and (2) any sums already collected (if any) from the Company which exceed the permitted limits will
be refunded to the Company. The Holder may choose to make this refund by reducing the amount that the Company owes under this Agreement
or by making a direct payment to the Company. If a refund reduces the amount that the Company owes the Holder, the reduction will be treated
as a partial payment. In the event that any provision of this Agreement is held by a court of competent jurisdiction to be excessive in
scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable
to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Agreement will not in any way
be affected or impaired thereby.

 

e.       The
Company shall use its best efforts to prevent the issuance of any stop order or other suspension of the Effectiveness of a Registration
Statement, or the suspension of the registration of any of the Shares for sale in any jurisdiction and, if such an order or suspension
is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify the Holder of the issuance
of such order and the resolution thereof. The Company will immediately notify the Holder of a proceeding, or threat of proceeding, the
result of which could affect the Effectiveness of the Registration Statement.

 

f.       The
Company shall hold in confidence and not make any disclosure of information concerning the Holder unless (i) disclosure of such information
is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to avoid or correct
a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other
final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has been made generally
available to the public other than by disclosure in violation of this Agreement or any other agreement. The Company agrees that it shall,
upon learning that disclosure of such information concerning a Holder is sought in or by a court or governmental body of competent jurisdiction
or through other means, give prompt written notice to the Holder and allow the Holder, at the Holder’s expense, to undertake appropriate
action to prevent disclosure of, or to obtain a protective order for, such information.

 

 

 

    	 	4	 

     

    

 

g.       The
Company shall use its best efforts to secure or maintain designation and quotation of all the Shares covered by any Registration Statement
on the Principal Market, to the extent such is necessary for the Shares to trade on such market. If, despite the Company’s best
efforts, the Company is unsuccessful in satisfying this obligation, it shall use its best efforts to cause all the Shares covered by any
Registration Statement to be listed on each other national securities exchange and automated quotation system, if any, on which securities
of the same class or series issued by the Company are then listed, if any, if the listing of such Shares is then permitted under the rules
of such exchange or system. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section
3(g).

 

h.       The
Company shall cooperate with the Holder to facilitate the timely preparation and delivery of book-entry or street name shares (not bearing
any restrictive legend) representing the Shares to be offered pursuant to a Registration Statement and enable such certificates to be
in such denominations or amounts, as the case may be, as the Holder may reasonably request and effective in such names of the Persons
who shall acquire such Shares from the Holder, as the Holder may request.

 

i.       The
Company shall provide a transfer agent for all the Shares not later than the Effectiveness Date of the first Registration Statement filed
pursuant hereto.

 

j.       If
requested by the Holder, the Company shall (i) as soon as reasonably practical, incorporate in post-effectiveness amendment such information
as Holder reasonably determines should be included therein relating to the sale and distribution of Shares, including, without limitation,
information with respect to the Note and the Shares; (ii) make all required filings of such post-effectiveness amendment as soon as notified
of the matters to be incorporated in such prospectus supplement or post-effectiveness amendment; and (iii) or make amendments to any Registration
Statement if reasonably requested by Holder.

 

k.       The
Company shall use its best efforts to cause the Shares covered by the applicable Registration Statement to be effective with or approved
by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Shares.

 

l.       The
Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection with any Registration
hereunder.

 

m.       Within
five (5) business days after the Registration Statement which includes the Shares is declared effective by the SEC, the Company shall
deliver to the Holder confirmation that such Registration Statement has been declared effective by the SEC.

 

n.       The
Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Holder of the Shares pursuant
to a Registration Statement.

 

4.Obligations
of The Holder.

 

a.       At
least five (5) calendar days prior to the first anticipated filing date of a Registration Statement, the Company shall notify the Holder
in writing of the information the Company requires from the Holder. The Holder covenants and agrees that, in connection with any resale
of Shares by it pursuant to a Registration Statement, it shall comply with the “Plan of Distribution” section relating to
such Registration Statement.

 

b.       The
Holder, by the Holder’s acceptance of the inclusion of any of the Shares in a Registration Statement, agrees to cooperate with the
Company as reasonably requested by the Company in connection with the preparation and filing of any Registration Statement hereunder and
in responding to SEC comments in connection therewith.

 

 

 

 

    	 	5	 

     

    

 

c.       The
Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(d)
and Section 3(e) hereof, the Holder will immediately discontinue disposition of Shares pursuant to any Registration Statement(s)
covering such Shares until Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 3(d)
and Section 3(e) hereof.

 

5.Expenses
of Registration.

 

All expenses, other than underwriting
discounts and commissions, incurred in connection with the filing of a Registration Statement, any other filings connected thereto pursuant
to Section 2 and Section 3 hereof, including, without limitation, all registration, listing fees, printing and accounting
fees, and reasonable fees and disbursements of counsel for the Company shall be paid by, and are the sole obligation of, the Company.

 

6.Indemnification.

 

In the event any Shares are
included in a Registration Statement under this Agreement:

 

a.       To
the fullest extent permitted by law, the Company will, and hereby agrees to, indemnify, hold harmless and defend the Holder who holds
such Shares, the directors, officers, partners, employees, agents, representatives of, and each Person, if any, who controls Holder within
the meaning of the Securities Act or the Exchange Act) (each, an “Indemnified Person”), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement or reasonable
expenses, joint or several (collectively, “Claims”), incurred in investigating, preparing or defending any action,
claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative
or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto
(Indemnified Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a
material fact in a Registration Statement or any post-effective amendment thereto or in any filing made in connection with the effectiveness
of the Note under the securities or any “blue sky” laws of any jurisdiction in which Shares are offered (“Blue Sky
Filing”) if applicable, or the omission or alleged omission to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which the statements therein were made, not misleading, (ii) any untrue
statement or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company
files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading,
or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including, without
limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Shares pursuant to a Registration
Statement (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”). Subject to the
restrictions set forth in Section 6(c) hereof with respect to the number of legal counsel, the Company shall reimburse the Holder
and each such controlling person, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other
reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim arising out of or
based upon a Violation committed by any Indemnified Person or which occurs in reliance upon and in conformity with information furnished
in writing to the Company by any Indemnified Person expressly for use in connection with the preparation of the Registration Statement
or any such amendment thereof or supplement thereto, if such prospectus were timely made available by the Company pursuant to Section
3(c) hereof; (ii) shall not be available to the extent such Claim is based on (a) a failure of the Holder to deliver or to cause to
be delivered the prospectus made available by the Company or (b) the Indemnified Person’s use of an incorrect prospectus despite
being promptly advised in advance by the Company in writing not to use such incorrect prospectus; and (iii) shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not
be unreasonably withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of
the Indemnified Person and shall survive the resale of the Shares by the Holder pursuant to the Registration Statement.

 

 

 

 

    	 	6	 

     

    

 

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

 

c.       The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

 

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

 

7.Contribution.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 hereof to the fullest extent permitted by law; provided,
however, that: (i) no contribution shall be made under circumstances where the maker would not have been liable for indemnification under
the fault standards set forth in Section 6 hereof; (ii) no seller of Shares guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Shares who was not guilty of fraudulent
misrepresentation; and (iii) contribution by any seller of Shares shall be limited in amount to the net amount of proceeds received by
such seller from the sale of such Shares.

 

8.       Reports
Under the Exchange Act. 

 

With a view to making available
to the Holders the benefits of Rule 144 under the Securities Act or any similar rule or regulation of the SEC that may at any time permit
the Holder to sell securities of the Company to the public without Effectiveness (“Rule 144”) the Company agrees to
take commercially reasonable efforts to:

 

a.       make
and keep public information available, as those terms are understood and defined in Rule 144;

 

 

 

 

    	 	7	 

     

    

 

b.       file
with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act
so long as the Company remains subject to such requirements and the filing of such reports and other documents as are required by the
applicable provisions of Rule 144; and

 

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

 

9.No Assignment
of Effectiveness Rights.

 

The Effectiveness rights and
obligations under this Agreement shall not be assignable.

 

10.Amendment
of Effectiveness Rights.

 

Provisions of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively),
only with the written consent of both the Company and the Holder of the Shares. Any amendment or waiver effected in accordance with this
Section 10 shall be binding upon the Holder and the Company. No such amendment shall be effective to the extent that it applies
to less than all of the Holders of the Shares. No consideration shall be offered or paid to any Person to amend or consent to a waiver
or modification of any provision of any of this Agreement unless the same consideration also is offered to all of the Parties to this
Agreement.

 

11.Miscellaneous.

 

a.       Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided
a confirmation of transmission is mechanically or electronically generated and kept on file by the sending Party); or (iii) one (1) day
after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the Party to receive the same.
The addresses for such communications are as set forth on the signature page to this Agreement. Each Party shall provide five (5) business
days prior notice to the other Party of any change in address, phone number or facsimile number.

 

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

 

c.        This
Agreement and all acts and transactions pursuant hereto and the rights and obligations of the Parties hereto shall be governed, construed
and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. The Parties
submit to the jurisdiction of the state of New York and federal courts in the borough of Manhattan, New York, and agree that any legal
action or proceeding relating to this Agreement may be brought in those courts.

 

d.       This
Agreement, the Purchase Agreement, the Note and any other documents in connection therewith, constitute the entire set of agreements among
the Parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, or undertakings, other
than those set forth or referred to herein or in the Purchase Agreement.

 

e.       This
Agreement and the Purchase Agreement supersede all prior agreements and understandings among the Parties hereto with respect to the subject
matter hereof and thereof.

 

 

 

 

    	 	8	 

     

    

 

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

 

g.       This
Agreement may be executed in two or more counterparts, all of which taken together shall constitute one instrument. Execution and delivery
of this Agreement by exchange of facsimile copies bearing the facsimile signature of a Party shall constitute a valid and binding execution
and delivery of this Agreement by such Party. Such facsimile copies shall constitute enforceable original documents.

 

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

 

i.        All
consents and other determinations to be made by the Holder pursuant to this Agreement shall be made, unless otherwise specified in this
Agreement, by the Holder holding a majority of the Shares.

 

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

 

k.       The
Company hereby represents to the Holder that: (i) it has voluntarily entered into this Agreement of its own freewill; (ii) it is not entering
into this Agreement under economic duress; (iii) the terms of this Agreement are reasonable and fair to the Company; and (iv) the Company
has had, or has had the opportunity and declined to have, independent legal counsel of its own choosing review this Agreement, advise
the Company with respect to this Agreement, and represent the Company in connection with its entering into this Agreement.

 

l.        Notwithstanding
anything in this Agreement to the contrary, the Parties hereto hereby acknowledge and agree to the following: (i) the Holder makes no
representations or covenants that it will not engage in trading in the securities of the Company; (ii) the Company has not and shall not
provide material non-public information to the Holder unless prior thereto the Holder shall have executed a written agreement regarding
the confidentiality and use of such information; and (iii) the Company understands and confirms that the Holder will be relying on the
acknowledgements set forth in clauses (i) through (iii) above if the Holder effects any transactions in the securities of the Company.

 

12.        Waiver.

 

The Holder’s delay or
failure at any time or times hereafter to require strict performance by Company of any undertakings, agreements or covenants shall not
waive, affect, or diminish any right of the Holder under this Agreement to demand strict compliance and performance herewith. Any waiver
by the Holder of any breach under this Agreement (an “Event of Default”) shall not waive or affect any other Event
of Default, whether such Event of Default is prior or subsequent thereto and whether of the same or a different type. None of the undertakings,
agreements and covenants of the Company contained in this Agreement, and no Event of Default, shall be deemed to have been waived by the
Holder, nor may this Agreement be amended, changed or modified, unless such waiver, amendment, change or modification is evidenced by
an instrument in writing specifying such waiver, amendment, change or modification and signed by the Holder.

 

13.        Payment
of Liquidated Damages.

 

With respect to any liquidated
damages or other fees incurred herein by the Company for failure to act in a timely manner, the Holder reserves the rights to take payment
of such amounts in cash or in shares priced at the Fixed Default Conversion Price.

 

[Signature Page Follows]

 

 

 

 

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF,
the Parties hereto have caused this Effectiveness Rights Agreement to be duly executed on the day and year first above written.

 

 

	 	THE
COMPANY:
	 	 
	 	DARKPULSE,
INC. 
	 	 	 
	 	 	 
	 	By:	/s/ Dennis O’Leary
	 	Name:	Dennis
O’Leary
	 	Title:	CEO
	 	Address:	1345 Avenue
of the Americas, 2nd Floor
	 	 	New York, New
York 10105
	 	 	 
	 	HOLDER:
	 	 	 
	 	FirstFire Global Opportunities
Fund, LLC
	 	(entity name,
if applicable)
	 	 	 
	 	 	 
	 	By:	/s/ Eli Fireman
	 	Name:	Eli Fireman
	 	Title:	Manager of FirstFire Capital Management, LLC, its Manager
	 	Address:	1040 1st Avenue,
Suite 190
	 	 	New York, New York
10022

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	10Exhibit 10.5

 

SETTLEMENT
AND MUTUAL RELEASE AGREEMENT

 

THIS SETTLEMENT AND MUTUAL RELEASE AGREEMENT (the "Agreement")
dated as of June 3, 2021 (the “Effective Date”), is made by and between DARKPULSE, INC., a Delaware corporation (the “Company”)
and Auctus Fund, LLC, a Delaware limited liability company (the "Investor") (together with the Company, the “Parties”).

 

WHEREAS,
on September 25, 2018, the Company issued to the Investor a convertible promissory note in the principal amount of $100,000.00 (the “Note”)
pursuant to that certain securities purchase agreement dated September 25, 2018 (the “SPA”);

 

WHEREAS,
on the Effective Date, the Investor effectuated a notice of conversion under the Note for 12,500,000 shares of the Company’s common
stock (the “Shares”); and

 

WHEREAS,
the Parties desire to issue the Shares as consideration for full and complete satisfaction of and settlement of the Note, which will also
terminate all obligations owing under both the Note and the SPA.

 

NOW THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1.                 
Share Issuance. As consideration for full and complete satisfaction of and settlement of the Note, on or before June 7,
2021, the Company (i) shall issue the free trading Shares to the Investor without any restrictive legend and (ii) deliver such Shares
to Investor’s brokerage account as designated by the Investor. Investor shall provide an opinion of Investor’s counsel to
the Company and Company’s transfer agent covering the removal of the restrictive legend from the Shares.

 

2.                 
Leak Out of Shares. The Investor agrees to limit the resales of such Shares in the public market to no more than 2,500,000
shares per calendar week until all of the Shares have been sold.

 

3.                 
Termination of Note and SPA. Upon the issuance of the Shares to the Investor as provided in this Agreement, the Note and
the SPA, including all obligations thereunder, are terminated.

 

4.                 
Rescission of Settlement. Notwithstanding anything in this Agreement to the contrary, in the event that the Company fails
to comply with the terms of this Agreement (including but not limited to the delivery of the Shares pursuant to Section 1 of this Agreement),
then the Investor shall have the right to declare this Agreement null and void and of no further force or effect.

 

5.                 
Mutual Release.

 

		a.	So long as the Company fully complies with the terms of this Agreement, the Investor
hereby irrevocably and unconditionally releases the Company and its past, present and future officers, directors, agents, consultants,
employees, representatives, attorneys, investors, and insurers, as applicable, together with all successors and assigns of any of the
foregoing (collectively, the “Company Released Parties”), of and from all claims, demands, actions, causes of action, rights
of action, contracts, controversies, covenants, obligations, agreements, damages, penalties, interest, fees, expenses, costs, remedies,
reckonings, extents, responsibilities, liabilities, suits, and proceedings of whatsoever kind, nature, or description, direct or indirect,
vested or contingent, known or unknown, suspected or unsuspected, in contract, tort, law, equity, or otherwise, under the laws of any
jurisdiction, that the Investor or its predecessors, legal representatives, successors or assigns, ever had, now has, or hereafter can,
shall, or may have, against the Company Released Parties for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning
of the world through, and including, the Effective Date with respect to the Note, SPA, all transactions relating to the Note (including
but not limited to all conversions of the Note), all transaction documentation relating to the Note, and all transaction documentation
relating to the SPA (collectively, the “Investor Released Claims”).

 

 

 

    	 	1	 

     

    

 

		b.	The Company hereby irrevocably and unconditionally releases the Investor and its
past, present and future officers, directors, agents, consultants, employees, representatives, attorneys, investors, and insurers, as
applicable, together with all successors and assigns of any of the foregoing (collectively, the “Investor Released Parties”),
of and from all claims, demands, actions, causes of action, rights of action, contracts, controversies, covenants, obligations, agreements,
damages, penalties, interest, fees, expenses, costs, remedies, reckonings, extents, responsibilities, liabilities, suits, and proceedings
of whatsoever kind, nature, or description, direct or indirect, vested or contingent, known or unknown, suspected or unsuspected, in contract,
tort, law, equity, or otherwise, under the laws of any jurisdiction, that the Company or its predecessors, legal representatives, successors
or assigns, ever had, now has, or hereafter can, shall, or may have, against the Investor Released Parties, for, upon, or by reason of
any matter, cause, or thing whatsoever from the beginning of the world through, and including, the Effective Date with respect to the
Note, SPA, as well as all transactions (including but not limited to all conversions of the Note) and transaction documentation relating
to the Note (collectively, the “Company Claims”).

 

		c.	The Investor understands that this releases claims that the Investor may not know
about. This is the Investor’s knowing and voluntary intent, even though the Investor recognizes that someday it might learn that
some or all of the facts that it currently believes to be true are untrue and even though it might then regret having signed this Agreement.

 

		d.	The Company understands that this releases claims that the Company may not know
about. This is the Company’s knowing and voluntary intent, even though the Company recognizes that someday it might learn that some
or all of the facts that it currently believes to be true are untrue and even though it might then regret having signed this Agreement.

 

		e.	So long as the Company fully complies with the terms of this Agreement, the Investor
agrees that it will not pursue, file or assert or permit to be pursued, filed or asserted any civil action, suit or legal proceeding seeking
equitable or monetary relief (nor will it seek or in any way obtain or accept any such relief in any civil action, suit or legal proceeding)
in connection with any matter concerning its relationship with the Company with respect to all of the Investor Released Claims released
herein arising from the beginning of the world up to and including the Effective Date (whether known or unknown to it and including any
continuing effects of any acts or practices prior to the Effective Date).

 

		f.	The Company agrees that it will not pursue, file or assert or permit to be pursued,
filed or asserted any civil action, suit or legal proceeding seeking equitable or monetary relief (nor will it seek or in any way obtain
or accept any such relief in any civil action, suit or legal proceeding) in connection with any matter concerning its relationship with
the Investor with respect to all of the Company Claims released herein arising from the beginning of the world up to and including the
Effective Date (whether known or unknown to it and including any continuing effects of any acts or practices prior to the Effective Date).

 

		6.	Miscellaneous.

 

		a.	Notices. Any notices hereunder to the Company or the Investor shall be in
writing. If sent by electronic mail, such notices shall be deemed to have been given when sent (provided that electronic confirmation
of it being sent is received by the sender). If sent by hand delivery or special courier (e.g., Federal Express), such notices shall be
deemed to have been given on the date of delivery thereof as reflected on written confirmation of such delivery. All notices shall be
addressed as follows (or to such other address or addresses of which any party shall provide written notice to the other parties hereto).

 

 

 

 

    	 	2	 

     

    

 

		 	If to the Company:
		 	

 

DARKPULSE, INC.

1345 Ave of the Americas, 2nd Floor

New York, NY
10105

Email: doleary@darkpulse.com

If to the Investor:

 

AUCTUS FUND, LLC

545 Boylston Street, 2nd Floor Boston, MA 02116

 

		b.	Amendments. This Agreement may not be changed orally, but only by an agreement
in writing signed by the Company and the Investor.

 

		c.	Headings. The headings herein are for convenience only, do not constitute
a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

		d.	Execution. This Agreement may be executed in two or more counterparts, all
of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed
by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event
that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature
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 facsimile or “.pdf” signature page were an original thereof.

 

		e.	Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants
and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and
the Parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially
the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the
intention of the Parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

		f.	Construction. The Parties agree that each of them and/or their respective
counsel have reviewed and had an opportunity to revise this Agreement and, therefore, the normal rule of construction to the effect that
any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the this Agreement or any
amendments thereto.

 

		g.	Entire Agreement. This Agreement constitutes the entire understanding between
the Parties hereto with respect to the subject matter hereof and supersedes all negotiations, representations, prior discussions, and
preliminary agreements between the Parties hereto relating to the subject matter of this Agreement.

 

 

 

 

    	 	3	 

     

    

 

		h.	Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Nevada,
without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state or federal courts
located in the Commonwealth of Massachusetts. Each party hereby irrevocably submits to the exclusive jurisdiction of the state or federal
courts sitting in the Commonwealth of Massachusetts for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such action or proceeding is improper or is an
inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being
served in any such action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this 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 other manner permitted by law.

 

		i.	Non-Disparagement. The Company shall not in any written or oral communications
with any third party, including but not limited to any credit reporting agency, investor, vendor, Investor, social media, media, or service
provider, through any medium, whether tangible, electronic, or otherwise, criticize, ridicule or make any statement which, directly or
indirectly, disparages, causes any harm to, or negatively affects the Investor Released Parties. The Company shall not express any negative
opinions of the Investor Released Parties. The provision shall be construed broadly and shall govern any written or oral communications,
express or implied, made concerning any of the Investor Released Parties and/or the Investor Released Parties’ business.

 

		j.	Confidentiality. Except as required by law, the existence and terms of this
Agreement shall be strictly confidential and shall not be disclosed by the Parties, or their representatives, to anyone or any entity
under any circumstances, except to the Parties’ respective attorneys. All the terms of this Agreement, including but not limited
to this provision, are material terms of this Agreement.

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, the Parties
have caused this Agreement to be duly executed as of the date first above written.

 

 

DARKPULSE, INC.

 

 

By: /s/ Dennis O’Leary

Name: Dennis O’Leary

Title: Chief Executive Officer

 

 

 

AUCTUS FUND, LLC

 

By: /s/ Lou Posner 

Name:
Lou Posner

Title: Managing Director

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}]]