Document:

Exhibit 10.23

 

Certain identified information has been omitted from this document
because it is not material and is treated as private or confidential.  Such information has been marked with “[***]”
to indicate where omissions have been made.

 

 

 

EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into this the 5th day of August 2020,
with effect as of July 29, 2020 (the “Effective Date”), by and between TILT Holdings, Inc. (the “Company”),
and Marshall Horowitz (the “Executive”).

 

RECITALS

 

THE
PARTIES ENTER THIS AGREEMENT on the basis of the following facts, understandings and intentions:

 

A.            The
Company desires to further employ the Employee, and the Employee desires to accept such employment, on the terms and conditions set forth
in this Agreement.

 

B.            This
Agreement shall be effective as of July 29th, 2020 (the “Effective Date”) and shall govern the employment
relationship between the Employee and the Company from and after the Effective Date and, as of the Effective Date, supersedes and negates
all previous agreements and understandings with respect to such relationship.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the above recitals incorporated herein and the mutual covenants and promises contained herein
and other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties agree as
follows:

 

1.            Retention
and Duties.

 

1.1          Retention.
The Company does hereby hire, engage and employ the Executive for the Period of Employment (as
such term is defined in Section 2) on the terms and conditions expressly set forth in this Agreement. The Executive does hereby accept
and agree to such hiring, engagement and employment, on the terms and conditions expressly set forth in this Agreement. Certain capitalized
terms used herein are defined in Section 5.5 of this Agreement.

 

1.2          Duties.
During the Period of Employment, the Executive shall serve the Company as its General Counsel
and shall have the powers, authorities, duties and obligations of management usually vested in the office of the General Counsel of a
company of a similar size and similar nature of the Company, and such other powers, authorities, duties and obligations commensurate with
such positions as the Company’s Chief Executive Officer or Board of Directors (the “Board”) may assign from time
to time, all subject to the directives of the Board and the corporate policies of the Company as they are in effect from time to time
throughout the Period of Employment. During the Period of Employment, the Executive shall report to the Chief Executive Officer.

 

    

     

    

 

1.3          No
Other Employment; Minimum Time Commitment. During the Period of Employment, the Executive
shall (i) devote substantially all of the Executive’s business time, energy and skill to the performance of the Executive’s
duties for the Company, (ii) perform such duties in a faithful, effective and efficient manner to the best of his abilities, and
(iii) hold no other employment. The Executive’s service on the boards of directors (or similar body) of other business entities
is subject to the prior written approval of the Board. The Company shall have the right to require the Executive to resign from any board
or similar body (including, without limitation, any association, corporate, civic or charitable board or similar body) which he may then
serve if the Board reasonably determines that the Executive’s service on such board or body interferes with the effective discharge
of the Executive’s duties and responsibilities to the Company or that any business related to such service is then in direct or
indirect competition with any business of the Company or any of its Affiliates, successors or assigns. Notwithstanding the foregoing,
the Executive may serve as the trustee of any trust for the benefit of any family member, including himself, or personal friend, and as
an advisor to any person or entity for whom or which he currently serves as an advisor.

 

1.4          No
Breach of Contract. The Executive hereby represents to the Company and agrees that: (i) the
execution and delivery of this Agreement by the Executive and the Company and the performance by the Executive of the Executive’s
duties hereunder do not and shall not constitute a breach of, conflict with, or otherwise contravene or cause a default under, the terms
of any other agreement or policy to which the Executive is a party or otherwise bound or any judgment, order or decree to which the Executive
is subject; (ii) the Executive will not enter into any new agreement that would or reasonably could contravene or cause a default
by the Executive under this Agreement; (iii) the Executive has no information (including, without limitation, confidential information
and trade secrets) relating to any other Person which would prevent, or be violated by, the Executive entering into this Agreement or
carrying out his duties hereunder; (iv) to the extent the Executive has any confidential or similar information that he is not free
to disclose to the Company, he will not disclose such information to the extent such disclosure would violate applicable law or any other
agreement or policy to which the Executive is a party or by which the Executive is otherwise bound; and (v) the
Executive understands the Company will rely upon the accuracy and truth of the representations and warranties of the Executive set forth
herein and the Executive consents to such reliance.

 

1.5          Travel.
The Executive acknowledges that his primary work location will be in or around the area of San
Marino, CA, but he will be required to travel from time to time in the course of performing his duties for the Company. All such travel
is subject to company policy applicable to similarly situated executives of the Company.

 

2.            Period
of Employment. The “Period of Employment”
shall be a period of two years commencing on the Effective Date and ending at the
close of business on the second anniversary of the Effective Date (the “Termination Date”); provided, however, that this Agreement
shall be automatically renewed, and the Period of Employment shall be automatically extended for one (1) additional year on the Termination
Date and each anniversary of the Termination Date thereafter, unless either party gives written notice at least sixty (60) days prior
to the expiration of the Period of Employment (including any renewal thereof) of such party’s desire to terminate the Period of
Employment (such notice to be delivered in accordance with Section 18). The term “Period of Employment” shall include
any extension thereof pursuant to the preceding sentence. Notwithstanding the foregoing, the Period of Employment is subject to earlier
termination as provided below in this Agreement.

 

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3.            Compensation.

 

3.1          Base
Salary. During the Period of Employment, the Company shall pay the Executive a base salary
(the “Base Salary”), which shall be paid in accordance with the Company’s regular payroll practices in effect
from time to time but not less frequently than in monthly installments. The Executive’s Base Salary shall be at an annualized rate
of four hundred thousand ($400,000.00) US Dollars. The Board (or a committee thereof) may, in its sole discretion, increase the
Executive’s rate of Base Salary.

 

3.2          Incentive
Bonus. The Executive shall be eligible to receive an incentive bonus for each full fiscal
year of active employment with the Company that occurs during the Period of Employment (“Incentive Bonus”). The Incentive
Bonus shall be equal to between 50%-100% of Executive’s annualized base salary for each fiscal year, but shall in no event be less
than 50% of the Executive’s highest annualized base salary for the applicable fiscal year. Subject to the provisions of this Section,
Executive’s actual Incentive Bonus amount for a particular fiscal year shall be determined by the Board (or a committee thereof)
in its sole discretion, based on performance objectives (which may include corporate, business unit or division, financial, strategic,
individual or other objectives) established with respect to that particular fiscal year by the Board (or a committee thereof) using the
targeted guidance of 50%-100% of annualized salary. The Incentive Bonus will be paid to the Executive upon the earlier of: (x) the
date when bonuses are paid to any other executive level employee or (y) 60 days after the end of the prior calendar year to which
the Incentive Bonus relates.

 

3.3          Equity
Award. Subject to approval by the Board or any duly appointed committee thereby, as soon
as practical after the Company has an open trading window pursuant to its Insider Trading Policy, after the Effective Date, the Company
will grant the Executive a stock option (the “Option”) to purchase shares of the Company’s common stock in accordance
with the Company’s Equity and Incentive plan, in the amount of 800,000 incentive stock options at a price per share not less than
the per-share fair market value of a share of the common stock of the Company on the date of grant, as reasonably determined by the Board
(the “2020 Options”). Such number of shares is subject to adjustment, as provided in the adjustment provisions of the Company’s
Amended and Restated 2018 Stock and Incentive Plan, should a stock split, reverse stock split, or certain other events occur before the
date of grant of the Option. The 2020 Options shall vest, subject to the Executive’s continued employment by the Company, over
a period of twenty-four (24) months, with respect to 25% of the shares subject to this option on each of the following dates: (i) on
the date that is six (6) months from the Effective Date, (ii) on the date that is twelve (12) months from the Effective Date,
(iii) on the date that is eighteen (18) months from the Effective Date, and (iv) on the date that is twenty-four (24) months
from the Effective Date.

 

4.            Benefits.

 

4.1          Retirement,
Welfare and Fringe Benefits. During the Period of Employment, the Executive shall be entitled
to participate in all employee pension and welfare benefit plans and programs, and fringe benefit plans and programs, made available by
the Company to the Company’s employees generally, in accordance with the eligibility and participation provisions of such plans
and as such plans or programs may be in effect from time to time.

 

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4.2          Reimbursement
of Business Expenses. The Executive is authorized to incur reasonable expenses in carrying
out the Executive’s duties for the Company under this Agreement and shall be entitled to reimbursement for all reasonable business
expenses the Executive incurs prior to or during the Period of Employment in connection with carrying out the Executive’s duties
for the Company, including in connection with his home office, subject to the Company’s expense reimbursement policies and any pre-approval
policies in effect from time to time. The Executive agrees to promptly submit and document any reimbursable expenses in accordance with
the Company’s expense reimbursement policies to facilitate the timely reimbursement of such expenses.

 

4.3          Paid
Time Off and Other Leave. During the Period of Employment, the Executive’s annual rate
of paid time off accrual shall be one-hundred and sixty hours (160) per year, with such time off to accrue and be subject to the Company’s
PTO policies in effect for executives of the Company from time to time, including any policy which may limit time off accruals and/or
limit the amount of accrued but unused time off to carry over from year to year. The Executive shall also be entitled to all other holiday
and leave pay generally available to other executives of the Company.

 

5.            Termination.

 

5.1          Termination
by the Company. During the Period of Employment, the Executive’s employment by the
Company, and the Period of Employment, may be terminated at any time by the Company: (i) with Cause, or (ii) with no less than
thirty (30) days’ advance written notice to the Executive (such notice to be delivered in accordance with Section 18), without
Cause, or (iii) in the event of the Executive’s death, or (iv) in the event that the Board determines in good faith that
the Executive has a Disability.

 

5.2          Termination
by the Executive.  During the Period of Employment, the Executive’s employment by the
Company, and the Period of Employment, may be terminated by the Executive with thirty (30) days’ advance written notice to the Company
(such notice to be delivered in accordance with Section 18); provided, however, that in the case of a termination for Good Reason,
the Executive may provide immediate written notice of termination once the applicable cure period (as contemplated by the definition of
Good Reason) has lapsed if the Company has not reasonably cured the circumstances that gave rise to the basis for the Good Reason termination.
The Company may direct the Executive to refrain from performing the Executive’s duties, and/or place the Executive on paid administrative
leave, during the thirty (30) day notice period (or any portion thereof), and such action shall not constitute a breach by the Company
of this Agreement nor shall it constitute Good Reason.

 

5.3          Benefits
upon Termination. If the Executive’s employment by the Company is terminated for any
reason by the Company or by the Executive (the date that the Executive’s employment by the Company terminates is referred to as
the “Severance Date”), the Company shall have no further obligation to make or provide to the Executive, and the Executive
shall have no further right to receive or obtain from the Company, any payments or benefits except as follows:

 

(a)           The
Company shall pay the Executive (or, in the event of his death, the Executive’s estate) any Accrued Obligations;

 

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(b)           If
the Executive’s employment with the Company terminates during the Period of Employment as a result of a termination by the Company
without Cause (other than due to the Executive’s death or Disability) or a resignation by the Executive for Good Reason, the Executive
shall be entitled to the following benefits:

 

(i)            The
Company shall pay or reimburse the Executive (in addition to the Accrued Obligations), for his premiums charged to continue medical coverage,
plus his prorated portion of the Executive’s minimum Incentive Bonus amount as in effect on the Severance Date. Such amount is referred
to hereinafter as the “Severance Benefit.” The coverage of medical premiums is pursuant to the Consolidated Omnibus
Budget Reconciliation Act (“COBRA”), at the same or reasonably equivalent medical coverage for the Executive (and,
if applicable, the Executive’s eligible dependents) as in effect immediately prior to the Severance Date, to the extent that the
Executive elects such continued coverage; provided that the Company’s obligation to make any payment or reimbursement pursuant to
this clause (i) shall, subject to Section 21(b), commence with continuation coverage for the month following the month in which
the Executive’s Separation from Service occurs and shall cease with continuation coverage for the sixth month following the month
in which the Executive’s Separation from Service occurs (or, if earlier, shall cease upon the first to occur of the Executive’s
death, the date the Executive becomes eligible for coverage under the health plan of a future employer, or the date the Company ceases
to offer group medical coverage to its active executive employees or the Company is otherwise under no obligation to offer COBRA continuation
coverage to the Executive). To the extent the Executive elects COBRA coverage, he shall notify the Company in writing of such election
prior to such coverage taking effect and complete any other continuation coverage enrollment procedures the Company may then have in place.
The Company’s obligations pursuant to this Section 5.3(b)(i) are subject to the Company’s ability to comply with
applicable law and provide such benefit without resulting in material adverse tax consequences.

 

(ii)           Based
upon the Company pay practices at the time of separation; on the next regularly scheduled pay date following the Executive’s Separation
from Service, subject to the execution of the general release attached as Exhibit A and other requirements of Paragraph 5.4 below,
the Company shall pay the Executive the amount of Base Salary equal to one (1) week at the rate of pay upon separation per every
one (1) month that the Executive was actively and continuously employed by the Company up to a maximum of twelve (12) months; provided,
however, the amount of these additional severance payments will be reduced dollar-for-dollar by the amount of compensation for providing
services (whether as employee, consultant, independent contractor or otherwise) earned by Executive from any source following the Severance
Date. In no case shall the total payment owed under this Paragraph 5.3(b)(ii) exceed the total Base Salary earned by the Executive
in the prior twelve (12) months, regardless of the Executive’s tenure at the time of separation. For the purposes of clarity, any
calendar month in which the Executive is actively employed by the Company for at least one (1) business day counts as a full month
for the purposes of this payment. The duration of Executive’s active and continuous employment with the Company shall be calculated
without regard to the employment agreement then in effect, so long as the Executive was actively and continuously employed by the Company.
Additionally, the Company shall pay the Executive a prorated portion of the Executive’s minimum Incentive Bonus with respect to
the fiscal year in which the Severance Date occurs, such amount to equal (x) the Executive’s minimum annual Incentive Bonus
amount as in effect on the Severance Date multiplied by (y) a fraction, the numerator of which is the total number of days in such
fiscal year in which the Executive was employed by the Company and the denominator of which is the total number of days in such fiscal
year. The payments in subsections (i) and (ii) herein shall be known as the “Severance Benefits.”

 

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(iii)          As
to each then-outstanding stock option and other equity-based award granted by the Company to the Executive that vests based solely on
the Executive’s continued service with the Company, the Executive shall vest as of the Severance Date in the portion of any such
award that is outstanding and unvested immediately prior Severance Date and was otherwise scheduled to vest (in accordance with the time-based
vesting schedule applicable to the award) in the thirty (30) day period immediately following the Severance Date. Any other stock option
or other equity-based award granted by the Company to the Executive that is then-outstanding and unvested on the Severance Date, and any
unvested portion of any stock option or other-equity based award referred to in the preceding sentence that remains unvested after giving
effect to the acceleration of vesting provided for in the preceding sentence, shall terminate on the Severance Date and the Executive
shall have no further right with respect thereto or in respect thereof. If a stock option or other equity-based award granted by the Company
the Executive includes accelerated vesting provisions that are more favorable to the Executive in the circumstances than the provisions
of this clause (iii), the provisions of the award (and not this clause (iii)) will apply as to that particular award.

 

(c)           If
the Executive’s employment with the Company terminates during the Period of Employment as a result of the Executive’s death
or Disability, the Company shall have no further obligation to pay the Executive. The Executive’s then-outstanding stock option
and other equity-based awards granted by the Company to Executive shall be treated as provided in Section 5.3(b)(iii).

 

(d)           Notwithstanding
the foregoing provisions of this Section 5.3, if the Executive breaches his obligations under Section 6 of this Agreement at
any time, from and after the date of such breach and not in any way in limitation of any right or remedy otherwise available to the Company,
the Executive will no longer be entitled to, and the Company will no longer be obligated to pay, any remaining unpaid portion of the
Severance Benefit, or to any continued Company-paid or reimbursed coverage pursuant to Section 5.3(b)(i); provided that, if the
Executive provides the Release contemplated by Section 5.4, in no event shall the Executive be entitled to benefits pursuant to
Section 5.3(b) of less than $5,000 (or the amount of such benefits, if less than $5,000), which amount the parties agree is
good and adequate consideration, in and of itself, for the Executive’s Release contemplated by Section 5.4.

 

(e)           The
foregoing provisions of this Section 5.3 shall not affect: (i) the Executive’s receipt of benefits otherwise due terminated
employees under group insurance coverage consistent with the terms of the applicable Company welfare benefit plan; (ii) the Executive’s
rights under COBRA to continue health coverage; or (iii) the Executive’s receipt of benefits otherwise due in accordance with
the terms of the Company’s 401(k) plan (if any).

 

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5.4          Release;
Exclusive Remedy; Leave.

 

(a)           This
Section 5.4 shall apply notwithstanding anything else contained in this Agreement or any stock option or other equity-based award
agreement to the contrary. As a condition precedent to any Company obligation to the Executive pursuant to Section 5.3(b) or
any other obligation to accelerate vesting of any equity-based award in connection with the termination of the Executive’s employment,
the Executive shall provide the Company with a valid, executed general release agreement in substantially the form attached hereto as
Exhibit A (with such changes as may be reasonably required to such form to help ensure its enforceability in light of any
changes in applicable law) (the “Release”), and such Release shall have not been revoked by the Executive pursuant
to any revocation rights afforded by applicable law. The Company shall provide the final form of Release to the Executive not later than
seven (7) days following the Severance Date, and the Executive shall be required to execute and return the Release to the Company
within twenty-one (21) days (or forty-five (45) days if such longer period of time is required to make the Release maximally enforceable
under applicable law) after the Company provides the form of Release to the Executive.

 

(b)           The
Executive agrees that the payments and benefits contemplated by Section 5.3 shall constitute the exclusive and sole remedy for any
termination of his employment and the Executive covenants not to assert or pursue any other remedies at law or in equity, with respect
to any termination of employment. The Company and the Executive acknowledge and agree that there is no duty of the Executive to mitigate
damages under this Agreement. All amounts paid to the Executive pursuant to Section 5.3 shall be paid without regard to whether
the Executive has taken or takes actions to mitigate damages. The Executive agrees to resign, on the Severance Date, as an officer and
director of the Company and any Affiliate of the Company, and as a fiduciary of any benefit plan of the Company or any Affiliate of the
Company, and to promptly execute and provide to the Company any further documentation, as requested by the Company, to confirm such resignation,
and to remove himself as a signatory on any accounts maintained by the Company or any of its Affiliates (or any of their respective benefit
plans).

 

(c)           In
the event that the Company provides the Executive notice of termination without Cause pursuant to Section 5.1 or the Executive provides
the Company notice of termination pursuant to Section 5.2, the Company will have the option to place the Executive on paid administrative
leave during the notice period.

 

5.5          Certain
Defined Terms.

 

(a)           As
used herein, “Accrued Obligations” means:

 

(i)            any
Base Salary that had accrued but had not been paid (including accrued and unpaid vacation time) on or before the Severance Date; and

 

(ii)           any
reimbursement due to the Executive pursuant to Section 4.2 for expenses reasonably incurred by the Executive on or before the Severance
Date and documented and pre-approved, to the extent applicable, in accordance with the Company’s expense reimbursement policies
in effect at the applicable time.

 

(b)           As
used herein, “Affiliate” of the Company means a Person that directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the Company. As used in this definition, the term “control,”
including the correlative terms “controlling,” “controlled by” and “under common control with,” means
the possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership
of securities or any partnership or other ownership interest, by contract or otherwise) of a Person.

 

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(c)            As
used herein, “Cause” shall mean that one or more of the following has occurred:

 

(i)            the
Executive is convicted of, pled guilty or pled nolo contendere to a felony (under the laws of the United States or any relevant
state, or a similar crime or offense under the applicable laws of any relevant foreign jurisdiction);

 

(ii)           the
Executive has engaged in acts of fraud, dishonesty or other acts of willful misconduct in the course of his duties hereunder;

 

(iii)          the
Executive willfully fails to perform or uphold his duties under this Agreement and/or willfully fails to comply with reasonable directives
of the Board; or

 

(iv)          a
breach by the Executive of any provision of Section 6, or any material breach by the Executive of any other provision of this Agreement
or of any other contract he is a party to with the Company or any of its Affiliates;

 

provided, however, that any condition or conditions
referenced in clauses (iii) and (iv) above, as applicable, shall not constitute Cause unless both (x) the Company provides
written notice to the Executive of the condition claimed to constitute Cause (such notice to be delivered in accordance with Section 18),
and (y) the Executive fails to remedy to the reasonable satisfaction of the Company such condition(s) within thirty (30) days
of receiving such written notice thereof. However, no act or failure to act, on the Executive’s part shall be considered “willful”
unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that his action or omission was in
the best interest of the Company.

 

(d)           As
used herein, “Disability” shall mean a physical or mental impairment which, as reasonably determined by the Board,
renders the Executive unable to perform the essential functions of his employment with the Company, even with reasonable accommodation
that does not impose an undue hardship on the Company, for more than 90 days in any 180-day period, unless a longer period is required
by federal or state law, in which case that longer period would apply.

 

(e)           As
used herein, “Good Reason” shall mean the occurrence (without the Executive’s consent) of any one or more of
the following conditions:

 

(i)            a
material diminution in the Executive’s rate of Base Salary; or

 

(ii)           a
material diminution in the Executive’s authority, duties, or responsibilities; or

 

(iii)          a
requirement that the Executive relocate his primary place of work out of San Marino, California; or

 

(iv)          a
material breach by the Company of this Agreement;

 

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provided, however, that any such condition or
conditions, as applicable, shall not constitute Good Reason unless both (x) the Executive provides written notice to the Company
of the condition claimed to constitute Good Reason within sixty (60) days of the initial existence of such condition(s) (such notice
to be delivered in accordance with Section 18), and (y) the Company fails to remedy to the reasonable satisfaction of the Executive
such condition(s) within thirty (30) days of receiving such written notice thereof; and provided, further, that in all events the
termination of the Executive’s employment with the Company shall not constitute a termination for Good Reason unless such termination
occurs not more than one hundred and twenty (120) days following the initial existence of the condition claimed to constitute Good Reason.

 

(f)            As
used herein, the term “Person” shall be construed broadly and shall include, without limitation, an individual, a partnership,
a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization
and a governmental entity or any department, agency or political subdivision thereof.

 

(g)           As
used herein, a “Separation from Service” occurs when the Executive dies, retires, or otherwise has a termination of
employment with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1),
without regard to the optional alternative definitions available thereunder.

 

5.6.          Notice
of Termination; Employment Following Expiration of Period of Employment. Any termination
of the Executive’s employment under this Agreement shall be communicated by written notice of termination from the terminating party
to the other party. This notice of termination must be delivered in accordance with Section 18 and must indicate the specific provision(s) of
this Agreement relied upon in effecting the termination. If the Company or the Executive do not renew the terms of this agreement or execute
a new agreement following the expiration of the Period of Employment, the Executive’s employment by the Company following the expiration
of the Period of Employment shall be on an at-will basis and may be terminated by the Company or by the Executive at any time, for any
reason (or for no reason), with or without advance notice.

 

6.            Protective
Covenants.

 

6.1          Confidential
Information; Inventions.

 

(a)           The
Executive shall not disclose or use at any time, either during the Period of Employment or thereafter, any Confidential Information (as
defined below) of which the Executive is or becomes aware, whether or not such information is developed by him, except to the extent that
such disclosure or use is directly related to and required by the Executive’s performance in good faith of duties for the Company.
The Executive will take all appropriate steps to safeguard Confidential Information in his possession and to protect it against disclosure,
misuse, espionage, loss and theft. The Executive shall deliver to the Company at the termination of the Period of Employment, or at any
time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data
(and copies thereof) relating to the Confidential Information or the Work Product (as hereinafter defined) of the business of the Company
or any of its Affiliates which the Executive may then possess or have under his control. Notwithstanding the foregoing, the Executive
may truthfully respond to a lawful and valid subpoena or other legal process, but shall give the Company the earliest possible notice
thereof, shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other
information sought, and shall assist the Company and such counsel in resisting or otherwise responding to such process.

 

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(b)           The Executive understands that nothing
in this Agreement is intended to limit the Executive’s right (i) to discuss the terms, wages, and working conditions of the
Executive’s employment to the extent permitted and/or protected by applicable labor laws, (ii) to report Confidential Information
in a confidential manner either to a federal, state or local government official or to an attorney where such disclosure is solely
for the purpose of reporting or investigating a suspected violation of law, (iii) to disclose information pursuant to California
Civil Code section 1670.11, or (iv) to disclose Confidential Information in an anti-retaliation lawsuit or other legal proceeding,
so long as that disclosure or filing is made under seal and the Executive does not otherwise disclose such Confidential Information, except
pursuant to court order. The Company encourages Executive, to the extent legally permitted, to give the Company the earliest possible
notice of any such report or disclosure.

 

(i)            Pursuant
to the Defend Trade Secrets Act of 2016, the Executive acknowledges that he may not be held criminally or civilly liable under any federal
or state trade secret law for the disclosure of Confidential Information that: (a) is made in confidence to a federal, state, or
local government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected
violation of law; or (b) is made in a complaint or other document that is filed in a lawsuit or other proceeding, provided that such
filing is made under seal. Further, the Executive understands that the Company will not retaliate against him in any way for any such
disclosure made in accordance with the law. In the event a disclosure is made, and the Executive files any type of proceeding against
the Company alleging that the Company retaliated against him because of his disclosure, the Executive may disclose the relevant Confidential
Information to his attorney and may use the Confidential Information in the proceeding if (x) the Executive files any document containing
the Confidential Information under seal, and (y) the Executive does not otherwise disclose the Confidential Information except pursuant
to court or arbitral order.

 

(ii) Nothing in this Agreement or any other
agreement that Executive has with the Company shall prohibit Executive from (i) disclosing the underlying facts or circumstances
relating to claims of sexual harassment, sex discrimination, sexual assault, failure to prevent an act of workplace harassment or discrimination
based on sex or an act of retaliation against a person for reporting harassment or discrimination based on sex or any other unlawful or
potentially unlawful conduct or (ii) responding to a valid subpoena, court order or similar legal process; provided, however, that
prior to making any such disclosure, Executive shall provide the Company with written notice of the subpoena, court order or similar legal
process sufficiently in advance of such disclosure to afford the Company a reasonable opportunity to challenge the subpoena, court order
or similar legal process.

 

(c)           As
used in this Agreement, the term “Confidential Information” means information that is not generally known to the public
and that is used, developed or obtained by the Company or its Affiliates in connection with their respective businesses, including, but
not limited to, information, observations and data obtained by the Executive while employed by the Company or its Affiliates or any predecessors
thereof (including those obtained prior to the Effective Date) concerning (i) the business or affairs of the Company or its Affiliates
(or such predecessors), (ii) products or services, (iii) fees, costs and pricing structures and strategies, (iv) designs,
(v) analyses, (vi) drawings, photographs and reports, (vii) computer software, including operating systems, applications
and program listings, (viii) flow charts, manuals and documentation, (ix) databases, (x) accounting and business methods,
(xi) inventions, devices, new developments, product roadmaps, methods and processes, whether patentable or unpatentable and whether
or not reduced to practice, (xii) customers and clients, customer or client lists, and the preferences of, and negotiations with,
customers and clients, (xiii) personnel information of other employees and independent contractors (including their compensation,
unique skills, experience and expertise, and disciplinary matters), (xiv) other copyrightable works, (xv) all production methods,
processes, technology and trade secrets, and (xvi) all similar and related information in whatever form. Confidential Information
will not include any information that has been published (other than a disclosure by the Executive in breach of this Agreement) in a form
generally available to the public prior to the date the Executive proposes to disclose or use such information. Confidential Information
will not be deemed to have been published merely because individual portions of the information have been separately published, but only
if all material features comprising such information have been published in combination.

 

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(d)           As
used in this Agreement, the term “Work Product” means all inventions, innovations, improvements, technical information,
systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos and all similar
or related information (whether patentable or unpatentable, copyrightable, registerable as a trademark, reduced to writing, or otherwise)
which relates to the Company’s or any of its Affiliates’ actual or anticipated business, research and development or existing
or future products or services and which are conceived, developed or made by the Executive (whether or not during usual business hours,
whether or not by the use of the facilities of the Company or any of its Affiliates, and whether or not alone or in conjunction with any
other person) while employed by the Company or its Affiliates (including those conceived, developed or made prior to the Effective Date)
together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights
and reissues thereof that may be granted for or upon any of the foregoing. All Work Product that the Executive may have discovered, invented
or originated during his employment by the Company or any of its Affiliates prior to the Effective Date, that he may discover, invent
or originate during the Period of Employment or at any time in the period of twelve (12) months after the Severance Date, shall be the
exclusive property of the Company and its Affiliates, as applicable, and Executive hereby assigns all of Executive’s right, title
and interest in and to such Work Product to the Company or its applicable Affiliate, including all intellectual property rights therein.
Executive shall promptly disclose all Work Product to the Company, shall execute at the request of the Company any assignments or other
documents the Company may deem necessary to protect or perfect its (or any of its Affiliates’, as applicable) rights therein, and
shall assist the Company, at the Company’s expense, in obtaining, defending and enforcing the Company’s (or any of its Affiliates’,
as applicable) rights therein. The Executive hereby appoints the Company as his attorney-in-fact to execute on his behalf any assignments
or other documents deemed necessary by the Company to protect or perfect the Company, the Company’s (and any of its Affiliates’,
as applicable) rights to any Work Product.

 

6.2          Restriction
on Competition. [INTENTIONALLY OMITTED]

 

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6.3          Non-Solicitation
of Employees and Consultants. During the Period of Employment and for a period of twelve (12) months after the Severance Date,
the Executive will not directly or indirectly through any other Person solicit, induce or encourage, or attempt to solicit, induce or
encourage, any employee or independent contractor of the Company or any Affiliate of the Company to leave the employ or service, as applicable,
of the Company or such Affiliate, or become employed or engaged by any third party, or in any way interfere with the relationship between
the Company or any such Affiliate, on the one hand, and any employee or independent contractor thereof, on the other hand.

 

6.4          Non-Interference
with Customers. During the Period of Employment and for a period of twelve (12) months after
the Severance Date, the Executive will not, directly or indirectly through any other Person, use any of the Company’s trade secrets
to influence or attempt to influence customers, vendors, suppliers, licensors, lessors, joint venturers, associates, consultants, agents,
or partners of the Company or any Affiliate of the Company to divert their business away from the Company or such Affiliate, and the Executive
will not otherwise use the Company’s trade secrets to interfere with, disrupt or attempt to disrupt the business relationships,
contractual or otherwise, between the Company or any Affiliate of the Company, on the one hand, and any of its or their customers, suppliers,
vendors, lessors, licensors, joint venturers, associates, officers, employees, consultants, managers, partners, members or investors,
on the other hand.

 

6.5          Cooperation.
Following the Executive’s last day of employment by the Company, the Executive shall reasonably cooperate with the Company and its
Affiliates in connection with the transition of the Executive’s duties, with respect to any internal or governmental investigation
or administrative, regulatory, arbitral or judicial proceeding involving the Company and any Affiliates with respect to matters relating
to the Executive’s employment with, or service as a member of the board of directors of the Company or any Affiliate, and with respect
to any audit of the financial statements of the Company or any Affiliate with respect to the period of time when the Executive was employed
by the Company or any Affiliate. The Company will reimburse the Executive for any expenses that he reasonably incurs in connection with
such cooperation.

 

6.6          Understanding
of Covenants. The Executive acknowledges that, in the course of his employment with the Company
and/or its Affiliates and their predecessors, he has become familiar, or will become familiar with the Company’s and its Affiliates’
and their predecessors’ trade secrets and with other confidential and proprietary information concerning the Company, its Affiliates
and their respective predecessors and that his services have been and will be of special, unique and extraordinary value to the Company
and its Affiliates. The Executive agrees that the foregoing covenants set forth in this Section 6 (together, the “Restrictive
Covenants”) are reasonable and necessary to protect the Company’s and its Affiliates’ trade secrets and other confidential
and proprietary information, good will, stable workforce, and customer relations.

 

Without limiting the generality of the Executive’s
agreement in the preceding paragraph, the Executive (i) represents that he is familiar with and has carefully considered the Restrictive
Covenants, (ii) represents that he is fully aware of his obligations hereunder, (iii) agrees to the reasonableness of the
length of time, scope and geographic coverage, as applicable, of the Restrictive Covenants, (iv) agrees that the Company and its
Affiliates currently conducts business throughout the continental United States and Canada, and (v) agrees that the Restrictive Covenants
will continue in effect for the applicable periods set forth above in this Section 6 regardless of whether the Executive is then
entitled to receive severance pay or benefits from the Company. The Executive understands that the Restrictive Covenants may limit his
ability to earn a livelihood in a business similar to the business of the Company and any of its Affiliates, but he nevertheless believes
that he has received and will receive sufficient consideration and other benefits as an employee of the Company and as otherwise provided
hereunder or as described in the recitals hereto to clearly justify such restrictions which, in any event (given his education, skills
and ability), the Executive does not believe would prevent him from otherwise earning a living. The Executive agrees that the Restrictive
Covenants do not confer a benefit upon the Company disproportionate to the detriment of the Executive.

 

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6.7          Enforcement.
The Executive agrees that the Executive’s services are unique and that he has access to Confidential Information and Work Product.
Accordingly, without limiting the generality of Section 17, the Executive agrees that a breach by the Executive of any of the covenants
in this Section 6 may cause immediate and irreparable harm to the Company that would be difficult or impossible to measure, and
that damages to the Company for any such injury would therefore be an inadequate remedy for any such breach. Therefore, the Executive
agrees that in the event of any breach or threatened breach of any provision of this Section 6, the Company shall be entitled, in
addition to and without limitation upon all other remedies the Company may have under this Agreement, at law or otherwise, to seek specific
performance, injunctive relief and/or other appropriate relief (without posting any bond or deposit) in order to enforce or prevent any
violations of the provisions of this Section 6, or require the Executive to account for and pay over to the Company all compensation,
profits, moneys, accruals, increments or other benefits derived from or received as a result of any transactions constituting a breach
of this Section 6 if and when final judgment of a court of competent jurisdiction or arbitrator, as applicable, is so entered against
the Executive. The Executive further agrees that the applicable period of time any Restrictive Covenant is in effect following the Severance
Date, as determined pursuant to the foregoing provisions of this Section 6, shall be extended by the same amount of time that Executive
is in breach of any Restrictive Covenant following the Severance Date.

 

7.            Withholding
Taxes. Notwithstanding anything else herein to the contrary, the Company may withhold (or
cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such federal,
state and local income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation. Except
for such withholding rights, the Executive is solely responsible for any and all tax liability that may arise with respect to the compensation
provided under or pursuant to this Agreement.

 

8.            Successors
and Assigns.

 

(a)           This
Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise
than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s
legal representatives.

 

(b)           This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. Without limiting the generality
of the preceding sentence, the Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in
this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor or assignee, as applicable, which
assumes and agrees to perform this Agreement by operation of law or otherwise.

 

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9.            Number
and Gender; Examples. Where the context requires, the singular shall include the plural,
the plural shall include the singular, and any gender shall include all other genders. Where specific language is used to clarify by example
a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction
of the general statement to which it relates.

 

10.          Section Headings.
The section headings, and titles of paragraphs and subparagraphs contained in this Agreement
are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or
interpretation thereof.

 

11.          Governing
Law. This Agreement will be governed by and construed in accordance with the laws of the
state of California, without giving effect to any choice of law or conflicting provision or rule (whether of the state of
California or any other jurisdiction) that would cause the laws of any jurisdiction other than the state of California to
be applied. In furtherance of the foregoing, the internal law of the state of California will control the interpretation and construction
of this Agreement, even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other
jurisdiction would ordinarily apply.

 

12.          Severability.
It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced
to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly,
if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction or determined by an arbitrator
pursuant to Section 16 to be invalid, prohibited or unenforceable under any present or future law, and if the rights and obligations
of any party under this Agreement will not be materially and adversely affected thereby, such provision, as to such jurisdiction, shall
be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision
in any other jurisdiction, and to this end the provisions of this Agreement are declared to be severable; furthermore, in lieu of such
invalid or unenforceable provision there will be added automatically as a part of this Agreement, a legal, valid and enforceable provision
as similar in terms to such invalid or unenforceable provision as may be possible. Notwithstanding the foregoing, if such provision could
be more narrowly drawn (as to geographic scope, period of duration or otherwise) so as not to be invalid, prohibited or unenforceable
in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement
or affecting the validity or enforceability of such provision in any other jurisdiction.

 

13.          Entire
Agreement. This Agreement embodies the entire agreement of the parties hereto respecting
the matters within its scope. This Agreement supersedes all prior and contemporaneous agreements of the parties hereto that directly or
indirectly bears upon the subject matter hereof. Any prior negotiations, correspondence, agreements, proposals or understandings relating
to the subject matter hereof shall be deemed to have been merged into this Agreement, and to the extent inconsistent herewith, such negotiations,
correspondence, agreements, proposals, or understandings shall be deemed to be of no force or effect. There are no representations, warranties,
or agreements, whether express or implied, or oral or written, with respect to the subject matter hereof, except as expressly set forth
herein.

 

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14.          Modifications.
This Agreement may not be amended, modified or changed (in whole or in part), except by a formal,
definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

 

15.          Waiver.
Neither the failure nor any delay on the part of a party to exercise any right, remedy, power
or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power
or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any
right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with
respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted
such waiver.

 

16.          Arbitration.
Except as provided in Sections 6.7 and 17, any non-time barred, legally actionable controversy
or claim arising out of or relating to this Agreement, its enforcement, arbitrability or interpretation, or because of an alleged breach,
default, or misrepresentation in connection with any of its provisions, or any other non-time barred, legally actionable controversy or
claim arising out of or relating to the Executive’s employment or association with the Company or termination of the same, including,
without limiting the generality of the foregoing, any alleged violation of state or federal statute, common law or constitution, shall
be submitted to individual, final and binding arbitration, to be held in Los Angeles County, California, before a single arbitrator selected
from Judicial Arbitration and Mediation Services, Inc. (“JAMS”), in accordance with the then-current JAMS Arbitration
Rules and Procedures for employment disputes, as modified by the terms and conditions in this Section (which may be found at
www.jamsadr.com under the Rules/Clauses tab). The parties will select the arbitrator by mutual agreement or, if the parties cannot agree,
then by striking from a list of qualified arbitrators supplied by JAMS from their labor and employment law panel. Final resolution of
any dispute through arbitration may include any remedy or relief that is provided for through any applicable state or federal statutes,
or common law. Statutes of limitations shall be the same as would be applicable were the action to be brought in court. The arbitrator
selected pursuant to this Agreement may order such discovery as is necessary for a full and fair exploration of the issues and dispute,
consistent with the expedited nature of arbitration. At the conclusion of the arbitration, the arbitrator shall issue a written decision
that sets forth the essential findings and conclusions upon which the arbitrator’s award or decision is based. Any award or relief
granted by the arbitrator under this Agreement shall be final and binding on the parties to this Agreement and may be enforced by any
court of competent jurisdiction. The Company will pay those arbitration costs that are unique to arbitration, including the arbitrator’s
fee (recognizing that each side bears its own deposition, witness, expert and attorneys’ fees and other expenses to the same extent
as if the matter were being heard in court). If, however, any party prevails on a statutory claim, which affords the prevailing party
attorneys’ fees and costs, then the arbitrator may award reasonable fees and costs to the prevailing party. The arbitrator may not
award attorneys’ fees to a party that would not otherwise be entitled to such an award under the applicable statute. The arbitrator
shall resolve any dispute as to the reasonableness of any fee or cost. Except as provided in Section 6.7 and 17, the parties acknowledge
and agree that they are hereby waiving any rights to trial by jury or a court in any action or proceeding brought by either of the parties
against the other in connection with any matter whatsoever arising out of or in any way connected with this Agreement or the Executive’s
employment.

 

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17.          Remedies.
Each of the parties to this Agreement and any such person or entity granted rights hereunder
whether or not such person or entity is a signatory hereto shall be entitled to enforce its rights under this Agreement specifically to
recover damages and costs for any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The
parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement
and that each party may in its sole discretion apply to any court of law or equity of competent jurisdiction for provisional injunctive
or equitable relief and/or other appropriate equitable relief (without posting any bond or deposit) in order to enforce or prevent any
violations of the provisions of this Agreement. Each party shall be responsible for paying its own attorneys’ fees, costs and other
expenses pertaining to any such legal proceeding and enforcement regardless of whether an award or finding or any judgment or verdict
thereon is entered against either party.

 

18.          Notices.
Any notice provided for in this Agreement must be in writing and must be either personally delivered,
transmitted via telecopier, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier
service (charges prepaid) to the recipient at the address below indicated or at such other address or to the attention of such other person
as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder
and received when delivered personally, when received if transmitted via telecopier, five days after deposit in the U.S. mail and one
day after deposit with a reputable overnight courier service.

 

if to the Company:

 

Tilt
Holdings, Inc.

2801 E Camelback Rd, Suite 180

Phoenix, AZ 85016

Attention: Tim Conder 

Or [ * * * ]

 

if to the Executive, to the address most recently
on file in the payroll records of the Company.

 

19.          Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument.
This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of
all of the parties reflected hereon as signatories. Photographic copies of such signed counterparts may be used in lieu of the originals
for any purpose.

 

20.          Legal
Counsel; Mutual Drafting. Each party recognizes that this is a legally binding contract and
acknowledges and agrees that they have had the opportunity to consult with legal counsel of their choice. Each party has cooperated in
the drafting, negotiation and preparation of this Agreement. Hence, in any construction to be made of this Agreement, the same shall not
be construed against either party on the basis of that party being the drafter of such language. The Executive agrees and acknowledges
that he has read and understands this Agreement, is entering into it freely and voluntarily, and has been advised to seek counsel prior
to entering into this Agreement and has had ample opportunity to do so.

 

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21.          Section 409A.

 

(a)           It
is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the Code (including
the Treasury regulations and other published guidance relating thereto) (“Code Section 409A”) so as not to subject
the Executive to payment of any additional tax, penalty or interest imposed under Code Section 409A. The provisions of this Agreement
shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 409A
yet preserve (to the nearest extent reasonably possible) the intended benefit payable to the Executive. Any installment payments provided
for in this Agreement shall be treated as a series of separate payments for purposes of Code Section 409A.

 

(b)           If
the Executive is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the
date of the Executive’s Separation from Service, the Executive shall not be entitled to any payment or benefit pursuant to Section 5.3(b) or
(c) until the earlier of (i) the date which is six (6) months after his or her Separation from Service for any reason other
than death, or (ii) the date of the Executive’s death. The provisions of this Section 21(b) shall only apply if,
and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A. Any amounts otherwise
payable to the Executive upon or in the six (6) month period following the Executive’s Separation from Service that are not
so paid by reason of this Section 21(b) shall be paid (without interest) as soon as practicable (and in all events within thirty
(30) days) after the date that is six (6) months after the Executive’s Separation from Service (or, if earlier, as soon as
practicable, and in all events within thirty (30) days, after the date of the Executive’s death).

 

(c)           To
the extent that any benefits pursuant to Section 5.3(b)(ii) or reimbursements pursuant to Section 4.2 are taxable to the
Executive, any reimbursement payment due to the Executive pursuant to any such provision shall be paid to the Executive on or before the
last day of the Executive’s taxable year following the taxable year in which the related expense was incurred. The benefits and
reimbursements pursuant to such provisions are not subject to liquidation or exchange for another benefit and the amount of such benefits
and reimbursements that the Executive receives in one taxable year shall not affect the amount of such benefits or reimbursements that
the Executive receives in any other taxable year.

 

[The
remainder of this page has intentionally been left blank.]

 

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IN
WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the Effective Date.

 

	 	“COMPANY”
	 	 
	 	TILT Holdings, Inc.
	 	a British Columbia corporation
	 	 
	 	By:	/s/ Mark Scatterday
	 	 	Name:	Mark Scatterday
	 	 	Title:	Chief Executive Officer
	 	 
	 	“EXECUTIVE”
	 	 
	 	By:	/s/ Marshall Horowitz
	 	 	Name:	Marshall Horowitz

 

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EXHIBIT A

 

FORM OF GENERAL RELEASE AGREEMENT

 

1.            Release.
Marshall Horowitz (“Executive”), on his own behalf and on behalf of his descendants, dependents, heirs, executors,
administrators, assigns and successors, and each of them, hereby acknowledges full and complete satisfaction of and releases and discharges
and covenants not to sue Tilt Holdings, Inc. (the “Company”), its divisions, subsidiaries, parents, or
affiliated corporations, past and present, and each of them, as well as its and their assignees, successors, directors, officers, stockholders,
partners, representatives, attorneys, agents or employees, past or present, or any of them (individually and collectively, “Releasees”),
from and with respect to any and all claims, agreements, obligations, demands and causes of action, known or unknown, suspected or unsuspected,
arising out of or in any way connected with Executive’s employment or any other relationship with or interest in the Company or
the termination thereof, including without limiting the generality of the foregoing, any claim for severance pay, profit sharing, bonus
or similar benefit, pension, retirement, life insurance, health or medical insurance or any other fringe benefit, or disability, or any
other claims, agreements, obligations, demands and causes of action, known or unknown, suspected or unsuspected resulting from any act
or omission by or on the part of Releasees committed or omitted prior to the date of this General Release Agreement (this “Agreement”)
set forth below, including, without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964,
the Americans with Disabilities Act, the Family and Medical Leave Act, or any other federal, state or local law, regulation, ordinance,
constitution or common law (collectively, the “Claims”); provided, however, that the foregoing release does not apply
to any obligation of the Company to Executive pursuant to any of the following: (1) Section 5.3 of the Employment Agreement
dated as of July 29, 2020 by and between the Company and Executive (the “Employment Agreement”); (2) any
equity-based awards previously granted by the Company to Executive, to the extent that such awards continue after the termination of Executive’s
employment with the Company in accordance with the applicable terms of such awards; (3) any right to indemnification that Executive
may have pursuant to the Company’s bylaws, its corporate charter or under any written indemnification agreement with the Company
(or any corresponding provision of any subsidiary or affiliate of the Company) with respect to any loss, damages or expenses (including
but not limited to attorneys’ fees to the extent otherwise provided) that Executive may in the future incur with respect to his
service as an employee, officer or director of the Company or any of its subsidiaries or affiliates; (4) with respect to any rights
that Executive may have to insurance coverage for such losses, damages or expenses under any Company (or subsidiary or affiliate) directors
and officers liability insurance policy; (5) any rights to continued medical and dental coverage that Executive may have under COBRA;
or (6) any rights to payment of benefits that Executive may have under a retirement plan sponsored or maintained by the Company that
is intended to qualify under Section 401(a) of the Internal Revenue Code of 1986, as amended. In addition, this release does
not cover any Claim that cannot be so released as a matter of applicable law. Notwithstanding anything to the contrary herein, nothing
in this Agreement prohibits Executive from filing a charge with or participating in an investigation conducted by any state or federal
government agencies. However, Executive does waive, to the maximum extent permitted by law, the right to receive any monetary or other
recovery, should any agency or any other person pursue any claims on Executive’s behalf arising out of any claim released pursuant
to this Agreement. For clarity, and as required by law, such waiver does not prevent Executive from accepting a whistleblower award from
the Securities and Exchange Commission pursuant to Section 21F of the Securities Exchange Act of 1934, as amended. Executive acknowledges
and agrees that he has received any and all leave and other benefits that he has been and is entitled to pursuant to the Family and Medical
Leave Act of 1993.

 

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2.            Acknowledgement
of Payment of Wages. Except for accrued vacation (which the parties agree totals approximately [____] days of pay) and salary
for the current pay period, Executive acknowledges that he has received all amounts owed for his regular and usual salary (including,
but not limited to, any bonus, incentive or other wages), and usual benefits through the date of this Agreement.

 

3.            Waiver
of Unknown Claims. This Agreement is intended to be effective as a general release of and bar to each and every Claim hereinabove
specified. Accordingly, Executive hereby expressly waives any rights and benefits conferred by Section 1542 of the California Civil
Code and any similar provision of any other applicable state law as to the Claims. Section 1542 of the California Civil Code provides:

 

“A GENERAL RELEASE DOES NOT EXTEND TO A
CLAIM WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY
HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

Executive acknowledges that he later may discover
claims, demands, causes of action or facts in addition to or different from those which Executive now knows or believes to exist with
respect to the subject matter of this Agreement and which, if known or suspected at the time of executing this Agreement, may have materially
affected its terms. Nevertheless, Executive hereby waives, as to the Claims, any claims, demands, and causes of action that might arise
as a result of such different or additional claims, demands, causes of action or facts.

 

4.            ADEA
Waiver. Executive expressly acknowledges and agrees that by entering into this Agreement, he is waiving any and all rights or claims
that he may have arising under the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”), and that
this waiver and release is knowing and voluntary. Executive and the Company agree that this waiver and release does not apply to any rights
or claims that may arise under the ADEA after the date Executive signs this Agreement. Executive further expressly acknowledges and agrees
that:

 

(a)           In
return for this Agreement, he will receive consideration beyond that which he was already entitled to receive before executing this Agreement;

 

(b)           He
is hereby advised in writing by this Agreement to consult with an attorney before signing this Agreement;

 

(c)           He
was given a copy of this Agreement on [_________, 2020], and informed that he had [twenty-one (21)] days within
which to consider this Agreement and that if he wished to execute this Agreement prior to the expiration of such [21]-day
period he will have done so voluntarily and with full knowledge that he is waiving his right to have [twenty-one (21)] days
to consider this Agreement; and that such [twenty-one (21)] day period to consider this Agreement would not and will not
be re-started or extended based on any changes, whether material or immaterial, that are or were made to this Agreement in such [twenty-one
(21)] day period after he received it;

 

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(d)           He
was informed that he had seven (7) days following the date of execution of this Agreement in which to revoke this Agreement, and
this Agreement will become null and void if Executive elects revocation during that time. Any revocation must be in writing and must be
received by the Company during the seven-day revocation period. In the event that Executive exercises this revocation right, neither the
Company nor Executive will have any obligation under this Agreement. Any notice of revocation should be sent by Executive in writing to
the Company (attention Chris Hoban), 1385 Cambridge Street, Cambridge, MA 02139, so that it is received within the seven-day period following
execution of this Agreement by Executive.

 

(e)           Nothing
in this Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver
under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless specifically authorized by federal
law.

 

5.             No
Transferred Claims. Executive represents and warrants to the Company that he has not heretofore assigned or transferred to any person
not a party to this Agreement any released matter or any part or portion thereof.

 

6.             Return
of Property. Executive represents and covenants that he has returned to the to the Company (a) all physical, computerized, electronic
or other types of records, documents, proposals, notes, lists, files and any and all other materials, including computerized electronic
information, that refer, relate or otherwise pertain to the Company or any of its Affiliates (as defined in the Employment Agreement)
that were in Executive’s possession, subject to Executive’s control or held by Executive for others; and (b) all property
or equipment that Executive has been issued by the Company or any of its Affiliates during the course of his employment or property or
equipment that Executive otherwise possessed, including any keys, credit cards, office or telephone equipment, computers (and any software,
power cords, manuals, computer bag and other equipment that was provided to Executive with any such computers), tablets, smartphones,
and other devices. Executive acknowledges that he is not authorized to retain any physical, computerized, electronic or other types of
copies of any such physical, computerized, electronic or other types of records, documents, proposals, notes, lists, files or materials,
and is not authorized to retain any property or equipment of the Company or any of its Affiliates. Executive further agrees that Executive
will immediately forward to the Company (and thereafter destroy any electronic copies thereof) any business information relating to the
Company or any of its Affiliates that has been or is inadvertently directed to Executive following the date of the termination of Executive’s
employment.

 

7.             Miscellaneous.
The following provisions shall apply for purposes of this Agreement:

 

(a)           Number
and Gender. Where the context requires, the singular shall include the plural, the plural shall include the singular, and any gender
shall include all other genders.

 

(b)           Section Headings.
The section headings, and titles of paragraphs and subparagraphs contained in, this Agreement are for the purpose of convenience only,
and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof.

 

    21

     

    

 

(c)           Governing
Law. This Agreement, and all questions relating to its validity, interpretation, performance and enforcement, as well as the legal
relations hereby created between the parties hereto, shall be governed by and construed under, and interpreted and enforced in accordance
with, the laws of the State of California notwithstanding any other conflict of law provision to the contrary.

 

(d)           Severability.
If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications
of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement
are declared to be severable.

 

(e)           Modifications.
This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly
referring to this Agreement, which agreement is executed by both of the parties hereto.

 

(f)            Waiver.
No waiver of any breach of any term or provision of this Agreement shall be construed to be, nor shall be, a waiver of any other breach
of this Agreement. No waiver shall be binding unless in writing and signed by the party waiving the breach.

 

(g)           Arbitration.
Any controversy arising out of or relating to this Agreement shall be submitted to arbitration in accordance with the arbitration provisions
of the Employment Agreement.

 

(h)           Counterparts.
This Agreement may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original. Photographic
copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

[Remainder
of page intentionally left blank]

 

    22

     

    

 

The undersigned
have read and understand the consequences of this Agreement and voluntarily sign it. The undersigned declare under penalty of perjury
under the laws of the State of California that the foregoing is true and correct.

 

EXECUTED this ________ day of ________ 20__.

 

“EXECUTIVE”

 

                                                                                                                                                                                                                                             Marshall
Horowitz

 

EXECUTED this ________ day of ________ 20___,

 

	 	“COMPANY”
	 	 
	 	Tilt Holdings, Inc.]
	 	 
	 	By:	 
	 	 
	 	 
	[Name]	 
	[Title]	 

 

    23Exhibit 10.54

 

EQUITY FINANCING AGREEMENT

 

This EQUITY FINANCING AGREEMENT (the “Agreement”),
dated as of May 27, 2022 (the “Execution Date”), is entered into by and between DarkPulse, Inc., a Delaware corporation with
its principal executive office at 1345 Avenue of Americas, 2nd Floor., New York, NY 10105 (the “Company”),
and GHS Investments LLC, a Nevada limited liability company, with offices at 420 Jericho Turnpike, Suite 102, Jericho, NY 11753 (the “Investor”).

 

RECITALS:

 

WHEREAS, the parties desire
that, upon the terms and subject to the conditions contained herein, the Investor shall invest up to Seventy Million Dollars ($70,000,000)
(the "Commitment Amount"), over the course of twenty-four (24) months immediately following the Effective Date (the “Contract
Period”) to purchase the Company’s common stock, par value $0.0001 per share (the “Common Stock”);

 

WHEREAS, such investments
will be made in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as
amended (the “1933 Act”), Rule 506(b) of Regulation D promulgated by the SEC under the 1933 Act, and/or upon such other
exemption from the registration requirements of the 1933 Act as may be available with respect to any or all of the investments in Common
Stock to be made hereunder; and

 

WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement substantially
in the form attached hereto as Exhibit A (the “Registration Rights Agreement”) pursuant to which the Company
has agreed to provide certain registration rights under the 1933 Act, and the rules and regulations promulgated thereunder, and applicable
state securities laws.

 

NOW THEREFORE, in consideration
of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants and agreements set forth hereafter,
and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Investor hereby
agree as follows:

 

SECTION I.

DEFINITIONS

 

For all purposes of and under
this Agreement, the following terms shall have the respective meanings below, and such meanings shall be equally applicable to the singular
and plural forms of such defined terms.

 

“1933 Act” shall
have the meaning set forth in the recitals.

 

“1934 Act” shall
mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations of the SEC thereunder,
all as the same will then be in effect.

 

“Affiliate” shall
have the meaning set forth in Section 5.7.

 

“Agreement” shall
have the meaning set forth in the preamble.

 

“Certificate of Incorporation”
shall have the meaning set forth in Section 4.3.

 

“By-laws” shall have
the meaning set forth in Section 4.3.

 

 

 

 

    	 	1	 

     

    

 

“Closing” shall have the meaning set forth
in Section 2.4.

 

“Closing Date” shall
have the meaning set forth in Section 2.4.

 

“Common Stock” shall
have the meaning set forth in the recitals.

 

“Control” or “Controls”
shall have the meaning set forth in Section 5.7.

 

“Effective Date”
shall mean the date the SEC declares effective under the 1933 Act the Registration Statement covering the Securities.

 

“Environmental Laws”
shall have the meaning set forth in Section 4.13.

 

“Execution Date”
shall have the meaning set forth in the preamble.

 

“Indemnified Liabilities”
shall have the meaning set forth in Section 10.

 

“Indemnitees” shall
have the meaning set forth in Section 10.

 

“Indemnitor” shall
have the meaning set forth in Section 10.

 

“Ineffective Period”
shall mean any period of time that the Registration Statement or any supplemental registration statement becomes ineffective or unavailable
for use for the sale or resale, as applicable, of any or all of the Registrable Securities (as defined in the Registration Rights Agreement)
for any reason (or in the event the prospectus under either of the above is not current and deliverable) during any time period required
under the Registration Rights Agreement.

 

“Investor” shall
have the meaning set forth in the preamble.

 

“Knowledge,” as it
pertains to the Company, shall mean actual knowledge of the Company’s officers and directors and the officers and directors of the
Company’s Subsidiaries.

 

“Market Price” shall
mean the lowest traded price for the Company's common stock during the Pricing Period.

 

“Material Adverse Effect”
shall have the meaning set forth in Section 4.1.

 

“Maximum Common Stock Issuance”
shall have the meaning set forth in Section 2.5.

 

“Open Period” shall
mean the period beginning on and including the Trading Day immediately following the Effective Date and ending on the termination of the
Agreement in accordance with Section 8.

 

“Pricing Period”
shall mean the five (5) consecutive Trading Days preceding the relevant Put Notice Date.

 

“Principal Market”
shall mean the New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
Market or the OTC Markets, whichever is the principal market on which the Common Stock is listed.

 

 

 

 

    	 	2	 

     

    

 

“Prospectus” shall
mean the prospectus, preliminary prospectus and supplemental prospectus used in connection with the Registration Statement.

 

“Purchase Amount”
shall mean the total amount being paid by the Investor on a particular Closing Date to purchase the Securities.

 

“Purchase Price”
shall mean ninety-two percent (92%) of the Market Price.

 

“Put” shall mean
the Company is entitled to request equity investments (the “Put” or “Puts”) by the Investor, pursuant to which
the Company will issue Common Stock to the Investor with an aggregate Purchase Price equal to the value of the Put, subject to a price
per share calculation based on the Market Price.

 

“Put Amount” shall
mean the total dollar amount requested by the Company pursuant to an applicable Put. The timing and amounts of each Put shall be at the
discretion of the Company. The maximum dollar amount of each Put will not exceed two hundred percent (200%) of the average daily trading
dollar volume for the Common Stock during the ten (10) consecutive Trading Days preceding the Put Notice Date. No Put will be made in
an amount equaling less than ten thousand dollars ($10,000) or greater than three million dollars ($3,000,000). Puts are further limited
to the Investor owning no more than 4.99% of the outstanding stock of the Company at any given time.

 

“Put Notice” shall
mean a written notice sent to the Investor by the Company stating the Put Amount in U.S. dollars that the Company intends to sell to the
Investor pursuant to the terms of the Agreement and stating the current number of Shares issued and outstanding on such date.

 

“Put Notice Date”
shall mean the Trading Day on which the Investor receives a Put Notice.

 

“Put Restriction”
shall mean a minimum of five (5) Trading Days following a Closing Date. During this time, the Company shall not be entitled to deliver
another Put Notice.

 

“Put Shares” shall
have the meaning set forth in Section 2.4.

 

“Registered Offering Transaction
Documents” shall mean this Agreement and the Registration Rights Agreement between the Company and the Investor as of the date
herewith.

 

“Registration Rights Agreement”
shall have the meaning set forth in the recitals.

 

“Registration Statement”
means the registration statement of the Company filed under the 1933 Act covering the Securities issuable hereunder.

 

“Related Party” shall
have the meaning set forth in Section 5.7.

 

“Resolution” shall
have the meaning set forth in Section 7.5.

 

“SEC” shall mean
the U.S. Securities and Exchange Commission.

 

“SEC Documents” shall
have the meaning set forth in Section 4.6.

 

“Securities” shall
mean the shares of Common Stock issued pursuant to the terms of this Agreement.

 

“Settlement Date”
shall have the meaning set forth in Section 2.4.

 

 

 

 

    	 	3	 

     

    

 

“Shares” shall mean
the shares of the Common Stock.

 

“Subsidiaries” shall
have the meaning set forth in Section 4.1.

 

“Trading Day” shall
mean any day on which the Principal Market for the Common Stock is open for trading, from the hours of 9:30 am until 4:00 pm.

 

“Transaction Costs” the
Company shall bear the costs of the Registration Statement. Concurrently with the Closing of the initial Put, the Company shall deposit
ten thousand dollars ($10,000) with the Investor’s designated legal counsel to offset the Investor’s legal costs.

 

“Waiting Period”
shall have the meaning set forth in Section 2.2.

 

SECTION II

PURCHASE AND SALE OF COMMON STOCK

 

2.1              
PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set forth herein, the Company shall issue and sell
to the Investor, and the Investor shall purchase from the Company, up to that number of Shares having an aggregate Purchase Price of Seventy
Million Dollars ($70,000,000).

 

2.2              
DELIVERY OF PUT NOTICES. Subject to the terms and conditions herein, and from time to time during the Open Period, the Company
may, in its sole discretion, deliver a Put Notice to the Investor which states the dollar amount (designated in U.S. Dollars), which the
Company intends to sell to the Investor on a Closing Date (the “Put”). The Put Notice shall be in the form attached
hereto as Exhibit C and incorporated herein by reference. The Purchase Price of the Put shall be ninety-two percent (92%) of the
Market Price. During the Open Period, the Company shall not be entitled to submit a Put Notice until after the previous Closing has been
completed. There will be a minimum of five (5) trading days between Put Notices and a Closing Date. No Put will be made in an amount equaling
less than ten thousand dollars ($10,000) or greater than three million dollars ($3,000,000).

 

2.3              
CONDITIONS TO INVESTOR’S OBLIGATION TO PURCHASE SHARES. Notwithstanding anything to the contrary in this Agreement,
the Company shall not be entitled to deliver a Put Notice and the Investor shall not be obligated to purchase any Shares at a Closing
unless each of the following conditions are satisfied:

 

	 	i.	a Registration Statement shall have been declared effective and shall remain effective and available for the resale of all the Registrable
Securities (as defined in the Registration Rights Agreement) at all times until the Closing with respect to the subject Put Notice;
	 	 	 
	 	ii.	at all times during the period beginning on the related Put Notice Date and ending on and including the related Closing Date, the Common
Stock shall have been listed or quoted for trading on the Principal Market and shall not have been suspended from trading thereon for
a period of two (2) consecutive Trading Days during the Open Period and the Company shall not have been notified of any pending or threatened
proceeding or other action to suspend the trading of the Common Stock;
	 	 	 
	 	iii.	the Company has complied with its obligations and is otherwise not in breach of or in default under, this Agreement, the Registration
Rights Agreement or any other agreement executed between the parties, which has not been cured prior to delivery of the Put Notice;
	 	 	 
	 	iv.	no injunction shall have been issued and remain in force, or action commenced by a governmental authority which has not been stayed or
abandoned, prohibiting the purchase or the issuance of the Securities; and
	 	 	 
	 	v.	the issuance of the Securities will not violate any requirements of the Principal Market.

 

 

 

 

    	 	4	 

     

    

 

If any of the events described
in clauses (i) through (v) above occurs during a Pricing Period, then the Investor shall have no obligation to purchase the Put Amount
of Common Stock set forth in the applicable Put Notice.

 

2.4              
MECHANICS OF PURCHASE OF SHARES BY INVESTOR. Subject to the satisfaction of the conditions set forth in Sections 2.5, 7
and 8 of this Agreement, at the end of the Pricing Period, the Purchase Price shall be established and an amount of Shares equaling one
hundred and eighteen percent (118%) of the Put Amount (the “Put Shares”) shall be delivered to the Investor’s
broker for a particular Put.

 

The Closing of a Put shall occur upon the first Trading Day following the confirmation of receipt and approval for trading by Investor's
broker of the Put Shares, whereby the Company shall have caused the Transfer Agent to electronically transmit, prior to the applicable
Closing Date, the applicable Put Shares by crediting the account of the Investor's broker with DTC through its Deposit Withdrawal Agent
Commission ("DWAC") system. The Investor shall deliver the Purchase Amount specified in the Put Notice, less deposit
and clearing fees, by wire transfer of immediately available funds to an account designated by the Company if the aforementioned receipt
and approval are confirmed before 9:30 AM ET or on the following Trading Day if receipt and approval by the Investor's broker is made
after 9:30 AM ET ("Closing Date" or "Closing"). In addition, on or prior to such Closing Date, each
of the Company and Investor shall deliver to each other all documents, instruments and writings required to be delivered or reasonably
requested by either of them pursuant to this Agreement in order to implement and effect the transactions contemplated herein.

 

2.5              
OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the contrary, if during the Open Period
the Company becomes listed on an exchange which limits the number of shares of Common Stock that may be issued without shareholder approval,
then the number of Shares issuable by the Company and purchasable by the Investor, shall not exceed that number of the shares of Common
Stock that may be issuable without shareholder approval (the “Maximum Common Stock Issuance”). If such issuance of
shares of Common Stock could cause a delisting on the Principal Market then the Maximum Common Stock Issuance shall first be approved
by the Company’s shareholders in accordance with applicable law and the By-laws and the Certificate of Incorporation of the Company.
The parties understand and agree that the Company’s failure to seek or obtain such shareholder approval shall in no way adversely
affect the validity and due authorization of the issuance and sale of Securities or the Investor’s obligation in accordance with
the terms and conditions hereof to purchase a number of Shares in the aggregate up to the Maximum Common Stock Issuance, and that such
approval pertains only to the applicability of the Maximum Common Stock Issuance limitation provided in this Section 2.5.

 

2.6              
LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement, in no event shall the Investor
be entitled to purchase that number of Shares, which when added to the sum of the number of shares of Common Stock beneficially owned
(as such term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the Investor, would exceed 4.99% of the number of shares
of Common Stock outstanding on the Closing Date, as determined in accordance with Rule 13d-1(j) of the 1934 Act.

 

SECTION III

INVESTOR’S REPRESENTATIONS, WARRANTIES
AND COVENANTS

 

The Investor represents and
warrants to the Company, and covenants, that to the best of the Investor's knowledge:

 

3.1              
SOPHISTICATED INVESTOR. The Investor has, by reason of its business and financial experience, such knowledge, sophistication
and experience in financial and business matters and in making investment decisions of this type that it is capable of (I) evaluating
the merits and risks of an investment in the Securities and making an informed investment decision; (II) protecting its own interest;
and (III) bearing the economic risk of such investment for an indefinite period of time.

 

3.2              
AUTHORIZATION; ENFORCEMENT. This Agreement has been duly and validly authorized, executed and delivered on behalf of the
Investor and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as
to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and
other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

 

 

 

    	 	5	 

     

    

 

3.3              
SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the provisions of Section 9
of the 1934 Act, and the rules promulgated thereunder, with respect to transactions involving the Common Stock.

 

3.4              
ACCREDITED INVESTOR. Investor is an “Accredited Investor” as that term is defined in Rule 501(a) of Regulation
D of the 1933 Act.

 

3.5              
NO CONFLICTS. The execution, delivery and performance of the Documents by the Investor and the consummation by the Investor
of the transactions contemplated hereby and thereby will not result in a violation of Partnership Agreement or other organizational documents
of the Investor.

 

3.6              
OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to the Company’s business, finance and operations
which it has requested. The Investor has had an opportunity to discuss the business, management and financial affairs of the Company with
the Company’s management.

 

3.7              
INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own account for investment purposes and not with
a view towards distribution and agrees to resell or otherwise dispose of the Securities solely in accordance with the registration provisions
of the 1933 Act (or pursuant to an exemption from such registration provisions).

 

3.8              
GOOD STANDING. The Investor is a limited liability company, duly organized, validly existing and in good standing in the
State of Nevada.

 

3.9              
TAX LIABILITIES. The Investor understands that it is liable for its own tax liabilities.

 

3.10           
REGULATION M. The Investor will comply with Regulation M under the 1934 Act, if applicable.

 

3.11           
PROHIBITED TRADING. No short sales shall be permitted by the Investor or
its affiliates during the period commencing on the Execution Date and continuing through the termination of this Agreement.

 

SECTION IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except as set forth in the
Schedules attached hereto, or as disclosed on the Company’s SEC Documents, the Company represents and warrants to the Investor that:

 

4.1              
ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and validly existing in good standing under
the laws of the State of Delaware, and has the requisite corporate power and authorization to own its properties and to carry on its business
as now being conducted. Both the Company and the companies it owns or controls (“Subsidiaries”) are duly qualified
to do business and are in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted
by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have
a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means a change, event, circumstance,
effect or state of facts that has had or is reasonably likely to have, a material adverse effect on the business, properties, assets,
operations, results of operations, financial condition or prospects of the Company and its Subsidiaries, if any, taken as a whole, or
on the transactions contemplated hereby or by the agreements and instruments to be entered into in connection herewith, or on the authority
or ability of the Company to perform its obligations under the Registered offering Transaction Documents.

 

 

 

 

    	 	6	 

     

    

 

4.2              
AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS.

 

		i.	The Company has the requisite corporate power and authority to enter into and perform this Agreement and
the Registration Rights Agreement (collectively, the “Registered Offering Transaction Documents”), and to issue the
Securities in accordance with the terms hereof and thereof.

 

		ii.	The execution and delivery of the Registered Offering Transaction Documents by the Company and the consummation
by it of the transactions contemplated hereby and thereby, including without limitation the issuance of the Securities pursuant to this
Agreement, have been duly and validly authorized by the Company’s Board of Directors and no further consent or authorization is
required by the Company, its Board of Directors, or its shareholders.

 

		iii.	The Registered Offering Transaction Documents have been duly and validly executed and delivered by the
Company.

 

		iv.	The Registered Offering Transaction Documents constitute the valid and binding obligations of the Company
enforceable against the Company in accordance with their terms, except as such enforceability may be limited by general principles of
equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally,
the enforcement of creditors’ rights and remedies.

 

4.3              
CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of: (i) 20,000,000,000 shares
of the Common Stock, par value $0.0001 per share, of which as of the date hereof 4,976,669,407 shares are issued and outstanding; and,
(ii) 2,000,000 shares of Preferred Stock, par value $0.01 of which as of the date hereof 88,235 shares of Preferred Stock are issued and
outstanding. All of such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and nonassessable.
Except as disclosed in the Company’s publicly available filings with the SEC and as will be disclosed in the Registration Statement,
and based on the best information available and efforts of the Company’s management, or as otherwise set forth on Schedule 4.3:

 

		i.	no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights
or any liens or encumbrances suffered or permitted by the Company;

 

		ii.	there are no outstanding debt securities;

 

		iii.	there are no outstanding shares of capital stock, options, warrants, scrip, rights to subscribe to, calls
or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company
or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries
is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip,
rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares
of capital stock of the Company or any of its Subsidiaries;

 

		iv.	there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated
to register the sale of any of their securities under the 1933 Act (except the Registration Rights Agreement);

 

		v.	there are no outstanding securities of the Company or any of its Subsidiaries which contain any redemption
or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries
is or may become bound to redeem a security of the Company or any of its Subsidiaries;

 

 

 

 

    	 	7	 

     

    

 

		vi.	there are no securities or instruments containing anti-dilution or similar provisions that will be triggered
by the issuance of the Securities as described in this Agreement;

 

		vii.	the Company does not have any stock appreciation rights or “phantom stock” plans or agreements
or any similar plan or agreement; and

 

		viii.	there is no dispute as to the classification of any shares of the Company’s capital stock.

 

The Company has furnished to
the Investor, or the Investor has had access through EDGAR to, true and correct copies of the Company’s Certificate of Incorporation
and all amendments thereto, as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s
By-laws and all amendments thereto, as in effect on the date hereof (the “By-laws”), and the terms of all securities
convertible into or exercisable for Common Stock and the material rights of the holders thereof in respect thereto.

 

4.4              
ISSUANCE OF SHARES. As of the filing of the Registration Statement the Company will have reserved the amount of Shares included
in the Registration Statement for issuance pursuant to the Registered Offering Transaction Documents, which have been duly authorized
and reserved (subject to adjustment pursuant to the Company’s covenant set forth in Section 5.5 below) pursuant to this Agreement.
Upon issuance in accordance with this Agreement, the Securities will be validly issued, fully paid for and non-assessable and free from
all taxes, liens and charges with respect to the issuance thereof. In the event the Company cannot register a sufficient number of Shares
for issuance pursuant to this Agreement, the Company will use its best efforts to authorize and reserve for issuance the number of Shares
required for the Company to perform its obligations hereunder as soon as reasonably practicable.

 

4.5              
NO CONFLICTS. The execution, delivery and performance of the Registered Offering Transaction Documents by the Company and
the consummation by the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the Certificate
of Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company
or the By-laws; or (ii) conflict with, or constitute a material default (or an event which with notice or lapse of time or both would
become a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material
agreement, contract, indenture mortgage, indebtedness or instrument to which the Company or any of its Subsidiaries is a party, or to
the Company’s knowledge result in a violation of any law, rule, regulation, order, judgment or decree (including United States federal
and state securities laws and regulations and the rules and regulations of the Principal Market or principal securities exchange or trading
market on which the Common Stock is traded or listed) applicable to the Company or any of its Subsidiaries or by which any property or
asset of the Company or any of its Subsidiaries is bound or affected. Neither the Company nor its Subsidiaries is in violation of any
term of, or in default under, the Certificate of Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding
series of preferred stock of the Company or the By-laws or their organizational charter or by-laws, respectively, or any contract, agreement,
mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company
or its Subsidiaries, except for possible conflicts, defaults, terminations, amendments, accelerations, cancellations and violations that
would not individually or in the aggregate have or constitute a Material Adverse Effect. The business of the Company and its Subsidiaries
is not being conducted, and shall not be conducted, in violation of any law, statute, ordinance, rule, order or regulation of any governmental
authority or agency, regulatory or self-regulatory agency, or court, except for possible violations the sanctions for which either individually
or in the aggregate would not have a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under
the 1933 Act or any securities laws of any states, to the Company’s knowledge and except as disclosed in the Company’s publicly
available filings with the SEC, the Company is not required to obtain any consent, authorization, permit or order of, or make any filing
or registration (except the filing of a registration statement as outlined in the Registration Rights Agreement between the parties) with,
any court, governmental authority or agency, regulatory or self-regulatory agency or other third party in order for it to execute, deliver
or perform any of its obligations under, or contemplated by, the Registered Offering Transaction Documents in accordance with the terms
hereof or thereof. All consents, authorizations, permits, orders, filings and registrations which the Company is required to obtain pursuant
to the preceding sentence have been obtained or effected on or prior to the date hereof and are in full force and effect as of the date
hereof. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. The
Company is not, and will not be, in violation of the listing requirements of the Principal Market as in effect on the date hereof and
on each of the Closing Dates and is not aware of any facts which would reasonably lead to delisting of the Common Stock by the Principal
Market in the foreseeable future.

 

 

 

 

    	 	8	 

     

    

 

4.6              
 SEC DOCUMENTS; FINANCIAL STATEMENTS. Within forty-five (45) calendar days of the execution of the Agreement and from the
date thereafter as long as this Agreement is in place, the Company will have filed all reports, schedules, forms, statements and other
documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior
to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents incorporated by reference
therein, and amendments thereto, being hereinafter referred to as the “SEC Documents”). The Company has delivered to
the Investor or its representatives, or they have had access through EDGAR to, true and complete copies of the SEC Documents. As of their
respective filing dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations
of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the
SEC or the time they were amended, if amended, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial
statements have been prepared in accordance with generally accepted accounting principles, by a firm that is a member of the Public Companies
Accounting Oversight Board (“PCAOB”) consistently applied, during the periods involved (except (i) as may be otherwise
indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may
exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the
Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments). No other written information provided by or on behalf of the Company to the Investor
which is not included in the SEC Documents, including, without limitation, information referred to in Section 4.3 of this Agreement,
contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein, in the
light of the circumstance under which they are or were made, not misleading. Neither the Company nor any of its Subsidiaries or any of
their officers, directors, employees or agents have provided the Investor with any material, nonpublic information which was not publicly
disclosed prior to the date hereof and any material, nonpublic information provided to the Investor by the Company or its Subsidiaries
or any of their officers, directors, employees or agents prior to any Closing Date shall be publicly disclosed by the Company prior to
such Closing Date.

 

4.7              
ABSENCE OF CERTAIN CHANGES. Except as otherwise set forth in the SEC Documents, the Company does not intend to change the
business operations of the Company in any material way. The Company has not taken any steps, and does not currently expect to take any
steps, to seek protection pursuant to any bankruptcy law nor does the Company or its Subsidiaries have any knowledge or reason to believe
that its creditors intend to initiate involuntary bankruptcy proceedings.

 

4.8              
ABSENCE OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in the SEC Documents, there is no action, suit,
proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the executive officers of Company or any of its Subsidiaries, threatened against or affecting the Company, the
Common Stock or any of the Company’s Subsidiaries or any of the Company’s or the Company’s Subsidiaries’ officers
or directors in their capacities as such, in which an adverse decision could have a Material Adverse Effect.

 

4.9              
ACKNOWLEDGMENT REGARDING INVESTOR’S PURCHASE OF SHARES. The Company acknowledges and agrees that the Investor is acting
solely in the capacity of an arm’s length investor with respect to the Registered Offering Transaction Documents and the transactions
contemplated hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to the Registered Offering Transaction Documents and the transactions contemplated
hereby and thereby and any advice given by the Investor or any of its respective representatives or agents in connection with the Registered
Offering Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase
of the Securities, and is not being relied on by the Company. The Company further represents to the Investor that the Company’s
decision to enter into the Registered Offering Transaction Documents has been based solely on the independent evaluation by the Company
and its representatives.

 

 

 

 

    	 	9	 

     

    

 

4.10          
NO UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as set forth in the SEC Documents, as of the date
hereof, no event, liability, development or circumstance has occurred or exists, or to the Company’s knowledge is contemplated to
occur, with respect to the Company or its Subsidiaries or their respective business, properties, assets, prospects, operations or financial
condition, that would be required to be disclosed by the Company under applicable securities laws on a registration statement filed with
the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced.

 

4.11          
EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is involved in any union labor dispute nor, to the knowledge
of the Company or any of its Subsidiaries, is any such dispute threatened. Neither the Company nor any of its Subsidiaries is a party
to a collective bargaining agreement, and the Company and its Subsidiaries believe that relations with their employees are good. No executive
officer (as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to leave the Company’s employ
or otherwise terminate such officer’s employment with the Company.

 

4.12          
INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals,
governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted. Except as set
forth in the SEC Documents, none of the Company’s trademarks, trade names, service marks, service mark registrations, service names,
patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other intellectual property
rights necessary to conduct its business as now or as proposed to be conducted have expired or terminated, or are expected to expire or
terminate within two (2) years from the date of this Agreement. The Company and its Subsidiaries do not have any knowledge of any infringement
by the Company or its Subsidiaries of trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service
names, service marks, service mark registrations, trade secret or other similar rights of others, or of any such development of similar
or identical trade secrets or technical information by others and, except as set forth in the SEC Documents, there is no claim, action
or proceeding being made or brought against, or to the Company’s knowledge, being threatened against, the Company or its Subsidiaries
regarding trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations,
trade secret or other infringement; and the Company and its Subsidiaries are unaware of any facts or circumstances which might give rise
to any of the foregoing. The Company and its Subsidiaries have taken commercially reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties.

 

4.13          
ENVIRONMENTAL LAWS. The Company and its Subsidiaries (i) are, to the knowledge of the management and directors of the Company
and its Subsidiaries, in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the
protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental
Laws”); (ii) have, to the knowledge of the management and directors of the Company, received all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance, to
the knowledge of the management and directors of the Company, with all terms and conditions of any such permit, license or approval where,
in each of the three (3) foregoing cases, the failure to so comply would have, individually or in the aggregate, a Material Adverse Effect.

 

4.14          
TITLE. The Company and its Subsidiaries have good and marketable title to all personal property owned by them which is material
to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as
are described in the SEC Documents or such as do not materially affect the value of such property and do not interfere with the use made
and proposed to be made of such property by the Company or any of its Subsidiaries. Any real property and facilities held under lease
by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are
not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries.

 

4.15          
INSURANCE. Within one hundred (100) calendar days of the execution of this Agreement, each of the Company’s Subsidiaries
will be insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of
the Company reasonably believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither
the Company nor any of its Subsidiaries has been refused any insurance coverage sought or applied for and neither the Company nor its
Subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material
Adverse Effect.

 

 

 

 

    	 	10	 

     

    

 

4.16          
REGULATORY PERMITS. The Company and its Subsidiaries have in full force and effect all certificates, approvals, authorizations
and permits from the appropriate federal, state, local or foreign regulatory authorities and comparable foreign regulatory agencies, necessary
to own, lease or operate their respective properties and assets and conduct their respective businesses, and neither the Company nor any
such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, approval, authorization
or permit, except for such certificates, approvals, authorizations or permits which if not obtained, or such revocations or modifications
which, would not have a Material Adverse Effect.

 

4.17          
INTERNAL ACCOUNTING CONTROLS. Except as otherwise set forth in the SEC Documents, the Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance
with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles by a firm with membership to the PCAOB and to maintain asset accountability;
(iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to
any differences. The Company’s management has determined that the Company’s internal accounting controls were not effective
as of the date of this Agreement as further described in the SEC Documents.

 

4.18          
NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers has
or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party to any contract
or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse Effect.

 

4.19          
TAX STATUS. Within one hundred and thirty (130) days of the execution of this Agreement, the Company and each of its Subsidiaries
will have made or filed all United States federal and state income and all other tax returns, reports and declarations required by any
jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its
books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and will have paid all taxes and other governmental
assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those
being contested in good faith and will have set aside on its books provision reasonably adequate for the payment of all taxes for periods
subsequent to the periods to which such returns, reports or declarations apply. Within one hundred (100) days of the execution of this
Agreement, there will be no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the
officers of the Company will know of no basis for any such claim.

 

4.20          
CERTAIN TRANSACTIONS. Except as set forth in the SEC Documents filed at least ten (10) days prior to the date hereof and
except for arm’s length transactions pursuant to which the Company makes payments in the ordinary course of business upon terms
no less favorable than the Company could obtain from disinterested third parties, none of the officers, directors, or employees of the
Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for services as employees, officers
and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for
rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or,
to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner, such that disclosure would be required in the SEC Documents..

 

4.21          
DILUTIVE EFFECT. The Company understands and acknowledges that the number of shares of Common Stock issuable upon purchases
pursuant to this Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance wherein
the trading price of the Common Stock declines during the period between the Effective Date and the end of the Open Period. The Company’s
executive officers and directors have studied and fully understand the nature of the transactions contemplated by this Agreement and recognize
that they have a potential dilutive effect on the shareholders of the Company. The Board of Directors of the Company has concluded, in
its good faith business judgment, and with full understanding of the implications, that such issuance is in the best interests of the
Company. The Company specifically acknowledges that, subject to such limitations as are expressly set forth in the Registered Offering
Transaction Documents, its obligation to issue shares of Common Stock upon purchases pursuant to this Agreement is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

 

 

 

    	 	11	 

     

    

 

4.22          
NO GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor any person acting on its behalf, has engaged
in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of
the Common Stock to be offered as set forth in this Agreement.

 

4.23          
NO BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. Other than J.H. Darbie & Co., Inc., no brokers, finders
or financial advisory fees or commissions will be payable by the Company, its agents or Subsidiaries, with respect to the transactions
contemplated by this Agreement.

 

4.24          
EXCLUSIVITY. The Company shall not pursue a similar equity financing transaction as envisioned hereunder (the “Equity
Financing”) with any other party unless and until good faith negotiations have terminated between the Investor and the Company or
until such time as the Registration Statement has been declared effective by the SEC.

 

SECTION V

COVENANTS OF THE COMPANY

 

5.1              
BEST EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy each of the conditions set forth
in Section 7 of this Agreement.

 

5.2              
REPORTING STATUS. Until one of the following occurs, the Company shall file all reports required to be filed with the SEC
pursuant to the 1934 Act, and the Company shall not terminate its status, or take an action or fail to take any action, which would terminate
its status as a reporting company under the 1934 Act: (i) this Agreement terminates pursuant to Section 8 and the Investor has
the right to sell all of the Securities without restrictions pursuant to Rule 144 promulgated under the 1933 Act, or such other exemption,
or (ii) the date on which the Investor has sold all the Securities and this Agreement has been terminated pursuant to Section 8.

 

5.3              
USE OF PROCEEDS. The Company will use the proceeds from the sale of the Put Shares (excluding amounts paid by the Company
for fees as set forth in the Registered Offering Transaction Documents) for general corporate and working capital purposes and acquisitions
or assets, businesses or operations or for other purposes that the Board of Directors, in good faith, deem to be in the best interest
of the Company.

 

5.4              
FINANCIAL INFORMATION. During the Open Period, the Company agrees to make available to the Investor via EDGAR or other electronic
means the following documents and information on the forms set forth: (i) within five (5) Trading Days after the filing thereof with the
SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K and any Registration
Statements or amendments filed pursuant to the 1933 Act; (ii) copies of any notices and other information made available or given to the
shareholders of the Company generally, contemporaneously with the making available or giving thereof to the shareholders; and (iii) within
two (2) calendar days of filing or delivery thereof, copies of all documents filed with, and all correspondence sent to, the Principal
Market, any securities exchange or market, or the Financial Industry Regulatory Association, unless such information is material nonpublic
information.

 

5.5              
RESERVATION OF SHARES. The Company shall take all action necessary to at all times have authorized, and reserved the amount
of Shares included in the Company’s registration statement for issuance pursuant to the Registered Offering Transaction Documents.
In the event that the Company determines that it does not have a sufficient number of authorized shares of Common Stock to reserve and
keep available for issuance as described in this Section 5.5, the Company shall use all commercially reasonable efforts to increase
the number of authorized shares of Common Stock by seeking shareholder approval for the authorization of such additional shares.

 

5.6              
LISTING. The Company shall promptly secure and maintain the listing of all of the Registrable Securities (as defined in
the Registration Rights Agreement) on the Principal Market and each other national securities exchange and automated quotation system,
if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and shall maintain, such listing of
all Registrable Securities from time to time issuable under the terms of the Registered Offering Transaction Documents. Neither the Company
nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Common
Stock on the Principal Market (excluding suspensions of not more than one (1) Trading Day resulting from business announcements by the
Company). The Company shall promptly provide to the Investor copies of any notices it receives from the Principal Market regarding the
continued eligibility of the Common Stock for listing on such automated quotation system or securities exchange. The Company shall pay
all fees and expenses in connection with satisfying its obligations under this Section 5.6.

 

 

 

 

    	 	12	 

     

    

 

5.7              
TRANSACTIONS WITH AFFILIATES. The Company shall not, and shall cause each of its Subsidiaries not to, enter into, amend,
modify or supplement, or permit any Subsidiary to enter into, amend, modify or supplement, any agreement, transaction, commitment or arrangement
with any of its or any Subsidiary’s officers, directors, persons who were officers or directors at any time during the previous
two (2) years, shareholders who beneficially own 5% or more of the Common Stock, or Affiliates or with any individual related by blood,
marriage or adoption to any such individual or with any entity in which any such entity or individual owns a 5% or more beneficial interest
(each a “Related Party”), except for (i) customary employment arrangements and benefit programs on reasonable terms,
(ii) any agreement, transaction, commitment or arrangement on an arms-length basis on terms no less favorable than terms which would have
been obtainable from a disinterested third party other than such Related Party, or (iii) any agreement, transaction, commitment or arrangement
which is approved by a majority of the disinterested directors of the Company. For purposes hereof, any director who is also an officer
of the Company or any Subsidiary of the Company shall not be a disinterested director with respect to any such agreement, transaction,
commitment or arrangement. “Affiliate” for purposes hereof means, with respect to any person or entity, another person
or entity that, directly or indirectly, (i) has a 5% or more equity interest in that person or entity, (ii) has 5% or more common ownership
with that person or entity, (iii) controls that person or entity, or (iv) is under common control with that person or entity. “Control”
or “Controls” for purposes hereof means that a person or entity has the power, directly or indirectly, to conduct or
govern the policies of another person or entity.

 

5.8              
FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after the Execution Date, the Company shall file
a Current Report on Form 8-K with the SEC describing the terms of the transaction contemplated by the Registered Offering Transaction
Documents in the form required by the 1934 Act, if such filing is required.

 

5.9             
CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and continue the corporate existence
of the Company.

 

5.10          
NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A PUT. The Company shall promptly notify the
Investor upon the occurrence of any of the following events in respect of a Registration Statement or related prospectus in respect of
an offering of the Securities: (i) receipt of any request for additional information by the SEC or any other federal or state governmental
authority during the period of effectiveness of the Registration Statement for amendments or supplements to the Registration Statement
or related prospectus; (ii) the issuance by the SEC or any other federal or state governmental authority of any stop order suspending
the effectiveness of any Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt of any notification
with respect to the suspension of the qualification or exemption from qualification of any of the Securities for sale in any jurisdiction
or the initiation or notice of any proceeding for such purpose; (iv) the happening of any event that makes any statement made in such
Registration Statement or related prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in
any material respect or that requires the making of any changes in the Registration Statement, related prospectus or documents so that,
in the case of a Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the related prospectus,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (v) the Company’s
reasonable determination that a post-effective amendment or supplement to the Registration Statement would be appropriate, and the Company
shall promptly make available to Investor any such supplement or amendment to the related prospectus. The Company shall not deliver to
Investor any Put Notice during the continuation of any of the foregoing events in this Section 5.10.

 

5.11          
TRANSFER AGENT. The Company shall deliver instructions to its transfer agent to issue Shares to the Investor that are issued
to the Investor pursuant to the Equity Financing and transactions contemplated herein.

 

5.12          
ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily entering
into this Agreement of its own free will, (ii) it is not entering this Agreement under economic duress, (iii) the terms of this Agreement
are reasonable and fair to the Company, and (iv) the Company has had 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 this Agreement.

 

 

 

    	 	13	 

     

    

 

SECTION VI

CONDITIONS OF THE COMPANY’S OBLIGATION
TO SELL

 

The obligation hereunder of
the Company to issue and sell the Securities to the Investor is further subject to the satisfaction, at or before each Closing Date, of
each of the following conditions set forth below. These conditions are for the Company’s sole benefit and may be waived by the Company
at any time in its sole discretion.

 

6.1              
The Investor shall have executed this Agreement and the Registration Rights Agreement and delivered the same to the Company.

 

6.2              
The Investor shall have delivered to the Company the Purchase Price for the Securities being purchased by the Investor.

 

6.3              
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

SECTION VII

FURTHER CONDITIONS OF THE INVESTOR’S OBLIGATION
TO PURCHASE

 

The obligation of the Investor
hereunder to purchase Securities is subject to the satisfaction, on or before each Closing Date, of each of the following conditions set
forth below.

 

7.1                 
The Company shall have executed the Registered Offering Transaction Documents and delivered the same to the Investor.

 

7.2                 
The representations and warranties of the Company shall be true and correct as of the date when made and as of the applicable Closing
Date as though made at that time and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions
required by the Registered Offering Transaction Documents to be performed, satisfied or complied with by the Company on or before such
Closing Date. The Investor may request an update as of such Closing Date regarding the representation contained in Section 4.3.

 

7.3                 
The Company shall have executed and delivered to the Investor via DWAC the Securities (in such denominations as the Investor shall
request) being purchased by the Investor at such Closing.

 

7.4                 
The Board of Directors of the Company shall have adopted resolutions consistent with Section 4.2(ii) (the “Resolutions”)
and such Resolutions shall not have been amended or rescinded prior to such Closing Date.

 

7.5                 
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

7.6                 
Within forty-five (45) calendar days after the Agreement is executed, the Company agrees to use its best efforts to file with the
SEC the Registration Statement covering the shares of stock underlying the Equity Financing contemplated herein. Such Registration Statement
shall conform to the requirements of the rules and regulations of the SEC, and be subject to the reasonable approval of the Investor.
The Company will take any and all steps necessary to have its Registration Statement declared effective by the SEC within thirty (30)
calendar days but no more than ninety (90) calendar days after the Company has filed its Registration Statement. The Registration Statement
shall be effective on each Closing Date and no stop order suspending the effectiveness of the Registration statement shall be in effect
or to the Company’s knowledge shall be pending or threatened. Furthermore, on each Closing Date (I) neither the Company nor the
Investor shall have received notice that the SEC has issued or intends to issue a stop order with respect to such Registration Statement
or that the SEC otherwise has suspended or withdrawn the effectiveness of such Registration Statement, either temporarily or permanently,
or intends or has threatened to do so (unless the SEC’s concerns have been addressed), and (II) no other suspension of the use or
withdrawal of the effectiveness of such Registration Statement or related prospectus shall exist.

 

 

 

 

    	 	14	 

     

    

 

7.7                 
At the time of each Closing, the Registration Statement (including information or documents incorporated by reference therein)
and any amendments or supplements thereto shall not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading or which would require public disclosure or an
update supplement to the prospectus.

 

7.8                 
If applicable, the shareholders of the Company shall have approved the issuance of any Shares in excess of the Maximum Common Stock
Issuance in accordance with Section 2.5 or the Company shall have obtained appropriate approval pursuant to the requirements of
applicable state and federal laws and the Company’s Certificate of Incorporation and By-laws.

 

7.9                 
The conditions to such Closing set forth in Section 2.3 shall have been satisfied on or before such Closing Date.

 

7.10              
The Company shall have certified to the Investor the number of Shares of Common Stock outstanding when a Put Notice is given to
the Investor. The Company’s delivery of a Put Notice to the Investor constitutes the Company’s certification of the existence
of the necessary number of shares of Common Stock reserved for issuance.

 

SECTION VIII

TERMINATION

 

This Agreement shall terminate
upon any of the following events:

 

8.1              
when the Investor has purchased an aggregate of Seventy Million Dollars ($70,000,000) in the Common Stock of the Company pursuant
to this Agreement; or

 

8.2              
twenty-four (24) months from the date of this Agreement's execution have elapsed.

 

8.3              
upon written consent of the parties hereto.

 

Any and all shares, or penalties,
if any, due under this Agreement shall be immediately payable and due upon termination of this Agreement.

 

SECTION IX

SUSPENSION

 

This Agreement shall be suspended
upon any of the following events, and shall remain suspended until such event is rectified:

 

		i.	The trading of the Common Stock is suspended by the SEC, the Principal Market or FINRA for a period of
two (2) consecutive Trading Days during the Open Period; or

 

		ii.	The Common Stock ceases to be quoted, listed or traded on the Principal Market or the Registration Statement
is no longer effective (except as permitted hereunder). Immediately upon the occurrence of one of the above-described events, the Company
shall send written notice of such event to the Investor.

 

 

 

 

    	 	15	 

     

    

 

SECTION X

INDEMNIFICATION

 

In consideration of the parties
mutual obligations set forth in the Transaction Documents, the Company ( the “Indemnitor”) shall defend, protect, indemnify
and hold harmless the Investor and all of the investor’s shareholders, officers, directors, employees, counsel, and direct or indirect
investors and any of the foregoing person’s agents or other representatives (including, without limitation, those retained in connection
with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all
actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and reasonable expenses in connection
therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including
reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a
result of, or arising out of, or relating to (I) any misrepresentation or breach of any representation or warranty made by the Indemnitor
or any other certificate, instrument or document contemplated hereby or thereby; (II) any breach of any covenant, agreement or obligation
of the Indemnitor contained in the Registered Offering Transaction Documents or any other certificate, instrument or document contemplated
hereby or thereby; or (III) any cause of action, suit or claim brought or made against such Indemnitee by a third party and arising out
of or resulting from the execution, delivery, performance or enforcement of the Registered Offering Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby, except insofar as any such misrepresentation, breach or any untrue
statement, alleged untrue statement, omission or alleged omission is made in reliance upon and in conformity with information furnished
to Indemnitor which is specifically intended for use in the preparation of any such Registration Statement, preliminary prospectus, prospectus
or amendments to the prospectus. To the extent that the foregoing undertaking by the Indemnitor may be unenforceable for any reason, the
Indemnitor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible
under applicable law. The indemnity provisions contained herein shall be in addition to any cause of action or similar rights Indemnitor
may have, and any liabilities the Indemnitor or the Indemnitees may be subject to.

 

SECTION XI

GOVERNING LAW; DISPUTES SUBMITTED TO ARBITRATION.

 

11.1          
Law Governing this Agreement. This Agreement shall be governed by and construed
in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party
against the other concerning the transactions contemplated by this Agreement shall be brought only in the state or federal courts located
in New York City, New York State. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any
action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens.
The parties executing this Agreement and other agreements referred to herein or delivered in connection herewith on behalf of the Company
agree to submit to the in personam jurisdiction of such courts and hereby irrevocably waive trial by jury. The prevailing party shall
be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement
or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such
statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability
of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being
served in any suit, action or proceeding in connection with this Agreement or any other Transaction Documents 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.

 

11.2          
LEGAL FEES; AND MISCELLANEOUS FEES. Except as otherwise set forth in the Registered Offering Transaction Documents (including
but not limited to Section V of the Registration Rights Agreement), the Company has agreed to reimburse the Investor $10,000 for its legal
fees in connection with the transactions contemplated by the Registered Offering Transaction Documents, which such amount may be withheld
from the Investor’s Purchase Amount at the initial Closing. Except as set forth above, each party shall pay the fees and expenses
of its advisers, counsel, the accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement. Any attorneys’ fees and expenses incurred by either the Company
or the Investor in connection with the preparation, negotiation, execution and delivery of any amendments to this Agreement or relating
to the enforcement of the rights of any party, after the occurrence of any breach of the terms of this Agreement by another party or any
default by another party in respect of the transactions contemplated hereunder, shall be paid on demand by the party which breached the
Agreement and/or defaulted, as the case may be. The Company shall pay all stamp and other taxes and duties levied in connection with the
issuance of any Securities.

 

 

 

 

    	 	16	 

     

    

 

11.3          
COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the
same instrument. This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means
with the same force and effect as if such signature page were an original thereof.

 

11.4          
HEADINGS; SINGULAR/PLURAL. The headings of this Agreement are for convenience of reference and shall not form part of, or
affect the interpretation of, this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural
and masculine shall include the feminine.

 

11.5          
SEVERABILITY. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity
or enforceability of any provision of this Agreement in any other jurisdiction.

 

11.6          
ENTIRE AGREEMENT; AMENDMENTS. This Agreement is the FINAL AGREEMENT between the Company and the Investor with respect to
the terms and conditions set forth herein, and, the terms of this Agreement may not be contradicted by evidence of prior, contemporaneous,
or subsequent oral agreements of the Parties. No provision of this Agreement may be amended other than by an instrument in writing signed
by the Company and the Investor, and no provision hereof may be waived other than by an instrument in writing signed by the party against
whom enforcement is sought. The execution and delivery of the Registered Offering Transaction Documents shall not alter the force and
effect of any other agreements between the Parties, and the obligations under those agreements.

 

11.7          
NOTICES. Any notices 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 email;
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 shall be:

 

	 	
    If to the Company:

     

     

     

     
	 	
    DarkPulse, Inc.

    1345 Avenue of Americas, 2nd Floor

    New York, NY 10105

    Attn: Dennis O’Leary, CEO

	 	
    With a copy to

    (which copy shall not

    constitute notice):
	 	
    Business Legal Advisors, LLC

    Attn: Brian Higley

    brian@businesslegaladvisor.com

	 	 	 	 
	 	
    If to the Investor:

     

     

     
	 	
    GHS Investments, LLC

    420 Jericho Turnpike,

    Suite 102

    Jericho, NY 11753

 

Each party shall provide five (5) days prior written
notice to the other party of any change in address.

 

11.8          
NO ASSIGNMENT. This Agreement may not be assigned.

 

 

 

 

    	 	17	 

     

    

 

11.9          
NO THIRD-PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is not for the benefit
of, nor may any provision hereof be enforced by, any other person, except that the Company acknowledges that the rights of the Investor
may be enforced by its general partner.

 

11.10       
SURVIVAL. The representations and warranties of the Company and the Investor contained in Sections 3 and 4, the agreements
and covenants set forth in Sections 5 and 6, and the indemnification provisions set forth in Section 10, shall survive each of
the Closings and the termination of this Agreement.

 

11.11       
PUBLICITY. The Investor acknowledges that this Agreement and all or part of the Registered Offering Transaction Documents
may be deemed to be “material contracts” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company
may therefore be required to file such documents as exhibits to reports or registration statements filed under the 1933 Act or the 1934
Act. The Investor further agrees that the status of such documents and materials as material contracts shall be determined solely by the
Company, in consultation with its counsel.

 

11.12       
FURTHER ASSURANCES. 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.

 

11.13       
PLACEMENT AGENT. If so required, the Company agrees to pay a registered broker dealer, to act as placement agent. The Investor
shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other persons or entities for
fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Registered Offering
Transaction Documents. The Company shall indemnify and hold harmless the Investor, their employees, officers, directors, agents, and partners,
and their respective affiliates, from and against all claims, losses, damages, costs (including the costs of preparation and attorney’s
fees) and expenses incurred in respect of any such claimed or existing fees, as such fees and expenses are incurred.

 

11.14       
NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party, as the parties mutually agree that each has
had a full and fair opportunity to review this Agreement and seek the advice of counsel on it.

 

11.15       
REMEDIES. The Investor shall have all rights and remedies set forth in this Agreement and the Registration Rights Agreement
and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights
which the Investor has by law. Any person having any rights under any provision of this Agreement shall be entitled to enforce such rights
specifically (without posting a bond or other security), to recover damages by reason of any default or breach of any provision of this
Agreement, including the recovery of reasonable attorney’s fees and costs, and to exercise all other rights granted by law.

 

11.16       
PAYMENT SET ASIDE. To the extent that the Company makes a payment or payments to the Investor hereunder or under the Registration
Rights Agreement or the Investor enforces or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds
of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside,
recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other
person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

11.17       
PRICING OF COMMON STOCK. For purposes of this Agreement, the price of the Common Stock shall be as reported by Quotestream
Media.

 

 

 

 

    	 	18	 

     

    

 

SECTION XII

NON-DISCLOSURE OF NON-PUBLIC INFORMATION

 

The Company shall not disclose
non-public information to the Investor, its advisors, or its representatives.

 

Nothing herein shall require
the Company to disclose non-public information to the Investor or its advisors or representatives, and the Company represents that it
does not disseminate non-public information to any investors who purchase stock in the Company in a public offering, to money managers
or to securities analysts, provided, however, that notwithstanding anything herein to the contrary, the Company will, as hereinabove provided,
immediately notify the advisors and representatives of the Investor and, if any, underwriters, of any event or the existence of any circumstance
(without any obligation to disclose the specific event or circumstance) of which it becomes aware, constituting non-public information
(whether or not requested of the Company specifically or generally during the course of due diligence by such persons or entities), which,
if not disclosed in the prospectus included in the Registration Statement would cause such prospectus to include a material misstatement
or to omit a material fact required to be stated therein in order to make the statements, therein, in light of the circumstances in which
they were made, not misleading. Nothing contained in this Section 12 shall be construed to mean that such persons or entities other
than the Investor (without the written consent of the Investor prior to disclosure of such information) may not obtain non-public information
in the course of conducting due diligence in accordance with the terms of this Agreement and nothing herein shall prevent any such persons
or entities from notifying the Company of their opinion that based on such due diligence by such persons or entities, that the Registration
Statement contains an untrue statement of material fact or omits a material fact required to be stated in the Registration Statement or
necessary to make the statements contained therein, in light of the circumstances in which they were made, not misleading.

 

SECTION XIII

ACKNOWLEDGEMENTS OF THE PARTIES

 

Notwithstanding anything in
this Agreement to the contrary, the parties hereto hereby acknowledge and agree to the following: (i) the Investor makes no representations
or covenants that it will not engage in trading in the securities of the Company, other than as provided in Section 3.12 of this Agreement;
(ii) the Company shall, by 8:30 a.m. EST on the fourth Trading Day following the date hereof, file a current report on Form 8-K disclosing
the material terms of the transactions contemplated hereby and in the other Registered Offering Transaction Documents; (iii) the Company
has not and shall not provide material non-public information to the Investor unless prior thereto the Investor shall have executed a
written agreement regarding the confidentiality and use of such information; and (iv) the Company understands and confirms that the Investor
will be relying on the acknowledgements set forth in clauses (i) through (iii) above if the Investor effects any transactions in the securities
of the Company.

 

[Signature page follows]

 

 

 

 

 

 

 

 

 

 

    	 	19	 

     

    

 

Your signature on this Signature
Page evidences your agreement to be bound by the terms and conditions of the Investment Agreement as of the date first written above.
The undersigned signatory hereby certifies that he has read and understands the Investment Agreement, and the representations made by
the undersigned in this Investment Agreement are true and accurate, and agrees to be bound by its terms.

 

GHS INVESTMENTS, LLC

 

 

By: /s/ Mark Grober____________________

Name: Mark Grober

Title: Member

 

 

 

DARKPULSE, INC.

 

 

By: /s/ Dennis O’Leary__________________

Name: Dennis O’Leary

Title: CEO

 

 

 

[SIGNATURE PAGE OF EQUITY FINANCING AGREEMENT]

 

 

 

 

 

 

 

 

 

 

 

    	 	20	 

     

    

 

LIST OF EXHIBITS

 

EXHIBIT ARegistration Rights Agreement

 

EXHIBIT BNotice
of Effectiveness

 

EXHIBIT CPut Notice

 

EXHIBIT DPut Settlement Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	21	 

     

    

 

EXHIBIT A

 

REGISTRATION RIGHTS AGREEMENT

 

See attached.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	22	 

     

    

 

EXHIBIT B

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

Date: __________

 

[TRANSFER AGENT]

 

Re: DarkPulse, Inc.

 

Ladies and Gentlemen:

 

We are counsel to DarkPulse, Inc., a Delaware corporation
(the “Company”), and have represented the Company in connection with that certain Equity Financing Agreement (the “Investment
Agreement”) entered into by and among the Company and GHS Investments, LLC (the “Investor”) pursuant to which the Company
has agreed to issue to the Investor shares of the Company’s common stock, $0.0001 par value per share (the “Common Stock”)
on the terms and conditions set forth in the Investment Agreement. Pursuant to the Investment Agreement, the Company also has entered
into a Registration Rights Agreement with the Investor (the “Registration Rights Agreement”) pursuant to which the Company
agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights Agreement), including the shares
of Common Stock issued or issuable under the Investment Agreement under the Securities Act of 1933, as amended (the “1933 Act”).
In connection with the Company’s obligations under the Registration Rights Agreement, on ____________ ___, 20__, the Company filed
a Registration Statement on Form S-1 (File No. __-________) (the “Registration Statement”) with the Securities and Exchange
Commission (the “SEC”) relating to the Registrable Securities which names the Investor as a selling shareholder thereunder.

 

In connection with the foregoing,
we advise you that a member of the SEC's staff has advised us by telephone that the SEC has entered an order declaring the Registration
Statement effective under the 1933 Act at ______ on __________, 20__ and we have no knowledge, after telephonic inquiry of a member of
the SEC's staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending
before, or threatened by, the SEC and the Registrable Securities are available for sale under the 1933 Act pursuant to the Registration
Statement

 

Very truly yours,

 

[Company Counsel]

 

 

 

 

 

 

 

 

 

    	 	23	 

     

    

 

EXHIBIT C

 

FORM OF PUT NOTICE

 

Date:

 

RE: Put Notice Number __

 

Dear Mr./Ms.__________,

 

This is to inform you that as of today, DarkPulse, Inc., a Delaware
corporation (the “Company”), hereby elects to exercise its right pursuant to the Equity Financing Agreement to require GHS
Investments LLC to purchase shares of its common stock. The Company hereby certifies that:

 

The amount of this put is $__________.

 

The Pricing Period runs from _______________ until
_______________.

 

The Purchase Price is: $_______________

 

The number of Put Shares due:___________________.

 

The current number of shares of common stock issued
and outstanding is: _________________.

 

The number of shares currently available for issuance
on the S-1 is: ________________________.

 

Regards,

DarkPulse, Inc.

 

 

By: __________________________________

Name: 

Title:

 

 

 

 

 

    	 	24	 

     

    

 

EXHIBIT D

 

PUT SETTLEMENT SHEET

 

Date: ________________

 

Dear Mr. ________,

 

Pursuant to the Put given by DarkPulse, Inc., to GHS Investments LLC
(“GHS”) on _________________ 202_, we are now submitting the amount of common shares for you to issue to GHS.

 

Please have a certificate bearing no restrictive
legend totaling __________ shares issued to GHS immediately and send via DWAC to the following account:

 

[INSERT]

 

If not DWAC eligible, please send FedEx Priority
Overnight to:

 

[INSERT ADDRESS]

 

Once these shares are received by us, we will
have the funds wired to the Company.

 

Regards,

 

GHS INVESTMENTS LLC

 

 

By: _________________________________

Name:

Title

 

 

 

 

 

    	 	25

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