Document:

WELLS FARGO & COMPANY 8-K 

 

Exhibit 4.6

 

[Face of Note]

 

Unless this certificate
is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

	CUSIP NO. 95001BBY9	FACE AMOUNT:  $________
	REGISTERED NO. __	 

 

 

WELLS FARGO & COMPANY

 

MEDIUM-TERM NOTE, SERIES S

 

Due Nine Months or More From Date of Issue

 

Principal at Risk Securities Linked to the
S&P 500® Index

due July 2, 2020

 

WELLS FARGO & COMPANY, a corporation
duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company,” which
term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay
to CEDE & Co., or registered assigns, an amount equal to the Maturity Payment Amount (as defined below), in such coin
or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts,
on the Stated Maturity Date. The “Initial Stated Maturity Date” shall be July 2, 2020. If the Calculation Day
(as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated Maturity Date.” If
the Calculation Day is postponed, the “Stated Maturity Date” shall be the later of (i) the Initial Stated
Maturity Date and (ii) three Business Days (as defined below) after the Calculation Day as postponed. This Security shall
not bear any interest.

Any payments on this Security at Maturity
will be made against presentation of this Security at the office or agency of the Company maintained for that purpose in the City
of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose.

“Face Amount” shall
mean, when used with respect to this Security, the amount set forth on the face of this Security as its “Face Amount.”

    	 	 	 

    	 

    

Determination of Maturity Payment
Amount

The “Maturity
Payment Amount” of this Security will equal:

 

•

if the Ending Level is greater than the Starting
Level: the Face Amount plus the lesser of:

 

	 	(i)	 	Face Amount	 ×  	 	
        Ending Level – Starting
        Level

        Starting Level
	 	 	  ×  Participation Rate  		  ; and 

 

(ii) the Maximum Return;

 

•

if the Ending Level is less than or equal
to the Starting Level, but greater than or equal to the Threshold Level: the Face Amount; or

 

•

if the Ending Level is less than the Threshold
Level: the Face Amount minus:

 

	 		Face Amount	×	
        Threshold Level – Ending Level

        Starting Level
		 

 

All calculations with respect to the Maturity
Payment Amount will be rounded to the nearest one hundred-thousandth, with five one-millionths rounded upward (e.g., 0.000005 would
be rounded to 0.00001); and the Maturity Payment Amount will be rounded to the nearest cent, with one-half cent rounded upward.

 

“Index”
shall mean the S&P 500® Index.

 

The “Pricing Date”
shall mean December 28, 2018.

 

The “Starting Level” is
2485.74, the Closing Level of the Index on the Pricing Date.

 

The “Closing Level” of the
Index on any Trading Day means the official closing level of the Index reported by the Index Sponsor on such Trading Day, as obtained
by the Calculation Agent on such Trading Day from the licensed third-party market data vendor contracted by the Calculation Agent
at such time; in particular, taking into account the decimal precision and/or rounding convention employed by such licensed third-party
market data vendor on such date, subject to the provisions set forth below under “Adjustments to the Index,” “Discontinuance
of the Index” and “Market Disruption Events.”

 

The “Ending Level” will
be the Closing Level of the Index on the Calculation Day.

 

The
“Threshold Level” is 1988.592, which is equal to 80% of the Starting Level.

 

The
“Participation Rate” is 150%.

 

The “Maximum Return” is
14.40% of the Face Amount of this Security.

 

    	 	2	 

    	 

    

“Index Sponsor” shall mean
S&P Dow Jones Indices LLC.

 

“Business Day”
shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are
authorized or required by law or regulation to close in New York, New York.

 

A “Trading Day” means a
day, as determined by the Calculation Agent, on which (i) the Relevant Stock Exchanges with respect to each security underlying
the Index are scheduled to be open for trading for their respective regular trading sessions and (ii) each Related Futures
or Options Exchange is scheduled to be open for trading for its regular trading session.

 

The “Related Futures or Options Exchange”
for the Index means an exchange or quotation system where trading has a material effect (as determined by the Calculation Agent)
on the overall market for futures or options contracts relating to the Index.

 

The “Relevant Stock Exchange”
for any security underlying the Index means the primary exchange or quotation system on which such security is traded, as determined
by the Calculation Agent.

 

The “Calculation Day” shall
be June 29, 2020. If such day is not a Trading Day, the Calculation Day will be postponed to the next succeeding Trading Day. The
Calculation Day is also subject to postponement due to the occurrence of a Market Disruption Event (as defined below). If a Market
Disruption Event occurs or is continuing with respect to the Index on the Calculation Day, such Calculation Day will be postponed
to the first succeeding Trading Day on which a Market Disruption Event has not occurred and is not continuing; however, if such
first succeeding Trading Day has not occurred as of the eighth Trading Day after the originally scheduled Calculation Day, that
eighth Trading Day shall be deemed to be the Calculation Day. If the Calculation Day has been postponed eight Trading Days after
the originally scheduled Calculation Day and a Market Disruption Event occurs or is continuing on such eighth Trading Day, the
Calculation Agent will determine the Closing Level of the Index on such eighth Trading Day in accordance with the formula for and
method of calculating the Closing Level of the Index last in effect prior to commencement of the Market Disruption Event, using
the closing price (or, with respect to any relevant security, if a Market Disruption Event has occurred with respect to such security,
its good faith estimate of the value of such security at the Scheduled Closing Time of the Relevant Stock Exchange for such security
or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange) on such date of each security
included in the Index. As used herein, “closing price” means, with respect to any security on any date, the
Relevant Stock Exchange traded or quoted price of such security as of the Scheduled Closing Time of the Relevant Stock Exchange
for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange.

 

“Calculation Agent
Agreement” shall mean the Calculation Agent Agreement dated as of January 24, 2018 between the Company and the Calculation
Agent, as amended from time to time.

 

    	 	3	 

    	 

    

“Calculation Agent”
shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among other things,
the determination of the Ending Level and the Maturity Payment Amount, which term shall, unless the context otherwise requires,
include its successors under such Calculation Agent Agreement. The initial Calculation Agent shall be Wells Fargo Securities, LLC.
Pursuant to the Calculation Agent Agreement, the Company may appoint a different Calculation Agent from time to time after the
initial issuance of this Security without the consent of the Holder of this Security and without notifying the Holder of this Security.

 

Adjustments to the Index

 

If at any time the method of calculating the
Index or a Successor Equity Index, or the closing level thereof, is changed in a material respect, or if the Index or a Successor
Equity Index is in any other way modified so that such index does not, in the opinion of the Calculation Agent, fairly represent
the level of such index had those changes or modifications not been made, then the Calculation Agent will, at the close of business
in New York, New York, on each date that the closing level of such index is to be calculated, make such calculations and adjustments
as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive at a level of an index comparable
to the Index or Successor Equity Index as if those changes or modifications had not been made, and the Calculation Agent will calculate
the closing level of the Index or Successor Equity Index with reference to such index, as so adjusted. Accordingly, if the method
of calculating the Index or Successor Equity Index is modified so that the level of such index is a fraction or a multiple of what
it would have been if it had not been modified (e.g., due to a split or reverse split in such equity index), then the Calculation
Agent will adjust the Index or Successor Equity Index in order to arrive at a level of such index as if it had not been modified
(e.g., as if the split or reverse split had not occurred).

 

Discontinuance
of the Index

If the Index Sponsor discontinues publication
of the Index, and the Index Sponsor or another entity publishes a successor or substitute equity index that the Calculation Agent
determines, in its sole discretion, to be comparable to the Index (a “Successor Equity Index”), then, upon the
Calculation Agent’s notification of that determination to the Trustee and the Company, the Calculation Agent will substitute
the Successor Equity Index as calculated by the Index Sponsor or any other entity and calculate the Ending Level as described above.
Upon any selection by the Calculation Agent of a Successor Equity Index, the Company will cause notice to be given to the Holder
of this Security.

 

In the event that the Index Sponsor
discontinues publication of the Index prior to, and the discontinuance is continuing on, the Calculation Day and the Calculation
Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will calculate a substitute Closing
Level for the Index in accordance with the formula for and method of calculating the Index last in effect prior to the discontinuance,
but using only those securities that comprised the Index immediately prior to that discontinuance. If a Successor Equity Index
is selected or the Calculation Agent calculates a level as a substitute for the Index, the Successor Equity Index or level will
be used as a substitute for the Index for all purposes, including the purpose of determining whether a Market Disruption Event
exists.

 

    	 	4	 

    	 

    

If on the Calculation
Day the Index Sponsor fails to calculate and announce the level of the Index, the Calculation Agent will calculate a substitute
Closing Level of the Index in accordance with the formula for and method of calculating the Index last in effect prior to the failure,
but using only those securities that comprised the Index immediately prior to that failure; provided that, if a Market Disruption
Event occurs or is continuing on such day, then the provisions set forth above under the definition of “Calculation Day”
shall apply in lieu of the foregoing.

 

Market
Disruption Events 

A “Market Disruption
Event” means any of the following events as determined by the Calculation Agent in its sole discretion:

 

		(A)	The occurrence or existence of a material suspension of or limitation imposed on trading by the
Relevant Stock Exchanges or otherwise relating to securities which then comprise 20% or more of the level of the Index or any Successor
Equity Index at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements
in price exceeding limits permitted by those Relevant Stock Exchanges or otherwise.

		(B)	The occurrence or existence of a material suspension of or limitation imposed on trading by any
Related Futures or Options Exchange or otherwise in futures or options contracts relating to the Index or any Successor Equity
Index on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that
day, whether by reason of movements in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise.

		(C)	The occurrence or existence of any event, other than an early closure, that materially disrupts
or impairs the ability of market participants in general to effect transactions in, or obtain market values for, securities that
then comprise 20% or more of the level of the Index or any Successor Equity Index on their Relevant Stock Exchanges at any time
during the one-hour period that ends at the Close of Trading on that day.

		(D)	The occurrence or existence of any event, other than an early closure, that materially disrupts
or impairs the ability of market participants in general to effect transactions in, or obtain market values for, futures or options
contracts relating to the Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the
one-hour period that ends at the Close of Trading on that day.

		(E)	The closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities that
then comprise 20% or more of the level of the Index or any Successor Equity Index are traded or any Related Futures or Options
Exchange prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant Stock Exchange or Related
Futures or Options Exchange, as

    	 	5	 

    	 

    

applicable,
at least one hour prior to the earlier of (1) the actual closing time for the regular trading session on such Relevant Stock
Exchange or Related Futures or Options Exchange, as applicable, and (2) the submission deadline for orders to be entered into
the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system for execution at such actual closing
time on that day.

		(F)	The Relevant Stock Exchange for any security underlying the Index or Successor Equity Index or
any Related Futures or Options Exchange fails to open for trading during its regular trading session.

For purposes of
determining whether a Market Disruption Event has occurred:

		(1)	the relevant percentage contribution of a security to the level of the Index or any Successor Equity
Index will be based on a comparison of (x) the portion of the level of such Index attributable to that security and (y) the
overall level of the Index or Successor Equity Index, in each case immediately before the occurrence of the Market Disruption Event;

		(2)	the “Close of Trading” on any Trading Day for the Index or any Successor Equity
Index means the Scheduled Closing Time of the Relevant Stock Exchanges with respect to the securities underlying the Index or Successor
Equity Index on such Trading Day; provided that, if the actual closing time of the regular trading session of any such Relevant
Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A) and (C) of
the definition of “Market Disruption Event” above, with respect to any security underlying the Index or Successor Equity
Index for which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close of Trading” means such actual
closing time and (y) for purposes of clauses (B) and (D) of the definition of “Market Disruption Event” above, with
respect to any futures or options contract relating to the Index or Successor Equity Index, the “close of trading”
means the latest actual closing time of the regular trading session of any of the Relevant Stock Exchanges, but in no event later
than the Scheduled Closing Time of the Relevant Stock Exchanges;

		(3)	the “Scheduled Closing Time” of any Relevant Stock Exchange or Related Futures
or Options Exchange on any Trading Day for the Index or any Successor Equity Index means the scheduled weekday closing time of
such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading Day, without regard to after hours or any other
trading outside the regular trading session hours; and

		(4)	an “Exchange Business Day” means any Trading Day for the Index or any Successor
Equity Index on which each Relevant Stock Exchange for the securities underlying the Index or any Successor Equity Index and each
Related Futures or Options Exchange are open for trading during their respective regular

    	 	6	 

    	 

    

trading
sessions, notwithstanding any such Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled
Closing Time.

Calculation
Agent

The
Calculation Agent will determine the Maturity Payment Amount and the Ending Level. In addition, the Calculation Agent will (i)
determine if adjustments are required to the Closing Level of the Index under the circumstances described in this Security, (ii)
if publication of the Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available, determine
the Closing Level of the Index under the circumstances described in this Security, and (iii) determine whether a Market Disruption
Event or non-Trading Day has occurred. 

The
Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall be
a broker-dealer, bank or other financial institution) with respect to this Security.

All
determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent
and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

Tax
Considerations

The
Company agrees, and by acceptance of a beneficial ownership interest in this Security each Holder of this Security will be deemed
to have agreed (in the absence of a statutory, regulatory, administrative or judicial ruling to the contrary), for United States
federal income tax purposes to characterize and treat this Security as a prepaid derivative contract that is an “open transaction.”

Redemption and Repayment

This Security is
not subject to redemption at the option of the Company or repayment at the option of the Holder hereof prior to July 2, 2020. This
Security is not entitled to any sinking fund.

Acceleration

If an Event of Default,
as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity Payment Amount (calculated
as set forth in the next sentence) of this Security may be declared due and payable in the manner and with the effect provided
in the Indenture. The amount payable to the Holder hereof upon any acceleration
permitted under the Indenture will be equal to the Maturity Payment Amount hereof calculated as provided herein as though the date
of acceleration was the Calculation Day. 

__________________

Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.

    	 	7	 

    	 

    

Unless the certificate
of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized
agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

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

 

    	 	8	 

    	 

    

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed.

 

DATED:

	 	 	 	 
	 	WELLS FARGO & COMPANY
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	 	Its:
	 	 	 
	 	Attest:	 
	 	 	 	 
	 	 	Its:

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

This is one of the Securities of the

series designated therein described

in the within-mentioned Indenture.

 

CITIBANK, N.A.,

as Trustee

 

	By:	 	 
	 	Authorized Signature	 
	 	 	 
	OR	 

 

WELLS FARGO BANK, N.A.,

        as Authenticating Agent for the Trustee

 

	By:	 	 
	 	Authorized Signature	 

 

    	 	9	 

    	 

    

[Reverse of Note]

 

 

WELLS FARGO & COMPANY

 

MEDIUM-TERM NOTE, SERIES S

 

Due Nine Months or More From Date of Issue

 

Principal at Risk Securities Linked to the
S&P 500® Index

due July 2, 2020

 

This Security is
one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to
be issued in one or more series under an indenture dated as of February 21, 2017, as amended or supplemented from time to
time (herein called the “Indenture”), between the Company and Citibank, N.A., as Trustee (herein called the
“Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series of the Securities designated as Medium-Term Notes, Series
S, of the Company. The amount payable on the Securities of this series may be determined by reference to the performance of one
or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical
measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure
or may bear interest at a fixed rate or a floating rate. The Securities of this series may mature at different times, be redeemable
at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated
in different currencies.

The Securities are
issuable only in registered form without coupons and will be either (a) book-entry securities represented by one or more Global
Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities issued to and registered
in the names of, the beneficial owners or their nominees.

The Company agrees,
to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against
a Holder of this Security.

Modification and Waivers 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all
series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority
in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting
together as a class, on

    	 	10	 

    	 

    

behalf of the Holders of all Securities
of such series, to waive compliance by the Company with those provisions of the Indenture. Certain past defaults under the Indenture
and their consequences may be waived under the Indenture by the Holders of a majority in principal amount of the Securities of
each series at the time Outstanding, on behalf of the Holders of all Securities of such series. Solely
for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders of
Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate
principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof as
the “Face Amount” hereof. Any such consent or waiver by the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

Defeasance

Section 403
and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating
to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon
compliance by the Company with certain conditions set forth therein, shall not apply to this Security. The remaining provisions
of Section 401 of the Indenture shall apply to this Security.

Authorized Denominations

This Security is
issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which is an integral
multiple of $1,000.

Registration of Transfer

Upon due presentment
for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis, Minnesota, a new
Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate
Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject to the limitations provided
therein and to the limitations described below, without charge except for any tax or other governmental charge imposed in connection
therewith.

This Security is
exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that it is unwilling
or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered
under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days after the
Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that
this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z) an Event
of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable pursuant
to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, having the same date of issuance,
Stated Maturity Date and other terms and of authorized denominations aggregating a like amount.

    	 	11	 

    	 

    

This Security may
not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a
nominee of such successor. Except as provided above, owners of beneficial interests in this Global Security will not be entitled
to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under
the Indenture.

Prior to due presentment
of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue,
and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

Obligation of the Company Absolute

No reference herein
to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the Maturity Payment Amount at the times, place and rate, and in the coin or currency, herein
prescribed, except as otherwise provided in this Security.

No Personal Recourse

No recourse shall
be had for the payment of the Maturity Payment Amount, or for any claim based hereon, or otherwise in respect hereof, or based
on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director,
as such, past, present or future, of the Company or any successor corporation, whether by virtue of any constitution, statute or
rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof
and as part of the consideration for the issuance hereof, expressly waived and released.

Defined Terms

All terms used in
this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise defined
in this Security.

Governing Law

This Security shall
be governed by and construed in accordance with the law of the State of New York, without regard to principles of conflicts of
laws.

    	 	12	 

    	 

    

ABBREVIATIONS

 

 The following abbreviations,
when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

 

 

	TEN COM	--	as tenants in common
	 	 	 
	TEN ENT	--	as tenants by the entireties
	 	 	 
	JT TEN	--	as joint tenants with right
	 	 	of survivorship and not
	 	 	as tenants in common

 

	UNIF GIFT MIN ACT --	 	 Custodian 	 
	 	(Cust)	 	(Minor)

 

	Under Uniform Gifts to Minors Act	 
	 	 
	 	 
	(State)	 

 

Additional abbreviations
may also be used though not in the above list.

 

FOR VALUE RECEIVED,
the undersigned hereby sell(s) and transfer(s) unto

 

	Please Insert Social Security or	 
	Other Identifying Number of Assignee
	 	 
	 	 

 

 

	 
	 
	 

(Please
print or type name and address including postal zip code of Assignee)

 

    	 	13	 

    	 

    

the within Security of WELLS FARGO & COMPANY
and does hereby irrevocably constitute and appoint __________________ attorney to transfer the said Security on the books of the
Company, with full power of substitution in the premises.

 

 

Dated: _________________________

 

	 	 
	 	 
	 	 
	 	 

 

 

NOTICE: The signature to this assignment must
correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement
or any change whatever.

    

 

 

 

    	 	14Exhibit 10.1

 

LICENSE
AGREEMENT NO. 529155

 

BETWEEN

 

BATTELLE
MEMORIAL INSTITUTE

 

AND

 

DARKPULSE
TECHNOLOGY HOLDINGS INC.

 

 

 

 

 

December 2018

 

 

 

 

 

 

    	 	 	 

     

    

 

License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

PATENT LICENSE AGREEMENT

 

THIS AGREEMENT made and entered into at Richland, Washington,
by and between DarkPulse Technology Holdings, Inc., having a principal place of business in New York, New York, herein called "LICENSEE",
and Battelle Memorial Institute, having a place of business in Richland, Washington, herein called "BATTELLE". Each hereinafter
referred to individually as "Party" and jointly as "Parties". This Agreement is effective on the date affixed
hereto by the Party last signing this Agreement (the "Effective Date").

 

WITNESSETH THAT:

 

WHEREAS, BATTELLE is an incorporated charitable trust exempt
from federal income taxes under Section 501(c)(3) of the United States Internal Revenue Code; and

 

WHEREAS, BATTELLE operates the Pacific Northwest National Laboratory
under management and operations contract DE-AC05-76RL01830; and

 

WHEREAS, BATTELLE has certain rights in patents relating to
the detection of specific elements; and

 

WHEREAS, LICENSEE recognizes that BATTELLE owns inventions and
intellectual property useful in the conduct of LICENSEE's business; and

 

WHEREAS, LICENSEE recognizes that its anticipated business activity
may encompass the practice of technology that requires a license under patents owned or controlled by BATTELLE; and

 

WHEREAS, LICENSEE wishes to acquire the right to practice the
inventions of such patents.

 

THEREFORE in consideration of the mutual covenants a contained
herein and intending to be legally bound hereby, the Parties agree as follows:

 

1. DEFINITIONS

 

As used herein, the following terms shall have the meanings
set forth below:

 

	A.	AFFILIATE or AFFILIATES means any entity that controls, is controlled by, or is under common control of LICENSEE where control
consists of ownership of at least fifty percent (50%) of the outstanding voting securities or other ownership interest of the entity.

 

	B.	GROSS SALES means any and all forms of consideration, monetary or otherwise, received by LICENSEE from the sale, lease, rental,
transfer, provision or other disposition of LICENSED PRODUCTS and/or LICENSED SERVICES without deduction.

 

	C.	LICENSED FIELD 1 means and is limited to explosives detection when combined with a quadrupole or ion trap mass spectrometer,
or with an ion mobility spectrometer.

 

	D.	LICENSED FIELD 2 means and is limited to illicit drug detection when combined with a quadrupole or ion trap mass spectrometer,
or with an ion mobility spectrometer.

 

 

 

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License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

	E.	LICENSED FIELD 3 means and is limited to chemical warfare agent detection when combined with a quadrupole or ion trap mass
spectrometer, or with an ion mobility spectrometer.

 

	F.	LICENSED FIELD 1 and LICENSED FIELD 2 and LICENSED FIELD 3 shall collectively be known as LICENSED FIELDS when no distinction
is desired.

 

	G.	LICENSED PROCESS means any service or activity that utilizes, incorporates or practices one or more claims of the PATENTS.

 

	H.	LICENSED PRODUCT means any and all products incorporating or utilizing one or more claims of the PATENTS.

 

	I.	LICENSED SERVICES means the provision of a LICENSED PROCESS for a third party.

 

	J.	LICENSED TERRITORY means any country in which BATTELLE has pending patent applications or issued PATENTS as set forth herein
for which LICENSEE has agreed to reimburse and reimburses BATTELLE for agreed upon patenting expenses under Article 12.

 

	K.	PATENT or PATENTS means issued patents and pending patent applications, including all divisionals, continuations (not
                                 including continuations —n-part), reissues, substitutes, and extensions thereof, together with all foreign
                                 counterparts.

 

Issued Patents

 

	Title	Country	Patent Number	Grant Date
	Method of Selective Detection of	U.S.	9,123,520	September 1, 2015
	Explosives in Mass Spectrometer	 	 	 
	or Ion Mobility Spectrometer at 	 	 	 
	Parts Per Quadrillion Level	 	 	 
	(BATTELLE IPID 30071-E, 	 	 	 
	PATENTMASTER ID 8144)*	 	 	 
	 	 	 	 
	Systems and Process for Selective Canada	2,868,115	January 2, 2018	 
	Detection of Vapor Phase	 	 	 
	Analytes (BATTELLE IPID 	 	 	 
	30071 E CA,	 	 	 
	PATENTMASTERID 8741)*	 	 	 
	 	 	 	 
	Systems and Process for Selective Germany	2834834	September 27, 2017	 
	Detection of Vapor Phase	 	 	 
	Analytes (BATTELLE IPID 	 	 	 
	30071-E DE,	 	 	 
	PATENTMASTERID 9251)*	 	 	 
	 	 	 	 
	Systems and Process for Selective	Great	2834834	September 27, 2017
	Detection of Vapor Phase	Britain	 	 
	Analytes (BATTELLE IPID	 	 	 
	30071 E GB,	 	 	 
	PATENTMASTERID 9252)*	 	 	 

 

 

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Version 3

December 21, 2018

 

	Systems and Process for Selective Australia	2013243976	August 11, 2016	 
	Detection of Vapor Phase 	 	 	 
	Analytes (BATTELLE IPID 	 	 	 
	30071 EAU,	 	 	 
	PATENTMASTERID 8740)*	 	 	 
	 	 	 	 
	Systems and Process for Selective	EPC	2834834	September 27, 2017
	Detection of Vapor Phase 	 	 	 
	Analytes (BATTELLE IPID 	 	 	 
	30071 E EP,	 	 	 
	PATENTMASTERID 8743)*	 	 	 
	 	 	 	 
	Method and apparatus for	U.S.	10,119,937	November 6, 2018
	detecting organophosphorus 	 	 	 
	compounds and illicit drugs 	 	 	 
	(BATTELLE IPID 30856-E, 	 	 	 
	PATENTMASTERID 9030)*	 	 	 

 

Patent Applications

 

	Title	Country Application Number	Date Filed	 
	Systems and Process for	PCT	PCT/US13/20530	January 7, 2013
	Selective Detection of Vapor 	 	 	 
	Phase Analytes (BATTELLE 	 	 	 
	IPID 30071 E PCT,	 	 	 
	PATENTMASTERID	 	 	 
	 	 	 	 
	8370)* (Inactive)	 	 	 
	Systems and Process for	Israel	234762	January 7, 2013
	Selective Detection of Vapor 	 	 	 
	Phase Analytes (BATTELLE 	 	 	 
	IPID 30071 E IL,	 	 	 
	PATENTMASTERID 8744)*	 	 	 
	 	 	 	 
	Systems and Process for	Mexico	MX/a/2014/011860	January 7, 2013
	Selective Detection of Vapor 	 	 	 
	Phase Analytes (BATTELLE 	 	 	 
	IPID 30071 E MX,	 	 	 
	PATENTMASTERID 8742)*	 	 	 
	 	 	 	 
	Method and apparatus for	PCT	PCT/US2017/028758	April 21, 2017
	detecting organophosphorus 	 	 	 
	compounds and illicit drugs 	 	 	 
	(BATTELLE IPID 30856-E PCT, 	 	 	 
	PATENTMASTERID 9271)*	 	 	 
	 	 	 	 
	Method and apparatus for	Australia PCT/US2017/028758	April 21, 2017	 
	detecting organophosphorus	 	 	 

 

 

 

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December 21, 2018

 

	compounds and illicit drugs 	 	 	 
	(BATTELLE IPID 30856-E AU, 	 	 	 
	PATENTMASTERID 9635)*	 	 	 
	 	 	 	 
	Method and apparatus for	Canada PCT/US2017/028758	April 21, 2017	 
	detecting organophosphorus 	 	 	 
	compounds and illicit drugs 	 	 	 
	(BATTELLE IPID 30856-E CA, 	 	 	 
	PATENTMASTERID 9636)*	 	 	 
	 	 	 	 
	Method and apparatus for	EPC	PCT/US2017/02XXX	April 21, 2017
	detecting organophosphorus 	 	 	 
	compounds and illicit drugs 	 	 	 
	(BATTELLE IPID 30856-E EP, 	 	 	 
	 	 	 	 
	PATENTMASTERID 9637)*	 	 	 
	Method and apparatus for	Mexico PCT/US2017/028XX	April 21, 2017	 
	detecting organophosphorus 	 	 	 
	compounds and illicit drugs 	 	 	 
	(BATTELLE IPID 30856-E MX, 	 	 	 
	PATENTMASTERID 9638)*	 	 	 
	 	 	 	 
	Method and apparatus for	Israel	PCT/US2017/028XX	April 21, 2017
	detecting organophosphorus 	 	 	 
	compounds and illicit drugs 	 	 	 
	(BATTELLE IPID 30856-E IL, 	 	 	 
	PATENTMASTERID 9639)*	 	 	 
	 	 	 	 
	Method and apparatus for	Singapore PCT/US2017/028XX	April 21, 2017	 
	detecting organophosphorus 	 	 	 
	compounds and illicit drugs 	 	 	 
	(BATTELLE IPID 30856-E SG, 	 	 	 
	PATENTMASTERID 9640)*	 	 	 

 

*These inventions were made with government support under Contract
Number DE-AC05-76RL01830 awarded by the U.S. Department of Energy. The government has certain rights in the inventions.

 

	L.	SUBLICENSEE means any third party whom LICENSEE licenses, under the provisions of Article 7, the BATTELLE rights conveyed by
this Agreement.

 

	M.	SUBLICENSING REVENUES means all fees, lump sum payments, milestone payments, annual fees and the like received by LICENSEE
from SUBLICENSEE as consideration for a sublicense of the rights conveyed hereunder; provided, however, that SUBLICENSING REVENUES
shall not include running royalties.

 

2. LICENSE GRANT

 

	A.	(i) BATTELLE hereby grants to LICENSEE, to the extent of LICENSED FIELD 1 and LICENSED FIELD 2 and the LICENSED TERRITORY, a nonexclusive
commercial license to make, have made, use, import and sell LICENSED PRODUCTS and LICENSED SERVICES and practice LICENSED PROCESSES.

 

 

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License Agreement
Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

 

(ii) BATTELLE hereby grants to LICENSEE, to
the extent of LICENSED FIELD 3 and the LICENSED TERRITORY, an exclusive commercial license to make, have made, use, import and
sell LICENSED PRODUCTS and LICENSED SERVICES and practice LICENSED PROCESSES.

 

	B.	All other rights not expressly granted in this Agreement are reserved by BATTELLE. This reservation includes but is not limited
to BATTELLE's right to (i) practice the PATENTS for research, development and demonstration purposes for itself and others; (ii)
nonexclusively license the PATENTS to nonprofit institutions for research, development, and demonstration purposes; (iii) exclusively
license the PATENTS in fields and territories not licensed herein and (iv) publish scientific and technical articles related to
the PATENTS.

 

	C.	This license grant is subject to any rights belonging to the United States Government, whether or not presently asserted, including
but not limited to those rights set forth in 35 USC §200, et seq.

 

3. CONSIDERATION

 

	A.	In consideration for the License Grant described in Article 2, LICENSEE agrees to comply with all the provisions of this Agreement,
to pay all fees, costs, and meet all other requirements set forth in this Agreement.

 

	B.	LICENSEE shall pay to BATTELLE the nonrefundable total sum of Thirty Thousand United States Dollars ($30,000 US) as a license
fee with credit given for the previously paid Option Fee, payable as follows:

 

(i)           
Fifteen Thousand United States Dollars ($15,000 US) at the time of execution of this Agreement; and

 

(ii)           Ten
Thousand United States Dollars ($10,000 US), due no later than ninety (90) days following the Effective Date, after credit is
applied for the previously-paid Option Fee in the amount of Five Thousand United State Dollars ($5,000 US).

 

This license fee is nonrefundable, not creditable
against any royalties and is not an advance on royalties.

 

	C.	LICENSEE shall pay to BATTELLE a royalty of six percent (6%) of GROSS SALES.

 

	D.	LICENSEE shall pay to BATTELLE twenty-five percent (25%) of all SUBLICENSING REVENUES.

 

	E.	If as a result of third party litigation related to this Agreement financed by LICENSEE, damages, royalties, or other consideration
is received by LICENSEE, BATTELLE shall receive the greater of: (i) a royalty as set forth above as applied to the level of infringing
sales determined by a court or as a result of settlement of such claims, or (ii) twenty-five percent (25%) of all monies received
by LICENSEE, after LICENSEE deducts all reasonable documented out-of-pocket costs for prosecuting such litigation. Any award specifically
reimbursing out-of-pocket litigation costs or fees will be exempted from this provision.

 

	F.	No royalty shall be paid to BATTELLE for the practice of any PATENT on behalf of the U.S. Government for which the U.S. Government
has a royalty-free right to use such PATENT.

 

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License Agreement
Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

4. MINIMUM ROYALTIES

 

	A.	LICENSEE shall pay to BATTELLE royalties as stated in Article 3, but in no event shall royalties for a calendar year be less
than the amounts set forth in Table 1, below, during each of the calendar years indicated. LICENSEE shall pay to BATTELLE
on the last day of the following January the amount (if any) required to satisfy the minimum royalty obligation for the preceding
calendar year. If LICENSEE does not pay the amount (if any) required to be paid hereunder to satisfy the minimum royalty obligation,
BATTELLE may, in its sole discretion, elect to terminate this Agreement or waive this obligation in whole or in part.

 

Table 1.

 

	Calendar Year	Minimum Royalties 

US $ Per Calendar Year
	2019	$10,000
	2020	$30,000
	2021	$50,000
	2022 and each calendar year thereafter during the term of this Agreement.	$80,000

 

 

	B.	If this Agreement expires or is terminated for any reason, except for breach of contract by BATTELLE, during any year that
minimum royalties are due to BATTELLE, upon expiration or termination, LICENSEE shall immediately pay to BATTELLE the proportionate
amount of minimum royalties owed to BATTELLE that represents that portion of the year elapsed prior to expiration or termination.
For example, if LICENSEE terminates without breach by BATTELLE after the expiration of three (3) months of the new year, LICENSEE
shall pay to BATTELLE one-fourth (1/4) of the yearly minimum royalty due for that year.

 

5. DILIGENCE

 

	A.	Separate from LICENSEE's obligation to pay minimum royalties set forth above, subject to the timelines set forth below, LICENSEE
shall complete the following diligence requirements. In the event that LICENSEE fails to complete these requirements BATTELLE may,
in its sole discretion, waive this obligation in whole or in part, convert the exclusive grant of Paragraph 2A(ii) to nonexclusive,
extend the due dates or terminate this Agreement.

 

	B.	Minimum Diligence Requirements:

 

(i)           
No later than nine (9) months following the Effective Date, LICENSEE shall develop and demonstrate a working prototype of
a LICENSED PRODUCT in Licensed Field 1.

 

(ii)           
No later than nine (9) months following the Effective Date, LICENSEE shall develop and demonstrate a working prototype of
a LICENSED PRODUCT in Licensed Field 3.

 

 

 

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License Agreement Number 529155

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Version 3

December 21, 2018

 

(iii)           
No later than eighteen (18) months following the Effective Date, LICENSEE shall develop and demonstrate a working prototype
of a LICENSED PRODUCT in Licensed Field 2.

 

(iv)            
No later than eighteen (18) months following the Effective Date, LICENSEE shall complete a commercial sale of a LICENSED
PRODUCT in LICENSED FIELD 1.

 

(v)              
No later than twenty-four (24) months following the Effective Date, LICENSEE shall complete a commercial sale of a LICENSED
PRODUCT in LICENSED FIELD 2.

 

(vi)            
No later than twenty-four (24) months following the Effective Date, LICENSEE shall complete a commercial sale of a LICENSED
PRODUCT in LICENSED FIELD 3.

 

6. U.S. MANUFACTURING

 

In order to enhance U.S. industrial competitiveness,
LICENSEE shall ensure that

 

LICENSED PRODUCTS embodying the PATENTS which
are manufactured for use or sale in the United States under the license granted hereunder shall be substantially manufactured in
the United States.

 

7. SUBLICENSING

 

	A.	LICENSEE shall have the right to sublicense in LICENSED FIELD 3 and LICENSED TERRITORY so long as the rights granted in LICENSED
FIELD 3 remain exclusive. Sublicenses shall be licenses that are transferable only from LICENSEE to BATTELLE. Sublicenses shall
be subject to the substantial US manufacturing requirements of Article 6.

 

	B.	BATTELLE shall have the right to disapprove the selection of any sublicensee prior to the execution of any sublicense granted
hereunder. Prior to sublicense execution, LICENSEE shall provide BATTELLE with a certification that the sublicense complies with
the terms and conditions of this Agreement. LICENSEE shall provide BATTELLE with a copy of each executed sublicense, and shall
not grant to its sublicensees any BATTELLE rights not conveyed by this Agreement. The royalty paid to BATTELLE under sublicenses
for all monies or other consideration of whatever kind received by LICENSEE shall be no less than that set forth for LICENSEE in
Article 3, above. Additionally, BATTELLE will receive twenty-five percent (25%) of all non-royalty consideration received by LICENSEE
as a result of its sublicensing activities.

 

	C.	If this Agreement is terminated for any reason, except breach of contract by BATTELLE, LICENSEE shall immediately assign all
of its right, title, and interest to all sublicenses to BATTELLE, including the right to receive income.

 

	D.	LICENSEE will collect and guarantee all payments which are due to BATTELLE as a result of LICENSEE sublicensing its rights
under the provisions herein. If LICENSEE receives any non-cash consideration as a result of its sublicensing activities, LICENSEE
shall make its payments which are due to BATTELLE based upon the fair market value of the non-cash consideration that is due to
LICENSEE.

 

 

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License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

8. REPORTS AND PAYMENTS

 

	A.	Not later than the last day of each January and July, LICENSEE shall furnish to BATTELLE a written statement in a form provided
by BATTELLE (Attachment 1) to determine the amounts due and the appropriateness of the royalties paid pursuant to Article 3 for
the periods ended the last days of the preceding December and June, respectively, and shall pay to BATTELLE all amounts due to
BATTELLE. Such amounts are due at the dates the statements are due. If no amount is accrued during any such period, a written statement
to that effect shall be furnished. All written statements provided to BATTELLE by LICENSEE shall be executed by an individual having
actual authority to bind LICENSEE.

 

	B.	For the initial twenty-four (24) months following the Effective Date, not later than the last day of each January, LICENSEE
shall furnish to BATTELLE, at the address set forth in Article 26, a written progress report summarizing LICENSEE's progress towards
commercializing the LICENSED PRODUCTS during the prior calendar year. Such progress report shall include the following information,
where relevant: progress in the development and commercial deployment of the LICENSED PRODUCT; key business achievements; projects
or transactions that resulted from, or were enabled by, the LICENSED PRODUCT; and quantitative or qualitative information that
characterizes the contribution of the LICENSED PRODUCT to the U.S. economy. Such report will be provided to BATTELLE solely to
enable BATTELLE to understand LICENSEE's progress towards commercializing the LICENSED PRODUCT and to assist BATTELLE in determining
the contribution of the LICENSED PRODUCT in improving LICENSEE's business.

 

	C.	Royalties earned on sales by LICENSEE or occurring under sublicenses granted pursuant to this Agreement in any country outside
the United States shall not be reduced by LICENSEE for any taxes, fees, or other charges imposed by the government of such country
on the payment of royalty income.

 

	D.	Payments provided for in this Agreement, shall when overdue, bear interest at a rate per annum equal to 5% percent running
from the time such payment is due until payment is made to BATTELLE.

 

	E.	All payments made to BATTELLE under this Agreement are nonrefundable.

 

	F.	All payments will be made to BATTELLE in U.S. dollars either by check or wire transfer. If payments are made by wire transfer,
such transfers shall be in accordance with the following wire instructions; unless and until written notice is provided by BATTELLE
of a change in the wire instructions. If LICENSEE makes payments to BATTELLE by Electronic Funds Transfers, LICENSEE shall also
provide a written report to BATTELLE to the address set forth in Article 26 as required in Paragraph 8A, above, along with a statement
indicating that payments have been made by Electronic Funds Transfers. Such payments shall be made to the following account (for
international transfers, use Swift Code: xxxxxxxxxxx):

 

U. S. Bank of Washington

Account Name: Battelle Memorial Institute

ABA No. xxxxxxxxx

Account No. xxxxxxxxxxxx

 

 

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License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

9. REPRESENTATIONS,
HOLD HARMLESS AND LIMITATION OF BATTELLE'S LIABILITY

 

	A.	This Agreement is entered into by BATTELLE in its private capacity. It is understood and agreed that the U.S. Government is not
a party to this Agreement and in no manner whatsoever shall be liable for nor assume any responsibility or obligation for any
claim, cost or damages arising out of or resulting from this Agreement or the subject matter licensed.

 

	B.	(i) Nothing in this Agreement shall be deemed to be a representation or warranty, by BATTELLE, or the U.S. Government, as to
the validity of any of the PATENTS or the accuracy, safety or usefulness for any purpose, of any technical information, techniques,
or practices at any time made available by BATTELLE.

 

(ii)             
Neither the U.S. Government nor BATTELLE nor any affiliated company of BATTELLE shall have any liability whatsoever
to LICENSEE or any other person for or on account of any injury, loss, or damage, of any kind or nature sustained by, or any damage
assessed or asserted against, or any other liability incurred by or imposed upon LICENSEE or any other person, arising out of or
in connection with or resulting from (1) the production, use or sale of any apparatus or product, or the practice of the PATENTS
by LICENSEE; (2) the use by LICENSEE of any technical information, techniques, or practices disclosed by BATTELLE; or (3) any advertising
or other promotional activities by LICENSEE with respect to any of the foregoing; and

 

(iii)           
LICENSEE shall hold the U.S. Government, BATTELLE, and any affiliated company of BATTELLE, harmless in the event
the U.S. Government, BATTELLE, or any affiliated company of BATTELLE, is held liable as a result of actions by LICENSEE as set
forth in Paragraphs 9B(ii)(1), 9B(ii)(2), and 9B(ii)(3) above. This includes but is not limited to indemnification for any product
liability resulting from the commercialization and utilization of the Licensed Patents by LICENSEE.

 

(iv)            
Further, LICENSEE agrees to assume the defense of (1) any suit brought against BATTELLE or any affiliated
company of BATTELLE resulting from any action of LICENSEE undertaken under this Agreement, and (2) any action brought against LICENSEE
or 11 A TTFT T recillting from any action of LICENSEE relating to the liecn5cd PATENTS.

 

(v)              
BATTELLE represents that it has the rights to grant all of the rights granted herein, except as to such rights as the Government
of the United States of America may have or may assert.

 

	C.	LICENSEE understands and acknowledges that the subject matter of this Agreement has not yet been commercially demonstrated,
and agrees to accept the risks incident to designing, manufacturing and operating a nascent technology.

 

	D.	LICENSEE acknowledges that LICENSEE has evaluated the PATENTS and deems them suitable for LICENSEE's purposes for entering into
this Agreement.

 

	E.	Nothing in this Agreement may be construed as: a warranty or representation by BATTELLE as to the validity of any of BATTELLE's
rights in the PATENTS; a warranty or representation that anything made, used, sold or otherwise disposed of under any license
granted in this Agreement is or will be free from infringement of any patents other than PATENTS; a grant by implication, estoppel or
otherwise of any license or rights under any patents of BATTELLE other than PATENTS, regardless of whether such patents are dominate
or subordinate to PATENTS; or an obligation to furnish any information not provided in PATENTS.

 

 

 

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License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

 

10. TERMINATION

 

	A.	This Agreement will terminate upon the expiration of the last to expire of the PATENTS included herein, or upon the abandonment
of the last to be abandoned of any patent applications if no PATENTS have issued, or a final adjudication of invalidity of all
PATENTS included herein, whichever is later, unless this Agreement is sooner terminated.

 

	B.	LICENSEE may terminate this Agreement at any time upon sixty (60) days written notice in advance to BATTELLE. LICENSEE shall thereafter
discontinue the practice and use of the licensed PATENTS.

 

	C.	Except as provided below in Paragraph 10D, if either Party shall be in breach of any obligation hereunder, the other Party may
terminate this Agreement by giving Notice of Default by personal delivery, telefax, electronic mail transmission or by United
States mail, express mail, or courier service, with postage or fees prepaid, to the Party in breach, specifying the basis for
default. Notice by personal delivery, telefax or electronic mail is deemed to have been given when delivered or transmitted. Notice
sent by U.S. mail, express mail or courier service is deemed to have been given when mailed. If within sixty (60) days after the
receipt of such Notice of Default, the Party in breach shall remedy the condition forming the basis for default, this Agreement
shall continue in full force. If, however, the default is not cured within this sixty (60) day period, then this license shall
finally terminate and LICENSEE shall be required to thereafter discontinue the practice and use of the licensed PATENTS. This
sixty (60) day cure period shall not be available to LICENSEE upon a third Notice of Default during the life of this Agreement
(unless otherwise provided in the Notice of Default), and this Agreement shall be finally terminated. LICENSEE understands and
acknowledges that the remedy set forth herein is not available to LICENSEE if LICENSEE's default stems from a failure to meet
the minimum diligence requirements of Article 5.

 

	D.	If any report or payment due to BATTELLE is overdue for a third time, then a Notice of Termination may be sent immediately and
no Notice of Default or sixty (60) day cure provision will be applicable.

 

	E.	Within thirty (30) days of the termination of this Agreement LICENSEE shall furnish a final report containing the information
set forth in Paragraphs 8A and 8B as well as payment of any unpaid royalties to the address set forth in Article 26. If this Agreement
is for any reason terminated before all of the payments required to be made by LICENSEE as set forth herein have been made to
BATTELLE, LICENSEE shall immediately pay to BATTELLE any unpaid amounts due as of the date of such termination even though the
due dates provided in Articles 8 and 12 may not have been reached.

 

	F.	LICENSEE hereby agrees that, in the event LICENSEE by its own actions, or the action of any of its shareholders or creditors,
files or has filed against it (with an order for relief being entered) a case under the Bankruptcy Code of 1978, as previously
or hereafter amended, BATTELLE shall be entitled to relief from the
automatic stay of Section 362 of Title 11 of the U.S. Code, as amended, on or against the exercise of the rights and remedies
available to BATTELLE and LICENSEE hereby waives the benefits of such automatic stay and consents and agrees to raise no objection
to such relief.

 

 

 

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License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

 

	G.	Termination of this Agreement shall not extinguish any rights of BATTELLE or obligations of LICENSEE accrued hereunder at the
time of termination; and obligations undertaken independent of the license granted under Article 2 shall survive termination to
the extent necessary to permit their complete fulfillment or discharge.

 

11. LITIGATION

 

	A.	LICENSEE shall notify BATTELLE of any suspected infringement of the PATENTS in the LICENSED FIELDS and the LICENSED TERRITORY,
and shall provide BATTELLE with any evidence of such infringement(s).

 

	B.	(i) After LICENSEE provides probative evidence of an actual infringement of the PATENTS in the LICENSED FIELDS and LICENSED TERRITORY
which is causing LICENSEE actual economic harm:

 

1.       
The Parties shall meet and confer to discuss potential actions to be taken to abate the infringement, up to and including
full legal action in a court of competent jurisdiction. In the event that agreement is reached upon a particular course of action
each party will be obligated to meet its' specified agreed upon responsibilities. In the event that the Parties cannot agree upon
a designated course of action, BATTELLE may instruct LICENSEE in writing to take a designated course of action within a designated
period of time to abate infringement in LICENSED FIELD 3.

 

2.       In the event that LICENSEE fails to complete either the agreed upon responsibilities or the instructed course of action
within the designated period of time, then BATTELLE may convert the license to non-exclusive and proceed to take whatever action
it deems appropriate to abate the infringement.

 

3.       
In the event that BATTELLE neither complies with its duties under the agreed upon plan, nor takes any action to abate the
infringement on its own, then royalties due under this Agreement will be reduced by twenty five percent (25%) until the infringement
is abated.

 

(ii) Each Party agrees to reasonably assist
the other Party with any legal action undertaken to abate the infringement. Costs for proceeding with such legal actions will be
borne by the Party leading the action and recovery of damages will be kept by that Party unless otherwise agreed to in writing.
The Party leading any legal action will reimburse the other Party for any reasonable out-of-pocket expenditures incurred by that
Party in providing assistance to the lead Party. If the LICENSEE leads the legal action and obtains a recovery, the royalty provisions
of Article 3 will apply to such recovery whether such recovery is denoted as "royalties", "damages", "release"
from prior acts, or any other designation. However, any specific reimbursement recovery for out-of-pocket costs or attorney's fees
from a legal proceeding will not be subject to the royalty provisions of Article 3.

 

C. Challenges.

 

 

    	 	11	 

     

    

 

License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

	(i)	If LICENSEE or any of LICENSEE's AFFILIATES, subsidiaries, joint ventures, or other similarly situated persons, entities, or organizations
initiates an action or proceeding or assists any third party initiating an action or proceeding against BATTELLE seeking a declaration
or ruling that any claim of the PATENTS is invalid or unenforceable:

 

	 	1.	during the pendency of any such action or proceeding, the royalty rates and annual minimum royalty due under this Agreement shall
double;

 

	 	2.	if the outcome of such action or proceeding results in a determination that any issued claim of the PATENTS is found to be valid
and infringed by LICENSED PRODUCTS, or LICENSED PROCESS then the royalty rates and annual minimum royalty due under this Agreement
shall triple and LICENSEE shall pay BATTELLE's costs incurred for defending the validity of the PATENTS, including but not limited
to attorney's fees, expert witness fees, court costs, and other costs incidental to such defense;

 

	 	3.	LICENSEE shall have no right to recoup, claim, or otherwise recover any royalties, fees, or other forms of consideration paid
to BATTELLE as required in this Agreement before such action or proceeding is initiated or during the period in which the action
or proceeding is pending or under appeal; and

 

	 	4.	LICENSEE shall pay royalties, fees, or any forms of consideration required under this Agreement directly to BATTELLE during the
pendency of such action or proceeding and shall not pay any deposits or payments of royalties, fees, or any forms of consideration
required under this Agreement into any escrow account.

 

	(i)	LICENSEE shall provide BATTELLE with at least ninety (90) days written notice to the address set forth in Article 26 before LICENSEE
or any of LICENSEE's AFFILIATES, subsidiaries, joint ventures, or other similarly situated persons, entities, or organizations
initiates any action or proceeding or assists any third party initiating an action or proceeding against BATTELLE seeking a declaration
or ruling that any claim of the PATENTS is invalid or unenforceable or that LICENSED PRODUCTS or LICENSED PROCESSES do not infringe
any claim of the PATENTS. LICENSEE shall include with its written notice to BATTELLE a copy of all relevant prior art which will
form the basis for arguments and causes advanced in such action or proceeding, together with an explanation of the grounds for
these arguments or causes. Failure to provide such notice shall be considered a breach of the agreement and provide grounds for
automatic termination of the license.

 

	(ii)	Any action or proceeding filed by LICENSEE or any of LICENSEE's AFFILIATES, subsidiaries, joint ventures, or other similarly situated
persons, entities, or organizations or any third party assisted thereby seeking a declaration or ruling that any claim of the
PATENTS is invalid or unenforceable or that LICENSED PRODUCTS or LICENSED PROCESSES do not infringe any claim of the PATENTS shall
be litigated exclusively in the U.S. District Court for the Eastern District of Washington situated in Richland, Washington, and
the Parties hereby agree to submit to the exclusive jurisdiction of such court and waive any objection to venue for such purposes.

 

 

    	 	12	 

     

    

 

License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

	(iii)	This Paragraph 11C, "Challenges," shall be included in any sublicenses at any level provided under the authority of
this Agreement

 

12. PATENTS

 

	A.	BATTELLE will consult with LICENSEE prior to making any patent filings. However, BATTELLE retains the sole unfettered right and
discretion to make any and all decisions regarding patenting matters. This includes the sole right to determine whether or not,
and where, to file a patent application, to abandon the prosecution of any PATENT or patent application, or to discontinue the
maintenance of any PATENT or patent application. This also includes the power to make any decision regarding prosecuting, reexamining,
or participating in any proceeding before a patent office, domestic or foreign. During the term of this Agreement, all reasonable
expenses incurred by BATTELLE for the activities described in this Paragraph 12A consented to in writing by LICENSEE shall be
reimbursed to BATTELLE by LICENSEE on a pro-rata basis together with other licensees within sixty (60) days of LICENSEE's receipt
of notice setting forth such expenses. For example, if there is a second licensee required to pay such PATENT costs, then each
licensee shall be responsible for paying fifty percent (50%) of such expense.

 

	B.	If LICENSEE disagrees with a patenting decision and elects not to pay its share of expenses incurred by BATTELLE under Paragraph
12A for a particular PATENT, LICENSEE shall so notify BATTELLE in writing within a reasonable amount of time after it has been
notified by BATTELLE of such decision. Unless otherwise agreed, LICENSEE shall be obligated to reimburse BATTELLE for its share
of expenses for such PATENT costs up to the date BATTELLE receives such written notification from LICENSEE and upon BATTELLE's
receipt of such notice by LICENSEE, LICENSEE's rights related to such PATENT in the applicable country(ies) shall be terminated,
and such PATENT in such country(ies) shall be removed from this Agreement.

 

13. RECORDS

 

	A.	LICENSEE shall keep accurate records of all operations affecting LICENSEE's duties and obligations hereunder, including but not
limited to payment of royalties and fees, and shall permit BATTELLE or its duly authorized agent to inspect all such records and
to make copies of or extracts from such records during regular business hours no more than twice per year throughout the term
of this Agreement and for a period of not less than three (3) years thereafter. BATTELLE shall bear its costs to conduct such
audit; provided, however, LICENSEE shall reimburse BATTELLE for BATTELLE's and/or its duly authorized agent's actual costs to
conduct the audit if as part of the audit it is deemed that LICENSEE has failed to perform its material obligations under this
Agreement (including its underreporting of GROSS SALES and earned royalties in a reporting period by ten percent (10%) or more).

 

	B.	If such audit shows an underreporting or underpayment in excess of ten percent (10%) in a reporting period as set forth in Paragraph
13A, then LICENSEE shall pay the cost of such audit as set forth in Paragraph 13A, as well as any other additional sum that would
have been payable to BATTELLE had LICENSEE reported correctly, plus interest on said sum at the rate set forth and owing in accordance
with Paragraph 8D.

 

 

 

    	 	13	 

     

    

 

License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

14. ASSIGNABILITY

 

	A.	Upon written consent of BATTELLE, such consent not to be unreasonably withheld, LICENSEE may assign its rights under this Agreement
in connection with a merger or consolidation or to a third party purchaser of all or substantially all of the assets of LICENSEE
relative to the rights granted hereunder. BATTELLE may assign its rights hereunder.

 

	B.	Except in connection with an assignment to Darkpulse, Inc. or to a wholly owned subsidiary of Darkpusle, Inc., in the event of
any assignment of this Agreement by LICENSEE, LICENSEE shall pay to BATTELLE, at the address set forth in Article 26, a nonrefundable
assignment fee of Two Hundred Fifty Thousand United States Dollars ($250,000 US).

 

15. REFORM

 

	A.	The Parties agree that if any part, term, or provision of this Agreement shall be found illegal or in conflict with any valid
controlling law, the validity of the remaining provisions shall not be affected thereby.

 

	B.	In the event the legality of any provision of this Agreement is brought into question because of a decision by a court of competent
jurisdiction of any country in which this Agreement applies, BATTELLE, by written notice to LICENSEE, may revise the provision
in question or may delete it entirely so as to comply with the decision of said court.

 

16. NO ENDORSEMENT;
USE OF BATTELLE'S NAME; USE OF PNNL

 

BATTELLE does not endorse products or services.
Therefore, LICENSEE agrees that unless required by law, or unless otherwise agreed in advance in writing by BATTELLE, LICENSEE
will not use or imply the name "BATTELLE", or any affiliated company of BATTELLE, or "Pacific Northwest National
Laboratory®", or "PNNL", or associated trademarks, or other trade dress, or use BATTELLE or PNNL reports, for
advertising, promotional purposes, raising of capital, recommending investments, or in any way that implies endorsement by BATTELLE
or PNNL. However, LICENSEE may publicly disclose the fact that an agreement has been entered into with BATTELLE, including the
name of BATTELLE. LICENSEE may disclose in a factual manner that is accurate and not misleading, material facts pertaining to the
nature of this Agreement to the extent such disclosure complies with or is required by applicable U.S. Federal and state securities
and other laws or the rules and regulations of any public stock exchange, provided that such disclosure does not, in whole or in
part, imply any endorsement by BATTELLE or PNNL. LICENSEE further agrees to indemnify and hold BATTELLE, its directors, officers,
agents and employees harmless for any damage, loss, claim or suit arising from or relating to LICENSEE's use of the BATTELLE name.

 

17. WAIVER AND ALTERATION

 

	A.	The waiver of a breach hereunder may be effected only by a writing signed by the waiving Party and shall not constitute a waiver
of any other breach.

 

 

    	 	14	 

     

    

 

License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

	B.	A provision of this Agreement may be altered only by a writing signed by both Parties, except as provided in Article 15, above.

 

	C.	(i) To amend this Agreement in a manner that alters any of BATTELLE's rights or LICENSEE's duties under this Agreement, LICENSEE
shall provide BATTELLE with a written request to amend this Agreement at least thirty (30) calendar days before BATTELLE's rights
or LICENSEE's duties accrue. LICENSEE's request shall: (1) specifically identify the clauses to be amended; (2) identify the requested
amendments; and (3) provide BATTELLE with documentary evidence that the requested amendments are in BATTELLE's and LICENSEE's
best interests.

 

(ii)           
If BATTELLE determines that any or all of LICENSEE's requested amendments are in the Parties' best interests, then the Parties
shall initiate good faith negotiations to address the amendments consistent with BATTELLE's determination. Such negotiations shall
conclude within ninety (90) days after the date BATTELLE actually receives LICENSEE's request to amend the Agreement as set forth
above in Paragraph 17C(i) (the "Renegotiation Period"). The Parties shall enter into these negotiations with the understanding
that they may not reach mutually acceptable terms within the Renegotiation Period. BATTELLE's rights shall continue to accrue and
LICENSEE's obligations shall remain in force during the Renegotiation Period.

 

(iii)           
If BATTELLE and LICENSEE agree to mutually acceptable terms during the Renegotiation Period, then such renegotiated terms
shall be reflected in a formal amendment of this Agreement executed by both BATTELLE and LICENSEE and shall apply to any of BATTELLE's
rights or LICENSEE's obligations that accrue during the Renegotiation Period or at any time thereafter during the remaining term
of this Agreement.

 

(iv)              
If BATTELLE and LICENSEE do not agree to mutually acceptable terms during the Renegotiation Period then BATTELLE may enforce
the original terms and conditions of this Agreement or rely upon other remedies as permitted by the terms of this Agreement.

 

	D.	LICENSEE acknowledges that BATTELLE, by virtue of its status as an incorporated charitable trust exempt from federal income taxes
under Section 501(c)(3) of the Internal Revenue Code, cannot renegotiate any terms of this Agreement in a manner which may create
an impermissible private benefit or private inurement.

 

18. MARKING

 

LICENSEE shall place in a conspicuous location on any LICENSED
PRODUCT made or sold under any PATENT coming with this Agreement, a patent notice in accordance with the laws concerning the marking
of patented articles. However, in no event shall LICENSEE mark any LICENSED PRODUCT made or sold under this Agreement with an expired
licensed PATENT.

 

19. IMPLEMENTATION

 

Each Party shall execute any instruments necessary to implement
the provisions of this Agreement.

 

 

    	 	15	 

     

    

 

License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

20. CONSTRUCTION

 

This Agreement shall be construed in accordance
with the laws of the State of Washington of The United States of America and in the English language, and any action brought to
enforce any provision or obligation hereunder shall be brought in a court of competent jurisdiction in the State of Washington.

 

21. EXPORTATION OF TECHNICAL INFORMATION

 

LICENSEE represents and warrants that it shall not export from
The United States of America directly or indirectly, any technical information (or the direct product thereof) furnished to LICENSEE
either directly or indirectly by BATTELLE, without first complying with all requirements of the Export Administration Regulations,
including the requirement for obtaining any export license, if applicable. LICENSEE agrees to indemnify, defend and hold harmless
BATTELLE, its officers, agents and employees from all liability involving the violation of such export regulations, either directly
or indirectly, by LICENSEE.

 

22. CERTIFICATION

 

LICENSEE hereby certifies that no principal
of LICENSEE has been an employee of BATTELLE or any of its affiliated companies in the two (2) years prior to the date of execution
of this Agreement.

 

23. DISCLAIMER

 

NEITHER BATTELLE, THE UNITED STATES DEPARTMENT OF ENERGY
(DOE), NOR PERSONS ACTING ON THEIR BEHALF MAKE ANY WARRANTY, EXPRESS OR IMPLIED: (1) WITH RESPECT TO THE MERCHANTABILITY, ACCURACY,
COMPLETENESS OR USEFULNESS OF ANY SERVICES, MATERIALS, LICENSED PATENTS, INVENTIONS OR INFORMATION FURNISHED HEREUNDER; (2) THAT
THE USE OF ANY SUCH SERVICES, MATERIALS, LICENSED PATENTS, OR INFORMATION WILL NOT INFRINGE PRIVATELY OWNED RIGHTS; (3) THAT THE
SERVICES, MATERIALS, LICENSED PATENTS, OR INFORMATION FURNISHED HEREUNDER WILL NOT RESULT IN INJURY OR DAMAGE WHEN USED FOR ANY
PURPOSE; OR (4) THAT THE SERVICES, MATERIALS OR INFORMATION FURNISHED HEREUNDER WILL ACCOMPLISH THE INTENDED RESULTS OR ARE SAFE
FOR ANY PURPOSE, INCLUDING THE INTENDED OR PARTICULAR PURPOSE. FURTHERMORE, BATTELLE AND THE DOE HEREBY SPECIFICALLY DISCLAIM ANY
AND ALL WARRANTIES, EXPRESS OR IMPLIED, FOR ANY PRODUCTS MANUFACTURED, USED OR SOLD BY LICENSEE, THEIR AFFILIATES, ASSIGNS OR SUBLICENSEES.
NEITHER BATTELLE NOR THE DOE SHALL BE LIABLE FOR CONSEQUENTIAL, SPECIAL, OR INCIDENTAL DAMAGES IN ANY EVENT.

 

 

    	 	16	 

     

    

 

License Agreement
Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

24. NO PRESUMPTION

 

No provision of this Agreement shall be interpreted
for or against any Party to this Agreement on the basis that that Party was the drafting Party of the provision and no presumption
or burden of proof shall arise disfavoring or favoring any Party by virtue of the authorship of any of the provisions of this Agreement.

 

25. ENTIRE UNDERSTANDING

 

This Agreement represents the entire understanding
between the Parties, and supersedes all other agreements, express or implied, between the Parties concerning the subject matter
of this Agreement. Specifically, no future representations made by either Party shall be effective to alter any provision herein
unless such representation shall be made in writing by an authorized representative of such Party having the power to do so.

 

26. ADDRESSES

 

For the purpose of all written communications
between the Parties, their addresses shall be:

 

DarkPulse Technology Holdings Inc.

Attention Thomas Cellucci and Dennis O'Leary

350th 5th Avenue, 59th
Floor

New York, New York 10018

Telephone: 800-436-1436

Email: tcellucci@darkpulse.com and doleary@darkpulse.com

 

Battelle Memorial Institute

Technology Deployment and Outreach

Attention PNNL IP Compliance Office

P.O. Box 999, Mailstop K1-71

902 Battelle Blvd.

Richland, WA 99352

Telephone: (509) 375-2075

Fax: (509) 372-4589

Email: complianceoffice@pnnl.gov 

 

or any other addresses of which either Party
shall notify the other Party in writing.

 

 

 

    	 	17	 

     

    

License Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December 21, 2018

 

27. EXPIRATION

 

The offer to execute this Agreement shall expire
if this Agreement is not signed by both Parties and returned to BATTELLE on or before January 11, 2019.

 

IN WITNESS WHEREOF, each of the Parties hereto
has caused this Agreement to be executed in duplicate originals by its duly authorized officers or representatives.

 

 

	BATTELL MEMORIAL INSTITUTE	DARKPULSE TECHNOLOGY HOLDINGSINC.
	 	 
	BY: /s/ Peter C. Christensen	BY: /s/ Thomas A. Cellucci
	PRINTED NAME: Peter C. Christensen	PRINTED NAME; Thomas A. Cellucci, PhD, MBA
	TITLE: Manager, Technology Commercialization	TITLE: Co-CEO and Board Member
	DATE 12/28/18	DATE 12/27/18

 

 

 

 

 

 

    	 	18	 

     

    

 

License
Agreement Number 529155

DarkPulse Technology Holdings, Inc.

Version 3

December
21, 2018

 

ATTACHMENT 1

 

ROYALTY REPORT TO
BATTELLE

 

From: __________________________________________________________________________

            (Company Name and License Agreement
No.)

 

Reporting Period:

 

From________________________To_______________________(6
Month Period Ending, June 30, and December 31, to be Reported by the Following July 31 and January 31 respectively).

 

Article 3, CONSIDERATION

 

	(i)   GROSS SALES OF LICENSED PRODUCTS	$ _____
		X 0.06
	Amount of Royalties Owed	$_____
	 	 
	(iii) ROYALTIES FROM SUBLICENSES	$_____
	 	 
	Total Royalties Due (i) + (ii)	$_____

 

 

Signed by: ______________________

Printed Name:____________________

Date:___________________________

Telephone:______________________

Email:__________________________

 

 

 

    	 	19

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