Document:

Document

July 11, 2022
 
Alpine 4 Holdings, Inc.
2525 East Arizona Biltmore Circle, suite 237 Phoenix, AZ 85016
 
 Attn: Kent Wilson, Chief Executive Officer 

This letter (the “Agreement”) constitutes the agreement between A.G.P./Alliance Global Partners (the “Placement Agent”) and Alpine 4 Holdings, Inc., a Delaware corporation (the “Company”), that the Placement Agent shall serve as the exclusive placement agent for the Company, on a “reasonable best efforts” basis, in connection with the proposed placement (the “Placement”) of the Company’s shares of Class A Common Stock, par value $0.0001 per share, (the “Shares”), and warrants to purchase shares of Common Stock (the “Warrants,” and collectively with the Shares, the “Securities”). The Securities actually placed by the Placement Agent are referred to herein as the “Placement Agent Securities.” The terms of the Placement shall be mutually agreed upon by the Company and the purchasers (each, a “Purchaser” and collectively, the “Purchasers”), and nothing herein constitutes that the Placement Agent would have the power or authority to bind the Company or any Purchaser, or an obligation for the Company to issue any Securities or complete the Placement. The Company expressly acknowledges and agrees that the Placement Agent’s obligations hereunder are on a reasonable best efforts basis only and that the execution of this Agreement does not constitute a commitment by the Placement Agent to purchase the Securities and does not ensure the successful placement of the Securities or any portion thereof or the success of the Placement Agent with respect to securing any other financing on behalf of the Company. The Placement Agent Securities shall be offered and sold under the Company’s registration statement on Form S-3 (File No. 333-252539) with respect to the Placement Agent Securities. The Placement Agent may retain other brokers or dealers to act as sub-agents or selected-dealers on its behalf in connection with the Placement; provided, however, that the Company shall first approve any such sub-agents. Certain affiliates of the Placement Agent may participate in the Placement by purchasing some of the Placement Agent Securities. The sale of Placement Agent Securities to any Purchaser will be evidenced by a securities purchase agreement (the “Purchase Agreement”) between the Company and such Purchaser, in a form reasonably acceptable to the Company and the Purchaser. Capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Purchase Agreement. Prior to the signing of any Purchase Agreement, officers of the Company will be available to answer inquiries from prospective Purchasers.
 
SECTION 1. REPRESENTATIONS AND WARRANTIES OF THE COMPANY; COVENANTS OF THE COMPANY.
 
A.    Representations of the Company. With respect to the Placement Agent Securities , each of the representations and warranties (together with any related disclosure schedules thereto) and covenants made by the Company to the Purchasers in the Purchase Agreement in connection with the Placement, is hereby incorporated herein by reference into this Agreement (as though fully restated herein) and is, as of the date of this Agreement and as of the Closing Date, hereby made to, and in favor of, the Placement Agent. In addition to the foregoing, the Company represents and warrants that there are no affiliations with any FINRA member firm among the Company's officers, directors or, to the knowledge of the Company, any five percent (5.0%) or greater securityholder of the Company, except as set forth in the Purchase Agreement. 

B.    Covenants of the Company. The Company covenants and agrees to use commercially reasonable efforts in order to continue to retain (i) a firm of independent Public Company Accounting Oversight Board (PCAOB) registered public accountants for a period of at least five (5) years after the Closing Date and (ii) a competent transfer agent with respect to the Common Stock for a period of five (5) years after the Closing Date. In addition, from the date hereof until 60 days after the Closing Date, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents. From the date hereof until 90 trading days after the Closing Date, without the prior written consent of the Placement Agent, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any Common Stock or Common Stock Equivalents. Notwithstanding the foregoing, this Section 1.B shall not apply in respect of an Exempt Issuance as defined in the Purchase Agreement. 

SECTION 2.      REPRESENTATIONS OF THE PLACEMENT AGENT. The Placement Agent represents and warrants that it (i) is a member in good standing of FINRA, (ii) is registered as a broker/dealer under the Exchange Act, (iii) is licensed as a broker/dealer under the laws of the United States of America, applicable to the offers and sales of the Placement Agent Securities by the Placement Agent, (iv) is and will be a 

corporate body validly existing under the laws of its place of incorporation, (v) has full power and authority to enter into and perform its obligations under this Agreement. The Placement Agent will immediately notify the Company in writing of any change in its status with respect to subsections (i) through (v) above. The Placement Agent covenants that it will use its reasonable best efforts to conduct the Placement hereunder in compliance with the provisions of this Agreement and the requirements of applicable law.

SECTION 3.COMPENSATION. 
 
A.    In consideration of the services to be provided for hereunder, the Company shall pay to the Placement Agent and/or its respective designees a cash fee of 7% of the aggregate gross proceeds raised from the sale of the Placement Agent Securities at the Closing (the “Cash Fee”). The Cash Fee shall be paid on the Closing Date. The Company shall not be required to pay the Placement Agent any fees or expenses except for the Cash Fee, the reimbursement of (i) up to $75,000 in legal expenses and clearing agent fees and expenses, and the reimbursement of out of pocket expenses of the Placement Agent in connection with marketing the transaction (i.e., background checks, tombstones, etc.), with respect to the engagement hereunder; provided, however, that the reimbursement of legal, and out of pocket expenses of the Placement Agent shall not exceed $75,000 in the aggregate and (ii) non-accountable expenses (the "NAE") (provided, however, that the reimbursement amount provided for in this Section in no way limits or impairs the indemnification and contribution provisions of this Agreement). The total NAE allowance shall equal $50,000; provided, further, that this sentence in no way limits or impairs the indemnification or contribution provisions contained herein. The Placement Agent reserves the right to reduce any item of compensation or adjust the terms thereof as specified herein in the event that a determination shall be made by FINRA to the effect that the Placement Agent’s aggregate compensation is in excess of FINRA Rules or that the terms thereof require adjustment. 
 
 
B.    The Company agrees to pay all costs, fees and expenses incurred by the Company in connection with the performance of its obligations hereunder and in connection with the transactions contemplated hereby, including, without limitation: (i) all expenses incident to the issuance, delivery and qualification of the Placement Agent Securities (including all printing and engraving costs); (ii) all fees and expenses of the registrar and transfer agent of the Securities; (iii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the Placement Agent Securities; (iv) all fees and expenses of the Company’s counsel, independent public or certified public accountants and other advisors; (v) all costs and expenses incurred in connection with the preparation, printing, filing, shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents and certificates of experts), the Base Prospectus and each Prospectus Supplement, and all amendments and supplements thereto, and this Agreement; (vi) all filing fees, reasonable attorneys’ fees and expenses incurred by the Company in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Securities for offer and sale under the state securities or blue sky laws or the securities laws of any other country; (vii) the fees and expenses associated with including the Securities on the Trading Market.  
 
SECTION 4.    INDEMNIFICATION. 
 
A.    To the extent permitted by law, with respect to the Placement Agent Securities, the Company will indemnify the Placement Agent and its affiliates, directors, officers, employees, members and controlling persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) against all losses, claims, damages, expenses and liabilities, as the same are incurred (including the reasonable fees and expenses of counsel), relating to or arising out of its activities hereunder or pursuant to this Agreement, except to the extent that any losses, claims, damages, expenses or liabilities (or actions in respect thereof) are found in a final judgment (not subject to appeal) by a court of law to have resulted primarily and directly from the Placement Agent’s willful misconduct, bad faith or gross negligence in performing the services described herein. 
B.    Promptly after receipt by the Placement Agent of notice of any claim or the commencement of any action or proceeding with respect to which the Placement Agent is entitled to indemnity hereunder, the Placement Agent will notify the Company in writing of such claim or of the commencement of such action or proceeding, but failure to so notify the Company shall not relieve the Company from any obligation it may have hereunder, except and only to the extent such failure results in the forfeiture by the Company of substantial rights and defenses. If the Company so elects or is requested by the Placement Agent, the Company will assume the defense of such action or proceeding and will employ counsel reasonably satisfactory to the Placement Agent and will pay the reasonable fees and expenses of such counsel. Notwithstanding the preceding sentence, the Placement Agent will be entitled to employ  
counsel separate from counsel for the Company and from any other party in such action if counsel for the Placement Agent reasonably determines that it would be conflict of interest under the applicable rules of professional responsibility for the same counsel to represent both the Company and the Placement Agent. 

In such event, the reasonable fees and disbursements of no more than one such separate counsel will be paid by the Company, in addition to fees of local counsel. The Company will have the right to settle the claim or proceeding provided that the Company will not settle any such claim, action or proceeding without the prior written consent of the Placement Agent, which will not be unreasonably withheld. The Company shall not be liable for any settlement of any action effected without its written consent, which will not be unreasonably withheld.
C.    The Company agrees to notify the Placement Agent promptly of the assertion against it or any other person of any claim or the commencement of any action or proceeding relating to a transaction contemplated by this Agreement. 
 
D.    If for any reason the foregoing indemnity is unavailable to the Placement Agent or insufficient to hold the Placement Agent harmless, then the Company shall contribute to the amount paid or payable by the Placement Agent as a result of such losses, claims, damages or liabilities in such proportion as is appropriate to reflect not only the relative benefits received by the Company on the one hand and the Placement Agent on the other, but also the relative fault of the Company on the one hand and the Placement Agent on the other that resulted in such losses, claims, damages or liabilities, as well as any relevant equitable considerations. The amounts paid or payable by a party in respect of losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees and expenses incurred in defending any litigation, proceeding or other action or claim. Notwithstanding the provisions hereof, the Placement Agent’s share of the liability hereunder shall not be in excess of the amount of fees actually received, or to be received, by the Placement Agent under this Agreement (excluding any amounts received as reimbursement of expenses incurred by the Placement Agent). 
 
E.    These indemnification provisions shall remain in full force and effect whether or not the transaction contemplated by this Agreement is completed and shall survive the termination of this Agreement, and shall be in addition to any liability that the Company might otherwise have to any indemnified party under this Agreement or otherwise. 
 
SECTION 5.       ENGAGEMENT TERM. The Placement Agent’s engagement hereunder will be until the earlier of (i) ninety (90) days and (ii) the Closing Date. The date of termination of this Agreement is referred to herein as the “Termination Date.” In the event, however, in the course of the Placement Agent’s performance of due diligence it deems it necessary to terminate the engagement, the Placement Agent may do so prior to the Termination Date. The Company may elect to terminate the engagement hereunder for any reason prior to the Termination Date but will remain responsible for fees and expenses pursuant to Section 3 hereof and fees with respect to the Placement Agent Securities if sold in the Placement. Notwithstanding anything to the contrary contained herein, the provisions concerning the Company’s obligation to pay any fees actually earned pursuant to Section 3 hereof, to pay expenses pursuant to Section 3 hereof, and the provisions concerning confidentiality, indemnification and contribution, and no fiduciary relationship and governing law (including the waiver of the right to trial by jury) contained herein will survive any expiration or termination of this Agreement. If this Agreement is terminated prior to the completion of the Placement, all fees and expenses due to the Placement Agent shall be paid by the Company to the Placement Agent on or before the Termination Date (in the event such fees are earned or owed as of the Termination Date). The Placement Agent agrees not to use any confidential information concerning the Company provided to the Placement Agent by the Company for any purposes other than those contemplated under this Agreement.
 
SECTION 6.     PLACEMENT AGENT INFORMATION. The Company agrees that any information or advice rendered by the Placement Agent in connection with this engagement is for the confidential use of the Company only in their evaluation of the Placement and, except as otherwise required by law, the Company will not disclose or otherwise refer to the advice or information in any manner without the Placement Agent’s prior written consent.
 
SECTION 7. NO FIDUCIARY RELATIONSHIP. This Agreement does not create, and shall not be construed as creating rights enforceable by any person or entity not a party hereto, except those entitled hereto by virtue of the indemnification provisions hereof. The Company acknowledges and agrees that the Placement Agent is not and shall not be construed as a fiduciary of the Company and shall have no duties or liabilities to the equity holders or the creditors of the Company or any other person by virtue of this Agreement or the retention of the Placement Agent hereunder, all of which are hereby expressly waived.

SECTION 8. CLOSING. The obligations of the Placement Agent, and the closing of the sale of the Placement Agent Securities hereunder are subject to the accuracy, when made and on the Closing Date, of the representations and warranties on the part of the Company contained herein and in the Purchase Agreement, to 

the performance by the Company of its obligations hereunder and in the Purchase Agreement, and to each of the following additional terms and conditions, except as otherwise disclosed to and acknowledged and waived by the Placement Agent:
 
A.    All corporate proceedings and other legal matters incident to the authorization, form, execution, delivery and validity of each of this Agreement, the Placement Agent Securities, and all other legal matters relating to this Agreement and the transactions contemplated hereby with respect to the Placement Agent Securities shall be reasonably satisfactory in all material respects to the Placement Agent. 
 
B.    The Placement Agent shall have received from outside U.S. counsel to the Company each such counsel’s written opinion with respect to the Placement Agent Securities, addressed to the Placement Agent and dated as of the Closing Date, in form and substance reasonably satisfactory to the Placement Agent. 
 
C.    The Placement Agent shall have received customary certificates from one or more of the Company’s executive officers, as to the accuracy of the representations and warranties contained in the Purchase Agreement, and a certificate of the Company’s secretary certifying that the Company’s charter documents are true and complete, have not been modified and are in full force and effect; (ii) that the resolutions of the Company’s Board of Directors relating to the Placement are in full force and effect and have not been modified; and (iii) as to the incumbency of the officers of the Company. 
 
D.    The Placement Agent shall have received an executed FINRA questionnaire from each of the Company and the Company’s executive officers, directors and holders of at least 10% of the Company’s common stock. 
 
E.    The Common Stock shall be registered under the Exchange Act and, as of the Closing Date, the Common Stock shall be listed and admitted and authorized for trading on the Trading Market or other applicable U.S. national exchange and satisfactory evidence of such action shall have been provided to the Placement Agent. The Company shall have taken no action designed to, or likely to have the effect of terminating the registration of the Common Stock under the Exchange Act or delisting or suspending from trading the Common Stock from the Trading Market or other applicable U.S. national exchange, nor has the Company received any information suggesting that the Commission or the Trading Market or other U.S. applicable national exchange is contemplating terminating such registration or listing. 
 
F.    No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental agency or body which would, as of the Closing Date, prevent the issuance or sale of the Placement Agent Securities or materially and adversely affect or potentially and adversely affect the business or operations of the Company; and no injunction, restraining order or order of any other nature by any federal or state court of competent jurisdiction shall have been issued as of the Closing Date which would prevent the issuance or sale of the Placement Agent Securities or materially and adversely affect or potentially and adversely affect the business or operations of the Company. 
 
G.    The Company shall have entered into a Purchase Agreement with each of the several Purchasers of the Placement Agent Securities and such agreements shall be in full force and effect and shall contain representations, warranties and covenants of the Company as agreed upon between the Company and the Purchasers. 

H.    FINRA shall have raised no objection to the fairness and reasonableness of the terms and arrangements of this Agreement. In addition, the Company shall, if requested by the Placement Agent, make or authorize Placement Agent’s counsel to make on the Company’s behalf, any filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 2710 with respect to the Placement and pay all filing fees required in connection therewith. 
 
If any of the conditions specified in this Section 8 shall not have been fulfilled when and as required by this Agreement, all obligations of the Placement Agent hereunder may be cancelled by the Placement Agent at, or at any time prior to, the Closing Date. Notice of such cancellation shall be given to the Company in writing or orally. Any such oral notice shall be confirmed promptly thereafter in writing.
 
SECTION 9. GOVERNING LAW. This Agreement will be governed by, and construed in accordance with, the laws of the State of New York applicable to agreements made and to be performed entirely in such State. This Agreement may not be assigned by either party without the prior written consent of the other party. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. Any right to trial by jury with respect to any dispute arising under this Agreement or any transaction or conduct in connection herewith is waived. Any dispute arising under this 

Agreement may be brought into the courts of the State of New York or into the Federal Court located in New York, New York and, by execution and delivery of this Agreement, the Company hereby accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of aforesaid courts. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by delivering a copy thereof via 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 manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney's fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.
 
SECTION 10.    ENTIRE AGREEMENT/MISCELLANEOUS. This Agreement embodies the entire agreement and understanding between the parties hereto, and supersedes all prior agreements and understandings, relating to the subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such provision in any other respect or any other provision of this Agreement, which will remain in full force and effect. This Agreement may not be amended or otherwise modified or waived except by an instrument in writing signed by both the Placement Agent and the Company. The representations, warranties, agreements and covenants contained herein shall survive the Closing Date of the Placement and delivery of the Placement Agent Securities. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or a .pdf format file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or .pdf signature page were an original thereof. 
 
SECTION 11. NOTICES. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is sent to the email address specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a business day, (b) the next business day after the date of transmission, if such notice or communication is sent to the email address on the signature pages attached hereto on a day that is not a business day or later than 6:30 p.m. (New York City time) on any business day, (c) the third business day following the date of mailing, if sent by U.S. internationally recognized air courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages hereto.
 
SECTION 12. PRESS ANNOUNCEMENTS. The Company agrees that the Placement Agent shall, on and after the Closing Date, have the right to reference the Placement and the Placement Agent’s role in connection therewith in the Placement Agent’s marketing materials and on its website and to place advertisements in financial and other newspapers and journals, in each case at its own expense.
[The remainder of this page has been intentionally left blank.]

Please confirm that the foregoing correctly sets forth our agreement by signing and returning to the Placement Agent the enclosed copy of this Agreement.
 
						
	Very truly yours,
	 
	A.G.P./ALLIANCE GLOBAL PARTNERS
	 	 
	By:	     
	 	Name:
	 	Title:

 

 
						
	Accepted and Agreed to as of 
the date first written above:

	 	 
	ALPINE 4 HOLDINGS, INC.
	 	 
	By:	     
	 	Name: Kent Wilson
	 	Title: Chief Executive Officer
	 	 
	 	Address for notice:
	 	Alpine 4 Holdings, Inc.
	 	2525 East Arizona Biltmore Circle, Suite 237
	 	Phoenix, AZ 85016
	 	Attn: Kent Wilson, Chief Executive Officer

[Signature Page to Placement Agent Agreement.]Exhibit 10.1

 

July 12, 2022

 

[Name and address of warrant holder]

 

Re: Reprice and Reload Offer of Ordinary Share Purchase Warrants 

 

To Whom It May Concern:

 

Guardforce AI Co., Limited, a Cayman Islands corporation
(the “Company”), is pleased to offer to you the opportunity to receive restricted Ordinary Shares, par value $0.003
per share (“Ordinary Shares”), as described below in consideration for the exercise of the Ordinary Share purchase
warrants (the “Existing Warrants”) set forth on your signature page attached hereto currently held by you (the “Holder”).
Additionally, the Company is pleased to offer to you the opportunity to consent to the reduction of the exercise price of the Existing
Warrants currently held by you pursuant to Section 3(h) of the Existing Warrants. The issuance of the Ordinary Shares, underlying the
Existing Warrants (“Existing Warrant Shares”) has been registered pursuant to registration statements on Form F-1 (including
a post-effective amendment thereto on Form F-3, File No. 333-258054) and F-3 (File No. 333-262441) (the “Registration Statements”).
The Registration Statements are currently effective and, upon exercise of the Existing Warrants, will be effective for the issuance of
the Existing Warrant Shares. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Existing Warrants.
 

 

In consideration for cash exercising certain of
the Existing Warrants held by you on or before 9:00 a.m. (New York City time) on July 13, 2022 (the “Warrant Exercise”),
the Company hereby offers (i) to issue to you or your designees one-half (1/2) of an Ordinary Share (the “Share Consideration”)
for each Warrant Share issued pursuant to each Warrant Exercise that occurs from and after the date hereof and prior to 9:00 a.m. on July
13, 2022, and (ii) a reduction of the exercise price of the Existing Warrants to $0.238 per share (as reduced from the current exercise
price of $1.15 per share). The Share Consideration shall be issued in book-entry form and the Company shall deliver to each Holder an
account statement reflecting the Share Consideration.

 

The Holder may accept this offer by signing this
letter below, with such acceptance constituting the Holder’s deemed exercise of the number of Existing Warrants as set forth on
the Holder’s signature page attached hereto for an aggregate exercise price as set forth on the Holder’s signature page hereto
(the “Aggregate Exercise Price”) on or before 9:00 a.m. (New York City time) on July 13, 2022.

 

Additionally, the Company agrees to the representations,
warranties and covenants set forth on Annex A attached hereto. The Holder represents and warrants (1) that, as of the date hereof
it is an “accredited investor” as defined in Rule 501 of the Securities Act, and agrees that the Share Consideration will
consist of restricted Ordinary Shares and any certificates representing the Share Consideration will contain restrictive legends when
issued, and the Share Consideration will not be registered under the Securities Act, and (2) that the Share Consideration is being acquired
for such Holder’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in
violation of the Securities Act of 1933.

 

If this offer is accepted and this letter agreement
is executed and delivered to the Company on or before 9:00 a.m. (New York City time) on July 13, 2022, the Company shall (i) issue a press
release disclosing all material terms of the transactions contemplated hereunder, (ii) file a Report on Form 6-K with the Securities and
Exchange Commission disclosing all material terms of the transactions contemplated hereunder, including this letter agreement as an exhibit
thereto, and (iii) file prospectus supplements to the Registration Statements disclosing the transactions contemplated hereby, including
the reduction of the exercise price of the Existing Warrants ((i), (ii) and (iii), collectively, the “Required Filings”),
in each case on or before 9:30 a.m. (New York City time) on July 13, 2022. Upon the release or filing, as the case may be, of the first
of the Required Filings so released or filed by the Company, the Company represents to the Holder that it shall have publicly disclosed
all material, non-public information delivered to the Holder by the Company or any of its officers, directors, employees or agents in
connection with the transactions contemplated hereby. In addition, effective upon the earliest of the issuance of the Required Filings,
the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral,
between the Company or any of its officers, directors, agents, employees or Affiliates on the one hand, and the Holder or any of its Affiliates
on the other hand, shall terminate. Upon the earliest of the issuance of the Required Filings, the Company represents to the Holder that
none of the Company’s directors, officers, employees or agents will provide the Holder with any material, nonpublic information
that is not disclosed in the Required Filings.

 

    

     

    

 

The Company represents, warrants and covenants
that, upon acceptance of this offer, all of the Existing Warrant Shares being exercised shall be delivered electronically through the
Depository Trust Company within one (1) Trading Day of the date the Company receives the Aggregate Exercise Price (or, with respect to
Ordinary Shares that would otherwise be in excess of the Beneficial Ownership Limitation, within one (1) Business Day of the date the
Company is notified by Holder that its ownership is less than the Beneficial Ownership Limitation). Except as set forth herein, the terms
of the Existing Warrants, including but not limited to the obligations to deliver the Existing Warrant Shares, shall remain in effect
as if the acceptance of this offer was a formal exercise notice under the Existing Warrants.

 

The Company acknowledges and agrees that the obligations
of the Holder under this letter agreement are several and not joint with the obligations of any other holder of Ordinary Share purchase
warrants of the Company (each, an “Other Holder”) under any other agreement related to the exercise of such warrants
(“Other Warrant Exercise Agreement”), and the Holder shall not be responsible in any way for the performance of the
obligations of any Other Holder or under any such Other Warrant Exercise Agreement. Nothing contained in this letter agreement, and no
action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and the Other Holders as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Holder and the Other Holders are in any way acting in concert
or as a group with respect to such obligations or the transactions contemplated by this letter agreement and the Company acknowledges
that the Holder and the Other Holders are not acting in concert or as a group with respect to such obligations or the transactions contemplated
by this letter agreement or any Other Warrant Exercise Agreement. The Company and the Holder confirm that the Holder has independently
participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holder shall
be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this letter agreement,
and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose.

 

The Company hereby represents and warrants as
of the date hereof and covenants and agrees from and after the date hereof until six months after the date hereof, that none of the terms
offered to any Other Holder with respect to any Other Warrant Exercise Agreement (or any amendment, modification or waiver thereof), is
or will be more favorable to such Other Holder than those of the Holder and this letter agreement. If, and whenever on or after the date
hereof until six months after the date hereof, the Company enters into an Other Warrant Exercise Agreement, then (i) the Company shall
provide notice thereof to the Holder promptly following the occurrence thereof and (ii) the terms and conditions of this letter agreement
shall be, without any further action by the Holder or the Company, automatically amended and modified in an economically and legally equivalent
manner such that the Holder shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in
such Other Warrant Exercise Agreement (including the issuance of additional Warrant Shares), provided that upon written notice to the
Company at any time the Holder may elect not to accept the benefit of any such amended or modified term or condition, in which event the
term or condition contained in this letter agreement shall apply to the Holder as it was in effect immediately prior to such amendment
or modification as if such amendment or modification never occurred with respect to the Holder. The provisions of this paragraph shall
apply similarly and equally to each Other Warrant Exercise Agreement.

 

The Holder acknowledges that it has had the opportunity
to review the public filings made by the Company with the Commission and has been afforded (i) the opportunity to ask such questions as
it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the transactions
contemplated hereby and the merits and risks of investing in the Company’s securities; (ii) access to information about the Company
and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate
its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable
effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

    2

     

    

 

The Holder and the Company are parties to one
or both of the following securities purchase agreements (i) a Securities Purchase Agreement, dated January 18, 2022 (the “January
2022 SPA”) and (ii) a Securities Purchase Agreement, dated April 6, 2022 (the “April 2022 SPA” and, together with the
January 2022 SPA, the “SPAs”). The Company and the Holder agree to amend and/or waive certain provisions of the SPAs as follows:
(i) Subsection (b) of Section 4.12 of the January 2022 SPA (Subsequent Equity Sales) is hereby deleted; and (ii) Subsection (b) of Section
4.10 of the April 2022 SPA (Subsequent Equity Sales) is hereby deleted. Except as aforesaid, the SPAs remain unmodified and in full force
and effect.

 

The Company and the Holder acknowledge and agree
that as a result of the transactions contemplated by this letter agreement, the exercise price of the warrants issued by the Company in
the public offering under Registration Statement No. 333-258054, which became effective on September 28, 2021 (the “Public Warrants”),
is being reduced to $0.16. For the avoidance of doubt, if the Company engages in a variable rate transaction after the date hereof that
does not contain any floor price, then the exercise price of the Public Warrants may then be reduced to the floor price of $0.003, which
is equal to the par value of the Company’s Ordinary Shares.

 

Each party shall pay the fees and expenses of
its advisers, counsel, 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 letter agreement. The Company shall pay all transfer agent fees, stamp taxes
and other taxes and duties levied in connection with the delivery of any Existing Warrant Shares.

 

This letter agreement shall be governed by the
laws of the State of New York without regard to the principles of conflicts of law thereof.

 

    3

     

    

 

To accept this offer, Holder must counter execute this letter agreement
and return the fully executed letter agreement to the Company at e-mail: olivia.wang@guardforceai.com, attention: Lei (Olivia) Wang, Chief
Executive Officer, on or before 9:00 am (New York City time) on July 13, 2022.

 

Please do not hesitate to call me if you have any questions.

 

	 
	Sincerely yours,
	 
	Guardforce AI Co., Limited	 
	 	 	 
	By: 	 	 
	Name: 	Lei (Olivia) Wang	 
	Title:	 Chief Executive Officer	 

 

Accepted and Agreed to:

 

Name of Holder:                                                                                                                                                       

 

Signature of Authorized Signatory of Holder:                                                                                                   

 

Name of Authorized Signatory:                                                                                                                          

 

Title of Authorized Signatory:                                                                                                                           

 

Existing Warrant Shares:                                                                                                                                      

 

Number of Existing Warrants being exercised contemporaneously with
signing this letter:                     

 

Aggregate Exercise Price of the Existing Warrants being exercised contemporaneously
with signing this letter:

 

$                                                                                                                                                                                               

 

Number of Ordinary Shares Constituting Share Consideration:                                                                                

 

DTC Instructions:                                                                                                                                                                 

 

The Existing Warrant Shares shall be delivered to the following DWAC
Account Number:

 

	 	                            
	Broker Name:	 
	 	 
	Broker DTC DWAC #: 	 
	 	 
	Broker Contact:	 
	 	 
	Account #:	 

 

    4

     

    

 

Annex A – Representations, Warranties
and Covenants 

 

Representations, Warranties and Covenants of
the Company. The Company hereby makes the following representations and warranties to the Holder and agrees to the following covenants:

 

(a) Registration Statements. The Existing
Warrant Shares are registered for issuance on Registration Statements on Form F-1 (including a post-effective amendment thereto on Form
F-3, File No. 333-258054) and F-3 (File No. 333-262441, respectively) (the “Registration Statements”) and the Company
knows of no reason why such Registration Statements shall not remain effective for the foreseeable future.

 

(b) Authorization; Enforcement. The Company
will have the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this letter agreement
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this letter agreement by the Company
and the consummation by the Company of the transactions contemplated hereby will be duly authorized by all necessary action on the part
of the Company and no further action is required by the Company, its board of directors or its shareholders in connection therewith. This
letter agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid
and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement
of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief
or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(c) No Conflicts. The execution, delivery
and performance of this letter agreement by the Company and the consummation by the Company of the transactions contemplated hereby do
not and will not: (i) conflict with or violate any provision of the Company’s articles of incorporation, bylaws or other organizational
or charter documents; or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become
a default) under, result in the creation of any lien upon any of the properties or assets of the Company in connection with, or give to
others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any material
agreement, credit facility, debt or other material instrument (evidencing Company debt or otherwise) or other material understanding to
which such Company is a party or by which any property or asset of the Company is bound or affected, other than for which a waiver has
been obtained by the Company; or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities
laws and regulations), or by which any property or asset of the Company is bound or affected.

 

(d) Filings, Consents and Approvals. The
Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration
with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery
and performance by the Company of the transactions contemplated by this agreement, other than: (i) the filings required pursuant to this
agreement, (ii) the notice and/or application(s) to each applicable Trading Market for the issuance and sale of the Share Consideration
in the time and manner required thereby, and (iii) the filing of Form D with the Commission and such filings as are required to be made
under applicable state securities laws.

 

(e) Offering Generally. The transactions
contemplated under this letter agreement, comply with all rules of the Trading Market. No registration under the Securities Act is required
for the offer and sale of the Share Consideration by the Company as contemplated hereby. Neither the Company, nor any of its Affiliates,
nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers
to buy any security, under circumstances that would cause the offering of the Share Consideration to be integrated with prior offerings
by the Company for purposes of (i) the Securities Act which would require the registration of any such securities under the Securities
Act, or (ii) any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed
or designated.

 

(f) Issuance of Share Consideration. The
issuance of the Share Consideration is duly authorized and, upon the execution of this letter agreement by the undersigned, will be duly
and validly issued, fully paid and nonassessable, free and clear of all liens imposed by the Company.

 

    5

     

    

 

(g) Legends and Transfer Restrictions. 

 

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

 

(ii) The undersigned agrees to the imprinting,
so long as is required by this Section (g), of a legend on any certificate representing the Share Consideration in the following form:

 

THE ORDINARY SHARES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS. THE ORDINARY SHARES REPRESENTED HEREBY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES. .

 

The Company acknowledges and agrees that the undersigned
may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in
some or all of the Share Consideration to a financial institution that is an “accredited investor” as defined in Rule 501(a)
under the Securities Act and who agrees to be bound by the provisions of this letter agreement and, if required under the terms of such
arrangement, the undersigned may transfer pledged or secured Share Consideration to the pledgees or secured parties. Such a pledge or
transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor
shall be required in connection therewith. Further, no notice shall be required of such pledge. At the undersigned’s expense, the
Company will execute and deliver such reasonable documentation as a pledgee or secured party of Share Consideration may reasonably request
in connection with a pledge or transfer of the Share Consideration.

 

(iii) Certificates evidencing the Share Consideration
shall not contain any legend (including the legend set forth in Section (g)(ii) hereof), (i) while a registration statement covering the
resale of such security is effective under the Securities Act, (ii) following any sale of such Share Consideration pursuant to Rule 144,
(iii) if such Share Consideration is eligible for sale under Rule 144, or (iv) if such legend is not required under applicable requirements
of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall
cause its counsel to issue a legal opinion to its transfer agent (if required by the transfer agent) and the undersigned (if requested
by the undersigned) in connection with the removal of the legend hereunder. The Company agrees that following such time as such legend
is no longer required under this Section (g), it will, no later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading
Days comprising the Standard Settlement Period (as defined below) following the delivery by the undersigned to the Company or the Transfer
Agent of a certificate representing the Share Consideration, as applicable, issued with a restrictive legend (such date, the “Legend
Removal Date”), deliver or cause to be delivered to the undersigned a certificate representing such shares that is free from
all restrictive and other legends. The Company may not make any notation on its records or give instructions to the transfer agent that
enlarge the restrictions on transfer set forth in this Section (g). Certificates for Share Consideration subject to legend removal hereunder
shall be transmitted by the transfer agent to the undersigned by crediting the account of the undersigned’s prime broker with the
Depository Trust Company System as directed by the undersigned. “Standard Settlement Period” means the standard settlement
period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Ordinary Shares as in
effect on the date of delivery of a certificate representing Warrant Shares issued with a restrictive legend.

 

    6

     

    

 

(iv) In addition to such undersigned’s other
available remedies, the Company shall pay to the undersigned, in cash, (i) as partial liquidated damages and not as a penalty, for each
$1,000 of Share Consideration (based on the VWAP of the Ordinary Shares on the date such Securities are submitted to the Transfer Agent)
delivered for removal of the restrictive legend and subject to Section (g)(iii), $10 per Trading Day (increasing to $20 per Trading Day
five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date until such certificate
is delivered without a legend and (ii) if the Company fails to (a) issue and deliver (or cause to be delivered) to the undersigned by
the Legend Removal Date a certificate representing the Securities so delivered to the Company by such undersigned that is free from all
restrictive and other legends and (b) if after the Legend Removal Date such undersigned purchases (in an open market transaction or otherwise)
Ordinary Shares to deliver in satisfaction of a sale by such undersigned of all or any portion of the number of Ordinary Shares, or a
sale of a number of Ordinary Shares equal to all or any portion of the number of Ordinary Shares that such undersigned anticipated receiving
from the Company without any restrictive legend, then, an amount equal to the excess of such undersigned’s total purchase price
(including brokerage commissions and other out-of-pocket expenses, if any) for the Ordinary Shares so purchased (including brokerage commissions
and other out-of-pocket expenses, if any) (the “Buy-In Price”) over the product of (A) such number of Ordinary Shares
included in the Share Consideration that the Company was required to deliver to such undersigned by the Legend Removal Date multiplied
by (B) the lowest closing sale price of the Ordinary Shares on any Trading Day during the period commencing on the date of the delivery
by such undersigned to the Company of the applicable Share Consideration (as the case may be) and ending on the date of such delivery
and payment under this clause (ii).

 

(h) Public Information Failure. At any
time during the period commencing from the six (6) month anniversary of the date hereof and ending at such time that all of the Share
Consideration may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction
or limitation pursuant to Rule 144, if there is no effective registration statement covering the resale of all of the Share Consideration
and the Company (i) shall fail for any reason to satisfy the current public information requirement under Rule 144(c) or (ii) has ever
been an issuer described in Rule 144(i)(1)(i) or becomes such an issuer in the future, and the Company shall fail to satisfy any condition
set forth in Rule 144(i)(2) (a “Public Information Failure”) then, in addition to the undersigned’s other available
remedies, the Company shall pay to the undersigned, in cash, as partial liquidated damages and not as a penalty, by reason of any such
delay in or reduction of its ability to sell the Share Consideration, an amount in cash equal to two percent (2.0%) of one-half of the
aggregate Exercise Price of the undersigned’s Existing Warrants as set forth on the signature page of the letter agreement of which
this Annex forms a part and on every thirtieth (30th) day (pro-rated for periods totaling less than thirty days) thereafter until the
earlier of (a) the date such Public Information Failure is cured and (b) such time that such public information is no longer required
for the undersigned to transfer the Share Consideration pursuant to Rule 144. The payments to which the undersigned shall be entitled
pursuant to this Section (h) are referred to herein as “Public Information Failure Payments.” Public Information Failure Payments
shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred
and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information Failure Payments is cured. In the
event the Company fails to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments shall
bear interest at the rate of 1.5% per month (prorated for partial months) until paid in full. Nothing herein shall limit the undersigned’s
right to pursue actual damages for the Public Information Failure, and the undersigned shall have the right to pursue all remedies available
to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

(i) Listing of Ordinary Shares. The Company
shall apply to list or quote all of the Share Consideration on the Nasdaq Capital Market and use its commercially reasonable efforts to
promptly secure the listing of all of the Share Consideration on the Nasdaq Capital Market.

 

(j) Subsequent Equity Sales. From the date
hereof until 30 days from the date hereof, neither the Company nor any Subsidiary shall (i) issue, enter into any agreement to issue or
announce the issuance or proposed issuance of any Ordinary Shares or any securities of the Company or the Subsidiaries which would entitle
the holder thereof to acquire at any time Ordinary Shares, including, without limitation, any debt, preferred stock, right, option, warrant
or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof
to receive, Ordinary Shares or (ii) file any registration statement or any amendment or supplement thereto.

 

 

7

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