Document:

EX-4.5

 Exhibit 4.5 

GUARANTEE AGREEMENT, dated as of November 20, 2014 (as amended from time to time, this “Guarantee Agreement”), made by Walgreen
Co., an Illinois corporation (the “Guarantor”), in favor of (a) the Holders of (i) £400,000,000 of 2.875% Notes due 2020, (ii) £300,000,000 of 3.600% Notes due 2025 and (iii) €750,000,000 of
2.125% Notes due 2026 (collectively, the “Notes”), in each case, of Walgreens Boots Alliance, Inc., a Delaware corporation (the “Company”), (b) Wells Fargo Bank, National Association (together with its
successors and assigns, the “Trustee”), as trustee under the Indenture (as defined below; unless otherwise defined herein, capitalized term shall have the meanings assigned to them in the Indenture) with respect to the Notes and
(c) Deutsche Bank Trust Company Americas, in its capacity as paying agent for the Notes (together with its successors and assigns, the “Paying Agent”). 

WITNESSETH: 

WHEREAS, on August 2, 2012, the Guarantor completed the initial investment contemplated by the Purchase and Option Agreement dated
June 18, 2012, as amended on August 5, 2014 (the “Amendment”), by and among the Guarantor, Alliance Boots GmbH and AB Acquisitions Holdings Limited (as amended by the Amendment, the “Purchase and Option
Agreement”), which resulted in the Guarantor’s acquisition of 45% of the issued and outstanding share capital of Alliance Boots GmbH. 

WHEREAS, the Purchase and Option Agreement also provided, among other things and subject to the satisfaction or waiver of specified
closing conditions, that the Guarantor had the right, but not the obligation, to acquire the remaining 55% of the issued and outstanding share capital of Alliance Boots GmbH (the “Call Option”) in exchange for £3.133 billion
in cash, payable in British pounds sterling, and 144,333,468 shares of the Guarantor’s common stock (or, if the Reorganization (as defined below) is consummated, 144,333,468 shares of the Company’s common stock rather than the
Guarantor’s common stock), subject to certain specified adjustments (the “Second Step Transaction”). 

WHEREAS, pursuant to the Amendment, the Call Option became exercisable by the Guarantor on August 5, 2014, and the Guarantor,
through an indirect wholly owned subsidiary to which it previously assigned its rights under the Call Option, exercised the Call Option on August 5, 2014. 

WHEREAS, in connection with consummation of the Second Step Transaction, the Company has issued the Notes, the proceeds of which will
be used, among other things, to fund a portion of the cash consideration payable in connection with the Second Step Transaction. 

WHEREAS, the Guarantor desires to execute this Guarantee Agreement in connection with the Company’s issuance of the Notes in
consideration, among other things, of the benefits the Guarantor will obtain as a result of the consummation of the Second Step Transaction. 

NOW, THEREFORE, in consideration of the aforesaid premises, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, intending to be legally bound, the Guarantor hereby agrees as follows: 
 Section 1.
Guarantee. The Guarantor hereby fully and unconditionally guarantees (the “Guarantee”) to each Holder of the Notes, to the Trustee and to the Paying Agent, on an 

 
unsecured, unsubordinated basis, the full and prompt payment of principal of, premium, if any, interest on, and Additional Amounts, if any, with respect to, each series of Outstanding Notes when
and as the same become due and payable, whether at stated maturity, upon redemption, by declaration of acceleration or otherwise, including all fees and expenses due and owing to the Trustee and the Paying Agent pursuant to the terms of the
Indenture dated as of the date hereof (as it may from time to time be supplemented or amended by one or more indentures supplemental thereto entered into pursuant to the applicable provisions thereof and, with respect to any Security, including each
series of the Notes, by the terms and provisions of such Security established pursuant to Section 3.1 thereof (as such terms and provisions may be amended pursuant to the applicable provisions thereof), the “Indenture”),
between the Company and the Trustee (collectively, the “Obligations”). The Guarantee hereunder constitutes a guarantee of payment and not of collection. 

Section 2. Guarantee Absolute. The Guarantor guarantees that the Obligations will be paid strictly in accordance with the
terms of the Indenture and the Notes, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of Holders of the Notes with respect thereto. The liability of the Guarantor
under the Guarantee shall be absolute and unconditional irrespective of: 
 (a) any lack of validity or enforceability of the Indenture, the
Notes or any other agreement or instrument relating thereto; 
 (b) any change in the time, manner or place of payment of, or in any other
term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure from the Indenture; or 
 (c) any
other circumstance which might otherwise constitute a defense available to, or a discharge of, the Company or a guarantor (other than a defense of payment in full and other than as set forth in Section 3 hereof). 

Section 3. Termination of Guarantee. 

(a) From and after the consummation of the Reorganization, this Guarantee Agreement will automatically terminate, and the obligations of the
Guarantor hereunder will be unconditionally released and discharged, if and when (i) the aggregate outstanding principal amount of Capital Markets Indebtedness (as defined below), including the Existing Notes (as defined below), and Commercial
Bank Indebtedness (as defined below), in each case, of the Guarantor is less than $2,000,000,000 and (ii) the Guarantor does not guarantee any Capital Markets Indebtedness (other than the Notes or the U.S. Dollar Notes) or Commercial Bank
Indebtedness, in each case, of the Company. 
 (b) In addition, this Guarantee Agreement will automatically terminate, and the obligations
of the Guarantor hereunder will be unconditionally released and discharged, if and when the Walgreens Merger (as defined below) is consummated. 

(c) Further, this Guarantee Agreement will automatically terminate, and the obligations of the Guarantor hereunder will be unconditionally
released and discharged, with respect to any series of Outstanding Notes, upon (i) repayment of such series of Outstanding 

  
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Notes in full (including, without limitation, pursuant to the provisions of the Indenture relating to special mandatory redemption), (ii) the satisfaction and discharge of the Indenture with
respect to such series of Outstanding Notes or (iii) the defeasance or covenant defeasance of such series of Outstanding Notes in accordance with the terms of the Indenture. 

(d) Once released in accordance with its terms, this Guarantee Agreement will not subsequently be required to be reinstated for any reason.

 (e) As used herein: 
 (i)
“Capital Markets Indebtedness” means any indebtedness consisting of bonds, debentures, notes or other similar debt securities issued in (a) a public offering registered under the Securities Act of 1933, as amended, or
(b) a private placement to institutional investors that is resold in accordance with Rule 144A or Regulation S of the Securities Act of 1933, as amended, whether or not it includes registration rights entitling the holders of such debt
securities to registration thereof with the Commission. The term “Capital Markets Indebtedness” shall not, for the avoidance of doubt, be construed to include any indebtedness issued to institutional investors in a direct placement of such
indebtedness that is not resold by an intermediary (it being understood that, without limiting the foregoing, a financing that is distributed to not more than ten persons (provided that multiple managed accounts and affiliates of any such
persons shall be treated as one person for the purposes of this definition) shall be deemed not to be so underwritten or resold), or any indebtedness under the New Credit Agreements (as amended or refinanced from time to time), Commercial Bank
Indebtedness, capitalized lease obligation or recourse transfer of any financial asset or any other type of indebtedness incurred in a manner not customarily viewed as a “securities offering.” 

(ii) “Commercial Bank Indebtedness” means indebtedness for borrowed money (including undrawn commitments in respect thereof)
owed to commercial banks under financing arrangements comparable to the New Credit Agreements (including such arrangements on a bilateral basis, but excluding indebtedness under the New Credit Agreements). 

(iii) “Existing Notes” means the (i) 1.000% Notes due 2015, (ii) 1.800% Notes due 2017, (iii) 5.250% Notes due
2019, (iv) 3.100% Notes due 2022 and (v) 4.400% Notes due 2042, in each case, issued by the Guarantor and outstanding on November 10, 2014. 

(iv) “New Credit Agreements” means (i) that certain Revolving Credit Agreement, dated as of November 10, 2014,
among the Guarantor, the Company, Bank of America, N.A., as administrative agent, HSBC Securities (USA) Inc., as syndication agent, and the lenders party thereto, and (ii) that certain Term Loan Agreement, dated as of November 10, 2014,
among the Guarantor, the Company, Bank of America, N.A., as administrative agent, HSBC Bank plc, as syndication agent, and the lenders party thereto. 

(v) “U.S. Dollar Notes” means each series of U.S. dollar denominated, unsecured, unsubordinated notes issued or to be issued
by the Company to fund a portion of the cash consideration payable in connection with the Second Step Transaction, to refinance substantially all of Alliance Boots GmbH’s and its consolidated subsidiaries’ total borrowings, and/or to

  
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pay related fees and expenses, and a portion of the net proceeds from the sale of which, following the completion of the Second Step Transaction, may also be used for general corporate purposes.

 Section 4. Waiver; Subrogation. 

(a) The Guarantor hereby waives notice of acceptance of the Guarantee, diligence, presentment, demand of payment, filing of claims with a court
in the event of merger or bankruptcy of the Company, any right to require a proceeding filed first against the Company, protest or notice with respect to the Notes or the indebtedness evidenced thereby and all demands whatsoever. 

(b) The Guarantor shall be subrogated to all rights of the Trustee or the Holders of any Notes against the Company in respect of any amounts
paid to the Trustee or such Holder by the Guarantor pursuant to the provisions of this Guarantee Agreement; provided, however, that the Guarantor shall not be entitled to enforce, or to receive any payments arising out of, or based
upon, such right of subrogation until all Obligations shall have been paid in full. 
 Section 5. No Waiver; Remedies. No
failure on the part of the Trustee or any Holder of any series of Notes to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any
other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

Section 6. Transfer of Interest. This Guarantee Agreement shall be binding upon the Guarantor, and its successors, transferees
and assigns, and shall inure to the benefit of and be enforceable by any Holder of Notes, the Trustee, the Paying Agent and by their respective successors, transferees and assigns, pursuant to the terms hereof. This Guarantee Agreement shall not be
deemed to create any right in, or to be in whole or in part for the benefit of, any other person. 
 Section 7. Amendment.

 (a) Without the consent of any Holders of Notes, the Guarantor and the Trustee, at any time and from time to time, may enter into one or
more amendments or modifications hereto, for any of the following purposes: 
 (i) to evidence the succession of another Person to the
Guarantor, and the assumption by any such successor of the covenants of the Guarantor contained herein; or 
 (ii) to add to the covenants
of the Guarantor for the benefit of the Holders of all or any series of Notes or to surrender any right or power herein conferred upon the Guarantor with respect to all or any series of Notes; or 

(iii) to cure any ambiguity or to correct or supplement any provision herein which may be defective or inconsistent with any other provision
herein, or to make any other provisions with respect to matters or questions arising under this Guarantee Agreement 

  
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which shall not adversely affect the interests of the Holders of Notes of each applicable series then Outstanding in any material respect, provided that any amendment made solely to
conform the provisions of this Guarantee Agreement to the corresponding description of the Guarantee contained in the applicable prospectus or prospectus supplement for the Notes shall be deemed to not adversely affect the interests of the Holders;
or 
 (iv) to amend or supplement any provision contained herein, provided that no such amendment or supplement shall materially
adversely affect the interests of the Holders of Notes of each applicable series then Outstanding. 
 (b) Subject to Section 7(a)
above, with respect to each separate series of Outstanding Notes, the Guarantor may and the Trustee shall, with the consent of the Holders of not less than a majority in principal amount of the Outstanding Notes of each such series affected by such
amendment, modification or waiver, by Act of said Holders delivered to the Guarantor and the Trustee, enter into an agreement for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this
Guarantee Agreement in respect of such series of Outstanding Notes, of modifying in any manner the rights of the Holders of Notes of such series under this Guarantee Agreement, of releasing the Guarantor from any or all of its obligations under this
Guarantee Agreement in respect of such series or of waiving any past default hereunder with respect to such series and its consequences; provided, however, that no such agreement, without the consent of the Holder of each Outstanding Note of
the series affected thereby, shall modify this Section 7(b) in respect of such series. 
 (c) No amendment, modification or waiver in
respect of this Guarantee Agreement will be effective unless in writing and executed by each of the Guarantor and the Trustee. 
 (d) Upon
the execution of any amendment, modification or waiver under this Section 7, this Guarantee Agreement shall be deemed to be modified and amended in accordance therewith, and such amendment, modification or waiver shall form a part of this
Guarantee Agreement for all purposes; and the respective rights, limitation of rights, duties, powers, trusts and immunities under this Guarantee of the Trustee, the Paying Agent, the Guarantor and every Holder of Notes theretofore or thereafter
authenticated and delivered hereunder shall be determined, exercised and enforced thereunder to the extent provided therein. 
 (e) As a
condition to executing any amendment, modification or waiver under this Section 7, the Trustee shall receive an Opinion of Counsel stating that such amendment, modification or waiver is authorized or permitted by this Guarantee Agreement and
complies with the provisions hereof, and an Officers’ Certificate stating that all conditions precedent to the execution of such amendment, modification or waiver have been fulfilled. 

(f) As used herein: 
 (i)
“Officers’ Certificate” means a certificate signed by the Chairman of the Board, the Chief Executive Officer, a President or a Vice President, and by the Chief Financial Officer, the Treasurer or the Secretary of the Guarantor,
that complies with the requirements of Section 314(e) of the TIA (as defined below) and is delivered to the Trustee. 

  
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 (ii) “Opinion of Counsel” means a written opinion of counsel, who may be an
employee of or counsel for the Guarantor or other counsel, that, if required by the TIA, complies with the requirements of Section 314(e) of the TIA. 

Section 8. Governing Law. THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK. 
 Section 9. No Recourse Against Others. A director, officer, employee, stockholder, partner or other owner of
the Guarantor, as such, shall not have any liability for any obligations of the Guarantor under this Guarantee Agreement or for any claim based on, in respect of or by reason of such obligations or their creation. 

Section 10. Covenants. 

(a) The Guarantor shall not consolidate or amalgamate with or merge into any other Person (whether or not affiliated with the Guarantor),
unless the Guarantor is the surviving Person or the surviving Person (if other than the Guarantor) is organized and existing under the laws of the United States, any state thereof or the District of Columbia and shall expressly assume the
obligations hereunder. Notwithstanding the foregoing, this Section 10(a) shall not apply to the Walgreens Merger or any transaction in connection therewith or related thereto. 

(b) Promptly (and in any event within 10 New York Business Days) after the consummation of the Second Step Transaction, if the Reorganization
is not consummated on or prior to the date of the consummation of the Second Step Transaction, the Company will merge with and into the Guarantor (the “Walgreens Merger”), with the Guarantor surviving such merger and expressly
assuming, by supplemental indenture satisfactory in form to the Trustee, the due and punctual payment of the principal of and premium, if any, interest on, and Additional Amounts, if any, with respect to all of the Outstanding Securities under the
Indenture, and the performance of the Company’s obligations under the Indenture and the Outstanding Securities thereunder. For purposes of this of this clause (b), “New York Business Days” means any day other than a Saturday,
Sunday or other day on which banking institutions in New York City or in the city where the Corporate Trust Office of the Trustee is located are authorized or obligated by law, regulation or executive order to close. 

(c) From and after the date of the initial issuance of the Notes and until the earlier of (x) the consummation of the Reorganization or
(y) the Walgreens Merger, the Guarantor will from time to time transfer additional funds to the Company as necessary for the Company to pay accrued and unpaid interest from and including the date of initial issuance to, but excluding, the
Special Mandatory Redemption Date, and the premium component of the Special Mandatory Redemption Price. 
 (d) As used herein
“Reorganization” means the reorganization of the Guarantor into a holding company structure under which Ontario Merger Sub, Inc., a direct wholly owned Subsidiary of the Company will merge with and into the Guarantor (subject to the
satisfaction or waiver of specified closing conditions) and the Guarantor will survive such merger as a direct wholly owned Subsidiary of the Company. 

  
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 Section 11. Limitation on Liability. Any term or provision of this Guarantee
Agreement to the contrary notwithstanding, the maximum aggregate amount of the Obligations guaranteed hereunder by the Guarantor shall not exceed the maximum amount that can be hereby guaranteed by the Guarantor without rendering the Guarantee
voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally or capital maintenance or corporate benefit rules applicable to guarantees for obligations of
affiliates. 
 Section 12. Separability. In case any provision in this Guarantee Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the fullest extent
permitted by law. 
 Section 13. Headings. The section headings of this Guarantee Agreement have been inserted for convenience
of reference only, are not to be considered a part of this Guarantee Agreement and shall in no way modify or restrict any of the terms or provisions hereof. 

Section 14. Headings. Notices, Etc., to the Guarantor. Any request, demand, authorization, direction, notice, consent,
waiver or Act of Holders or other document provided or permitted by this Guarantee Agreement to be made upon, given or furnished to, or filed with, the Guarantor by the Trustee, by the Paying Agent or by any Holder shall be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to the Guarantor addressed to the address last furnished in writing to the Trustee by the Guarantor, or, if no such address has
been furnished, to Treasurer, 108 Wilmot Road, Deerfield, Illinois 60015. 
 Section 15. Rights of the Trustee and Paying
Agent. Each of the Trustee and the Paying Agent shall have no duties under this Guarantee Agreement other than those expressly set forth herein, and in entering into or in taking (or forbearing from) any action under or pursuant to the
Guarantee Agreement, each of the Trustee and the Paying Agent shall have and be protected by all of the rights, powers, immunities, indemnities and other protections granted to it under the Indenture. 

Section 16. Counterparts; Effectiveness. This Guarantee Agreement may be executed in any number of counterparts. This Guarantee
Agreement shall become effective upon the execution and delivery by the Guarantor of a counterpart hereof. 
 Section 17. Trust
Indenture Act; Application. The Guarantor understands that this Guarantee Agreement may be qualified under the Trust Indenture Act of 1939 (the “TIA”) and any provision of this Guarantee Agreement required by the TIA or
deemed to be included in this Guarantee Agreement by virtue of the TIA is hereby incorporated by reference. If any provision hereof limits, qualifies or conflicts with another provision which is required or deemed to be included in this Guarantee
Agreement by any of the provisions of the TIA, such required or deemed provision shall control. If any provision of this Guarantee Agreement modifies or excludes any provision of the TIA that may be so modified or excluded, the latter provision
shall be deemed to apply to this Guarantee Agreement as so modified or to be excluded, as the case may be. 

  
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 IN WITNESS WHEREOF, the Guarantor has caused this Guarantee Agreement to be duly executed and
delivered by its officer thereunto duly authorized as of the date first above written. 
  

			
	WALGREEN CO.
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	
	Agreed and Accepted:
	
	 WELLS FARGO BANK, NATIONAL ASSOCIATIONas Trustee

		
	By:	 	  

		 	Name:
		 	Title:
	
	 DEUTSCHE BANK TRUST COMPANY AMERICASas Paying Agent

	
	 By: DEUTSCHE BANK NATIONAL TRUST COMPANY

		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:Exhibit 10.01

 

EXECUTION COPY

 

AMENDMENT, WAIVER AND EXCHANGE AGREEMENT

 

This Amendment, Waiver
and Exchange Agreement (the “Agreement”), dated as of ______________, 2014, is by and between WPCS International
Incorporated, a Delaware corporation with offices located at 521 Railroad Avenue, Suisun City, California 94585 (the “Company”),
and the holder identified on the signature page hereto (“Holder”).

 

RECITALS

 

A.           Prior
to the date hereof, the Company has issued to the Holder (i) a senior secured convertible note with such aggregate outstanding
principal as set forth on the signature page of the Holder attached hereto (as amended, modified, waived or exchanged prior to
the date hereof, the “Existing Note”), which Existing Note is convertible into shares of the Company’s
common stock, $0.0001 par value per share (the “Common Stock”), in accordance with the terms of the Existing
Note and (ii) a warrant (as amended, modified, waived or exchanged prior to the date hereof, the “First Warrant”)
to purchase such number of shares of Common Stock as set forth on the signature page of the Holder attached hereto (without regard
to any limitations on exercise set forth therein)(the “First Warrant Shares”), in each case, pursuant to a Securities
Purchase Agreement, dated as of December 4, 2012 (as amended, modified or waived prior to the date hereof, the “First
Securities Purchase Agreement”) to the Holder and certain other investors signatory thereto.

 

B.           In
addition, prior to the date hereof, the Company has issued to the Holder (i) such aggregate number of shares of Series E Preferred
Stock of the Company as set forth on the signature page of the Holder attached hereto (as amended, modified, waived or exchanged
prior to the date hereof, the “Existing Preferred Shares”), which Existing Preferred Shares are convertible
into shares of Common Stock (as converted, collectively, the “Conversion Shares”), in accordance with the terms
of the Certificate of Designations, Preferences and Rights of Series E Preferred Stock of the Company (as amended, modified or
waived prior to the date hereof, the “Series E Certificate of Designations”) and (ii) a warrant (as amended,
modified, waived or exchanged prior to the date hereof, the “Second Warrant”, and together with the First Warrant,
the “Existing Warrants”) to purchase such number of shares of Common Stock as set forth on the signature page
of the Holder attached hereto (without regard to any limitations on exercise set forth therein)(the “Second Warrant Shares”),
in each case, pursuant to a Securities Purchase Agreement, dated as of December 17, 2013 (as amended, modified or waived prior
to the date hereof, the “Second Securities Purchase Agreement”) to the Holder and certain other investors signatory
thereto. The Existing Note, the Existing Preferred Shares and the Existing Warrants are collectively referred to herein as the
“Existing Securities”. Capitalized terms not defined herein shall have the meanings set forth in the Second
Securities Purchase Agreement as amended hereby.

 

C.           The
Company has authorized (i) a new series of preferred stock designated as Series F-1 Convertible Preferred Stock (the “Series
F-1 Preferred Stock”), the rights, preferences and other terms and provisions of which are set forth in the Certificate
of Designations, Preferences and Rights of Series F-1 Preferred Stock, in the form attached hereto as Exhibit A-1
(the “Series F-1 Certificate of Designations”), which Series F-1 Preferred Stock shall be convertible
into shares of the Company’s Common Stock (as defined below), in accordance with the terms of the Series F-1 Certificate
of Designations and (ii) a new series of preferred stock designated as Series G-1 Convertible Preferred Stock (the “Series
G-1 Preferred Stock”), the rights, preferences and other terms and provisions of which are set forth in the Certificate
of Designations, Preferences and Rights of Series G-1 Preferred Stock, in the form attached hereto as Exhibit A-2
(the “Series G-1 Certificate of Designations”), which Series G-1 Preferred Stock shall be convertible
into shares of the Company’s Common Stock (as defined below), in accordance with the terms of the Series G-1 Certificate
of Designations.

 

    	 

    	 

    

 

D.           The
Company and the Holder desire to enter into this Agreement, pursuant to which, among other things (i) the Company and the Holder
shall exchange the Existing Note for such aggregate number of shares of Series F-1 Preferred Stock as set forth on the signature
page of the Holder (the “Series F-1 Preferred Shares”, and as converted, the “Series F-1 Conversion
Shares”), (ii) the Company shall exchange the Existing Preferred Shares for (x) a promissory note in the form attached
hereto as Exhibit B, with such aggregate principal amount as set forth on the signature page of the Holder (the “Exchanged
Note”) and (y) such aggregate number of shares of Series G-1 Preferred Stock as set forth on the signature page of the
Holder (the “Initial Series G-1 Preferred Shares”) and (iii) the Company shall exchange the Existing Warrants
for such aggregate number of shares of Series G-1 Preferred Stock as set forth on the signature page of the Holder (the “Additional
Series G-1 Preferred Shares”, and together with the Initial Series G-1 Preferred Shares, the “Series G-1 Preferred
Shares”, and such Series G-1 Preferred Shares as converted, the “Series G-1 Conversion Shares”. The
Series F-1 Preferred Shares and the Series G-1 Preferred Shares are collectively referred to herein as the “Exchanged
Preferred Shares”, the Series F-1 Conversion Shares and the Series G-1 Conversion Shares are collectively referred to
herein as the “Exchanged Conversion Shares” and the Exchanged Preferred Shares, the Exchanged Conversion Shares
and the Exchanged Note are collectively referred to herein as the “Exchanged Securities”.

 

E.           The
Existing Securities will be exchanged for the Exchanged Securities in an exchange made in reliance upon the exemption from registration
provided by Section 3(a)(9) of the Securities Act.

 

AGREEMENT

 

1.          Exchange.
On the Closing Date (as defined below), the Holder shall, and the Company shall, pursuant to Section 3(a)(9) of the Securities
Act, exchange (a) the Existing Note for the Series F-1 Preferred Shares (and the Exiting Note shall be cancelled), (b) the Existing
Preferred Shares for the Exchanged Note and the Initial Series G-1 Preferred Shares (and such Existing Preferred Shares shall be
cancelled), and (c) the Existing Warrants for the Additional Series G-1 Preferred Shares (and the Existing Warrants shall be cancelled)
(collectively, the “Exchange”). On or prior to the Closing (as defined below), the following transactions shall
occur:

 

1.1           Delivery.
On the Closing Date, (a) the Company shall deliver the Exchanged Preferred Shares and the Exchanged Note to the Holder and (b)
the Existing Securities shall be extinguished and any security interest with respect to the Existing Note shall be released. The
Exchanged Preferred Shares and the Exchanged Note shall be issued in accordance with the instructions set forth on the signature
page of the Holder.

 

    	2

    	 

    

 

1.2           Other
Documents. The Company and the Holder shall execute and/or deliver such other documents and agreements as are customary and
reasonably necessary to effectuate the Amendment and the Exchange, including without limitation, instructions to Worldwide Stock
Transfer, LLC, the Collateral Agent under the Existing Note, to release all collateral contemporaneously with the execution of
this Agreement.

 

1.3           No
Additional Consideration. The parties acknowledge and agree that the Exchanged Preferred Shares and the Exchanged Note shall
be issued to the Holder in exchange for the Existing Securities without the payment of any additional consideration by the Holder.

 

1.4           Closing.
The closing of the Exchange (the “Closing”) shall occur on ____________, 2014 and be effective as of 11:30 A.M.
ET (the “Closing Date”).

 

1.5           Waiver.
Effective as of the Closing Date, the Holder hereby waives any breach of the First Securities Purchase Agreement, the Second Securities
Purchase Agreement, the Registration Rights Agreement (as defined in the First Securities Purchase Agreement) and the Registration
Rights Agreement (as defined in the Second Securities Purchase Agreement) with respect to which the Holder has received written
notice from the Company prior to the date hereof.

 

2.          AMENDMENTS
TO TRANSACTION DOCUMENTS.

 

2.1           Amendments
to Transaction Documents; Waivers.

 

(a)          Effective
as of the Closing Date, each of the Transaction Documents (as defined in the Second Securities Purchase Agreement) are hereby amended
as follows:

 

(i)          The
defined term “Preferred Shares” is hereby amended to mean, solely for the purpose of the holder of any of the Exchanged
Securities and not any other Person, “each of the “Exchanged Preferred Shares” (as defined in the Amendment,
Waiver and Exchange Agreement)”.

 

(ii)         The
defined term “Conversion Shares” is hereby amended to mean, solely for the purpose of the holder of any of the Exchanged
Securities and not any other Person, “each of the “Exchanged Conversion Shares” (as defined in the Amendment,
Waiver and Exchange Agreement)”.

 

(iii)        The
defined term “Warrants” is hereby amended to mean, solely for the purpose of the holder of any of the Exchanged Securities
and not any other Person, “each “Exchanged Note”) (as defined in the Amendment, Waiver and Exchange Agreement)”.

 

(iv)        The
defined term “Certificate of Designations” is hereby amended to mean, solely for the purpose of the holder of any of
the Exchanged Securities and not any other Person, “each of the “Series F-1 Certificate of Designations” and
“Series G-1 Certificate of Designations”) (as defined in the Amendment, Waiver and Exchange Agreement)”.

 

    	3

    	 

    

 

(v)         The
defined term “Transaction Documents” is hereby amended to include the Amendment, Waiver and Exchange Agreement.

 

(vi)        The
defined term “Amendment, Waiver and Exchange Agreements” shall mean “that certain Amendment, Waiver and Exchange
Agreement, dated as of ___________, 2014, by and between the Company and the Buyer signatory thereto”.

 

3.          Representations
and Warranties.

 

3.1           Holder
Bring Down. The Holder hereby makes the representations and warranties as to itself only as set forth in Section 2 of the Securities
Purchase Agreement (as amended hereby) as if such representations and warranties were made as of the date hereof and set forth
in their entirety in this Agreement, mutatis mutandis.

 

3.2           Company
Bring Down. Except as set forth on Schedule 3.2 hereto and subject to such disclosures set forth in the Company’s filings
with the Securities and Exchange Commission prior to the date hereof and in the 8-K Filing (as defined below), the Company hereby
makes the representations and warranties to the Holder as set forth in Section 3 of the Securities Purchase Agreement (as amended
hereby) as if such representations and warranties were made as of the date hereof and set forth in their entirety in this Amendment,
mutatis mutandis.

 

4.          Covenants.

 

4.1           Disclosure
of Transactions and Other Material Information. On or before 9:30 a.m., New York time, on the third (3rd) Business Day
following the Closing Date, the Company shall file a Current Report on Form 8-K describing all the material terms of the transactions
contemplated by the Agreements in the form required by the 1934 Act and attaching all the material agreements (including, without
limitation, this Agreement and the form of the Exchanged Warrants) (including all attachments, the “8-K Filing”).
From and after the 8-K Filing, the Company shall have disclosed all material, non-public information (if any) delivered to the
Holder by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection
with the transactions contemplated by the Agreements.

 

4.2           Reserved.

 

4.3           Holding
Period. For the purposes of Rule 144, the Company acknowledges that the holding period of the Existing Securities may be tacked
onto the holding period of each of the Exchanged Securities, and the Company agrees not to take a position contrary to this Section
4.3. The Company agrees to take all actions, including, without limitation, obtaining customary legal opinions necessary to comply
with the foregoing.

 

    	4

    	 

    

 

4.4           Trading
Restrictions. During the period commencing on the Closing Date through and including the six month anniversary of the Closing
Date, the Holder hereby agrees, severally and not jointly, for so long as the Holder owns any Exchanged Preferred Shares, the Holder
shall not, as of any time of determination, sell any Series F-1 Conversion Shares issued or issuable upon conversion of any Series
F-1 Preferred Shares of the Company on any Trading Day (as defined in the Series F-1 Certificate of Designations) in excess of
the sum of (x) 25% of such composite aggregate dollar trading volume of the Common Stock as reported on Bloomberg (as defined in
the Series F-1 Certificate of Designations) trading on such Trading Day at or in excess of $1.00 as of such time of determination
and (y) 15% of such composite aggregate dollar trading volume of the Common Stock as reported on Bloomberg ) trading on such Trading
Day below $1.00 as of such time of determination.

 

4.5           Stockholder
Approval. The Company shall provide each stockholder entitled to vote at either (x) the next annual meeting of stockholders
of the Company or (y) a special meeting of stockholders of the Company (the “Stockholder Meeting”), which shall
be promptly called and held not later than December 15, 2014 (the “Stockholder Meeting Deadline”), pursuant
to a proxy statement filed with the SEC, soliciting each such stockholder’s affirmative vote at the Stockholder Meeting for
approval of resolutions (“Stockholder Resolutions”) providing for the increase of the authorized shares of Common
Stock of the Company from 14,285,714 to 75,000,000 shares of Common Stock (such affirmative approval being referred to herein as
the “Stockholder Approval”, and the date such Stockholder Approval is obtained, the “Stockholder Approval
Date”), and the Company shall use its reasonable best efforts to solicit its stockholders’ approval of such resolutions
and to cause the Board of Directors of the Company to recommend to the stockholders that they approve such resolutions. The Company
shall be obligated to seek to obtain the Stockholder Approval by the Stockholder Meeting Deadline. If, despite the Company’s
reasonable best efforts the Stockholder Approval is not obtained on or prior to the Stockholder Meeting Deadline, the Company shall
cause an additional Stockholder Meeting to be held annually thereafter at the annual meeting of stockholders of the Company (or
if no annual meeting of stockholders of the Company is held in any given year, at a special meeting of stockholders of the Company
in such given year) until such Stockholder Approval is obtained.

 

5.          MISCELLANEOUS.

 

5.1           Effective
Time. This Agreement shall be effective upon the date each of the Company and the Holder shall have executed this Agreement
(the “Effective Time”).

 

5.2           Independent
Nature of Holder's Obligations and Rights. The obligations of the Holder under this Agreement or the other Transaction Documents
(as defined in the Series F-1 Certificate of Designations) are several and not joint with the obligations of any other Person (each,
an “Other Person”), and the Holder shall not be responsible in any way for the performance of the obligations
of any Other Person under any other Transaction Document or similar agreement of any Other Person (the “Other Documents”).
Nothing contained herein or in any Other Document or any other Transaction Document, and no action taken by the Holder pursuant
hereto, shall be deemed to constitute the Holder and such Other Persons as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Holder and Other Person are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by this Agreement, any Other Documents or any other Transaction Document
and the Company acknowledges that neither the Holder nor any Other Person are acting in concert or as a group with respect to such
obligations or the transactions contemplated by this Agreement, any Other Document and any other Transaction Document. 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 Agreement, any Other Document or out of any other Transaction Documents,
and it shall not be necessary for any Other Person to be joined as an additional party in any proceeding for such purpose.

 

    	5

    	 

    

 

6.          No
Third Party Beneficiaries. This Amendment is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

6.1           Miscellaneous
Provisions. Section 9 of the Securities Purchase Agreement (as amended hereby) is hereby incorporated by reference herein,
mutatis mutandis.

 

6.2           Most
Favored Nation. The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the
date hereof that none of the terms offered to any Person with respect to any exchange, consent, release, amendment, settlement
or waiver relating to the class of securities, terms, conditions and transactions contemplated hereby (each a “Settlement
Document”), is or will be more favorable to such Person than those of the Holder and this Agreement. If, and whenever
on or after the date hereof, the Company enters into a Settlement Document, then (i) the Company shall provide notice thereof to
the Holder immediately following the occurrence thereof and (ii) the terms and conditions of this Agreement, the Series F-1 Certificate
of Designations, the Series G-1 Certificate of Designations and the Exchanged Securities (other than any limitations on conversion
set forth therein) 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 Settlement Document, 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 Agreement, the Series F-1 Certificate of Designations, the Series G-1 Certificate of Designations or the Exchanged Securities
(as the case may be) 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 Section 5.3 shall apply similarly and
equally to each Settlement Document.

 

[The remainder of the page is intentionally
left blank]

 

    	6

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

 

	 	COMPANY:
	 	 
	 	WPCS INTERNATIONAL INCORPORATED
	 	 
	 	By:	 
	 	 	Name: Sebastian Giordano
	 	 	Title: Chief Executive Officer

 

[Amendment, Waiver and Exchange Agreement]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

 

HOLDER:

 

	Aggregate Principal Amount of Existing Note:	 
	 	 
	Aggregate Number of Existing Preferred Shares:	 
	 	 
	Aggregate Number of Shares of Common Stock Exercisable Under First Warrant:	 
	 	 
	Aggregate Number of Shares of Common Stock Exercisable Under Second Warrant:	 
	 	 
	Aggregate Principal Amount of Exchanged Note:	 
	 	 
	Aggregate Number of Series F-1 Preferred Shares	 
	 	 
	Aggregate Number of Initial Series G-1 Preferred Shares	 
	 	 
	Aggregate Number of Additional Series G-1 Preferred Shares	 
	 	 
	Address for delivery of the Exchanged Securities:	 

 

** Using
closing bid price of $0.815 [(1,260,611 (i.e. total number of warrants) * 0.815)/1000]

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