<SEC-DOCUMENT>0001554795-20-000021.txt : 20200129
<SEC-HEADER>0001554795-20-000021.hdr.sgml : 20200129
<ACCEPTANCE-DATETIME>20200129171733
ACCESSION NUMBER:		0001554795-20-000021
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20200123
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20200129
DATE AS OF CHANGE:		20200129

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Red Cat Holdings, Inc.
		CENTRAL INDEX KEY:			0000748268
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				860490034
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-31587
		FILM NUMBER:		20559065

	BUSINESS ADDRESS:	
		STREET 1:		1607 PONCE DE LEON AVE
		STREET 2:		SUITE 407
		CITY:			SAN JUAN
		STATE:			PR
		ZIP:			00909
		BUSINESS PHONE:		833-373-3228

	MAIL ADDRESS:	
		STREET 1:		1607 PONCE DE LEON AVE
		STREET 2:		SUITE 407
		CITY:			SAN JUAN
		STATE:			PR
		ZIP:			00909

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TimefireVR Inc.
		DATE OF NAME CHANGE:	20161121

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EnergyTEK Corp.
		DATE OF NAME CHANGE:	20140723

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BROADLEAF CAPITAL PARTNERS INC
		DATE OF NAME CHANGE:	20040928
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>rcat0129form8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>________________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 1pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="text-align: center; font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="text-align: center; font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">Date of Report (Date of earliest event reported): <B><U>January
23, 2019&#9;&#9;&#9;</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B><U>Red Cat Holdings, Inc.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Exact name of registrant as specified in charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; width: 34%; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 11pt"><B>Nevada</B></FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; width: 32%; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 11pt"><B>000-31587</B></FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; width: 32%; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 11pt"><B>86-0490034</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">(State or other jurisdiction</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">of incorporation)</P></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Commission</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">File Number)</P></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">(IRS Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="text-align: center; vertical-align: top; width: 51%; border-bottom: black 1pt solid">
        <P STYLE="font: 11pt/11.75pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>1607 Ponce de Leon Ave, Suite 407
        </B></P>
        <P STYLE="font: 11pt/11.75pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>San Juan, PR </B></P></TD>
    <TD STYLE="vertical-align: top; width: 1%; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; vertical-align: bottom; width: 48%; text-align: center"><FONT STYLE="font-size: 11pt"><B>00909</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(Address of principal executive offices)</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(Zip Code)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">Registrant&rsquo;s telephone number, including area code: <B><U>(833)
373-3228&#9;&#9;</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 11pt"><B>N/A</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 10pt">(Former name or former address, if changed since last report)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt">Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 24px"><FONT STYLE="font-family: Segoe UI Symbol,sans-serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Segoe UI Symbol,sans-serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Segoe UI Symbol,sans-serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Segoe UI Symbol,sans-serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD></TR>
</TABLE>
<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: -0.3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Securities registered pursuant to Section 12(b)
of the Act:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 28%; border-top: black 1pt solid; border-left: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">Title of each class</FONT></TD>
    <TD STYLE="width: 17%; border-top: black 1pt solid; border-left: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">Trading Symbol(s)</FONT></TD>
    <TD STYLE="width: 55%; border-top: black 1pt solid; border-left: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">Name of each exchange on which registered</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"><FONT STYLE="font-size: 10pt">None</FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"><FONT STYLE="font-size: 10pt">N/A</FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"><FONT STYLE="font-size: 10pt">N/A</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&sect;230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (&sect;240.12b-2 of this chapter).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -0.3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2.5in; text-align: right; text-indent: 0.5in">Emerging growth
company <FONT STYLE="font-family: Segoe UI Symbol,sans-serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If an emerging growth company, indicate by
check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act. <FONT STYLE="font-family: Segoe UI Symbol,sans-serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: -0.3in">&nbsp;&nbsp;<B>&nbsp;&nbsp;</B></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 1.01</B></TD><TD><B>Entry into a Material Definitive Agreement.</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-bottom: 0pt; text-align: justify; margin-right: 0; margin-left: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">As previously reported,
on December 31, 2019, Red Cat Holdings, Inc., a Nevada corporation (the &ldquo;Company&rdquo;), entered into an Agreement of Merger
(the &ldquo;Merger Agreement&rdquo;) with Rotor Riot Acquisition Corp., a wholly owned Ohio subsidiary of the Company (the &ldquo;Ohio
Acquisition Sub&rdquo;), Rotor Riot, LLC, an Ohio limited liability company (&ldquo;Rotor Riot&rdquo;), and the three members of
Rotor Riot (the &ldquo;Members&rdquo;). Pursuant to the terms of the Merger Agreement, upon consummation of the merger contemplated
by the Merger Agreement (the &ldquo;Merger&rdquo;), the Ohio Acquisition Sub would merge with and into Rotor Riot, with Rotor Riot
continuing as the surviving entity and a wholly owned subsidiary of the Company. At the effective time of the Merger, the issued
and outstanding membership interests of Rotor Riot held by the Members, which represented 100% of Rotor Riot&rsquo;s issued and
outstanding membership interests, would be converted into shares of common stock of the Company. In accordance with its terms,
the Merger Agreement would terminate if a closing did not occur on or before January 14, 2020 (the &ldquo;Termination Date&rdquo;),
unless such Termination Date was extended by mutual consent of the parties.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">On January 14, 2020,
the parties to the Merger Agreement entered into a first amendment to the Merger Agreement (the &ldquo;First Amendment&rdquo;),
pursuant to which the Termination Date for the Merger was extended to January 17, 2020.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">On January 22, 2020,
the parties to the Merger Agreement entered into a second amendment to the Merger Agreement (the &ldquo;Second Amendment&rdquo;),
joined in by Rotor Riot Acquisition Corp., a newly formed, wholly owned Delaware subsidiary of the Company (the &ldquo;Delaware
Acquisition Sub&rdquo;). Pursuant to the terms of the Second Amendment, (a) the Delaware Acquisition Sub replaced the Ohio Acquisition
Sub as the acquisition subsidiary to merge with and into Rotor Riot in connection with the Merger, and (b) the Termination Date
for the Merger was further extended to January 24, 2020.&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The Merger was consummated
as of January 23, 2020 (the &ldquo;Effective Date&rdquo;), as further described in Item 2.01 below. At the closing of the Merger,
the Company entered into a Make Whole Agreement (the &ldquo;Make Whole Agreement&rdquo;) with Rotor Riot, Brains Riding in Tanks,
LLC, an Ohio limited liability company and the majority owner of Rotor Riot (&ldquo;BRIT&rdquo;), and Chad Kapper, the Chief Executive
Officer and Manager of Rotor Riot, and the Chief Executive Officer and beneficial owner of 100% of the membership interests of
BRIT (&ldquo;Kapper&rdquo;), pursuant to which the Company agreed to pay all obligations of Rotor Riot, which were approximately
$915,563 as of the Effective Date. This included the issuance to BRIT of a promissory note (the &ldquo;BRIT Promissory Note&rdquo;),
as of the Effective Date, in the principal amount of $175,000 (the &ldquo;Principal Amount&rdquo;), at an interest rate of 4.75%
per annum (&ldquo;Interest&rdquo;), with $3,500 of the Principal Amount to be paid monthly, and the remaining Principal Amount
and any accrued and unpaid Interest to be paid on the earlier of (A) twelve months from the date of issuance, and (B) the closing
of an equity offering by the Company of no less than $3,000,000.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The foregoing summaries of the Merger Agreement,
the First Amendment, the Second Amendment, the Make Whole Agreement and the BRIT Promissory Note, do not purport to be complete
and are qualified in their entirety by reference to the complete text of the Merger Agreement, the First Amendment, the Second
Amendment, the Make Whole Agreement and the BRIT Promissory Note, copies of which are filed as Exhibits 10.1, 10.2, 10.3, 10.4
and 4.1 to this Current Report on Form 8-K (this &ldquo;Report&rdquo;), respectively, and incorporated herein by reference.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 2.01</B></TD><TD STYLE="text-align: justify"><B>Completion of Acquisition or Disposition of Assets.</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-bottom: 0pt; text-align: justify; margin-right: 0; margin-left: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">Reference is made to
the disclosure set forth under Item 1.01 above, which disclosure is incorporated herein by reference.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 23, 2020, the Effective Date, pursuant
to the terms of the Merger Agreement, as amended, the Delaware Acquisition Sub merged with and into Rotor Riot. Rotor Riot was
the surviving corporation in the Merger and, as a result of the Merger, became a wholly owned subsidiary of the Company.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Rotor Riot sells products and services in
the drone marketplace, primarily focused on FPV (First Person View), including unmanned aircraft systems, components, and accessories.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In
accordance with the terms of the Merger Agreement, at the closing of the Merger, each Member of Rotor Riot was to receive its
pro rata portion of the total number of shares of the Company&rsquo;s common stock issued based on: (A)(i) the purchase price
of $3,700,000, minus, (ii) the aggregate amount of debt and other payables of Rotor Riot, including those of BRIT and Kapper,
divided by (B) the volume weighted average price (&ldquo;VWAP&rdquo;) of the Company&rsquo;s common stock for the twenty trading
days prior to the closing date of the Merger. As of the Effective Date, the aggregate amount of debt and other payables of Rotor
Riot was approximately $915,563, and the VWAP of the Company&rsquo;s common stock for the twenty trading days prior to the Effective
Date was $1.25445 per share. As a result, the Company issued an aggregate of 2,219,650 shares of its common stock (the &ldquo;Shares&rdquo;)
to the Members of Rotor Riot.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the terms of the Make Whole Agreement,
as of the Effective Date, the Company agreed to pay all obligations of Rotor Riot, including those of BRIT and Kapper, in the aggregate
amount of approximately $915,563. This included the issuance to BRIT of the BRIT Promissory Note, in the principal amount of $175,000.</P>



<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Merger Agreement, as amended, contained
customary representations and warranties and pre- and post-closing covenants of each party and customary closing conditions. Breaches
of the representations and warranties are subject to indemnification provisions.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Immediately following the Merger, the Company
had 19,148,698 shares of common stock issued and outstanding. In connection with the Merger, BRIT, received 1,997,684 of the Shares,
which represented approximately 10.4% of the Company following the consummation of the Merger.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Merger was intended to be treated as a
tax-free reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 2.03</B></TD><TD STYLE="text-align: justify"><B>Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
of a Registrant.</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Reference is made to the disclosure set forth
under Items 1.01 and 2.01 above, which disclosure is incorporated herein by reference.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the Merger, the Company
entered into the Make Whole Agreement with Rotor Riot, BRIT, and Chad Kapper, pursuant to which the Company agreed to pay all
obligations of Rotor Riot, including those of BRIT and Kapper, which were approximately $915,563 as of the Effective Date. This
included the issuance to BRIT of the BRIT Promissory Note in the Principal Amount of $175,000, at an Interest rate of 4.75% per
annum, with $3,500 of the Principal Amount to be paid monthly, and the remaining Principal Amount and any accrued and unpaid Interest
to be paid on the earlier of (A) twelve months from the date of issuance, and (B) the closing of an equity offering by the Company
of no less than $3,000,000.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 3.02</B></TD><TD STYLE="text-align: justify"><B>Unregistered Sales of Equity Securities.</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-bottom: 0pt; text-align: justify; margin-right: 0; margin-left: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0"><B>Issuance of the Shares
in Connection with the Merger</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">Reference is made to
the disclosure set forth under Items 1.01 and 2.01 above, which disclosure is incorporated herein by reference.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">In connection with the
Merger, as further described in Item 2.01 above, the Company issued an aggregate of 2,219,650 Shares of its common stock to the
Members of Rotor Riot, on a pro rata basis, based on their percentage ownership of membership interests of Rotor Riot.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The issuances of the
Shares in connection with the Merger were exempt from registration under Section 4(a)(2) and/or Rule 506(b) of Regulation D as
promulgated by the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) under of the Securities Act of 1933, as amended (the
&ldquo;Securities Act&rdquo;), as transactions by an issuer not involving any public offering.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0"><B>Grant of the Hernon
Stock Options</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">Reference is made to
the disclosure set forth under Item 5.02 below, which disclosure is incorporated herein by reference.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">In connection with the
appointment of Joseph Hernon as the Company&rsquo;s Chief Financial Officer, Secretary and Treasurer on January 23, 2020, as further
described in Item 5.02 below, the Company granted Mr. Hernon 10-year stock options to purchase 1,100,000 shares of the Company's
common stock (the &ldquo;Hernon Stock Options&rdquo;) under the Company&rsquo;s 2019 Equity Incentive Plan (the &ldquo;2019 Plan&rdquo;).
The Hernon Stock Options, which are exercisable at a per share exercise price of $0.821, the closing sale price of the Company's
common stock on the OTC Market Group's OTC Pink marketplace on the date of grant, will vest on a ratable basis quarterly over a
three year period.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The issuance of the Hernon
Stock Options in connection with the appointment of Joseph Hernon as the Company&rsquo;s Chief Financial Officer, Treasurer and
Secretary was exempt from registration under Section 4(a)(2) of the Securities Act as a transaction by an issuer not involving
a public offering.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 5.02</B></TD><TD STYLE="text-align: justify"><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-bottom: 0pt; text-align: justify; margin-right: 0; margin-left: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">On January 23, 2020,
Joseph Hernon was appointed as the Company&rsquo;s Chief Financial Officer, Secretary and Treasurer, to serve in such offices at
the pleasure of the Company&rsquo;s board of directors (the &ldquo;Board&rdquo;), and until his successor has been appointed by
the Board. Prior to Mr. Hernon&rsquo;s appointment, Jeffrey Thompson, the Company&rsquo;s President and Chief Executive Officer,
and a member of the Company&rsquo;s Board, had served as Interim Chief Financial Officer (since May 31, 2019) and Secretary (since
May 15, 2019). In connection with his appointment as Chief Financial Officer, Mr. Hernon also replaced Mr. Thompson as the Company&rsquo;s
Principal Financial and Accounting Officer for SEC reporting purposes.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">Mr. Hernon, 60, has gained
extensive experience in financial services over the course of his 30-year career. From May 2016 through the date of his appointment
as the Company&rsquo;s Chief Financial Officer, Secretary and Treasurer, Mr. Hernon was a financial consultant to various private
companies. Prior to that, Mr. Hernon was the Chief Financial Officer for three public companies, including, most recently, Towerstream
Corporation from May 2008 through May 2016.&nbsp; Earlier in his career, Mr. Hernon was employed for almost 10 years by PricewaterhouseCoopers
in its audit practice and was a Senior Business Assurance Manager during his last five years with the firm.&nbsp; Mr. Hernon is
a certified public accountant and earned a Master&rsquo;s degree in Accountancy from Bentley University in 1986.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">In connection with his
appointment as Chief Financial Officer, Secretary and Treasurer, the Company granted Mr. Hernon the Hernon Stock Options under
the 2019 Plan. The Hernon Stock Options, which are exercisable at a per share exercise price of $0.821, the closing sale price
of the Company's common stock on the OTC Market Group's OTC Pink marketplace on the date of grant, will vest on a ratable basis
quarterly over a three year period.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">Mr. Hernon's initial
compensation shall be $120,000 annually and he will be eligible to participate in bonus and benefit programs, if and when implemented.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">Except as otherwise
disclosed in this Report, there are no arrangements or understandings between Mr. Hernon and any other person pursuant to which
he was appointed as an officer of the Company. In addition, there are no family relationships between Mr. Hernon and any of the
Company&rsquo;s other officers or directors. Further, except as otherwise disclosed in this Report, there are no transactions
since the beginning of our last fiscal year, or any currently proposed transaction, in which the Company is a participant, the
amount involved exceeds $120,000, and in which Mr. Hernon had, or will have, a direct or indirect material interest.<B>&nbsp;&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 9.01</B></TD><TD STYLE="text-align: justify"><B>Financial Statements and Exhibits.</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(a) <U>Financial
Statements of Businesses Acquired</U>.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company intends to file the financial statements
of Rotor Riot required by Item 9.01(a) as part of an amendment to this Report no later than 71 calendar days after the required
filing date for this Report.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(b) <U>Pro
Forma Financial Information</U>.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0">The Company intends to file the pro forma financial information
required by Item 9.01(b) as part of an amendment to this Report no later than 71 days after the required filing date for this Report.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(d) <U>Exhibits</U>.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%"><FONT STYLE="font-size: 11pt"><U>Exhibit No.</U></FONT></TD>
    <TD STYLE="width: 85%; text-align: justify"><FONT STYLE="font-size: 11pt"><U>Description</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 11pt">4.1</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 11pt">Promissory Note, dated January 23, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><FONT STYLE="font-size: 11pt">10.1</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 11pt">Agreement of Merger, dated December 31, 2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 11pt">10.2</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 11pt">Amendment No. 1 to Agreement of Merger, dated January 14, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><FONT STYLE="font-size: 11pt">10.3</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 11pt">Amendment No. 2 to Agreement of Merger, dated January 22, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 11pt">10.4</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 11pt">Make Whole Agreement, dated January 23, 2020</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">&nbsp;<BR STYLE="clear: both">
</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%">&nbsp;</TD>
    <TD STYLE="width: 34%">&nbsp;</TD>
    <TD STYLE="width: 33%">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">Date: January 29, 2020</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>RED CAT HOLDINGS, INC.</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 53%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 46%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">By:</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt"><I>&nbsp;/s/ Jeffrey Thompson</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">Jeffrey Thompson&nbsp;</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">President and Chief Executive Officer</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: -0.25in">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>2
<FILENAME>rcat0129form8kexh4_1.htm
<DESCRIPTION>EXHIBIT 4.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="text-align: right; margin: 0"><B>Exhibit 4.1</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &ldquo;SECURITIES ACT&rdquo;), OR ANY APPLICABLE STATE SECURITIES LAWS AND HAS
BEEN ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED 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 OR AN
OPINION OF COUNSEL SATISFACTORY TO THE MAKER THAT SUCH REGISTRATION IS NOT REQUIRED.</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">PROMISSORY NOTE</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 3.5in; text-align: right"><FONT STYLE="font-weight: normal">January
23, 2020</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In consideration for loans
and advances made by Brains Riding in Tanks, LLC, an Ohio limited liability company and its affiliates (&ldquo;<U>Payee</U>&rdquo;)
to Rotor Riot, LLC, an Ohio limited liability (&ldquo;<U>Rotor Riot</U>&rdquo;), aggregating a total of One Hundred Seventy-Five
Thousand and 00/100 Dollars ($175,000) (the &ldquo;<U>Principal Amount</U>&rdquo;), Red Cat Holdings, Inc., a Nevada corporation
(the &ldquo;Maker&rdquo;), which is the parent company of Rotor Riot, promises to pay the Payee the Principal Amount and all interest
accrued thereon as provided herein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Maker shall pay to
the Payee an amount equal to Three Thousand Five Hundred and 00/100 Dollars ($3,500) on the first day of each month following the
date hereof, with any remaining Principal Amount, and all interest accrued thereon, to be paid by the Maker to the Payee on the
Maturity Date. For the purposes hereof, &ldquo;<U>Maturity Date</U>&rdquo; shall be defined as the earlier of (i) the consummation
by the Maker of an equity offering with gross proceeds to the Maker of no less than $3,000,000 and (ii) the date which is twelve
(12) months from the date hereof.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Interest shall accrue on
the unpaid balance of the Principal Amount at a rate of 4.75% per annum. All interest payable hereunder shall be computed on the
basis of actual days elapsed and shall be due and payable on the Maturity Date.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Maker shall have the right
to prepay all or any portion of the outstanding Principal Amount and accrued interest thereon at any time without penalty or premium.
All payments hereunder when paid shall be applied first to the payment of all accrued interest and the balance shall be applied
to principal.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Notwithstanding any provision
contained herein, the total liability of Maker for payment of interest pursuant hereto, including late charges, shall not exceed
the maximum amount of such interest permitted by law to be charged, collected, or received from Maker, and if any payments by Maker
include interest in excess of such a maximum amount, Payee shall apply such excess to the reduction of the unpaid principal amount
due pursuant hereto, or if none is due, such excess shall be refunded.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Note is being issued
by Maker to Payee as contemplated by the Membership Interest Purchase Agreement dated the date hereof among Maker, Payee and the
other signatories thereto. Maker shall be entitled to offset any Losses (as defined in said Membership Interest Purchase Agreement)
incurred by Maker or any Purchaser Indemnitees (as defined therein) against the Principal Amount due and payable hereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In case one or more of
the following events (each, an &ldquo;<U>Event of Default</U>&rdquo;) (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court
or any order, rule or regulation of any administrative or governmental body) shall have occurred and be continuing:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">a. Default
in the payment, when due or declared due, of the Principal Amount and accrued interest on the Maturity Date; or</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">b. Maker
makes a general assignment for the benefit of creditors; or, in the absence of such application, consent, acquiescence or action,
a trustee, receiver or other custodian is appointed for Maker; or for a substantial part of the property of Maker; or any bankruptcy,
reorganization, debt arrangement or other proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation
proceeding, is authorized or instituted by, or instituted against, Maker; or any warrant of attachment or similar legal process
is issued against any substantial part of the property of Maker, then, in each case where an Event of Default occurs, Payee, by
notice in writing to Maker shall inform Maker of such Event of Default and if such default is not cured within ten business days
from the date such notice is received by Maker, then Payee, may, at its option, declare the outstanding Principal Amount to be
due and payable immediately, and upon any such declaration the same shall become immediately due and payable.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Note shall be binding
upon and inure to the benefit of and be enforceable by the respective successors and assigns of the Maker and Payee.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">All notices, requests,
demands and other communications under this Note will be in writing and will be deemed to have been duly given (a)&nbsp;on the
date of service if served personally on the party to whom notice is to be given, (b)&nbsp;on the date sent by email (with confirmation
of transmission) or (c)&nbsp;one business day after delivery to a reputable overnight delivery service for next business day delivery.
If the day on which a notice or other communication is deemed given hereunder is not a business day, then such notice or other
communication will instead be deemed given on the next business day. Such notices, requests, demands and other communications will
be addressed to the parties as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 40pt; text-align: justify">If to Maker:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 40pt; text-align: justify; text-indent: 0.5in">Red Cat Holdings,
Inc.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 40pt; text-align: justify; text-indent: 0.5in">Cobian&rsquo;s
Plaza</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 40pt; text-align: justify; text-indent: 0.5in">1607 Avenida
Juan Ponce de Leon</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 40pt; text-align: justify; text-indent: 0.5in">San Juan, PR
00909</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 40pt; text-align: justify; text-indent: 0.5in">Email: jeff@redcatpropware.com</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0pt; text-align: justify; text-indent: 40pt">With copy (which shall
not constitute notice) to:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify; text-indent: 0.75in">The Crone Law Group, P.C.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify; text-indent: 0.75in">500 Fifth Avenue, Suite
938</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify; text-indent: 0.75in">New York, New York 10110</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify; text-indent: 0.75in">Attn: Eric Mendelson,
Esq.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 20pt; text-align: justify; text-indent: 0.75in">Email: emendelson@cronelawgroup.com</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 40pt; text-align: justify">If to Payee:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Brains Riding in Tanks, LLC</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">____________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">____________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Attn: Chad Kapper</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Email: chad.kapper@britllc.com</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 40pt; text-align: justify">With a copy (which shall not constitute
notice) to:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Holland &amp; Hart LLP</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">222 Main St #2200, Salt Lake City,
UT 84101</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Attention: Jeffrey P. Steele, Esq.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Email: jpsteele@hollandhart.com</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Any party may, from time to time, designate
any other address to which any such notice to such party shall be sent. Any such notice shall be deemed to have been delivered
upon receipt.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Each of Maker and
Payee irrevocably agrees that any legal action or proceeding with respect to this Note or for recognition and enforcement of any
judgment in respect hereof brought by another party or its successors or assigns shall be brought exclusively in the state and
federal courts of the State of Ohio and each of Maker and Payee hereby (x)&nbsp;irrevocably submits with regard to any such action
or proceeding for itself and in respect to its property, generally and unconditionally, to the exclusive personal jurisdiction
of the aforesaid courts in the event any dispute arises out of this Note or any transaction contemplated hereby, (y)&nbsp;agrees
that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court
and (z)&nbsp;agrees that it will not bring any action relating to this Note or any transaction contemplated hereby in any court
other than the aforesaid courts. Any service of process to be made in such action or proceeding may be made by delivery of process
in accordance with the notice provisions contained herein. Each of the parties hereby irrevocably waives, and agrees not to assert,
by way of motion, as a defense, counterclaim or otherwise, in any action or proceeding with respect to this Note, (a)&nbsp;the
defense of sovereign immunity, (b)&nbsp;any claim that it is not personally subject to the jurisdiction of the above-named courts
for any reason other than the failure to serve process in accordance with these provisions, (c)&nbsp;that it or its property is
exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service
of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and (d)&nbsp;to
the fullest extent permitted by applicable laws and regulations that (i)&nbsp;the action or proceeding in any such court is brought
in an inconvenient forum, (ii)&nbsp;the venue of such action or proceeding is improper and (iii)&nbsp;this Note, or the subject
matter hereof, may not be enforced in or by such courts.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2.5in">RED CAT HOLDINGS, INC.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2.5in">By: <U>/s/ Jeffrey Thompson</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2.5in">Name: Jeffrey Thompson</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2.5in">Title: Chief
Executive Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2.5in">BRAINS RIDING IN TANKS,
LLC</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2.5in">By: <U>/s/ Chad Kapper</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2.5in">Name: Chad Kapper</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2.5in">Title: CEO</P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>rcat0129form8kexh10_1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.1</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center">AGREEMENT
OF MERGER</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">THIS AGREEMENT OF
MERGER (this &ldquo;<U>Agreement</U>&rdquo;), dated January 23, 2020, is by and among Red Cat Holdings, Inc. f/k/a TimefireVR,
Inc., a Nevada corporation (&ldquo;<U>Purchaser</U>&rdquo;), Rotor Riot Acquisition Corp., an Ohio corporation and wholly owned
subsidiary of Purchaser (&ldquo;<U>Sub</U>&rdquo;), Rotor Riot, LLC, an Ohio limited liability company (&ldquo;<U>Company</U>&rdquo;),
and the selling holder signatories hereto (the &ldquo;<U>Selling Holders</U>&rdquo;). Each of Purchaser, Sub, Company and Selling
Stockholders are referred to herein as a &ldquo;<U>Party</U>&rdquo; and collectively as the &ldquo;<U>Parties</U>&rdquo;.</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center">RECITALS</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">WHEREAS, the board
of managers of the Company and the boards of directors or the manager(s), as applicable, of Sub and Purchaser have determined that
it would be advisable, fair to and in the best interests of, their respective companies and the securityholders of their respective
companies that Sub merge with and into the Company (the &ldquo;<U>Merger</U>&rdquo;), with the Company to survive the Merger and
to become a wholly owned subsidiary of Purchaser, on the terms and subject to the conditions set forth in this Agreement, and,
in furtherance thereof, have approved the Merger, this Agreement and the other transactions contemplated by this Agreement;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">WHEREAS, pursuant
to the Merger, among other things, the issued and outstanding Interests (as such term is defined below) shall be converted into
the right to receive the Shares (as such term is defined below) in the manner set forth herein;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">WHEREAS, Purchaser,
Sub, the Company and each of the Selling Holders desire to make certain representations, warranties, covenants and other agreements
in connection with the Merger as set forth herein; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">WHEREAS, (i) Brains
Riding in Tanks, LLC, an Ohio limited liability company (&ldquo;<U>BRIT</U>&rdquo;) owns 7,200,000 Class A Units of membership
interests in the Company, (ii) Tyler Brenner owns 800,000 Class A Units of membership interest in the Company, and (iii) Andrew
Camden owns 1 Class A Unit in the Company (collectively, the &ldquo;<U>Interests</U>&rdquo;).</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center">AGREEMENT</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">NOW, THEREFORE,
in consideration of the premises and of the mutual covenants of the Parties hereinafter expressed, and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound by this Agreement,
it is hereby agreed as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in">Article
I.<U><BR>
DEFINITIONS</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;1.1<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Defined Terms</U>. As used herein, the terms below shall have the following meanings.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Affiliate</U>&rdquo; means, with respect to any Person, any other Person which directly or indirectly through
one or more intermediaries controls, is controlled by or is under common control with such Person. For these purposes, &ldquo;controlling&rdquo;,
&ldquo;controlled by&rdquo;, or &ldquo;under common control with&rdquo; means the possession, directly or indirectly, of the power
to direct or cause the direction of the management of such Person, whether through ownership of voting securities, by Contract,
or otherwise.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT> &ldquo;<U>Contract</U>&rdquo; means any written or oral contract, subcontract, or other legally binding agreement, understanding,
commitment, arrangement or instrument, and each and every amendment, extension, exhibit, attachment, schedule, addendum, appendix,
statement of work, change order and any other similar instrument or document relating thereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Conversion Rate</U>&rdquo; means the VWAP for the twenty (20) trading days ending on the date immediately prior
to Closing.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Dissenting Holder</U>&rdquo; means a Selling Holder which or who is entitled to relief as a dissenting member
pursuant to Section 41 of the Ohio Law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT> &ldquo;<U>Fraud</U>&rdquo; means the actual and intentional common law fraud (and not a promissory fraud, equitable fraud,
constructive fraud, negligent misrepresentation or omission, or any form of fraud based on recklessness or negligence) by a Party
to this Agreement with respect to the making of a representation or warranty set forth in Article III, Article IV or Article V
of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Governmental Authority</U>&rdquo; means any federal, state, local, municipal, county, foreign or other governmental,
quasi-governmental, administrative or regulatory authority, body, agency, court, tribunal, commission or other similar governmental
entity (including any branch, department, agency or political subdivision thereof), any self-regulating body of similar standing
or any arbitrator or arbitral body.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(g)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Indemnitees</U>&rdquo; means, as applicable, the Seller Indemnitees or the Purchaser Indemnitees.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(h)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Intellectual Property</U>&rdquo; means all intellectual property rights and other proprietary rights and protections,
including (i) patents and statutory invention registrations (including any continuations, continuations-in-part, divisions, extensions,
provisionals, reexaminations, reissues, renewals and revisions), inventions, discoveries, improvements, methods and processes;
(ii) copyrights and other published and unpublished works of authorship, including audiovisual works, collective works, software,
compilations, databases, derivative works, literary works, mask works, and sound recordings; (iii) trademarks, service marks, trade
dress, trade names, corporate names and other source identifiers, together with all goodwill associated therewith; (iv) Internet
domain names; and (v) confidential information, proprietary information, technical information, know-how and trade secrets under
applicable law, in each case including all applications, disclosures, registrations, issuances and extensions with respect thereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Knowledge</U>&rdquo; means, (i) with respect to the Company, (a) the actual knowledge of Chad Kapper (the &ldquo;<U>Seller
Knowledgeable Person</U>&rdquo; or &ldquo;CK&rdquo;), and (b) such knowledge as would be obtained by the Seller Knowledgeable Person
upon reasonable inquiry, (ii) with respect to Purchaser (a) the actual knowledge of Jeff Thompson (the &ldquo;<U>Purchaser Knowledgeable
Person</U>&rdquo;), and (b) such knowledge as would be obtained by the Purchaser Knowledgeable Person upon reasonable inquiry,
and (iii) with respect to a Selling Holder, (a) the actual knowledge of such Selling Holder, and (b) such knowledge as would be
obtained by such Selling Holder upon reasonable inquiry.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(j)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Liability</U>&rdquo; means any direct or indirect liability, indebtedness, obligation, guarantee or endorsement,
whether known or unknown, whether accrued or unaccrued, whether absolute or contingent, whether due or to become due, or whether
liquidated or unliquidated.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(k)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Liens</U>&rdquo; means all liens, mortgages, options, leases, covenants, restrictions, claims, security interests,
encumbrances or third-party rights of any nature, including without limitation, any agreement, understanding or restriction affecting
the incidents of record or beneficial ownership pertaining thereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(l)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Loss</U>&rdquo; means losses, damages, liabilities, deficiencies, actions, judgments, awards, penalties, fines,
costs or expenses of whatever kind, including reasonable attorneys&rsquo; fees and the cost of enforcing any right to indemnification
hereunder; but excluding, in each case, any exemplary, punitive or unforeseeable consequential damages, except to the extent such
damages are finally awarded and actually paid by an Indemnitee to an un-Affiliated third party in connection with a legal proceeding
against such Indemnitee.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(m)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Ohio Law</U>&rdquo; means the Ohio Limited Liability Company Act.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(n)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Operating Agreement</U>&rdquo; means the Third Amended and Restated Operating Agreement of the Company dated as
of March 1, 2019 among the Company and the Selling Holders.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(o)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Payables</U>&rdquo; shall mean that certain debt and other payables of the Company as set forth on <U>Schedule
2.2</U> attached hereto and made a part hereof.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(p)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Person</U>&rdquo; means any person or entity, whether an individual, trustee, corporation, partnership, limited
partnership, limited liability company, trust, unincorporated organization, business association, firm, joint venture or other
juridical person or Governmental Authority.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(q)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Pre-Closing Tax Period</U>&rdquo; means any taxable period ending on or before the Closing Date and, with respect
to any Straddle Period, the portion of such Straddle Period ending on and including the Closing Date.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(r)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Proceeding</U>&rdquo; means any action, audit, lawsuit, litigation, investigation or arbitration (in each case,
whether civil, criminal or administrative) pending by or before any Governmental Authority or arbitrator.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(s)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Promissory Note</U>&rdquo; means the Promissory Note dated as of the Closing issued by the Purchaser to BRIT in
the principal amount of $175,000, substantially in the form annexed hereto as <U>Exhibit A</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(t)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Purchaser Indemnitees</U>&rdquo; means (i) Purchaser, (ii) Purchaser&rsquo;s shareholders, directors, officers,
parents, employees, agents, and representatives, (iii) the Affiliates of the Persons listed in clauses (i) and (ii), and (iv) Purchaser&rsquo;s
successors and assigns.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(u)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>SEC</U>&rdquo; means the Securities and Exchange Commission.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(v)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>SEC Documents</U>&rdquo; means all reports, schedules, forms, statements and other documents required to be filed
by the Purchaser with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(w)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Securities Act</U>&rdquo; means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(x)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Seller Indemnitees</U>&rdquo; means (i) each Selling Holder, (ii) each Selling Holder&rsquo;s members, managers,
officers, parents, employees, agents, and representatives, (iii) the Affiliates of the Persons listed in clauses (i) and (ii),
and (iv) each Selling Holder&rsquo;s successors and assigns and heirs and representatives.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(y)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Share Number</U>&rdquo; means, for a Selling Holder, the number of Shares determined by multiplying the Total
Merger Consideration Shares by the percentage which such Selling Holder&rsquo;s Class A Units of membership interest in the Company
represents of all of the issued and outstanding Class A Units of membership interest in the Company as of the Effective Time. The
number of Shares each Selling Holder is entitled to receive for the Interest held by such Selling Holder shall be rounded to the
nearest Share.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(z)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Straddle Period</U>&rdquo; means a taxable period that begins on or before and ends after the Closing Date.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(aa)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Transaction Expenses</U>&rdquo; means all of the following amounts, without duplication, to the extent not paid
before Closing: all outstanding legal, financial advisory and accounting fees and expenses incurred by Company in connection with
the negotiation and consummation of the transactions contemplated hereby.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(bb)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Taxes</U>&rdquo; means any and all taxes fees, duties and other assessments, including income, license, registration,
excise, severance, occupation, premium, windfall profits, ad valorem, environmental, capital stock, franchise, profits, payroll
or employment, withholding, health insurance, social security (or similar), unemployment, disability, real property, personal property,
alternative or add-on minimum or estimated taxes imposed by any Governmental Authority, including any related interest, fines or
penalties.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(cc)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>VWAP</U>&rdquo; means the daily volume weighted average price of the common stock of Purchaser for such date (or
the nearest preceding date) on the primary trading market on which the common stock is then listed or quoted for trading as reported
by Bloomberg Financial L.P. (based on a trading day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in">Article
II.<U><BR>
THE MERGER</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.1<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>The Merger</U>. At the Effective Time, on the terms and subject to the conditions set forth in this Agreement, the Certificate
of Merger in substantially the form attached hereto as <U>Exhibit B</U> (the &ldquo;<U>Certificate of Merger</U>&rdquo;) and the
applicable provisions of Ohio Law, Sub shall merge with and into the Company, the separate corporate existence of Sub shall cease
and the Company shall continue as the surviving company and shall become a wholly owned subsidiary of Purchaser. The Company, as
the surviving company after the Merger, is hereinafter sometimes referred to herein as the &ldquo;<U>Surviving Company</U>.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.2<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Merger Consideration</U>. The merger consideration shall be such number of shares (the &ldquo;<U>Total Merger Consideration
Shares</U>&rdquo;) of common stock of the Purchaser (the &ldquo;<U>Shares</U>&rdquo;), calculated at Closing using the following
formula:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">X &#9;=&#9;<U>A - B</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 100pt"><U></U>&nbsp;C</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">with:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">X = the total number
of Shares to be issued to the Selling Holders</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">A = $3,700,000</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">B = the aggregate
amount of the Payables</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">C = the Conversion
Rate</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.3<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Closing</U>. The closing of the transactions contemplated by this Agreement (the &ldquo;<U>Closing</U>&rdquo;) will take
place at such date and time as agreed to by the Parties, subject to Section 2.14 below. The Closing may take place remotely via
the exchange of documents and signatures related to the transactions contemplated hereby. The date on which the Closing occurs
is herein referred to as the &ldquo;<U>Closing Date</U>.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.4<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Closing Deliveries of the Selling Holders and the Company</U>. At or before the Closing, in addition to any other documents
required to be delivered under other provisions of this Agreement, the Selling Holders and/or the Company, as applicable, shall
deliver (or cause to be delivered) to the Purchaser the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>the consents and approvals of third parties set forth on <U>Section&nbsp;3.7(b)</U> of the <U>Company Disclosure Schedules</U>;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>a Membership Interest Assignment from each of the Selling Holders, substantially in the form attached hereto as <U>Exhibit
C</U> (the &ldquo;<U>Assignment</U>&rdquo;), duly executed by such Selling Holder;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>an agreement (the &ldquo;<U>Make Whole Agreement</U>&rdquo;) pursuant to which the Purchaser will agree that, in connection
with the Merger, the Purchaser will agree to pay the obligations comprising the Payables, substantially in the form attached hereto
as <U>Exhibit D</U>, duly executed on behalf of the Company, BRIT and CK;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>if any of the Interests are certificated, the certificates evidencing such Interests, duly endorsed for transfer;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>a certificate executed by the manager of the Company certifying that each of the representations and warranties of the Company
set forth in Article III is accurate in all respects as of the Closing Date and that the conditions set forth in this Agreement
to be satisfied by the Company and the Selling Holders have been duly satisfied;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>a certificate executed by the manager of the Company, certifying the consent or resolutions of the manager and the members
of the Company authorizing the execution of this Agreement by the Company and the consummation of the transactions contemplated
hereby;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(g)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>a good standing certificate of the Company dated within three business days of the Closing Date; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(h)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>the Certificate of Merger.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Closing Deliveries of Purchaser</U>. At or before Closing, in addition to any other documents required to be delivered
under other provisions of this Agreement, the Purchaser shall deliver (or cause to be delivered) to the Selling Holders the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>the Shares;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>the Make Whole Agreement, duly executed on behalf of the Purchaser;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>the Promissory Note;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>the Certificate of Merger;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>a certificate executed by an officer of Purchaser, certifying that each of the representations and warranties of the Purchaser
set forth in Article IV is accurate in all respects as of the Closing Date and that the conditions set forth in this Agreement
to be satisfied by the Purchaser have been duly satisfied;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>a certificate certified by an officer of Purchaser, certifying as to the resolutions of the Board of Directors of the Purchaser
authorizing the execution of this Agreement by the Purchaser and the consummation of the transactions contemplated hereby; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(g)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>a good standing certificate of the Purchaser dated within three business days of the Closing Date.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.6<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Effective Time</U>. At the Closing, Sub and the Company shall cause the Certificate of Merger to be filed with the Secretary
of State of the State of Ohio, in accordance with the relevant provisions of Ohio Law (the time of acceptance by the Secretary
of State of the State of Ohio of such filing or such later time as may be agreed to by Purchaser and the Company in writing (and
set forth in the Certificate of Merger) being referred to herein as the &ldquo;<U>Effective Time</U>&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.7<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Effect of the Merger</U>. At the Effective Time, the effect of the Merger shall be as provided in this Agreement, the
Certificate of Merger and the applicable provisions of Ohio Law. Without limiting the generality of the foregoing, and subject
thereto, at the Effective Time, all the property, rights, privileges, powers and franchises of the Company and Sub shall vest in
the Surviving Company, and all debts, liabilities and duties of the Company and Sub shall become debts, liabilities and duties
of the Surviving Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.8<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Operating Agreement</U>. At the Effective Time, the Operating Agreement of the Surviving Company shall be amended in
its entirety to reflect the Purchaser as the sole member of the Sub.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.9<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Managers and Officers.</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>At the Effective Time, the director (s) of Sub immediately prior to the Effective Time shall be appointed as the manager(s)
of the Surviving Company immediately after the Effective Time until their respective successors are duly elected or appointed and
qualified.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>At the Effective Time, the officers of Sub immediately prior to the Effective Time shall be appointed as the officers of
the Surviving Company immediately after the Effective Time until their respective successors are duly appointed.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.10<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Effect on Company Membership Interests</U>. On the terms and subject to the conditions set forth in this Agreement, and
without any action on the part of any Selling Holder, at the Effective Time, the Interest held by each Selling Holder issued and
outstanding immediately prior to the Effective Time shall automatically be converted into, subject to and in accordance with Section
2.13, the right of such Selling Holder to receive a number of Shares equal to the Share Number for such Selling Holder. Notwithstanding
anything to the contrary contained in this Agreement, in no event shall the aggregate consideration paid by Purchaser to the Selling
Holders in their role as securityholders of the Company exceed the Total Merger Consideration Shares. The rights of the Selling
Holders as of immediately prior to the Effective Time are personal to each such Selling Holder and shall not be transferable for
any reason otherwise than by operation of law, will or the laws of descent and distribution. Any attempted transfer of such right
by any holder thereof (otherwise than as permitted by the immediately preceding sentence) shall be null and void.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.11<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Membership Interests of Sub</U>. Each outstanding share of Sub that is issued and outstanding immediately prior to the
Effective Time will, by virtue of the Merger and without further action on the part of the Company or the Purchaser as the sole
member of Sub, be converted into and become the sole membership interest of the Surviving Company (and the membership interest
of Surviving Company into which the membership interests of Sub are so converted shall be the only membership interest of the Surviving
Company&rsquo;s membership interest that are issued and outstanding immediately after the Effective Time).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.12<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Dissenter Rights</U>. Notwithstanding anything to the contrary contained herein, any Interest held by a Dissenting Holder
shall be subject to the number of Shares equal to the Share Number for such Selling Holder as provided for in Section 11.7 of the
Operating Agreement. The Company shall give Purchaser (i) prompt notice of any demands for relief as a dissenting member, withdrawals
of such demands, and any other instruments served pursuant to Ohio Law and received by the Company and (ii) the right to direct
all negotiations and proceedings with respect to dissenting members under Ohio Law. The Company shall not, except with the prior
written consent of Purchaser, or as otherwise required under Ohio Law, voluntarily make any payment or offer to make any payment
with respect to, or settle or offer to settle, any claim or demand in respect of any Interest held by a Dissenting Holder. The
payment of consideration under this Agreement to the Selling Holders (other than to Dissenting Holders who shall be treated as
provided in this Section 2.12 and under Ohio Law) shall not be affected by the exercise or potential exercise of dissenters&rsquo;
rights under Ohio Law by any other Selling Holder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;2.13<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Payment Procedures</U>. At the Closing, the Purchaser (or to such agent or agents as may be appointed by Purchaser),
upon receipt of a properly completed and duly executed Assignment and delivery, if applicable, of any certificate(s) representing
the Interest of a Selling Holder, shall issue and deliver to each Selling Holder (including a Dissenting Holder) certificate or
certificate representing the number of Shares that such Selling Holder has the right to receive pursuant to Section 2.10 which
Shares shall be, upon such delivery, duly and validly issued, fully paid and non-assessable.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 2.14&#9;<FONT STYLE="font-size: 11pt"><U>Termination
for Failure to Close</U></FONT>. This Agreement shall automatically terminate if the Closing shall not have occurred prior to 11:59
p.m. Eastern time on January 14, 2020, as such date may be extended by <FONT STYLE="font-size: 11pt">mutual consent of the Parties</FONT>.
In the event of termination of this Agreement pursuant to this Section 2.14, this Agreement shall forthwith become void and there
shall be no liability on the part of any Party; provided, however, that Section 8.7 shall survive such termination.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in">Article
III.<U><BR>
REPRESENTATIONS AND WARRANTIES OF COMPANY</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Company hereby represents
and warrants to Purchaser as of the Closing, except as set forth in the Disclosure Schedules delivered to Purchaser dated as of
the date of the Closing (the &ldquo;<U>Company Disclosure Schedules</U>&rdquo;), as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.1<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Organization; Capitalization</U>. Company is a limited liability company duly formed and validly existing and in good
standing under the laws of the State of Ohio with full limited liability company power and authority to conduct its business as
it is presently being conducted, to own or lease, as applicable, and operate its assets and properties. Company is duly qualified
or licensed to do business as a foreign entity in each state of the United States in which it is required to be so qualified or
licensed, except as would not result in a material Liability to Company. The authorized number of units of membership interest
in Company is 10,000,000 Class A Units, 8,000,001 of which are outstanding, 7,200,000 of which are owned by BRIT, 800,000 of which
are owned by TB and 1 of which is owned by AC, and 2,000,000 Profits Units, none of which are issued and outstanding. Except for
the Selling Holders, no Person holds any equity interests, debt securities, convertible securities (including options), equity
securities and/or any other securities of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The Interests constitute 100% of the
total and issued interests in the Company. The Interests have been duly authorized and are validly issued. On Closing, Purchaser
shall own all of the membership interests of the Company, free and clear of all Liens. The Interests were issued in compliance
with the organizational documents of the Company, including without limitation, the Operating Agreement, and all applicable laws.
The Interests were not issued in violation of any Contract to which the Company is a party and are not subject to or in violation
of any preemptive or similar right of any Person. There are no outstanding options, warrants, convertible securities or other rights
or Contracts of any character relating to any membership interests or other interest of Company or obligating the Company to issue
or sell any membership interests (including the Interests) or other interests in the Company. There is no right of first refusal
or other restriction on transfer or sale of the Interests other than as provided in the Operating Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.2<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Authority</U>. Company has all requisite limited liability company power and authority to enter into this Agreement and
the Make Whole Agreement and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Company
of this Agreement and the Make Whole Agreement and the consummation of the transactions contemplated hereby and thereby have been
duly authorized by all necessary action on the part of Company and no further action is required on the part of Company to authorize
this Agreement and the Make Whole Agreement and the transactions contemplated hereby and thereby. This Agreement and the Make Whole
Agreement have been duly executed and delivered by Company and, assuming the due authorization, execution and delivery by the other
parties hereto, constitute the valid and binding obligations of Company enforceable against Company in accordance with its terms,
subject to applicable bankruptcy, insolvency, moratorium or other similar laws relating to creditors&rsquo; rights and general
principles of equity.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.3<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Title to Assets</U>. Company has good and marketable title to all of its assets, free and clear of all Liens.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.4<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Intellectual Property.</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Section 3.4(a) of the Company Disclosure Schedule</U> sets forth a list of all Intellectual Property of Company (collectively,
the &ldquo;<U>Company Intellectual Property</U>&rdquo;). Company owns or is the licensee of the Company Intellectual Property.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Company has taken all commercially reasonable steps necessary to maintain the secrecy of its confidential information comprising
Company Intellectual Property.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Except as set forth on <U>Section 3.4(c) of the Company Disclosure Schedule</U>, Company has not received written notice
that the any Company Intellectual Property as used in the business of Company infringes, misappropriates, or otherwise violates
the Intellectual Property rights of a third party, and Company has not received written notice of any facts that would indicate
the foregoing. To Company&rsquo;s Knowledge, no Person is infringing, misappropriating or otherwise violating any Intellectual
Property right of Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Section 3.4(d) of the Company Disclosure Schedule</U>: (i) lists all patents, patent applications, registered copyrights
and copyright applications, registered trademarks and trademark applications included in the Company Intellectual Property (&ldquo;<U>Company&rsquo;s
Registered Intellectual Property</U>&rdquo;); and (ii) identifies all third parties that share rights to Company&rsquo;s Registered
Intellectual Property with Company, including, without limitation, joint owners and/or co-applicants.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Company has not granted any license or other right in the Company Intellectual Property to any third party.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Contracts</U>. <U>Section 3.5</U> of the <U>Company Disclosure Schedule</U> lists each Contract to which Company is a
party or by which Company or any of its assets are bound (each a &ldquo;<U>Company Contract</U>&rdquo;), including without limitation,
those Company Contracts relating directly or indirectly to the Company Intellectual Property. Each Company Contract is a legal,
valid and binding obligation of Company, is in full force and effect, and is enforceable against Company, and, to the Knowledge
of Company, the other parties thereto. Company is not in breach, violation or default under any Company Contract and no event has
occurred that, with notice or lapse of time or both, would constitute such a breach, violation or default by Company or, to the
Knowledge of Company, the other parties thereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.6<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Insurance</U>. Company has at all times maintained insurance in full force and effect as required by law or under any
agreement to which Company is or has been a party in connection with the operation of its business. <U>Section 3.6</U> of the <U>Company
Disclosure Schedule</U> contains a list of all policies of insurance held by Company, or for the benefit of Company as of the Closing
relating to the assets, business, operations, employees, officers or directors of Company, including any self-insurance or co-insurance
programs. There are currently no claims pending against Company under any insurance policies currently in effect and covering any
of the assets, business, operations, employees, members, managers or officers of Company as to which coverage has been questioned,
denied or disputed, and all premiums due and payable with respect to the policies maintained by Company have been paid to date.
To Company&rsquo;s Knowledge, there is no threatened termination of any such policies or arrangements.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.7<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Compliance with Law, Governing Documents and Other Agreements</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Company has, in all material respects, conducted its business in compliance with, and is not in material default under or
in material breach or material violation of (i) any applicable statute, law, ordinance, decree, order, rule, or regulation of any
Governmental Authority or the provisions of any franchise, permit or license with respect to the operation of its business, or
(ii) any lease, Contract, instrument, license, agreement or other document affecting its business or its assets.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The execution and the delivery by Company of this Agreement and the Make Whole Agreement, does not, and the consummation
of the transactions contemplated herein and therein and compliance with the provisions hereof and thereof will not (i) conflict
with, result in a breach of, constitute a default (with or without notice or lapse of time, or both) under or violation of, or
result in the creation of any Lien pursuant to (A) any provision of the organizational documents of Company, or (B) any mortgage,
indenture, lease, Contract or other agreement or instrument, permit, concession, franchise, license, judgment, order, decree, statute,
law, ordinance, rule or regulation applicable to Company or any of its assets, (ii) require on the part of Company any filing with,
or any permit, authorization, consent or approval of, any Governmental Authority, (iii) require any notice, consent or waiver under
any Company Contract, (iv) result in the imposition of any Lien upon any of Company&rsquo;s assets, (v) violate any order, writ,
injunction, or decree applicable to Company, or (vi) violate any statute, rule, regulation or other law applicable to Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Section 3.7(c) of the Company Disclosure Schedule</U> sets forth a complete and accurate list of all permits, licenses,
authorizations, consents and/or approvals of any Governmental Authority (each, a &ldquo;<U>Permit</U>&rdquo; and collectively,
the &ldquo;<U>Permits</U>&rdquo;) that are used or held by Company in connection with the operation of its business.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.8<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Broker&rsquo;s Fees</U>. Company has not retained any broker, finder or agent or agreed to pay any brokerage fees, finder&rsquo;s
fees or commissions with respect to the transactions contemplated by this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.9<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Taxes</U>. Except as set forth on <U>Section 3.9 of the Company Disclosure Schedule</U>, Company has timely filed all
U.S. federal, state, local and non-U.S. tax returns, estimates, declarations, reports, forms, claims for refund, information returns
or statements relating to Taxes, including any Schedule or attachment thereto, and including any amendment thereof (&ldquo;<U>Tax
Returns</U>&rdquo;) required to be filed by Company on or before the Closing. All such Tax Returns were true, correct and complete
in all material respects when filed or made. Except as set forth on <U>Section 3.9 of the Company Disclosure Schedule</U>, all
Taxes of Company which are due and payable (whether or not shown on any Tax Return) have been paid in full by Company. There are
no Liens on any of Company&rsquo;s assets that arose in connection with any failure (or alleged failure) to pay or withhold any
Tax. There are no pending audits, disputes, examinations, actions, Proceedings, investigations, assessments or claims with respect
to any Tax Returns filed by Company, and there have been no audits, disputes, examinations, actions, Proceedings, investigations,
assessments or claims with respect to Company or its business by or with any taxing authority.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.10<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Financial Statements</U>. Company has furnished to Purchaser copies of its unaudited balance sheet and profit and loss
statement for the year ended December 31, 2018 and for the period ended September 30, 2019 (collectively referred to as the &ldquo;<U>Company
Financial Statements</U>&rdquo;), which are attached as <U>Section 3.10</U> of the <U>Company Disclosure Schedule</U>. The Financial
Statements, including, to the extent applicable, the notes or schedules thereto, (a) although not prepared in accordance with generally
accepted accounting principles (&ldquo;<U>GAAP</U>&rdquo;), otherwise present fairly, in all material respects, the financial position,
results of operations and changes in financial position of Company as of such dates and for the periods then ended, and (b) are
materially complete, correct and in accordance in all material respects with the books of account and records of Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.11<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Litigation</U>. There are no actions pending before any Governmental Authority, or to Company&rsquo;s Knowledge, threatened
or reasonably expected, against Company. There is no judgment, decree or order against Company or any of its assets.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;3.12<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>No Undisclosed Liabilities</U>. Company has no Liabilities except (a) the Transaction Expenses, which are itemized on
<U>Section 3.12</U> of the <U>Company Disclosure Schedule</U>, (b) to the extent specifically reflected and accrued for or specifically
reserved against in Company&rsquo;s most recent Financial Statement, (c) for current Liabilities incurred subsequent to the most
recent Financial Statement in the ordinary course of business consistent with past practice, (d) Liabilities that would not reasonably
be expected to be material, individually or in the aggregate, to Company, and (e) the amounts reflected in the Payables.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in">Article
IV.<U><BR>
REPRESENTATIONS AND WARRANTIES OF SELLING HOLDERS</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Each Selling Holder
hereby severally but not jointly represents and warrants to Purchaser as of the date of the Closing, as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;4.1<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Title, No Liens, etc</U>. Such Selling Holder owns of record and beneficially (with good, valid and indefeasible title
to) all right, title and interest in and to the Interest owned by such Selling Holder and as set forth in Section 3.1 herein, free
and clear of all Liens. There are no existing options, rights, warrants, Contracts or instruments of any kind to which such Selling
Holder&rsquo;s Interest is subject, under or pursuant to which any Person shall be given, provided or otherwise afforded the right,
option, occasion, possibility or opportunity to purchase, encumber, foreclose upon, acquire or obtain all or any portion of the
Selling Holder&rsquo;s Interest. Other than as provided in the Operating Agreement, there is no right of first refusal or other
restriction on transfer or sale of the Selling Holder&rsquo;s Interest.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;4.2<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Organization</U>. If such Selling Holder is an entity, such Selling Holder is duly formed and validly existing and in
good standing under the laws of its state of organization.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;4.3<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Authority</U>. If such Selling Holder is an entity, such Selling Holder has all requisite company power and authority
to enter into this Agreement and the Assignment and to consummate the transactions contemplated hereby and thereby. The execution
and delivery by such Selling Holder of this Agreement, the Assignment and, if applicable to such Selling Holder, the Make Whole
Agreement, and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary
action on the part of such Selling Holder and no further action is required on the part of such Selling Holder to authorize this
Agreement, the Assignment, and, if applicable to such Selling Holder, the Make Whole Agreement, and the transactions contemplated
hereby and thereby. Each of this Agreement, and the Assignment and, if applicable to such Selling Holder, the Make Whole Agreement,
has been duly executed and delivered by such Selling Holder and assuming the due authorization, execution and delivery by the other
parties hereto and thereto and thereto, constitutes the valid and binding obligations of such Selling Holder enforceable against
such Selling Holder in accordance with their respective terms, subject to applicable bankruptcy, insolvency, moratorium or other
similar laws relating to creditors&rsquo; rights and general principles of equity.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;4.4<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Compliance with Law and Other Instruments</U>. The execution and delivery of this Agreement and the Assignment, and,
if applicable to such Selling Holder, the Make Whole Agreement, the consummation of the transactions contemplated hereby and thereby
and the performance of such Selling Holder&rsquo;s obligations hereunder and thereunder will not (and will not, with the passage
of time or the giving of notice or both) conflict with, or result in any breach, violation of or default under, any provision of
any governing instrument applicable to such Selling Holder, or any applicable Contract or instrument to which such Selling Holder
is a party or by which such Selling Holder, such Selling Holder&rsquo;s Interest or such Selling Holder&rsquo;s properties are
bound, or any permit, franchise, judgment, decree, statute, rule or regulation applicable to such Selling Holder, such Selling
Holder&rsquo;s Interest or such Selling Holder&rsquo;s business or properties.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;4.5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Litigation</U>. There are no actions pending before any Governmental Authority, or to such Selling Holder&rsquo;s Knowledge,
threatened or reasonably expected, against such Selling Holder, which questions or challenges the validity of this Agreement or
the Assignment, or any of the transactions contemplated herein or therein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;4.6<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Securities Laws Representations</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Such Selling Holder is acquiring the Shares for its own account with the present intention of holding such Shares for purposes
of investment and such Selling Holder is not acquiring the Shares with a view to or for distribution thereof, within the meaning
of the Securities Act. Such Selling Holder is acquiring the Shares for its own account as principal, not as a nominee or agent,
for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof in whole or in
part, and no other Person has a direct or indirect beneficial interest in the restricted Shares such Selling Holder is acquiring
herein. Further, such Selling Holder does not have any Contract with any Person to sell, transfer or grant participations to such
person or to any third person, with respect to the Shares such Selling Holder is acquiring.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>At no time was such Selling Holder presented with or solicited by any leaflet, newspaper or magazine article, radio or television
advertisement, or any other form of general advertising or solicited or invited to attend a promotional meeting otherwise than
in connection and concurrently with such communicated offer.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Such Selling Holder acknowledges and understands that the Shares have not been registered under the Securities Act or qualified
under the securities or &ldquo;blue sky&rdquo; laws of applicable states in reliance upon exemptions from registration or qualification
thereunder and the Shares may not be sold, offered, transferred, assigned, pledged, hypothecated or otherwise disposed of or encumbered,
except in compliance with the Securities Act and such rules and regulations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Such Selling Holder has such knowledge and experience in financial and business matters that it is capable of evaluating
the merits and risks of an investment in the Shares.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Such Selling Holder has received and reviewed the SEC Documents and all information regarding Purchaser and the Shares and
has, to the extent it has deemed necessary or advisable, reviewed the aforementioned information and this Agreement with its investment,
tax, accounting and legal advisors. Such Selling Holder and such advisors have been given a reasonable opportunity to ask questions
of and to receive answers from Purchaser concerning the acquisition of the Shares and have received or been given access to such
information and documents as such Selling Holder believes, in the context of the information provided by Purchaser, are necessary
to verify the accuracy of the information furnished to such Selling Holder concerning the Shares as such Selling Holder or such
advisors have requested, it being understood and agreed that the foregoing does not constitute a representation by such Selling
Holder as to the completeness or accuracy of information provided to it by Purchaser.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Such Selling Holder is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities
Act.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(g)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Such Selling Holder understands that the Purchaser is under no obligation to register the Shares under the Securities Act,
or to assist such Selling Holder in complying with the Securities Act or the securities laws of any state of the United States
or of any foreign jurisdiction.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(h)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Such Selling Holder understands that an investment in the Shares is a speculative investment which involves a high degree
of risk and the potential loss of its entire investment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The Shares are &ldquo;restricted&rdquo; (as that term is defined in Rule 144 promulgated under the Securities Act), and
the certificate representing the Shares shall be endorsed with one or more of the following restrictive legends, in addition to
any other legend required to be placed thereon by applicable federal or state securities laws:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0.5in 12pt 1in; text-align: justify"><B>&ldquo;THESE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS TRANSFERRED PURSUANT TO ANY VALID EXEMPTION FROM REGISTRATION AVAILABLE
UNDER SUCH ACT.&rdquo;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in">Article
V.<U><BR>
REPRESENTATIONS AND WARRANTIES OF PURCHASER AND SUB</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Purchaser and Sub
hereby represent and warrant to the Selling Holders as of the Closing, except as set forth in the Disclosure Schedules delivered
to the Selling Holders dated as of the date of the Closing (the &ldquo;<U>Purchaser Disclosure Schedules</U>&rdquo;), as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">For purposes of
these representations and warranties (other than those in <U>Sections 5.2</U> and <U>5.3</U>), the term &ldquo;<U>Purchaser</U>&rdquo;
shall include Red Cat Propware, Inc. a Nevada corporation (&ldquo;<U>Red Cat</U>&rdquo;), to the extent Red Cat is a subsidiary
of, or otherwise an Affiliate of Purchaser and a separate entity from Purchaser, unless otherwise noted herein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.1<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Organization</U>. Purchaser is a corporation duly formed and validly existing and in good standing under the laws of
the State of Nevada with full power and authority to conduct its business as it is presently being conducted, to own or lease,
as applicable, and operate its assets and properties. Purchaser is duly qualified or licensed to do business as a foreign entity
in each state of the United States in which it is required to be so qualified or licensed, except as would not result in a material
Liability to Purchaser. Sub is a corporation duly formed and validly existing and in good standing under the laws of the State
of Ohio.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.2<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Capitalization</U>. The authorized capital stock of Purchaser consists of 500,000,000 shares of common stock, of which
16,929,048 are issued and outstanding; 2,200,000 shares of Series A Preferred Stock, of which 208,704 are issued and outstanding;
and 4,300,000 shares of Series B Preferred Stock, of which 3,972,645 are issued and outstanding. The rights, privileges and preferences
of the capital stock of each class and series of the Purchaser are as set forth in the Articles of Incorporation of Purchaser.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.3<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Authority; Issuance of Purchaser Shares</U>. Purchaser has all requisite corporate power and authority to enter into
this Agreement, the Make Whole Agreement and the Promissory Note, and to consummate the transactions contemplated hereby and thereby,
including to issue the Shares at the Closing. The execution and delivery by Purchaser of this Agreement, the Make Whole Agreement
and the Promissory Note, and the consummation of the transactions contemplated hereby and thereby have been duly authorized by
all necessary action on the part of Purchaser and no further action is required on the part of Purchaser to authorize this Agreement,
the Make Whole Agreement and the Promissory Note, and the transactions contemplated hereby and thereby. This Agreement, the Make
Whole Agreement and the Promissory Note have been duly executed and delivered by Purchaser and assuming the due authorization,
execution and delivery by the other parties hereto and thereto, constitutes the valid and binding obligations of Purchaser enforceable
against Purchaser in accordance with their respective terms, subject to applicable bankruptcy, insolvency, moratorium or other
similar laws relating to creditors&rsquo; rights and general principles of equity. Sub has all requisite corporate power and authority
to enter into this Agreement, and to consummate the transactions contemplated hereby. The execution and delivery by Sub of this
Agreement, and the consummation of the transactions contemplated hereby have been duly authorized by all necessary limited liability
company action on the part of Sub and no further action is required on the part of Sub to authorize this Agreement and the transactions
contemplated hereby. This Agreement has been duly executed and delivered by Sub and assuming the due authorization, execution and
delivery by the other parties hereto and thereto, constitutes the valid and binding obligation of Sub enforceable against Sub in
accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium or other similar laws relating to creditors&rsquo;
rights and general principles of equity. The Shares, when issued in accordance with the terms of this Agreement, shall be validly
issued, fully paid and nonassessable, and free of restrictions on transfer other than restrictions on transfer under applicable
state and federal securities laws. Assuming the accuracy of the representations of the Selling Holders in Section 4.6 of this Agreement,
the Shares will be issued in compliance with all applicable federal and state securities laws.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.4<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Title to Assets</U>. Other than as provided in the SEC Documents, Purchaser has good and marketable title to all of its
assets, free and clear of all Liens. Sub has not conducted any business operations, owns no assets, is not a party to any Contracts
(other than this Agreement) and has no Liabilities.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Intellectual Property.</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The SEC Documents contain all Intellectual Property of Purchaser (collectively, the &ldquo;<U>Purchaser Intellectual Property</U>&rdquo;).
Purchaser owns or is the licensee of the Purchaser Intellectual Property.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Purchaser has taken all commercially reasonable steps necessary to maintain the secrecy of its confidential information
comprising Purchaser Intellectual Property.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Except as otherwise provided in the SEC Documents, Purchaser has not received written notice that the any Purchaser Intellectual
Property as used in the business of Purchaser infringes, misappropriates, or otherwise violates the Intellectual Property rights
of a third party, and Purchaser has not received written notice of any facts that would indicate the foregoing. To Purchaser&rsquo;s
Knowledge, no Person is infringing, misappropriating or otherwise violating any Intellectual Property right of Purchaser.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The SEC Documents contain all (i) patents, patent applications, registered copyrights and copyright applications, registered
trademarks and trademark applications included in the Purchaser Intellectual Property (&ldquo;<U>Purchaser&rsquo;s Registered Intellectual
Property</U>&rdquo;); and (ii) third parties that share rights to Purchaser&rsquo;s Registered Intellectual Property with Purchaser,
including, without limitation, joint owners and/or co-applicants.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Purchaser has not granted any license or other right in the Purchaser Intellectual Property to any third party other than
as provided in the SEC Documents.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.6<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Contracts</U>. The SEC Documents contain all material Contracts to which Purchaser is a party or by which Purchaser or
any of its assets are bound (each a &ldquo;<U>Purchaser Contract&rsquo;</U>). Each Purchaser Contract is a legal, valid and binding
obligation of Purchaser, is in full force and effect, and is enforceable against Purchaser, and, to the Knowledge of Purchaser,
the other parties thereto. Purchaser is not in breach, violation or default under any Purchaser Contract and no event has occurred
that, with notice or lapse of time or both, would constitute such a breach, violation or default by Purchaser or, to the Knowledge
of Purchaser, the other parties thereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.7<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Insurance</U>. Purchaser has at all times maintained insurance in full force and effect as required by law or under any
agreement to which Purchaser is or has been a party in connection with the operation of its business. There are currently no claims
pending against Purchaser under any insurance policies currently in effect and covering any of the assets, business, operations,
employees, members, managers or officers of Purchaser as to which coverage has been questioned, denied or disputed, and all premiums
due and payable with respect to the policies maintained by Purchaser have been paid to date. To Purchaser&rsquo;s Knowledge, there
is no threatened termination of any such policies or arrangements.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.8<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Compliance with Law, Governing Documents and Other Agreements</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Other than as provided in the SEC Documents, Purchaser has, in all material respects, conducted its business in compliance
with, and is not in material default under or in material breach or material violation of (i) any applicable statute, law, ordinance,
decree, order, rule, or regulation of any Governmental Authority or the provisions of any franchise, permit or license with respect
to the operation of its business, or (ii) any lease, Contract, instrument, license, agreement or other document affecting its business
or its assets.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The execution and the delivery by Purchaser of this Agreement, the Make Whole Agreement and the Promissory Note does not,
and the consummation of the transactions contemplated herein and therein and compliance with the provisions hereof and thereof
will not (i) conflict with, result in a breach of, constitute a default (with or without notice or lapse of time, or both) under
or violation of, or result in the creation of any Lien pursuant to (A) any provision of the organizational documents of Purchaser,
or (B) any mortgage, indenture, lease, Contract or other agreement or instrument, permit, concession, franchise, license, judgment,
order, decree, statute, law, ordinance, rule or regulation applicable to Purchaser or any of its assets, (ii) require on the part
of Purchaser any filing with, or any permit, authorization, consent or approval of, any Governmental Authority, other than the
filing of a Current Report on a Form 8-K to be filed with the SEC (iii) require any notice, consent or waiver under any Purchaser
Contract, (iv) result in the imposition of any Lien upon any of Purchaser&rsquo;s assets, (v) violate any order, writ, injunction,
or decree applicable to Purchaser, or (vi) violate any statute, rule, regulation or other law applicable to Purchaser. The execution
and the delivery by Sub of this Agreement, does not, and the consummation of the transactions contemplated herein and compliance
with the provisions hereof will not (i) conflict with, result in a breach of, constitute a default (with or without notice or lapse
of time, or both) under or violation of, or result in the creation of any Lien pursuant to (A) any provision of the organizational
documents of Sub, or (B) any mortgage, indenture, lease, Contract or other agreement or instrument, permit, concession, franchise,
license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Sub or any of its assets, (ii) require
on the part of Sub any filing with, or any permit, authorization, consent or approval of, any Governmental Authority (iii) require
any notice, consent or waiver under any Contract, (iv) result in the imposition of any Lien upon any of Sub&rsquo;s assets, (v)
violate any order, writ, injunction, or decree applicable to Sub, or (vi) violate any statute, rule, regulation or other law applicable
to Sub.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The SEC Documents list a complete and accurate list of all material Permits that are used or held by Purchaser in connection
with the operation of its business (other than immaterial and customary building occupancy certificates).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.9<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Broker&rsquo;s Fees</U>. Neither of Purchaser nor Sub has retained any broker, finder or agent or agreed to pay any brokerage
fees, finder&rsquo;s fees or commissions with respect to the transactions contemplated by this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.10<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Taxes</U>. Purchaser has timely filed all Tax Returns required to be filed by Purchaser on or before the Closing. All
such Tax Returns were true, correct and complete in all material respects when filed or made. All Taxes of Purchaser which are
due and payable (whether or not shown on any Tax Return) have been paid in full by Purchaser. There are no Liens on any of Purchaser&rsquo;s
assets that arose in connection with any failure (or alleged failure) to pay or withhold any Tax. There are no pending audits,
disputes, examinations, actions, Proceedings, investigations, assessments or claims with respect to any Tax Returns filed by Purchaser,
and there have been no audits, disputes, examinations, actions, Proceedings, investigations, assessments or claims with respect
to Purchaser or its business by or with any taxing authority.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.11<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Financial Statements</U>. The SEC Documents contain financial statements have been prepared in accordance with GAAP applied
on a consistent basis throughout the periods indicated and fairly present in all material respects the financial condition and
operating results of Purchaser as of the dates, and for the periods, indicated therein. Purchaser maintains and will continue to
maintain a standard system of accounting established and administered in accordance with GAAP.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.12<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Litigation</U>. Other than as provided in the SEC Documents, there are no actions pending before any Governmental Authority,
or to Purchaser&rsquo;s Knowledge, threatened or reasonably expected, against Purchaser. There is no judgment, decree or order
against Purchaser or any of its assets.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;5.13<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>No Undisclosed Liabilities</U>. Purchaser has no Liabilities except as provided for in the SEC Documents (a) to the extent
specifically reflected and accrued for or specifically reserved against in Purchaser&rsquo;s most recent Financial Statement, (b)
for current Liabilities incurred subsequent to the most recent Financial Statement in the ordinary course of business consistent
with past practice, and (c) Liabilities that would not reasonably be expected to be material, individually or in the aggregate,
to Purchaser.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in">Article
VI.<U><BR>
COVENANTS</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;6.1<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Confidentiality</U>. From and after the date hereof, Selling Holders and Purchaser shall, and shall cause their respective
agents, advisors, Affiliates and representatives (collectively with Selling Holders and Purchaser, the &ldquo;<U>Recipients</U>&rdquo;)
to, keep confidential any information relating to the Parties, this Agreement, and the transactions contemplated hereunder, except
for any such information that (i) is available to the public as of the Closing other than as a result of a breach by a Party of
the provisions herein, (ii) thereafter becomes available to the public other than as a result of a disclosure by a Recipient, or
(iii) is or becomes available to a Recipient on a non-confidential basis from a source that to such Recipient&rsquo;s Knowledge
is not prohibited from disclosing such information to Recipient by a legal, contractual or fiduciary obligation to any other Person.
If a Recipient is required to disclose any such information in response to a governmental order or as otherwise required by law,
it shall inform the other Party in writing of such request or obligation as soon as possible after Recipient is informed of it
and, if possible, before any information is disclosed, so that a protective order or other appropriate remedy may be obtained by
the disclosing party. If such Recipient is obligated to make such disclosure, it shall only make such disclosure to the extent
to which it is so obligated, but not further or otherwise.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;6.2<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Public Disclosure</U>. Without limiting any other provision of this Agreement, neither the Selling Holders, on the one
hand, nor Purchaser on the other hand, nor any of the respective directors, officers or employees shall, without the prior written
consent of the other Party, disclose the terms of this Agreement or the transactions contemplated hereby or make or issue any press
release or public statement (including communications with employees, customers, suppliers and other business relations of Selling
Holders) with respect to this Agreement or the transactions contemplated hereby. Notwithstanding anything contained herein to the
contrary, Purchaser shall disclose this Agreement and other public statements as required under applicable law, including without
limitation, the filing of a Current Report on Form 8-K.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;6.3<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Tax Matters</U>. Purchaser shall pay to Selling Holders any refund or rebate received (whether by payment, credit, offset
or otherwise) by it or any of its Affiliates in respect of any Taxes of the Company that relate to any Pre-Closing Tax Period,
within ten (10) days after receipt of such refund or rebate.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;6.4<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Cooperation</U>. Each Party shall, from time to time at the reasonable request of the other Party or Parties hereto,
and without further consideration, execute and deliver such other instruments of sale, transfer, conveyance, assignment, clarification
and termination, and take such other action as the Party making the request may reasonably require to effectuate the intentions
of the Parties and the transactions contemplated hereunder and related hereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;6.5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Tax Covenants.</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Tax Returns</U>. Purchaser shall prepare and file, or cause to be prepared and filed, all Tax Returns required to be
filed by Company after the Closing Date with respect to a Pre-Closing Tax Period (including, for the avoidance of doubt, any Straddle
Period). Any such Tax Return shall be prepared in a manner consistent with past practice of Company (unless otherwise required
by law). Any such Tax Returns shall be submitted by Purchaser to CK, as representative of the Selling Holders (together with schedules,
statements and, to the extent requested by Seller, supporting documentation) at least 30 days prior to the due date (including
extensions) of such Tax Return for CK&rsquo;s review and approval. To the extent the Parties cannot resolve any disputes with respect
to any such Tax Return, the dispute shall be referred to a nationally recognized accounting firm mutually agreeable to the Parties,
whose determination will be final. If the accounting firm is unable to resolve any dispute before the due date for filing such
Tax Return, the Tax Return shall be filed as initially prepared by Purchaser and then amended to reflect the accounting firm&rsquo;s
resolution. The costs of the accounting firm shall be borne by the Party that loses the dispute.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Straddle Period</U>. In the case of Taxes that are payable with respect to a Straddle Period, the portion of any such
Taxes that are attributable to the pre-Closing portion of such Straddle Period for purposes of this Agreement shall be:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.6in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>in the case of Taxes (i) based upon, or related to, income, receipts, profits, wages, capital or net worth, (ii) imposed
in connection with the sale, transfer or assignment of property, or (iii) required to be withheld, deemed equal to the amount which
would be payable if the taxable year ended with the Closing Date; provided, however, that exemptions, allowances or deductions
that are calculated on an annual basis (such as the deductions for depreciation and real estate taxes) will be apportioned between
the pre-Closing portion and the post-Closing portion of the Straddle Period in a manner consistent with the methodology described
in clause (ii) below; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.6in">(ii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>in the case of other Taxes, deemed to be the amount of such Taxes for the entire period multiplied by a fraction the numerator
of which is the number of days in the period ending on the Closing Date and the denominator of which is the number of days in the
entire period.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Pre-Closing Tax Periods</U>. Purchaser and its Affiliates shall not permit or cause the Company to (i) amend any Tax
Returns filed by the Company with respect to any Tax period beginning on or before the Closing Date, (ii) make or change any Tax
election of the Company that has retroactive effect to any Tax period beginning on or before the Closing Date, (iii) file any private
letter ruling or similar request with respect to Taxes or Tax Returns of the Company for any Tax period beginning on or before
the Closing Date, or (iv) initiate any voluntary disclosure or similar process with respect to the Company for any Tax period beginning
on or before the Closing Date, in each case without CK&rsquo;s prior written approval (such approval not to be unreasonably withheld,
conditioned or delayed).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Extraordinary Transactions</U>. Purchaser shall not and shall ensure that its Affiliates do not cause to be made any
extraordinary transaction or event on the Closing Date (other than the transactions contemplated by this Agreement) that would
reasonably be expected to result in any increased Tax liability for which the Selling Holders would be liable.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Tax Treatment</U>. The Parties intend for the Merger to qualify as a reorganization under Sections 368(a)(1)(A) and 368(a)(2)(E)
of the Code. No party shall take any position on any Tax Return or in any dispute, examination, Proceeding, or assessment with
respect to Taxes that is inconsistent with such Tax treatment, unless otherwise required by applicable law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Continuity of Business Enterprise</U>. Purchaser shall continue at least one significant historic business line of the
Company, or use at least a significant portion of the Company&rsquo;s historic business assets in a business, in each case within
the meaning of Section 1.368-1(d) of the Treasury Regulations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(g)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Continuity of Interest</U>. Neither Purchaser nor any Person related to Purchaser within the meaning of Section 1.368-1(e)(4)
of the Treasury Regulations intends to reacquire any of the Shares issued to the Selling Holders in the Merger.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;6.6<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Restrictions on Transfer</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The Shares shall not be sold, pledged, or otherwise transferred, and the Purchaser may determine not to recognize and may
issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or transfer, except upon the conditions
specified in this <U>Section 6.6</U>, which conditions are intended to ensure compliance with the provisions of the Securities
Act. Each Selling Holder will cause any proposed purchaser, pledgee, or transferee of the Shares held by such Selling Holder to
agree to take and hold such securities subject to the provisions and upon the conditions specified in this <U>Section 6.6</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The holder of the Shares, by acceptance of ownership thereof, agrees to comply in all respects with the provisions of applicable
securities laws and this <U>Section 6.6</U>. Before any proposed sale, pledge, or transfer of any Shares, unless there is in effect
a registration statement under the Securities Act covering the proposed transaction, holder thereof shall give notice to Purchaser
of such holder&rsquo;s intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner and circumstances
of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by Purchaser, shall be accompanied
at such holder&rsquo;s expense by either (i) a written opinion of legal counsel acceptable to Purchaser who shall, and whose legal
opinion shall, be reasonably satisfactory to Purchaser, addressed to Purchaser, to the effect that the proposed transaction may
be effected without registration under the Securities Act; (ii) a &ldquo;no action&rdquo; letter from the SEC to the effect that
the proposed sale, pledge, or transfer of such Shares without registration will not result in a recommendation by the staff of
the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to Purchaser
to the effect that the proposed sale, pledge, or transfer of the Shares may be effected without registration under the Securities
Act, whereupon such holder shall be entitled to sell, pledge, or transfer such Shares in accordance with the terms of the notice
given by such holder to Purchaser.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in">Article
VII.<U><BR>
INDEMNIFICATION</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;7.1<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Survival</U>. All representations and warranties of Company and Selling Holders contained in this Agreement shall survive
the Closing until the date that is twelve (12) months after the Closing; <I>provided, that,</I> the representations and warranties
of Company contained in Section 3.1, Section 3.2 and Section 3.3 and the representations and warranties of Selling Holders contained
in Section 4.1, Section 4.2 and Section 4.3 shall survive the Closing until the expiration of the applicable statute of limitations.
All representations and warranties of Purchaser and Sub contained in this Agreement shall survive the Closing. All covenants and
agreements contained in this Agreement shall survive the Closing until performed and satisfied in accordance with its terms. An
Indemnitee shall have no right to assert a claim after expiration of the foregoing survival periods.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;7.2<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Indemnification Obligations of Selling Holders</U>. Selling Holders, severally but not jointly (the &ldquo;<U>Seller
Indemnitors</U>&rdquo;) shall indemnify and hold harmless the Purchaser Indemnitees from, against, for and in respect of any and
all Losses asserted against, relating to, imposed upon or incurred by a Purchaser Indemnitee by reason of, resulting from, based
upon or arising out of any of the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>the breach or inaccuracy of any representation or warranty of a Selling Holder or Company contained in or made pursuant
to this Agreement;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>the breach or nonperformance of any covenant or agreement of a Selling Holder or Company contained in this Agreement;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>all Taxes of Company for any Pre-Closing Tax Period;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Fraud by a Selling Holder or Company in connection with this Agreement and the transactions contemplated hereby; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>all claims, actions, suits, Proceedings, demands, assessments, judgments, costs and expenses incident to any of the foregoing.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;7.3<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Indemnification Obligations of Purchaser</U>. Purchaser shall indemnify and hold harmless the Seller Indemnitees from,
against, for and in respect of any and all Losses asserted against, relating to, imposed upon or incurred by a Seller Indemnitee
by reason of, resulting from, based upon or arising out of any of the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>the breach or inaccuracy of any representation or warranty of Purchaser or Sub contained in or made pursuant to this Agreement;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>the breach or nonperformance of any covenant or agreement of Purchaser or Sub contained in this Agreement, the Make Whole
Agreement or the Promissory Note;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Fraud by Purchaser, Sub or any other of Purchaser&rsquo;s Affiliates in connection with this Agreement and the transactions
contemplated hereby; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>all claims, actions, suits, Proceedings, demands, assessments, judgments, costs and expenses incident to any of the foregoing.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;7.4<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Limitations</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Liability Cap</U>. Subject to Section 7.4(b), the maximum aggregate amount that the Purchaser Indemnitees are entitled
to recover from Seller Indemnitors under Section 7.2(a) is an amount equal to seven- and one-half percent (7.5%) of the Purchase
Price.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Applicability Liability Cap</U>. The limitations set forth in Sections 7.4(a) shall not apply in the case of Fraud or
to the representations and warranties of Company in Section 3.1, Section 3.2 and Section 3.3 and the representations and warranties
of Selling Holders contained in Section 4.1, Section 4.2 and Section 4.3, in each which case, the maximum aggregate amount that
the Purchaser Indemnitees are entitled to recover from Seller Indemnitors is an amount equal to the Purchase Price. Subject to
the other limitations set forth herein, each Seller Indemnitor shall be liable only for (i) breaches of or inaccuracies in his
or its own representations and warranties and breaches or nonperformance of his or its own covenants (and not those of any other
Selling Holder); (ii) breaches of or inaccuracies in the Company&rsquo;s representations and warranties and breaches or nonperformance
of Company covenants; (iii) his or its own Fraud or Fraud of the Company (and not Fraud of any other Selling Holder); (iv) Taxes
of the Company for any Pre-Closing Tax Period.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Exclusive Remedy</U>. Claims for indemnification, compensation and reimbursement brought in accordance with and subject
to this <U>Article VII</U> shall be the sole and exclusive remedy of any Indemnitee for monetary claims from and after the Closing
with respect to breaches of this Agreement by the applicable party. Without limiting the generality of the foregoing, nothing contained
in this Agreement shall limit the rights of any Indemnitee to seek or obtain injunctive relief, including specific performance,
or any other equitable remedy to which such Indemnitee is otherwise entitled, and attorney&rsquo;s fees and costs. The parties
acknowledge that, other than as expressly provided in this Agreement, (i) no current or former member, manager, officer, employee,
Affiliate or advisor of Company or Selling Holders has made or is making any representations or warranties whatsoever regarding
Company or Selling Holders or the subject matter of this Agreement, express or implied, and (ii) except as expressly provided in
<U>Article III</U> and <U>Article IV</U>, the Company and Selling Holders have not made and are not making, and Purchaser is not
relying upon, any representations or warranties whatsoever regarding the Company, the Selling Holders or the subject matter of
this Agreement, express or implied.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Tax Benefits</U>. The amount of any claim that any Indemnitee may recover pursuant to this <U>Article VII</U> shall be
reduced by an amount equal to any tax benefit actually realized by way of a reduction in cash taxes payable as a result of such
claim by such Indemnitee within or for the tax year in which such claim occurred.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Insurance</U>. The amount of any claim that any Indemnitee may recover pursuant to this <U>Article VII</U> shall be reduced
by an amount equal to any insurance proceeds received by such Indemnitee resulting from any insurance policy relating to such claim.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;7.5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Indemnification Procedure</U>. Whenever any claim shall arise for indemnification hereunder, the Indemnitee shall promptly
provide written notice of such claim to the indemnifying Party (the &ldquo;<U>Indemnifying Party</U>&rdquo;). In connection with
any claim giving rise to indemnity hereunder resulting from or arising out of any action by a Person who is not a party to this
Agreement, the Indemnifying Party, at its sole cost and expense and upon written notice to the Indemnitee, may assume the defense
of any such action with counsel reasonably satisfactory to the Indemnitee; <I>provided, however</I>, that the Indemnifying Party
shall not be entitled to defend a third party claim that (a) involves an actual conflict of interest, (b) seeks an injunction or
other equitable relief against an Indemnitee or (c) is asserted by a Person who is a customer, supplier, partner or reseller of
the Indemnitee or any Affiliate thereof. The Indemnitee shall be entitled to participate in the defense of any such action, with
its counsel and at its own cost and expense. If the Indemnifying Party does not assume the defense of any such action, the Indemnitee
may, but shall not be obligated to, defend against such action in such manner as it may deem appropriate, including settling such
action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnitee may deem appropriate and no action
taken by the Indemnitee in accordance with such defense and settlement shall relieve the Indemnifying Party of its indemnification
obligations herein provided with respect to any damages resulting therefrom. The Indemnifying Party shall not settle any action
without the Indemnitee&rsquo;s prior written consent (which consent may be withheld in the Indemnitee&rsquo;s sole discretion).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;7.6<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Tax Treatment</U>. The Parties shall treat for Tax purposes any indemnity payment made pursuant to this Agreement as
an adjustment to the total purchase price, unless otherwise required by applicable law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;7.7<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>No Duplication of Recovery</U>. Any claim for which any Indemnitee is entitled to indemnification hereunder shall be
determined without duplication of recovery by reason of the state of facts giving rise to such claim constituting a breach of more
than one representation, warranty, covenant or agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;7.8<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Further Limitation on Indemnification</U>. The Purchaser Indemnitors&rsquo; rights to indemnification, payment, reimbursement
or any other remedy based upon a breach of or inaccuracy in any representation, warranty, covenant, agreement or obligation contained
in this Agreement will be deemed to have been waived to the extent that Selling Holders can reasonably demonstrate that Purchaser
had Knowledge of such breach or inaccuracy prior to the Closing.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;7.9<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Other Matters</U>. Notwithstanding anything in this Agreement to the contrary, no party will be entitled to indemnification
or reimbursement under any provision of this Agreement for any amount to the extent such party or its Affiliate has been indemnified
or reimbursed for such amount under any other provision of this Agreement, or any other document executed in connection with this
Agreement</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; text-transform: uppercase; text-align: center">Article
VIII.<U><BR>
MISCELLANEOUS</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.1<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Assignment; Binding Agreement.</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Neither this Agreement nor any of the rights or obligations hereunder may be assigned by Selling Holders or Purchaser without
the prior written consent of the other, except that Purchaser can assign this Agreement to a wholly-owned subsidiary.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.1in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>This Agreement shall be binding upon and shall inure to the benefit of the Parties and to their respective successors and
permitted assigns and heirs and representatives.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.2<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Entire Agreement, Modification and Waivers</U>. This Agreement, together with any agreement related to the transactions
contemplated hereby and the other documents and instruments referred to herein and all exhibits and schedules hereto, constitutes
the entire agreement among the Parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings,
negotiations and discussions, whether oral or written, of the Parties. This Agreement may be supplemented, modified or amended
by the written agreement of Purchaser, Company and Selling Holders. No supplement, modification or other amendment or waiver of
this Agreement shall be binding unless executed in writing by the Party to be bound thereby. No waiver of any of the provisions
of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall
such waiver constitute a continuing waiver unless otherwise expressly provided.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.3<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Severability</U>. If any provision of this Agreement is deemed or held to be illegal, invalid or unenforceable, this
Agreement shall be considered divisible and inoperative as to such provision to the extent it is deemed to be illegal, invalid
or unenforceable, and in all other respects this Agreement shall remain in full force and effect; <I>provided, however</I>, that
if any provision of this Agreement is deemed or held to be illegal, invalid or unenforceable the Parties agree to replace such
illegal, invalid or unenforceable provision with a provision that is legal, valid and enforceable that achieves the original intent
of the Parties as closely as possible. Further, if any provision contained in this Agreement is reformed or rewritten by any judicial
body of competent jurisdiction, such provision, as so reformed or rewritten, shall be binding upon all Parties.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.4<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Counterparts; Electronic Signatures</U>. This Agreement may be executed in two or more identical counterparts, each of
which shall be deemed an original but all of which together will constitute one and the same instrument. This Agreement, any and
all agreements and instruments executed and delivered in accordance herewith, along with any amendments hereto and thereto, to
the extent signed and delivered by means of email or other electronic transmission, shall be treated in all manner and respects
and for all purposes as an original signature, agreement or instrument and shall be considered to have the same binding legal effect
as if it were the original signed version thereof delivered in Person.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Headings; Interpretation</U>. In this Agreement, unless the context otherwise requires, references: (a) to the recitals,
articles, sections, exhibits or schedules are to a Recital, Article or Section of, or Exhibit or Schedule to, this Agreement; (b)
to any agreement (including this Agreement), Contract, statute, regulation or law are to the agreement, Contract, statute, regulation
or law as amended, modified, supplemented or replaced from time to time, and to any Section of any statute or law are to any successor
to the section; (c) to any Governmental Authority include any successor to that Governmental Authority and (d) to this Agreement
are to this Agreement and the exhibits and schedules to it, taken as a whole. The headings contained herein are for reference purposes
only and do not limit or otherwise affect any of the provisions of this Agreement. Whenever the words &ldquo;include&rdquo;, &ldquo;includes&rdquo;
or &ldquo;including&rdquo; are used in this Agreement, they shall be deemed to be followed by the words &ldquo;without limitation&rdquo;.
Whenever the words &ldquo;herein&rdquo; or &ldquo;hereunder&rdquo; are used in this Agreement, they shall be deemed to refer to
this Agreement as a whole and not to any specific Section, unless otherwise indicated. The terms defined in the singular shall
have a comparable meaning when used in the plural, and vice versa, and words denoting any gender include all genders. The terms
&ldquo;dollars&rdquo; and &ldquo;$&rdquo; shall mean dollars of the United States of America.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.6<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Governing Law</U>. This Agreement shall be construed, interpreted and the rights of the Parties determined in accordance
with the laws of the State of Ohio (without reference to any choice of law rules that would require the application of the laws
of any other jurisdiction).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.7<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Payment of Fees and Expenses</U>. Except as explicitly provided for herein, the Company and the Selling Holders, on the
one hand, and Purchaser, on the other hand, shall be responsible for their own fees and expenses incurred in connection with the
negotiation, preparation and execution of this Agreement and the consummation of the transaction contemplated hereby.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.8<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Notices</U>. All notices, requests, demands and other communications under this Agreement will be in writing and will
be deemed to have been duly given (a) on the date of service if served personally on the Party to whom notice is to be given, (b)
on the date sent by email (with confirmation of transmission) or (c) one Business Day after delivery to a reputable overnight delivery
service for next Business Day delivery. If the day on which a notice or other communication is deemed given under this <U>Section
8.8</U> is not a Business Day, then such notice or other communication will instead be deemed given on the next Business Day. Such
notices, requests, demands and other communications will be addressed to the Parties as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">If to Purchaser:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">Jeffrey M. Thompson</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">Red Cat Holdings, Inc.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">Cobian&rsquo;s Plaza</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">1607 Avenida Juan Ponce de Leon</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">San Juan, PR 00909</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">Email: jeff@redcatpropware.com</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">With copy (which shall not constitute notice) to:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">The Crone Law Group, P.C.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">500 Fifth Avenue, Suite 938</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">New York, New York 10110</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">Attn: Eric Mendelson, Esq.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">Email: emendelson@cronelawgroup.com</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">If to Selling Holders:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">At the address or e-mail set forth on the signature page
hereto</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">With a copy (which shall not constitute notice) to:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">Holland &amp; Hart LLP</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">222 Main St #2200, Salt Lake City, UT 84101</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">Attention: Jeffrey P. Steele, Esq.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in">Email: jpsteele@hollandhart.com</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Any Party may, from
time to time, designate any other address to which any such notice to such Party shall be sent. Any such notice shall be deemed
to have been delivered upon receipt.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.9<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Schedules</U>. The Schedules and the Exhibits referenced in this Agreement are a material part hereof and shall be treated
as if fully incorporated into the body of the Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.10<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>No Third-Party Beneficiaries</U>. Nothing expressed or referred to in this Agreement will be construed to give any Person
other than the Parties (and their successors and assigns) any legal or equitable right, remedy, or claim under or with respect
to this Agreement or any provision of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.11<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Submission to Jurisdiction; Waivers; Consent to Service of Process</U>. Except as otherwise provided in this Agreement,
each Party irrevocably agrees that any legal action or Proceeding with respect to this Agreement or for recognition and enforcement
of any judgment in respect hereof brought by another Party or its successors or assigns shall be brought exclusively in the state
and federal courts of the State of Ohio and each of the Parties hereby (x) irrevocably submits with regard to any such action or
Proceeding for itself and in respect to its property, generally and unconditionally, to the exclusive personal jurisdiction of
the aforesaid courts in the event any dispute arises out of this Agreement or any transaction contemplated hereby, (y) agrees that
it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (z)
agrees that it will not bring any action relating to this Agreement or any transaction contemplated hereby in any court other than
the aforesaid courts. Any service of process to be made in such action or Proceeding may be made by delivery of process in accordance
with the notice provisions contained in Section 8.8. Each of the Parties hereby irrevocably waives, and agrees not to assert, by
way of motion, as a defense, counterclaim or otherwise, in any action or Proceeding with respect to this Agreement, (a) the defense
of sovereign immunity, (b) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason
other than the failure to serve process in accordance with this Section 8.11, (c) that it or its property is exempt or immune from
jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment
prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and (d) to the fullest extent
permitted by applicable laws and regulations that (i) the action or Proceeding in any such court is brought in an inconvenient
forum, (ii) the venue of such action or Proceeding is improper and (iii) this Agreement, or the subject matter hereof, may not
be enforced in or by such courts.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.12<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Other Remedies</U>. Any and all remedies expressly conferred under this Agreement upon a Party will be deemed cumulative
with, and not exclusive of, any other remedy conferred by law or equity upon such Party, and the exercise by a Party of any one
remedy will not preclude the exercise of any other remedy.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.13<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>No Strict Construction</U>. The Parties have participated jointly in the negotiation and drafting of this Agreement.
If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the
Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any
of the provisions of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.14<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Waiver of Jury Trial</U>. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE REGULATIONS, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section&nbsp;8.15<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Waiver of Conflict</U>. Purchaser and Company agree that Purchaser shall not, and shall cause Company not to, seek to
have Holland &amp; Hart LLP (&ldquo;<U>H&amp;H</U>&rdquo;) disqualified from representing the Selling Holders or any of his or
its Affiliates in connection with any dispute that may arise between the Selling Holders or any of his or its Affiliates, on the
one hand, and the Purchaser or any of its Affiliates, on the other, in connection with this Agreement or the transactions contemplated
hereby. In the event of any such dispute, the Selling Holders and/or any of his or its Affiliates shall have the right to decide
whether or not to waive the attorney-client privilege (the &ldquo;<U>Retained Privilege</U>&rdquo;) that may apply to any communications
between the Company and H&amp;H that occurred before the Closing; provided, that nothing in this Section 8.15 shall be construed
as a waiver of any attorney-client privilege. Nothing in this Section 8.15 shall be construed as a waiver of any privilege controlled
by Purchaser after the Closing (which for the avoidance of doubt excludes the Retained Privilege), nor shall anything herein be
construed to permit H&amp;H to communicate with the Selling Holders or any of his or its Affiliates after the Closing any information
subject to a privilege controlled by Purchaser or the Company (which for the avoidance of doubt excludes the Retained Privilege).
Notwithstanding any other provision herein, this Section 8.15 shall be irrevocable, and no term of this Section 8.15 may be amended,
waived or modified, without the prior written consent of the Selling Holders and H&amp;H.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">[<I>Remainder of page intentionally left blank.</I>]</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the Parties have executed this Agreement of Merger or caused this Agreement to be duly executed on their respective behalf, by
their respective duly authorized officers, all as of the day and year first above written.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>PURCHASER:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Red Cat Holdings, Inc.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By: <U>/s/ Jeffrey Thompson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: Jeffrey Thompson</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: Chief Executive Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>SUB:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">ROTOR RIOT ACQUISITION CORP</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By: <U>/s/ Jeffrey Thompson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: Jeffrey Thompson</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: President</P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>SELLING HOLDERS:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Brains Riding in Tanks, LLC</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By: <U>/s/ Chad Kapper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Chad Kapper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>CEO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Address: ________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">_______________________________&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">E-Mail: _________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>/s/ Tyler Brennan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Tyler Brennan</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Address: ________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">_______________________________&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">E-Mail: _________________________</P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>/s/ Andrew Camden&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Andrew Camden</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Address: ________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">_______________________________&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">E-Mail: _________________________</P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>COMPANY:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Rotor Riot, LLC</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By: <U>/s/ Chad Kapper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Chad Kapper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>CEO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


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<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>rcat0129form8kexh10_2.htm
<DESCRIPTION>EXHIBIT 10.2
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<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.2</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><B><U>AMENDMENT NO. 1 </U></B></P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><B><U>TO AGREEMENT OF MERGER</U></B></P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>THIS AMENDMENT NO. 1
TO AGREEMENT OF MERGER</B> (this &ldquo;<B>Amendment</B>&rdquo;) is made as of January 14, 2020, by and among Red Cat Holdings,
Inc. f/k/a TimefireVR, Inc., a Nevada corporation (the &ldquo;<B>Purchaser</B>&rdquo;), Rotor Riot Acquisition Corp., an Ohio corporation
and wholly owned subsidiary of the Purchaser (&ldquo;<B>Sub</B>&rdquo;), Rotor Riot, LLC, an Ohio limited liability company (&ldquo;<B>Company</B>&rdquo;),
and the selling holder signatories hereto (the &ldquo;<B>Selling Holders</B>&rdquo;). Each of the Purchaser, the Sub, the Company
and the Selling Holders are referred to herein as a &ldquo;<B>Party</B>&rdquo; and collectively as the &ldquo;<B>Parties</B>&rdquo;.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B><U>W I T N E S S E T H</U></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>,
the Parties entered into an Agreement of Merger, dated December 31, 2019 (the &ldquo;<B>Agreement</B>&rdquo;), pursuant to which
the Sub will merge with and into the Company (the <B>Merger</B>&rdquo;), with the Company continuing as the surviving entity and
a wholly-owned subsidiary of the Purchaser; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>,
the Closing of the Merger has not yet occurred; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in"><B>WHEREAS,</B>
the Parties wish to amend the Agreement on the terms set forth herein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE</B>,
in consideration of the mutual promises herein contained and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereby agree to amend the Agreement as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in"><B>1.&#9;<U>Definitions;
References; Continuation of Agreement</U>.</B> Unless otherwise specified herein, each term used herein that is defined in the
Agreement shall have the meaning assigned to such term in the Agreement. Each reference to &ldquo;hereof,&rdquo; &ldquo;hereto,&rdquo;
&ldquo;hereunder,&rdquo; &ldquo;herein&rdquo; and &ldquo;hereby&rdquo; and each other similar reference, and each reference to
&ldquo;this Agreement&rdquo; and each other similar reference, contained in the Agreement shall from and after the date hereof
refer to the Agreement as amended hereby. Except as amended hereby, all terms and provisions of the Agreement shall continue unmodified
and remain in full force and effect.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0pt; text-align: justify; text-indent: 0.5in"><B>2.&#9;<U>Amendment</U>.</B>
The Parties hereby agree that Section 2.14 of the Agreement shall be deleted and replaced in its entirety by the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0.5in 0pt; text-align: justify; text-indent: 0.5in">&ldquo;Section
2.14&#9;<U>Termination for Failure to Close</U>. This Agreement shall automatically terminate if the Closing shall not have occurred
prior to 11:59 p.m. Eastern time on January 17, 2020, as such date may be extended by mutual consent of the Parties. In the event
of termination of this Agreement pursuant to this Section 2.14, this Agreement shall forthwith become void and there shall be no
liability on the part of any Party; provided, however, that Section 8.7 shall survive such termination&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>




<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>3. <U>Miscellaneous</U>.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">4.1 Except
as specifically amended or modified as set forth herein, all other terms of the Agreement are ratified and confirmed and remain
in full force and effect, to the extent they are in full force and effect as of the date of this Amendment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">4.2 This
Amendment 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.&nbsp; In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a &ldquo;.pdf&rdquo; format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or &ldquo;.pdf&rdquo;
signature page were an original thereof.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">4.3 This
Agreement shall be construed, interpreted and the rights of the Parties determined in accordance with the laws of the State of
Ohio (without reference to any choice of law rules that would require the application of the laws of any other jurisdiction).</P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in">(Signature page
to follow)</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS
WHEREOF,</B> the parties hereto have caused this Amendment to be duly executed on the date first above written.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>PURCHASER:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>RED CAT HOLDINGS, INC.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By:&nbsp;<U>/s/ Jeffrey Thompson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Jeffrey Thompson&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>President and CEO&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>SUB:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>ROTOR RIOT ACQUISITION CORP. </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By:&nbsp;<U>/s/ Jeffrey
Thompson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Jeffrey Thompson&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>President&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>SELLING HOLDERS:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>BRAINS RIDING IN TANKS, LLC</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By:&nbsp;<U>/s/ Chad
Kapper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Chad Kapper&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>CEO&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Address: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">E-Mail: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>/s/ Tyler
Brennan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Tyler Brennan</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Address: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">E-Mail: <U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>/s/ Andrew
Camden&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Andrew Camden</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Address: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">E-Mail: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>COMPANY:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>ROTOR RIOT, LLC</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By:&nbsp;<U>/s/ Chad
Kapper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Chad Kapper&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>CEO&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


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<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>rcat0129form8kexh10_3.htm
<DESCRIPTION>EXHIBIT 10.3
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<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.3</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><B><U>AMENDMENT NO. 2 </U></B></P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><B><U>TO AGREEMENT OF MERGER</U></B></P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>THIS AMENDMENT NO. 2
TO AGREEMENT OF MERGER</B> (this &ldquo;<U>Second Amendment</U>&rdquo;) is made as of January 22, 2020, by and among Red Cat Holdings,
Inc. f/k/a TimefireVR, Inc., a Nevada corporation (the &ldquo;<U>Purchaser</U>&rdquo;), Rotor Riot Acquisition Corp., an Ohio corporation
and wholly owned subsidiary of the Purchaser (&ldquo;<U>Ohio Sub</U>&rdquo;), Rotor Riot, LLC, an Ohio limited liability company
(&ldquo;<U>Company</U>&rdquo;), and the selling holder signatories hereto (the &ldquo;<U>Selling Holders</U>&rdquo;), and joined
in by Rotor Riot Acquisition Corp., a Delaware corporation and wholly owned subsidiary of the Purchaser (&ldquo;<U>Delaware Sub</U>&rdquo;).
Each of the Purchaser, the Ohio Sub, the Company, the Selling Holders and the Delaware Sub are referred to herein as a &ldquo;<U>Party</U>&rdquo;
and collectively as the &ldquo;<U>Parties</U>&rdquo;.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B><U>W I T N E S S E T H</U></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>,
the Purchaser, the Ohio Sub, the Company, and the Selling Holders entered into an Agreement of Merger, dated December 31, 2019
(the &ldquo;<U>Agreement</U>&rdquo;), pursuant to which it was anticipated that Ohio Sub would merge with and into the Company
(the &ldquo;<U>Merger</U>&rdquo;) on or before January 14, 2020, with the Company continuing as the Surviving Company and a wholly-owned
subsidiary of the Purchaser; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS,
</B>on January 14, 2020, the Purchaser, the Ohio Sub, the Company, and the Selling Holders entered into Amendment No. 1 to Agreement
of Merger (the &ldquo;<U>First Amendment</U>&rdquo;), pursuant to which the termination date for the Merger was extended to January
17, 2020; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>,
the Closing of the Merger has not yet occurred; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS,</B>
the Purchaser, the Ohio Sub, the Company, and the Selling Holders, and joined in by the Delaware Sub, wish to further amend the
Agreement, as previously amended by the First Amendment, on the terms set forth herein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE</B>,
in consideration of the mutual promises herein contained and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereby agree to amend the Agreement as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>1.&#9;<U>Definitions;
References; Continuation of Agreement</U>.</B> Unless otherwise specified herein, each term used herein that is defined in the
Agreement shall have the meaning assigned to such term in the Agreement. Each reference to &ldquo;hereof,&rdquo; &ldquo;hereto,&rdquo;
&ldquo;hereunder,&rdquo; &ldquo;herein&rdquo; and &ldquo;hereby&rdquo; and each other similar reference, and each reference to
&ldquo;this Agreement&rdquo; and each other similar reference, contained in the Agreement shall from and after the date hereof
refer to the Agreement, as previously amended by the First Amendment, and as further amended hereby. Except as previously amended
by the First Amendment, and as further amended hereby, all terms and provisions of the Agreement shall continue unmodified and
remain in full force and effect.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><B>2.&#9;<U>Replacement
of Acquisition Subsidiary</U>.</B> The Parties hereby agree that the Ohio Sub shall be replaced by the Delaware Sub as the acquisition
subsidiary to be used in connection with the Merger. All references to &ldquo;<U>Sub</U>&rdquo; in the Agreement, as previously
amended by the First Amendment, and as further amendment hereby, shall hereafter refer to the Delaware Sub.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><B>3. <U>Definition
of Delaware Law</U>.</B> For the purposes of the Agreement, as previously amended by the First Amendment, and as further amended
hereby, &ldquo;<U>Delaware Law</U>&rdquo; means the Delaware General Corporation Law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><B>4. <U>Amendments</U>.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">4.1 The
Parties hereby agree that Section 2.1 of the Agreement shall be deleted and replaced in its entirety by the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;Section
2.1 <U>The Merger</U>. At the Effective Time, on the terms and subject to the conditions set forth in this Agreement, the Certificate
of Merger to be filed in the State of Delaware, in substantially the form attached hereto as <U>Exhibit B</U> (the &ldquo;<U>Delaware
Certificate of Merger</U>&rdquo;), and the applicable provisions of Delaware Law, the Certificate of Merger to be filed in the
State of Ohio, in substantially the form attached hereto as <U>Exhibit C</U> (the &ldquo;<U>Ohio Certificate of Merger</U>&rdquo;),
and the applicable provisions of Ohio Law, shall merge with and into the Company, the separate corporate existence of Sub shall
cease and the Company shall continue as the surviving company and shall become a wholly owned subsidiary of Purchaser. The Company,
as the surviving company after the Merger, is hereinafter sometimes referred to herein as the &ldquo;<U>Surviving Company</U>.&rdquo;&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">4.2 The
Parties hereby agree that Section 2.4 (b) and (c) of the Agreement shall be deleted and replaced in its entirety by the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;(b)&#9;a
Membership Interest Assignment from each of the Selling Holders, substantially in the form attached hereto as <U>Exhibit D</U>
(the &ldquo;<U>Assignment</U>&rdquo;), duly executed by such Selling Holder;&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;(c)&#9;an
agreement (the &ldquo;<U>Make Whole Agreement</U>&rdquo;) pursuant to which the Purchaser will agree that, in connection with the
Merger, the Purchaser will agree to pay the obligations comprising the Payables, substantially in the form attached hereto as <U>Exhibit
E</U>, duly executed on behalf of the Company, BRIT and CK;&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">4.3 The
Parties hereby agree that Section 2.6 of the Agreement shall be deleted and replaced in its entirety by the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;Section
2.6 <U>Effective Time</U>. At the Closing, Sub and the Company shall cause the Delaware Certificate of Merger to be filed with
the Secretary of State of the State of Delaware, in accordance with the relevant provisions of Delaware Law, and the Ohio Certificate
of Merger to be filed with the Secretary of State of the State of Ohio, in accordance with the relevant provisions of Ohio Law
(the latest to occur of the time of acceptance of the Delaware Certificate of Merger by the Secretary of State of the State of
Delaware and the time of acceptance of the Ohio Certificate of Merger by the Secretary of State of the State of Ohio being referred
to herein as the &ldquo;<U>Effective Time</U>&rdquo;)).&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">4.4 The
Parties hereby agree that Section 2.7 of the Agreement shall be deleted and replaced in its entirety by the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;Section
2.7 <U>Effect of the Merger</U>. At the Effective Time, the effect of the Merger shall be as provided in this Agreement, the Delaware
Certificate of Merger and the applicable provisions of Delaware Law, and the Ohio Certificate of Merger and the applicable provisions
of Ohio Law. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all the property, rights,
privileges, powers and franchises of the Company and Sub shall vest in the Surviving Company, and all debts, liabilities and duties
of the Company and Sub shall become debts, liabilities and duties of the Surviving Company.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">4.5 The
Parties hereby agree that Section 2.14 of the Agreement shall be deleted and replaced in its entirety by the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;Section
2.14&#9;<U>Termination for Failure to Close</U>. This Agreement shall automatically terminate if the Closing shall not have occurred
prior to 11:59 p.m. Eastern time on January 24, 2020, as such date may be extended by mutual consent of the Parties. In the event
of termination of this Agreement pursuant to this Section 2.14, this Agreement shall forthwith become void and there shall be no
liability on the part of any Party; provided, however, that Section 8.7 shall survive such termination.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">4.6 The
Parties hereby agree that Section 5.1 of the Agreement shall be deleted and replaced in its entirety by the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;Section
5.1 <U>Organization</U>. Purchaser is a corporation duly formed and validly existing and in good standing under the laws of the
State of Nevada with full power and authority to conduct its business as it is presently being conducted, to own or lease, as applicable,
and operate its assets and properties. Purchaser is duly qualified or licensed to do business as a foreign entity in each state
of the United States in which it is required to be so qualified or licensed, except as would not result in a material Liability
to Purchaser. Sub is a corporation duly formed and validly existing and in good standing under the laws of the State of Delaware.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>5. <U>Miscellaneous</U>.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">5.1 Except
as specifically amended or modified as set forth herein, all other terms of the Agreement, as previously amended by the First Amendment,
are ratified and confirmed and remain in full force and effect, to the extent they are in full force and effect as of the date
of this Second Amendment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">5.2 This
Second Amendment 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.&nbsp; In the event that any signature is delivered by facsimile
transmission or by e-mail delivery of a &ldquo;.pdf&rdquo; format data file, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or &ldquo;.pdf&rdquo;
signature page were an original thereof.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">5.3 This
Agreement shall be construed, interpreted and the rights of the Parties determined in accordance with the laws of the State of
Ohio (without reference to any choice of law rules that would require the application of the laws of any other jurisdiction).</P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in">(Signature page
to follow)</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS
WHEREOF,</B> the parties hereto have caused this Amendment to be duly executed on the date first above written.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>PURCHASER:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>RED CAT HOLDINGS, INC.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>a Nevada corporation</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By:&nbsp;<U>/s/ Jeffrey
Thompson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Jeffrey Thompson&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>President and CEO&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>OHIO SUB:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>ROTOR RIOT ACQUISITION CORP.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>an Ohio corporation </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By:&nbsp;<U>/s/ Jeffrey
Thompson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Jeffrey Thompson&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>President&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>SELLING HOLDERS:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>BRAINS RIDING IN TANKS, LLC</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>an Ohio limited liability company</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By: <U>/s/ Chad
Kapper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Chad Kapper&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>CEO&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Address: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">E-Mail: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>/s/ Tyler
Brennan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Tyler Brennan</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Address: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">E-Mail: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>/s/ Andrew
Camden&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Andrew Camden</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Address: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><U>&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">E-Mail: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>COMPANY:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>ROTOR RIOT, LLC</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>an Ohio corporation</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By:&nbsp;<U>/s/ Chad
Kapper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Chad Kapper&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>CEO&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>JOINDER BY DELAWARE SUB:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>ROTOR RIOT ACQUISITION CORP. </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>a Delaware corporation</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By:&nbsp;<U>/s/ Jeffrey
Thompson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name: <U>Jeffrey Thompson&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title: <U>President&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


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<DESCRIPTION>EXHIBIT 10.4
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<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.4</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">MAKE WHOLE AGREEMENT</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Make Whole Agreement
(this &ldquo;<U>Agreement</U>&rdquo;) is made and entered into as of January 23, 2020, among Rotor Riot, LLC, an Ohio limited liability
company (&ldquo;<U>Rotor Riot</U>&rdquo;), Brains Riding in Tanks, LLC, an Ohio limited liability company (&ldquo;<U>BRIT</U>&rdquo;)
and Chad Kapper (&ldquo;<U>Kapper</U>&rdquo;; and together with Rotor Riot and BRIT, the &ldquo;<U>Indemnitees</U>&rdquo;), and
Red Cat Holdings, Inc., a Nevada corporation (&ldquo;<U>Red Cat</U>&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, as of the date
hereof, a wholly-owned subsidiary of Red Cat is merging with Rotor Riot and as a consequence thereof Rotor Riot will be a wholly-owned
subsidiary of Red Cat;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, in connection
with said transaction, the Indemnitees want to ensure that all the outstanding debts and obligations of the Indemnitees as of the
date hereof relating to the business and operations of the Company (collectively, the &ldquo;<U>Obligations</U>&rdquo;) will be
timely paid;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, Red Cat is willing
to provide the Indemnitees with such assurances as provided pursuant to the terms of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">NOW THEREFORE, in consideration
of the above premises and the mutual representations, warranties, covenants and agreements hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1. <U>Outstanding
Obligations</U>. The Obligations are set forth on <U>Exhibit A</U> attached hereto, specifying the name and contact information
of each creditor, the terms of payment and the total amounts due and payable to each such creditor. Prior to the date hereof the
Indemnitees have provided Red Cat all documentation relating to the Obligations, including without limitation, all correspondence
relating thereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">2. <U>Assurances</U>.
The Indemnitees agree that the particular Indemnitee obligated to pay each particular Obligation shall continue to make payments
as required pursuant to the respective terms thereof, <I>provided</I>, <I>however</I>, that Red Cat agrees that it shall, in its
discretion, either provide the Indemnitee with the funds to make such payment in a timely fashion or Red Cat shall pay the Obligation
directly on behalf of the Indemnitee when it becomes due and payable. If there is an acceleration of the Obligations, Red Cat shall
negotiate on behalf of the Indemnitees with the creditor thereof.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">No later than five business
days prior to the due date of a particular Obligation, the parties shall discuss how the particular payment is to be paid to the
creditor thereof. The failure of Red Cat to either ensure that the Indemnitee has the funds to make the payment or to make the
payment directly to the creditor shall result in a breach of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">3. <U>Representations
of the Indemnitees</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Indemnitees hereby
jointly and severally represent and warrant to Red Cat the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">(a)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><FONT STYLE="font-size: 12pt">The Obligations represent debts and obligations which relate directly to the business of Rotor
Riot. There are no personal debts of an Indemnitee included in the Obligations. Other than the Obligations, there is no other debt,
liability or obligation (whether direct or indirect, absolute or contingent, accrued or unaccrued, liquidated or unliquidated,
known or unknown or due or to become due) relating directly or indirectly to the business or operations of Rotor Riot.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in">(b) None
of the Indemnitees nor any of its affiliates is party to or threatened with, any litigation, suit, action, investigation, proceeding
or controversy before any court, administrative agency or other governmental authority relating to or affecting Rotor Riot or any
of the Obligations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt; font-weight: normal">4.
 <U>Indemnification</U>. Red Cat shall indemnify and hold harmless each Indemnitee and
its officers, directors, shareholders, employees, trustees, agents, beneficiaries, affiliates, representatives and their successors
and assigns from and against any and all damages, losses, liabilities, taxes and costs and expenses (including, without limitation,
attorneys&rsquo; fees and costs) resulting directly or indirectly from the </FONT><FONT STYLE="font-size: 11.5pt; font-weight: normal">failure
by Red Cat to perform or comply with any agreement, covenant or obligation in this Agreement. </FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">5. <U>Miscellaneous</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a) This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Nevada.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(b) If
any covenant or agreement contained herein, or any part hereof, is held to be invalid, illegal or unenforceable for any reason,
such provision will be deemed modified to the extent necessary to be valid, legal and enforceable and to give effect of the intent
of the parties hereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(c) This
Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof. This Agreement supersedes
all prior agreements between the parties with respect to the subject matter hereof or thereof. There are no representations, warranties,
covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein or in the other
agreements referenced herein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(d) This
Agreement may not be amended or modified except by the express written consent of the parties hereto. Any waiver by the parties
of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach thereof or
of any other provision.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(e) This
Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective successors
and permitted assignees.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(f) The
parties hereto intend that this Agreement shall not benefit or create any right or cause of action in or on behalf of any person
other than the parties hereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(g) The
parties agree that this Agreement shall be deemed to have been jointly and equally drafted by them, and that the provisions of
this Agreement therefore shall not be construed against a party or parties on the ground that such party or parties drafted or
was more responsible for the drafting of any such provision(s). The parties further agree that they have each carefully read the
terms and conditions of this Agreement, that they know and understand the contents and effect of this Agreement and that the legal
effect of this Agreement has been fully explained to its satisfaction by counsel of its own choosing.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(h) The
parties hereto agree to execute and deliver such further documents and instruments and to do such other acts and things any of
them, as the case may be, may reasonably request in order to effectuate the transactions contemplated by this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0.5in">(i) This
Agreement may be executed in counterparts and by facsimile, each of which shall be deemed an original and all of which together
shall constitute one and the same instrument.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: center"><I>Remainder of Page Intentionally Omitted;
Signature Pages to Follow</I></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF, each
of the undersigned has caused this Agreement to be executed by its duly authorized officer or representative as of the date first
above written.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 2.5in">RED CAT HOLDINGS, INC.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 2.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 2.5in"><U>/s/ Jeffrey Thompson</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2.5in">Name: Jeffrey
Thompson</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">Title: Chief Executive
Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">ROTOR RIOT, LLC</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in"><U>/s/ Chad Kapper</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2.5in">Name: Chad Kapper</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">Title: Chief Executive
Officer&#9;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">BRAINS RIDING
IN TANKS, LLC</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in"><U>/s/ Chad Kapper</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">Name:
Chad Kapper</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">Title: Chief Executive
Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in"><U>/s/ Chad Kapper</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: 0.5in">Chad Kapper</P>

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