<SEC-DOCUMENT>0001554795-20-000294.txt : 20201106
<SEC-HEADER>0001554795-20-000294.hdr.sgml : 20201106
<ACCEPTANCE-DATETIME>20201106163030
ACCESSION NUMBER:		0001554795-20-000294
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20201102
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20201106
DATE AS OF CHANGE:		20201106

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:		201294856

	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>rcat1104form8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-size: 10pt">8-K
1 rcat1104form8k.htm&nbsp;CURRENT REPORT ON FORM 8-K</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


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

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">Washington, D.C. 20549</P>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>FORM&nbsp;8-K</B></P>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>THE SECURITIES
EXCHANGE ACT OF 1934</B></P>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 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): November 2, 2020</P>

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

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top; width: 34%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><U>Nevada</U></B><BR>
(State or Other Jurisdiction of Incorporation)</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><U>000-31587</U></B><BR>
(Commission File Number)</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><U>86-0490034</U></B><BR>
(I.R.S. Employer Identification Number)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 2.65in 0 190.1pt; text-align: center"><FONT STYLE="font-size: 11pt">370
Harbour Drive</FONT></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 2.65in 0 190.1pt; text-align: center"><FONT STYLE="font-size: 11pt">Palmas
del Mar</FONT></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 2.65in 0 190.1pt; text-align: center"><FONT STYLE="font-size: 11pt">Humacao,
PR 00791</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt/13.55pt Times New Roman, Times, Serif; margin: 0 0.9pt 0 0; text-align: center"><FONT STYLE="font-size: 11pt">(Address
of principal executive offices) (zip code)</FONT></P>

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

<P STYLE="text-align: center; font: bold 12pt/13.65pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 11pt">(833)
373-3228</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 11pt">(Registrant&rsquo;s
telephone number, including area code)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 11pt">(Former
Name or Former Address, if Changed Since Last Report)</FONT></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-size: 11pt">607
Ponce de Leon Ave, Suite 407 San Juan, PR 00909</FONT></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; text-indent: 27.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0pt">Check the appropriate
box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (<I>see</I>&nbsp;General Instruction A.2. below):</P>

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

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&#9744;
Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&#9744;
Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&#9744;&nbsp;Pre-commencement
communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&#9744;&nbsp;Pre-commencement
communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Securities Registered pursuant to Section 12(b) of the Act:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-left: black 1pt solid; width: 29%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Title of each class</FONT></TD>
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-left: black 1pt solid; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Trading Symbol(s)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; text-align: center; border-top: Black 1pt solid; border-left: Black 1pt solid; width: 53%"><FONT STYLE="font-family: Times New Roman, Times, Serif">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; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">None</FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-top: Black 1pt solid; border-left: Black 1pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</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">Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule&nbsp;405 of the Securities Act of 1933 (&sect;230.405 of this chapter) or Rule&nbsp;12b-2
of the Securities Exchange Act of 1934 (&sect;240.12b-2 of this chapter).</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">Emerging
growth company </FONT><FONT STYLE="font-family: Segoe UI Symbol,sans-serif">&#9744;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 1.5in 0 3in; text-align: right">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">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&nbsp;13(a)&nbsp;of the Exchange Act. </FONT><FONT STYLE="font-family: Segoe UI Symbol,sans-serif">&#9744;</FONT></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Segoe UI Symbol,sans-serif"></FONT></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Segoe UI Symbol,sans-serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 3.3pt 0 0"><FONT STYLE="font-size: 11pt">Item 2.01. Completion
of Acquisition or Disposition of Assets</FONT></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 3.3pt 0 0"><FONT STYLE="font-size: 11pt">Item 3.02 Unregistered
Sales of Equity Securities</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.4pt 0 0"><FONT STYLE="font-size: 11pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">On
November 2, 2020 Red Cat Holdings, Inc. (the &ldquo;Company&rdquo;) completed its previously announced acquisition of Fat Shark
Holdings, Ltd., a Cayman Islands Exempted Company (&ldquo;Fat Shark&rdquo;) from Greg French, its founder. In accordance with
the Agreement, the Company issued 5,227,223 shares of common stock of the Company and paid $250,000 in cash to the seller. Of
the shares, 784,091 shares will be held in escrow for up to 18 months to satisfy any indemnification obligations of the seller
and working capital adjustments.</FONT></P>

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">In
addition, Fat Shark issued a senior note in the amount of One Million Five Hundred Thousand Dollars ($1,500,000) to the seller
based upon an estimated positive working capital adjustment to the note in the amount of $500,000 and the seller cancelled approximately
$950,000 in indebtedness owed by Fat Shark to seller. The note matures on November 1, 2023, subject to partial acceleration and
repayment in certain circumstances including from the sale of certain securities by the Company for cash. The note is subject
to a floating charge under Cayman law on all of the assets of Holdings and its subsidiaries.</FONT></P>

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 11.55pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">The
Company has agreed to register the shares under the Securities Act of 1933, as amended (the &ldquo;Act&rdquo;) under certain circumstances
and are subject to various restrictions on disposition for a period of two (2) years following closing. Seller shall be permitted
to sell an aggregate of up to the greater of twenty (20%) percent or One Million Dollars ($1,000,000) of the shares prior to the
twelve (12) month anniversary of the closing in privately negotiated transactions (provided the purchaser enters into a joinder
agreement and agrees to be subject to the same restrictions on such shares applicable to Seller). Following the first year after
closing, Seller is permitted to dispose of no more than ten (10%) percent of the average daily volume during the prior ten (10)
trading days, as reported. The Agreement also requires Seller to sell a pro-rata amount of Seller&rsquo;s Common Stock (a Drag-Along
Right&rdquo;) and provides for Seller&rsquo;s participation in sales (a &ldquo;Tag-Along Right&rdquo;) in certain sales.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">The
Company deems this to be a material acquisition and will, in compliance with Regulation S-X (17 CFR 210.8-05), file audited and
pro forma financial statements within 71 calendar days of the date of <FONT STYLE="letter-spacing: -0.15pt">this </FONT>Current
Report on Form 8-K.</FONT></P>

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">The
foregoing descriptions of the terms of the Agreement, the Fat Shark note and floating charge are qualified in their entirety by
reference to the full text of the Agreement filed as Exhibit 10.1 to the Company&rsquo;s Current Report on Form 8-K filed October
5, 2020 and Exhibits 10.1 and 10.2 filed herewith.</FONT></P>

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt"></FONT></P>

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 3.3pt 0 0"><FONT STYLE="font-size: 11pt">Item 9.01. Financial
Statements and Exhibits.</FONT></P>

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

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">In
accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K  shall not be deemed to be &quot;filed&quot; for purposes of Section 18 of the Securities Exchange Act of
1934, as amended, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference
into any of the Company's filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended,
whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the
extent expressly set forth by specific reference in such a filing</FONT>.</P>

<P STYLE="font: 12pt/97% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: justify">(d)
                                         Exhibits.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: bottom"><P STYLE="font: 11pt/107% Times New Roman, Times, Serif; margin: 0 0 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt"><B>Exhibit
                                         Number</B></FONT></P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; width: 85%; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: bottom"><P STYLE="font: 11pt/107% Times New Roman, Times, Serif; margin: 0 0 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt"><B>Description</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Exhibit
    10.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Secured
    Promissory Note dated November 2, 2020 of Fat Shark Holdings, Ltd.</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Exhibit
    10.2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Floating
    Charge by Fat Shark Holdings, Ltd in favor of Greg French dated November 2, 2020.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>RED CAT HOLDINGS, INC.</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 42%">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Date: November 6, 2020</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I>/s/ Jeffrey
Thompson</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;Name: Jeffrey Thompson</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;Title: Chief Executive Officer </FONT></TD>
    <TD>&nbsp;</TD></TR>
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<DESCRIPTION>EXHIBIT 10.1
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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-size: 10pt">EX-10.1
2 rcat1104form8kexh10_1.htm&nbsp;SECURED PROMISSORY NOTE DATED NOVEMBER 2, 2020 OF FAT SHARK HOLDINGS, LTD.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: right"><FONT STYLE="font-size: 10pt"><B>Exhibit
10.1</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font-weight: normal">THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &ldquo;</FONT>ACT<FONT STYLE="font-weight: normal">&rdquo;),
OR UNDER THE SECURITIES LAWS OF ANY STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION
THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER,
SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0.25in 0 0; text-align: center; text-indent: 0in"><B>FAT SHARK HOLDINGS,
LTD.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0in"><B>SECURED PROMISSORY
NOTE</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0in"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 50%">US $1,500,000</TD>
    <TD STYLE="text-align: right; width: 50%">November 2, 2020</TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0in"><B></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 24pt 0 0; text-align: justify; text-indent: 0.5in">FOR VALUE RECEIVED,
Fat Shark Holdings, Ltd., a Cayman Islands Exempted Company (the &ldquo;<B>Company</B>&rdquo;), promises to pay to Greg French,
or his permitted assigns (&ldquo;<B>Purchaser</B>&rdquo;), in lawful money of the United States of America the principal sum of
One Million Five Hundred Thousand Dollars ($1,500,000), or such lesser amount as shall equal the outstanding principal amount hereof,
together with interest from the date of this Secured Promissory Note (this &ldquo;<B>Note</B>&rdquo;) on the unpaid principal balance
at a rate equal to three (3%) percent per annum, computed on the basis of the actual number of days elapsed and a year of 365 days.
All unpaid principal, together with any then unpaid and accrued interest and other amounts payable hereunder, shall be due and
payable on the earlier of (i)&nbsp;November 1, 2023 (the &ldquo;<B>Maturity Date</B>&rdquo;), (ii) when specified in Section 1(c)
in connection with a Put Prepayment (as defined below) or (iii)&nbsp;when, upon the acceleration of an Event of Default after giving
effect to any applicable grace periods, such amounts are declared due and payable by Purchaser or made automatically due and payable,
in each case, in accordance with the terms hereof. This Note is the &ldquo;Secured Note&rdquo; issued pursuant to the Share Purchase
Agreement (as defined below). Capitalized terms not defined herein shall have the meaning ascribed to such terms in the Purchase
Agreement.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">THE OBLIGATIONS
DUE UNDER THIS NOTE ARE SECURED BY A FLOATING CHARGE (THE &ldquo;SECURITY AGREEMENT&rdquo;) DATED AS OF THE DATE HEREOF AND EXECUTED
BY THE COMPANY FOR THE BENEFIT OF PURCHASER. ADDITIONAL RIGHTS OF PURCHASER ARE SET FORTH IN THE SECURITY AGREEMENT.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase">Notwithstanding
any contrary provision set forth herein or in the Purchase Agreement, the Secured Party acknowledges that the Note is issued upon
the simultaneous cancellation and in replacement of the indebtedness of Company to PURCHASER pursuant to the Purchase Agreement</FONT>.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">The following is
a statement of the rights of Purchaser and the conditions to which this Note is subject, and to which Purchaser, by the acceptance
of this Note, agrees:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">1.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><B><I>Payments</I></B><I>.</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(a)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Interest. </I>Accrued interest on this Note shall be payable at maturity.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(b)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Voluntary Prepayment</I>. </FONT>The Company may prepay this Note at any time, in whole
or in part, without penalty or premium.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(c)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><I>Purchaser Put Prepayment</I>. At any time following a Qualified Financing or Change of Control, unless Purchaser shall
have previously sold at least One million ($1,000,000) of Stock Consideration, until the Maturity Date, Purchaser, at the sole
election of the Purchaser and only if specified by the Purchaser to Parent in a writing given in accordance with Section 5(c) (the
&ldquo;<B>Put Notice</B>&rdquo;), shall have the right to require the Company to repay, in lawful money of the United States of
America and immediately available funds, all unpaid principal, together with any then unpaid and accrued interest and other amounts
payable under the Note then outstanding (the &ldquo;<B>Put Prepayment</B>&rdquo;) up to the amount that shall equal twenty-five
(25%) percent of the net proceeds of the Qualified Financing. Upon Purchaser&rsquo;s election of a Put Prepayment, the Company
shall repay the Note pursuant to this Section 1(c) within thirty (30) days from the date the Put Notice is given by the Purchaser
to the Parent (as determined pursuant to Section 5(c)). For purposes hereof, a &ldquo;C<FONT STYLE="font-size: 11pt">hange of Control&rdquo;
shall mean the date of the consummation of a merger, reorganization or consolidation of the Parent or any Subsidiary with any other
corporation that has been approved by the stockholders of the Parent or such Subsidiary, by means of any transaction or series
of related transactions, other than a merger or consolidation which would result in the voting securities of Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity) more than fifty (50%) percent of the total voting power represented by the voting securities of such company
or such surviving entity outstanding immediately after such merger or consolidation or a transaction or series of related transactions
undertaken for the purpose of changing the jurisdiction of incorporation of Company; or the date of the consummation of the sale
or disposition of all or substantially all of such Company&rsquo;s assets.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">2.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><B><I>Events of Default</I></B>. The occurrence of any of the following shall constitute an
&ldquo;<B>Event of Default</B>&rdquo; under this Note:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(a)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Failure to Pay</I>. The Company shall fail to pay (i)&nbsp;when due any principal payment
on the due date hereunder or (ii)&nbsp;any interest payment or other payment required under the terms of this on the date due and
such payment shall not have been made within ten (10) business days of the Company&rsquo;s receipt of written notice from Purchaser
of such failure to pay; or</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(b)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Breaches of Covenants. </I>The Company shall fail to observe or perform any other covenant,
obligation, condition or agreement in any material respect contained in this Note or the Security Agreement (other than those specified
in <B>Section&nbsp;2(a)</B>) and such failure shall continue for ten (10) business days after the Company&rsquo;s receipt of written
notice to the Company of such failure; or</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(c)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Representations and Warranties. </I>Any representation, warranty, certificate, or other
statement (financial or otherwise) made or furnished by or on behalf of the Parent to Purchaser in writing in connection with this
Note, including, without limitation, the representations and warranties of the Parent in the Purchase Agreement, or as an inducement
to Purchaser to enter into this Note, shall be false, incorrect, incomplete or misleading in any material respect when made or
furnished; or</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(d)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Voluntary Bankruptcy or Insolvency Proceedings. </I>The Company shall (i)&nbsp;apply for
or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its
property, (ii)&nbsp;admit in writing its inability to pay its debts generally as they mature, (iii)&nbsp;make a general assignment
for the benefit of any of its creditors, (iv)&nbsp;be dissolved or liquidated, (v)&nbsp;commence a voluntary case or other proceeding
seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property
by any official in an involuntary case or other proceeding commenced against it, or (vi)&nbsp;take any action for the purpose of
effecting any of the foregoing; or</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(e)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Involuntary Bankruptcy or Insolvency Proceedings. </I>Proceedings for the appointment of
a receiver, trustee, liquidator or custodian of the Company, or of all or a substantial part of the property thereof, or an involuntary
case or other proceedings seeking liquidation, reorganization or other relief with respect to the Company, if any, or the debts
thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief
entered or such proceeding shall not be dismissed or discharged within thirty (30) days of commencement.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">3.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><B><I>Rights of Purchaser upon Default</I></B>. Upon the occurrence of any Event of Default
(other than an Event of Default described in <B>Sections 2(d) or&nbsp;2(e)</B>) and at any time thereafter during the continuance
of such Event of Default, Purchaser may, by written notice to the Company, declare all outstanding Obligations payable by the Company
hereunder to be immediately due and payable without presentment, demand, protest or any other notice of any kind, all of which
are hereby expressly waived, anything contained herein or in the other Transaction Documents to the contrary notwithstanding. Upon
the occurrence of any Event of Default described in <B>Sections 2(d) or&nbsp;2(e)</B>, immediately and without notice, all outstanding
Obligations payable by the Company hereunder shall automatically become immediately due and payable, without presentment, demand,
protest or any other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the Security
Agreement to the contrary notwithstanding. In addition to the foregoing remedies, upon the occurrence and during the continuance
of any Event of Default, Purchaser may exercise any other right, power or remedy granted to it by the Security Agreement or otherwise
permitted to it by law, either by suit in equity or by action at law, or both.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">4.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><B><I>Definitions</I></B>. As used in this Note, the following capitalized terms have the
following meanings:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&#9;&ldquo;<B>Affiliate</B>&rdquo;
shall mean, with respect to any Person, any other Person directly or indirectly controlling, directly or indirectly controlled
by, or under direct or indirect common control with, such Person or a member of such Person&rsquo;s immediate family; or, if such
Person is a partnership or a limited liability company, any general partner or managing member, as applicable, of such Person or
a Person controlling any such general partner or managing member. For purposes of this definition, &ldquo;control&rdquo; (including
the correlative terms &ldquo;controlling&rdquo;, &ldquo;controlled by&rdquo; and &ldquo;under common control with&rdquo;) shall
mean the power, directly or indirectly, to direct or cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<B>Event
of Default</B>&rdquo; has the meaning given in <B>Section&nbsp;2</B> hereof.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">&ldquo;<B>Obligations</B>&rdquo;
shall mean and include all loans, advances, debts, liabilities and obligations, howsoever arising, owed by the Company to Purchaser
of every kind and description, now existing or hereafter arising under or pursuant to the terms of this Note and the Security Agreement,
including, all interest, fees, charges, expenses, attorneys&rsquo; fees and costs and accountants&rsquo; fees and costs chargeable
to and payable by the Company hereunder and thereunder, in each case, whether direct or indirect, absolute or contingent, due or
to become due, and whether or not arising after the commencement of a proceeding (including post-petition interest) and whether
or not allowed or allowable as a claim in any such proceeding.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">&ldquo;<B>Person</B>&rdquo;
shall mean and include an individual, a partnership, a corporation (including a business trust), a joint stock company, a limited
liability company, an unincorporated association, a joint venture or other entity or a governmental authority.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">&ldquo;<B>Purchase
Agreement</B>&rdquo; shall mean the Stock Purchase Agreement, dated as of the date hereof, by and among the Seller, the Companies,
Buyer and Parent (as defined in the Purchase Agreement).</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">&ldquo;<B>Securities
Act</B>&rdquo; shall mean the Securities Act of 1933, as amended.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">&ldquo;<B>Security
Agreement</B>&rdquo; has the meaning given in the introductory paragraphs to this Note.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">&ldquo;<B>Share
Charge Agreements</B>&rdquo; shall mean the Share Charge Agreements, each dated as of the date hereof, by and among Purchaser,
and the Company concerning the shares of </FONT>Fat Shark Tech. LTD., a Cayman Islands Exempted Company (&ldquo;<B>Trading</B>&rdquo;),
and Fat Shark Technology SEZC, a Cayman Islands Special Economic Zone Company (&ldquo;<B>Tech</B>&rdquo;) wholly owned by the Company<FONT STYLE="font-size: 11pt">.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt">5.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><B><I>Miscellaneous</I></B>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(a)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Successors and Assigns; Transfer of this Note; No Transfers to Bad Actors; Notice of Bad
Actor Status</I>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1.75in"><FONT STYLE="font-size: 11pt">(i)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">Subject to the restrictions on transfer described in this <B>Section&nbsp; 5(a)</B>, the rights
and obligations of the Company and Purchaser shall be binding upon and benefit the successors, assigns, heirs, administrators and
transferees of the parties.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1.75in"><FONT STYLE="font-size: 11pt">(ii)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">With respect to any offer, sale or other disposition of this Note to any Person other than
an Affiliate of Purchaser, Purchaser will give written notice to the Company prior thereto, describing briefly the manner thereof,
together with a written opinion of Purchaser&rsquo;s counsel, or other evidence if reasonably satisfactory to the Company, to the
effect that such offer, sale or other distribution may be effected without registration or qualification (under any federal or
state law then in effect). Upon receiving such written notice and reasonably satisfactory opinion, if so requested, or other evidence,
the Company, as promptly as practicable, shall notify Purchaser that Purchaser may sell or otherwise dispose of this Note, all
in accordance with the terms of the notice delivered to the Company. If a determination has been made pursuant to this <B>Section&nbsp;
5(a)</B> that the opinion of counsel for Purchaser, or other evidence, is not reasonably satisfactory to the Company, the Company
shall so notify Purchaser promptly after such determination has been made. Each Note thus transferred shall bear a legend as to
the applicable restrictions on transferability in order to ensure compliance with the Securities Act, unless in the opinion of
counsel for the Company such legend is not required in order to ensure compliance with the Securities Act. The Company may issue
stop transfer instructions to its transfer agent in connection with such restrictions. Notwithstanding the foregoing, Purchaser
may transfer the Note to an Affiliate of Purchaser. </FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1.75in"><FONT STYLE="font-size: 11pt">(iii)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">Subject to <B>Section&nbsp;5(a)(ii)</B>, transfers of this Note shall be registered upon registration
books maintained for such purpose by or on behalf of the Company as provided in the Purchase Agreement. Prior to presentation of
this Note for registration of transfer, the Company shall treat the registered holder hereof as the owner and holder of this Note
for the purpose of receiving all payments of principal and interest hereon and for all other purposes whatsoever, whether or not
this Note shall be overdue and the Company shall not be affected by notice to the contrary.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1.75in"><FONT STYLE="font-size: 11pt">(iv)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">Neither this Note nor any of the rights, interests or obligations hereunder may be assigned,
by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of Purchaser.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(b)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Waiver and Amendment.</I> Any provision of this Note may be amended, waived or modified
upon the written consent of the Company and Purchaser.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><I>Notices.</I>
All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall in writing
and faxed, mailed, emailed or delivered to each party as follows: (i)&nbsp;if to Purchaser, at Red Cat Holdings, Inc., 370 Harbour
Drive, Palmas del Mar, Humacao, PR 00791 (833) 373-3228, jeff@redcat.red (Att: Jeffrey Thompson CEO) with a copy to Law Office
of Harvey J. Kesner, 500 Fifth Avenue, Suite 938, New York, NY 10036 telephone (646) 678-2543 email (<FONT STYLE="color: Blue">pdox74@gmail.com</FONT>)
or at such other address as Purchaser shall have furnished the Company in writing, or (ii)&nbsp;if to the Company, to ) if to
the Company, to Allan Evans, Chief Executive Officer and Chief Financial Officer at Cayman Enterprise City, 90 North Church Street,
George Town, Grand Cayman, Cayman Islands, P.O Box CEC 30 Grand Cayman, KY1-9012, with a copy to HSM Corporate Services Ltd.,
68 Fort Street, George Town, Grand Cayman KY1-1207, Cayman Islands, Telephone:&nbsp; 345-815-7355 Att: Lisa Shemwell and Red Cat
Holdings, Inc., 370 Harbour Drive, Palmas del Mar, Humacao, PR 00791 (833) 373-3228, jeff@redcat.red (Att: Jeffrey Thompson CEO)with
a copy to Law Office of Harvey J. Kesner, 500 Fifth Avenue, Suite 938, New York, NY 10036 telephone (646) 678-2543 email (<FONT STYLE="color: Blue">pdox74@gmail.com</FONT>),
or at such other address as the Company shall have furnished to Purchaser in writing. All such notices and communications shall
be effective (i)&nbsp;when sent by Federal Express or other overnight service of recognized standing, on the business day following
the deposit with such service; (ii)&nbsp;when mailed by registered or certified mail, first class postage prepaid and addressed
as aforesaid through the United States Postal Service, upon receipt; (iii)&nbsp;when delivered by hand, upon delivery; and (d)&nbsp;when
faxed or emailed, upon receipt.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(c)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Payment.</I> Payment shall be made in lawful tender of the United States.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(d)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Usury.</I> In the event any interest is paid on this Note which is deemed to be in excess
of the then legal maximum rate, then that portion of the interest payment representing an amount in excess of the then legal maximum
rate shall be deemed a payment of principal and applied against the principal of this Note.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(e)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Expenses; Waivers.</I> If action is instituted to collect this Note, the Company promises
to pay all reasonable and documented costs and expenses, including, without limitation, reasonable attorneys&rsquo; fees and costs,
incurred in connection with such action. The Company hereby waives notice of default, presentment or demand for payment, protest
or notice of nonpayment or dishonor and all other notices or demands relative to this instrument.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 1in"><FONT STYLE="font-size: 11pt">(f)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Governing Law; Venue.</I> This Note and all actions arising out of or in connection with
this Note shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the
conflicts of laws principles thereof. Each of Purchaser and the Company irrevocably submit to the exclusive jurisdiction of the
courts of the State of Delaware and the federal courts of the United States located in the City of Wilmington, State of Delaware,
in respect of any dispute arising from the subject matter hereof.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 11pt">(g)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><I>Waiver of Jury Trial. </I>By acceptance of this Note, Purchaser hereby agrees and the Company
hereby agrees to waive their respective rights to a jury trial of any claim or cause of action based upon or arising out of this
Note or the Purchase Agreement. </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0in">(<I>Signature Page
Follows</I>)</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 0.5in">The Company has caused this Note to be
issued as of the date first written above.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 3.25in"><B>&nbsp;</B></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 4in; text-align: justify; text-indent: 0in"><FONT STYLE="text-transform: uppercase"><B>FAT
SHARK HOLDINGS, LTD.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 4in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 4in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 4in; text-align: justify; text-indent: 0in">By:<U>&#9;&#9;&#9;&#9;&#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;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 4in; text-align: justify; text-indent: 0in">Name: Allan Evans</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 4in; text-align: justify; text-indent: 0in">Title: Chief Executive
Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 4in; text-align: justify; text-indent: 0in">Address: Cayman Enterprise
City, 90 North Church Street, George Town, Grand Cayman, Cayman Islands, P.O Box CEC 30 Grand Cayman, KY1-9012</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 3.25in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 0in">&nbsp;</P>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>rcat1104form8kexh10_2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-size: 10pt">EX-10.2
3 rcat1104form8kexh10_2.htm&nbsp;FLOATING CHARGE BY FAT SHARK HOLDINGS, LTD IN FAVOR OF GREG FRENCH DATED NOVEMBER 2, 2020</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: right"><FONT STYLE="font-size: 10pt"><B>Exhibit
10.2</B></FONT></P>

<P STYLE="font: bold 11pt/15pt Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify"></P>

<P STYLE="font: bold 11pt/15pt Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">Dated: as of November 1, 2020</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 1.5pt solid">

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>Floating Charge</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">by</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>Fat Shark Holdings, Ltd.</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">in favour of</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>Mr. Gregory French</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

</DIV>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>HSM Chambers</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">68 Fort Street</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">PO Box 31726</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">George Town</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">Grand Cayman, KY1-1207</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: center">Cayman Islands</P>


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<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>FLOATING CHARGE</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">This <B>Floating Charge </B>is made by:-</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/15pt Calibri, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: #0D0D0D">(1)</FONT></TD><TD STYLE="text-align: justify"><B>Fat Shark Holdings, Ltd.</B> and Exempted Company incorporated and registered in the Cayman
Islands with company number 327385 whose registered office is c/o HSM Corporate Services Ltd., 68 Fort Street, George Town, Grand
Cayman <FONT STYLE="color: #0D0D0D">(hereinafter referred to as the <B>&quot;Company&quot;); </B>and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: #0D0D0D">(2)</FONT></TD><TD><B>Mr. Gregory French </B>of 280 Raleigh Quay, Grand Cayman, Cayman Islands <FONT STYLE="color: #0D0D0D">(the <B>&quot;Lender&quot;).</B></FONT></TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><B>WHEREAS:</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(A)</TD><TD>Pursuant to a Share Purchase Agreement of even date herewith (the <B>&quot;Share Purchase Agreement&quot;) </B>the Company
has issued a secured promissory note (the &ldquo;<B>Promissory Note</B>&rdquo;) to the Lender in the amount of US$1,500,000 (one
million five hundred thousand and 00/100 US dollars) <B>; </B>and</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: #0D0D0D">(B)</FONT></TD><TD><FONT STYLE="color: #0D0D0D">In security of the performances of the Company's obligations under the Promissory Note, the Company
is required to grant this Floating Charge</FONT><FONT STYLE="color: #323232">.</FONT></TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DEFINITIONS
AND INTERPRETATION</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.1.</TD><TD>Words and expressions defined in the Promissory Note or whose definitions are imported into the Promissory Note shall bear
the same meanings in this Floating Charge (including the recitals and schedule hereto) unless otherwise defined herein or unless
the context otherwise requires.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">1.2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
this Floating Charge, the following words and expressions shall be defined as follows:</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 1in; text-indent: -1in"><FONT STYLE="color: #0D0D0D"><B>&quot;Assets&quot;
&#9;</B>means the whole of the property (including uncalled capital) assets and rights which is or may be from time to time comprised
in the property and undertaking of the Company</FONT><FONT STYLE="color: #323232">.</FONT></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 1in; text-indent: -1in"><B>&nbsp;</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 1in; text-indent: -1in"><B>&quot;Business Day&quot;
</B>means a day other than a Saturday or Sunday when banks are open for ordinary business in the United States of America.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 1.5in; text-indent: -1.5in"><B>&quot;Secured
Liabilities&quot; &#9;</B>means all present and future obligations and liabilities of the Company to the Lender under the Promissory
Note and/or this Floating Charge together with:</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 1in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/15pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif; font-size: 10pt">(i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">any refinancing, novation, refunding,
deferral or extension of or increase in any of those obligations or liabilities;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/15pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif; font-size: 10pt">(ii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">any further obligations and liabilities
which may be made by the Lender to the Company under any agreement expressed to be supplemental to the <FONT STYLE="color: #0D0D0D">Promissory
Note</FONT> and all interest, fees, and costs in connection therewith; </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/15pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif; font-size: 10pt">(iii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">all costs, charges and expenses properly
incurred by the Lender in connection with the protection, preservation or enforcement of its respective rights under the <FONT STYLE="color: #0D0D0D">Promissory
Note</FONT> and/or this Floating Charge;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/15pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif; font-size: 10pt">(iv)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">any claim for damages or restitution
in the event of recission of any of those obligations or liabilities or otherwise in connection with the <FONT STYLE="color: #0D0D0D">Promissory
Note</FONT>;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/15pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif; font-size: 10pt">(v)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif; color: #0E0E0E">any claim against the
Company flowing from the recovery by the Company of a payment or discharge in respect of any of those obligations or liabilities
on grounds of preference or otherwise; and </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/12pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 100.2pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/15pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif; font-size: 10pt">(vi)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif; color: #0E0E0E">any amounts which would
be included in any of the foregoing but for any discharge, non-provability, unenforceability or non-allowability of the same in
any insolvency or other proceedings.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/15pt Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.3.</TD><TD>References to:</TD></TR></TABLE>

<P STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.3.1.</TD><TD>statutes, statutory provisions and other legislation shall include all amendments, substitutions, modifications and re-enactments
for the time being in force and shall include any orders, regulations, instruments or other subordinate legislation made under
the relevant legislation;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.3.2.</TD><TD>&quot;including&quot; shall not be construed as limiting the generality of the words preceding it;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.3.3.</TD><TD>any term or phrase defined in the Companies Law of the Cayman Islands (as amended from time to time) shall bear the same meaning
in this Floating Charge;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.3.4.</TD><TD>words importing the singular shall include the plural and vice versa and words denoting any gender shall include all genders;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.3.5.</TD><TD>this &quot;Floating Charge&quot; and to any provisions of it or to any other document referred to in this Floating Charge shall
be construed as references to it in force for the time being as amended, varied, supplemented, restated, substituted or novated
from time to time;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.3.6.</TD><TD>any person are to be construed to include references to a corporation, firm, company, partnership, joint venture, unincorporated
body of persons, individual or any state or agency of a state, whether or not a separate legal entity;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.3.7.</TD><TD>any person are to be construed to include that person's assignees or transferees or successors in title, whether direct or
indirect;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.3.8.</TD><TD>clause headings are for ease of reference only and are not to affect the interpretation of this Floating Charge;</TD></TR></TABLE>

<P STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.4.</TD><TD>The use of bold type shall be ignored in the construction of this Floating Charge.</TD></TR></TABLE>

<P STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">2.</TD><TD><B>PAYMENT OBLIGATION</B></TD></TR></TABLE>

<P STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: #0E0E0E">2.1.</FONT></TD><TD><FONT STYLE="color: #0E0E0E">The Company hereby undertakes to the Lender that it will pay and discharge the Secured Liabilities
to the Lender in accordance with the terms of the </FONT> <FONT STYLE="color: #0D0D0D">Promissory Note </FONT><FONT STYLE="color: #0E0E0E">and
this Floating Charge.</FONT></TD></TR></TABLE>

<P STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">2.2.</TD><TD>All payments under this Floating Charge will be made in immediately available funds in the currency and to the account specified
by the Lender in any demand.</TD></TR></TABLE>

<P STYLE="color: #0E0E0E; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>CHARGING
PROVISION</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">3.1.</TD><TD>The Company grants a floating charge over the Assets to the Lender as a continuing security for the payment or discharge of
the Secured Liabilities.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">4. <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NEGATIVE
PLEDGE AND RANKING OF FLOATING CHARGE</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">4.1.</TD><TD>The Company agrees that it shall be prohibited from granting or creating subsequent to the date of this Floating Charge any
fixed security or any other floating charge over the Assets or any part or parts of them, other than in favour of the Lender or
in favour or another person and with the prior written consent of the Lender provided always that the Lender shall consent to the
granting of a pledge, security, interest, mortgage, debenture, charge, lien or encumbrance in accordance with and subject to the
terms of the Promissory Note .</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">4.2.</TD><TD>Subject to the provisions of Clause 4.1 above, this Floating Charge shall rank in priority for the Secured Liabilities over
any assets of the Company and ahead of any fixed security created by the Company after its execution of this Floating Charge and
in priority to any other floating charge created by the Company after its execution of this Floating Charge.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PROTECTION
OF SECURITY</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">5.1.</TD><TD>The Company agrees that this Floating Charge is and shall be in addition and without prejudice to any other security or rights
which the Lender holds or may hold in respect of all or any of the Secured Liabilities;</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">5.2.</TD><TD>This Floating Charge will be a continuing security for the Secured liabilities notwithstanding any intermediate payment or
settlement of all or any part of the Secured liabilities or any other matter or thing whatsoever.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">5.3.</TD><TD>The Lender shall be entitled, at its own expense, to have a valuation of the Assets or any part or parts of them carried out
from time to time by an independent surveyor or valuer and the Company consents to any such valuation report being prepared and
agrees to provide such access and other assistance as may be reasonably required by the Lender for such purposes.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">5.4.</TD><TD>If for any reason the security constituted hereby ceases to be a continuing security or the Lender receives or is deemed to
have received notice (whether actual or constructive) of any subsequent security affecting all or any part of the Assets and/or
the proceeds of sale thereof, the Lender may open a new account with or continue any existing account with the Company and the
liability of the Company in respect of the Secured Liabilities at the date of such cessation shall remain regardless of any payments
in or out of any such account.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>LIABILITY
TO PERFORM</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">6.1.</TD><TD>In the event of failure of the Company to fulfil any of its obligations under this Floating Charge, the Lender may make such
payments or perform or fulfil any of the obligations of the Company on behalf of the Company. Any amounts expended or costs incurred
by the Lender under this provision (and interest thereon) shall be deemed properly paid, shall be recoverable from the Company
and, until recovered, shall form part of the Secured Liabilities and shall be secured by this Floating Charge.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>ENFORCEMENT</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">7.1.</TD><TD>This Floating Charge shall only be enforceable following written notice from the Lender to the Company pursuant to clause 5(c)
of the Promissory Note.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">7.2.</TD><TD>No purchaser or other person shall be bound or concerned to see or enquire whether the rights of the Lender to exercise any
of the powers hereby conferred has arisen or not or be concerned with notice to the contrary or of the propriety of the exercise
or purported exercise of such powers.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">7.3.</TD><TD>The Lender shall not be liable to account to the Company for any sums or be liable to the Company for any loss or damage arising:</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 1in; text-indent: -0.5in"><FONT STYLE="color: #0D0D0D">7</FONT><FONT STYLE="color: #454545">.</FONT><FONT STYLE="color: #0D0D0D">3.1.
&#9;from any realisation by the Lender of the Assets or any part thereof in the exercise of its rights or powers hereunder; or</FONT></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">7.3.2.</TD><TD>from any act, default or omission of the Lender in relation to the exercise of its powers hereunder; or</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">7.3.3.</TD><TD>from the exercise or non-exercise by the Lender of any power, authority or discretion conferred upon the Lender in relation
to the Assets or any part thereof by or pursuant to this Floating Charge.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">8. <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INDEMNITY</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">8.1.</TD><TD>The Company hereby indemnifies and undertakes to keep indemnified the Lender in respect of all liabilities and expenses incurred
by it or them in good faith in the proper execution or purported execution of any rights, powers or discretions vested in it or
them pursuant hereto as a result of being the possessor of the Assets from whatsoever cause arising, provided that this indemnity
shall not apply to the extent of any loss arising as a result of the gross negligence or wilful default of the Lender.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">8.2.</TD><TD>The Lender shall not be liable for any losses arising in connection with the exercise or purported exercise of any of its rights,
powers and discretions in good faith hereunder.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>AVOIDANCE</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">Where any discharge (whether in respect
of the Secured Liabilities, this Floating Charge, any security therefor or otherwise) is made in whole or in part or any arrangement
is made in whole or in part on the faith of any payment, security or other disposition which may be avoided or repaid on the bankruptcy,
insolvency, liquidation, administration or otherwise without limitation of the Company, the liability of the Company under this
Floating Charge shall continue as if there had been no such discharge or arrangement. The Lender shall be entitled to concede or
compromise any claim that any such payment, security or other disposition is liable to avoidance or repayment.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SUSPENSE
ACCOUNT</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">Until the Secured Liabilities have been
irrevocably and unconditionally paid and discharged in full, the Lender may:</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD>refrain from applying or enforcing any other security, moneys or rights held or received by the Lender in respect of the Secured
Liabilities or apply and enforce the same in such manner and order as the Lender sees fit (whether against such amounts or otherwise)
and the Company shall not be entitled to the benefit of the same; and</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD>hold in suspense account any moneys received from the Company on account of the Secured Liabilities by way of a partial payment,
it being hereby agreed that interest shall be payable on the amount from time to time standing to the credit of such suspense account
at such rate as the Lender from time to time determines and that any amounts of interest so paid shall be added to the principal
amount held in such suspense account and be applied accordingly.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NO
CONTRIBUTION</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">The Company shall not, by virtue of any
enforcement of the security constituted hereby, or any payment made by it hereunder or otherwise, be entitled at any time to exercise,
claim or have the benefit of any right of contribution or similar rights against the Lender, and all rights of contribution or
similar rights against the Lender are hereby expressly waived by the Company.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PRESERVATION
OF RIGHTS</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">Other than as provided in this Floating
Charge, the Lender shall not be obliged before exercising any of the rights, powers, discretions or remedies conferred upon it
by this Floating Charge or by law:</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">(i)</FONT></TD><TD><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">to take any action, including but not limited to the giving of notice
to, or making of any demand upon, the Company or any other person or the obtaining or enforcement of any judgment, decree or order
in any court against the Company or any other person;</FONT></TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">(ii)</FONT></TD><TD><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">to make or file any claim or proof in a winding-up or liquidation
of the Company or any other person;</FONT></TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">(iii)</FONT></TD><TD><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">to enforce or seek to enforce any of its rights, powers, discretions
or remedies under any other security in respect of the Secured Liabilities.</FONT></TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>FURTHER
ASSURANCE</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">The Company hereby irrevocably undertakes
to the Lender that it shall take all steps that the Lender may require to perfect under any appropriate law the security intended
to be constituted by or pursuant to this Floating Charge in respect of all or any part of its property, assets and rights for the
purposes of protecting such security or (upon such security becoming enforceable) facilitating the realisation of such property
and/or the enforcement of the security constituted by or pursuant to, and/or the exercise of any rights of the Lender or the receiver
under, this Floating Charge.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">14. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>REMEDIES
AND WAIVERS</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">14.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No
waiver</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">No failure to exercise and no delay in
exercising on the part of the Lender any right, power, discretion or remedy under this Floating Charge shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power, discretion or remedy preclude any other or further exercise
thereof, or the exercise of any other right, power, discretion or remedy hereunder. The rights and remedies provided in this Floating
Charge are cumulative and not exclusive of any rights or remedies provided by law or otherwise. Any waiver and any consent by the
Lender under this Floating Charge must be made in writing and may be given subject to any conditions thought fit by the Lender.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">14.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No
prejudice</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">This Floating Charge and the security
constituted hereby shall not be affected by any amendment, novation, variation or replacement of the Promissory Note at any time
after the date hereof or any other act, omission or other circumstances which, but for this provision, would or might discharge
this Floating Charge or the security hereby created.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">14.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Application
to Court</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in"><FONT STYLE="color: #0D0D0D">The Company hereby agrees
that the Lender shall have an express and absolute right to apply to court for directions in connection with this Floating Charge
including (without limitation) to seek judicial determination with respect to, inter alia, interpretation of the terms and provisions
of this Floating Charge, the release of any security constituted hereby, the enforcement of any security constituted hereby and
all such other issues in relation to this Floating Charge as the Lender may consider necessitates judicial determination</FONT><FONT STYLE="color: #262626">.
</FONT><FONT STYLE="color: #0D0D0D">The Company further agrees that it shall not and shall not be entitled to apply for any costs
award to be made against the Lender in connection with any such application.</FONT></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">15. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PARTIAL
INVALIDITY</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">If any provision of this Floating Charge
shall to any extent be illegal, invalid or unenforceable, the remainder of this Floating Charge shall not be affected thereby and
each provision of this Floating Charge shall be valid and enforceable to the fullest extent permitted by law and a substitute provision
shall be negotiated by the parties hereto to preserve as nearly as possible the original intent of this Floating Charge. This Floating
Charge shall remain in full force and effect to secure the Secured Liabilities notwithstanding termination of Share Purchase Agreement
..</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">16. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>ATTORNEY</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">The Company hereby irrevocably appoints
the Lender (acting by a duly authorised official) to be its attorney and on its behalf and in its name or otherwise generally to
sign, seal, execute and deliver and otherwise perfect this Floating Charge or any other documents required for the purpose of any
enforcement action by the Lender in connection therewith and which the Company has not done, and generally to use the name of the
Company in the exercise of all or any of the powers hereby conferred on the Lender.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">The Company hereby undertakes that it
shall on request by the Lender ratify and confirm the actions of any such attorney.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">17. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>ASSIGNATION</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">17.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Lender</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">This Floating Charge shall be binding
upon and inure to the benefit of the Company and the Lender, the successors and permitted assignees of the Lender and the successors
of the Company. References to the Lender hereunder include any permitted assignee or transferee of the Lender of its rights and
obligations hereunder. Any successor to or permitted assignee of the Lender shall be entitled to the full benefit, subject to the
burden, hereof.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">17 .2 &#9;<B>Company</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">The Company may not assign
or transfer all or any part of its rights or obligations hereunder</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">18. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>CERTIFICATE</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">Any account or certificate signed by
an officer of the Lender or other signing official authorised by the Lender shall, in the absence of manifest error, ascertain,
specify and constitute the sums for which the Company is liable hereunder and the Company hereto consents to the registration of
this Floating Charge and of any such account or certificate for preservation and execution.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">19. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOTICES</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><FONT STYLE="color: #0D0D0D">19</FONT><FONT STYLE="color: #262626">.</FONT><FONT STYLE="color: #0D0D0D">1
&#9;Any communication to be made under or in connection with this Floating Charge shall be made in writing and, unless otherwise
stated, may be made by fax or letter.</FONT></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">19.2</TD><TD>The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of
each party for any communication or document to be made or delivered under or in connection with this Floating Charge is:</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
the case of the Company:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Allan Evans, CEO</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Cayman Enterprise City,</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1in">90 North Church Street, George Town, Grand Cayman, Cayman
Islands<BR>
P.O. Box CEC 30 Grand Cayman, KY1-9012</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Direct Phone: +1.509.378.4685<BR>
Office Phone: +1.345.232.0727</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><I>Allan@fatshark.com</I></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 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 1in">Peter A. de Vere</P>

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">68 Fort Street, George Town,</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">PO Box 31726, Grand Cayman KY1-1207, Cayman Islands</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Direct Tel: +1 345 815 7360</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Mobile: +1 345 938 7360</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Fax: +1 345 946 8825</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><FONT STYLE="color: windowtext">Email: </FONT><I>pdevere@hsmoffice.com</I></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">And a copy 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 1in">FS Acquisition, Corp.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">370 Harbour Drive</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Humacao, PR 00791</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Tel: (833)373-3228</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">And a copy 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 1in">Law Office of Harvey Kesner</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">500 Fifth Avenue, Ste 938</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">New York, NY 10036</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Email: pdox74@gmail.com</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Tel: 646-678-2543</P>

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

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
the case of the Lender:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Gregory French&#9;&#9;&#9;</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in">90 North Church Street, George Town, Grand Cayman, Cayman
Islands<BR>
P.O. Box CEC 30 Grand Cayman, KY1-9012</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">280 Raleigh Quay, Grand Cayman, Cayman Islands</P>

<P STYLE="color: #0D0D0D; font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in"><FONT STYLE="font-size: 10pt">or any substitute
address, fax number or department or officer as the Company may notify the Lender, if a </FONT><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">change
is made by the Company or the Lender may notify to the Company, if a change is made by the Lender by not less than five Business
Days' notice.</FONT></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">19.3</TD><TD>Any communication or document made or delivered by one person to another under or in connection with this Floating Charge will
only be effective:</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>if by way of fax or email, immediately provided that an affirmative transmission report of such fax or email is obtained; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post
postage prepaid in an envelope addressed to it at that address.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">19.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
notice given under or in connection with this Floating Charge must be in English.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">All other documents provided
under or in connection with this Floating Charge must be:</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
English; or</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>if not in English, and if so required by the Lender, accompanied by a certified English translation and, in this case, the
English translation will prevail unless the document is a constitutional, statutory or other official document.</TD></TR></TABLE>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">20. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>CONSENT
TO REGISTRATION</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">The Company consents to the registration
of this Floating Charge in the Register of Mortgages and Charges of the Company above for preservation.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">21. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>GOVERNING
LAW</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in">This Floating Charge shall be governed
by and construed in all respects in accordance with the laws of the Cayman Islands and the parties hereby submit to the non-exclusive
jurisdiction of the Cayman Islands Courts.</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><B>IN WITNESS WHEREOF </B>the Company has executed
this Floating Charge:</P>

<P STYLE="color: #0D0D0D; font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 10pt 1.5pt 1pt 0">Signed by Allan Evans, Chief Executive Officer</P>
        <P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0">for and on behalf of <B>Fat Shark Holdings, Ltd. </B></P>
        <P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 10pt 1.5pt 1pt">&nbsp;</P>
        <P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 10pt 1.5pt 1pt">&nbsp;</P>
        <P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 10pt 1.5pt 1pt 0">..............................................</P>
        <P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 10pt 1.5pt 1pt">Director</P>
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        <P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 10pt 1.5pt 1pt 0">Witness: _____________________</P>
        <P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 10pt 1.5pt 1pt 0">Name:</P>
        <P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 10pt 1.5pt 1pt 0">Occupation:</P>
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