<SEC-DOCUMENT>0001554795-21-000028.txt : 20210128
<SEC-HEADER>0001554795-21-000028.hdr.sgml : 20210128
<ACCEPTANCE-DATETIME>20210128120420
ACCESSION NUMBER:		0001554795-21-000028
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20210127
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20210128
DATE AS OF CHANGE:		20210128

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:		21563293

	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>rcat0127form8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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     <TITLE></TITLE>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>FORM&nbsp;8-K</B></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Pursuant to Section&nbsp;13 or 15(d)&nbsp;of</B>
t<B>he Securities Exchange Act of 1934</B></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Date of Report (Date of earliest event reported): <U>January 27,
2021</U></P>

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 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; font-size: 12pt"><U>Nevada</U><BR>
(State or other<BR>
jurisdiction of incorporation)</FONT></TD>
    <TD STYLE="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; font-size: 12pt"><U>814-00175</U><BR>
(Commission<BR>
File Number)</FONT></TD>
    <TD STYLE="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; font-size: 12pt"><U>86-0490034</U><BR>
(I.R.S. Employer<BR>
Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR>
    <TD STYLE="vertical-align: top; width: 50%">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">370 Harbour Drive</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Palmas del Mar</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>Humacao, PR </U></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of principal executive offices)</P></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 49%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><U>00791</U><BR>
(Zip Code)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Registrant&rsquo;s telephone number, including area code: <U>(833)
373-3228</U></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.5pt">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: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Segoe UI Symbol,sans-serif">&#9744;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Written
communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</FONT></P>

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

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

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

<P STYLE="font: 12pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Segoe UI Symbol,sans-serif">&#9744;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&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: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Segoe UI Symbol,sans-serif">&#9744;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&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: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">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; width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif">
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29%; border-top: black 1pt solid; border-left: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Title of each class</FONT></TD>
    <TD STYLE="width: 18%; border-top: black 1pt solid; border-left: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Trading Symbol(s)</FONT></TD>
    <TD STYLE="width: 53%; border-top: black 1pt solid; border-left: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">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-size: 12pt">N/A</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-size: 12pt">N/A</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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: 12pt Calibri, Helvetica, Sans-Serif; margin: 0 1.5in 0 0; text-align: right; text-indent: 0.5in"><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: 12pt Times New Roman, Times, Serif; margin: 0 1.5in 0 3in; text-align: right">&nbsp;</P>

<P STYLE="font: 12pt 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.&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Segoe UI Symbol,sans-serif">&#9744;</FONT></P>


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<P STYLE="font: 12pt/107% Segoe UI Symbol,sans-serif; margin: 0 0 8pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Section 3 &ndash; Securities and Trading
Markets</B></P>

<P STYLE="font: 12pt/107% Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Item 3.02 Unregistered Sales
of Equity Securities</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 27, 2021, our Board of Directors
approved the closing of a private offering to accredited investors of Units consisting of convertible notes and warrants to a total
of six (6) investors for total offering proceeds of $500,000. Each Unit consists of: (1) a Convertible Note, and (2) a Warrant
to purchase a number of shares of common stock equal to 135% of the dollar amount of the Note.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Convertible Notes (the &ldquo;Notes&rdquo;)
included in the Units accrue interest at a rate of 12% per annum, with all principal and interest due two (2) years from the date
of issuance. The Notes are convertible to shares of our common stock at a price equal to the lower of: (a) $1.00, if the conversion
occurs prior a Qualified Offering, or (b) a 25% discount of the price per share of common stock offered in the Qualified Offering,
if the conversion occurs simultaneous with the Qualified Offering. A &ldquo;Qualified Offering&rdquo; is defined as an offering
of our common stock resulting in the listing for trading of our common stock on the NYSE American, the Nasdaq Capital Market, the
Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange. The Notes may be converted at any time in
the discretion of the holder prior to a Qualified Offering, but will be automatically converted to common stock simultaneously
with the consummation of a Qualified Offering. Conversions of the Notes are limited such that a holder shall not have the right
to convert any portion of the Note, or receive shares of common stock as payment of interest thereunder, to the extent that after
giving effect to such conversion or receipt of such interest payment, the holder, together with any affiliate thereof, would beneficially
own (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules promulgated
thereunder) in excess of 9.99% of the number of shares of our common stock outstanding immediately after giving effect to such
conversion.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the event of our default under the Notes,
conversion price shall be reduced to the lower of (i) thirty (30) day volume weighted average of the closing price per share of
our common stock, if the conversion herein occurs prior a Qualified Offering, or (ii) 65% of the lowest closing price for our common
stock during the twenty (20) consecutive trading day period immediately preceding the date of the conversion.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Notes also include certain protections
for investors, including the following:</P>

<P STYLE="font: 12pt 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; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">(1)</FONT><FONT STYLE="font-size: 7pt"> </FONT><FONT STYLE="font-size: 12pt">So
long as the Notes are outstanding, upon our issuance of any security, or an amendment to a security that was issued before
the date Note, with any term that the holder reasonably believes is more favorable to the holder of such security or with a
term in favor of the holder of such security that the Holder reasonably believes was not similarly provided to the holder of
the Note, such term, at the holder&rsquo;s option, shall become a part of the Note. </FONT></P>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">(2)</FONT><FONT STYLE="font-size: 7pt"> </FONT><FONT STYLE="font-size: 12pt">If,
at any time while the Notes are outstanding, we issue any common stock or other securities convertible into, exercisable for,
or that otherwise entitle any person or entity the right to acquire, shares of our common stock, at an effective price per
share that is lower than the then Conversion Price for the Note (such lower price, the &ldquo;Base Conversion Price&rdquo;
and such issuances, collectively, a &ldquo;Dilutive Issuance&rdquo;) then the Conversion Price shall be reduced, at the
option of the holder, to a price equal to the Base Conversion Price. If we enter into a variable rate transaction, we shall
be deemed to have issued common stock pursuant to this provision at the lowest possible price per share at which such
securities could be issued in connection with such variable rate transaction. Such adjustment shall be made whenever such
common stock or other securities are issued.</FONT></P>

<P STYLE="font: 12pt/107% Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The two provisions enumerated above do not
apply with regard to issuances to officers, directors, or employees under a stock option plan, to issuances pursuant to convertible
securities outstanding prior to the date of the Notes, or to issuances pursuant to acquisitions or other strategic transactions.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Warrants included in the Units are exercisable
for a period of five (5) years and entitle the holder to purchase shares of our common stock at a price equal to the lower of (i)
$1.50, or (ii) a 25% discount to the price per share of common stock offered in the Qualified Offering. The Warrants may be exercised
by cash payment or, if there is no effective registration statement registering, or no current prospectus available for the resale
of, all of the shares that may be acquired pursuant to the Warrant by the holder, the holder may elect cashless exercise of the
Warrant.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The foregoing is a summary of the material
terms of the Notes and the Warrants, each of which are filed hereto as Exhibits and should be reviewed in their entirety for additional
information. Our offer and sale of the Notes and the Warrants was exempt from registration pursuant to Rule 506(b) under Regulation
D, as the Units were offered exclusively to accredited investors and we engaged in no general solicitation or advertising regarding
the private offering.</P>

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

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

<P STYLE="font: 12pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: justify"><B>Item 9.01 Financial Statements
and Exhibits.</B></P>

<P STYLE="font: 12pt/107% Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>(d) Exhibits.</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 23%; padding-right: 5.4pt; padding-bottom: 8pt; padding-left: 5.4pt; line-height: 107%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt; line-height: 107%"><U>Exhibit No.</U></FONT></TD>
    <TD STYLE="width: 77%; padding-right: 5.4pt; padding-bottom: 8pt; padding-left: 5.4pt; line-height: 107%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt; line-height: 107%"><U>Description</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 8pt; padding-left: 5.4pt; line-height: 107%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt; line-height: 107%">10.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 8pt; padding-left: 5.4pt; line-height: 107%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt; line-height: 107%">Form of Securities Purchase Agreement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 8pt; padding-left: 5.4pt; line-height: 107%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt; line-height: 107%">10.2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 8pt; padding-left: 5.4pt; line-height: 107%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt; line-height: 107%">Form of Convertible Note</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 8pt; padding-left: 5.4pt; line-height: 107%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt; line-height: 107%">10.3</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 8pt; padding-left: 5.4pt; line-height: 107%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt; line-height: 107%">Form of Warrant</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt/107% Times New Roman, Times, Serif; margin: 0 0 0pt">&nbsp;</P>

<P STYLE="font: 12pt/107% Times New Roman, Times, Serif; margin: 0 0 0pt"><B>SIGNATURES</B></P>

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

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

<P STYLE="font: 12pt 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><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">&nbsp;Date: January 27, 2021</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>RED CAT HOLDINGS, INC.</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 44%">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 45%">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><I>/s/
    Jeffrey M. Thompson&nbsp;</I></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-size: 12pt">Name:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">&nbsp;Jeffrey M. 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-size: 12pt">Title:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">&nbsp;President and Chief Executive Officer </FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<DOCUMENT>
<TYPE>EX-10.1
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<FILENAME>rcat0127form8kexh10_1.htm
<DESCRIPTION>EXHIBIT 10.1
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 10.1</B></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>SECURITIES PURCHASE AGREEMENT<BR>
<BR>
</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This <B>SECURITIES PURCHASE
AGREEMENT</B> (this &ldquo;<U>Agreement</U>&rdquo;) dated as of [&nbsp; ], 202[&nbsp; ], by and between <B>Red Cat Holdings, Inc.</B>, a Nevada
corporation, with offices at 1607 Ponce De Leon Avenue, Suite 407, San Juan, Puerto Rico 00909 (the &ldquo;<U>Company</U>&rdquo;),
and <FONT STYLE="font-size: 11pt">[ &nbsp;] (the &ldquo;Buyer&rdquo;) </FONT>with offices at ___________________________.</P>

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

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the &ldquo;<U>SEC</U>&rdquo;)
under the Securities Act of 1933, as amended (the &ldquo;<U>Securities Act</U>&rdquo;); and</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">B.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement,
(i) a 12% convertible note (the &ldquo;<U>Note</U>&rdquo;) of the Company, in the form attached hereto as <U>Exhibit A</U> in the
principal amount of $[ ].00, convertible into shares of common stock, $0.001 par value per share, of the Company (the &ldquo;<U>Common
Stock</U>&rdquo;), and (ii) a Common Stock Purchase Warrant (the &ldquo;<U>Warrant</U>&rdquo;), in the form attached hereto as
<U>Exhibit B</U>, with an exercise price of $1.50 per share, upon the terms and subject to the limitations and conditions set forth
in such Note and Warrant; and</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">C.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, the Note and the Warrant as set forth
immediately below its name on the signature pages hereto.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><B>NOW THEREFORE</B>,
in consideration of the mutual covenants and other agreements contained in this Agreement, the Company and the Buyer hereby agree
as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Purchase and Sale of Note and Warrant.</U></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Purchase of Note and Warrant</U>. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer
and the Buyer agrees to purchase from the Company the Note and Warrant.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 1.5in">b.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Form of Payment</U>. On the Closing Date, (i) the Buyer shall fund the principal amount for the Note and Warrant to be
issued and sold to it at the Closing (as defined below) by wire transfer of immediately available funds to the Company, in accordance
with the Company&rsquo;s written wiring instructions, against delivery of the Note and Warrant, and (ii)&nbsp;the Company shall
deliver such duly executed Note and Warrant on behalf of the Company, to the Buyer, against delivery of the purchase price thereof.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Closing Date</U>. The date and time of the issuance and sale of the Note and Warrant pursuant to this Agreement (the
&ldquo;<U>Closing Date</U>&rdquo;) shall be on or about simultaneous with the execution and delivery of this Agreement, or such
other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the &ldquo;<U>Closing</U>&rdquo;)
shall occur on the Closing Date at such location as may be agreed to by the parties.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin: 0 0 0pt; text-indent: 1.5in">d.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Closing</U>. On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to
sell, and the Buyer agrees to purchase, the Note and Warrant as set forth on each Buyer&rsquo;s signature page hereto. At any closing
hereunder, the Company shall deliver to each Buyer its respective Note and Warrant.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Buyer&rsquo;s Representations and Warranties.</U> The Buyer represents and warrants to the Company that:</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Investment Purpose</U>. As of the date hereof, the Buyer is purchasing the Note and the Warrant, and the shares of Common
Stock issuable upon conversion of the Note pursuant to the terms thereof and exercise of the Warrant pursuant to the terms thereof
(such shares of Common Stock being collectively referred to herein as the &ldquo;<U>Conversion Shares</U>&rdquo; and, collectively
with the Note and Warrant, the &ldquo;<U>Securities</U>&rdquo;) for its own account and not with a present view towards the public
sale or distribution thereof, except pursuant to sales registered or exempted from registration under the Securities Act.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin: 0; text-indent: 1.5in">b.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Accredited Investor Status</U>. The Buyer is, as of the date hereof, and on each date on which it exercises the Warrants
or converts the Note, an &ldquo;accredited investor&rdquo; as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under
the Securities Act.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Reliance on Exemptions</U>. The Buyer understands that the Securities are being offered and sold to it in reliance upon
specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying upon the truth and accuracy of, and the Buyer&rsquo;s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and
the eligibility of the Buyer to acquire the Securities.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">d.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Information</U>. The Buyer and the Buyer&rsquo;s attorney, accountant, purchaser representative and/or tax advisor, if
any (collectively, the &ldquo;<U>Advisors</U>&rdquo;), as the case may be, if any, have been, and for so long as the Note remain
outstanding will continue to be, furnished with all materials relating to the business, finances and operations of the Company
and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer
and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity
to ask questions of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic
information and will not disclose such information unless such information is disclosed to the public prior to or promptly following
such disclosure to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its
advisors or representatives shall modify, amend or affect Buyer&rsquo;s right to rely on the Company&rsquo;s representations and
warranties contained in Section 3 below. The Buyer understands that its investment in the Securities involves a significant degree
of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company's representations and warranties
made herein.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">e.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Governmental Review</U>. The Buyer understands that no United States federal or state agency or any other government
or governmental agency has passed upon or made any recommendation or endorsement of the Securities.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">f.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Transfer or Re-sale</U>. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not
being registered under the Securities Act or any applicable state securities laws, and the Securities may not be transferred unless
(a)&nbsp;the Securities are sold pursuant to an effective registration statement under the Securities Act, (b)&nbsp;the Buyer shall
have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary
for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred
pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c)&nbsp;the Securities are sold
or transferred to an &ldquo;affiliate&rdquo; (as defined in Rule 144 promulgated under the Securities Act (or a successor rule)
(&ldquo;<U>Rule 144</U>&rdquo;)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this
Section 2(f) and who is an Accredited Investor, (d)&nbsp;the Securities are sold pursuant to Rule 144, or&nbsp;the Securities are
sold pursuant to Regulation S under the Securities Act (or a successor rule) (&ldquo;<U>Regulation S</U>&rdquo;), and the Buyer
shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope
customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such
Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is
not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is
made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other
exemption under the Securities Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other
person is under any obligation to register such Securities under the Securities Act or any state securities laws or to comply with
the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein
to the contrary, the Securities may be pledged as collateral in connection with a <U>bona fide</U> margin account or other lending
arrangement.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">g.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Legends</U>. The Buyer understands that the Note and Warrant, and, until such time as the Conversion Shares have been
registered under the Securities Act or may be sold pursuant to Rule 144 without any restriction as to the number of securities
as of a particular date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially
the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):</P>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 1in; text-align: justify"><B>&ldquo;NEITHER THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.&rdquo;</B></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The legend set forth
above shall be removed and the Company shall issue a certificate without such legend to the holder of any shares upon which it
is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an
effective registration statement filed under the Securities Act without any restriction as to the number of securities as of a
particular date that can then be immediately sold, or (b) such holder provides the Company with an opinion of counsel, in form,
substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer
of such Security may be made without registration under the Securities Act, which opinion shall be accepted by the Company so that
the sale or transfer is effected. The Buyer agrees to sell all Securities, including those represented by a certificate(s) from
which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">h.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Residency</U>. The Buyer is a resident of the jurisdiction set forth immediately below the Buyer&rsquo;s name on the
signature pages hereto.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">i.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>No Solicitation</U>. The Buyer is unaware of, is in no way relying on, and did not become aware of the offering of the
Securities through or as a result of, any form of general solicitation or general advertising including, without limitation, any
article, notice, advertisement or other communication published in any newspaper, magazine or similar media or broadcast over television
or radio, in connection with the offering and sale of the Securities and is not subscribing for the Securities and did not become
aware of the offering of the Securities through or as a result of any seminar or meeting to which the Buyer was invited by, or
any solicitation of a subscription by, a person not previously known to the Buyer in connection with investments in securities
generally.</P>

<P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1.5in">j.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Brokerage Fees</U>. The Buyer has taken no action that would give rise to any claim by any person for brokerage commissions,
finders&rsquo; fees or the like relating to this Agreement or the transaction contemplated hereby.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">k.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Buyer&rsquo;s Advisors</U>. The Buyer and its Advisors, as the case may be, have such knowledge and experience in financial,
tax, and business matters, and, in particular, investments in securities, so as to enable it to utilize the information made available
to it in connection with the Notes to evaluate the merits and risks of an investment in the Notes and the Company and to make an
informed investment decision with respect thereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">l. <U>Buyer Liquidity</U>.
The Buyer has adequate means of providing for Buyer&rsquo;s current financial needs and foreseeable contingencies and has no need
for liquidity of its investment in the Securities for an indefinite period of time, and after purchasing the Securities the Buyer
will be able to provide for any foreseeable current needs and possible personal contingencies. The Buyer must bear and acknowledges
the substantial economic risks of the investment in the Securities including the risk of illiquidity and the risk of a complete
loss of this investment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">m. <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"></FONT><U>No
Other Representations or Information</U>. In evaluating the suitability of an investment in the Securities, the Buyer has not
relied upon any representation or information (oral or written) with respect to the Company or its subsidiaries, or otherwise,
other than as stated in this Agreement. No oral or written representations have been made, or oral or written information furnished,
to the Buyer or its Advisors, if any, in connection with the offering of the Notes.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">n.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Authorization; Enforcement</U>. The Buyer has the requisite power and authority to enter into and perform this Agreement
and to purchase the Securities. The execution, delivery and performance of this Agreement and the Securities by the Buyer and the
consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate or
partnership action, and no further consent or authorization of the Buyer or its Board of Directors, stockholders, partners, members,
as the case may be, is required. This Agreement has been duly authorized, executed and delivered by the Buyer and upon execution
of this Agreement by the Company, constitute, or shall constitute when executed and delivered, a valid and binding obligation of
the Buyer enforceable against the Buyer in accordance with the terms hereof and thereof, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors&rsquo; rights and remedies.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">o.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>No Conflicts</U>. &#9;The execution, delivery and performance of this Agreement and the consummation by the Buyer of
the transactions contemplated hereby and thereby or relating hereto do not and will not (i) if the Buyer is not an individual,
result in a violation of the Buyer&rsquo;s charter documents or bylaws or other organizational documents or (ii) conflict with,
or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of any agreement, indenture or instrument or obligation to which
the Buyer is a party or by which its properties or assets are bound, or result in a violation of any law, rule, or regulation,
or any order, judgment or decree of any court or governmental agency applicable to the Buyer or its properties (except for such
conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on the Buyer).
The Buyer is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court
or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement or to purchase
the Securities in accordance with the terms hereof.</P>

<P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1.5in">p.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>SEC Filings</U>.&#9;The Buyer has reviewed, or had an opportunity to review, all of the SEC Filings and &ldquo;Forward
Looking Statements&rdquo; disclaimers contained therein.&nbsp;&nbsp;In addition, the Buyer has reviewed and acknowledges it has
such knowledge, sophistication, and experience in securities matters, and understands the risks related to the Company, including
without limitation to, the &ldquo;Risk Factors&rsquo; in the 10K form filed on April 30, 2020, which the Company has made available
through the EDGAR system.</P>

<P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1.5in">q.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Restricted Securities</U>.&nbsp;&nbsp;&nbsp;Buyer understands that the Securities have not been registered under the
1933 Act and such Buyer will not sell, offer to sell, assign, pledge, hypothecate or otherwise transfer any of the Securities unless
pursuant to an effective registration statement under the 1933 Act, or unless an exemption from registration is available.&nbsp;&nbsp;Notwithstanding
anything to the contrary contained in this Agreement, such Buyer may transfer (with an opinion of counsel satisfactory to the Company
and its counsel) the Securities to its Affiliates (as defined below), provided that each such Affiliate is an &ldquo;accredited
investor&rdquo; under Regulation D and such Affiliate agrees to be bound by the terms and conditions of this Agreement. For the
purposes of this Agreement, an &ldquo;Affiliate&rdquo; of any person or entity means any other person or entity directly or indirectly
controlling, controlled by or under direct or indirect common control with such person or entity.&nbsp;&nbsp;Affiliate includes
each subsidiary of the Company.&nbsp;&nbsp;For purposes of this definition, &ldquo;control&rdquo; means the power to direct the
management and policies of such person or firm, directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Representations and Warranties of the Company</U>. The Company represents and warrants to the Buyer that, except as otherwise
disclosed in the Company&rsquo;s public filings and reports with the SEC:</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Organization and Qualification</U>. The Company and each of its subsidiaries, if any, is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority
(corporate and other) to own, lease, use and operate its properties and to carry on its business, such that the failure to so qualify
would not have a material adverse effect on the assets or business of the Company, its subsidiaries, or the ability of the Company
to perform its obligations hereunder.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">b. <U>Authorization;
Enforcement</U>. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, and
to consummate the transactions contemplated hereby and to issue the Securities, in accordance with the terms hereof and thereof,
(ii) the execution and delivery of this Agreement, by the Company and the consummation by it of the transactions contemplated
hereby (including without limitation, the issuance of the Note and the Warrant and the issuance and reservation for issuance of
the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company&rsquo;s Board of
Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required, (iii)
this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized representative
is the true and official representative with authority to sign this Agreement and the other documents executed in connection herewith
and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Buyer, will constitute,
a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms except as such
enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors&rsquo; rights
and remedies.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Issuance of Shares</U>. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the
Note and the Warrant in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">d.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Acknowledgment of Dilution</U>. The Company understands and acknowledges the potentially dilutive effect to the Common
Stock upon the issuance of the Conversion Shares upon conversion of the Note and exercise of the Warrant. The Company further acknowledges
that its obligation to issue Conversion Shares upon conversion of the Note and exercise of the Warrant in accordance with the respective
terms thereof, is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests
of other shareholders of the Company.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">e.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>No Conflicts</U>. The execution, delivery and performance of this Agreement, the Note and the Warrant by the Company
and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance
and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of
the Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute
a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which
the Company or any of its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations to
which the Company or its securities are subject) applicable to the Company or any of its subsidiaries or by which any property
or asset of the Company or any of its subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations as would not, individually or in the aggregate, have a material adverse effect). All
consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence
have been obtained or effected on or prior to the date hereof.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">f.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Absence of Litigation</U>. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its
subsidiaries, threatened against or affecting the Company or any of its subsidiaries, or their officers or directors in their capacity
as such, that could have a material adverse effect.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">g.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Acknowledgment Regarding Buyer&rsquo; Purchase of Securities</U>. The Company acknowledges and agrees that the Buyer
is acting solely in the capacity of arm&rsquo;s length purchasers with respect to this Agreement and the transactions contemplated
hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer
or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is
not advice or a recommendation and is merely incidental to the Buyer&rsquo; purchase of the Securities. The Company further represents
to the Buyer that the Company&rsquo;s decision to enter into this Agreement has been based solely on the independent evaluation
by the Company and its representatives.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">h.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>No Integrated Offering</U>. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf,
has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the Securities Act of the issuance of the Securities to the Buyer. The issuance of the Securities
to the Buyer will not be integrated with any other issuance of the Company&rsquo;s securities (past, current or future) for purposes
of any shareholder approval provisions applicable to the Company or its securities.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Expenses</U>. Each of the parties hereto shall pay its own fees and expenses (including the fees of any attorneys, accountants,
appraises or others engaged by such party) in connection with this Agreement and the transactions contemplated hereby whether or
not the transactions contemplated hereby are consummated.</P>

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Governing Law</U>. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Nevada
without regard to the principles of conflict of laws. The parties further agree that any action between them shall be heard exclusively
in federal or state court sitting in Clark County, Nevada, and expressly consent to the jurisdiction and venue of the Supreme Court
of Nevada, sitting in Douglas County and the United States District Court for the District of Nevada for the adjudication of any
civil action asserted pursuant to this paragraph. The Company and Buyer waive trial by jury. The prevailing party shall be entitled
to recover from the other party its reasonable attorney's fees and costs. Each party hereby irrevocably waives personal service
of process and consents to process being served in any suit, action or proceeding in connection with this Agreement by mailing
a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address
in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner
permitted by law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">b.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Counterparts; Signatures by Facsimile</U>. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts
have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile or other electronic transmission of a copy of this Agreement bearing the signature of the party
so delivering this Agreement.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Headings</U>. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect
the interpretation of, this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">d.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Severability</U>. In the event that any provision of this Agreement is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision hereof.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">e.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Entire Agreement; Amendments</U>. This Agreement and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest
of the Buyer and by the Company.</P>

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

<P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1.5in">f.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Rescission and Withdrawal Right</U>. Notwithstanding anything to the contrary contained in this Agreement, whenever Buyer
exercises a right, election, demand or option under this Agreement and the Company does not timely perform its related obligations
within the periods therein provided, then Buyer may rescind or withdraw, in its sole discretion from time to time upon written
notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and
rights; <U>provided</U>, <U>however</U>, that, in the case of a rescission of a conversion of a Note or exercise of a Warrant,
the applicable Buyer shall be required to return any shares of Common Stock subject to any such rescinded conversion or exercise
notice concurrently with the return to such Buyer of the aggregate exercise price paid to the Company for such shares and the restoration
of such Buyer&rsquo;s right to acquire such shares pursuant to such Buyer&rsquo;s Warrant (including, issuance of a replacement
warrant certificate evidencing such restored right).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">g.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Notices</U>. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where
such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in">If to the Company,
to:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.75in">Red Cat Holdings,
Inc.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.75in">1607 Ponce
De Leon Avenue</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.75in">Suite 407</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.75in">San Juan, Puerto
Rico 00909</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">Attn: Jeffrey M. Thompson, Chief Executive
Officer<B>&nbsp;</B></P>

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in">With a copy to (which copy should not constitute a notice hereunder):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.75in">The Crone
Law Group P.C.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.75in">500 Fifth Avenue</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.75in">Suite 938</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.75in">New York,
NY 10110</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.75in">Attn:
Mark Crone</P>


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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.75in">If to the Buyer:</P>

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

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

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

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 60pt; text-indent: 0pt; text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;Attn:
[&nbsp; ]</P>

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Each party shall provide
notice to the other party of any change in address.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">h.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Successors and Assigns</U>. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior
written consent of the other.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">i.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Third Party Beneficiaries</U>. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">j.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Survival</U>. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. Each
party agrees to indemnify and hold harmless the other party and all their officers, directors, employees and agents for loss or
damage arising as a result of or related to any breach or alleged breach by such party of any of its representations, warranties
and covenants set forth in this Agreement.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">k.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Further Assurances</U>. Each party shall do and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">l.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>No Strict Construction</U>. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be applied against any party.</P>

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

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


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    <DIV STYLE="break-before: page; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF, the
undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.</P>

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

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

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

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

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

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Jeffrey M. Thompson</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">President and Chief Executive Officer<B>&nbsp;</B></P>

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

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

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

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

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

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

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

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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

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

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

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; vertical-align: middle; text-align: left; width: 50%">Aggregate Principal Amount of Note:  &nbsp;&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: right; width: 50%">$[&nbsp; ].00</TD></TR>
</TABLE>

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


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    <DIV STYLE="break-before: page; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt; letter-spacing: -0.1pt"><B>RED
CAT HOLDINGS, INC.</B></FONT></P>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt"><B>ACCREDITED
INVESTOR CERTIFICATION</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt"><B>For
Individual Investors Only</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt"><B>(all
Individual Investors must <I>CHECK</I> one<I>)</I></B></FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (A) a natural person whose individual net worth, or joint net worth with that person's spouse (not counting the primary residence),
at the time of his purchase exceeds $1,000,000;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (B) a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income
with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income
level in the current year;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (C) a natural person who is a director, executive officer, or general partner of the issuer of the securities being offered
or sold, or any director, executive officer, or general partner of a general partner of the issuer;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (D) a natural person who holds a Series 7, 65 or 82 license in good standing or who holds certain other educational or professional
certifications designated or approved by the SEC;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (E) a natural person who qualifies as a &ldquo;knowledgeable employee,&rdquo; as defined in 17 CFR &sect; 270.3c-5, of a particular
private fund solely with respect to an investment in such private fund;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (F) a bank as defined in Section 3(a)(2) of the Securities Act or a savings and loan association or other institution as defined
in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance Partnership as defined in Section 2(13) of the Securities
Act; an investment Partnership registered under the Investment Partnership Act of 1940 or a business development Partnership as
defined in Section 2(a)(48) of that Act; a Small Business Investment Partnership licensed by the U.S. Small Business Administration
under Section 301 (c) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state, its political
subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees if such
plan has total assets in excess of $5,000,000; or an employee benefit plan within the meaning of the Employee Retirement Income
Security Act of 1974 (&quot;ERISA&quot;), if the investment decision is made by a plan fiduciary, as defined in Section 3 (21)
of ERISA, which fiduciary is either a bank. savings and loan association, insurance Partnership or registered investment adviser,
or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions
made solely by persons that are Accredited Investors (as listed in categories (A)-(G)),</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (G) a private business development partnership as defined in Section 202(a)(22) of the Investment Advisors Act of 1940;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (H) an organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation, Massachusetts or similar business
trust, or a partnership, with total assets in excess of $5,000,000, and which was not formed for the specific purpose of acquiring
the Interests;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (I) a trust, with total assets in excess of $5,000,000 not formed for the specific purpose of acquiring the Interests whose
purchase is directed by a person who has knowledge and experience in financial and business matters that he is capable of evaluating
the merits and risks of an investment in Interests;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (J) any entity registered as an investment adviser pursuant to Section 203 of the Investment Advisers Act of 1940 or applicable
state laws;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (K) any entity qualifying as &ldquo;Rural Business Investment Company&rdquo; as defined in Section 384(A)(14) of the Consolidated
Farm and Rural Development Act;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (L) any entity, including Native American tribes, labor unions, government bodies, funds, limited liability companies, etc.,
owning &ldquo;investments&rdquo; as defined in 17 CFR &sect; 270.2a51-1(b) in excess of $5,000,000 which is not formed for the
purpose of acquiring the Interests offered herein;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (M) any &ldquo;family office&rdquo; or &ldquo;family client&rdquo; each as defined in 17 CFR &sect; 275.202(a)(11)(G)-1: (a)
having at least $5,000,000 in assets under management; (b) which was not formed for the purpose of acquiring the Interest offered
herein; (c) whose prospective investments are managed by &ldquo;a person who has such knowledge and experience in financial and
business matters that such family office is capable of evaluating the merits and risk of the prospective investment.&rdquo;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt 0.25in; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(
) (N) an entity in which all of the equity owners are &quot;accredited investors&quot; (as listed in categories (A)-(L)).</FONT></P>


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    <DIV STYLE="break-before: page; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 11pt MrsEavesSmallCaps; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.1pt"><B>RED CAT HOLDINGS,
INC.</B></FONT></P>

<P STYLE="font: 11pt MrsEavesSmallCaps; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.1pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt MrsEavesSmallCaps; margin: 0; text-align: center"><B>For Non-U.S. Person Investors</B></P>

<P STYLE="font: 11pt MrsEavesSmallCaps; margin: 0; text-align: center"><B>(all Investors who are not a U.S. Person must <I>INITIAL
</I>this section):</B></P>




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

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

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center; width: 20%">Initial _______</TD>
    <TD STYLE="text-align: justify; width: 80%">The investor is not a &ldquo;U.S. Person&rdquo; as defined in Regulation S; and specifically, the investor is not:</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">A.</TD>
    <TD STYLE="text-align: justify">a natural person resident in the United States of America, including its territories and possessions (&ldquo;United States&rdquo;);</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">B.</TD>
    <TD STYLE="text-align: justify">a partnership or corporation organized or incorporated under the laws of the United States;</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">C.</TD>
    <TD STYLE="text-align: justify">an estate of which any executor or administrator is a U.S. Person;</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">D.</TD>
    <TD STYLE="text-align: justify">a trust of which any trustee is a U.S. Person;</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">E.</TD>
    <TD STYLE="text-align: justify">an agency or branch of a foreign entity located in the United States;</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">F.</TD>
    <TD STYLE="text-align: justify">a non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. Person;</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">G.</TD>
    <TD STYLE="text-align: justify">a discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; or</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">H.</TD>
    <TD STYLE="text-align: justify">a partnership or corporation: (i) organized or incorporated under the laws of any foreign jurisdiction; and (ii) formed by a U.S. Person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) under the Securities Act) who are not natural persons, estates or trusts.</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">And, in addition:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">I.</TD>
    <TD STYLE="text-align: justify">the investor was not offered the securities in the United States;</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">J.</TD>
    <TD STYLE="text-align: justify">at the time the buy-order for the securities was originated, the investor was outside the United States; and</TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: middle">
    <TD STYLE="vertical-align: top; text-align: center">K.</TD>
    <TD STYLE="text-align: justify">the investor is purchasing the securities for its own account and not on behalf of any U.S. Person (as defined in Regulation S) and a sale of the securities has not been pre-arranged with a purchaser in the United States.</TD></TR>
</TABLE>

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


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    <DIV STYLE="break-before: page; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 11pt MrsEavesSmallCaps; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.1pt"><B>RED CAT HOLDINGS,
INC.</B></FONT></P>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in"><B>Investor Profile<BR>
<I>(Must be completed by Investor)</I></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in"><B><U>Section A - Personal
Investor Information&#9;</U></B></P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0">Investor Name(s): ____________________________________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 6pt 0 0">Individual executing Profile or Trustee: ___________________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 6pt 0 0">Social Security Numbers / Federal I.D. Number: ____________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0">Date of Birth:   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________________________&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marital Status: _____________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0">Joint Party Date of Birth: &nbsp;&nbsp;&nbsp;&nbsp;________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9; Investment Experience
(Years): ________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0 0 6pt">Annual Income: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;________________________&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquid Net Worth: __________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0 0 6pt">Net Worth*:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;   ________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0 0 6pt">Tax Bracket:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &#9;_____ 15% or below &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;_____ 25% - 27.5% &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;_____ Over 27.5%</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0">Home Street Address: _________________________________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 6pt 0 0">Home City, State &amp; Zip Code: __________________________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 6pt 0 0">Home Phone: _____________________&#9;&nbsp;&nbsp;&nbsp;Home Fax: _____________________&#9;&nbsp;&nbsp;&nbsp;Home
Email: _____________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 6pt 0 0">Employer: __________________________________________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 6pt 0 0">Employer Street Address: ______________________________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 6pt 0 0">Employer City, State &amp; Zip Code: _______________________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 6pt 0 0">Bus. Phone: ____________________&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bus. Fax: ____________________&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bus.
Email: ____________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 6pt 0 0">Type of Business: ____________________________________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 6pt 0 0">Outside Broker/Dealer: ________________________________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in"><B><U>Section B &ndash;
Certificate Delivery Instructions</U></B></P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 3pt 0 0">____ Please deliver Note to the Employer Address listed in Section A.</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 3pt 0 0">____ Please deliver Note to the Home Address listed in Section A.</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 3pt 0 0">____ Please deliver Note to the following address: __________________________________________________________</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 9pt MrsEavesRoman; margin: 0; text-indent: 0in">Please check if you are a FINRA member or affiliate of a FINRA
member firm: ____</P>

<P STYLE="font: 10pt MrsEavesRoman; margin: 0"><BR></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="text-align: left; font: bold 10pt Times New Roman, Times, Serif; vertical-align: middle">_____________________________</TD>
    <TD STYLE="text-align: left; font: 11pt Times New Roman, Times, Serif; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; font: bold 10pt Times New Roman, Times, Serif; vertical-align: middle">_______________________</TD></TR>
<TR>
    <TD STYLE="text-align: left; font: bold 10pt Times New Roman, Times, Serif; vertical-align: middle; width: 50%">Investor Signature</TD>
    <TD STYLE="text-align: left; font: 11pt Times New Roman, Times, Serif; vertical-align: bottom; width: 15%">&nbsp;</TD>
    <TD STYLE="text-align: left; font: bold 10pt Times New Roman, Times, Serif; vertical-align: middle; width: 35%">Date</TD></TR>
</TABLE>
<P STYLE="font: 10pt MrsEavesRoman; margin: 0"><BR></P>

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

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

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 0.25in; text-align: justify"><FONT STYLE="font-size: 9pt"><B>*
For purposes of calculating your net worth in this form, (a) <U>your primary residence shall not be included as an asset</U>;
(b) indebtedness secured by your primary residence, up to the estimated fair market value of your primary residence at the time
of your purchase of the securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding
at the time of your purchase of the securities exceeds the amount outstanding 60 days before such time, other than as a result
of the acquisition of your primary residence, the amount of such excess shall be included as a liability); and (c) indebtedness
that is secured by your primary residence in excess of the estimated fair market value of your primary residence at the time of
your purchase of the securities shall be included as a liability</B></FONT></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 0.25in; text-align: justify"><B><FONT STYLE="font-size: 11pt">ANTI MONEY LAUNDERING REQUIREMENTS</FONT></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>The USA PATRIOT Act</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The USA PATRIOT Act is designed to detect,
deter, and punish terrorists in the United States and abroad. The Act imposes new anti-money laundering requirements on brokerage
firms and financial institutions. Since April 24, 2002 all brokerage firms have been required to have new, comprehensive anti-money
laundering programs.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">To help you understand these efforts,
we want to provide you with some information about money laundering and our steps to implement the USA PATRIOT Act.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>What is money laundering?</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Money laundering is the process of disguising
illegally obtained money so that the funds appear to come from legitimate sources or activities. Money laundering occurs in connection
with a wide variety of crimes, including illegal arms sales, drug trafficking, robbery, fraud, racketeering, and terrorism.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>How big is the problem and why is
it important?</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The use of the U.S. financial system
by criminals to facilitate terrorism or other crimes could well taint our financial markets. According to the U.S. State Department,
one recent estimate puts the amount of worldwide money laundering activity at $1 trillion a year.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>What are we required to do to eliminate
money laundering?</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Under rules required by the USA PATRIOT
Act, our anti-money laundering program must designate a special compliance officer, set up employee training, conduct independent
audits, and establish policies and procedures to detect and report suspicious transaction and ensure compliance with such laws.
As part of our required program, we may ask you to provide various identification documents or other information. We will ask you
for your name, address, date of birth and other information that will allow us to identify you. We will ask to see a non-expired
valid issued government identification, such as your driver&rsquo;s license or other identifying documents. Until you provide the
information or documents we need, we may not be able to effect any transactions for you.</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ANTI-MONEY LAUNDERING INFORMATION FORM</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>The following is required in accordance with
the AML provision of the USA PATRIOT ACT.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><I>(Please fill out and return with requested
documentation.)</I></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left"><B>INVESTOR NAME:&nbsp;&#9;____________________________________________&#9;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left"><B>LEGAL ADDRESS:&nbsp;&#9;_____________________________________________</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt 100pt; text-align: left"><B>_____________________________________________</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>SSN# or TAX ID#</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left"><B>OF INVESTOR:&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_____________________________________________</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left"><B>FOR INVESTORS WHO ARE INDIVIDUALS:
</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left"><B>YEARLY
INCOME:&nbsp;&nbsp;____________________&#9;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AGE: _____________</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left"><B>NET WORTH (excluding value of primary
residence):&nbsp;&nbsp;________________</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left"><B>OCCUPATION:&nbsp;&nbsp;&#9;________________________________________________</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left"><B>ADDRESS OF EMPLOYER:&#9;______________________________________&#9;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt 140pt; text-align: left"><B>&nbsp;&nbsp;</B>______________________________________
</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 18pt; text-align: left"><B>INVESTMENT OBJECTIVE(S):
___________________________________</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B><I><U>IDENTIFICATION &amp; DOCUMENTATION
AND SOURCE OF FUNDS:</U></I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.</TD><TD STYLE="text-align: justify">Please submit a copy of non-expired identification for the authorized signatory(ies) on the investment
documents, showing name, date of birth, address and signature. <B>The address shown on the identification document MUST match the
Investor&rsquo;s address shown on the Investor Signature Page.</B></TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; padding-right: 5.4pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 11pt">Current Driver&rsquo;s License</FONT></TD>
    <TD STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 11pt">or</FONT></TD>
    <TD STYLE="width: 28%; padding-right: 5.4pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 11pt">Valid Passport</FONT></TD>
    <TD STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 11pt">or</FONT></TD>
    <TD STYLE="width: 28%; padding-right: 5.4pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 11pt">Identity Card</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center">(<I>Circle one or more)</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">2.</TD><TD STYLE="text-align: justify">If the Investor is a corporation, limited liability company, trust or other type of entity, please
submit the following requisite documents: (i) Articles of Incorporation, By-Laws, Certificate of Incorporation, Bylaws, Trust or
other similar documents for the type of entity; and (ii) Corporate Resolution or power of attorney or other similar document granting
authority to signatory(ies) and designating that they are permitted to make the proposed investment.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">3.</TD><TD STYLE="text-align: justify">Please advise where the funds were derived from to make the proposed investment:</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24%; padding-right: 5.75pt; padding-left: 5.75pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 11pt">Investments</FONT></TD>
    <TD STYLE="width: 24%; padding-right: 5.75pt; padding-left: 5.75pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 11pt">Savings</FONT></TD>
    <TD STYLE="width: 24%; padding-right: 5.75pt; padding-left: 5.75pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 11pt">Proceeds of Sale</FONT></TD>
    <TD STYLE="width: 28%; padding-right: 5.75pt; padding-left: 5.75pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 11pt">Other ____________</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><I>(Circle one or more)</I></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Signature:&nbsp;&nbsp;____________________________________</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Print Name:&nbsp;&nbsp;___________________________________</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Title (if applicable):&nbsp;&nbsp;_____________________________</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Date:&nbsp;&nbsp;________________________________________&#9;</P>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Common Stock Purchase Warrant</B></P>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>rcat0127form8kexh10_2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: right">Exhibit 10.2</P>

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

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 0 24pt; text-align: justify">NEITHER THIS NOTE NOR THE SECURITIES
INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE &ldquo;<U>SECURITIES ACT</U>&rdquo;), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 24pt; text-align: center"><FONT STYLE="font-variant: small-caps"><B>RED
CAT HOLDINGS, INC.</B></FONT></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 24pt; text-align: center"><FONT STYLE="font-variant: small-caps"><B>Convertible
Note</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 52%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Issuance Date:&nbsp;&nbsp;<B>[&nbsp;&nbsp;&nbsp;&nbsp;]</B></TD>
    <TD STYLE="width: 48%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Original Principal Amount:&#9;<B>$[&nbsp;&nbsp;&nbsp;].00</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><B>FOR VALUE RECEIVED,
RED CAT HOLDINGS, INC.</B>, a Nevada corporation (the &quot;<U>Company</U>&quot;), hereby promises to pay to [ ] or his registered
assign (the &quot;<U>Holder</U>&quot;), the amount set out above as the Original Principal Amount when due, whether upon the Maturity
Date (as defined below), acceleration or otherwise (in each case in accordance with the terms hereof) and to pay interest (&quot;<U>Interest</U>&quot;)
on the outstanding Principal Amount at the Interest Rate (as defined below) from the date set out above as the Issuance Date (the
&quot;<U>Issuance Date</U>&quot;) until the same becomes due and payable, upon the Maturity Date, acceleration or conversion (in
each case in accordance with the terms hereof).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(1)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>GENERAL TERMS</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Payment of Principal</U>. The &quot;<U>Maturity Date</U>&quot; shall be two years from the Issuance Date, unless an Event
of Default (as defined below) shall have occurred and be continuing.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Interest</U>. Interest shall accrue at a rate of 12% (&ldquo;<U>Interest Rate</U>&rdquo;) per annum and shall be applied
to the outstanding Original Principal Amount. Interest hereunder shall be paid on the Maturity Date (or sooner as provided herein)
to the Holder or its assignee in whose name this Note is registered on the records of the Company regarding registration and transfers
of Notes in cash, or in shares of common stock of the Company (the &ldquo;<U>Common Stock</U>&rdquo;) at the Conversion Price (as
defined below).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Security</U>. This Note shall not be secured by any collateral or any assets pledged to the Holder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Prepayment</U>. Notwithstanding anything contained herein to the contrary, the Company shall have the right to prepay
all or any portion of the outstanding Principal Amount and accrued interest thereon, without penalty or premium, upon no less than
ten business days' prior notice to the Holder <I>provided</I> that (i) such amount must be paid in cash on the next business
day following such 10 business day notice period, and (ii) the Holder may still convert this Note pursuant to the terms hereof
at all times until such prepayment amount has been received in full.</P>

<P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1in">(2)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;
</FONT><U>TERMS OF FUTURE FINANCINGS.</U>&nbsp;</P>

<P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;
</FONT>So long as this Note is outstanding, upon any issuance by the Company of any security, or an amendment to a security that
was issued before the date hereof, with any term that the Holder reasonably believes is more favorable to the holder of such security
or with a term in favor of the holder of such security that the Holder reasonably believes was not similarly provided to the Holder,
(I) the Company shall notify the Holder of such additional or more favorable term within one (1) business day&nbsp;of the issuance
and/or amendment (as applicable) of the respective security, and (ii) such term, at Holder's option, shall become a part
of this Note regardless of whether the Company has complied with the notification provision of this section. The types of terms
contained in another security that may be more favorable to the holder of such security include, but are not limited to, terms
addressing conversion discounts, prepayment rate, conversion lookback periods, interest rates, and original issue discounts. Notwithstanding
the foregoing, the issuance of any security which is an Exempt Issuance (as defined below) shall not entitle to the Holder to such
more favorable term.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(3)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>CONVERSION OF NOTE</U>.&#9;This Note shall be convertible into shares of the Company's Common Stock, on the terms and
conditions set forth in this Section 3.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&quot;<U>Conversion Amount</U>&quot; means the portion of the Original Principal Amount and interest to be converted.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(ii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&quot;<U>Conversion Price</U>&quot; shall be the lower of (a) $1.00, if the conversion herein occurs prior a Qualified Offering,
or (b) a 25% discount of the price per share of Common Stock offered in the Qualified Offering, if the conversion herein occurs
simultaneous with the Qualified Offering.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(iii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Exempt Issuance</U>&rdquo; shall mean the issuance of (a) shares of Common Stock or options to employees, officers
or directors of the Company pursuant to any stock or option plan duly adopted for such purpose, (b) securities upon the exercise
or exchange of or conversion of any Shares issued hereunder and/or other securities exercisable or exchangeable for or convertible
into shares of Common Stock issued and outstanding on the date of this Agreement, unless an amendment thereto effects or changes
the conversion price thereof or provides the holder thereof with a term which is more favorable than the term on effect as of the
date hereof (in which case such amendment would not be considered an Exempt Issuance), and (c) securities issued pursuant to acquisitions
or strategic transactions approved by the Board of Directors of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(iv)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>Qualified Offering</U>&rdquo; shall mean an offering of Common Stock (and other securities potentially) resulting
in the listing for trading of the Common Stock on the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq
Global Select Market or the New York Stock Exchange (or any successors to any of the foregoing).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(v)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&ldquo;<U>VWAP</U>&rdquo; means the thirty (30) day volume weighted average of the closing price of a share of Common Stock
as listed or quoted on the market in which the shares of the Company are then traded or listed.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">(a) <U>Optional
Conversion</U>. The Holder may, in its sole discretion, determine to convert all or part of the outstanding Principal Amount due
hereunder and any accrued interest thereon into fully paid and nonassessable shares of Common Stock at the Conversion Price. The
number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this Section 3(a) shall be equal
to the quotient of dividing the Conversion Amount by the Conversion Price. The Company shall not issue any fraction of a share
of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the
Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer
agent fees, legal fees, costs and any other fees or costs that may be incurred or charged in connection with the issuance of shares
of the Company's Common Stock to the Holder arising out of or relating to the conversion of this Note; provided, however,
that the Holder shall pay any transfer taxes.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;
</FONT><U>Mandatory Conversion</U>. Simultaneous with the consummation of a Qualified Offering, the outstanding Principal Amount
due hereunder and all accrued interest hereon shall automatically be converted into fully paid and nonassessable shares of Common
Stock at the Conversion Price. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant
to this Section 3(b) shall be equal to the quotient of dividing the Conversion Amount by the Conversion Price. The Company shall
not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction
of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share. The
Company shall pay any and all transfer agent fees, legal fees, costs and any other fees or costs that may be incurred or charged
in connection with the issuance of shares of the Company's Common Stock to the Holder arising out of or relating to the conversion
of this Note; provided, however, that the Holder shall pay any transfer taxes.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Conversion Notice</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>To convert any portion of this Note into shares of Common Stock on any date (a &quot;<U>Conversion Date</U>&quot;) pursuant
to Section 3(a), the Holder shall (A) transmit by email, facsimile (or otherwise deliver), for receipt on or prior to 5:30 p.m.,
Pacific Time, on such date, a copy of an executed notice of conversion in the form attached hereto as <U>Exhibit A</U> (the &quot;<U>Conversion
Notice</U>&quot;) to the Company. On or before the tenth business day following the date of receipt of a Conversion Notice (the
&quot;<U>Share Delivery Date</U>&quot;), the Company shall (A) if legends are not required to be placed on certificates of Common
Stock pursuant to the then existing provisions of Rule 144 of the Securities Act of 1933 (&ldquo;<U>Rule 144</U>&rdquo;) and provided
that the transfer agent for the Company is participating in the Depository Trust Company's (&quot;<U>DTC</U>&quot;) Fast Automated
Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the
Holder's or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system or (B) if a restrictive
legend is required to be placed on the certificates of Common Stock, issue and deliver to the address as specified in the Conversion
Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which
the Holder shall be entitled, with a restrictive legend imposed thereon.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(ii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Book-Entry</U>. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A)
the full Conversion Amount represented by this Note is being converted at the option of the Holder or (B) the Holder has provided
the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Note
upon physical surrender of this Note. The Holder and the Company shall maintain records showing the Principal and Interest converted
and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as
not to require physical surrender of this Note upon conversion.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;
</FONT><U>Limitations on Conversions or Trading</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Beneficial Ownership</U>. The Company shall not effect any conversions of this Note and the Holder shall not have the
right to convert any portion of this Note or receive shares of Common Stock as payment of interest hereunder to the extent that
after giving effect to such conversion or receipt of such interest payment, the Holder, together with any affiliate thereof, would
beneficially own (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules
promulgated thereunder) in excess of 9.99% of the number of shares of Common Stock outstanding immediately after giving effect
to such conversion or receipt of shares as payment of interest. Since the Holder will not be obligated to report to the Company
the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result
in the issuance of shares of Common Stock in excess of 9.99% of the then outstanding shares of Common Stock without regard to any
other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation
to determine whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent
that the Holder determines that the limitation contained in this Section applies, the determination of which portion of the principal
amount of this Note is convertible shall be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion
Notice for a principal amount of this Note that, without regard to any other shares that the Holder or its affiliates may beneficially
own, would result in the issuance in excess of the permitted amount hereunder, the Company shall notify the Holder of this fact
and shall honor the conversion for the maximum principal amount permitted to be converted on such Conversion Date in accordance
with Section 3(a) and, any principal amount tendered for conversion in excess of the permitted amount hereunder shall remain outstanding
under this Note. The provisions of this Section may be waived by Holder upon written notification to the Company.</P>

<P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1.5in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp; </FONT><U>Dilutive
Issuance</U>. If the Company, at any time while this Note is outstanding, issues, sells or grants (or has issued, sold or
granted as of the issue date, as the case may be) any option to purchase, or sells or grants any right to reprice, or
otherwise disposes of, or issues (or has sold or issued, as the case may be, or announces any sale, grant of any option to
purchase or other disposition), any&nbsp;Common Stock or other securities convertible into, exercisable
for,&nbsp;or&nbsp;that otherwise&nbsp;entitle&nbsp;any&nbsp;person&nbsp;or entity the right to&nbsp;acquire, shares of Common
Stock,
in&nbsp;each&nbsp;or&nbsp;any&nbsp;case&nbsp;at&nbsp;an&nbsp;effective&nbsp;price&nbsp;per&nbsp;share&nbsp;that&nbsp;is&nbsp;lower
than the then Conversion Price (such lower price, the &ldquo;<U>Base Conversion Price</U>&rdquo; and such issuances,
collectively, a &ldquo;<U>Dilutive Issuance</U>&rdquo;) (it being agreed that if the holder of the Common Stock or other
securities so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating
conversion, or&nbsp;exchange prices or otherwise, due to warrants, options or rights per share which are
issued&nbsp;in&nbsp;connection&nbsp;with&nbsp;such&nbsp;issuance, be entitled to receive shares of Common Stock at an
effective price per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less
than the Conversion Price on such date of the Dilutive Issuance), then the Conversion Price shall be reduced, at the option
of the Holder, to a price equal to the Base Conversion Price. If the Company enters into a variable rate transaction the
Company shall be deemed to have issued Common&nbsp;Stock&nbsp;pursuant to this provision at the lowest possible price per
share at which such securities could be issued in connection with such variable rate transaction. Such adjustment shall be
made whenever such Common Stock or other securities are issued. Notwithstanding the foregoing, no adjustment will be made
under this Section 3(e) in respect of an Exempt Issuance. In the event of an issuance of securities involving multiple
tranches or closings, any adjustment pursuant to this Section 3(e) shall be calculated as if all such securities were issued
at the initial&nbsp;closing.</P>

<P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1.5in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;
</FONT><U>Other Provisions</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The Company shall at all times reserve and keep available out of its authorized Common Stock the full number of shares of
Common Stock issuable upon conversion of all outstanding amounts under this Note.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(ii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>All calculations under this Section 3 shall be rounded off to the nearest $0.001.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(iii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Nothing herein shall limit a Holder's right to pursue actual damages or declare an Event of Default pursuant to Section
2 herein for the Company's failure to deliver certificates representing shares of Common Stock upon conversion within the period
specified herein and such Holder shall have the right to pursue all remedies available to it at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief, in each case without the need to post a bond or provide
other security. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other
Section hereof or under applicable law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(4)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>EVENTS OF DEFAULT. </U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>An &ldquo;<U>Event of Default</U>&rdquo;, wherever used herein, means any one of the following events (whatever the reason
and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of
any court, or any order, rule or regulation of any administrative or governmental body):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The Company's failure to pay to the Holder any amount of the then outstanding Original Principal Amount or Interest when
and as due under this Note;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(ii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary
of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the
Company or any subsidiary of the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect
relating to the Company or any subsidiary of the Company or there is commenced against the Company or any subsidiary of the Company
any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 61 business days; or the Company
or any subsidiary of the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such
case or proceeding is entered; or the Company or any subsidiary of the Company suffers any appointment of any custodian, private
or court appointed receiver or the like for it or any substantial part of its property which continues undischarged or unstayed
for a period of 61 business days; or the Company or any subsidiary of the Company makes a general assignment for the benefit of
creditors; or the Company or any subsidiary of the Company shall fail to pay, or shall state that it is unable to pay, or shall
be unable to pay, its debts generally as they become due; or the Company or any subsidiary of the Company shall call a meeting
of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or the Company or any subsidiary
of the Company shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the
foregoing; or any corporate or other action is taken by the Company or any subsidiary of the Company for the purpose of effecting
any of the foregoing;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(iii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The Company shall default in any of its obligations under this Note;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(iv)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>That upon any event of default (as defined herein) after the Issue Date, the Conversion Price shall equal the lower of (I)
the VWAP, if the conversion herein occurs prior a Qualified Offering, or (ii) sixty percent (65%) multiplied by the lowest closing
price of the Common Stock during the twenty (20) consecutive trading day period immediately preceding the date of the respective
conversion (the &ldquo;Alternate Conversion Price&rdquo;);</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(v)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The Company (I) fails to issue Conversion Shares to the Holder (or announces or threatens in writing that it will not honor
its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this
Note, (ii) fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate
for the Conversion Shares issuable to the Holder upon conversion of or otherwise pursuant to this Note as and when required by
this Note, (iii) reserve the reserved amount at all times, or (iii) the Company directs its transfer agent not to transfer or delays,
impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate
for the Conversion Shares issuable to the Holder upon conversion of or otherwise pursuant to this Note as and when required by
this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent
from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for
any Conversion Shares issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note
(or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph)
and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall
not be rescinded in writing) for two (2) Trading Days after the Holder shall have delivered a Notice of Conversion. It is an obligation
of the Company to remain current in its obligations to its transfer agent. It shall be an Event of Default of this Note, if a conversion
of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of
the Holder, the Holder advances any funds to the Borrower's transfer agent in order to process a conversion, such advanced
funds shall be paid by the Company to the Holder within forty-eight (48) hours of a demand from the Holder;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(vi)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>&nbsp;The Company shall fail to maintain the listing of the Common Stock on at least one of the Over the Counter Bulletin
Board, the OTCQB Market, any level of the OTC Markets, or any level of the Nasdaq Stock Market or the New York Stock Exchange (including
the NYSE American);</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(vii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>At any time after the Issue Date, the Borrower shall fail to comply with the reporting requirements of the 1934 Act and/or
the Borrower shall cease to be subject to the reporting requirements of the 1934 Act;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(viii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The failure by the Company to maintain any material intellectual property rights, personal, real property or other assets
which are necessary to conduct its business (whether now or in the future);</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(ix)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The restatement of any financial statements filed by the Borrower with the SEC for any date or period from two years prior
to the Issue Date of this Note and until this Note is no longer outstanding, if the result of such restatement would, by comparison
to the unrestated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this
Note or the Purchase Agreement;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(x)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>In the event that the Company proposes to replace its transfer agent and the Company fails to provide, prior to the effective
date of such replacement, a fully executed irrevocable transfer agent letter (including but not limited to a provision to irrevocably
reserve shares of Common Stock in the reserved amount) signed by the successor transfer agent and the Company;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(xi)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>The DTC places a &ldquo;chill&rdquo; (i.e. a restriction placed by DTC on one or more of DTC's services, such as limiting
a DTC participant's ability to make a deposit or withdrawal of the security at DTC) on any of the Borrower's securities;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(xii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>In addition to the Event of Default in this section, the Common Stock is otherwise not eligible for trading through the
DTC's Fast Automated Securities Transfer or Deposit/Withdrawal at Custodian programs; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 2in">(xiii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>If, at any time on or after the date which is six (6) months after the Issue Date, except due to the Holder's actions
or inactions, the Holder is unable to (I) obtain a standard &ldquo;144 legal opinion letter&rdquo; from an attorney reasonably
acceptable to the Holder, the Holder's brokerage firm (and respective clearing firm), and the Borrower's transfer agent
in order to facilitate the Holder's conversion of any portion of the Note into free trading shares of the Borrower's
Common Stock pursuant to Rule 144, and/or (ii) thereupon deposit such shares into the Holder's brokerage account.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT>Upon notice by Holder and during the continuation of any Event of Default specified in this section, this Note shall become
immediately due and payable and the Company shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount
(the &ldquo;Default Amount&rdquo;) equal to the principal amount then outstanding plus accrued interest (including any default
interest) through the date of full repayment multiplied by 130%. Holder may, in its sole discretion, determine to accept payment
part in Common Stock and part in cash. Upon an uncured Event of Default, all amounts payable hereunder shall immediately become
due and payable, all without demand, presentment or notice, all of which hereby are expressly waived by the Company, together with
all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise
all other rights and remedies available at law or in equity, including, without limitation, those set forth herein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(5)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>REISSUANCE OF THIS NOTE</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Assignability.</U> This Note will be binding upon the Company and its successors and will inure to the benefit of the
Holder and its successors and assigns and may be assigned by the Holder with prior written consent of the Company, which consent
shall not be unreasonably withheld.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>Lost, Stolen or Mutilated Note</U>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification
undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this
Note, the Company shall execute and deliver to the Holder a new Note representing the outstanding Principal hereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(6)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;
</FONT><U>APPLICABLE LAW AND VENUE</U>. This Note shall be governed by and interpreted in accordance with the laws of the State
of Nevada without regard to the principles of conflict of laws. The parties further agree that any action between them shall be
heard exclusively in federal or state court sitting in the Douglas County, Nevada, and expressly consent to the jurisdiction and
venue of the Supreme Court of Nevada, sitting in Douglas County for the adjudication of any civil action asserted pursuant to this
paragraph. The Company and the Holder waive trial by jury. Each party hereby irrevocably waives personal service of process and
consents to process being served in any suit, action or proceeding in connection with this Note by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner permitted by law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">(7)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">
</FONT><U>WAIVER</U>. Any waiver by the Holder of a breach of any provision of this Note shall not operate as or be construed to
be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Holder
to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that
party of the right thereafter to insist upon strict adherence to that term or any other term of this Note. Any waiver must be in
writing.</P>

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>[Remainder of Page Intentionally Omitted;
Signature Page Follows]</B></P>

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


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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>,
the Company has caused this Convertible Note to be duly executed by a duly authorized officer as of the date set forth above.</P>

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

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-left: 200pt; margin-top: 0pt; margin-bottom: 0pt"><B>Red Cat Holdings, Inc.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-left: 200pt; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-left: 200pt; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-left: 200pt; margin-top: 0pt; margin-bottom: 0pt">By: _______________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-left: 240pt; margin-top: 0pt; margin-bottom: 0pt">Jeffrey M. M. Thompson</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-left: 240pt; margin-top: 0pt; margin-bottom: 0pt">President and Chief Executive Officer<B>&nbsp;</B></P>

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

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

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD COLSPAN="11" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>EXHIBIT A</B></TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="11" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>NOTICE OF CONVERSION</B></TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="5" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.75in">&nbsp;</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Red Cat Holdings, Inc.</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">1607 Ponce De Leon Avenue</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Suite 407</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">San Juan, Puerto Rico 00909</P>
        <P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0">Attn: Jeffrey M. Thompson, President<B>&nbsp;</B></P></TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="5" STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="11" STYLE="text-align: justify; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0">The undersigned hereby elects to convert [all] [a portion] of the
        $[ ] Convertible Note issued to [ ] on [ ], 202[ ] into shares of Common Stock of Red Cat Holdings, Inc. according to the conditions
        set forth in such Note as of the date written below.</P>
        <P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif; margin: 0">shares of Common Stock (pursuant to a Cashless Exercise in accordance
        with Section 1(b)(ii) of the Warrant) (check here if the undersigned desires to deliver an unspecified number of shares equal to
        the number sufficient to effect a Cashless Exercise [___]).</P></TD>
    <TD COLSPAN="3" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="11" STYLE="text-align: justify; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="11" STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">By accepting this notice of conversion, you are acknowledging that the number of shares to be delivered represents less than 10% (ten percent) of the common stock outstanding.&nbsp;&nbsp;If the number of shares to be delivered represents more than 9.99% of the common stock outstanding, this conversion notice shall immediately automatically extinguish and the Holder must be immediately notified.</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><B>Date of Conversion:</B></TD>
    <TD COLSPAN="3" STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"></TD>
    <TD COLSPAN="7" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"></TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><B>Conversion Amount:</B></TD>
    <TD COLSPAN="3" STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"></TD>
    <TD COLSPAN="7" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"></TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><B>Conversion Price:</B></TD>
    <TD COLSPAN="3" STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"></TD>
    <TD COLSPAN="7" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"></TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><B>Shares
    to be Delivered:</B></TD>
    <TD COLSPAN="3" STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"></TD>
    <TD COLSPAN="7" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"></TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><B>EIN:</B></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="white-space: nowrap; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">By:________________________________&#9;</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Name:</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">Title:</P></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 34%">&nbsp;</TD>
    <TD STYLE="width: 18%">&nbsp;</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 11%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
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    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD></TR>
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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>rcat0127form8kexh10_3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<P STYLE="text-align: right; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>Exhibit 10.3</B></FONT></P>

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

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

<P STYLE="margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>No. ______</B></FONT></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 30pt; margin-bottom: 0pt; text-align: center"><B>RED CAT
HOLDINGS, INC.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 30pt; margin-bottom: 18pt; text-align: center"><B>COMMON STOCK PURCHASE WARRANT</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0.25in; text-align: justify"><B>THE WARRANT REPRESENTED BY THIS
CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &quot;ACT&quot;), AND IS SUBJECT TO RESTRICTIONS
ON TRANSFERABILITY AS SET FORTH IN THIS CERTIFICATE. THIS WARRANT MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN OPINION OF COUNSEL, REASONABLY ACCEPTABLE TO COUNSEL FOR THE
COMPANY, TO THE EFFECT THAT THE PROPOSED SALE, TRANSFER, OR DISPOSITION MAY BE EFFECTUATED WITHOUT REGISTRATION UNDER THE ACT.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0.25in; text-align: center"><B>WARRANT CERTIFICATE</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">THIS WARRANT CERTIFICATE (the &quot;<U>Warrant
Certificate</U>&quot;) certifies that for value received, [ ] <B>(</B>the &quot;<U>Holder</U>&quot;), is the owner of this warrant
(the &quot;<U>Warrant</U>&quot;), which entitles the Holder to purchase at any time on or before the Expiration Date (as defined
below) <U>&#9;</U> [ ] shares (the &quot;<U>Warrant Shares</U>&quot;) of fully paid non-assessable shares of the common stock (the
&quot;Common Stock&quot;) of RED CAT HOLDINGS, INC., a Nevada corporation (the &quot;<U>Company</U>&quot;), at a purchase price
per Warrant Share of One Dollar and Fifty Cents ($1.50) (the &quot;<U>Purchase Price</U>&quot;), in lawful money of the United
States of America by bank or certified check, subject to adjustment as hereinafter provided. This Warrant Certificate is issued
in connection with the closing of a financing transaction with the Holder in accordance with, and as required by, the terms of
that certain Securities Purchase Agreement dated the date hereof by and between the Company and the Holder.</P>

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"> 1. <U>WARRANT; PURCHASE PRICE</U>.</P>

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



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 40pt">Notwithstanding anything
to the contrary in this Agreement, in the event of a Qualified Offering (as defined below), the Purchase Price shall be the lower
of (i) $1.50, or (ii) 25% discount&nbsp;of the price per share of Common Stock offered in the Qualified Offering. A &ldquo;<U>Qualified
Offering</U>&rdquo; shall mean an offering of Common Stock (and other securities potentially) resulting in the listing for trading
of the Common Stock on the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market
or the New York Stock Exchange (or any successors to any of the foregoing).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">2. <U>EXERCISE;
EXPIRATION DATE</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(a) This
Warrant is exercisable, at the option of the Holder, at any time after the date of issuance and on or before the Expiration Date
(as defined below) by delivering to the Company written notice of exercise (the &quot;<U>Exercise Notice</U>&quot;), stating the
number of Warrant Shares to be purchased thereby, accompanied by bank or certified check payable to the order of the Company for
the Warrant Shares being purchased. Within ten (10) business days of the Company's receipt of the Exercise Notice accompanied by
the consideration for the Warrant Shares being purchased, the Company shall instruct its transfer agent to issue and deliver to
the Holder a certificate representing the Warrant Shares being purchased. In the case of exercise for less than all of the Warrant
Shares represented by this Warrant Certificate, the Company shall cancel this Warrant Certificate upon the surrender thereof and
shall execute and deliver a new Warrant Certificate for the balance of such Warrant Shares.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font: 7pt Times New Roman, Times, Serif">
</FONT><U>Expiration</U>. The term &quot;Expiration Date&quot; shall mean 5:00 p.m., Pacific time, on the fifth (5<SUP>th</SUP>)
anniversary of the date set forth in the signature block of this Warrant or if such date in the State of Nevada shall be a holiday
or a day on which banks are authorized to close, then 5:00 p.m., Pacific time, the next following day which in the State of Nevada
is not a holiday or a day on which banks are authorized to close.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(c) <U>Cashless
Exercise</U>. In addition to the provisions of this Section 2(c), if at any time commencing after the Exercise Date, there is no
effective registration statement registering, or no current prospectus available for the resale of all of the Warrant Shares that
may be acquired pursuant to this Warrant by the Holder, then this Warrant may also be exercised at the Holder&rsquo;s election,
in whole or in part, at such time by means of a &ldquo;cashless exercise&rdquo; in which the Holder shall be entitled to receive
a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin: 0 0 0 0.75in">(A) = the VWAP on the Trading Day immediately preceding
the date on which Holder elects to exercise this Warrant by means of a &ldquo;cashless exercise,&rdquo; as set forth in the applicable
Notice of Exercise;</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin: 0 0 0 0.5in; text-indent: 0.25in">(B) = the Exercise Price of this
Warrant, as adjusted hereunder; and</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin: 0 0 0 0.5in; text-indent: 0.25in">(X) = the number of Warrant Shares
that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means
of a cash exercise rather than a cashless exercise.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On the Expiration Date, unless the Holder notifies
the Company otherwise, if there is no effective registration statement registering, or no current prospectus available for, the
resale of the Warrant Shares by the Holder, then this Warrant shall be automatically exercised via cashless exercise pursuant to
this Exhibit A.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;VWAP&rdquo; means, for any date, the
price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a trading
market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the trading
market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m.
(New York City time) to 4:00 p.m. (New York City time)), or other reliable service or (b) in all other cases, the fair market value
of a share of Common Stock as determined by the Board of Directors of the Company.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">3. <FONT STYLE="font: 7pt Times New Roman, Times, Serif">
</FONT><U>RESTRICTIONS ON TRANSFER</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 40pt">(a) <FONT STYLE="font: 7pt Times New Roman, Times, Serif"> &nbsp;
</FONT><U>Restrictions</U>. This Warrant and the Warrant Shares issuable upon exercise of this Warrant may not be assigned, transferred,
sold, or otherwise disposed of unless (i) there is in effect a registration statement under the Act covering such sale, transfer,
or other disposition or (ii) the Holder furnishes to the Company an opinion of counsel, reasonably acceptable to counsel for the
Company, to the effect that the proposed sale, transfer, or other disposition may be effected without registration under the Act,
as well as such other documentation incident to such sale, transfer, or other disposition as the Company's counsel shall reasonably
request.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 40pt">(b) <FONT STYLE="font: 7pt Times New Roman, Times, Serif">
</FONT><U>Legend</U>. Any Warrant Shares issued upon the exercise of this Warrant shall bear substantially the following legend:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 1in 12pt 80pt; text-align: justify; text-indent: 0in">&ldquo;The
shares represented by this certificate have not been registered under the Securities Act of 1933, as amended. The shares have been
acquired for investment and may not be offered, sold or otherwise transferred in the absence of an effective registration statement
and with respect to the shares or an exemption from the registration requirements of said act that is then applicable to the shares,
as to which a prior opinion of counsel acceptable to the issuer or transfer agent may be required.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">4. <FONT STYLE="font: 7pt Times New Roman, Times, Serif">
</FONT><U>RESERVATION OF SHARES</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 40pt">The Company covenants
that it will at all time reserve and keep available out of its authorized Common Stock, solely for the purpose of issuance upon
exercise of this Warrant, such number of shares of Common Stock as shall then be issuable upon the exercise of this Warrant. The
Company covenants that all shares of Common Stock which shall be issuable upon exercise of this Warrant shall be duly and validly
issued and fully paid and non-assessable and free from all taxes, liens, and charges with respect to the issue thereof.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">5. <FONT STYLE="font: 7pt Times New Roman, Times, Serif">
</FONT><U>LOSS OR MUTILATION</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 40pt">If the Holder loses
this Warrant, or if this Warrant is stolen, destroyed or mutilated, the Company shall issue an identical replacement Warrant upon
the Holder's delivery to the Company of a customary agreement to indemnify the Company for any losses resulting from the issuance
of the replacement Warrant.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">6. <FONT STYLE="font: 7pt Times New Roman, Times, Serif">
</FONT><U>PROVISIONS REGARDING ADJUSTMENTS TO STOCK</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(a)&#9;<U>Stock
Dividends, Subdivisions, Combinations and Similar Events</U>.&#9;The number of shares of Common Stock for which this Warrant is
exercisable shall be adjusted to reflect (that is, to provide the same after-conversion percentage ownership as if the following
event had not occurred) any (i) forward and reverse stock splits, stock dividends, and similar events which, while they change
the number of shares outstanding, do not change the relative ownership of the stockholders; and (ii) capital reorganizations, mergers,
and similar events which cause changes in the common stock into which a convertible security may be converted or for which a warrant
or option may be exercised.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(b) <U>Certificate
as to Adjustments</U>. Upon the occurrence of each adjustment or readjustment of the Purchase Price, the Company, at its expense,
shall promptly compute such adjustment or readjustment in accordance with the terms hereof and prepare and furnish to the Holder
a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment
is based. The Company shall, upon the written request at any time of the Holder, furnish or cause to be furnished to such holder
a like certificate setting forth (i) such adjustments and readjustments, (ii) the Purchase Price at the time in effect for this
Warrant and (iii) the number of shares of Common Stock and the amount, if any, or other property which at the time would be received
upon the exercise of this Warrant.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(c) <FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;
</FONT><U>Notices of Record Date</U>. In the event of any fixing by the Company of a record date for the holders of any class of
securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend)
or other distribution, any shares of Common Stock or other securities, or any right to subscribe for, purchase or otherwise acquire,
or any option for the purchase of, any shares of stock of any class or any other securities or property, or to receive any other
right, the Company shall mail to the Holder at least thirty (30) days prior to the date specified therein, a notice specifying
the date on which any such record is to be taken for the purpose of such dividend, distribution or rights, and the amount and character
of such dividend, distribution or right.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(d) <U>Merger, Consolidation,
etc</U>. In case of any capital reorganization or any reclassification of the capital stock of the Company or in case of the consolidation
or merger of the Company with another corporation (or in the case of any sale, transfer, or other disposition to another corporation
of all or substantially all the property, assets, business, and goodwill of the Company), the Holder of this Warrant shall thereafter
be entitled to purchase the kind and amount of shares of capital stock which this Warrant entitled the Holder to purchase immediately
prior to such capital reorganization, reclassification of capital stock, consolidation, merger, sale, transfer, or other disposition;
and in any such case appropriate adjustments shall be made in the application of the provisions of this Section 6 with respect
to rights and interests thereafter of the Holder of this Warrant to the end that the provisions of this Section 6 shall thereafter
be applicable, as near as reasonably may be, in relation to any shares or other property thereafter purchasable upon the exercise
of this Warrant.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(e) <U>Fractional
Shares</U>. No certificate for fractional shares shall be issued upon the exercise of this Warrant, but in lieu thereof the Company
shall purchase any such fractional shares calculated to the nearest cent or round up the fraction to the next whole share.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(f) <U>Rights
of the Holder</U>. The Holder of this Warrant shall not be entitled to any rights of a shareholder of the Company in respect of
any Warrant Shares purchasable upon the exercise hereof until such Warrant Shares have been paid for in full and issued to it.
As soon as practicable after such exercise, the Company shall deliver a certificate or certificates for the number of full shares
of Common Stock issuable upon such exercise, to the person or persons entitled to receive the same.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">7. <FONT STYLE="text-transform: uppercase"><U>RepResentations
and Warranties</U></FONT>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The Holder, by acceptance
of this Warrant, represents and warrants to, and covenants and agrees with, the Company as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(a) The Warrant
is being acquired for the Holder's own account for investment and not with a view toward resale or distribution of any part thereof,
and the Holder has no present intention of selling, granting any participation in, or otherwise distributing the same.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(b) The Holder is
aware that the Warrant is not registered under the Act or any state securities or blue-sky laws and, as a result, substantial restrictions
exist with respect to the transferability of the Warrant and the Warrant Shares to be acquired upon exercise of the Warrant.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(c) The Holder
is an accredited investor as defined in Rule 501(a) of Regulation D under the Act and is a sophisticated investor familiar with
the type of risks inherent in the acquisition of securities such as the Warrant, and its financial position is such that it can
afford to retain the Warrant and the Warrant Shares for an indefinite period of time without realizing any direct or indirect cash
return on this investment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">8. <U>NO IMPAIRMENT.</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The Company shall
not by any action including, without limitation, amending its certificate of incorporation or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder against
impairment. Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any shares of
Common Stock receivable upon the exercise of this Warrant above the amount payable therefore upon such exercise immediately prior
to such increase in par value, (b) take all such actions as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and non assessable shares of Common Stock upon the exercise of this Warrant, and (c) use its best
efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as
may be necessary to enable the Company to perform its obligations under this Warrant. Upon the request of Holder, the Company will
at any time during the period this Warrant is outstanding acknowledge in writing, in form satisfactory to Holder, the continuing
validity of this Warrant and the obligations of the Company hereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">9. <U>REGISTRATION
RIGHTS.</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If at any time after the
date hereof the Company shall determine to prepare and file with the Securities and Exchange Commission (the &ldquo;<U>Commission</U>&rdquo;)
a registration statement relating to an offering for its own account or the account of others under the Securities Act of 1933,
as amended, of any of its equity securities (other than a registration statement on Form S-4 or Form S-8), then the Company shall
send to the Holder written notice of such determination. Within ten (10) calendar days after receipt of such notice, the Holder
shall so request in writing, the Company shall include in such registration statement all or any part of the Warrant Shares such
Holder requests to be registered and prepare and file the Registration Statement with the Commission and shall use its commercially
reasonable efforts to have the registration statement declared effective by the Commission as soon as reasonably practicable.
All expenses incurred by the Company in complying with this provision, including, without limitation, all registration and filing
fees, printing expenses (if required), fees and disbursements of counsel and independent public accountants for the Company, fees
and expenses (including reasonable counsel fees) incurred in connection with complying with state securities or &ldquo;blue sky&rdquo;
laws, fees of the NASD, transfer taxes, and fees of transfer agents and registrars, are called &ldquo;<U>Registration Expenses</U>.&rdquo;
All selling commissions applicable to the sale of Warrant Shares pursuant to this provision are called &quot;<U>Selling Expenses</U>.&quot;
The Company will pay all Registration Expenses in connection with the registration statement under this section. Selling Expenses
in connection with each registration statement shall be borne by the Holder and will be apportioned among such Holders in proportion
to the number of Warrant Shares included therein for a Holder relative to all the securities included therein for all selling
holders, or as all Holders may agree.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">10. <U>SUPPLYING INFORMATION.</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The Company shall
cooperate with Holder and each holder of Warrant Shares in supplying such information pertaining to the Company as may be reasonably
necessary for such Holder and each holder of Warrant Shares to complete and file any information reporting forms presently or hereafter
required by the Securities and Exchange Commission as a condition to the availability of an exemption from the Act for the sale
of Warrant Shares.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">11 <U>LIMITATION OF
LIABILITY.</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">No provision hereof,
in the absence of affirmative action by Holder to purchase shares of Common Stock, and no enumeration herein of the rights or privileges
of Holder hereof, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of
the Company, whether such liability is asserted by the Company or by creditors of the Company.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(a) <U>Transfer
Taxes; Expenses</U>. The Holder shall pay any and all underwriters' discounts, brokerage fees, and transfer taxes, as may be applicable,
incident to the sale of this Warrant or the sale of the underlying shares issuable hereunder, and shall pay the fees and expenses
of any special attorneys or accountants retained by it.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(b)  <U>Successors
and Assigns</U>. Subject to compliance with the provisions of Section 3, this Warrant and the rights evidenced hereby shall inure
to the benefit of and be binding upon the successors of the Company and the successors and assigns of Holder. The provisions of
this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant, and shall be enforceable by any
such Holder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin: 0; text-indent: 0.5in">(c) <U>Notice</U>. Any notice or other communication
required or permitted to be given to the Company shall be in writing and shall be delivered by certified mail with return receipt
or delivered in person against receipt, addressed to the Company at 1607 Ponce De Leon Avenue, Suite 407San Juan, Puerto Rico 00909.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin: 0; text-indent: 0.5in">(d) <U>Governing Law</U>. This Warrant Certificate
shall be governed by, and construed in accordance with, the internal laws of the State of Nevada, without reference to the conflicts
of laws provisions thereof.</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in">IN WITNESS WHEREOF,
the Company has caused this Warrant Certificate to be duly executed as of the date set forth below.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">Red Cat Holdings, Inc.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">By: ______________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3.3in; text-align: justify">Jeffrey Thompson</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3.3in; text-align: justify">Chief Executive
Officer &#9;</P>

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Issuance Date:[ &nbsp;&nbsp;], 202[
&nbsp;&nbsp;]</P>

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

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><U>FORM OF EXERCISE OF WARRANT</U></P>

<P STYLE="font: 12pt/24pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><B>No. 2025__</B></P>

<P STYLE="font: 12pt/24pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">The undersigned hereby
irrevocably elects to exercise this Warrant and to purchase thereunder, ___________________ full shares of Red Cat Holdings Inc.
Common Stock issuable upon exercise of the Warrant and delivery of:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">$_________ (in cash as provided for in the foregoing Warrant) and any applicable taxes payable
by the undersigned pursuant to such Warrant; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(2)</TD><TD STYLE="text-align: justify">shares of Common Stock (pursuant to a Cashless Exercise in accordance with Section 1(b)(ii) of
the Warrant) (check here if the undersigned desires to deliver an unspecified number of shares equal to the number sufficient to
effect a Cashless Exercise [___]).</TD></TR></TABLE>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><I>Delivery of exercise notice
requiring a payment by check must be by national courier (Fedex, UPS, etc.) to:</I></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 103.5pt; text-align: justify; text-indent: 0in">Red Cat Holdings,
Inc.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 103.5pt; text-align: justify; text-indent: 0in">1607 Ponce De
Leon Avenue, Suite 407</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 103.5pt; text-align: justify; text-indent: 0in">San Juan, Puerto
Rico 00909</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 103.5pt; text-align: justify; text-indent: 0in">Attn: Jeffrey
Thompson</P>

<P STYLE="font: 12pt/24pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/24pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The shares should be sent to me at the
address provided below.</P>

<P STYLE="font: 12pt/24pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Date:_______________ &#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;&#9;______________________________________</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 280pt; text-align: justify; text-indent: 0.5in"><I>(Signature)</I></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2.5in; text-align: justify; text-indent: 0.5in">Name <FONT STYLE="font-size: 8pt"><I>(Printed)</I></FONT>:
___________________________</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2.5in; text-align: justify; text-indent: 0.5in">Address: _______________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 2.5in; text-align: justify; text-indent: 0.5in">_______________________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">Social Security Number <I>(<FONT STYLE="font-size: 10pt">for
individual holder)</FONT></I> or Employer Identification Number (Tax ID) <FONT STYLE="font-size: 10pt"><I>(for entity)</I></FONT>:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">_______________________________________</P>


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