Exhibit 10.3


 


REGISTRATION RIGHTS AGREEMENT


 


THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”)
is entered into as of the 19th day of October, 2021, by and between Parrot Drones S.A.S., a Société par
Actions Simplifiée organized under the laws of France (the “Holder”) and AgEagle Aerial Systems
Inc., a Nevada corporation (the “Parent”).


 


Capitalized terms used, but not otherwise defined
herein, shall have the meanings ascribed to such terms in the Stock Purchase Agreement, dated as of October 18, 2021 (the “Purchase
Agreement”), by and between the Holder and the Parent.


 


WHEREAS, the Holder and the Parent desire to
enter into this Agreement to provide the Holder with certain rights relating to the registration of the Registrable Securities
(as defined below);


 


NOW, THEREFORE, in consideration of the mutual
covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:


 


1.             DEFINITIONS. The following capitalized
terms used herein have the following meanings:


 


“Agreement” means this
Agreement, as amended, restated, supplemented, or otherwise modified from time to time.


 


“Business Day” means
any day, other than Saturday, Sunday or any other day on which banks are authorized by law to be closed in New York, New York.


 


“Commission” means the
Securities and Exchange Commission, or any other Federal agency then administering the Securities Act or the Exchange Act.


 


“Common Stock” means
common stock of the Parent, par value $0.001 per share and any other shares of stock issued or issuable with respect thereto (whether
by way of a stock dividend or stock split or in exchange for or upon conversion of such shares or otherwise in connection with
a combination of shares, distribution, recapitalization, merger, consolidation, other corporate reorganization or other similar
event with respect to the Common Stock).


 


“Effectiveness Date”
means, with respect to a Registration Statement, the 90th calendar day following the Filing Date; provided, however,
that in the event the Parent is notified by the Commission that the Registration Statement will not be reviewed or is no longer
subject to further review and comments, the Effectiveness Date shall be the second (2nd) Business Day following the
date on which the Parent is so notified; provided, further, that, if the Effectiveness Date falls on a Saturday, Sunday or any
other day which shall be a legal holiday or a day on which the Commission is authorized or required by law or other government
actions to close, the Effectiveness Date shall be the following Business Day.


 



    	 



    	 



    

 


“Effectiveness Period”
is defined in Section 2.1.1.


 


“Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder, all as
the same shall be in effect at the time.


 


“Filing Date” means
no later than ten (10) days following the date the Stock Consideration Shares are delivered to the Holder, pursuant to the Purchase
Agreement.


 


“Holder” is defined
in the preamble to this Agreement.


 


“Holder Indemnified Party”
is defined in Section 4.1.


 


“Indemnified Party”
is defined in Section 4.3.


 


“Indemnifying Party”
is defined in Section 4.3.


 


“Notices” is defined
in Section 6.4.


 


“Plan of Distribution”
is defined in Section 2.1.1.


 


“Register,” “Registered”
and “Registration” mean a registration effected by preparing and filing a registration statement or similar
document in compliance with the requirements of the Securities Act, and the applicable rules and regulations promulgated thereunder,
and such registration statement becoming effective.


 


“Registrable Securities”
means all shares of Common Stock issued to the Holder as Stock Consideration Shares (as defined in the Purchase Agreement). Registrable
Securities shall also include any securities of the Parent issued or issuable upon any stock split, stock dividend or other distribution,
recapitalization, merger, consolidation or other reorganization or other similar event with respect to, in exchange for or in replacement
of each of the shares of Common Stock held by the Holder. As to the Registrable Securities, such securities shall cease to be Registrable
Securities with respect to the Holder when: (a) a Registration Statement with respect to the sale of all of such securities shall
have become effective under the Securities Act and such securities shall have been sold, transferred, disposed of or exchanged
in accordance with such Registration Statement; (b) such securities shall have been otherwise transferred, new certificates for
them not bearing a legend restricting further transfer shall have been delivered by the Parent and subsequent public distribution
of them shall not require registration under the Securities Act; (c) such securities shall have ceased to be outstanding, or (d)
the Registrable Securities are freely saleable under Rule 144 without volume limitations.


 


“Registration Statement”
means a registration statement filed pursuant to Section 2.1 of this Agreement by the Parent with the Commission in compliance
with the Securities Act and the rules and regulations promulgated thereunder, for a public offering and sale of equity securities,
or securities or other obligations exercisable or exchangeable for, or convertible into, equity securities, together with any amendments
and supplements to such registration statement, including post-effective amendments, and all exhibits and all materials incorporated
by reference in such registration statement (other than a registration statement on Form S-4 or Form S-8, or their successors,
or any registration statement covering only securities proposed to be issued in exchange for securities or assets of another entity).


 



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“Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder, all as the same
shall be in effect at the time.


 


2.            REGISTRATION RIGHTS.


 


2.1          Shelf Registration.


 


2.1.1 On or prior to the Filing Date, the
Parent shall prepare and file with the Commission a Registration Statement covering the resale of all or such maximum portion of
the Registrable Securities as permitted by SEC Guidance (provided that, the Parent shall use diligent efforts to advocate with
the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without
limitation, the Manual of Publicly Available Telephone Interpretations D.29) that are not then registered on an effective Registration
Statement for an offering to be made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall
be on Form S-3 (except if the Parent is then ineligible to register for resale the Registrable Securities on Form S-3, such registration
shall be on Form S-1 in accordance herewith) and shall contain the “Plan of Distribution” attached hereto
as Annex A. Subject to the terms of this Agreement, the Parent shall use its best efforts to cause a Registration Statement
to be declared effective under the Securities Act as soon as possible after the filing thereof, but in any event prior to the applicable
Effectiveness Date, and shall use its best efforts to keep such Registration Statement continuously effective under the Securities
Act until all Registrable Securities covered by such Registration Statement have been sold or may be sold without volume or manner-of-sale
restrictions pursuant to Rule 144, without the requirement for the Parent to be in compliance with the current public information
requirement under Rule 144, as determined by the counsel to the Parent pursuant to a written opinion letter to such effect, addressed
and acceptable to the Parent’s transfer agent and the Holder (the “Effectiveness Period”). The Parent shall
submit to the Commission a request for acceleration of the effectiveness of a Registration Statement as of 5:00 p.m. New York City
time on a Business Day. The Parent shall promptly notify the Holder by e-mail n of the effectiveness of a Registration Statement
on the same Business Day that the Parent telephonically confirms effectiveness with the Commission. The Parent shall, no later
than the second (2nd) Business Day after the effective date of such Registration Statement, file a final prospectus
with the Commission as required by Rule 424. Such Registration Statement, including any preliminary prospectus or final prospectus
contained therein or any amendments or supplements thereto, shall comply as to form and content with the applicable requirements
of the Securities Act and shall not contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein, or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.


 


2.1.2 The Holder agrees to furnish to
the Parent a completed Selling Stockholder Questionnaire within three (3) Business Days following the delivery of the Stock Consideration
Shares to the Holder, as set forth in the Purchase Agreement, a form of which is provided by the Parent together with this Agreement
as Exhibit B. The Holder further acknowledges and agrees that it shall not be entitled to be named as a selling security
holder in the Registration Statement or use the Prospectus for offers and resales of Registrable Securities at any time, unless
the Holder has returned to the Parent a completed and signed Selling Stockholder Questionnaire. If the Holder returns a Selling
Stockholder Questionnaire after the deadline specified in the previous sentence, the Parent shall use its commercially reasonable
efforts to take such actions as are required to name the Holder as a selling security holder in the Registration Statement or any
pre-effective or post-effective amendment thereto and to include (to the extent not theretofore included) in the Registration Statement
the Registrable Securities identified in the late Selling Stockholder Questionnaire; provided that the Parent shall not be required
to file an additional Registration Statement solely for such shares. The Holder acknowledges and agrees that the information in
the Selling Stockholder Questionnaire will be used by the Parent in the preparation of the Registration Statement and hereby consents
to the inclusion of such information in the Registration Statement.


 



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3.            REGISTRATION PROCEDURES.


 


3.1          Filings; Information. Whenever
the Parent is required to effect the registration of any Registrable Securities pursuant to Section 2, the Parent shall use its
best efforts to effect the registration and sale of such Registrable Securities in accordance with the intended method(s) of distribution
thereof as expeditiously as practicable, and in connection with any such request:


 


3.1.2Copies. The Parent shall,
prior to filing a Registration Statement or prospectus, or any amendment or supplement thereto, furnish without charge to the holders
of Registrable Securities included in such registration, and such holder’s legal counsel, copies of such Registration Statement
as proposed to be filed, each amendment and supplement to such Registration Statement (in each case including all exhibits thereto
and documents incorporated by reference therein), the prospectus included in such Registration Statement (including each preliminary
prospectus), and such other documents as the holders of Registrable Securities included in such registration or legal counsel for
any such holders may request in order to facilitate the disposition of the Registrable Securities owned by such holders.


 


3.1.3Amendments and Supplements.
The Parent shall prepare and file with the Commission such amendments, including post-effective amendments, and supplements to
such Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Registration Statement
effective and in compliance with the provisions of the Securities Act until all Registrable Securities and other securities covered
by such Registration Statement have been disposed of in accordance with the intended method(s) of distribution set forth in such
Registration Statement or such securities have been withdrawn. The Parent shall use its best efforts to cause any post-effective
amendment to any such Registration Statement that is not effective upon filing to become effective as soon as practicable after
such filing. The Parent shall, no later than the second (2nd) Business Day after a post-effective amendment to a Registration
Statement becomes effective, file a final prospectus or prospectus supplement with the Commission as required by Rule 424.


 



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3.1.4Notification. After the
filing of a Registration Statement or an amendment or supplement to any prospectus forming a part of such Registration Statement,
the Parent shall promptly, and in no event more than one (1) Business Day after such filing, notify the holders of Registrable
Securities included in such Registration Statement of such filing, and shall further notify such holders promptly and confirm such
advice in writing in all events within one (1) Business Day of the occurrence of any of the following: (i) receipt of a comment
letter from the Commission; (ii) notification by the Commission that the Registration Statement will not be reviewed or is no longer
subject to further review and comments; (iii) when such Registration Statement becomes effective; (iv) when any post-effective
amendment to such Registration Statement becomes effective; (v) the issuance or threatened issuance by the Commission of any stop
order (and the Parent shall take all actions required to prevent the entry of such stop order or to remove it if entered); and
(vi) any request by the Commission for any amendment or supplement to such Registration Statement or any prospectus relating thereto
or for additional information or of the occurrence of an event requiring the preparation of a supplement or amendment to such prospectus
so that, as thereafter delivered to the purchasers of the securities covered by such Registration Statement, such prospectus will
not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading, and promptly make available to the holders of Registrable Securities included in
such Registration Statement any such supplement or amendment; except that before filing with the Commission a Registration Statement
or prospectus or any amendment or supplement thereto, including documents incorporated by reference, the Parent shall furnish to
the holders of Registrable Securities included in such Registration Statement and to the legal counsel for any such holders, copies
of all such documents proposed to be filed sufficiently in advance of filing to provide such holders and legal counsel with a reasonable
opportunity to review such documents and comment thereon, and the Parent shall not file any Registration Statement or prospectus
or amendment or supplement thereto, including documents incorporated by reference, to which such holders or their legal counsel
shall object. The Parent shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction.


 


3.1.5State Securities Laws Compliance.
The Parent shall use its best efforts to (i) register or qualify the Registrable Securities covered by a Registration Statement
under such securities or “blue sky” laws of such jurisdictions in the United States as the holders of Registrable Securities
included in such Registration Statement (in light of their intended Plan of Distribution) may request and (ii) take such action
necessary to cause such Registrable Securities covered by such Registration Statement to be registered with or approved by such
other governmental authorities as may be necessary by virtue of the business and operations of the Parent and do any and all other
acts and things that may be necessary or advisable to enable the holders of Registrable Securities included in such Registration
Statement to consummate the disposition of such Registrable Securities in such jurisdictions; provided, however, that the Parent
shall not be required to qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify
but for this paragraph or subject itself to taxation in any such jurisdiction.


 


3.1.6Intentionally deleted.


 


3.1.7Earnings Statement. The
Parent shall comply with all applicable rules and regulations of the Commission and the Securities Act, and make available to its
shareholders, as soon as practicable, an earnings statement covering a period of twelve (12) months, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.


 



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3.1.8Listing. The Parent shall
use its best efforts to cause all Registrable Securities included in any registration to be (i) listed on such exchanges or otherwise
designated for trading in the same manner as the Common Stock is then listed or designated or, if the Common Stock is not then
listed or designated, in a manner satisfactory to the holders of a majority of the Registrable Securities included in such registration
and (ii) reflected in the stock ledger maintained by the Parent’s transfer agent.


 


3.1.9Regulation M. The Parent shall
take no direct or indirect action prohibited by Regulation M under the Exchange Act.


 


3.2          Obligation to Suspend Use of the Prospectus.
Upon receipt of any notice from the Parent of the happening of any event of the kind described in Section 3.1.4(vi), each holder
of Registrable Securities included in any registration shall immediately discontinue disposition of such Registrable Securities
pursuant to the Registration Statement covering such Registrable Securities until such holder receives the supplemented or amended
prospectus contemplated by Section 3.1.4(vi), and, if so directed by the Parent, each such holder will deliver to the Parent all
copies, other than permanent file copies then in such holder’s possession, of the most recent prospectus covering such Registrable
Securities at the time of receipt of such notice.


 


3.3          Registration Expenses. The Holder
shall reimburse the Parent up to $50,000 (the “Expense Cap”) for: (i) all costs and expenses incurred in connection
with the filing of the Registration Statement(s) pursuant to Section 2.1 and (ii) all expenses incurred in performing or complying
with Parent’s other obligations under this Agreement, upon presentation of invoices evidencing such fees and expenses in reasonable
detail. Except for the Expense Cap or as otherwise expressly set forth herein, the Holder shall not be responsible for any other
costs or expenses incurred by or on behalf of the Parent in complying with the Parent’s obligations under this Agreement.


 


3.4          Information. The holders of Registrable
Securities shall provide such information as may reasonably be requested by the Parent in connection with the preparation of any
Registration Statement, including amendments and supplements thereto, in order to effect the registration of any Registrable Securities
under the Securities Act pursuant to Section 2 and in connection with the Parent’s obligation to comply with Federal and applicable
state securities laws.


 


4.            INDEMNIFICATION AND CONTRIBUTION.


 



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4.1          Indemnification by the Parent.
The Parent agrees to indemnify and hold harmless the Holder and each other holder of Registrable Securities, and each of their
respective officers, employees, affiliates, directors, managers, partners, members, stockholders, attorneys, representatives and
agents, and each person, if any, who controls the Holder and each other holder of Registrable Securities (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) (each, a “Holder Indemnified Party”),
from and against any expenses, losses, judgments, claims, damages or liabilities, whether joint or several, arising out of or based
upon (i) any untrue statement (or allegedly untrue statement) of a material fact contained in any Registration Statement under
which the sale of such Registrable Securities was registered under the Securities Act, any preliminary prospectus, final prospectus
or summary prospectus contained in the Registration Statement, or any amendment or supplement to such Registration Statement or
any documents incorporated therein by reference, (ii) any omission (or alleged omission) to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading,
or (iii) any violation by the Parent or its agents of the Securities Act or any other similar federal or state securities laws
or any rule or regulation promulgated thereunder applicable to the Parent or its agents and relating to action or inaction required
of the Parent in connection with any such registration; and the Parent shall promptly reimburse the Holder Indemnified Party for
any legal and any other expenses reasonably incurred by such Holder Indemnified Party in connection with investigating or defending
any such expense, loss, judgment, claim, damage, liability or action whether or not any such person is a party to any such claim
or action and including any and all legal and other expenses incurred in giving testimony or furnishing documents in response to
a subpoena or otherwise; provided, however, that the Parent will not be liable in any such case to the extent that any such expense,
loss, claim, damage or liability arises out of or is based upon any untrue statement or allegedly untrue statement or omission
or alleged omission made in such Registration Statement, preliminary prospectus, final prospectus, or summary prospectus, or any
such amendment or supplement, in reliance upon and in conformity with information furnished to the Parent, in writing, by such
selling holder expressly for use therein. Such indemnity shall survive the transfer of such securities by the Holder and any termination
of this Agreement, and shall be in addition to any liability the Parent may otherwise have.


 


4.2          Indemnification by Holder of Registrable
Securities. Subject to the limitations set forth in Section 4.4.3 hereof, each selling holder of Registrable Securities will,
in the event that any registration is being effected under the Securities Act pursuant to this Agreement of any Registrable Securities
held by such selling holder, severally and not jointly, indemnify and hold harmless the Parent, each of its directors and officers,
and each other selling holder and each other person, if any, who controls another selling holder within the meaning of the Securities
Act, against any losses, claims, judgments, damages or liabilities, insofar as such losses, claims, judgments, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any untrue statement or allegedly untrue statement of a material
fact contained in any Registration Statement under which the sale of such Registrable Securities was registered under the Securities
Act, any preliminary prospectus, final prospectus or summary prospectus contained in the Registration Statement, or any amendment
or supplement to the Registration Statement, or arise out of or are based upon any omission or the alleged omission to state a
material fact required to be stated therein or necessary to make the statement therein, in light of the circumstance in which they
were made, not misleading, if the statement or omission was made in reliance upon and in conformity with information furnished
in writing to the Parent by such selling holder expressly for use therein, and shall reimburse the Parent, its directors and officers,
and each other selling holder or controlling person for any legal or other expenses reasonably incurred by any of them in connection
with investigation or defending any such loss, claim, damage, liability or action. Each selling holder’s indemnification obligations
hereunder shall be several and not joint and shall be limited to the amount of any net proceeds (after expenses, fees, commissions
and discounts) actually received by such selling holder for the sale of the Registrable Securities pursuant to the Registration
Statement which gives rise to such obligation to indemnify and/or contribute. Such indemnity shall survive the transfer of such
securities by the Holder and any termination of this Agreement, and shall be in addition to any liability the selling holder may
otherwise have.


 



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4.3          Conduct of Indemnification Proceedings.
Promptly after receipt by any person of any notice of any loss, claim, damage or liability or any action in respect of which indemnity
may be sought pursuant to Section 4.1 or 4.2, such person (the “Indemnified Party”) shall, if a claim in
respect thereof is to be made against any other person for indemnification hereunder, notify such other person (the “Indemnifying
Party”) in writing of the loss, claim, judgment, damage, liability or action; provided, however, that the failure
by the Indemnified Party to notify the Indemnifying Party shall not relieve the Indemnifying Party from any liability which the
Indemnifying Party may have to such Indemnified Party hereunder, except and solely to the extent the Indemnifying Party is actually
materially prejudiced by such failure. If the Indemnified Party is seeking indemnification with respect to any claim or action
brought against the Indemnified Party, then the Indemnifying Party shall be entitled to participate in such claim or action, and,
to the extent that it wishes, jointly with all other Indemnifying Parties, to assume control of the defense thereof with counsel
satisfactory to the Indemnified Party. After notice from the Indemnifying Party to the Indemnified Party of its election to assume
control of the defense of such claim or action, the Indemnifying Party shall not be liable to the Indemnified Party for any legal
or other expenses subsequently incurred by the Indemnified Party in connection with the defense thereof other than reasonable costs
of investigation; provided, however, the Indemnified Party shall have the right to employ separate counsel (but no more than one
such separate counsel) to represent the Indemnified Party and its controlling persons who may be subject to liability arising out
of any claim in respect of which indemnity may be sought by the Indemnified Party against the Indemnifying Party, with the fees
and expenses of such counsel to be paid by such Indemnifying Party if, based upon the written advice of counsel of such Indemnified
Party, representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests
between them (including differing legal defenses). No Indemnifying Party shall, without the prior written consent of the Indemnified
Party, consent to entry of judgment or effect any settlement of any claim or pending or threatened proceeding in respect of which
the Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless
such judgment or settlement includes an unconditional release of such Indemnified Party from all liability arising out of such
claim or proceeding. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, consent to entry
of judgment or effect any settlement of any claim or pending or threatened proceeding in respect of which the Indemnified Party
is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party that includes a statement
about or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Party.


 


4.4          Contribution.


 


4.4.1If the indemnification provided
for in the foregoing Sections 4.1, 4.2 and 4.3 is held by a court of competent jurisdiction to be unavailable to an Indemnified
Party in respect of any loss, claim, damage, liability or action referred to herein, then each such Indemnifying Party, in lieu
of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of
such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the Indemnified
Parties on the one hand and the Indemnifying Parties on the other hand in connection with the actions or omissions which resulted
in such loss, claim, damage, liability or action, as well as any other relevant equitable considerations. The relative fault of
any Indemnified Party and any Indemnifying Party shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
supplied by such Indemnified Party or such Indemnifying Party and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.


 



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4.4.2The parties hereto agree that it
would not be just and equitable if contribution pursuant to this Section 4.4 were determined by pro rata allocation or by any other
method of allocation which does not take account of the equitable considerations referred to in the immediately preceding Section
4.4.1.


 


4.4.3The amount paid or payable by an
Indemnified Party as a result of any loss, claim, damage, liability or action referred to in the immediately preceding paragraph
shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified
Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 4.4,
no holder of Registrable Securities shall be required to contribute any amount in excess of the dollar amount of the net proceeds
(after expenses, fees, commissions, and discounts) actually received by such holder from the sale of Registrable Securities which
gave rise to such contribution obligation. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.


 


5.            RULE 144.


 


5.1          Rule 144. The Parent covenants
that it shall (i) make and keep public information available, as those terms are understood and defined in Rule 144, at all times
after the Effective Date, (ii) file any reports required to be filed by it under the Securities Act and the Exchange Act in a timely
manner, at any time after the Effective Date, and (iii) shall take such further action as the holders of Registrable Securities
may reasonably request, all to enable such holders to sell Registrable Securities without registration under the Securities Act
within the limitation of the exemptions provided by Rule 144 under the Securities Act, as such Rules may be amended from time to
time, or any similar rule or regulation hereafter adopted by the Commission.


 


6.            MISCELLANEOUS.


 


6.1          Preservation of Rights. The Parent
shall not enter into any agreement, take any action, or permit any change to occur, with respect to its securities that violates
or subordinates the rights expressly granted to the holders of Registrable Securities in this Agreement, without first obtaining
the consent in writing by the holders holding a majority of the Registrable Securities.


 



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6.2          Other Registration Rights. The
Parent represents and warrants that (a) no person, other than the holders of the Registrable Securities, has any right to require
the Parent to register any of the Parent’s equity securities, or securities exercisable for or exchangeable into Parent equity
securities in any registration filed by the Parent for the sale of equity securities for its own account or for the account of
any other person and (b) neither the execution, delivery or performance by the Parent of this Agreement does or will constitute
a default under or breach of (with or without the giving of notice or the passage of time or both) or violate or give rise to any
breach of any contract or agreement to which the Parent is a party.


 


6.3          Assignment; No Third Party Beneficiaries.
This Agreement and the rights, duties and obligations of the Parent hereunder may not be assigned or delegated by the Parent in
whole or in part. This Agreement and the rights, duties and obligations of the holders of Registrable Securities hereunder may
be freely assigned or delegated by such holder of Registrable Securities in conjunction with and to the extent of any transfer
of Registrable Securities by any such holder. This Agreement and the provisions hereof shall be binding upon and shall inure to
the benefit of each of the parties, to the permitted assigns of the Holder or holder of Registrable Securities or of any assignee
of the Holder or holder of Registrable Securities. This Agreement is not intended to confer any rights or benefits on any persons
that are not party hereto other than as expressly set forth in Article 4 and this Section 6.3.


 


6.4          Notices. All notices, demands,
requests, consents, approvals or other communications (collectively, “Notices”) required or permitted to
be given hereunder or which are given with respect to this Agreement shall be in writing and shall be personally served, delivered
by reputable air courier service with charges prepaid, or transmitted by hand delivery, telegram, telex or facsimile, addressed
as set forth below, or to such other address as such party shall have specified most recently by written notice. Notice shall be
deemed given on the date of service or transmission if personally served or transmitted by telegram, telex or facsimile; provided,
that if such service or transmission is not on a Business Day or is after normal business hours, then such notice shall be deemed
given on the next Business Day. Notice otherwise sent as provided herein shall be deemed given on the next Business Day following
timely delivery of such notice to a reputable air courier service with an order for next-day delivery.


 


To the Parent:


 


AgEagle Aerial Systems Inc. 


8863 E. 34th Street North


Wichita, Kansas 67226


E-mail: brandon.declet@ageagle.com


Attention: Brandon
Torres Declet, CEO


 


with a copy to (which shall
not constitute notice):


 


Loeb & Loeb LLP

345 Park Avenue, 19th floor

New York, NY 10154

Attention: Mitchell S. Nussbaum

                 Tahra T. Wright

Email: mnussbaum@loeb.com

twright@loeb.com



 



 


To the Holder, to the address set forth below the Holder’s
name on Exhibit A hereto.


 



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6.5         Severability. This Agreement shall be deemed severable,
and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this
Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision,
the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid
or unenforceable provision as may be possible that is valid and enforceable.


 


6.6         Counterparts. This Agreement may be executed in
multiple counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the
same instrument. This Agreement shall become effective upon delivery to each party of an executed counterpart or the earlier delivery
to each party of original, photocopied, or electronically transmitted signature pages that together (but need not individually)
bear the signatures of all other parties.


 


6.7         Entire Agreement. This Agreement (including all
agreements entered into pursuant hereto and all certificates and instruments delivered pursuant hereto and thereto) constitute
the entire agreement of the parties with respect to the subject matter hereof and supersede all prior and contemporaneous agreements,
representations, understandings, negotiations and discussions between the parties, whether oral or written. Furthermore, this Agreement
supersedes any and all other registration rights agreements between the Parent and the Holder in respect of the Registrable Securities
contemplated under the Purchase Agreement.


 


6.8         Modifications and Amendments. No amendment, modification
or termination of this Agreement shall be binding upon the Parent unless executed in writing by the Parent. No amendment, modification
or termination of this Agreement shall be binding upon the holders of the Registrable Securities unless executed in writing by
the holders holding a majority of the Registrable Securities.


 


6.9         Titles and Headings. Titles and headings of sections
of this Agreement are for convenience only and shall not affect the construction of any provision of this Agreement.


 


6.10       Waivers and Extensions. Any party to this Agreement
may waive any right, breach or default which such party has the right to waive, provided that such waiver will not be effective
against the waiving party unless it is in writing, is signed by such party, and specifically refers to this Agreement. Waivers
may be made in advance or after the right waived has arisen or the breach or default waived has occurred. Any waiver may be conditional.
No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding
breach thereof nor of any other agreement or provision herein contained. No waiver or extension of time for performance of any
obligations or acts shall be deemed a waiver or extension of the time for performance of any other obligations or acts.


 



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6.11       Remedies Cumulative. In the event that the Parent
fails to observe or perform any covenant or agreement to be observed or performed under this Agreement, the Holder or any other
holder of Registrable Securities may proceed to protect and enforce its rights by suit in equity or action at law, whether for
specific performance of any term contained in this Agreement or for an injunction against the breach of any such term or in aid
of the exercise of any power granted in this Agreement or to enforce any other legal or equitable right, or to take any one or
more of such actions, without being required to post a bond. Each of the Parent and the Holder acknowledges that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and each
such party hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. None
of the rights, powers or remedies conferred under this Agreement shall be mutually exclusive, and each such right, power or remedy
shall be cumulative and in addition to any other right, power or remedy, whether conferred by this Agreement or now or hereafter
available at law, in equity, by statute or otherwise.


 


6.12       Governing Law/Venue. This Agreement shall be
governed by, interpreted under, and construed in accordance with the internal laws of the State of New York applicable to agreements
made and to be performed within the State of New York, without giving effect to any choice-of-law provisions thereof that would
compel the application of the substantive laws of any other jurisdiction. Any legal suit, action or proceeding arising out of or
based upon this agreement, the other additional agreements or the transactions contemplated hereby or thereby may be instituted
in the Federal courts of the United States of America or the courts of the State of New York, in each case located in the City
of New York, New York County, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit,
action or proceeding. the parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action
or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient forum.


 


6.13       Waiver of Trial by Jury. EACH PARTY HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT, COUNTERCLAIM OR OTHER PROCEEDING (WHETHER BASED ON
CONTRACT, TORT OR OTHERWISE) ARISING OUT OF, CONNECTED WITH OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY,
OR THE ACTIONS OF THE HOLDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF.


 


[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]


 



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IN WITNESS WHEREOF, the parties have caused
this Registration Rights Agreement to be executed and delivered by their duly authorized representatives as of the date first written
above.


 





	PARENT:	 
	 	 	 
	AGEAGLE AERIAL SYSTEMS INC.	 
	 	 	 
	By:	/s/ Brandon Torres Declet	 
	Name:	Brandon Torres Declet	 
	Title:	Chief Executive Officer	 
	 	 	 
	HOLDER:	 
	 	 	 
	PARROT DRONES S.A.S.	 
	 	 	 
	By:	/s/ Henri Seydoux	 
	Name:	Henri Seydoux	 
	Title:	President	 





 


[Signature
page to Registration Rights Agreement]


 



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EXHIBIT A


 


Name
and Address of Holder


 


	Holder	Address	Legal Counsel
	Parrot Drones S.A.S.	c/o Parrot S.A.	Davis Wright Tremaine LLP
	 	174 Quai de Jemmapes	920 Fifth Avenue, Suite 3300
	 	75010 Paris, France	Seattle, WA 98104
	 	Email: legal@parrot.com	Attn: Stuart Campbell
	 	Attn: Directeur Juridique	Email: stuartcampbell@dwt.com
	 	 	Facsimile: (206) 757-7017





  



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EXHIBIT
B


 


AGEAGLE
AERIAL SYSTEMS INC. 


 


Selling Stockholder Questionnaire


 


The undersigned beneficial
owner of securities (the “Registrable Securities”) of, AgEagle Aerial Systems Inc., a Nevada corporation (the
“Company”), understands that the Company has filed or intends to file with the Securities and Exchange Commission
(the “Commission”) a registration statement on Form S-3 (the “Registration Statement”) for the
registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the
shares of the Company’s common stock in connection with the Stock Purchase Agreement, dated as of October 18, 2021 (the “Purchase
Agreement”), by and between PARROT DRONES S.A.S. and the Company.


 


In order to sell or otherwise
dispose of the Registrable Securities pursuant to the Registration Statement, a holder generally will be required to be named as
a selling stockholder in the related prospectus or a supplement thereto (as so supplemented, the “Prospectus”)
and deliver the Prospectus to purchasers of the Registrable Securities. Holders must complete this Questionnaire in order to be
named as selling stockholders in the Prospectus.


 


Certain legal consequences
arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling stockholder in the Registration Statement and the Prospectus.


 


NOTICE


 


The undersigned beneficial
owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities
owned by it in the Registration Statement.


 


The undersigned hereby provides
the following information to the Company and represents and warrants that such information is accurate:


 


		1.	Name.



 


		(a)	Full Legal Name of Selling Stockholder:
	 	 	 



 


		(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through which
Registrable Securities are held:
	 	 	 



 



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		(c)	Full Legal Name of Natural Control Person (which means a natural person who directly
or indirectly alone or with others has power to vote or dispose of the securities covered by this Questionnaire):
	 	 	 



 


2.            Address for Notices to Selling
Stockholder:


	 
	Telephone:______________________________________________________________________________________
	Fax:___________________________________________________________________________________________
	Contact Person:__________________________________________________________________________________



 


3.            Broker-Dealer Status:


 


(a)           Are you
a broker-dealer?


 


	Yes	£	No	£	 




 


(b)          If “yes”
to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services to the Company?


 


	Yes	£	No	£	 


  


	 	Note:		If “no” to Section 3(b), the Commission’s staff has indicated that you should
be identified as an underwriter in the Registration Statement.



 


(c)           Are you
an affiliate of a broker-dealer?


 


	Yes	£	No	£	 


  


	 	(d)		If you are an affiliate of a broker-dealer, do you certify that you purchased the
Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be
resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?



 


	Yes	£	No	£	 


  


	 	Note:		If “no” to Section 3(d), the Commission’s staff has indicated that you should
be identified as an underwriter in the Registration Statement.



 



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4.            Beneficial Ownership of Securities
of the Company Owned by the Selling Stockholder.


 


Except as set forth below in this
Item 4, the undersigned is not the beneficial or registered owner of any other securities of the Company).


 


(a)           Type
and Amount of all securities beneficially owned by the Selling Stockholder:


 




 


(b)          Number
of shares of Common Stock to be registered pursuant to this Notice for resale:


 




 


5.            Relationships with the Company:


 


Except as set forth below, neither
the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity
securities of the undersigned) has held any position or office or has had any other material relationship with the Company (or
its predecessors or affiliates) during the past three years.


 


State
any exceptions here:


 




 


[Signature page follows]





 



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The undersigned agrees
to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective.


 


By signing below, the undersigned
consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and the inclusion of such information
in the Registration Statement and the related prospectus and any amendments or supplements thereto. The undersigned understands
that such information will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement
and the related prospectus and any amendments or supplements thereto.


 


IN WITNESS WHEREOF the
undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or
by its duly authorized agent.


 


	Date:	 	 	Beneficial Owner:	 
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 





 


PLEASE EMAIL A .PDF
COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE BY NO LATER THAN ________ ON ________ TO:


______________________


______________________


_____________________


 



    	 



    	 



    

 


ANNEX
A


 


Plan
of Distribution


 


The selling stockholder and any of their pledgees, donees, transferees,
assignees and successors-in-interest may, from time to time, sell any or all of their shares of Common Stock being offered under
this prospectus on any stock exchange, market or trading facility on which shares of our Common Stock are traded or quoted or
in private transactions. These sales may be at fixed prices, at prevailing market prices at the time of sale, at prices related
to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices. The selling stockholder
may use any one or more of the following methods when disposing of shares:


 


	 	●	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits purchasers;


 


	 	●	block
    trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block
    as principal to facilitate the transaction;


 


	 	●	purchases
    by a broker-dealer as principal and resales by the broker-dealer for its account;


 


	 	●	an
    exchange distribution in accordance with the rules of the applicable exchange;


 


	 	●	privately
    negotiated transactions;


 


	 	●	to
    cover short sales made after the date that the registration statement of which this prospectus is a part is declared effective
    by the SEC;


 


	 	●	broker-dealers
    may agree with the selling stockholder to sell a specified number of such shares at a stipulated price per share;


 


	 	●	a
    combination of any of these methods of sale; and


 


	 	●	any
    other method permitted pursuant to applicable law.


 


The shares may also be sold under Rule 144 under the Securities
Act of 1933, as amended, if available for the selling stockholder, rather than under this prospectus. The selling stockholder has
the sole and absolute discretion not to accept any purchase offer or make any sale of shares if they deem the purchase price to
be unsatisfactory at any particular time.


 


The selling stockholder may, from time to time, pledge their shares
to their brokers under the margin provisions of customer agreements. If the selling stockholder defaults on a margin loan, the
broker may, from time to time, offer and sell the pledged shares.


 


Broker-dealers engaged by the selling stockholder may arrange for
other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholder
(or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated, which commissions
as to a particular broker or dealer may be in excess of customary commissions to the extent permitted by applicable law.


 



    	 



    	 



    

 


If sales of shares offered under this prospectus are made to broker-dealers
as principals, we would be required to file a post-effective amendment to the registration statement of which this prospectus is
a part. In the post-effective amendment, we would be required to disclose the names of any participating broker-dealers and the
compensation arrangements relating to such sales.


 


The selling stockholder and any broker-dealers or agents that are
involved in selling the shares offered under this prospectus may be deemed to be “underwriters” within the meaning of
the Securities Act in connection with these sales. Commissions received by these broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Any
broker-dealers or agents that are deemed to be underwriters may not sell shares offered under this prospectus unless and until
we set forth the names of the underwriters and the material details of their underwriting arrangements in a supplement to this
prospectus or, if required, in a replacement prospectus included in a post-effective amendment to the registration statement of
which this prospectus is a part.


 


The selling stockholder and any other persons participating in the
sale or distribution of the shares offered under this prospectus will be subject to applicable provisions of the Exchange Act,
and the rules and regulations under that act, including Regulation M. These provisions may restrict activities of, and limit the
timing of purchases and sales of any of the shares by, the Selling Stockholder or any other person. Furthermore, under Regulation
M, persons engaged in a distribution of securities are prohibited from simultaneously engaging in market making and other activities
with respect to those securities for a specified period of time prior to the commencement of such distributions, subject to specified
exceptions or exemptions. All of these limitations may affect the marketability of the shares.


 


We have agreed to indemnify the selling stockholder against certain
liabilities, including liabilities under the Securities Act, relating to the registration of the shares offered by this prospectus.