Document:

Exhibit 10.1

SHARE PURCHASE AGREEMENT

 

THIS SHARE PURCHASE AGREEMENT
(this “Agreement”) is entered into as of November 21, 2022 (the “Effective Date”) among Unusual
Machines, Inc., a Puerto Rico corporation (“Unusual”), Red Cat Holdings, Inc., a Nevada corporation (“Red
Cat”), and Jeffrey Thompson, an individual, (the “Principal Stockholder”) for the purchase and sale
of Rotor Riot, LLC, an Ohio limited liability company (“Rotor Riot”) and Fat Shark Holdings, Ltd, a Nevada
corporation (“Acquisition” and together with Rotor Riot, each, a “Target Company” and collectively,
the “Target Companies”). Unusual, Red Cat, and the Principal Stockholder are sometimes referred to herein individually
as a “Party” and collectively as the “Parties”. As used in this Agreement, references to any Party
other than the Principal Stockholder includes their respective Subsidiaries. Capitalized terms used in this Agreement and not otherwise
defined herein shall have the meanings ascribed to such terms in Article I.

 

WHEREAS, Red Cat owns 100%
of the issued and outstanding equity interests of the Target Companies (the “Target Companies’ Capital Stock”);

 

WHEREAS, the Board of Directors
of Red Cat (the “Red Cat Board”), in its capacity as the sole holder of the Target Companies’ Capital Stock,
has: (a) determined that it is in the best interests of Red Cat to enter into this Agreement with Unusual and the Principal Stockholder
whereby Unusual will acquire 100% of the Target Companies’ Capital Stock in accordance with the terms and conditions set forth in
this Agreement; (b) approved the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated
hereby; and (c) resolved, subject to the terms and conditions set forth in this Agreement, to recommend approval of the sale of the Target
Companies’ Capital Stock (the “Purchase and Sale”) by a majority of the disinterested stockholders of Red Cat,
in accordance with the Nevada Revised Statutes (the “NRS”);

 

WHEREAS, the Board of Directors
of Unusual (the “Unusual Board”) has approved this Agreement and the Purchase and Sale; and

 

WHEREAS, the Parties desire
to make certain representations, warranties, covenants, and agreements in connection with the Purchase and Sale and the other transactions
contemplated by this Agreement and also to prescribe certain terms and conditions to the Purchase and Sale.

 

NOW, THEREFORE, in consideration
of the foregoing and of the representations, warranties, covenants, and agreements contained in this Agreement, the Parties, intending
to be legally bound, agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01Certain Definitions.
For purposes of this Agreement, the following capitalized words and terms have the following meanings in the Agreement, the Escrow Agreement
or they are generic terms referring to names such as the names of particular agreement:

 

“Acceptable Confidentiality
Agreement” has the meaning set forth in Section 8.07(b).

 

“Accredited Investor”
has the meaning set forth in Section 4.12.

 

“Acquisition Agreement”
has the meaning set forth in Section 8.07(a).

 

“Acquisition Proposal”
has the meaning set forth in Section 11.07.

 

“Affiliate”
of a Person means any other Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is
under common control with, such Person. With respect to this definition, the term “control” (including the terms “controlling”,
“controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct
or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or
otherwise. When used in this Agreement with respect to Red Cat or a Target Company, Affiliate includes the Principal Stockholder.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Agreed Working Capital”
shall mean $0.

 

“Anti-Takeover Statues”
has the meaning set forth in Section 4.01(e).

 

“Audited Financial Statements”
has the meaning set forth in Section 8.23.

 

“Basket Amount”
has the meaning set forth in Section 7.04(b).

 

“Business Day(s)”
means any day except Saturday, Sunday or any other day on which commercial banks located in New York are authorized or required by Law
to be closed for business.

 

“Cash Consideration”
has the meaning set forth in Section 2.01 of this Agreement.

 

“Charter Documents”
means: (a) with respect to a corporation, the articles or certificate of incorporation, as applicable, and bylaws thereto; (b) with respect
to a limited liability company, the certificate of formation or organization, as applicable, and the operating or limited liability company
agreement, as applicable, thereto; (c) with respect to a partnership, the certificate of formation and the partnership agreement, as applicable,
thereto; and (d) with respect to any other Person, the organizational, constituent and/or governing documents and/or instruments of such
Person.

 

“Claim(s)”
has the meaning set forth in Section 7.03(e)(i).

 

“Closing” has
the meaning set forth in Section 2.02.

 

“Closing Conditions”
has the meaning set forth in 10.01.

 

“Closing Date”
has the meaning set forth in Section 2.02.

 

“Closing Date Balance
Sheet” has the meaning set forth in Section 2.04(b).

 

“Closing Date Working
Capital” has the meaning set forth in Section 2.04(b).

 

“Closing Trial Balance
Sheet” has the meaning set forth in Section 2.04(a).

 

“Code” means
the Internal Revenue Code of 1986, as amended.

 

“Confidentiality Agreement”
has the meaning set forth in Section 8.06.

 

“Company Covered Person”
has the meaning set forth in Section 3.11.

 

“Consideration”
has the meaning specified in Section 2.01.

 

“Control” has
the meaning set forth in Section 11.07.

 

“Corporate Minute Books”
has the meaning set forth in Section 5.06.

 

“COVID-19”
means the COVID-19 virus.

 

“COVID-19 Measures”
means any measures taken by applicable Governmental Authorities to combat the COVID-19 virus.

 

“Customs Import Duties
and Impositions” has the meaning set forth in Section 5.16(d).

 

“Dispute Amounts”
has the meaning set forth in Section 2.04(d).

 

“Disqualification Event”
has the meaning set forth in Section 3.11.

 

“EDGAR” means
Electronic Data Gathering, Analysis, and Retrieval system.

 

“End Date”
has the meaning set forth in Section 11.02(a).

 

“Effective Date”
has the meaning set forth in the Preamble.

 

“Escrow” means
all the Escrow Shares or other funds or property deposited by the Principal Stockholder with the Escrow Agent under the Escrow Agreement.

 

“Escrow Agent”
means the escrow agent specified in the Escrow Agreement.

 

“Escrow Agreement”
means the Escrow Agreement to be entered into as of the Closing Date among the Red Cat, Unusual and the Escrow Agent, which shall be in
form and substance mutually acceptable to the Parties and the Escrow Agent.

 

“Escrow Shares”
is defined in Section 2.03(a).

 

“EST” means
Eastern Standard Time.

 

“Estimated Working Capital”
has the meaning set forth in Section 2.04(a).

 

“Estimated Working Capital
Deficiency Amount” has the meaning set forth in Section 2.04(a).

 

“Estimated Working Capital
Excess Amount” has the meaning set forth in Section 2.04(a).

 

“Estimated Working Capital
Statement” has the meaning set forth in Section 2.04(a).

 

“Exchange Act”
has the meaning set forth in Section 4.01(c).

 

“Expenses”
means, with respect to any Person, all reasonable and documented out-of-pocket fees and expenses (including all fees and expenses of counsel,
accountants, financial advisors, and investment bankers of such Person and its Affiliates), incurred by such Person or on its behalf in
connection with or related to the authorization, preparation, negotiation, execution, and performance of this Agreement and any transactions
related thereto, any litigation with respect thereto, the preparation, printing, filing, and mailing of the Proxy Statement, or in connection
with other Regulatory Approvals, and all other matters related to the Purchase and Sale, and the other transactions contemplated by this
Agreement.

 

“Final Working Capital”
has the meaning set forth in Section 2.04(b).

 

“Final Working Capital
Deficiency Amount” has the meaning set forth in Section 2.04(b).

 

“Final Working Capital
Excess Amount” has the meaning set forth in Section 2.04(b).

 

“GAAP” has
the meaning set forth in Section 4.07.

 

“Government bid”
means any bid that, if accepted or awarded, reasonably would be expected to lead to a Government Contract between Unusual and/or any of
its Subsidiaries, on the one hand, and any Governmental Authority, on the other hand.

 

“Government Contract”
means any prime contract, subcontract, facility contract, purchase order, task order, delivery order, teaming agreement or arrangement,
joint venture agreement, strategic alliance agreement, basic ordering agreement, pricing agreement, blanket purchase agreement, letter
contract, grant, cooperative agreement or other similar arrangement, commitment or funding vehicle of any kind that is currently active
in performance, or that has been active in performance at any time in the five year period prior to the date of the Agreement and for
which final payment has not yet been made (or has not been finally closed by the relevant Government Authority) with: (a) any Governmental
Authority; (b) any prime contractor of a Governmental Authority in its capacity as a prime contractor; or (c) any subcontractor at any
tier with respect to any contract of a type described in the foregoing clause (a) or clause (b) above. A task, purchase or delivery order
under a Government Contract shall not constitute a separate Government Contract, for purposes of this definition, but shall be part of
the Government Contract to which it relates.

 

“Governmental Authority”
means any national, state, municipal, local, or foreign government, any instrumentality, subdivision, court, administrative agency or
commission, or other governmental authority, or any quasi-governmental or private body exercising any regulatory or other governmental
or quasi-governmental authority.

 

“Governmental Consents”
has the meaning set forth in Section 3.03(c).

 

“Hazardous Substance”
means: (a) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid, mineral, or gas, in each case,
whether naturally occurring or man-made, that is hazardous, acutely hazardous, toxic, or words of similar import or regulatory effect
under Environmental Laws; and (b) any petroleum or petroleum-derived products, radon, radioactive materials or wastes, asbestos in any
form, lead or lead-containing materials, urea formaldehyde foam insulation, and polychlorinated biphenyls.

 

“Indebtedness”
has the meaning set forth in Section 4.06.

 

“Indemnified Losses”
has the meaning set forth in Section 7.03(a)(i)(A).

 

“Independent Accounting
Firm” has the meaning set forth in Section 2.01.

 

“Indemnified Party”
has the meaning set forth in Section 7.04(c).

 

“Indemnifying Party”
has the meaning set forth in Section 7.04(c).

 

“Intellectual Property”
means all intellectual property rights and assets, and all rights, interests and protections that are associated with, similar to, or
required for the exercise of, any of the foregoing, however arising, pursuant to the Laws of any jurisdiction throughout the world, whether
registered or unregistered, including any and all: (a) trademarks, service marks, trade names, brand names, logos, trade dress, design
rights and other similar designations of source, sponsorship, association or origin, together with the goodwill connected with the use
of and symbolized by, and all registrations, applications and renewals for, any of the foregoing; (b) internet domain names, whether or
not trademarks, registered in any top-level domain by any authorized private registrar or Governmental Authority, web addresses, web pages,
websites and related content, accounts with Twitter, Facebook and other social media companies and the content found thereon and related
thereto, and URLs; (c) works of authorship, expressions, designs and design registrations, whether or not copyrightable, including copyrights,
author, performer, moral and neighboring rights, and all registrations, applications for registration and renewals of such copyrights;
(d) inventions, discoveries, trade secrets, business and technical information and know-how, databases, data collections and other confidential
and proprietary information and all rights therein; (e) patents (including all reissues, divisionals, provisionals, continuations and
continuations-in-part, re-examinations, renewals, substitutions and extensions thereof), patent applications, and other patent rights
and any other Governmental Authority-issued indicia of invention ownership (including inventor’s certificates, petty patents and
patent utility models); and (f) software and firmware, including data files, source code, object code, application programming interfaces,
architecture, files, records, schematics, computerized databases and other related specifications and documentation.

 

“IP Assignments”
has the meaning set forth in Section 8.18.

 

“IRS” means
the United States Internal Revenue Service.

 

“Knowledge”
means (a) the actual knowledge or constructible knowledge of each officer, director or manager of a Party.

 

“Law(s)” means
any federal, state, local, municipal, foreign, multi-national or other Laws, common law, statutes, constitutions, ordinances, rules, regulations,
codes, Orders, or legally enforceable requirements enacted, issued, adopted, promulgated, enforced, ordered, or applied by any Governmental
Authority.

 

“Lease” means
all leases, subleases, licenses, concessions, and other agreements (written or oral) under which a Party or any of its Subsidiaries holds
any Leased Real Estate, including the right to all security deposits and other amounts and instruments deposited by or on behalf of any
Party to this Agreement or any of its Subsidiaries thereunder.

 

“Leased Real Estate”
means all leasehold or subleasehold estates and other rights to use or occupy any land, buildings, structures, improvements, fixtures,
or other interest in Real Property held by each of the Target Companies or any of their respective Subsidiaries.

 

“Legal Proceeding”
means any action, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative or appellate proceeding), investigation
or preliminary inquiry regardless of what terms a Governmental Authority may use, hearing, claim, audit, examination commenced, brought,
conducted or heard by or before, or otherwise involving, any court or other Governmental Authority or any arbitrator or arbitration panel.

 

“Liability”
means any liability, Indebtedness, or obligation of any kind (whether accrued, absolute, contingent, matured, unmatured, determined, determinable,
or otherwise, and whether or not required to be recorded or reflected on a balance sheet under GAAP).

 

“Liens” means,
with respect to any property or asset, all pledges, liens, mortgages, charges, encumbrances, hypothecations, options, rights of first
refusal, rights of first offer, and security interests of any kind or nature whatsoever including statutory liens.

 

“Lock Up Agreements”
has the meaning set forth in Section 8.19.

 

“Material Adverse Effect”
means any event, occurrence, fact, condition or change that is materially adverse to (a) the business, results of operations, condition
(financial or otherwise) prospects or assets of any Party, or (b) the ability of any Party to consummate the transactions contemplated
hereby.

 

“Material Contracts”
means any contract where the consideration to be paid or consideration has been accrued in the 12 months prior to the date of this Agreement
and in either case is in excess of $100,000 including through purchase orders.

 

“Material Permits”
has the meaning set forth in Section 5.04.

 

“Nasdaq” has
the meaning set forth in Section 8.11(a).

 

“Nasdaq Listing Application”
has the meaning set forth in Section 8.11(a).

 

“Offering”
has the meaning set forth in Section 8.01.

 

“Order” has
the meaning set forth in Section 8.23.

 

“Other Covered Person”
has the meaning set forth in Section 3.11.

 

“Party” has
the meaning set forth in the preamble.

 

“Parties” has
the meaning set forth in the preamble.

 

“PCAOB” has
the meaning set forth in Section 8.23.

 

“Permitted Liens”
means: (a) statutory Liens for current Taxes or other governmental charges not yet due and payable or the amount or validity of which
is being contested in good faith (provided appropriate reserves required pursuant to GAAP have been made in respect thereof); (b) mechanics’,
carriers’, workers’, repairers’, and similar statutory Liens arising or incurred in the ordinary course of business
for amounts which are not delinquent or which are being contested by appropriate proceedings (provided appropriate reserves required pursuant
to GAAP have been made in respect thereof); (c) zoning, entitlement, building, and other land use regulations imposed by Governmental
Authority having jurisdiction over such Person’s owned or leased Real Property, which are not violated by the current use and operation
of such Real Property; (d) covenants, conditions, restrictions, easements, and other similar non-monetary matters of record affecting
title to such Person’s owned or leased Real Property, which do not materially impair the occupancy or use of such Real Property
for the purposes for which it is currently used in connection with such Person’s businesses; (e) any right of way or easement related
to public roads and highways, which do not materially impair the occupancy or use of such Real Property for the purposes for which it
is currently used in connection with such Person’s businesses; and (f) Liens arising under workers’ compensation, unemployment
insurance, social security, retirement, and similar legislation.

 

“Person” means
any individual, corporation, limited or general partnership, limited liability company, limited liability partnership, trust, association,
joint venture, Governmental Authority, or other entity or group (which term will include a “group” as such term is defined
in Section 13(d)(3) of the Exchange Act).

 

“Personal Data”
means: (a) information that can be used to identify an individual either alone or when combined with other personal or identifying information
that is linked or linkable to a specific individual, and (b) any other information covered by any applicable data privacy or security
Law, each in connection with the operation of the applicable Party’s business.

 

“Personally Identifiable
Information” means information pertaining to an individual that is regulated by one or more information privacy or security
Laws.

 

“Preliminary Unaudited
Profit & Loss Statements” has the meaning set forth in Section 2.04(a).

 

“Principal Stockholder”
has the meaning set forth in the preamble.

 

“Privacy Policies”
means all published privacy policies and internal privacy policies and guidelines maintained or published by the Target Company or privacy
policies required by applicable Laws.

 

“Product Data”
has the meaning set forth in Section 5.12(d).

 

“Product Inventory”
has the meaning set forth in Section 5.12(g).

 

“Proxy Statement”
has the meaning set forth in Section 4.01(c).

 

“Purchase and Sale”
means the sale of the Target Companies’ Capital Stock in exchange for the consideration specified in Section 2.01.

 

“Purchase Price”
has the meaning set forth in Section 2.01.

 

“Purchase Price Allocation”
has the meaning set forth in Section 2.01.

"Real Property"
means the real property owned, leased or subleased, together with all buildings, structures and facilities located thereon.

 

“Red Cat” has
the meaning set forth in the preamble.

 

“Red Cat Adverse Recommendation
Change” has the meaning set forth in Section 8.07(a).

 

“Red Cat Board”
has the meaning set forth in the preamble.

 

“Red Cat Board Recommendation”
has the meaning set forth in Section 4.01(d).

 

“Red Cat Common Stock”
has the meaning set forth in Section 4.01(a).

 

“Red Cat Financial Statements”
has the meaning set forth in Section 4.07.

 

“Red Cat Preferred Stock”
has the meaning set forth in 4.01(a).

 

“Red Cat Stockholders”
has the meaning set forth in the preamble.

 

“Red Cat Stockholder
Proposals” has the meaning set forth in Section 4.01(c).

 

“Red Cat Stockholders
Meeting” has the meaning set forth in Section 4.01(d).

 

“Registration Rights
Agreement” has the meaning set forth in Section 8.20.

 

“Registration Statement”
has the meaning set forth in Section 8.01.

 

“Regulatory Approvals”
has the meaning set forth in Section 5.12(c).

 

“Representative(s)”
means, with respect to any Person, such Person’s directors, officers, employees, stockholders, investment bankers, attorneys, accountants,
consultants, or other agents or advisors.

 

“Requisite Red Cat Vote”
has the meaning set forth in Section 4.01.

 

“Schedule Update”
has the meaning set forth in Section 12.01(b).

 

“Schedules”
has the meaning set forth in Section 12.01(a).

 

“SEC” has the
meaning set forth in Section 4.01(c).

 

“SEC Reports”
has the meaning set forth in Section 4.07.

 

“Securities Act”
has the meaning set forth in Section 4.07.

 

“Special Economic Zone”
has the meaning set forth in Section 5.16(d).

 

“Statement of Disputed
Amounts” has the meaning set forth in Section 2.04(d).

 

“Straddle Period”
has the meaning set forth in Section 9.04.

 

“Subsidiary”
of a Person means a corporation, partnership, limited liability company, or other business entity of which a majority of the shares of
voting securities is at the time beneficially owned, or the management of which is otherwise controlled, directly or indirectly, through
one or more intermediaries, or both, by such Person.

 

“Superior Proposal”
means a bona fide written proposal with respect to either or both of the Target Companies or its Subsidiaries that such Party’s
board determines in good faith (after consultation with outside legal counsel and such Party’s financial advisor) is more favorable
to the holders of such Party’s common stock than the transactions contemplated by this Agreement, including without limitation from
a financial point of view, taking into account: (a) all financial considerations; (b) the identity of the third party making such Takeover
Proposal; (c) the anticipated timing, conditions (including any financing condition or the reliability of any debt or equity funding commitments)
and prospects for completion of such Takeover Proposal; (d) the other terms and conditions of such Takeover Proposal and the implications
thereof on such Party, including relevant legal, regulatory, and other aspects of such Takeover Proposal deemed relevant by such Party
(including any conditions relating to financing, stockholder approval, Regulatory Approvals, or other events or circumstances beyond the
control of the Party invoking the conditions). For the absence of doubt a Superior Proposal may arise from any offer for either or both
of the Target Companies that is lower than the Consideration or for such an offer that includes a larger cash payment at closing or thereafter
than as provided in this Agreement.

 

“Superior Proposal Notice
Period” has the meaning set forth in Section 8.07(d).

 

“Takeover Proposal”
means with respect to either or both of the Target Companies or its Subsidiaries, as the case may be, an inquiry, proposal, or offer from,
or indication of interest in making a proposal or offer by, any Person or group relating to any transaction or series of related transactions
(other than the transactions contemplated by this Agreement), involving any: (a) direct or indirect acquisition of assets of such Party
hereto or its Subsidiaries (including any voting equity interests of Subsidiaries, but excluding sales of assets in the ordinary course
of business) equal to 15% or more of the fair market value of such Party and its Subsidiaries’ consolidated assets or to which 15%
or more of such Party’s and its Subsidiaries’ net revenues or net income on a consolidated basis are attributable; (b) direct
or indirect acquisition of 15% or more of the voting equity interests of such Party hereto or any of its Subsidiaries whose business constitutes
15% or more of the consolidated net revenues, net income, or assets of such Party and its Subsidiaries, taken as a whole; (c) tender offer
or exchange offer that if consummated would result in any Person or group (as defined in Section 13(d) of the Exchange Act) beneficially
owning (within the meaning of Section 13(d) of the Exchange Act) 15% or more of the voting power of such Party hereto; (d) merger, consolidation,
other business combination, or similar transaction involving such Party hereto or any of its Subsidiaries, pursuant to which such Person
or group (as defined in Section 13(d) of the Exchange Act) would own 15% or more of the consolidated net revenues, net income, or assets
of such Party and its Subsidiaries, taken as a whole; (e) liquidation, dissolution (or the adoption of a plan of liquidation or dissolution),
or recapitalization or other significant corporate reorganization of such Party hereto or one or more of its Subsidiaries which, individually
or in the aggregate, generate or constitute 15% or more of the consolidated net revenues, net income, or assets of such Party and its
Subsidiaries, taken as a whole; or (f) any combination of the foregoing.

 

“Target Company”
has the meaning set forth in the preamble.

 

“Target Companies”
has the meaning set forth in the preamble.

 

“Target Company Contracts”
has the meaning set forth in Section 5.20.

 

“Target Companies’
Capital Stock” has the meaning set forth in the preamble.

 

“Target Company Plans”
has the meaning set forth in Section 5.18(c).

 

“Target Company Product(s)”
has the meaning set forth in Section 5.12(b).

 

“Taxes” means
all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration,
profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental,
stamp, occupation, premium, property (real or personal), Real Property gains, windfall profits, customs, duties or other taxes, fees,
assessments, or charges of any kind whatsoever, together with any interest, additions or penalties with respect thereto and any interest
in respect of such additions or penalties.

 

“Tax Claim”
has the meaning set forth in Section 9.07.

 

“Tax Liability”
has the meaning set forth in Section 8.02(b)(xvi).

 

“Tax Returns”
means any return, declaration, report, claim for refund, information return or statement, or other document relating to Taxes, including
any schedule or attachment thereto, and including any amendment thereof.

 

“Trading
Market” means any of the New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Select Market,
or the Nasdaq Global Market, or any successors of any of these exchanges on which the common stock is listed.

 

“Transaction
Documents” has the meaning set forth in Section 5.02.

 

“Transition
Services Agreement” has the meaning set forth in Section 11.01(i).

 

“Treasury Regulations”
means the Treasury regulations promulgated under the Code.

 

“UAV” means
an unmanned aerial vehicle.

 

“Unaudited Preliminary
Balance Sheet” has the meaning set forth in Section 2.04(a).

 

“Unusual Board”
has the meaning set forth in the preamble.

 

“Unusual Board Approval”
has the meaning set forth in Section 3.03(d).

 

“Unusual Capital Stock”
has the meaning defined in Section 2.01.

 

“Unusual Common Stock”
has the meaning set forth in Section 2.01.

 

“Unusual Disclosure Schedules”
has the meaning set forth in Article III.

 

“Unusual Equity Award
Plan” has the meaning set forth in Section 3.01(b).

 

“Unusual Equity Awards”
has the meaning set forth in Section 8.03(c).

 

“Unusual Financial Statements”
has the meaning set forth in Section 3.06.

 

“Unusual Indemnitee(s)”
has the meaning set forth in Section 7.03(a).

 

“Unusual Note”
has the meaning set forth in Section 2.01.

 

“Unusual Preferred Stock”
has the meaning set forth in Section 2.01.

 

“Unusual Subsidiary Securities”
has the meaning set forth in Section 8.03(b).

 

“Unusual Stockholders”
has the meaning set forth in Section 3.03(d).

 

“Unusual Subsidiaries”
has the meaning set forth in Section 3.01(c).

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the common stock are 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 are then listed or quoted as reported
by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. to 4:02 p.m. (EST), “Trading Day”), (b) if the common stock
are traded on OTCQB or OTCQX, the volume weighted average sales price of the common stock for such date (or the nearest preceding date)
on OTCQB or OTCQX as applicable, (c) if the common stock are not then listed or quoted for trading on OTCQB or OTCQX and if prices for
the common stock are then reported in the “Pink Open Market” or successor operated by OTC Markets Group, Inc. (or a similar
organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the common stock so reported,
or (d) in all other cases, the fair market value of a share of common stock as determined by an independent broker-dealer selected in
good faith by the Principal Stockholder and reasonably acceptable to Unusual, the fees and expenses of which shall be paid by the Principal
Stockholder.

 

“Working Capital”
has the meaning set forth in 2.4(b).

 

“Working Capital Calculations”
has the meaning set forth in Section 2.04(b)

 

ARTICLE II

PURCHASE AND SALE

 

(a)            
Section 2.01Purchase and Sale. At the Closing, Red Cat agrees to sell to Unusual 100% of the Target Companies’
Capital Stock owned by Red Cat in exchange for a Purchase Price of $18.0 million (the “Purchase Price”) consisting
of (a) $5.0 million in cash plus the amount of any Agreed Working Capital, if any (the “Cash Consideration”) at the
Closing (subject to adjustment as provided in Section 2.04(c) for the amount of working capital balance, if any, on the Closing Date)
(the “Final Working Capital”) and a $2.5 million Unusual Senior Secured Convertible Promissory Note (the “Unusual
Note”) which shall be in form and substance mutually acceptable to the Parties, and (b) $10.5 million of shares of Unusual’s
Series A Convertible Preferred Stock (the “Unusual Preferred Stock”) (the common stock issuable upon conversion of
the Unusual Note or the Unusual Preferred Stock and the Unusual Preferred Stock (the “Unusual Capital Stock”). The
Cash Consideration, Unusual Note and the Unusual Preferred Stock are collectively referred to herein as the “Consideration”.
The Certificate of Designation of the Unusual Preferred Stock shall be in form and substance mutually acceptable to the Parties. The Unusual
Note and the Unusual Preferred Stock shall be convertible into Unusual Common Stock, par value $0.01 per share (the “Unusual
Common Stock”) at the lower of (A) $4.00 (subject to adjustment for stock splits, stock dividends or similar events) or (B)
the Offering price. The Unusual Note and the Unusual Preferred Stock will contain 4.99/9.99% beneficial ownership blockers and other usual
and customary provisions, including price protection for lower priced issuances for so long as the Unusual Note or the Unusual Preferred
Stock remain outstanding. The allocation of the Purchase Price as between the acquisition of Fat Shark Holdings, Ltd and the acquisition
of Rotor Riot (the “Purchase Price Allocation”) shall be mutually agreed upon prior to the Closing (as defined below)
in accordance with the following procedures. Within 45 days following the Closing, Red Cat shall provide Unusual with a detailed written
statement with its proposed calculation of the Purchase Price Allocation. Unusual shall have 15 days after its receipt of the proposed
Purchase Price Allocation to agree or disagree with such calculation. If Unusual disagrees with such calculation and Unusual and Red Cat
are unable to finally resolve such dispute within 30 days after Unusual’s receipt of the Purchase Price Calucation, then the dispute
shall be resolved by a nationally-recognized accounting firm that is reasonably acceptable to Unusual and Red Cat (the “Independent
Accounting Firm”).

 

Section 2.02Closing. Upon the terms
and subject to the conditions set forth herein, the closing of the Purchase and Sale (the “Closing”)
will take place at 11:30 a.m. EST, or as soon as commercially practicable unless this Agreement has been terminated pursuant to its terms
or unless another time or date is agreed to in writing by the Parties hereto. The Closing shall take place at the offices of Nason, Yeager,
Gerson, Harris & Fumero, P.A., or remotely by exchange of documents and signatures (or their electronic counterparts), unless another
place is agreed to in writing by the Parties. The actual date of the Closing is referred to as the “Closing Date.”
At the Closing, Red Cat shall sell to Unusual 100% of the Target Companies’ Capital Stock, free and clear of all Liens, in return
for the Consideration. In addition, as of the Closing, the officers and directors or manager of the Target Companies shall be as reflected
on Schedule 2.02.

 

Section 2.03Escrow Shares.

 

(b)            
At the Closing, the Principal Stockholder shall deliver to the Escrow Agent, 450,000 shares of Unusual Common Stock with
an agreed upon value of $1.8 million (the “Escrow Shares”). The Escrow Shares shall provide security for Red Cat’s
and the Principal Stockholder’s indemnification obligations in Article VII including, without limitation, in connection with a breach
of any representation and warranty made by Red Cat or the Principal Stockholder.

 

(c)            
Any claim against the Escrow must be made within 9 months following Closing. If a claim is timely made the Escrow Agent
shall continue to hold the Escrow Shares as provided in the Escrow Agreement.

 

Section 2.04Post Closing Audit; Purchase
Price Adjustment; Dispute.

 

(a)            
No more than 10 and no later than 3 business days prior to the Closing Date, Red Cat shall prepare and deliver to Unusual
(i) unaudited preliminary balance sheets of the Target Companies (the “Unaudited Preliminary Balance Sheets”) as of
the Closing Date and a preliminary unaudited profit and loss statement for the period ending on the Closing Date (the “Preliminary
Unaudited Profit & Loss Statements”), in accordance GAAP (collectively, the “Closing Trial Balance”),
(ii) a statement (the “Estimated Working Capital Statement”) setting forth Red
Cat’s reasonable and good faith estimate of the Closing Date Working Capital and the components and calculations thereof in reasonable
detail, by reference to the foregoing Closing Trial Balance and (iii) a statement setting forth the calculation of the amount by which
the estimated Closing Date Working Capital as shown on the Estimated Working Capital Statement (the “Estimated Working Capital”)
either exceeds the Agreed Working Capital (such amount, the “Estimated Working Capital
Excess Amount”) or is less than the Agreed Working Capital (such amount, the “Estimated
Working Capital Deficiency Amount”).

 

(b)            
If there was an Estimated Working Capital Excess Amount or an Estimated Working Capital Deficiency Amount, at the Closing
the aggregate Consideration shall be adjusted upward or downward dollar-for-dollar as appropriate. If there is an Estimated Working Capital
Excess Amount, the amount shall be paid to Red Cat as additional Cash Consideration at the Closing. If there is an Estimated Working Capital
Deficiency Amount, the amount shall first be credited to the Unusual Note amount and any additional amount applied as a reduction in the
Cash Consideration.

 

(c)            
Within 45 days after the Closing Date or as soon thereafter as is reasonably practical using commercially reasonable efforts,
Unusual will prepare and deliver to Red Cat (i) closing balance sheets of each of the Target Companies as of the Closing Date in accordance
with GAAP (the “Closing Date Balance Sheets”), (ii) the calculations (the “Working Capital Calculations”)
of the Working Capital of each of the Target Companies (the “Working Capital”) as of the Closing Date, and (iii)
a statement setting forth the calculation of the actual Closing Date Working Capital
of both Target Companies. The same procedure outlined in Section 2.04(a) shall be followed in paying Red Cat the actual excess of the
Closing Date Working Capital over the Estimated Closing Date Working Capital or in crediting Unusual the amount by which the actual Closing
Date Working Capital deficiency exceeds the Estimated Working Capital.

 

(d)            
If Red Cat disputes the Closing Date Balance Sheets or the Closing Date Working Capital as set forth in the Working Capital
Calculations, then, within 45 days following receipt of the deliverables specified in Section 2.04(c), Red Cat shall give Unusual a detailed
written statement identifying all disputed items (collectively, the “Disputed Amounts”) (the “Statement of
Disputed Amounts”). Unusual and Red Cat shall use reasonable efforts to resolve any such dispute. If Unusual and Red Cat are
unable to finally resolve such dispute within 30 days after Unusual’s receipt of Red Cat’s Statement of Disputed Amounts,
then the dispute shall be resolved by the Independent Accounting Firm. Unusual and Red Cat shall retain the Independent Accounting Firm
within 30 days of the end of the 30 day period for Unusual and Red Cat to resolve their dispute. The determination of the Independent
Accounting Firm shall be made as promptly as practicable and shall be final and binding on Unusual and Red Cat. The fees and expenses
of the Independent Accounting Firm shall be allocated 50% to Unusual and Red Cat, provided that if the disputed amount as finally determined
by the Independent Accounting Firm equals or exceeds 25% of the Closing Date Balance Sheets amount prepared by Unusual, Unusual shall
be responsible for 100% of the Independent Accounting Firm fees.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF UNUSUAL

 

In order to induce Red Cat to
enter into this Agreement and to consummate the transactions contemplated hereby, Unusual makes the representations and warranties set
forth below to Red Cat and the Principal Stockholder which representations and warranties shall be true and correct on the Effective Date
and as of the Closing Date, except as set forth in a Disclosure Schedule delivered by Unusual to
Red Cat and the Principal Stockholder:

 

Section 3.01Organization.

 

(a)            
Organization; Standing and Power. Unusual and each of its Subsidiaries is a corporation, limited liability company,
or other legal entity duly organized, validly existing, and in good standing (to the extent that the concept of “good standing”
is applicable in the case of any jurisdiction outside the United States) under the Laws of its jurisdiction of organization, and has the
requisite corporate, limited liability company, or other organizational, as applicable, power and authority to own, lease, and operate
its assets and to carry on its business as now conducted. Each of Unusual and its Subsidiaries is duly qualified or licensed to do business
as a foreign corporation, limited liability company, or other legal entity and is in good standing (to the extent that the concept of
“good standing” is applicable in the case of any jurisdiction outside the United States) in each jurisdiction where the character
of the assets and properties owned, leased, or operated by it or the nature of its business makes such qualification or license necessary,
except where the failure to be so qualified or licensed or to be in good standing, would not reasonably be expected to have, individually
or in the aggregate, an Material Adverse Effect.

 

(b)            
Charter Documents. The Certificate of Incorporation and By-Laws of Unusual as most recently provided to Red Cat are
true, correct, and complete copies of such documents as in effect as of the Effective Date. Unusual has delivered or made available to
Red Cat a true and correct copy of the Charter Documents of each of Unusual’s Subsidiaries. Neither Unusual nor any of Unusual’s
Subsidiaries is in violation of any of the provisions of its Charter Documents.

 

(c)            
Subsidiaries. Schedule 3.01(c) lists each of Unusual’s Subsidiaries as of the Effective Date
and its place of organization. Schedule 3.01(c) sets forth, for each Subsidiary that is not, directly or indirectly, wholly-owned
by Unusual: (i) the number and type of any capital stock of, or other equity or voting interests in, such Subsidiary that is outstanding
as of the Effective Date; and (ii) the number and type of shares of capital stock of, or other equity or voting interests in, such Subsidiary
that, as of the Effective Date, are owned, directly or indirectly, by Unusual. All of the outstanding shares of capital stock of, or other
equity or voting interests in, each of Unusual’s Subsidiaries that is owned directly or indirectly by Unusual have been validly
issued, were issued free of pre-emptive rights, are fully paid and non-assessable, and are free and clear of all Liens and restrictions,
including any restriction on the right to vote, sell, or otherwise dispose of such capital stock or other equity or voting interests,
except for any Liens: (A) imposed by applicable securities Laws; or (B) arising pursuant to the Charter Documents of any non-wholly-owned
Subsidiary of Unusual. Except for the capital stock of, or other equity or voting interests in, its Subsidiaries, Unusual does not own,
directly or indirectly, any capital stock of, or other equity or voting interests in, any Person.

 

Section 3.02Capital Structure.

 

(a)            
Capital Stock. The authorized capital stock of Unusual consists of: (i) 90,000,000 shares of Unusual Common Stock;
and (ii) 10,000,000 shares of preferred stock, $0.01 par value per share, of Unusual (the “Unusual Preferred Stock”,
and together with the Unusual Preferred Stock, the “Unusual Capital Stock”). (A) 8,184,500 shares of Unusual Common Stock
were issued and outstanding; (B) no shares of Unusual Common Stock were issued and held by Unusual in its treasury; and (C) no shares
of Unusual Preferred Stock are issued and outstanding. All of the outstanding shares of capital stock of Unusual are, and all shares of
capital stock of Unusual which may be issued as contemplated or permitted by this Agreement will be, when issued, duly authorized, validly
issued, fully paid, and non-assessable, and not subject to any pre-emptive rights. None of Unusual’s Subsidiaries own any shares
of Unusual Common Stock. The Unusual Common Stock and Unusual Preferred Stock represents One Hundred Percent (100%) of the issued and
outstanding shares of capital stock of Unusual. Unusual has no investment or equity interest in any other Person. None of the Unusual
Capital Stock has been, or will be, issued in violation of any law, preemptive right, right of first refusal or similar agreement. Neither
the Unusual Notes nor the Unusual Preferred Stock to be issued to Red Cat has been, or will be, issued in violation of any federal or
state law, rule, regulation or order, preemptive right, right of first refusal or similar agreement. No written or oral agreement or understanding
with respect to the disposition of the Unusual Capital Stock, or the Unusual Notes, or any rights therein, other than this Agreement,
exists.

 

(b)            
Rights, Warrants, Options. Except as set forth on Schedule 3.02(b), and as contemplated to be issued or sold pursuant
to the Registration Statement, there are no options, warrants or other rights, arrangements or commitments of any character to which Unusual
is a party or by which Unusual is bound relating to Unusual’s Capital Stock, or obligating Unusual to issue or sell any shares of
Unusual Capital Stock, or other equity interests in, Unusual or any of its Subsidiaries.

 

Section 3.03Authority; Non-Contravention;
Governmental Consents; Board Approval. 

 

(a)            
Authorization. Unusual has all requisite right, power and authority to execute and deliver this Agreement, the Transaction
Documents to which it is a party and consummate the transactions contemplated thereby. As used in this Agreement, “Transaction
Documents” means this Agreement, the Unusual Notes, the Unusual Preferred Stock, Registration Rights Agreement, the Escrow Agreement,
the Transition Services Agreement and the Non-Competition Agreement. The execution and delivery of this Agreement, the Transaction Documents
to which it is a party by Unusual and the consummation by Unusual of the transactions contemplated hereby and thereby have been duly authorized
by all requisite corporate or other action. This Agreement and has been duly executed and delivered by Unusual and constitutes the legal,
valid and binding obligation of Unusual, enforceable in accordance with its terms except as such enforceability may be limited by applicable
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar Laws affecting creditors’ rights generally
and subject to the effect of general principles of equity, whether considered in a proceeding in equity or at law.

 

(b)            
Non-Contravention. The execution, delivery, and performance of this Agreement by Unusual, and the consummation by
Unusual of the transactions contemplated by this Agreement, the Registration Rights Agreement, the Escrow Agreement, the Unusual Notes
and the Unusual Preferred Stock, including the Purchase and Sale, do not and will not: (i) contravene or conflict with, or result in any
violation or breach of Unusual’s Charter Documents; (ii) assuming that all Governmental Consents have been obtained or made, conflict
with or violate any Law applicable to Unusual, any Unusual’s Subsidiaries, any of Unusual’s stockholders or any of their respective
properties or assets; (iii) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would
become a default) under, result in Unusual’s or any of Unusual’s Subsidiaries’ loss of any benefit or the imposition
of any additional payment or other Liability under, or alter the rights or obligations of any third party under, or give to any third
party any rights of termination, amendment, acceleration, or cancellation, or require any Governmental Consent under, any Material Contract
to which Unusual or any of Unusual’s Subsidiaries or Unusual’s stockholders is a party or otherwise bound as of the Effective
Date; or (iv) result in the creation of a Lien (other than Permitted Liens) on any of the properties or assets of Unusual or any of Unusual’s
Subsidiaries, except, in the case of each of clauses (ii), (iii), and (iv), for any conflicts, violations, breaches, defaults, loss of
benefits, additional payments or other Liabilities, alterations, terminations, amendments, accelerations, cancellations, or Liens that,
or where the failure to obtain any Governmental Consents, in each case, would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

 

(c)            
Governmental Consents. No consent, approval, order, or authorization of, or registration, declaration, or filing
with, or notice to (any of the foregoing being a “Governmental Consent”), any Governmental Authority is required to
be obtained or made by Unusual in connection with the execution, delivery, and performance by Unusual of this Agreement, the Registration
Rights Agreement, the Escrow Agreement, the Unusual Notes and the Unusual Preferred Stock, or the consummation by Unusual of the Purchase
and Sale and other transactions contemplated hereby, (excluding the Offering, as hereinafter defined, the Nasdaq listing), except for
such other Consents which if not obtained or made would not have, individually or in the aggregate, a Material Adverse Effect.

 

(d)            
Unusual Board Approval. The Unusual Board, by resolutions duly adopted by a unanimous vote at a meeting of the Unusual
Board duly called and held and, not subsequently rescinded or modified in any way, has: (i) determined that this Agreement and the transactions
contemplated hereby, including the Purchase and Sale, upon the terms and subject to the conditions set forth herein, are in the best interests
of Unusual; (ii) approved this Agreement, including the execution, delivery, and performance thereof, and the consummation of the transactions
contemplated by this Agreement, including the Purchase and Sale, the Offering, the Registration Rights Agreement, the Escrow Agreement,
the Unusual Notes and the Unusual Preferred Stock, upon the terms and subject to the conditions set forth herein (“Unusual Board
Approval”).

 

Section 3.04Brokers. Unusual has
not employed any financial advisor, broker or finder and has not incurred and will not incur any broker’s, finder’s, investment
banking or similar fees, commissions or expenses in connection with the transactions contemplated by this Agreement which would be payable
by Red Cat. Unusual will pay the discounts and other expenses of the Offering.

 

Section 3.05Legal Proceedings. There
is no action, claim, dispute, suit, investigation or proceeding pending or, to Unusual’s knowledge, threatened against Unusual or
any of its properties or rights, nor any judgment, order, injunction or decree before any court, arbitrator or administrative or governmental
body which might adversely affect or restrict the ability of Unusual to consummate the transactions contemplated by this Agreement including
the Purchase and Sale or to perform its obligations thereunder.

 

Section 3.06 Financial Statements.
Unusual has delivered to the other Parties a true and complete copy of the audited balance sheet of Unusual and each of Unusual’s
Subsidiaries as of December 31, 2021 and 2020, and the audited consolidated profit and loss statement, statement of cash flow and statement
of changes in stockholders’ equity of Unusual and each of Unusual’s Subsidiaries for the period ending on such dates and unaudited
financials for the three and nine months periods ended September 30, 2022, certified by Unusual’s chief executive officer, without
giving effect to any of the transactions contemplated by this Agreement (collectively, the “Unusual Financial Statements”).
The Unusual Financial Statements: (a) have been prepared in accordance with the books of account and records of Unusual; (b) fairly present,
and are true, correct and complete statements in all material respects of the consolidated financial condition of Unusual and the results
of its operations at the dates and for the periods specified in those statements; and (c) have been prepared in accordance with GAAP consistently
applied with prior periods. The Unusual Financial Statements have been prepared in accordance with the books of account and records of
Unusual in accordance with GAAP and fairly present and are true and correct in all material respects of the consolidated financial condition
of Unusual as the Closing Date.

 

Section 3.07Absence of Undisclosed Liabilities.
Other than Liabilities incurred in the ordinary course of business consistent with past practice, Unusual has no debts, claims, Liabilities,
commitments or obligations of any nature whatsoever, whether accrued, absolute, contingent or otherwise, other than as provided for in
this Agreement or disclosed and accrued for or reserved against in the Unusual Financial Statements. There is no basis for assertion against
Unusual of any such debt, claim, Liability, commitment, obligation or loss.

 

Section 3.08Registration Statement.
The Registration Statement has been prepared by Unusual and does not and will not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

Section 3.09Employment Compliance.
In the last 5 years:

 

(a)            
to the Knowledge of Unusual, no allegations of sexual harassment, sexual misconduct, sexual, gender, racial, religious other discrimination
which is in violation of applicable Laws, o retaliation or policy violations have been made involving any current or former director,
officer, manager, employee or independent contractor of Unusual;

 

(b)            
Unusual has not entered into any settlement agreement related to allegations referred to in Section 3.09(a); and

 

(c)            
no Legal Proceedings are pending or, to the Knowledge of Unusual, threatened related to allegations referred to in Section 3.09(a)
against Unusual.

 

Section 3.10Accuracy of Information Furnished.
No representation, statement or information contained in this Agreement (including the various exhibits attached hereto) or any agreement
executed in connection herewith or in any certificate or other document delivered pursuant hereto or thereto or made or furnished to Red
Cat or Principal Stockholder or its representatives by Unusual, contains or shall contain any untrue statement of a material fact or omits
or shall omit any material fact necessary to make the information contained herein and therein, in the light of the circumstances under
which they were made, not misleading. Copies of all documents listed or described in the various exhibits attached hereto and provided
by Unusual to Red Cat and Principal Stockholder are true, accurate and complete.

 

Section 3.11Rule 506(d) Bad Actor Disqualification
Representations and Covenants.

 

(a)            
No Disqualification Events. Neither Unusual, nor any of its predecessors, Affiliates, any manager, executive officer, other
officer of the Unusual or any Subsidiary participating in the offering, any beneficial owner (as that term is defined in Rule 13d-3 under
the Exchange Act) of 20% or more of Unusual’s outstanding voting equity securities, calculated on the basis of voting power, nor
any promoter (as that term is defined in Rule 405 under the Securities Act) connected with Unusual in any capacity as of the date of this
Agreement and on the Closing Date (each, a “Company Covered Person” and, together, “Company Covered Persons”)
is or has prior to the Effective Date been subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i)
to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule
506(d)(2) or (d)(3). Unusual has exercised reasonable care to determine: (i) the identity of each person that is a Company Covered Person;
and (ii) whether any Company Covered Person is subject to a Disqualification Event. Unusual has complied with its disclosure obligations
under Rule 506(e).

 

(b)            
Other Covered Persons. Unusual is not aware of any person (other than any Company Covered Person) who has been or will be
paid (directly or indirectly) remuneration in connection with the sale of the Unusual Capital Stock who is subject to a Disqualification
Event (each, an “Other Covered Person”).

 

(c)            
Reasonable Notification Procedures. With respect to each Company Covered Person, Unusual has established procedures reasonably
designed to ensure that Unusual receives notice from each such Company Covered Person of (A) any Disqualification Event relating to that
Company Covered Person, and (B) any event that would, with the passage of time, become a Disqualification Event relating to that Company
Covered Person; in each case occurring up to and including the Closing Date.

 

(d)            
Notice of Disqualification Events. Unusual will notify Red Cat immediately in writing upon becoming aware of (A) any Disqualification
Event relating to any Company Covered Person and (B) any event that would, with the passage of time, become a Disqualification Event relating
to any Company Covered Person and/or Other Covered Person.

 

Section 3.12The Offering. Unusual
has entered into a non-binding letter of intent with an underwriter which has agreed to underwrite the Offering. A copy of the letter
of intent is annexed as Schedule 3.12 hereto.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES REGARDING RED CAT

 

In order to induce Unusual to
enter into this Agreement and to consummate the transactions contemplated hereby, Red Cat and the Principal Stockholder, jointly and severally,
make the representations and warranties set forth below to Unusual which representations and warranties shall be true and correct as of
the Effective Date and the Closing Date, except as set forth in a Disclosure Schedule attached to
this Agreement. All references in this Article IV to either Target Company shall include any Subsidiaries of such Target Company.

 

Section 4.01Authority; Non-Contravention;
Governmental Consents; Board Approval; Anti-Takeover Statutes. 

 

(a)            
Authority. Red Cat has all requisite corporate power and authority to enter into and to perform its obligations under this
Agreement, subject to approval of this Agreement by the affirmative vote or consent of the holders of a majority of the outstanding disinterested
shares of Red Cat common stock (the “Red Cat Common Stock”) (including the shares of Red Cat Preferred Stock (“Red
Cat Preferred Stock”) voting on an as-converted basis) (the “Requisite Red Cat Vote”), to consummate the
transactions contemplated by this Agreement. The execution and delivery of this Agreement by Red Cat and the consummation by Red Cat a
of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Red Cat and no other
corporate proceedings on the part of Red Cat are necessary to authorize the execution and delivery of this Agreement or to consummate
the Purchase and Sale and the other transactions contemplated hereby, subject only, in the case of consummation of the Purchase and Sale,
to the receipt of the Requisite Red Cat Vote. The Requisite Red Cat Vote is the only vote or consent of the holders of any class or series
of Red Cat’s capital stock necessary to approve this Agreement and consummate the Purchase and Sale and the other transactions contemplated
hereby. This Agreement has been duly executed and delivered by Red Cat and, assuming due execution and delivery by Unusual and Principal
Stockholder, constitutes the legal, valid, and binding obligation of Red Cat, enforceable against Red Cat in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency, moratorium, and other similar Laws affecting creditors’
rights generally and by general principles of equity.

 

(b)            
Non-Contravention. The execution, delivery, and performance of this Agreement by Red Cat, and the consummation by Red Cat
of the transactions contemplated by this Agreement, including the Purchase and Sale, do not and will not: (i) contravene or conflict with,
or result in any violation or breach of, the Charter Documents of Red Cat or any of the Target Companies; (ii) assuming that all Governmental
Consents have been obtained or made and, in the case of the consummation of the Purchase and Sale, obtaining the Requisite Red Cat Vote
and assuming the absence of a Superior Proposal, conflict with or violate any Law applicable to Red Cat, any of its Subsidiaries, or any
of their respective properties or assets; (iii) result in any breach of or constitute a default (or an event that with notice or lapse
of time or both would become a default) under, result in any of Red Cat’s or the Target Companies’ loss of any benefit or
the imposition of any additional payment or other Liability under, or alter the rights or obligations of any third party under, or give
to any third party any rights of termination, amendment, acceleration, or cancellation, or require any Governmental Consent under, any
Material Contract to which any of the Target Companies are a party or otherwise bound as of the Effective Date; or (iv) result in the
creation of a Lien (other than Permitted Liens) on any of the properties or assets of any of the Target Companies, except, in the case
of each of clauses (ii), (iii), and (iv), for any conflicts, violations, breaches, defaults, loss of benefits, additional payments or
other liabilities, alterations, terminations, amendments, accelerations, cancellations, or Liens that, or where the failure to obtain
any Consents, in each case, would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(c)            
Governmental Consents. No Governmental Consent by any Governmental Authority is required to be obtained or made by
Red Cat or any of the Target Companies in connection with the execution, delivery, and performance by Red Cat of this Agreement or the
consummation by Red Cat of the Purchase and Sale and other transactions contemplated hereby (excluding any implementation of the Red Cat
Vote and assuming the absence of a Superior Proposal, other than the Closing of the Purchase and Sale), except for: (i) the filing with
the Securities and Exchange Commission (“SEC”) of (A) the Proxy Statement in preliminary and definitive form (“Proxy
Statement”) in accordance with the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (B)
other filings required by applicable securities Laws, and (C) such reports under the Exchange Act as may be required in connection with
this Agreement, and the other transactions contemplated by this Agreement; and (ii) such other Governmental Consents which if not obtained
or made would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(d)            
Red Cat Board Approval. The Red Cat Board, by resolutions duly adopted by a unanimous vote (exclusive of the Principal Stockholder
who shall have abstained) at a meeting of the Red Cat Board duly called and held and, not subsequently rescinded or modified in any way,
has: (i) determined that this Agreement and the transactions contemplated hereby, including the Purchase and Sale, upon the terms and
subject to the conditions set forth herein, are in the best interests of, Red Cat and its stockholders (“Red Cat Stockholders”);
(ii) approved this Agreement, including the execution, delivery, and performance thereof, and the consummation of the transactions contemplated
by this Agreement, including the Purchase and Sale, upon the terms and subject to the conditions set forth herein; (iii) directed that
this Agreement be submitted to a vote of the disinterested Red Cat Stockholders for adoption at the Red Cat Stockholders Meeting (the
“Red Cat Stockholders Meeting”); and (iv) resolved to recommend that the Red Cat Stockholders vote in favor of adoption
of this Agreement and the Purchase and Sale in accordance with the NRS (collectively, the “Red Cat Board Recommendation”).

 

(e)            
Anti-Takeover Statutes. No “fair price,” “moratorium,” “control share acquisition,”
“supermajority,” “affiliate transactions,” “business combination,” or other similar anti-takeover
statute or regulation enacted under any Laws applicable to Red Cat is applicable to Red Cat, or any of the other transactions contemplated
by this Agreement (“Anti-Takeover Statues”).

 

Section 4.02Brokers. Neither Red
Cat, the Target Companies nor the Principal Stockholder has employed any financial advisor, broker or finder and each has not incurred
and will not incur any broker’s, finder’s, investment banking or similar fees, commissions or expenses, in connection with
the transactions contemplated by this Agreement.

 

Section 4.03Capitalization. Red
Cat is and will immediately prior to the Closing be the legal, record and beneficial owner of 100% of the Target Companies’ Capital
Stock, and such Target Companies’ Capital Stock is and will immediately prior to the Closing be owned free and clear of any Liens,
whatsoever, claims or rights under any voting trust agreements, proxies, stockholder agreements or other agreements. At the Closing, Red
Cat will transfer and convey and Unusual will acquire good and valid title to the Target Companies’ Capital Stock free and clear
of all Liens. No written or oral agreement or understanding with respect to the disposition of the Target Companies’ Capital Stock
or any rights therein, other than this Agreement, exists.

 

Section 4.04Rights, Warrants, and Options.
Other than this Agreement, there are no options, warrants or other rights, arrangements or commitments of any character to which Red Cat
is a party or by which Red Cat is bound relating to the Target Companies’ Capital Stock or obligating Red Cat to sell, pledge or
otherwise dispose of any shares, or other equity interests in either of the Target Companies.

 

Section 4.05Legal Proceedings. There
is no Legal Proceeding pending or, to Red Cat’s Knowledge, threatened against Red Cat, the Target Companies or any of their respective
properties or rights, nor any judgment, order, injunction or decree before any Governmental Authority which would (i)adversely affect
or restrict the ability of Red Cat to consummate the transactions contemplated by this Agreement, including the Purchase and Sale or to
perform their respective obligations thereunder, or (ii) could reasonably be expected to result in Material Adverse Effect on either of
the Target Companies.

 

Section 4.06Intentionally omitted.

 

Section 4.07SEC Reports; Financial Statements.
Since April 1, 2021, Red Cat has filed all reports, schedules, forms, Registration Statements and other documents required to be filed
by Red Cat under the Securities Act of 1933, as amended (the “Securities Act”) and the Exchange Act including pursuant
to Section 13(a) for the 2 years preceding the Effective Date and as the Closing Date (or such shorter period as Red Cat was required
by Law to file such documents) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Reports”). As of their respective dates, the Target Company information
in the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable,
and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the Target Company Information statements contained therein, in the light of the circumstances
under which they were made, not misleading. Except as disclosed on Schedule 4.07, the financial statements of Red Cat (the
“Red Cat Financial Statements”) included in the SEC Reports comply in all material respects with the applicable accounting
requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. The Target Company information
contained in the Red Cat Financial Statements have been prepared in accordance with United States generally accepted accounting principles
applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in the Red
Cat Financial Statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by
GAAP, and fairly present in all material respects the financial position of Red Cat and its consolidated Subsidiaries as of and for the
dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to
normal, immaterial, year-end audit adjustments.

 

Section 4.08Intentionally Omitted.

 

Section 4.09Intentionally Omitted.

 

Section 4.10Investment Intent. The
Consideration consisting of the Unusual Note and Unusual Preferred Stock to be received by Red Cat hereunder will be acquired for investment
and only for Red Cat’s own account, not as a nominee or agent, and not with a view to the public resale or distribution thereof
within the meaning of the Securities Act, and Red Cat has no present intention of publicly selling, granting any participation in, or
otherwise distributing the same, other than as contemplated in the Registration Rights Agreement, the Registration Statement, the Offering
and in connection with any distribution of the Unusual Note or the Unusual Capital Stock to the stockholders of Red Cat by dividend or
distribution; provided, that, by making the representations herein, other than as set forth herein, Red Cat does not agree
to hold any of the Unusual Note or the Unusual Capital Stock for any minimum period of time and reserves the right at all times to sell
or otherwise dispose of all or any part of such Unusual Note or the Unusual Capital Stock pursuant to an effective Registration Statement
under the Securities Act or under an exemption from such registration (provided that Red Cat complies with the conditions thereof)
and in compliance with applicable federal and state securities Laws.

 

Section 4.11Investment Experience.
Red Cat is an experienced investor and acknowledges and represents that: (a) it is able to fend for itself; (b) can bear the economic
risk of its investment in the Unusual Note or the Unusual Capital Stock; and (c) has such knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risk of its investment in the Unusual Note or the Unusual Capital Stock.

 

Section 4.12Accredited Investor Status.
Red Cat is an “accredited investor” within the meaning of Regulation D promulgated under the Securities Act (“Accredited
Investor”), as amended.

 

Section 4.13Status of the Unusual Note and
the Unusual Capital Stock. Red Cat understands and agrees as follows: (a) the Unusual Note and the Unusual Capital Stock constitute
“restricted securities” under the Securities Act inasmuch as they are being acquired from Unusual in a transaction not involving
a public offering; (b) subject to limited exceptions, the Unusual Note and Unusual Capital Stock may not be resold, disposed of or transferred,
in whole or in part, without registration under the Securities Act; and (c) it must bear the economic risk of this investment indefinitely
unless the Unusual Note and Unusual Capital Stock are registered pursuant to the Securities Act, or an exemption from registration is
available. Red Cat understands that the Unusual Common Stock underlying the Unusual Note shall be registered for public sale in the Offering
and it is receiving demand registration rights from the Unusual Common Stock underlying the Unusual Preferred Stock.

 

Section 4.14Legend. Red Cat acknowledges
that all certificates or other instruments representing the Unusual Note and Unusual Capital Stock subject to this Agreement may, at the
option of Unusual, bear a restrictive legend substantially to the following effect:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND SUCH
SECURITIES MAY NOT BE SOLD, OTHERWISE DISPOSED OF OR TRANSFERRED, IN WHOLE OR IN PART, EXCEPT PURSUANT TO A REGISTRATION STATEMENT RELATING
THERETO UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS
OR SOLD, TRANSFERRED OR ASSIGNED 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.

 

Section 4.15Information Supplied.
None of the information supplied or to be supplied by or on behalf of Red Cat for inclusion in the Registration Statement (exclusive of
information concerning the Target Companies) or any final prospectus with respect to the Offering shall, at the time the Registration
Statement and each amendment or supplement thereto, if any, becomes effective under the Securities Act, or in the case of any final prospectus,
filed with the SEC, at the time it is filed with the SEC, contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES REGARDING THE TARGET COMPANIES

 

In order to induce Unusual to
enter into this Agreement and to consummate the transactions contemplated hereby, the Principal Stockholder makes the representations
and warranties set forth below to Unusual which representations and warranties shall be true and correct as of the Effective Date and
the Closing Date, except as otherwise noted herein or as set forth in the attached Disclosure Schedules. All references in this Article
V to either Target Company shall include any Subsidiaries of such Target Company.

 

Section 5.01Organization. Acquisition
is a corporation duly organized and validly existing under the Laws of the State of Nevada. Rotor Riot is a limited liability company
duly organized and validly existing under the Laws of the State of Ohio. Each Target Company is duly qualified or licensed to do business
in each jurisdiction where the character of the properties owned or operated by it or the nature of its business makes such qualification
or licensing necessary. Each Target Company has all requisite right, power and authority to (a) own and operate its properties, (b) conduct
its business as presently conducted in accordance with local business practices and (c) engage in and consummate the transactions contemplated
hereby. Each Target Company is not in default under, or breach of, its Charter Documents.

 

Section 5.02Authorization; Enforceability.
Each Target Company has all requisite right, power and authority to execute and deliver this Agreement, the Transaction Documents to which
it is a party and consummate the transactions contemplated thereby. The execution and delivery of this Agreement, the Transaction Documents
to which it is a party by each Target Company and the consummation by each Target Company of the transactions contemplated hereby and
thereby have been duly authorized by all requisite corporate or other action. This Agreement has been duly executed and delivered by each
Target Company and constitutes the legal, valid and binding obligation of such Party, enforceable in accordance with its terms except
as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other
similar Laws affecting creditors’ rights generally and subject to the effect of general principles of equity, whether considered
in a proceeding in equity or at law.

 

Section 5.03No Consent, Violation or Conflict.
With respect to each Target Company, the execution and delivery of this Agreement and the Transaction Documents to which it is a party
and the consummation of the transactions contemplated hereby and thereby, and compliance by each Target Company with the provisions hereof,
(a) do not and will not violate or, if applicable, conflict with any provision of Law, or any provision of such Target Company’s
Charter Documents, and (b) do not and will not, with or without the passage of time or the giving of notice, result in the breach of,
cause the acceleration of performance or constitute a default or require any consent under, or result in the creation of any Lien upon
any property or assets of such Target Company pursuant to any instrument or agreement to which such Target Company is a party or by which
such Target Company’s properties may be bound or affected.

 

Section 5.04Regulatory Permits.
Each Target Company and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate Governmental Authority
necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could
not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither Target Company
nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. Neither Target
Company is in conflict with, or in default or violation of any Material Permit.

 

Section 5.05Brokers. No Target Company
has incurred or will incur any broker’s, finder’s, investment banking or similar fees, commissions or expenses in connection
with the transactions contemplated by this Agreement.

 

Section 5.06Organizational Documents and
Corporate Records. A true and complete copy of the Charter Documents of each Target Company, as amended, will be delivered to
Unusual prior to the Closing Date. The minute book of each Target Company (the “Corporate Minute Books”) will also
be delivered to Unusual prior to the Closing Date. Such Corporate Minute Books contain complete and accurate records of all meetings and
other corporate actions of the board of directors and/or the stockholders or members, as applicable, of each Target Company from the date
of its incorporation or formation to the Effective Date. All matters requiring the authorization or approval of the board of directors
and/or the stockholders or members of each Target Company have been duly and validly authorized and approved by them.

 

Section 5.07Capitalization. Set
forth on Schedule 5.07 is the capital structure of each Target Company. All of the Target Companies’ Capital Stock
issued prior to the Closing Date has been and will be duly authorized and are and will be validly issued, fully paid and non-assessable.
Red Cat is and immediately prior to the Closing will, directly or indirectly, be the legal, record and beneficial owner of 100% of the
Target Companies’ Capital Stock, and such Target Companies’ Capital Stock is and immediately prior to the Closing will be
owned free and clear of any Liens whatsoever, including, without limitation, claims or rights under any voting trust agreements, stockholder
agreements, limited liability company agreements or other agreements. The Target Companies’ Capital Stock represents 100% of the
issued and outstanding shares and/or equity interests of each Target Company. Each Target Company has no investment or equity interest
in any other Person. None of the Target Companies’ Capital Stock was or will be issued in violation of any law, preemptive right,
right of first refusal or similar agreement. No written or oral agreement or understanding with respect to the disposition of the Target
Companies’ Capital Stock or any rights therein, other than this Agreement, exists.

 

Section 5.08Rights, Warrants, and Options.
There are no options, warrants or other rights, arrangements or commitments of any character to which either Target Company is a party
or by which either Target Company is bound relating to the issued or unissued securities of such Target Company or obligating such Target
Company to issue or sell any shares of common stock or other equity interests of, such Target Company. There are no outstanding obligations
of either Target Company to redeem or otherwise acquire any of the Target Companies Capital Stock and there are no outstanding contractual
obligations of either Target Company to provide funds to, or make any investment (in the form of a loan, capital contribution or otherwise)
in, any other Person.

 

Section 5.09Financial Statements.
Red Cat has delivered to Unusual a true and complete copy of the audited consolidated balance sheet of the Target Companies as of April
30, 2021 and 2022, and the audited consolidated profit and loss statement, statement of cash flow and statement of changes in stockholders’
equity of the Target Companies for the period ending on such dates together with the same financial statements for the three and six months
ended July 31 and October 31, 2021 and 2022 which interim financial statements have been reviewed by Red Cat’s auditors (collectively,
the “Target Companies’ Financial Statements”). Each of the consolidated Target Companies’ Financial Statements
(including, in each case, any notes and schedules thereto) : (i) have been prepared in accordance with the books of accounts and records
of the Target Companies; (ii) complied as to form in all material respects with the published rules and regulations of the SEC with respect
thereto as of their respective dates; (iii) was prepared in accordance with GAAP applied on a consistent basis throughout the periods
involved (except as may be indicated in the notes thereto and, in the case of unaudited interim financial statements, as may be permitted
by the SEC for Quarterly Reports on Form 10-Q); (iv) reflected the effects of COVID-19 and COVID-19 Measures on the Target Companies and
include adequate provisions to reflect the material effects of COVID-19 and COVID-19; and (v) fairly presented in all material respects
the consolidated financial position and the results of operations, changes in stockholders’ equity, and cash flows of the Target
Companies and its consolidated Subsidiaries as of the respective dates of and for the periods referred to in such financial statements,
subject, in the case of unaudited interim financial statements, to normal and year-end audit adjustments as permitted by the applicable
rules and regulations of the SEC (but only if the effect of such adjustments would not, individually or in the aggregate, be material).
The Target Companies’ Financial Statements will (a) be prepared in accordance with the books of account and records of each Target
Company for the six months ended October 31, 2021 and 2022 and will be true, correct and complete statements in all material respects
of the consolidated financial condition of each Target Company as the Closing Date.

 

Section 5.10Absence of Undisclosed Liabilities.
As of the Closing Date, each Target Company has no Liabilities, of any nature whatsoever, whether accrued, absolute, contingent or otherwise,
other than as provided for in this Agreement or disclosed and accrued for or reserved against in the Financial Statements or in the Closing
Trial Balance. There is no basis for assertion against either Target Company of any such debt, claim, Liability. For the avoidance of
doubt, the Red Cat acknowledges that Unusual is not assuming any such Liabilities, not disclosed and accrued for or reserved against in
the Closing Trial Balance, and Unusual will be indemnified for such pursuant to Section 7.04.

 

Section 5.11Compliance with Laws.

 

(a)            
In addition to the representations and warranties set forth in Sections 5.12 and 5.13, each Target Company is in compliance
with all Laws applicable to it or its properties or has made all necessary filings to be in compliance with all such Laws, including,
without limitation, those relating to (i) the development, testing, manufacture, packaging and labeling of Target Company Products, (ii)
employment, occupational safety and employee health, (iii) sexual or other harassment and discriminatory practices in violation of any
constitution or Laws, (iv) building, zoning and land use; and (v) the Foreign Corrupt Practices Act and all applicable anti-bribery, anti-kickback
and related Laws and regulations. No Target Company has received notification from any Governmental Authority asserting that it is not
in compliance with or has violated any of the Laws which such Governmental Authority enforces, or threatening to revoke any authorization,
consent, approval, franchise, license, or permit, and each Target Company is not subject to any agreement or consent decree with any Governmental
Authority arising out of previously asserted violations, except such non-compliance which is not reasonably expected to result in a Material
Adverse Effect on such Target Company.

 

(b)            
Each Target Company has at all times been in compliance all Laws applicable to it relating to export control, trade embargoes,
and anti-boycott prohibitions. No Target Company Product sold or services provided by any Target Company during the last 5 years has been,
directly or indirectly, sold to or performed on behalf of any country subject to the restricted list of the Office of Foreign Assets Control
Regulations (OFAC), or International Traffic In Arms Regulations (ITAE), or similar restrictions of the United States, including Cuba,
Iraq, Iran, Libya or North Korea or customers in such countries.

 

Section 5.12Regulatory
Compliance; UAV. 

 

(a)            
Each Target Company is in compliance with all applicable Laws, and policies administered or enforced by any Governmental
Authority that regulates Target Company Products or services and any other Governmental Authority that regulates the development of UAV
or educational products in any jurisdiction, including, without limitation, relating to state or federal anti-kickback sales and marketing
practices, insurance and bonding, advertising and promotion, pre- and post-marketing reporting, and all other pre- and post-marketing
reporting requirements, as applicable.

 

(b)            
Schedule 5.12(b) lists each product developed, manufactured, licensed, distributed or sold by each Target
Company (collectively, the “Target Company Product(s)”). Each Target Company Product manufactured by or on behalf of
each Target Company has been manufactured in accordance with (i) the product registration applicable to such Target Company Product, (ii)
the specifications under which the Target Company Product is normally and has normally been manufactured, (iii) the applicable provisions
of current “CE” or “UL” good manufacturing practices or other Governmental Authority and (iv) without
limiting the generality of Section 5.24, the provisions of all applicable Laws.

 

(c)            
Each Target Company has obtained all registrations or submissions and all FAA permits required for the Target Company Products
and all amendments and supplements thereto, and all other Material Permits required by any Governmental Authority to conduct the business
as it is currently conducted (the “Regulatory Approvals”). All of the Regulatory Approvals have been duly and validly
issued and are in full force and effect, and each Target Company is in compliance with each FAA permit and Material Permit held by or
issued to it. Except as listed on Schedule 5.12(c), each Target Company is the sole and exclusive owner of the Regulatory
Approvals and holds all right, title and interest in and to all such Regulatory Approvals. Neither Target Company has granted any third
party any right or license to use, access or reference any of the Regulatory Approvals, including without limitation, any of the know-how
contained in any of the Regulatory Approvals nor rights (including any regulatory exclusivities) associated with each such Regulatory
Approvals.

 

(d)            
There is no action or proceeding by any Governmental Authority pending or, to the Knowledge of each Target Company, Red
Cat or any of their Affiliates, threatened seeking the recall of any of the Target Company Products or the revocation or suspension of
any Regulatory Approval. Each Target Company has made available to Unusual its complete and correct copies of all Regulatory Approvals.
In addition, (i) each Target Company has made available to Unusual a complete and correct copy of the Target Company Products’ Data
(“Product Data”); (ii) to the Knowledge of the Target Companies, or any of their Affiliates, Red Cat, all Laws applicable
to the preparation and submission of the Regulatory Approvals to the relevant regulatory authorities have been complied with; (iii) to
the Knowledge of the Target Companies, Red Cat or any of their Affiliates, each Target Company has filed with the relevant Governmental
Authority all required notices, supplemental applications, and annual or other reports, including adverse experience reports, with respect
to the Regulatory Approvals.

 

(e)            
There exist no set of facts: (i) which could furnish a basis for the recall, withdrawal or suspension of any Target Company
Product registration, Target Company Product license, manufacturing license, wholesale dealers license, export license or other license,
approval or consent of any Governmental Authority with respect to either Target Company or any of the Target Company Products; or (ii)
which could furnish a basis for the recall, withdrawal or suspension of any Target Company Product from the market, the termination or
suspension of any testing of any Product, or the change in marketing classification of any Target Company Product.

 

(f)             
Except as set forth on Schedule 5.12(h), all Target Company Products have been merchantable and free from
defects in material or workmanship for the term of any applicable warranties and under the conditions of any express or implied specifications
and warranties arising under Law and as set forth in the specific order. Except as disclosed on Schedule 5.12(h) hereto,
neither Target Company has received any claims based on alleged failure to meet the specifications or breach of product warranty arising
from any applicable manufacture or sale of Target Company Products.

 

(g)            
As of the Closing Date, all inventory (“Product Inventory”) will conform to the specifications therefor
contained in the Regulatory Approvals and to the Regulatory Approvals and with the requirements of all applicable Regulatory Approvals
and is capable of maintaining such until the expiration date therefor.

 

(h)            
Each Target Company is and has been in compliance with all Laws requiring the maintenance or submission of reports or records
under requirements administered by the FAA or any other Governmental Authority. No Target Company, nor any of their respective employees
or agents, have made an untrue or fraudulent statement to the FAA or any other applicable Governmental Authority, or in any records and
documentation prepared or maintained to comply with the applicable Laws, or failed to disclose a fact required to be disclosed to the
FAA or any other similar Governmental Authority.

 

(i)             
No Target Company nor Red Cat has been convicted of any crime or engaged in any conduct that could result or resulted in
debarment, exclusion or disqualification by the FAA or any other Governmental Authority and there are no Legal Proceedings pending or,
to the Knowledge of either Target Company, Red Cat or any of their Affiliates, threatened that reasonably might be expected to result
in criminal or civil liability or debarment, exclusion or disqualification by the FAA or any other Governmental Authority. No Target Company
has received written notice of or been subject to any other enforcement action involving the FAA or any other Governmental Authority,
including any suspension, consent decree, notice of criminal investigation, indictment, sentencing memorandum, plea agreement, court order
or target or no-target letter, and none of the foregoing are pending or, to any Target Company’s, Red Cat’s or any of their
Affiliates, Knowledge, threatened in writing against any Target Company.

 

(j)             
Each Target Company has security measures and safeguards in place to protect Personally Identifiable Information it collects
from customers and other parties from illegal or unauthorized access or use by its personnel or third parties or access or use by its
personnel or third parties in a manner that violates the privacy rights of third parties. To the Knowledge of Red Cat, the Target Company
or any of their Affiliates, the Target Companies have complied in all material respects with all applicable Laws relating to privacy and
consumer protection and neither has collected, received, stored, disclosed, transferred, used, misused or permitted unauthorized access
to any information protected by applicable Laws related to privacy, whether collected directly or from third parties, in an unlawful manner.
The Target Companies have taken all reasonable steps to protect Personally Identifiable Information against loss or theft and against
unauthorized access, copying, use, modification, disclosure or other misuse.

 

(k)            
Neither Target Company is party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement
orders or similar agreements with or imposed by any Governmental Authority.

 

(l)             
True and complete copies of all information, data, protocols, study reports, safety reports and/or other relevant documents
and materials have been made available to Unusual.

 

Section 5.13Compliance
with Environmental Laws. Each Target Company is in compliance with all applicable Environmental Laws. Except as set forth on Schedule
5.13, there have been no governmental claims, citations, notices of violation, judgments, decrees or orders issued against either
Target Company for impairment or damage, injury or adverse effect to the environment or public health and there have been no private complaints
with respect to any such matters. There is no condition relating to any properties of either Target Company that would require any type
of remediation, clean-up, response or other action under applicable Environmental Laws and each Target Company has complied with Environmental
Laws in the generation, treatment, storage and disposal of Hazardous Substances.

 

Section 5.14Legal Proceedings. (a)
No Target Company is a party to any pending or threatened Legal, Proceeding, and (b) no Person who is or was within the last 5 years a
director or officer of either Target Company is a party to any pending, or threatened, Legal Proceeding in such Person’s capacity
as a director or officer (or the equivalent managerial authority) of such Target Company, which might adversely affect such Target Company
to consummate the transactions contemplated by this Agreement, including the Purchase and Sale or to perform their respective obligations
thereunder, or might reasonably be expected to result in Material Adverse Effect on either of the Target Companies.

 

Section 5.15Title to and Condition of Personal
Property.

 

(a)            
Each Target Company has and will have good and marketable title or leasehold interest to each item of equipment and other
personal property worth more than $10,000 included as an asset in the Closing Trial Balance and/or used in connection with the operation
of its business.

 

(b)            
The buildings, structures, appurtenances, leasehold improvements, equipment, machinery, rolling stock and other tangible
property owned or used by each Target Company (i) are not, and as of the Closing Date, will not be in need of substantial maintenance
or repairs (except for ordinary or routine maintenance or repairs), (ii) are, and as of the Closing Date will be, free of structural or
non-structural defects, and (iii) have access to adequate water, sewer, gas, telephone, high speed Internet service needed for the business
of each Target Company and electric utilities which are in good working order; in each instance as is sufficient to conduct the business
of such Target Company as currently conducted.

 

(c)            
Each item of equipment, personal property and asset of each Target Company, which will be included as an asset in the Closing
Trial Balance and/or used in connection with the operation of its business shall remain with such Target Company. Schedule 5.15(c)
sets forth the full and complete list of all assets owned by each Target Company as of the Effective Date which will be updated as of
the Effective Date. Except as set forth on such Schedule 5.15(c), none of the items of equipment, personal property and
assets included therein was imported under a temporary import or similar regulatory regime that would restrict the transfer, or would
cause either Target Company to owe additional Taxes as a result of the transfer, of such property.

 

Section 5.16Real Property.

 

(a)            
Schedule 5.16(a) sets forth the street address of each parcel of Real Property leased by each Target Company.
Unusual has been delivered true and complete copies of all of the lease agreements relating to the Real Property. Each Target Company
enjoys peaceful and undisturbed possession of the Real Property.

 

(b)            
No Target Company owns any Real Property.

 

(c)            
All construction and improvements made on the Real Property are and, as of the Closing Date, will not be in need of substantial
repairs except for ordinary or routine maintenance or repairs.

 

(d)            
Acquisition’s Subsidiary, Fat Shark Holdings, Ltd, a Cayman Islands exempted company, is exempted from “Customs
Import Duties and Impositions” and operates in the Special Economic Zone pursuant to the Special Economic Zones Law of the Caymans
Island under Identification No. 101259659, which is in full force and effect. There is no action or proceeding by any Governmental Authority
pending or, to the Knowledge of Red Cat or the Principal Stockholder threatened seeking the revoke or suspend the exemption from Customs
Import Duties and Impositions.

 

Section 5.17Intentionally Omitted.

 

Section 5.18Employment
Matters.

 

(a)            
There are no employment, consulting, severance or indemnification arrangements, arrangements which contain change of control
provisions, agreements, or understandings between either Target Company and any officer, director, manager, consultant or employee. Schedule
5.18(a) contains the names, job descriptions and annual salary rates and other compensation of all officers, directors, employees
and consultants of each Target Company (including compensation paid or payable by such Target Company under the Target Company Plans (as
defined)), and a list of all employee policies (written or otherwise), employee manuals or other written statements of rules or policies
concerning employment or providing services, including working conditions, vacation and sick leave (or paid time off), a complete copy
of each of which (or a description, if unwritten) has been delivered to Unusual.

 

(b)            
Each Target Company has complied with all applicable employment Laws, including payroll and related obligations, benefits,
and social security, and does not have any obligation in respect of any amount due to employees of such Target Company or Governmental
Authorities, other than normal salary, other fringe benefits and contributions accrued but not payable on the Effective Date.

 

(c)            
Schedule 5.18(c) sets forth a complete list of all pension, retirement, 401-K, share purchase, share bonus,
share ownership, share option, profit sharing, savings, medical, disability, hospitalization, insurance, deferred compensation, bonus,
incentive, welfare or any other material employee benefit plan, policy, agreement, commitment, arrangement or practice currently or previously
maintained by each Target Company for any of its directors, officers, consultants, employees or former employees (the “Target
Company Plan(s)”).

 

Without limiting the generality
of Section 5.18, each Target Company Plan has been administered in accordance with its terms and applicable Law. With respect to the Target
Company Plans, (i) no event has occurred and there exists no condition, facts or circumstances, which could give rise to any liability
of either Target Company under the terms of such Target Company Plans or any applicable Laws, (ii) each Target Company has paid or accrued
all amounts required under applicable Laws and any Target Company Plan to be paid as a contribution to each Target Company Plan through
the Effective Date, (iii) each Target Company has set aside adequate reserves to meet contributions which are not yet due under any Target
Company Plan, (iv) the fair market value of the assets of each funded Target Company Plan, the liability of each insurer for any Target
Company Plan funded through insurance or the book reserve established for any Target Company Plan, together with accrued contributions,
is sufficient to procure or provide for the accrued benefit obligations, as of the Closing Date, with respect to all current and former
participants in such Target Company Plan according to the actuarial assumptions and valuations most recently used to determine employee
contributions to such Target Company Plan and no transaction contemplated by this Agreement shall cause such assets or insurance obligations
to be less than such benefit obligations, and (v) each Target Company Plan required to be registered has been registered and has been
maintained in good standing with applicable regulatory authorities.

 

On or after the Effective Date,
no Target Company Plan has been, or will be, (i) terminated, (ii) amended in any manner which would directly or indirectly increase the
benefits accrued, or which may be accrued, by any participant thereunder or (iii) amended in any manner which would materially increase
the cost to either Target Company or Unusual of maintaining such Target Company Plan. No Target Company Plan provides retiree medical
or retiree insurance benefits to any Person. Except as disclosed or noted in the Financial Statements, there are no amounts due or owing
to any employee of either Target Company for any accrued salary, remuneration, compensation and/or benefit, including, without limitation,
amounts due for accrued vacation, sick leave or commissions.

 

Section 5.19Labor
Relations. There is no strike or dispute pending or threatened involving any employees of either Target Company. None of the employees
of either Target Company is a member of any labor union and neither Target Company is a party to, otherwise bound by, or threatened with
any labor or collective bargaining agreement. None of the employees of either Target Company are known to be engaged in organizing any
labor union or other employee group that is seeking recognition as a bargaining unit. Without limiting the generality of Section 5.18,
(a) no unfair labor practice complaints are pending or threatened against either Target Company, and (b) no Person has made any claim,
and there is no basis for any claim, against either Target Company under any statute, regulation or ordinance relating to employees or
employment practices, including without limitation those relating to age, sex, gender, racial or other types of discrimination, conditions
of employment, and wages and hours.

 

Section 5.20Contracts.
Schedule 5.20 sets forth a list of all Material Contract to which each Target Company is a party (all such contracts, agreements,
arrangements or commitments as are required to be set forth on Schedule 5.20 being referred to herein collectively as the
“Target Company Contracts”), including, without limitation with respect to each Target Company:

 

(a)            
each partnership, joint venture or similar agreement of such Target Company with another Person;

 

(b)            
each contract or agreement under which such Target Company has created, incurred, assumed or guaranteed (or may create,
incur, assume or guarantee) Indebtedness or under which such Target Company has imposed (or may impose) a Lien on any of its assets, whether
tangible or intangible securing;

 

(c)            
each contract or agreement which involves or contributes to such Target Company, aggregate annual remuneration which exceeds
5% of such Target Company’s consolidated annual net revenues for the 12 months ended April 30, 2021 or 2022;

 

(d)            
all leases and subleases from any third Person to such Target Company;

 

(e)            
each contract or agreement to which such Target Company or any of its Affiliates is a party limiting the right of such Target
Company (i) to engage in, or to compete with any Person in, any business, including each contract or agreement containing exclusivity
provisions restricting the geographical area in which, or the method by which, any business may be conducted by such Target Company or
(ii) to solicit any customer or client;

 

(f)             
fire, casualty, liability, title, worker’s compensation and all other insurance policies and binders maintained by
such Target Company;

 

(g)            
all collective bargaining or other labor union contracts or agreements to which such Target Company is a party or applicable
to Persons employed by such Target Company;

 

(h)            
all licenses, licensing agreements and other agreements providing in whole or part for the use of any Intellectual Property
of such Target Company; and

 

(i)             
all other contracts or agreements which individually or in the aggregate are material to such Target Company or the conduct
of its business, other than those which are terminable upon no more than 30 days’ notice by such Target Company without penalty
or other adverse consequence.

 

Schedule 5.20 further
identifies each of the Target Companies’ Material Contracts which contain anti-assignment, change of control or notice of assignment
provisions. The Target Companies Material Contracts are each in full force and effect and are the valid and legally binding obligations
of each Target Company which is a party thereto and are valid and binding obligations of the other parties thereto. To the Knowledge of
the Red Cat and the Target Companies, no Target Company is a party to, nor is its business or any of its assets bound by, any oral agreement.
No Target Company is in default under its Charter Documents or in default under any Material Contract to which it is a party, and no event
has occurred which with the giving of notice or lapse of time or both would constitute such a default.

 

Section 5.21Tax
Matters. Except as set forth on Schedule 5.21:

 

(a)             
All Tax Returns required to be filed on or before the Closing Date by or with respect to the Target Companies and their Subsidiaries
(which for this Section 5.21 shall exclude any Cayman Island Subsidiaries) have (or by the Closing Date will have) been duly filed or
the time for filing such Tax Returns shall have been validly extended to a date after the Closing Date. Such Tax Returns are true,
correct, and complete in all respects. Except for Taxes reflected or reserved against in the Target Companies’ Financial Statements,
the Target Companies and their Subsidiaries have paid all Taxes due and with respect to Taxes not yet due, all such Taxes not yet paid
have been appropriately reserved against in accordance with GAAP. Neither the Target Companies nor their Subsidiaries is subject to any
joint venture, partnership, or other arrangement or Target Company Contract which is treated as a partnership for federal income tax purposes.
Neither of the Target Companies nor any of their respective Subsidiaries is a party to any Tax indemnity, Tax sharing or Tax allocation
agreement.

 

(b)            
As of the Effective Date, there is no agreement or other document extending, or having the effect of extending, the period of assessment
or collection of any Taxes of any of the Target Companies or any of their respective Subsidiaries, and no power of attorney with respect
to any such Taxes, has been executed or filed with the IRS or any other taxing authority that remains in force.

 

(c)             
During the last 5 years there has been no and as of the Effective Date (and will not be as of the Closing Date) there are no presently
pending audits or Legal Proceedings with respect to any Taxes of the Target Companies or their Subsidiaries.  No claim has ever been
made by a Governmental Authority in a jurisdiction where a Target Company does not file a Tax Return that any of the Target Companies
is or may be subject to taxation by that jurisdiction. 

 

(d)            
All Taxes required to be withheld by the Target Companies or their Subsidiaries have been duly and timely withheld, and such withheld
Taxes have been duly and timely paid to the appropriate governmental entity.

 

(e)             
There are no Tax Liens upon the assets of the Target Companies or their Subsidiaries except Liens for current Taxes not yet due
and payable.

 

(f)             
The Target Companies and their Subsidiaries do not have any potential Liability for any Taxes.

 

(g)            
No private letter rulings, technical advice memoranda or similar agreement or rulings have been requested, entered into or issued
by any taxing authority with respect to the Target Companies.

 

(h)            
No Target Company, nor any of their respective Subsidiaries, will be required to include any item of income in, or exclude any
item or deduction from, taxable income for any taxable period or portion thereof ending after the Closing Date as a result of:

 

(i)                   
any change in a method of accounting under Section 481 of the Code (or any comparable provision of
state, local or foreign Tax Laws), or use of an improper method of accounting, for a taxable period ending on or prior to the Closing
Date;

 

(ii)                   
an installment sale or open transaction occurring on or prior to the Closing Date;

 

(iii)                   
a prepaid amount received on or before the Closing Date;

 

(iv)                   
any closing agreement under Section 7121 of the Code, or similar provision of state, local or foreign
Law; or

 

(v)                   
any election under Section 108(i) of the Code.

 

(i)              
There are no foreign jurisdictions in which any Target Company is subject to Tax, is engaged in business or has a permanent establishment.
No Target Company, nor any of their respective Subsidiaries, has entered into a gain recognition agreement pursuant to Treasury Regulations
Section 1.367(a)-8. No Target Company, nor any of their respective Subsidiaries, has transferred an intangible asset, the transfer of
which would be subject to the rules of Section 367(d) of the Code.

 

Section 5.22Guaranties. No Target
Company is a party to any guaranty, and no Person is a party to any guaranty for the benefit of either Target Company.

 

Section 5.23Insurance. Set forth
on Schedule 5.23 is a list of all insurance policies providing insurance coverage of any nature to each Target Company.
Each Target Company has previously delivered to Unusual a true and complete copy of all of such insurance policies as amended. Such policies
are sufficient for the compliance by each Target Company with all requirements of Law and all Target Company Contracts. All of such policies
are in full force and effect and are valid and enforceable in accordance with their terms, and each Target Company has complied with all
terms and conditions of such policies, including the payment of premium payments. None of the insurance carriers has indicated to any
Target Company an intention to cancel any such policy. No Target Company has any claim pending or anticipated against any of the insurance
carriers under any of such policies and there has been no actual or alleged occurrence of any kind which may give rise to any such claim.

 

Section 5.24Inventories.
The inventories of each Target Company shown on the balance sheets included in the Target Companies’ Financial Statements and the
inventories of each Target Company are stated and will be stated at not more than the lower of cost (on a first-in first-out basis) or
market, and are fit for their particular use, do not and will not include any items below standard quality, defective, damaged or spoiled,
obsolete or of a quality or quantity not usable or salable in the ordinary course of the business of each Target Company as currently
conducted or any items whose expiration date has passed or will pass within 12 months of the Effective Date hereof and as of the Closing
Date (which, with respect to items which do not have an expiration date, shall in any event not include quantities of items not usable
or salable within 12 months from the Effective Date and as of the Closing Date), the value of which has not been fully written down or
reserved against in the Financial Statements. Each Target Company has and will continue to have adequate quantities and types of inventory
to enable it to conduct its business consistent with past practices and anticipated operations. Schedule 5.24 sets forth
a list of all of each Target Company’s inventory as of the Closing Date.

 

Section 5.25Intellectual Property Rights.

 

(a)            
Schedule 5.25 sets forth a complete and correct list of all Intellectual Property that is owned by each Target
Company and the Intellectual Property that each Target Company has a license, sublicense or other permission to use. Except as set forth
on Schedule 5.25, each Target Company owns all right, title and interest in and to, or has a license, sublicense or other
permission to use, all of the Intellectual Property, free and clear of all Liens or other encumbrances. All necessary registration, maintenance
and renewal fees in connection with such Intellectual Property have been paid and all necessary documents and certificates in connection
with such Intellectual Property have been filed with the relevant copyright, trademark or other governmental or regulatory authorities
for the purposes of maintaining such Intellectual Property.

 

(b)            
The Intellectual Property constitutes all patents and patent applications, and technology, know-how, trade secrets and information
owned or licensed to each Target Company relating to the manufacture, use or sale of the Target Company Products. There have been no claims
made against either Target Company or any of their respective Affiliates asserting the invalidity, abuse, misuse, or unenforceability
of any of the Intellectual Property, and, to the Knowledge of each Target Company, Red Cat or any of their Affiliates, no grounds for
any such claims exist. No Target Company, Red Cat nor any of their respective Affiliates has made any claim of any violation or infringement
by others of its rights in the Intellectual Property, and, to the Knowledge of each Target Company, Red Cat or any of their respective
Affiliates, no grounds for any such claims exist. Neither each Target Company, Red Cat nor any of their Affiliates has received any notice
that it is in conflict with or infringing upon the asserted rights of others in connection with the Intellectual Property and, to the
Knowledge of each Target Company, Red Cat or any their Affiliates, the use of the Intellectual Property by each Target Company, Red Cat
or any of its Affiliates is not infringing and has not infringed upon any rights of any other Person. No interest in any of the Intellectual
Property has been assigned, transferred, licensed or sublicensed by either Target Company or any of their Affiliates to any Person. No
Target Company, Red Cat nor any of their Affiliates has Knowledge of any act or failure to act by any of them or any of their respective
directors, officers, employees, attorneys or agents during the prosecution or registration of, or any other proceeding relating to, any
of the Intellectual Property or of any other fact which could render invalid or unenforceable or negate the right to issuance of any of
any of the Intellectual Property.

 

(c)            
Each Target Company has taken reasonable steps to protect the confidentiality and value of all trade secrets and any other
confidential information that are owned, used, or held by such Target Company in confidence, including entering into licenses and Target
Company Contracts that require employees, licensees, contractors, and other Persons with access to trade secrets or other confidential
information to safeguard and maintain the secrecy and confidentiality of such trade secrets. To the Knowledge of Red Cat or any of their
Affiliates, each Target Company and Red Cat, such trade secrets have not been used, disclosed to, or discovered by any Person except pursuant
to valid and appropriate non-disclosure, license, or any other appropriate Target Company Contract which has not been breached.

 

Section 5.26Power
of Attorney. Neither Target Company has issued, granted or executed any powers of attorney on behalf of such Target Company which
is in force at the Closing Date, other than in connection with routine legal filings.

 

Section 5.27Absence
of Material Adverse Effects. Since April 30, 2022, each Target Company has conducted its business only in the ordinary and usual
course and in a manner consistent with past practices and, since such date there has been no Material Adverse Effect relating to either
Target Company and such Target Company has not engaged or agreed to engage in any actions described in Section 8.02.

 

Section 5.28Accounts and Notes Receivable
and Payable. Set forth on Schedule 5.28 is a true and complete aged list of unpaid accounts and notes receivable
owing to and owed by each Target Company as of the most recent practicable date. All of such accounts and notes receivable and payable
constitute bona fide, valid and binding claims arising in the ordinary course of such Target Company’s business. Except as set forth
on Schedule 5.28, there is no agreement for deduction, free goods, discounts, or other deferred price or adjustment to such
receivables. Except as set forth on Schedule 5.28, (a) all receivables owing to each Target Company are less than 90 days
old, are fully collectible and (b) will be collected in the ordinary course of business.

 

Section 5.29Related Parties. Except
as disclosed on Schedule 5.29, to the Knowledge of Red Cat and the Principal Stockholder, neither Red Cat, nor any other
officer, director, or employee of either Target Company, or any of their respective spouses, domestic partners, or family member has,
directly or indirectly, (a) any ownership interest in, or is a director, officer, manager, employee, consultant or agent of, any Person
which is a competitor, supplier or customer of either Target Company; (b) any ownership interest in any property or asset, tangible or
intangible, including any Intellectual Property, used in the conduct of either Target Company’s business; (c) any interest in or
is, directly or indirectly, a party to, any Target Company Contract; (d) any contractual or other arrangement with either Target Company,
or any competitor, supplier or customer of either Target Company; (e) any cause of action or claim whatsoever against, or owes any amount
to, either Target Company; or (f) any Liability to either Target Company. Except as disclosed on Schedule 5.29, neither
Target Company nor any Subsidiary thereof has any Liability to Red Cat.

 

Section 5.30Banks. Schedule
5.30 sets forth (a) the name of each bank, trust corporation or other financial institution and stock or other broker with which
each Target Company has an account, credit line or safe deposit box or vault, (b) the names of all Persons authorized to draw thereon
or to have access to any safe deposit box or vault, (c) the purpose of each such account, safe deposit box or vault, and (d) the names
of all Persons authorized by proxies, powers of attorney or other like instrument to act on behalf of each Target Company in matters concerning
their business or affairs. Except as otherwise set forth on Schedule 5.30, no such proxies, powers of attorney or other
like instruments are irrevocable.

 

Section 5.31Accuracy of Information Furnished.
To the Knowledge of Red Cat, no representation, statement or information contained in this Agreement (including the various exhibits attached
hereto) or any agreement executed in connection herewith or in any certificate or other document delivered pursuant hereto or thereto
or made or furnished to Unusual or its Representatives by any Target Company or Red Cat, contains or shall contain any untrue statement
of a material fact or omits or shall omit any material fact necessary to make the information contained herein and therein not misleading.
Copies of all documents listed or described in the various exhibits attached hereto and provided by any Target Company or Red Cat to Unusual
are true, accurate and complete.

 

Section 5.32Employment Compliance.
In the last 5 years:

 

(a)            
to the Knowledge of Red Cat and the Principal Stockholder, no allegations of sexual harassment, sexual misconduct, sexual, gender,
racial, religious or other discrimination which is in violation of applicable Laws, or retaliation or policy violations of a Target Company
have been made involving any current or former director, officer, manager, employee or independent contractor of either Target Company;

 

(b)            
neither Target Company has entered into any settlement agreement related to allegations referred to in Section 5.32(a); and

 

(c)            
no Legal Proceedings are pending or, to the Knowledge of Red Cat and the Principal Stockholder, threatened related to allegations
referred to in Section 5.32(a) against either Target Company.

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES REGARDING THE PRINCIPAL STOCKHOLDER

 

In order to induce Unusual to
enter into this Agreement and to consummate the transactions contemplated hereby, the Principal Stockholder makes the representations
and warranties set forth below to Unusual, which shall be true and correct as of the Effective Date and the Closing Date.

 

Section 6.01Authorization; Enforceability.
The Principal Stockholder has all requisite right, power and capacity to execute and deliver this Agreement, the Escrow Agreement and
the Transaction Documents to which he is a party and consummate the transactions contemplated hereby and thereby. The execution and delivery
of the Transaction Documents to which it is a party by the Principal Stockholder and the consummation by the Principal Stockholder of
the transactions contemplated hereby and thereby have been duly authorized by all requisite action. This Agreement has been duly executed
and delivered by the Principal Stockholder and constitutes the legal, valid and binding obligations of such party, enforceable in accordance
with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and other similar Laws affecting creditors’ rights generally and subject to the effect of general principles of equity,
whether considered in a proceeding in equity or at law.

 

Section 6.02No Consent, Violation or Conflict.
The execution and delivery of this Agreement, the Escrow Agreement and the Transaction Documents to which the Principal Stockholder is
a party and the consummation of the transactions contemplated hereby and thereby, and compliance by the Principal Stockholder with the
provisions hereof and thereof, (a) do not and will not violate or, if applicable, conflict with any provision of Law and (b) do not and
will not, with or without the passage of time or the giving of notice, result in the breach of, cause the acceleration of performance
or constitute a default or require any consent under, or result in the creation of any Lien upon any property or assets of the Principal
Stockholder pursuant to any instrument or agreement to which the Principal Stockholder is a party or by which the Principal Stockholder’s
properties may be bound or affected.

 

Section 6.03Consent of Governmental Authorities.
The Principal Stockholder has obtained all necessary authorizations and no further consent, approval or authorization of, or registration,
qualification or filing, with any Governmental Authority or any other Person is required to be made or obtained by the Principal Stockholder
in connection with the execution and delivery of this Agreement, the Escrow Agreement and the Transaction Documents to which he is a party
or the consummation by the Principal Stockholder of the transactions contemplated by the Transaction Document.

 

Section 6.04Brokers. The Principal
Stockholder has not incurred and will not incur any broker’s, finder’s, investment banking or similar fees, commissions or
expenses in connection with the transactions contemplated by this Agreement.

 

Section 6.05Ownership of the Escrow Shares.
The Principal Stockholder is and will immediately prior to the Closing be the record and beneficial owner of the Escrow Shares, as such
term is defined by the Escrow Agreement, by and among the Principal Stockholder, Unusual and the Escrow Agent dated as of the Effective
Date. Prior to the Closing such Escrow Shares will be deposited into Escrow with the Escrow Agent (as defined under the Escrow Agreement)
and will be owned free and clear of any Liens, including, without limitation, claims or rights under any Voting Trust Agreements, Proxies,
Stockholder Agreements or other Agreements. At the Closing, the Principal Stockholder will deposit the Escrow Shares into Escrow with
the Escrow Agent free and clear of all Liens. No written or oral agreement or understanding with respect to the disposition of the Principal
Stockholder’s Escrow Shares or any rights therein, other than this Agreement and the Escrow Agreement, exists.

 

Section 6.06Rights, Warrants, and Options.
Other than this Agreement, there are no options, warrants or other rights, arrangements or commitments of any character to which the Principal
Stockholder is a party or by which the Principal Stockholder is bound relating to the Escrow Shares or obligating the Principal Stockholder
to sell any Escrow Shares.

 

Section 6.07Employment Compliance.
In the last 5 years:

 

(a)            
to the Knowledge of the Principal Stockholder, no allegations of sexual harassment, sexual misconduct, sexual, gender, racial,
religious other discrimination which is in violation of applicable Laws, o retaliation or policy violations have been made involving any
current or former director, officer, manager, employee or independent contractor of either Target Company;

 

(b)            
neither Target Company has entered into any settlement agreement related to allegations referred to in Section 6.07(a); and

 

(c)            
no Legal Proceedings are pending or, to the Knowledge of each Target Company, threatened related to allegations referred to in
Section 6.07(a) against either Target Company.

 

ARTICLE VII

SURVIVAL; INDEMNIFICATION

 

Section 7.01Survival of the Representations
and Warranties. The representations and warranties and indemnification obligations of Red Cat, the Principal Stockholder and Unusual
set forth in this Article VII shall survive the Closing Date for a period of 1 year from the Closing Date; provided, however,
that the representations and warranties set forth in Section 3.01 (Organization), Section 3.02 (Capital Structure), Section 3.03 (Authority;
Non-Contravention; Governmental Consents; Board Approval), Section 3.11 (Rule 506 (d) Bad Actor Disqualification Representations and Covenants),
Sections 4.01(a)-(c) (Authority; Non-Contravention; Governmental Consents), Section 4.03 (Capitalization), Section 4.04 (Rights, Warrants,
Options), Section 5.13 (Compliance with Environmental Laws), and Section 5.18 (Employment Matters) shall survive the Closing Date until
the expiration of the period specified in the applicable statute of limitations; provided, further, any claims with respect
to the Tax representations shall survive the Closing for a period of 90 days following the expiration of the applicable statute of limitations
period. If, at any time prior to the expiration of the limitation periods contained in this Section 7.01 including any applicable statute
of limitations, any Indemnified Party delivers to the Indemnifying Party a written notice asserting in good faith a claim for recovery
under this Section 7.01), then the claim asserted in such notice shall survive such expiration time until such time as such claim is fully
and finally resolved including the expiration of any applicable time to appeal.

 

Section 7.02General Release. Effective
as of the Closing Date, Red Cat hereby unconditionally and irrevocably releases and forever discharges, effective as of the Closing Date,
each Target Company and its officers, managers, directors, employees and agents, from any and all rights, claims, demands, judgments,
obligations, liabilities and damages, whether accrued or unaccrued, asserted or unasserted, and whether known or unknown, relating exclusively
to such Target Company which ever existed, now exist, or may hereafter exist, by reason of any tort, breach of contract, violation of
Law or other act or failure to act which shall have occurred at or prior to the Closing Date, or in relation to any other liabilities
of such Target Company to Red Cat, other than any fraud, willful misconduct or gross negligence of such person.

 

Section 7.03Indemnification.

 

(a)            
Indemnification by Red Cat. Red Cat agrees to defend, indemnify and hold harmless Unusual (which, after the Closing
shall include the Target Companies) and their respective directors, officers, managers, employees and agents (each, an “Unusual
Indemnitee” and collectively, the “Unusual Indemnitees”) from, against and in respect of:

 

(i)                   
(A) any and all actions, suits, proceedings, investigations, demands, liabilities, damages, claims,
deficiencies, fines, penalties, interest, assessments, judgments, losses, Taxes, costs and expenses, including, without limitation, reasonable
fees and disbursements of counsel (collectively, the “Indemnified Losses”) arising from or in connection with any breach
or violation of any of the representations and warranties of Red Cat, contained in this Agreement or (B) any and all Indemnified Losses
arising from or in connection with any breach or violation of the covenants or agreements exclusively of Red Cat contained in this Agreement
(in each case, other than in respect of Section 5.21 or any breach or violation of, or failure to fully perform, any covenant, agreement,
undertaking or obligation in Article IX, it being understood that the sole remedy for any such breach, violation or failure shall be pursuant
to Article IX); and

 

(ii)                   
any and all Indemnified Losses not reserved for on the Closing Trial Balance related to the business
or operations of any Target Company prior to the Closing Date.

 

(b)            
Indemnification by the Principal Stockholder. The Principal Stockholder agrees to defend, indemnify and hold harmless
the Unusual Indemnitees from, against and in respect of, the full amount of:

 

(i)                   
(A) any and all Indemnified Losses arising from or in connection with any
breach or violation of any of the representations and warranties of Red Cat or the Principal Stockholder contained in this Agreement or
(B) any and all Indemnified Losses arising from or in connection with any breach or violation of the covenants or agreements of Red Cat
or the Principal Stockholder contained in this Agreement (in each case, other than in respect of
Section 5.21 or any breach or violation of, or failure to fully perform, any covenant, agreement, undertaking or obligation in Article
IX, it being understood that the sole remedy for any such breach, violation or failure shall be pursuant to Article IX);

 

(ii)                   
any and all Indemnified Losses related to or arising from claims for breach
of contract existing on or prior to the Closing Date, and/or which are brought after the Closing Date for acts and omissions of any Target
Company or Red Cat, which occurred prior to the Closing Date;

 

(iii)                   
any and all Indemnified Losses related to or arising from any Target Company
Products delivered by either Target Company prior to the Closing Date, including without limitation, Indemnified Losses for Target Company
Product recalls, Target Company Product defects, warranty claims, personal injury or death;

 

(iv)                   
any and all Indemnified Losses which relate to any Legal Proceedings which
are not set forth on Schedules 5.12(a) and (b), existing on or prior to the Closing Date, and/or which are
brought after the Closing Date for acts and omissions of any Target Company or Red Cat, which occurred prior to the Closing Date; and

 

(v)                   
any and all Indemnified Losses not reserved for on the Closing Trial Balance
related to the business or operations of any Target Company prior to the Closing Date.

 

(c)            
Indemnification by Unusual. Unusual agrees to defend, indemnify and hold harmless Red Cat and its Affiliates and
their respective directors, officers, managers, employees and agents from, against and in respect of, the full amount of:

 

(i)                   
any and all Indemnified Losses arising from or in connection with any breach or violation of any
of the representations or warranties of Unusual contained in this Agreement;

 

(ii)                   
any and all Indemnified Losses arising from or in connection with any breach or violation of any
of the covenants or agreements of Unusual contained in this Agreement; and

 

(iii)                   
any and all Indemnified Losses arising from the Offering or the Registration
Statement.

 

(d)            
Indemnification Procedure. Any Party seeking indemnification under this Agreement (the “Indemnified Party”)
will give prompt written notice to the Party or Parties against whom indemnity is sought (the “Indemnifying Party”)
of any Indemnified Losses which it discovers or of which it receives notice after the Closing, stating the nature, basis (including the
section of this Agreement that has been or will be breached, if any, and the facts giving rise to the claim that a breach has or will
occur), and (to the extent known) amount thereof; provided, however, that no delay on the part of Indemnified Party in notifying
any Indemnifying Party shall relieve the Indemnifying Party from any liability hereunder unless (and then solely to the extent) the Indemnifying
Party is prejudiced by such delay.

 

(e)            
Indemnification Procedure as to Third Party Claims.

 

(i)                   
Promptly after any Indemnified Party obtains knowledge of the commencement of any third party claim,
action, suit or proceeding or of the occurrence of any event or the existence of any state of facts which may become the basis of a third
party claim (any such claim, action, suit or proceeding or event or state of facts being hereinafter referred to in this Section 7.03
as a “Claim”), in respect of which an Indemnified Party is entitled to indemnification under this Agreement, such Indemnified
Party shall promptly notify the Indemnifying Party of such Claim in writing; provided, however, that any failure to give
notice (A) will not waive any rights of the Indemnified Party except to the extent that the rights of the Indemnifying Party are actually
prejudiced thereby and (B) will not relieve the Indemnifying Party of its obligations as hereinafter provided in this Section 7.03 after
such notice is given. With respect to any Claim as to which such notice is given by the Indemnified Party to the Indemnifying Party, the
Indemnifying Party will, subject to the provisions of Section 7.03(e)(ii), assume the defense or otherwise settle such Claim with counsel
reasonably satisfactory to the Indemnified Party and experienced in the conduct of Claims of that nature at the Indemnifying Party’s
sole risk and expense, provided, however, that the Indemnified Party: (1) shall be permitted to join the defense and settlement
of such Claim and to employ counsel reasonably satisfactory to the Indemnifying Party, and at the Indemnified Party’s own expense;
(2) shall cooperate fully with the Indemnifying Party in the defense and any settlement of such Claim in any manner reasonably requested
by the Indemnifying Party; and (3) shall not compromise or settle any such Claim without the prior written approval of the Indemnifying
Party.

 

(ii)                   
If (A) the Indemnifying Party fails to assume the defense of such Claim or, having assumed the defense
and settlement of such Claim, fails reasonably to contest such Claim in good faith, or (B) the remedy sought by the claimant with respect
to such Claim is not solely for money damages, the Indemnified Party, without waiving its right to indemnification, may, but is not required
to, assume the defense and settlement of such Claim, provided, however, that (1) the Indemnifying Party shall be permitted
to join in the defense and settlement of such Claim and to employ counsel at its own expense, (2) the Indemnifying Party shall cooperate
with the Indemnified Party in the defense and settlement of such Claim in any manner reasonably requested by the Indemnified Party, and
(3) the Indemnified Party shall not settle such Claim without the written consent of the Indemnifying Party, which consent shall not be
unreasonably withheld or delayed.

 

(iii)                   
As used in this Section 7.03, the terms Indemnified Party and/or Indemnifying Party shall be deemed
to include the plural thereof where the rights or obligations of more than one Indemnified Party and/or Indemnifying Party may be involved.

 

(f)             
Tax-free Indemnification Payments. All sums payable by an Indemnifying Party as indemnification under this Section 7.03
shall be paid free and clear of all deductions or withholdings (including any Taxes or governmental charges of any nature) unless the
deduction or withholding is required by Law, in which event or in the event the Indemnified Party shall incur any Liability for Taxes
chargeable or assessable in respect of any such payment, the Indemnifying Party shall pay such additional amounts as shall be required
to cause the net amount received by the Indemnified Party to equal the full amount which would otherwise have been received by it had
no such deduction or withholding been made or no such Liability for Taxes been incurred.

 

(g)            
No Contribution. The obligations of Red Cat, or the Principal Stockholder, to indemnify Unusual pursuant to the terms of
this Agreement are several and not joint obligations of Red Cat and the Principal Stockholder, respectively, subject to the limitations
set forth herein. Red Cat and the Principal Stockholder hereby waive any right to seek or obtain indemnification or contribution from
the Target Companies or from each other for Indemnified Losses as a result of any breach by Red Cat or the Principal Stockholder of any
representation, warranty or covenant contained in this Agreement.

 

Section 7.04Limitations on Liabilities.

 

(a)            
Notwithstanding anything to the contrary contained herein, in no event shall the aggregate sums payable under Section 7.03
(other than sums payable as a result of fraud) exceed (i) with respect to Red Cat or the Principal Stockholder the Escrow Shares under
the Escrow Agreement and the aggregate liability for Unusual exceed $1.8 million. Notwithstanding anything herein to the contrary, the
Escrow Shares shall be the sole and exclusive recourse by Unusual for any breaches of the representations and warranties set forth in
this Agreement by Red Cat and/or the Principal Stockholder and for any Red Cat or Principal Stockholder Indemnified Losses. The Principal
Stockholder shall have no right of indemnification or contribution against Red Cat for any claims or breaches of the representations and
warranties of Red Cat set forth herein or any Red Cat Indemnified Losses.

 

Notwithstanding anything to the
contrary contained herein, no Party (including Unusual) shall be obligated to indemnify and hold harmless any other under Section 7.04
for breaches of representations and warranties unless and until all Indemnified Losses in respect of which such Party is obligated to
provide indemnification exceed $250,000 (the “Basket Amount”) following which (subject to the provisions of this Section
7.04) such Party shall be obligated to indemnify and hold harmless, the other Party for all such Indemnified Losses (not merely the amount
by which the Indemnified Losses exceed the Basket Amount); provided, however the Basket Amount shall not apply to indemnity
obligations for Indemnified Losses arising as a result of fraud if determined by a final decision of a court of competent jurisdiction
or breaches of the representations and warranties in Sections 5.07, 5.08, and 5.27.

 

(b)            
Notwithstanding anything to the contrary set forth herein, none of the limitations on indemnification set forth in this
Section 7.04 shall apply to matters relating to fraud if determined by a final decision of a court of competent jurisdiction.

 

ARTICLE VIII

INTERIM COVENANTS

 

Section 8.01Form S-1. As soon as
practicable following the Effective Date, Unusual shall file a Form S-1 Registration Statement (the “Registration Statement”)
with the SEC providing for Unusual to sell at least $15 million of Unusual Common Stock, plus an additional $2.5 million in shares of
Unusual Common Stock issuable upon conversion of the Unusual Note to be offered by Red Cat or certain affiliated parties as selling stockholders
on a delayed or continuous basis following the Offering, or in the Offering by the underwriter for Unusual (the “Offering”).
Red Cat shall co-operate with Unusual in connection with the Offering. Unusual may use a portion of the proceeds to pay additional Cash
Consideration in lieu of issuing the Unusual Note as part of the Consideration at the Closing. Unusual shall not file the Form S-1 Registration
Statement, or any amendment thereto, absent the express prior written approval therefor by Red Cat, such consent not to be unreasonably
withheld, delayed or denied.

 

Section 8.02Interim Operations of the Target
Companies.

 

(a)            
Red Cat covenants and agrees that, from the Effective Date until the Closing Date, Red Cat and the Principal Stockholder
shall cause each Target Company to operate its business in accordance with its ordinary course and past practice. Nothing in this Section
8.02 shall preclude the dissolution of any Cayman Island Subsidiary of a Target Company. In addition, during the period commencing on
the Effective Date and until the Closing Date, Red Cat and the Principal Stockholder shall cause such Target Company to, except to the
extent Unusual specifically gives its prior written consent to the contrary:

 

(i)                   
use its best efforts to preserve intact its business organization and the goodwill of its customers,
suppliers and others having business relations with it;

 

(ii)                   
use its best efforts to keep available to Unusual the services of such Target Company’s officers,
managers, employees, independent contractors and agents;

 

(iii)                   
promptly furnish to Unusual a copy of any correspondence received from or delivered to any Governmental
Authority;

 

(iv)                   
maintain and keep its properties and assets in the same repair and condition as they were on the
date of this Agreement, ordinary wear and tear excepted;

 

(v)                   
continue and maintain the approval process in the ordinary course of business with respect to the
Target Company Products and any Target Company Products being developed by such Target Company; and

 

(vi)                   
continuously maintain insurance coverage substantially equivalent to the insurance coverage in existence
on the Effective Date.

 

(b)            
Additionally, during the period from the Effective Date to the Closing Date, except with the prior written consent of Unusual,
no Target Company shall, and neither Red Cat nor the Principal Stockholder shall permit such Target Company to, directly or indirectly:

 

(i)                   
amend or otherwise change such Target Company’s Charter Documents (other than dissolution of
any Target Company Subsidiary organized in the Cayman Islands to which Unusual consents);

 

(ii)                   
issue, sell or authorize for issuance or sale, shares of any class of its equity securities (including,
but not limited to, by way of share split or dividend) or any subscriptions, options, warrants, rights, or enter into any agreements or
commitments of any character obligating it to issue or sell any such securities, unless the sole purchaser is Red Cat;

 

(iii)                   
issue or sell any Indebtedness including any convertible Indebtedness; 

 

(iv)                   
redeem, purchase or otherwise acquire directly or indirectly any shares of its authorized share capital
or any option, warrant or other right to purchase or acquire any such shares;

 

(v)                   
declare or pay any dividend or other distribution to its equityholders;

 

(vi)                   
sell, transfer, surrender, abandon or dispose of any of its assets or property rights (tangible or
intangible), except for sales or dispositions of inventory in the ordinary course of business consistent with past practice;

 

(vii)                   
grant, make or subject itself or any of its assets or properties to any Lien;

 

(viii)                   
create, incur or assume any liability other than Indebtedness which would remain with such Target
Company after the Closing Date, except in the ordinary course of business consistent with past practice;

 

(ix)                   
enter into, amend or terminate any Target Company Contract;

 

(x)                   
commit to make any capital expenditures in excess of $100,000, which would be payable by such Target
Company after the Closing Date;

 

(xi)                   
issue any guaranty of sums due from any other Person;

 

(xii)                   
waive, release, assign, settle or compromise any material claim or litigation;

 

(xiii)                   
except as required by Law, increase the compensation payable or to become payable to directors, officers,
managers, employees, consultants or agents or grant any rights to severance or termination pay to, or enter into any Employment or Severance
Agreement with any of the foregoing Persons or establish, adopt, enter into or amend any collective bargaining, bonus, profit sharing,
thrift, compensation, share option, restricted share, pension, retirement, deferred compensation, employment, termination, severance or
other Target Company Plan, agreement, trust, fund, policy or arrangement for the benefit of any of the foregoing Persons;

 

(xiv)                   
acquire (including, without limitation, by merger, consolidation or acquisition of stock or assets)
any interest in any corporation, partnership, other business organization, Person or any division thereof or any assets;

 

(xv)                   
alter the manner of keeping its books, accounts or records, or change in any manner the accounting
practices therein reflected;

 

(xvi)                   
make any Tax election or settle or compromise any material federal, state or local or federal income
Tax Liability (“Tax Liability”);

 

(xvii)                   
change its accounting practices, methods or assumptions or write down any of its assets;

 

(xviii)                   
enter into any commitment or transaction, which would survive the Closing Date, except in the ordinary
course of business consistent with past practice;

 

(xix)                   
accelerate, terminate, modify or cancel any Target Company Contract;

 

(xx)                   
grant any license or sublicense of any right under or with respect to any Intellectual Property or
disclose any proprietary or confidential information to any third party;

 

(xxi)                   
take or omit to take any action which would render of any Red Cat’s or the Principal Stockholder’s
representations or warranties untrue or misleading, or which would be a breach of any of Red Cat’s covenants contained in the Agreement;

 

(xxii)                   
enter into any Material Contract, transaction or arrangement with any Affiliate (other than Red Cat);

 

(xxiii)                   
take any action which could have a Material Adverse Effect on either Target Company; or

 

(xxiv)                   
agree, whether in writing or otherwise, to do any of the foregoing.

 

Section 8.03Conduct of the Business of Unusual.

 

(a)            
Unusual covenants and agrees that, from the Effective Date until the Closing Date, Unusual shall operate its business in
accordance with its ordinary course and past practice. In addition, during the period commencing on the Effective Date and until the Closing
Date, Unusual shall, except to the extent Red Cat specifically gives its prior written consent to the contrary:

 

(i)                   
use its best efforts to preserve intact its business organization and the goodwill of its customers,
suppliers and others having business relations with it;

 

(ii)                   
use its best efforts to keep available to Unusual the services of its officers, managers, employees,
independent contractors and agents;

 

(iii)                   
promptly furnish to Red Cat a copy of any correspondence received from or delivered to any Governmental
Authority;

 

(iv)                   
maintain and keep its properties and assets in the same repair and condition as they were on the
date of this Agreement, ordinary wear and tear excepted;

 

(v)                   
continue and maintain the approval process in the ordinary course of business with respect to Unusual
products and any products being developed by Unusual; and

 

(vi)                   
continuously maintain insurance coverage substantially equivalent to the insurance coverage in existence
on the Effective Date.

 

(b)            
Additionally, during the period from the Effective Date to the Closing Date, except with the prior written consent of Red
Cat, Unusual shall not directly or indirectly:

 

(i)                   
amend or otherwise change its Charter Documents;

 

(ii)                   
issue, sell or authorize for issuance or sale, shares of any class of its equity securities (including,
but not limited to, by way of share split or dividend) or any subscriptions, options, warrants, rights, or enter into any agreements or
commitments of any character obligating it to issue or sell any such securities;

 

(iii)                   
issue or sell any Indebtedness including any convertible Indebtedness; 

 

(iv)                   
redeem, purchase or otherwise acquire directly or indirectly any shares of its authorized share capital
or any option, warrant or other right to purchase or acquire any such shares;

 

(v)                   
declare or pay any dividend or other distribution to its equityholders;

 

(vi)                   
sell, transfer, surrender, abandon or dispose of any of its assets or property rights (tangible or
intangible), except for sales or dispositions of inventory in the ordinary course of business consistent with past practice;

 

(vii)                   
grant, make or subject itself or any of its assets or properties to any Lien;

 

(viii)                   
create, incur or assume any liability other than Indebtedness, except in the ordinary course of business
consistent with past practice;

 

(ix)                   
enter into, amend or terminate any Unusual Material Contract;

 

(x)                   
commit to make any capital expenditures in excess of $100,000, which would be payable by Unusual
after the Closing Date;

 

(xi)                   
issue any guaranty of sums due from any other Person;

 

(xii)                   
waive, release, assign, settle or compromise any material claim or litigation;

 

(xiii)                   
except as required by Law or scheduled to this Agreement with respect to certain equity awards, increase
the compensation payable or to become payable to directors, officers, managers, employees, consultants or agents or grant any rights to
severance or termination pay to, or enter into any Employment or Severance Agreement with any of the foregoing Persons or establish, adopt,
enter into or amend any collective bargaining, bonus, profit sharing, thrift, compensation, share option, restricted share, pension, retirement,
deferred compensation, employment, termination, severance or other Unusual plan, agreement, trust, fund, policy or arrangement for the
benefit of any of the foregoing Persons;

 

(xiv)                   
acquire (including, without limitation, by merger, consolidation or acquisition of stock or assets)
any interest in any corporation, partnership, other business organization, Person or any division thereof or any assets;

 

(xv)                   
alter the manner of keeping its books, accounts or records, or change in any manner the accounting
practices therein reflected;

 

(xvi)                   
make any Tax election or settle or compromise any material federal, state or local or federal income
Tax Liability;

 

(xvii)                   
change its accounting practices, methods or assumptions or write down any of its assets;

 

(xviii)                   
enter into any commitment or transaction, which would survive the Closing Date, except in the ordinary
course of business consistent with past practice;

 

(xix)                   
accelerate, terminate, modify or cancel any Unusual Material Contract;

 

(xx)                   
grant any license or sublicense of any right under or with respect to any Intellectual Property or
disclose any proprietary or confidential information to any third party;

 

(xxi)                   
enter into any Material Contract, transaction or arrangement with any Affiliate;

 

(xxii)                   
take any action which could have a Material Adverse Effect on Unusual; or

 

(xxiii)                   
agree, whether in writing or otherwise, to do any of the foregoing.

 

Section 8.04Maintenance of Personnel.
During the period from the date of this Agreement to the Closing Date, each Target Company and Red Cat agree to cooperate and provide
adequate personnel to permit the conduct of the activity contemplated in Section 8.02.

 

Section 8.05Consent of Governmental Authorities.
Each of Unusual, on the one hand, and each Target Company and Red Cat, on the other hand, agree to file, submit or request (or cause to
be filed, submitted or requested) promptly after the Effective Date and to prosecute diligently any and all (a) applications or notices
required to be filed or submitted to any Governmental Authorities, and (b) in the case of each Target Company, requests for consents and
approvals of Persons required to be obtained in connection with the transactions contemplated by this Agreement. Each of Unusual, on the
one hand, and each Target Company and Red Cat on the other hand, shall promptly make available to the other or to a relevant Governmental
Authority, as the case may be, such information as each of them may reasonably request relative to its business, assets and property as
may be required by each of them to prepare and file or submit such applications and notices and any additional information requested by
any Governmental Authority, and shall update by amendment or supplement any such information given in writing.

 

Section 8.06Due Diligence Review; Access
to Information. Each Party shall (and shall cause its directors, officers, employees, auditors, counsel and agents to) afford
the other Party’s officers, employees, auditors, counsel and agents reasonable access at all reasonable times to its properties,
offices, and other facilities, to its officers and employees and to all books and records, and shall furnish such Persons with all financial,
operating and other data and information as may be requested. Neither the due diligence investigation made by any Party in connection
with the transactions contemplated hereby nor information provided to or obtained by such Party shall affect any representation or warranty,
covenants, or agreements contained herein, or limit or otherwise affect the remedies available to such Party pursuant to this Agreement.

 

Section 8.07No Solicitation.

 

(a)            
Takeover Proposal. Neither Red Cat, on the one hand, nor Unusual, on the other hand, shall, and each shall cause their respective
Representatives, Subsidiaries or Subsidiaries’ Representatives as applicable, not to, directly or indirectly, solicit, initiate,
or knowingly take any action to facilitate or encourage the submission of any Takeover Proposal or the making of any proposal that could
reasonably be expected to lead to any Takeover Proposal, or, subject to Section 8.07(b): (i) conduct or engage in any discussions or negotiations
with, disclose any non-public information relating to Red Cat or Unusual or any of their respective Subsidiaries, as applicable, to, afford
access to the business, properties, assets, books, or records of Red Cat or Unusual or any of their respective Subsidiaries to, or knowingly
assist, participate in, facilitate, or encourage any effort by, any third party (or its potential sources of financing) that is seeking
to make, or has made, any Takeover Proposal; (ii) except where the Red Cat Board or Unusual Board, as applicable, makes a good faith determination,
after consultation with its financial advisors and outside legal counsel, that the failure to do so would cause it to be in breach of
its fiduciary duties, amend or grant any waiver or release under any standstill or similar agreement with respect to any class of equity
securities of Red Cat or Unusual, as applicable, or any of their respective Subsidiaries to, amend or grant any waiver or release under
any standstill or similar agreement with respect to any class of equity securities of Red Cat or Unusual, as applicable, or any of their
respective Subsidiaries; or (iii) enter into any Agreement in Principle, Letter of Intent, Term Sheet, Acquisition Agreement, Merger Agreement,
Option Agreement, Joint Venture Agreement, Partnership Agreement, or other Target Company Contract relating to any Takeover Proposal (each,
an “Acquisition Agreement”). Except as expressly permitted by this Agreement, the Red Cat Board shall not effect a
Red Cat Adverse Recommendation Change (“Red Cat Adverse Recommendation Change”). Red Cat on the one hand, and Unusual,
on the other hand, shall, and shall cause their respective Representatives, Subsidiaries and Subsidiaries’ Representatives to, cease
immediately and cause to be terminated any and all existing activities, discussions, or negotiations, if any, with any third party conducted
prior to the Effective Date with respect to any Takeover Proposal and shall use its reasonable best efforts to cause any such third party
(or its agents or advisors) in possession of non-public information in respect of Red Cat or Unusual, as applicable, and any of their
respective Subsidiaries that was furnished by or on behalf of such Party or its respective Subsidiaries to return or destroy (and confirm
destruction of) all such information. Without limiting the foregoing, it is understood that any violation of or the taking of actions
inconsistent with the restrictions set forth in this Section 8.07 by any Representative of Red Cat or its Subsidiaries, on the one hand,
or Unusual or its Subsidiaries, on the other hand, whether or not such Representative is purporting to act on behalf of the applicable
Party or any of its Subsidiaries, shall be deemed to be a breach of this 8.07 by the applicable Party.

 

(b)            
Superior Proposal. Notwithstanding anything herein to the contrary, the Red Cat Board, directly or indirectly through any
Representative, may, subject to Section 8.07(c): (i) participate in negotiations or discussions with any third party that has made (and
not withdrawn) a bona fide, unsolicited Takeover Proposal in writing that the Red Cat Board believes in good faith, after consultation
with its financial advisors and outside legal counsel, constitutes or could reasonably be expected to result in a Superior Proposal; (ii)
thereafter furnish to such third party non-public information relating to such Party or any of its Subsidiaries pursuant to an executed
Confidentiality Agreement that constitutes an acceptable Confidentiality Agreement (“Acceptable Confidentiality Agreement”)
(a copy of which Confidentiality Agreement shall be promptly (in all events within 72 hours) provided for informational purposes to the
other Party); (iii) following receipt of and on account of a Superior Proposal, make a Red Cat Adverse Recommendation Change; and/or (iv)
take any action that any court of competent jurisdiction orders such Party to take (which order remains unstayed), but in each case referred
to in the foregoing clauses (i) through (iv), only if the Red Cat Board determines in good faith, after consultation with its financial
advisors and outside legal counsel, that the failure to take such action could cause it to be in breach of its fiduciary duties under
applicable Law. Nothing contained herein shall prevent the Red Cat Board from disclosing to its stockholders a position contemplated by
Rule 14d-9 and Rule 14e-2(a) promulgated under the Exchange Act with regard to a Takeover Proposal, if the Party determines, after consultation
with its financial advisors and outside legal counsel, that failure to disclose such position could cause Red Cat Board to be in breach
of its fiduciary duties under applicable Law.

 

(c)            
Notification to the Other Party. The Red Cat Board shall not take any of the actions referred to in clauses (i) through
(iv) of Section 8.07(b) unless Red Cat shall have delivered to Unusual a prior written notice advising Unusual that it intends to take
such action. Red Cat shall notify Unusual promptly (but in no event later than 24 hours) after it obtains Knowledge of the receipt by
Red Cat (or any of its Representatives) of any Takeover Proposal, any inquiry that could reasonably be expected to lead to a Takeover
Proposal, any request for non-public information relating to Red Cat or any of its Subsidiaries or for access to the business, properties,
assets, books, or records of Red Cat or any of its Subsidiaries by any third party. In such notice, Red Cat shall identify the third party
making, and details of the material terms and conditions of, any such Takeover Proposal, indication or request, including any proposed
financing. Red Cat shall keep Unusual fully informed, on a current basis, of the status and material terms of any such Takeover Proposal,
indication or request, including any material amendments or proposed amendments as to price, proposed financing, and other material terms
thereof. Red Cat shall provide Unusual with at least 48 hours prior notice of any meeting of the Red Cat Board, or any committee (“Red
Cat Board Committee”) thereof (or such lesser notice as is provided to the members of the Red Cat Board or Red Cat Board Committee)
at which the Red Cat Board, or Red Cat Board Committee, is reasonably expected to consider any Takeover Proposal. Red Cat shall promptly
provide Unusual with a list of any non-public information concerning such Red Cat’s or any of its Subsidiaries’ business,
present or future performance, financial condition, or results of operations, provided to any third party, and, to the extent such information
has not been previously provided to Unusual, copies of such information.

 

(d)            
Adverse Recommendation Change or Acquisition Agreement. Except as expressly permitted by this Section 8.07, the Red Cat
Board shall not effect a Red Cat Adverse Recommendation Change; or enter into (or permit any of its respective Subsidiaries to enter into)
an Acquisition Agreement. Notwithstanding the foregoing, at any time: (i) prior to the receipt of the Requisite Red Cat Vote, the Red
Cat Board may effect a Red Cat Adverse Recommendation Change or enter into (or permit any Subsidiary to enter into) an Acquisition Agreement
that did not result from a breach of this Section 8.07, if (A) Red Cat promptly notifies Unusual, in writing, at least five Business Days
(the “Superior Proposal Notice Period”) before making a Red Cat Adverse Recommendation Change, as applicable, or entering
into (or causing one of its Subsidiaries to enter into) an Acquisition Agreement, of its intention to take such action with respect to
a Superior Proposal, which notice shall state expressly that Red Cat has received a Takeover Proposal that the Red Cat Board or Red Cat
Board Committee intends to declare a Superior Proposal and that it intends to effect a Red Cat Adverse Recommendation Change, and/or Red
Cat intends to enter into an Acquisition Agreement, (B) Red Cat specifies the identity to Unusual whom is making the Superior Proposal
and the material terms and conditions thereof in such notice and includes an unredacted copy of the Takeover Proposal and attaches to
such notice the most current version of any proposed agreement (which version shall be updated on a prompt basis) and any related documents
including financing documents, to the extent provided by the relevant Party in connection with the Superior Proposal, (C) Red Cat shall,
and shall cause its Representatives to, during the Superior Proposal Notice Period, negotiate with Unusual in good faith to make such
adjustments in the terms and conditions of this Agreement so that such Takeover Proposal ceases to constitute a Superior Proposal, if
Unusual, in its discretion, proposes to make such adjustments (it being agreed that in the event that, after commencement of the Superior
Proposal Notice Period, there is any material revision to the terms of a Superior Proposal, including, any revision in price or financing,
the Superior Proposal Notice Period shall be extended, if applicable, to ensure that at least three Business Days remains in the Superior
Proposal Notice Period subsequent to the time Red Cat notifies Unusual of any such material revision (it being understood that there may
be multiple extensions)), and (D) Red Cat Board or Red Cat Board Committee determines in good faith, after consulting with its financial
advisors and outside legal counsel, that such Takeover Proposal continues to constitute a Superior Proposal (after taking into account
any adjustments made by Unusual during the Superior Proposal Notice Period in the terms and conditions of this Agreement) and that the
failure to take such action would cause Red Cat Board to be in breach of its fiduciary duties under applicable Law.

 

Section 8.08Preparation of Proxy Statement.

 

(a)            
Proxy Statement. In connection with a Red Cat Stockholders Meeting, as soon as reasonably practicable following the Effective
Date, Red Cat shall prepare and file the Proxy Statement with the SEC.

 

(b)            
Furnishing of Information. Red Cat and Unusual shall furnish to the other Party all information concerning such Person and
its Affiliates required by the Exchange Act to be set forth in the Proxy Statement. Each of Red Cat and Unusual shall promptly correct
any information provided by it for use in the Proxy Statement if and to the extent that such information shall have become false or misleading
in any material respect. Each of Red Cat and Unusual shall take all steps necessary to amend or supplement the Proxy Statement, as applicable,
and Red Cat shall cause the Proxy Statement, as so amended or supplemented, to be filed with the SEC and disseminated to the holders of
Red Cat Common Stock and other voting securities to the extent required by applicable Law.

 

(c)            
SEC Comments. Red Cat shall promptly provide Unusual and its counsel with any comments or other communications, whether
written or oral, Red Cat, or its counsel may receive from the SEC or its staff with respect to the Proxy Statement promptly after the
receipt of such comments. Prior to the filing of the Proxy Statement with the SEC (including in each case any amendment or supplement
thereto) or the dissemination thereof to the holders of Red Cat Common Stock and voting securities, or responding to any comments of the
SEC with respect to the Proxy Statement, Red Cat shall provide Unusual and its counsel a reasonable opportunity to review and comment
on such Proxy Statement, or response (including the proposed final version thereof), and Red Cat shall give reasonable and good faith
consideration to any comments made by Unusual or their counsel.

 

Section 8.09Red Cat Stockholders Meeting.
Red Cat shall take all action necessary to duly call, give notice of, convene, and hold the Red Cat Stockholders Meeting as soon as reasonably
practicable, and, in connection therewith, Red Cat shall mail the Proxy Statement to the holders of Red Cat Common Stock and voting securities
in advance of such meeting. The Proxy Statement shall include the Red Cat Board Recommendation. Red Cat shall use reasonable best efforts
to: (a) solicit from the holders of Red Cat Common Stock and voting securities proxies in favor of the adoption of this Agreement and
approval of the Purchase and Sale, including the engagement of a solicitation agent, if required, the identity of which shall require
the reasonable approval of Unusual; and (b) take all other actions necessary or advisable to secure the vote or consent of the holders
of Red Cat Common Stock and voting securities required by applicable Law to obtain such approval. Red Cat shall keep Unusual and its counsel
updated with respect to proxy solicitation results as requested by Unusual. Once the Red Cat Stockholders Meeting has been called and
noticed, Red Cat shall not postpone or adjourn the Red Cat Stockholders Meeting without the consent of Unusual other than in order to
obtain a quorum of its stockholders. Notwithstanding anything in this Agreement to the contrary, in lieu of holding a meeting, Red Cat
may take action by consent as permitted by the Rules of the SEC and the NRS.

 

Section 8.10Notices of Certain Events.
Subject to applicable Law, Red Cat shall notify Unusual promptly of: (a) any notice or other communication from any Person alleging that
the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; (b) any notice or
other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement; and (c) any event,
change, or effect between the Effective Date and the Closing which individually or in the aggregate causes or is reasonably likely to
cause or constitute (i) a material breach of any of its representations, warranties, or covenants contained herein, or (ii) the failure
of any of the conditions set forth in Article IX of this Agreement to be satisfied; provided that, any failure to give notice in
accordance with the foregoing with respect to any breach shall not be deemed to constitute a violation of this Section 8.10 or the failure
of any condition set forth in Article IX to be satisfied, or otherwise constitute a breach of this Agreement by the Party failing to give
such notice, in each case unless the underlying breach would independently result in a failure of the conditions set forth in Article
IX to be satisfied; and provided, further, that the delivery of any notice pursuant to this Section 8.10 shall not cure
any breach of, or noncompliance with, any other provision of this Agreement or limit the remedies available to the Party receiving such
notice.

 

Section 8.11Preparation of Nasdaq Listing
Application.

 

(a)            
Nasdaq Listing Application. In connection with the Offering, as soon as reasonably practicable following the Effective Date,
Unusual shall prepare and file a listing application with the Nasdaq Capital Market (“Nasdaq”) to allow trading of
its common stock under the symbol “UMAC” or other symbol acceptable to Unusual but not similar to RCAT (the “Nasdaq
Listing Application”).

 

(b)            
Furnishing of Information. Red Cat and Unusual shall each furnish to the other Party all information concerning such Person
and its Affiliates required by the Exchange Act to be set forth in the Nasdaq Listing Application. Each of Red Cat and Unusual shall promptly
correct any information provided by it for use in the Nasdaq Listing Application if and to the extent that such information shall have
become false or misleading in any material respect. Each of Red Cat and Unusual shall take all steps necessary to amend or supplement
the Nasdaq Listing Application, as requested by Nasdaq.

 

Section 8.12Reasonable Best Efforts.

 

(a)            
Governmental and Other Third-Party Approval; Cooperation and Notification. Upon the terms and subject to the conditions
set forth in this Agreement (including those contained in this Section 8.12), each of the Parties hereto shall, and shall cause its Subsidiaries
to, use its respective reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist
and cooperate with the other Parties in doing, all things necessary, proper, or advisable to consummate and make effective, and to satisfy
all conditions to, (and in any event no later than the End Date, as defined), the Purchase and Sale and the other transactions contemplated
by this Agreement, including: (i) the obtaining of all Material Permits, waivers, and actions or non-actions from Governmental Authorities
and the making of all necessary registrations, filings, and notifications (including filings with any Governmental Authority) and the
taking of all steps as may be necessary to obtain an approval or waiver from, or to avoid an action or proceeding by, any Governmental
Authority; (ii) the obtaining of all necessary consents or waivers from third parties; and (iii) the execution and delivery of any additional
instruments necessary to consummate the Purchase and Sale and to fully carry out the purposes of this Agreement. Red Cat and Unusual shall,
subject to applicable Law, promptly: (A) cooperate and coordinate with the other in the taking of the actions contemplated by clauses
(i), (ii), and (iii) immediately above; and (B) supply each other with any information that may be reasonably required in order to effectuate
the taking of such actions. Each Party hereto shall promptly inform the other Party or Parties, as the case may be, of any communication
from any Governmental Authority regarding any of the transactions contemplated by this Agreement. If Red Cat, on the one hand, or Unusual,
on the other hand, receives a request for additional information or documentary material from any Governmental Authority with respect
to the transactions contemplated by this Agreement, then it shall use reasonable best efforts to make, or cause to be made, as soon as
reasonably practicable and after consultation with the other Party, an appropriate response in compliance with such request, and, if permitted
by applicable Law and by any applicable Governmental Authority, provide the other Party’s counsel with advance notice and the opportunity
to attend and participate in any meeting or other form of communication with any Governmental Authority in respect of any filing made
thereto in connection with the transactions contemplated by this Agreement.

 

(b)            
Actions or Proceedings. In the event that any Legal Proceeding is instituted (or threatened to be instituted) by a Governmental
Authority or private party challenging the Purchase and Sale or any other transaction contemplated by this Agreement, or any other agreement
contemplated hereby, each Party shall cooperate in all respects with the other Party and shall use its reasonable best efforts to contest
and resist any Legal Proceeding and to have vacated, lifted, reversed, or overturned any Order, whether temporary, preliminary, or permanent,
that is in effect and that prohibits, prevents, or restricts consummation of the transactions contemplated by this Agreement. Notwithstanding
anything in this Agreement to the contrary, no Party, or any of its Affiliates shall be required to defend, contest, or resist any Legal
Proceeding, or to take any action to have vacated, lifted, reversed, or overturned any Order, in connection with the transactions contemplated
by this Agreement.

 

Section 8.13Public Announcements.
The initial press release with respect to this Agreement and the transactions contemplated hereby shall be a release mutually agreed to
by Red Cat and Unusual. Thereafter, each of Red Cat and Unusual agrees that no public release, statement, announcement, or other disclosure
concerning the Purchase and Sale and the other transactions contemplated hereby shall be issued by any Party without the prior written
consent of the other Party (which consent shall not be unreasonably withheld, conditioned, or delayed), except as may be required by:
(a) applicable Law; (b) court process; (c) Nasdaq; or (d) any Governmental Authority to which the relevant Party is subject or submits;
provided, in each such case, that the Party making the release, statement, announcement, or other disclosure shall use its reasonable
best efforts to allow the other Party reasonable time to comment on such release, statement, announcement, or other disclosure in advance
of such issuance. Notwithstanding the foregoing, the restrictions set forth in this Section 8.13 shall not apply to any release, statement,
announcement, or other disclosure made with respect to the Purchase and Sale and the other transactions contemplated hereby that is substantially
similar (and identical in any material respect) to those in a previous release, statement, announcement, or other disclosure made by Red
Cat or Unusual in accordance with this Section 8.13.

 

Section 8.14Anti-Takeover Statutes.
If any “control share acquisition,” “fair price,” “moratorium,” or other anti-takeover Law becomes
or is deemed to be applicable to Red Cat or Unusual relating to the Purchase and Sale, then each of Red Cat and the Red Cat Board on the
one hand, and Unusual and the Unusual Board on the other hand, shall grant such approvals and take such actions as are necessary so that
the transactions contemplated hereby may be consummated as promptly as practicable on the terms contemplated hereby and otherwise act
to render such anti-takeover Law inapplicable to the foregoing.

 

Section 8.15Stockholder Litigation.
Red Cat shall promptly advise Unusual in writing after becoming aware of any Legal Proceeding commenced, or to Red Cat’s Knowledge
threatened, against Red Cat or any of its directors by any stockholder of Red Cat (on their own behalf or on behalf of Red Cat) relating
to this Agreement or the transactions contemplated hereby (including the Purchase and Sale and the other transactions contemplated hereby)
and shall keep Unusual reasonably informed regarding any such Legal Proceeding. Red Cat shall: (a) give Unusual the opportunity to participate
in the defense and settlement of any such stockholder litigation, (b) keep Unusual reasonably apprised on a prompt basis of proposed strategy
and other significant decisions with respect to any such stockholder litigation, and provide Unusual with the opportunity to consult with
Red Cat regarding the defense of any such litigation, which advice Red Cat shall consider in good faith, and (c) not settle any such stockholder
litigation without the prior written consent of Unusual.

 

Section 8.16Resignations. At the
written request of Unusual, Red Cat shall cause each director or manager of any of the Target Companies and Subsidiaries to resign in
such capacity, with such resignations to be effective as of the Closing.

 

Section 8.17Debt. On or prior to
the Closing, Red Cat shall have eliminated any and all Indebtedness, relating to the Target Companies and all Liens related to the assets
of the Target Companies shall have been released prior to the Closing, except for Permitted Liens.

 

Section 8.18Assignment of Intellectual
Property. On or prior to the Closing, Red Cat shall have taken all action to assign or license the trademarks and other Intellectual
Property on Rotor Riot and Fat Shark from Red Cat, UAV Patent Corp., or any other Red Cat Subsidiary to Unusual at the Closing (the “IP
Assignments”).

 

Section 8.19Lock-Up Agreements.
If requested by the underwriters in connection with the Offering, Red Cat shall enter into a lock-up agreement for a maximum of 180 days,
provided, however, that on and following 90 days after the Closing, in the event that the trading price on the principal exchange for
Unusual Common Stock equals or exceeds 150% of the Offering price, Red Cat (and its successors and assigns) shall be permitted to offer
and sell up to 25% of the 30 day average daily trading volume per day for Unusual Common Stock underlying the Unusual Preferred Stock.
Unusual’ s officers, directors and 5% stockholders shall enter into a lock-up agreement with Red Cat for 180 days following the
Offering and if requested by the underwriters in connection with the Offering, Unusual shall enter into a lock-up agreement with such
underwriters if requested by the underwriters in connection with the Offering(the “Lock-Up Agreements”).

 

Section 8.20Registration Rights Agreement.
At the Closing, Unusual and Red Cat shall execute and deliver a Registration Rights Agreement, which shall be substantially in form attached
hereto on Exhibit A (the “Registration Rights Agreement”).

 

Section 8.21Escrow Agreement. At
the Closing, Red Cat, Unusual, the Principal Stockholder and the Escrow Agent shall execute and deliver the Escrow Agreement on terms
and conditions reasonably acceptable to the Parties.

 

Section 8.22Notice of Developments.
During the period from the date of this Agreement to the Closing Date, each Party will give prompt written notice after discovery thereof
to the other Parties of any material adverse development causing a breach of any of such Party’s representations, warranties and
covenants set forth herein.

 

Section 8.23Delivery
of Financial Statements. Each Party will prepare and deliver to the other Parties audited financial statements and reviewed any
unaudited financial statement for any interim period, in each instance that will be reasonably requested by the other Party prior to or
following Closing, including all material respect required to be included in the Registration Statement or the Proxy.

 

Section 8.24Non-Competition Agreement.Red
Cat and Unusual shall enter into a Non-Competition Agreement which shall be in form and substance mutually acceptable to the Parties.

 

ARTICLE IX

TAX MATTERS

 

Section
9.01Tax Covenants. 

 

(a)            
Without the prior written consent of Unusual, Red Cat (and, prior to the Closing, the Target Companies, their respective
Affiliates and its and their respective Representatives) shall not, to the extent it may affect, or relate to, the Target Companies, make,
change or rescind any Tax election, amend any Tax Return or take any position on any Tax Return, take any action, omit to take any action
or enter into any other transaction that would have the effect of increasing the Tax liability or reducing any Tax asset of Unusual or
the Target Companies in respect of any Post-Closing Tax Period. Red Cat agrees that Unusual is to have no liability for any Tax resulting
from any action of Red Cat, the Target Companies, their respective Affiliates or any of its or their respective Representatives, and agrees
to indemnify and hold harmless Unusual (and, after the Closing Date, the Target Companies) against any such Tax or reduction of any Tax
asset.

 

(b)            
All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties
and interest) incurred in connection with this Agreement and the Transaction Documents (including any real property transfer Tax and any
other similar Tax) shall be borne and paid by Red Cat when due. Red Cat shall, at its own expense, timely file any Tax Return or other
document with respect to such Taxes or fees (and Unusual shall cooperate with respect thereto as necessary).

 

(c)            
Unusual shall prepare, or cause to be prepared, all Tax Returns required to be filed by the Target Companies after the Closing
Date with respect to a Pre-Closing Tax Period. Any such Tax Return shall be prepared in a manner consistent with past practice (unless
otherwise required by Law) and without a change of any election or any accounting method and shall be submitted by Unusual to Red Cat
(together with schedules, statements and, to the extent requested by Red Cat, supporting documentation) at least 45 days prior to the
due date (including extensions) of such Tax Return. If Red Cat objects to any item on any such Tax Return, it shall, within 10 days after
delivery of such Tax Return, notify Unusual in writing that it so objects, specifying with particularity any such item and stating the
specific factual or legal basis for any such objection. If a notice of objection shall be duly delivered, Unusual and Red Cat shall negotiate
in good faith and use their reasonable best efforts to resolve such items. If Unusual and Red Cat are unable to reach such agreement within
10 days after receipt by Unusual of such notice, the disputed items shall be resolved by the Independent Accounting Firm and any determination
by the Independent Accounting Firm shall be final. The Independent Accounting Firm shall resolve any disputed items within 20 days of
having the item referred to it pursuant to such procedures as it may require. If the Independent Accounting Firm is unable to resolve
any disputed items before the due date for such Tax Return, the Tax Return shall be filed as prepared by Unusual and then amended to reflect
the Independent Accounting Firm’s resolution. The costs, fees and expenses of the Independent Accounting Firm shall be borne equally
by Unusual and Red Cat. The preparation and filing of any Tax Return of the Target Companies that does not relate to a Pre-Closing Tax
Period shall be exclusively within the control of Unusual.

 

Section
9.02Termination of Existing Tax Sharing Agreements. Any and all existing Tax sharing agreements (whether written or
not) binding upon the Target Companies shall be terminated as of the Closing Date. After such date none of the Target Companies, Red Cat
nor any of Red Cat's or the Target Companies’ Affiliates and their respective Representatives shall have any further rights or liabilities
thereunder.

 

Section
9.03Tax Indemnification. Except to the extent treated as a liability in the calculation of Final Working Capital, Red Cat
and the Principal Stockholder shall jointly and severally indemnify the Target Companies, Unusual, and each Unusual Indemnitee and hold
them harmless from and against: (a) any Indemnified Losses attributable to any breach of or inaccuracy in any representation or warranty
made in Section 5.21; (b) any Indemnified Losses attributable to any breach or violation of, or failure to fully perform, any covenant,
agreement, undertaking or obligation in this Article IX; (c) all Taxes of the Target Companies or relating to the business of the Target
Companies for all Pre-Closing Tax Periods ("Pre-Closing Taxes"); (d) all Taxes of any member of an affiliated, consolidated,
combined or unitary group of which the Target Companies (or any predecessor of the Target Companies) is or was a member on or prior to
the Closing Date by reason of a liability under Treasury Regulation Section 1.1502-6 or any comparable provisions of foreign, state or
local Law; and (e) any and all Taxes of any person imposed on the Target Companies arising under the principles of transferee or successor
liability or by contract, relating to an event or transaction occurring before the Closing Date. In each of the above cases, together
with any out-of-pocket fees and expenses (including attorneys' and accountants' fees) incurred in connection therewith, Red Cat shall
reimburse Unusual for any Taxes of the Target Companies that are the responsibility of Red Cat pursuant to this Section 9.03 within [10]
business days after payment of such Taxes by Unusual or the Target Companies.

 

Section
9.04Straddle Period.
In the case of Taxes that are payable with respect to a taxable period that begins before and ends after the Closing Date (each such period,
a “Straddle Period”), the portion of any such Taxes that are treated as Pre-Closing Taxes for purposes of this Agreement
shall be:

 

(a)            
in the case of Taxes (i) based upon, or related to, income, receipts, profits, wages, capital or net worth, (ii) imposed
in connection with the sale, transfer or assignment of property, or (iii) required to be withheld, deemed equal to the amount which would
be payable if the taxable year ended with the Closing Date; and

 

(b)            
in the case of other Taxes, deemed to be the amount of such Taxes for the entire period multiplied by a fraction the numerator
of which is the number of days in the period ending on the Closing Date and the denominator of which is the number of days in the entire
period.

 

Section
9.05Intentionally Omitted.

Section 9.06Intentionally
Omitted.

 

Section
9.07Contests. Unusual agrees to give written notice to Red Cat of the receipt of any written notice by the Acquisition,
Unusual or any of Unusual's Affiliates which involves the assertion of any claim, or the commencement of any Legal Proceeding, in respect
of which an indemnity may be sought by any Unusual Indemnitee pursuant to this Article IX (a “Tax Claim”); provided,
that failure to comply with this provision shall not affect Unusual's right to indemnification hereunder. Unusual shall control the contest
or resolution of any Tax Claim; provided, however, that Unusual shall obtain the prior written consent of Red Cat (which
consent shall not be unreasonably withheld, conditioned or delayed) before entering into any settlement of a claim or ceasing to defend
such Tax Claim; and, provided, further, that Red Cat shall be entitled to participate in the defense of such claim and to
employ counsel of its choice for such purpose, the fees and expenses of which separate counsel shall be borne solely by Red Cat.

 

Section
9.08Cooperation and Exchange of Information. Red Cat and Unusual shall provide each other with such cooperation and information
as either of them reasonably may request of the other in filing any Tax Return pursuant to this Article IX or in connection with any audit
or other proceeding in respect of Taxes of the Target Companies. Such cooperation and information shall include providing copies of relevant
Tax Returns or portions thereof, together with accompanying schedules, related work papers and documents relating to rulings or other
determinations by tax authorities. Each of Red Cat and Unusual shall retain all Tax Returns, schedules and work papers, records and other
documents in its possession relating to Tax matters of the Target Companies for any taxable period beginning before the Closing Date until
the expiration of the statute of limitations of the taxable periods to which such Tax Returns and other documents relate, without regard
to extensions except to the extent notified by the other party in writing of such extensions for the respective Tax periods. Prior to
transferring, destroying or discarding any Tax Returns, schedules and work papers, records and other documents in its possession relating
to Tax matters of the Target Companies for any taxable period beginning before the Closing Date, Red Cat or Unusual (as the case may be)
shall provide the other party with reasonable written notice and offer the other party the opportunity to take custody of such materials.

 

Section
9.09Tax Treatment of Indemnification Payments. Any indemnification payments pursuant to this Article IX shall be treated
as an adjustment to the Purchase Price by the parties for Tax purposes, unless otherwise required by Law.

 

Section
9.10Payments to Unusual. Any amounts payable to Unusual pursuant to this Article IX shall be satisfied from
Red Cat and the Principal Stockholder, jointly and severally.

 

Section 9.11Survival.
Notwithstanding anything in this Agreement to the contrary, the provisions of Section 5.21 and this Article IX shall survive for the full
period of all applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof) plus 90 days. If, at any
time prior to the expiration of the limitation period contained in this Section 9.11 including any applicable statute of limitations,
any Unusual Indemnitee delivers to the Red Cat a written notice asserting in good faith a claim for recovery under this Article IX), then
the claim asserted in such notice shall survive such expiration time until such time as such claim is fully and finally resolved including
the expiration of any applicable time to appeal.

 

Section
9.12Overlap. To the extent that any obligation or responsibility pursuant to Article VII may overlap with an obligation
or responsibility pursuant to this Article IX, the provisions of this Article IX shall govern.

 

ARTICLE X

CLOSING CONDITIONS

 

Section 10.01Conditions to Each Party’s
Obligation to Effect the Purchase and Sale. The respective obligations of each Party to this Agreement to effect the Purchase
and Sale is subject to the satisfaction or waiver (where permissible pursuant to applicable Law) on or prior to the Closing of each of
the following conditions (collectively, the “Closing Conditions”):

 

(a)            
Red Cat Stockholder Approval. The sale of the Target Companies shall have been duly approved by the Requisite Red Cat Vote.

 

(b)            
Offering. The SEC shall have declared the S-1 effective and the Offering shall have been consummated.

 

(c)            
Nasdaq Listing. Unusual’s Nasdaq Listing Application shall have been approved and trading shall commence simultaneously
with the consummation of the Offering and the Closing of the Purchase and Sale.

 

(d)            
Employment and Non-Competition Agreements. Brandon Torres Declet and Unusual shall have entered into an Employment Agreement
(with a customary non-compete provision that may not be amended or waived without the reasonable consent of Red Cat) in form and substance
reasonably acceptable to Unusual and Brandon Torres Declet and Unusual and the Target Companies shall have entered into a Non-Competition
Agreement with Red Cat referenced in Section 11.15 of this Agreement in form and substance mutually acceptable to the Parties.

 

(e)            
Unusual and Red Cat shall have executed and delivered a Demand Registration Rights Agreement for Unusual Common Stock issuable
upon conversion of the Unusual Preferred Stock, which shall be in form and substance mutually acceptable to the Parties.

 

(f)             
The Principal Stockholder and Unusual and the Escrow Agent shall have executed and delivered the Escrow Agreement.

 

(g)            
Unusual shall have entered into an Engagement Letter and Underwriting Agreement with Revere Securities LLC in form and substance
satisfactory to Red Cat.

 

(h)            
Lockup Agreements with officers, directors and 5% owners of Unusual in form and substance acceptable to Red Cat shall have been
executed and delivered by the applicable parties.

 

(i)             
Unusual and Red Cat shall execute and deliver a transition services agreement in form and substance satisfactory to Red Cat and
Unusual (the “Transition Services Agreement”).

 

(j)             
Consents. Unusual, Red Cat and each Target Company shall have obtained all authorizations, waivers, consents and approvals
of, and made all filings, applications and notices with, Persons which are necessary or advisable to consummate the transactions contemplated
by this Agreement, each of which shall have been obtained without the imposition of any materially adverse term or condition.

 

(k)            
No Injunctions, Restraints, or Illegality. No Governmental Authority shall have enacted, issued, promulgated, enforced,
or entered any Laws or Orders, whether temporary, preliminary, or permanent, that make illegal, enjoin, or otherwise prohibit consummation
of the Purchase and Sale, or the other transactions contemplated by this Agreement.

 

(l)             
Disclosure Schedules. Each Party shall deliver updated Disclosure Schedules necessary to make their respective representations
and warranties true and correct as of the Closing Date.

 

Section 10.02Conditions to Obligations of
Unusual. The obligations of Unusual to effect the Purchase and Sale are also subject to the satisfaction or waiver (where permissible
pursuant to applicable Law) by Unusual on or prior to the Closing of the following conditions:

 

(a)            
Representations and Warranties True and Correct. The representations and warranties of the Parties (other than Unusual set
forth in Article III of this Agreement) shall be true and correct in all respects (without giving effect to any limitation indicated by
the words “in all material respects,” “in any material respect,” “material,” or “materially”)
as of the Effective Date and as of the Closing Date, as if made on and as of such date (except those representations and warranties that
address matters only as of a particular date, which shall be true and correct in all respects as of that date), except where the failure
of such representations and warranties to be so true and correct would not reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect on such Parties.

 

(b)            
Performance of Covenants. Red Cat, t and the Principal Stockholder shall have performed in all material respects all obligations
and complied in all material respects with the agreements and covenants, in this Agreement required to be performed by or complied with
by it at or prior to the Closing.

 

(c)            
No Material Adverse Effect. There shall not have occurred any Material Adverse Effect with respect to Red Cat or Target
Company, the impact of which the Parties have not been able to resolve to the satisfaction of the Parties, acting in good faith and in
a commercially reasonable manner.

 

(d)            
Target Company’s Certificate. Each Target Company shall have delivered to Unusual a certificate executed by an authorized
Representative of such Target Company, on behalf of such Target Company and of Red Cat, dated the Closing Date, certifying in such detail
as Unusual may reasonably request, that the conditions specified in this Section 10.02 have been fulfilled.

 

(e)            
No Litigation. Legal proceeding shall be pending or threatened by or before any Governmental Authority, no law shall have
been enacted after the date of this Agreement, and no judicial or administrative decision shall have been rendered; in each case, which
enjoins, prohibits or materially restricts, or seeks to enjoin, prohibit or materially restrict, the consummation of the transactions
contemplated by this Agreement.

 

(c)            
Delivery of Closing Trial Balance. Red Cat shall have delivered to Unusual the Closing Trial
Balance, which shall not reflect any Indebtedness. 

 

(f)             
Delivery of the Target Companies’ Capital Stock. Red Cat shall have delivered to Unusual certificates representing
the Target Companies’ Capital Stock with stock powers endorsed in blank, free and clear of any Liens, which deliveries and maybe
in book entry.

 

(g)            
 Intentionally Omitted

 

(h)            
IP Assignment. Red Cat shall have executed and delivered to Unusual the IP Assignment, in a form and substance reasonably
acceptable to Unusual or taken steps to deliver promptly following closing.

 

(i)             
Escrow Agreement. The Principal Stockholder and the Escrow Agent shall have executed and delivered to Unusual the Escrow
Agreement, and the Escrow Agent shall have received the Escrow Shares.

 

(j)             
Lock-Up Agreements. Red Cat shall have executed and delivered to Unusual the Lock-Up Agreement.

 

(k)            
Employment Agreements; Waivers of Severance. The Persons set forth on Schedule 10.02 shall have entered into
agreements with Unusual or the applicable Target Company in form and substance satisfactory to Unusual providing for the continued services
for the applicable Target Company, for protection from disclosure of confidential information, protection of Intellectual Property and
trade secrets, compliance with Law, and non-competition for a minimum term of 12 months for such non-competition with Red Cat substantially
on the terms acceptable to Red Cat. The Persons listed on Schedule 10.02(l) have waived the payments of any severance arising
solely from a change of control of the Target Companies.

 

(l)             
Officers Certificate. Unusual will have received a certificate signed by the Chief Executive Officer or Chief Financial
Officer of Red Cat certifying as to the matters set forth in Section 2.02 and Section 10.02 hereof.

 

(m)          
Balance Sheet. Red Cat shall have delivered an unaudited balance sheet of the Targets for the 3 and 6 month periods ended
October 31, 2022 and there shall have been no Material Adverse Effect on the Targets reflected on such balance sheets.

 

Section 10.03Conditions to Obligation of
Red Cat, the Target Companies and the Principal Stockholder. The obligations of Red Cat and the Principal Stockholder to effect
the Purchase and Sale and the transaction contemplated by it is also subject to the satisfaction or waiver by Red Cat on or prior to the
Closing of the following conditions:

 

(a)            
Representations and Warranties True. The representations and warranties of contained in this Agreement or in any certificate
or other document delivered pursuant to this Agreement, shall be true and correct in all material respects (except for representations
and warranties which are by their terms qualified by materiality, which shall be true and correct to the extent of such materiality),
as of the Closing Date with the same force and effect as though made on and as of such date and shall have been true as of the Effective
Date.

 

(b)            
Performance of Covenants. Unusual shall have performed in all material respects all obligations, and complied in all material
respects with the agreements and covenants, in this Agreement required to be performed by or complied with it at or prior to the Closing.

 

(c)            
No Material Adverse Effect. Since the Effective Date, there shall not have been any Unusual Material Adverse Effect with
respect to Unusual or any event, change, or effect that would, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on Unusual.

 

(d)            
No Litigation. No Legal Proceedings shall be pending or threatened by or before any Governmental Authority; no Laws shall
have been enacted after the date of this Agreement, and no judicial or administrative decision shall have been rendered; in each case,
which enjoins, prohibits or materially restricts, or seeks to enjoin, prohibit or materially restrict, the consummation of the transactions
contemplated by this Agreement.

 

(e)            
Officers Certificate. Red Cat will have received a certificate, signed by the Chief Executive Officer and Chief Financial
Officer of Unusual, certifying in such detail as Red Cat may reasonable request, that the conditions specified in this Section 10.03 have
been fulfilled.

 

Section 10.04Frustration of Closing Conditions.
Neither Red Cat, the Target Companies, the Principal Stockholder nor Unusual may rely, as a basis for not consummating the Purchase and
Sale or the other transactions contemplated by this Agreement, on the failure of any condition set forth in Sections 10.01, 10.02, or
10.03, as the case may be, to be satisfied if such failure was caused by such Party’s breach in any material respect of any provision
of this Agreement.

 

ARTICLE XI

TERMINATION, AMENDMENT, AND WAIVER

 

Section 11.01Termination by Mutual Consent.
This Agreement may be terminated at any time prior to the Closing (whether before or after the receipt of the Requisite Red Cat Vote)
by the mutual written consent of Unusual and Red Cat.

 

Section 11.02Termination by Either Red Cat
or Unusual. This Agreement may be terminated by either Red Cat or Unusual at any time prior to the Closing (whether before or
after the receipt of the Requisite Red Cat Vote):

 

(a)            
if the Purchase and Sale has not been consummated on or before March 30, 2023 (the “End Date”); provided,
however, that the right to terminate this Agreement pursuant to this Section 11.02 shall not be available to any Party whose
breach of any representation, warranty, covenant, or agreement set forth in this Agreement has been the principal cause of, or that resulted
in, the failure of the Purchase and Sale to be consummated on or before the End Date;

 

(b)            
if any Governmental Authority shall have enacted, issued, promulgated, enforced, or entered any Law or Order making illegal, or
permanently enjoining, the consummation of the Purchase and Sale, or the other transactions contemplated by this Agreement, and such Law
or Order shall have become final and non-appealable, or Section 11.02(b);

 

(c)            
if the Purchase and Sale has been submitted to the stockholders of Red Cat for approval at a duly convened Red Cat Stockholders
Meeting and the Requisite Red Cat Vote shall not have been obtained at such meeting (unless such Red Cat Stockholders Meeting has been
adjourned or postponed, in which case at the final adjournment or postponement thereof); or

 

(d)            
if any Closing Condition set forth in Section 10.01 shall not be satisfied by Unusual.

 

Section 11.03Termination by Red Cat.
This Agreement may be terminated by the Red Cat at any time prior to the Closing:

 

(a)            
if prior to the receipt of the Requisite Red Cat Vote at the Red Cat Stockholders Meeting or any adjournment thereof, the disinterested
Red Cat stockholders fail to approve this Agreement by a majority vote or the Red Cat Board shall have accepted a Superior Proposal and
entered into an Acquisition Agreement with a third party;

 

(b)            
if Unusual shall have breached or failed to perform in any material respect any of its covenants and agreements set forth in Article
VIII; or

 

(c)            
if there shall have been a breach of any representation, warranty, covenant, or agreement on the part of Unusual set forth in this
Agreement such that the conditions to the Closing of the Purchase and Sale set forth in Section 10.03(a) or Section 10.03(b), as applicable,
would not be satisfied and, in either such case, such breach is incapable of being cured by the End Date; provided, that
Red Cat shall have given Unusual at least 30 days written notice prior to such termination stating Red Cat’s intention to terminate
this Agreement pursuant to this Section 10.03(c); provided further, that Red Cat shall not have the right to terminate this Agreement
pursuant to this Section 10.03 if Red Cat is then in material breach of any representation, warranty, covenant, or obligation hereunder
that would cause any condition set forth in Sections 10.02(a) or 10.02(b) not to be satisfied.

 

Section 11.04Termination by Unusual.
This Agreement may be terminated by Unusual at any time prior to the Closing:

 

(a)            
if prior to the receipt of the Requisite Red Cat Vote at the Red Cat Stockholders Meeting, or any adjournment thereof the disinterested
Red Cat stockholders fail to approve this Agreement by a majority vote or the Red Cat Board shall have accepted a Superior Proposal and
entered into an Acquisition Agreement with a third party;

 

(b)            
if Red Cat shall have breached or failed to perform in any material respect any of its covenants and agreements set forth in Article
VIII; or

 

(c)            
if there shall have been a breach of any representation, warranty, covenant, or agreement on the part of Red Cat, the Target Companies
or the Principal Stockholder set forth in this Agreement such that the conditions to the Closing of the Purchase and Sale set forth in
Section 10.02(a) or 10.02(b), as applicable, would not be satisfied and, in either such case, such breach is incapable of being cured
by the End Date; provided, that Unusual shall have given Red Cat, the Target Companies and the Principal Stockholder, as
applicable, at least 30 days written notice prior to such termination stating Unusual’s intention to terminate this Agreement pursuant
to this Section 10.04; provided further, that Unusual shall not have the right to terminate this Agreement pursuant to this Section
10.04 if Unusual is then in material breach of any representation, warranty, covenant, or obligation hereunder that would cause any condition
set forth in Section 10.02(a) or Section 10.02(b) not to be satisfied.

 

Section 11.05Notice of Termination; Effect
of Termination. The Party desiring to terminate this Agreement pursuant to this Article X (other than pursuant to Section 10.01)
shall deliver written notice of such termination to each other Party hereto specifying with particularity the reason for such termination,
and any such termination in accordance with this Section 10.05 shall be effective immediately upon delivery of such written notice to
the other Party or upon expiration of the 30-day notice, as the case may be. If this Agreement is terminated pursuant to this Article
X, it will become void and of no further force and effect, with no Liability on the part of any Party to this Agreement (or any stockholder,
director, officer, employee, agent, or Representative of such Party) to any other Party hereto, except: (a) with respect to Section 8.05(b),
this Section 11.05, Section 11.06, Section 11.07 and Article XII (and any related definitions contained in any such Sections or Article),
which shall remain in full force and effect; and (b) with respect to any Liabilities incurred or suffered by a Party, to the extent such
Liabilities were the result of fraud or the breach by another Party of any of its representations, warranties, covenants, or other agreements
set forth in this Agreement.

 

Section 11.06Amendment. At any time
prior to the Closing, this Agreement may be amended or supplemented in any and all respects, whether before or after receipt of the Requisite
Red Cat Vote, by written agreement signed by each of the Parties hereto; provided, however, that: (a) following the receipt
of the Requisite Red Cat Vote, there shall be no amendment or supplement to the provisions of this Agreement which by Law would require
further approval by the holders of Red Cat capital stock without such approval.

 

Section 11.07Termination Fee. Notwithstanding
anything to the contrary herein, if Red Cat accepts an Acquisition Proposal relating to a third party obtaining Control of the Target
Companies collectively, an “Acquisition Proposal”), then Red Cat upon closing the Acquisition Proposal shall pay Unusual
a non-refundable fee in the amount of $500,000 in cash or shares of Red Cat common stock if elected by Red Cat, at the highest VWAP prior
to the date of issuance payable within 5 days. For purposes of the immediately preceding sentence, the term “obtaining control”
or “acquiring control” (collectively “Control”) shall mean one or more Persons obtaining or acquiring more
than 50.1% of the voting power of the Target Companies in the case of Red Cat. In no event shall a Termination Fee by payable if the Purchase
and Sale is not consummated by the End Date (unless such End Date is extended by the written agreement of the Parties). Notwithstanding
anything to the contrary herein, if Unusual: (a) terminates this Agreement unilaterally without cause (it being understood that the failure
to consummate the Offering or the failure to obtain a listing with Nasdaq shall not be deemed to be a termination for cause); and (b)
consummates a public offering within 12 months of termination of this Agreement, Unusual shall pay Red cat a non-refundable fee in the
amount of $500,000 in cash or shares of Unusual if Unusual has a class of its securities listed for trading on a national securities exchange
if elected by Unusual at the highest VWAP prior to the date of issuance, payable within 5 days after the consummation of any such alternative
transaction.

 

Section 11.08Extension; Waiver.
At any time prior to the Closing, Red Cat, on the one hand, or Unusual, on the other hand, may: (a) extend the time for the performance
of any of the obligations of the other Party(ies); (b) waive any inaccuracies in the representations and warranties of the other Party(ies)
contained in this Agreement or in any document delivered under this Agreement; or (c) unless prohibited by applicable Law, waive compliance
with any of the covenants, agreements, or conditions contained in this Agreement. Any agreement on the part of a Party to any extension
or waiver will be valid only if set forth in an instrument in writing signed by such Party. The failure of any Party to assert any of
its rights under this Agreement or otherwise will not constitute a waiver of such rights.

 

ARTICLE XII

MISCELLANEOUS

 

Section 12.01Disclosure Schedules.

 

(a)            
The inclusion of any information in the Disclosure Schedules (the “Schedules”) shall not be deemed an admission
or acknowledgment that such information is required to be listed in the Schedules or that such items are material. The Schedules are arranged
in Sections corresponding to the Sections contained in this Agreement merely for convenience, and the disclosure of an item in one Section
of the Schedules as an exception to a particular covenant, agreement, representation or warranty shall be deemed adequately disclosed
as an exception with respect to all other covenants, agreements, representations and warranties to the extent that the relevance of such
item to such other covenants, agreements, representations or warranties is reasonably apparent on its face without independent knowledge
of the reader, notwithstanding the presence or absence of an appropriate cross-reference thereto.

 

(b)            
Notwithstanding anything to the contrary herein, from time-to-time prior to the Closing, each Party may at its option supplement
or amend and deliver updates to any Schedule that has been rendered inaccurate or incomplete since the Effective Date solely as a result
of matters or events first occurring after the Effective Date as necessary to complete or correct any information in such Schedules. The
updating Party(ies) shall provide the other Party(ies) with any such supplement or amendment by written notice (each, a “Schedule
Update“). If the matters identified in a Schedule Update, individually or collectively with matters identified in any other
Schedule Update, constitute a Material Adverse Effect on such Party, then the other Party(ies) may at any time within three Business Days
following their receipt of any such Schedule Update, elect to terminate this Agreement pursuant to Article X. If the receiving Party does
not so timely elect (subject to the preceding sentence with respect to the cumulative effect of matters identified in all Schedule Updates,
whether prior to or after the Schedule Update in question), the Schedule Update shall be deemed to have amended the appropriate Schedule
or Schedules as of the Effective Date, and shall be deemed to have qualified the applicable representations and warranties contained in
this Agreement as of the Effective Date, and to have cured any misrepresentation or breach of warranty that otherwise might have existed
hereunder by reason of the existence of such matter.

 

Section 12.02Interpretation; Construction.

 

(a)            
The Recitals, each Exhibit and the Schedules are hereby incorporated into and made a part of this Agreement by reference. The headings
herein are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect
any of the provisions hereof. Unless the context otherwise requires, references herein: (i) to “Article(s)”, “Section(s)”,
“Exhibit(s)” and “Schedules” refer to the corresponding Article(s), Section(s), Exhibit(s) and Schedule(s) of
or to this Agreement; (ii) to “Schedule(s)” refer to the corresponding Schedule(s) of the Disclosure Schedules; (iii) to an
agreement, instrument, or other document means such agreement, instrument, or other document as amended, supplemented, and modified from
time-to-time to the extent permitted by the provisions thereof; and (iv) to a statute means such statute as amended from time-to-time
and includes any successor legislation thereto and any regulations promulgated thereunder. Whenever the words “include,” “includes,”
or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation,”
and the word “or” is not exclusive. The word “extent” in the phrase “to the extent” means the degree
to which a subject or other thing extends, and does not simply mean “if.” A reference in this Agreement to $ or dollars is
to U.S. dollars. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. The words
“hereof,” “herein,” “hereby,” “hereto,” and “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. References
to “this Agreement” shall include the Schedules.

 

(b)            
The Parties have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden
of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement.

Section 12.03Survival. The representations
and warranties contained in this Agreement or in any instrument delivered under this Agreement will survive the Closing and expire at
the various time referenced in Section 7.01. This Section 12.03 does not limit any covenant or agreement of the Parties contained in this
Agreement which, by its terms, contemplates performance after the Closing.

 

Section 12.04Governing Law. This
Agreement and all Legal Proceedings (whether based on contract, tort, or statute) arising out of, relating to, or in connection with this
Agreement or the actions of any of the Parties hereto in the negotiation, administration, performance, or enforcement hereof, shall be
governed by and construed in accordance with the internal Laws of the State of New York without giving effect to any choice or conflict
of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of Laws of any
jurisdiction other than those of the State of New York.

 

Section 12.05Submission to Jurisdiction.
Each of the Parties hereto irrevocably agrees that any Legal Proceeding with respect to this Agreement and the rights and obligations
arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising
hereunder brought by any other Party hereto or its successors or assigns shall be brought and determined exclusively in the federal or
state court located in New York County, New York. Each of the Parties hereto hereby irrevocably submits with regard to any such Legal
Proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts
and agrees that it will not bring any Legal Proceeding relating to this Agreement or any of the transactions contemplated by this Agreement
in any court or tribunal other than the aforesaid courts. Each of the Parties hereto hereby irrevocably waives, and agrees not to assert,
by way of motion, as a defense, counterclaim, or otherwise, in any Legal Proceeding with respect to this Agreement and the rights and
obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations
arising hereunder: (a) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason; (b) any
claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts
(whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or
otherwise); and (c) to the fullest extent permitted by the applicable Law, any claim that (i) the suit, action, or proceeding in such
court is brought in an inconvenient forum, (ii) the venue of such suit, action, or proceeding is improper, or (iii) this Agreement, or
the subject matter hereof, may not be enforced in or by such courts.

 

Section 12.06Waiver of Jury Trial.
Each Party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult
issues and, therefore, each such Party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any
legal action arising out of or relating to this Agreement or the transactions contemplated by this Agreement. Each Party to this Agreement
certifies and acknowledges that: (a) no Representative of any other Party has represented, expressly or otherwise, that such other Party
would not seek to enforce the foregoing waiver in the event of a legal action; (b) such Party has considered the implications of this
waiver; (c) such Party makes this waiver voluntarily; and (d) such Party has been induced to enter into this Agreement by, among other
things, the mutual waivers and certifications in this section 11.06.

 

Section 12.07Notices. All notices,
requests, consents, claims, demands, waivers, and other communications hereunder shall be in writing and shall be deemed to have been
given upon the earlier of actual receipt or (a) when delivered by hand providing proof of delivery; (b) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); or (c) on the date sent by email if sent during normal business
hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient. Such communications must be
sent to the respective Parties at the following addresses (or to such other Persons or at such other address for a Party as shall be specified
in a notice given in accordance with this Section 12.07):

 

	If to Unusual:	
    Unusual Machines, Inc.

    151 Calle de San Francisco

    STE 200 PMB 2106

    San Juan, PR 00901-1607

    Attention: Brandon Torres Declet, CEO

    Email:brandon@unusualmachines.com

     

	with a copy (which will not constitute notice to Unusual) to:	
    Nason, Yeager, Gerson, Harris & Fumero, P.A.

    3001 PGA Boulevard, Suite 305

    Palm Beach Gardens, FL 33410

    Attention: Michael D. Harris

    Email:Mharris@nasonyeager.com

     

	If to Red Cat:	
    Red Cat Holdings, Inc.

    15 Ave Munoz Rivera, Suite 2200

    San Juan, Puerto Rico 00901

    Attention: Joe Freedman, Co-Chair of the Special Committee

    Email:Jf@redcat.red

     

	
    with a copy (which will not constitute notice to Red
    Cat) to:

     
	
    Law Office of Harvey Kesner

    500 Fifth Avenue

    New York, NY 10036

    646-678-2543

    Harvey@hkesnerlaw.com

    Attention: Harvey Kesner, Esq.

	 	 
	
    If to the Principal Stockholder

     

     

    with a copy (which will not constitute notice to Principal
    Stockholder) to:
	
    Jeffrey Thompson

    Email:jeff@redcat.red

 

Section 12.08Entire Agreement. This
Agreement (including all Exhibit(s) and Schedules referred to herein), the Escrow Agreement and the Confidentiality Agreement constitute
the entire agreement among the Parties with respect to the subject matter of this Agreement and supersede all other prior agreements and
understandings, both written and oral, among the Parties to this Agreement with respect to the subject matter of this Agreement. In the
event of any inconsistency between the statements in the body of this Agreement (other than an exception expressly set forth as such in
the Schedules) or the Confidentiality Agreement, the statements in the body of this Agreement will control.

 

Section 12.09No Third-Party Beneficiaries.
Except as provided in Section 8.10 hereof (which shall be to the benefit of the Persons referred to in such Section), this Agreement is
for the sole benefit of the Parties hereto and their permitted assigns and respective successors and nothing herein, express or implied,
is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit, or remedy of any nature whatsoever
under or by reason of this Agreement.

 

Section 12.10Severability. If any
term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability
shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other
jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the Parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually
acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent
possible.

 

Section 12.11Assignment. This Agreement
shall be binding upon and shall inure to the benefit of the Parties hereto and their respective successors and permitted assigns. Neither
Red Cat, the Target Companies nor the Principal Stockholder, on the one hand, nor Unusual on the other hand, may assign its rights or
obligations hereunder without the prior written consent of the other Party(ies). No assignment shall relieve the assigning Party of any
of its obligations hereunder.

 

Section 12.12Remedies Cumulative.
Except as otherwise provided in this Agreement, any and all remedies expressly conferred upon a Party to this Agreement will be cumulative
with, and not exclusive of, any other remedy contained in this Agreement, at Law, or in equity. The exercise by a Party to this Agreement
of any one remedy will not preclude the exercise by it of any other remedy.

 

Section 12.13Specific Performance.

 

(a)            
The Parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance
with the terms hereof and that the Parties shall be entitled to an injunction or injunctions to prevent breaches or threatened breaches
of this Agreement or to enforce specifically the performance of the terms and provisions hereof, in addition to any other remedy to which
they are entitled at Law or in equity.

 

(b)            
Each Party further agrees that: (i) no such Party will oppose the granting of an injunction or specific performance as provided
herein on the basis that the other Party has an adequate remedy at law has not been irreparably harmed or that an award of specific performance
is not an appropriate remedy for any reason at law or equity; (ii) no such Party will oppose the specific performance of the terms and
provisions of this Agreement; and (iii) no other Party or any other Person shall be required to obtain, furnish, or post any bond or similar
instrument in connection with or as a condition to obtaining any remedy referred to in this Agreement, and each Party irrevocably waives
any right it may have to require the obtaining, furnishing, or posting of any such bond or similar instrument.

 

Section 12.14Counterparts; Effectiveness.
This Agreement may be executed in any number of counterparts, all of which will be one and the same agreement. This Agreement will become
effective when each Party to this Agreement will have received counterparts signed by all of the other Parties.

 

Section 12.15Other Agreements. For
a period commencing with the Closing Date continuing for a period of 5 years, Unusual and the Target Companies shall execute and deliver
a Non-Competition Agreement with Red Cat for 5 years in form and substance mutually acceptable to the Parties pursuant to which Unusual
and the Target Companies shall agree to restrict its activities and shall not design, manufacture, market, import, build or sell any Group
1 or Group 2 UAV/drone to customers which are Governmental Authorities and/or any third-party intermediary such as contractors or Red
Cat’s to customers which are Governmental Authorities, without the prior written consent of Red Cat, and shall exclusively refer
all such opportunities to Red Cat. The Non-Competition Agreement shall also provide that Unusual shall be entitled to usual and customary
compensation for all sales by Red Cat for such referrals.

 

Section 12.16No Sandbagging. No
Party(ies) shall be liable to the other Party(ies) for any losses or damages based upon or arising out of any inaccuracy in or breach
of any of the representations or warranties of such Party(ies) contained in this Agreement if the other Party(ies) had Knowledge of such
inaccuracy or breach prior to the Closing.

 

[signature page follows]

 

 

 

    	 

    	 

    

IN WITNESS WHEREOF, the
Parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly
authorized.

 

	 	
    UNUSUAL MACHINES, INC.

    a Puerto Rico corporation

     

     

    By:_______________________________

    Name:Brandon Torres Declet,

    Title:Chief Executive Officer

     

     

	 	
    RED CAT HOLDINGS, INC.

    a Nevada corporation

     

    By:_______________________________

    Name:Joe Freedman

    Title:Lead Director

     

     

	 	
    PRINCIPAL STOCKHOLDER:

     

     

    __________________________

    Jeffrey Thompson 

 

 

    	 

    	 

    

Exhibit A

Form of Registration Rights Agreement

 

(See attached)Exhibit 10.5

 

CONFIDENTIAL

 

THE
GEORGE WASHINGTON UNIVERSITY

 

Patent
License Agreement

 

This
Patent License Agreement (this “Agreement”) is between the George Washington University, a congressionally chartered
not-for-profit corporation (“University”) located in the District of Columbia, and BullFrog AI Holdings, Inc., a Nevada
corporation, having a principal place of business at 325 Ellington Blvd., #317, Gaithersburg, MD 20878 (“Company”).
This Agreement will become effective as of January 14th, 2022 (the “Effective Date”). University and Company
are collectively or individually, the “Parties” or “Party”.

 

BACKGROUND

 

University
owns certain intellectual property developed by Dr. Lopa Mishra of the University’s School of Medicine and Health Sciences and
her colleagues (identified in Exhibit A), relating to GW Tech ID# 020-030-Mishra – “Inhibition of SPTBN1 to treat Obesity/NASH
and Obesity/NASH-driven cancer”. University also owns certain letters patent and/or applications for letters patent relating to
the intellectual property. Company desires to obtain an exclusive license under the patent rights to exploit the intellectual property.
University has determined that the exploitation of the intellectual property by Company is in the best interest of University and is
consistent with its educational and research missions and goals.

 

In
consideration of the mutual obligations contained in this Agreement, and intending to be legally bound, the parties agree as follows:

 

	1.	LICENSE

 

1.1. License
Grant. University grants to Company a license (the “License”) according to the exclusivity and territory terms
described in Appendix A to make, have made, use, import, offer for sale and sell Licensed Products in the Field of Use during the Term
(as such terms may be defined in Sections 1.2, 6.1, Appendix A). The License includes the right to sublicense as permitted by this Agreement.
No other rights or licenses are granted by University.

 

1.2. Related
Definitions. The term “Licensed Products” means products and services that are made, made for, used, imported,
offered for sale or sold by Company or its Affiliates or Sublicensees and that would (i) in the absence of the License, infringe (or,
in the case of pending patent applications, upon issuance, would infringe) at least one claim of the Patent Rights or (ii) use a process
or machine covered by a claim of Patent Rights, whether the claim is issued or pending. The term “Sublicense Agreement”
means an arms-length transaction pursuant to which Company grants an unrelated third party (a “Sublicensee”) access
to Patent Rights and/or Technology. Any delivery of Licensed Products to an End User via an Application Program Interface (API) shall
be considered a Sale of Licensed Product. Under the License Agreement, University will agree that End User License Agreements will not
be treated as Sublicense Agreements. The term “Patent Rights” means all of University’s patent rights represented
by or issuing from: (a) the United States patents and patent applications listed in Exhibit A; (b) any continuation, divisional and re-issue
applications of (a); and (c) any foreign counterparts and extensions of (a) or (b). The term “Affiliate” means a legal
entity that is controlling, controlled by or under common control with Company and that has executed either this Agreement or a written
Joinder Agreement agreeing to be bound by all of the terms and conditions of this Agreement. For purposes of this Section 1.2, the word
“control” means (x) the direct or indirect ownership of more than fifty percent (50%) of the outstanding voting securities
of a legal entity, (y) the right to receive fifty percent (50%) or more of the profits or earnings of a legal entity, or (z) the right
to determine the policy decisions of a legal entity. The term “Field of Use” means the definition agreed to in Appendix
A.

 

    	 	Page 1 of 24	 

    	 

    

 

1.3. Reservation
of Rights by University. University reserves the right to use, and to permit other non-commercial entities to use, the Patent Rights
for educational and research purposes.

 

1.4. U.S.
Government Rights. The parties acknowledge that the United States government retains rights in intellectual property funded under
any grant or similar contract with a Federal agency. The License is expressly subject to all applicable United States government rights,
including, but not limited to, any applicable requirement that products, which result from such intellectual property and are sold in
the United States, must be substantially manufactured in the United States.

 

1.5. Sublicense
Agreement Conditions. The Company’s right to sublicense granted by University under the License is subject to each of the following
conditions:

 

(a) In
each Sublicense Agreement, Company will prohibit the Sublicensee from further sublicensing and require the Sublicensee to comply with
the terms and conditions of this Agreement.

 

(b) Within
thirty (30) days after Company enters into a Sublicense Agreement, Company shall deliver to University a complete and accurate copy of
the entire Sublicense Agreement written in the English language. University’s receipt of the Sublicense Agreement, however, will
constitute neither an approval of the Sublicense Agreement nor a waiver of any right of University or obligation of Company under this
Agreement.

 

(c) In
the event that Company causes or experiences a Trigger Event (as defined in Section 6.4), all payments due to Company from its Affiliates
or Sublicensees under the Sublicense Agreement will, upon notice from University to such Affiliate or Sublicensee, become payable directly
to University for the account of Company. Upon receipt of any such funds, University will remit to Company the amount by which such payments
exceed the amounts owed by Company to University.

 

(d) Company’s
execution of a Sublicense Agreement will not relieve Company of any of its obligations under this Agreement, including its obligation
to use Commercially Reasonable Efforts to develop, commercialize, market and sell Licensed Products and to do so in a manner consistent
with the Development Plan. Company is primarily liable to University for any act or omission of an Affiliate or Sublicensee of Company
that would be a breach of this Agreement if performed or omitted by Company, and Company will be deemed to be in breach of this Agreement
as a result of such act or omission.

 

1.6 Required
Sublicensing. If Company is unable or unwilling to serve or develop a potential market or market territory for which there is another
entity willing to be a Sublicensee, Company will, at University’s request, negotiate in good faith a Sublicense Agreement with
any such entity. University would like Company or Sublicensees to address unmet needs, such as those of neglected patient populations
or geographic areas, giving particular attention to improved therapeutics, diagnostics and agricultural technologies for the developing
world.

 

    	 	Page 2 of 24	 

    	 

    

 

1.7 No
License by Implication. Nothing in this Agreement confers by estoppel implication or otherwise, any license or rights under any University
patent other than the Patent Rights, regardless whether such patents are dominant or subordinate to the Patent Rights.

 

		2.	DILIGENCE

 

2.1 Development
Plan. Company will deliver to University, prior to the Effective Date, a copy of an initial development plan for the Patent Rights
(the “Development Plan”). The purpose of the Development Plan is (a) to demonstrate Company’s capability to
bring the Patent Rights to commercialization, (b) to project the timeline for completing the necessary tasks, and (c) to measure Company’s
progress against the projections. Thereafter, Company will deliver to University an annual updated Development Plan no later than December
1 of each year during the Term. The Development Plan will include all principal activities necessary for Commercially Reasonable Efforts
to commercialize, market and sell Licensed Products. The Development Plan will also include, at a minimum, the information listed in
Exhibit B. Company will use Commercially Reasonable Efforts to develop, commercialize, market and sell Licensed Products and will do
so in a manner consistent with the written Development Plan.

 

2.2 “Commercially
Reasonable Efforts” shall mean, with respect to development of the Patent Rights under this Agreement, the use of efforts and
resources that are consistent with the exercise of prudent scientific and business judgment, as applied by companies with similar resources
to those of the applicable party to other products and services of similar commercial potential, potential market size and facing a similar
potential competitive environment all as measured by the facts and circumstances at the time such efforts are made, which facts and circumstances
may include, but are not limited to, reasonable application of the following: safety and efficacy; proposed product label and indication;
patent protection, including scope, strength of claims, and term; anticipated pricing and reimbursement terms; manufacturing costs and
other costs of goods sold; addressable patient population; addressable market; and potential competition from third parties.

 

2.3 Diligence
Events. The Company will use Commercially Reasonable Efforts to achieve each of the diligence events by the applicable completion
date listed in Appendix A. In addition to usual and reasonable terms for termination, the University reserves the right to terminate
the Agreement if Company fails to achieve one or more diligence events on or before their respective achievement date.

 

2.4 Diligence
Resources. Until the first commercial sale of the first Licensed Product, Company will expend resources in the development and commercialization
of the Licensed Products of amounts not less than the diligence minimums specified in Appendix A in each 12-month period following the
Effective Date. If Company’s total expenditures for development and commercialization of Licensed Products in any 12-month period
do not meet or exceed the applicable diligence minimum, then Company will pay to University the amount of the shortfall. Company will
make any payments of the shortfall to University together with the next Development Plan due to University under Article 2.

 

2.5 A
failure of Company to create and deliver a Development Plan or otherwise satisfy its obligations under this Article 2 will be deemed
a material breach of this Agreement.

 

		3.1	FEES AND ROYALTIES

 

3.1 License
Initiation Fee. In partial consideration of the License, Company will pay to University no later than 30 days from the Effective
Date a non-refundable, non-creditable license initiation fee as specified in Appendix A.

 

    	 	Page 3 of 24	 

    	 

    

 

 3.2 Equity Issuance. Intentionally omitted.

 

 3.3 Dilution Protection. Intentionally omitted.

 

 3.4 Follow-On Investments. Intentionally omitted.

 

3.5 License
Maintenance Fees. In partial consideration of the License, Company will pay to University, on each anniversary of the Effective Date
until the first Sale (as defined in Section 3.8) of the first Licensed Product, the applicable license maintenance fee listed in Appendix
A.

 

3.6
Milestone Payments. In partial consideration of the License, Company will pay to University the applicable milestone payment listed
in Appendix A after achievement of each milestone event for each Licensed Product. Company will provide University with written notice
within thirty (30) days after achieving each milestone.

 

For
clarity, each time a milestone is achieved with respect to a Licensed Product, then any other milestone payments with respect to earlier
milestones that have not yet been paid will be due and payable together with the milestone payment for the milestone that is actually
achieved. For additional clarity, milestones are due and payable on Licensed Products and on products that, upon FDA approval, would
become Licensed Products.

 

3.7 Earned
Royalties. In partial consideration of the License, Company will pay to University a royalty as specified in Appendix A.

 

3.8 Related
Definitions. The term “Sale” means any bona fide transaction for which consideration is received by Company or
its Affiliate or Sublicensee for the sale, use, lease, transfer or other disposition of a Licensed Product to a third party. A Sale is
deemed completed at the time that Company or its Affiliate or Sublicensee receives payment for a Licensed Product. The term “Quarter”
means each three-month period beginning on January 1, April 1, July 1 and October 1. The term “Net Sales” means the
consideration received or the fair market value attributable to, each Sale, less Qualifying Costs that are directly attributable to a
Sale, specifically identified on an invoice or other documentation and actually borne by Company or its Affiliates or Sublicensees. For
purposes of determining Net Sales, the words “fair market value” means the cash consideration that Company or its
Affiliates or Sublicensees would realize from an unrelated buyer in an arm’s length sale of an identical item sold in the same
quantity and at the time and place of the transaction. The term “Qualifying Costs” means: (a) customary discounts
in the trade for quantity purchased or for wholesalers and distributors; (b) credits or refunds for claims or returns that do not exceed
the original invoice amount; (c) prepaid outbound transportation expenses and transportation insurance premiums; and (d) sales and use
taxes and other fees imposed by and indefeasibly paid to a governmental agency.

 

3.9 Minimum
Royalties. In partial consideration of the License, Company will pay on a Quarterly basis to University the applicable minimum royalty
listed in Appendix A, if Company’s actual earned royalties under Section 3.7 for each Quarter after the first Sale following the
first New Drug Applications (“NDA”) or Biologics License Application (“BLA”) approval of a Licensed Product does
not exceed this amount.

 

3.10 Sublicense
Fees. In partial consideration of the License, Company will pay to University a sublicense fee specified in Appendix A of the sum
of all payments plus the fair market value of all other consideration of any kind, received by Company from Sublicensees during the Quarter,
excluding: (a) royalties paid to Company by a Sublicensee based upon Sales or Net Sales by the Sublicensee; (b) equity investments in
Company by a Sublicensee up to the amount of the fair market value of the equity purchased on the date of the investment; (c) loan proceeds
paid to Company by a Sublicensee in an arm’s length, full recourse debt financing to the extent that such loan is not forgiven;
and (d) sponsored research funding paid to Company by a Sublicensee in a bona fide transaction for future research to be performed by
Company.

 

    	 	Page 4 of 24	 

    	 

    

 

3.11 Assignment
Fee. In partial consideration of the License, Company will pay an assignment fee equal to the amount specified in Appendix A within
30 days of each assignment of this Agreement, following procedures for assignment as specified in Section 14.5 herein.

 

		4.	REPORTS
                                            AND PAYMENTS

 

4.1 Royalty
Reports. Within forty-five (45) days after the end of each calendar year following the first Sale of a Licensed Product and
until the first NDA or BLA approval of a Licensed Product, Company will deliver to University a report (the “Royalty
Report”), certified by the chief financial officer of Company, detailing the calculation of all royalties, fees and other
payments due to University for such annual period. The Royalty Report will include, at a minimum, the following information for the
period, each listed by product, by country: (a) the number of units of Licensed Products constituting Sales; (b) the gross
consideration received for Sales; (c) Qualifying Costs, listed by category of cost; (d) Net Sales; (e) the gross amount of any
payments and other consideration received by Company from Sublicensees and the amounts of any deductions permitted by Section 3.8;
(f) the royalties, fees and other payments owed to University, listed by category; and (g) the computations for any applicable
currency conversions. Each Royalty Report will be substantially in the form of the sample report attached as Exhibit C. In addition
to the pre-approval Royalty Reports described above, following the first Sale after the first NDA or BLA approval of a Licensed
Product, Company will commence delivery of the Royalty Reports to University within forty-five (45) days after the end of each
Quarter.

 

4.2 Payments.
Company will pay all royalties, fees and other payments due to University under Sections 3.6, 3.7, 3.8, 3.10 within forty-five (45)
days after the end of the relevant annual or Quarter period in which the royalties, fees or other payments accrued.

 

4.3 Records.
Company will maintain, and will cause its Affiliates and Sublicensees to maintain, complete and accurate books, records and related
background information to verify Sales, Net Sales, and all of the royalties, fees, and other payments due or paid under this Agreement,
as well as the various computations reported under Section 4.1. The records for each annual or Quarter period will be maintained for
at least five (5) years after submission of the applicable report required under Section 4.1.

 

4.4 Audit
Rights. Upon reasonable prior written notice to Company, Company and its Affiliates and Sublicensees will provide University and
its accountants with access to all of the books, records and related background information required by Section 4.3 to conduct a review
or audit of Sales, Net Sales, and all of the royalties, fees, and other payments payable under this Agreement. Access will be made available:
(a) during normal business hours; (b) in a manner reasonably designed to facilitate University’s review or audit without unreasonable
disruption to Company’s business; and (c) no more than once each calendar year during the Term (as defined below) and for a period
of five (5) years thereafter. Within forty-five (45) days of completion of the audit, Company will pay to University the amount of any
underpayment determined by the Auditor, plus accrued interest as defined in Section 4.8. If the review or audit determines that Company
has underpaid any payment by five percent (5%) or more, then Company within 45 days will also pay the costs and expenses of University
and its accountants in connection with the review or audit.

 

    	 	Page 5 of 24	 

    	 

    

 

4.5 Information
Rights. Until the closing of the Company’s initial public offering, Company will provide to University, at least as frequently
as the following reports are distributed to the Board of Directors or management of Company, copies of all Board and managerial reports
that relate to the Patent Rights or the Licensed Products.

 

4.6 Currency.
All dollar amounts referred to in this Agreement are expressed in United States dollars. All payments will be made in United States
dollars. If Company receives payment from a third party in a currency other than United States dollars for which a royalty or fee is
owed under this Agreement, then (a) the payment will be converted into United States dollars at the conversion rate for the foreign currency
as published in the eastern edition of the Wall Street Journal as of the last business day of the annual or Quarter period in which the
payment was received by Company, and (b) the conversion computation will be documented by Company in the applicable report delivered
to University under Section 4.1.

 

4.7 Place
of Payment. All payments by Company are payable to “The George Washington University” and will be made to the following
addresses:

 

By
Check:

 

Send
notice of check to: patent@gwu.edu

 

Mail
Check to:

The
George Washington University

Technology Commercialization Office

ATTN: TCO Program Manager

1922
F ST NW, 4TH FL

Washington,
DC 20052

 

By
Electronic Transfer:

 

For
Patent Cost Reimbursements please include:

“Funds
should be credited to Alias 111406, Account 47571”

 

For
License Fees and Royalties please include:

“Funds
should be credited to Alias 100035, Account 47514.”

 

	Beneficiary
    Account Number:	5303
    55 3334
	Beneficiary
    Account Type (for ACH):	Checking
	Beneficiary
    Account Name:	The
    George Washington University
	Beneficiary
    Address:	1918
    F ST NW
	 	Washington,
    DC 20052
	 	 
	Bank’s
    Name:	PNC
    Bank, N.A.
	Bank’s
    Address:	800
    17th ST, NW
	 	Washington,
    DC 20006
	ABA
    # (for ACH):	054
    000 030
	ABA
    # (for Wires):	0310
    000 53
	SWIFT:	PNCCUS33

 

    	 	Page 6 of 24	 

    	 

    

 

4.8 Interest.
All amounts that are not paid by Company when due will accrue interest from the date due until paid at a rate equal to one and one-half
percent (1.5%) per month (or the maximum allowed by law, if less). The payment of such interest shall not foreclose University from exercising
any other rights it may have as a consequence of the lateness of any payment.

 

		5.	CONFIDENTIALITY
                                            AND USE OF UNIVERSITY’S NAME

 

5.1 Confidentiality.
Except as specifically permitted hereunder, Parties hereby agree to hold in confidence and not use on behalf of itself or others
all technology, data, samples, technical and economic information (including economic terms hereof), commercialization, clinical and
research strategies, know-how and trade secrets provided by the other party (the “Disclosing Party”) (collectively the “Confidential
Information”), except that the term “Confidential Information” shall not include:

 

	 	(a)	information
    that is or becomes part of the public domain through no fault of the non-Disclosing Party;
	 	 	 
	 	(b)	information
    that is obtained after the Effective Date by the non-Disclosing Party or one of its Affiliates from any third party which is lawfully
    in possession of such Confidential Information and not in violation of any contractual or legal obligation to the Disclosing Party
    with respect to such Confidential Information;
	 	 	 
	 	(c)	information
    that is known to the non-Disclosing Party or one or more of its Affiliates prior to the disclosure by the Disclosing Party, as evidenced
    by the non-Disclosing Party’s written records; and
	 	 	 
	 	(d)	information
    which has been independently developed by the non-Disclosing Party without the aid or use of Confidential information as shown by
    competent written evidence.

 

Notwithstanding
the foregoing, (i) the party receiving the Confidential Information may disclose the Disclosing Party’s Confidential Information
to the extent required to comply with, a court or administrative subpoena or a lawful court order provided that the receiving party first
uses its best efforts to obtain an order preserving the confidentiality of the information of the Disclosing Party and provided the receiving
party gives the Disclosing Party timely notice of the contemplated disclosure to give the Disclosing Party an opportunity to intervene
to preserve the confidentiality of the information, (ii) the receiving party may disclose the Disclosing Party’s Confidential Information
to third parties engaged as legal advisors, (iii) University may disclose Confidential Information to a third party with whom University
has monetized or with whom it is seeking to monetize its rights to receive all or a portion of payments under this Agreement and to placement
agents or structuring agents engaged for monetization, provided that any such third party is bound by written agreement to respect the
Confidential Information in a manner substantially similar as set forth in this Agreement.

 

Upon
prior review of the University, Company may disclose in a patent application or the prosecution thereof, any Confidential Information
necessary to obtain or secure patent protection of the commercialized products or processes.

 

    	 	Page 7 of 24	 

    	 

    

 

Each
Party intends that to the extent that any confidential information is disclosed under this Agreement, such Confidential Information does
not contain export control-listed technology or technical data identified on any US export control list, including the Commerce Control
List (CCL) set forth in the Export Administration Regulations at 15 CFR Part 774 and the US Munitions List (USML) set forth in the International
Traffic in Arms Regulations at 22 CFR Part 121. Prior to one Party providing the other Party with export control-listed information,
the disclosing Party will provide advance written notice to the receiving Party regarding the export classification of such information,
and the receiving Party must issue written approval to the disclosing Party prior to the transmission of such information to the receiving
Party. Notwithstanding any other provision of this Agreement, the receiving Party is under no obligation to accept export control-listed
information from the disclosing Party.

 

5.2 Use
of University’s Name. Company and its Affiliates, Sublicensees, employees, and agents may not use the name, logo, seal, trademark,
or service mark (including any adaptation of them) of University or any University school, organization, employee, student or representative,
without the prior written consent of University.

 

		6.	TERM
                                            AND TERMINATION

 

6.1 Term.
This Agreement will commence on Effective Date and terminate upon the later of: (a) the expiration or abandonment of the last patent
to expire or become abandoned of the Patent Rights; or (b) ten (10) years after the first Sale of the first Licensed Product if no patent
has issued from the Patent Rights (as the case may be, the “Term”).

 

6.2 Early
Termination by Company. Company may terminate this Agreement at any time effective upon completion of each of the following conditions:
(a) providing at least sixty (60) days prior written notice to University of such intention to terminate; (b) ceasing to make, have made,
use, import, offer for sale and sell all Licensed Products; (c) terminating all Sublicense Agreements and causing all Affiliates and
Sublicensees to cease making, having made, using, importing, offering for sale and selling all Licensed Products; and (d) paying all
amounts owed to University under this Agreement between University and Company related to the Patent Rights, through the effective date
of termination.

 

6.3 Early
Termination by University. University may terminate this Agreement if: (a) Company is more than thirty (30) days late in paying to
University any amounts owed under this Agreement and does not immediately pay University in full, including accrued interest, upon demand
(a “Payment Default”); (b) other than a Payment Default, Company or its Affiliate or Sublicensee breaches this Agreement
and does not cure the breach within forty-five (45) days after written notice of the breach; or (c) Company or its Affiliate or Sublicensee
experiences a Trigger Event.

 

6.4 Trigger
Event. The term “Trigger Event” means any of the following: (a) a material default by Company under any Agreement
between Company and University related to the Patent Rights (whether entered prior to, contemporaneous with, or subsequent to the Effective
Date) that is not cured during any specified cure periods; (b) if Company or its Affiliate or Sublicensee (i) becomes insolvent, bankrupt
or generally fails to pay its debts as such debts become due, (ii) is adjudicated insolvent or bankrupt, (iii) admits in writing its
inability to pay its debts, (iv) suffers the appointment of a custodian, receiver or trustee for it or its property and, if appointed
without its consent, not discharged within thirty (30) days, (v) makes an assignment for the benefit of creditors, or (vi) suffers proceedings
being instituted against it under any law related to bankruptcy, insolvency, liquidation or the reorganization, readjustment or release
of debtors and, if contested by it, not dismissed or stayed within ten (10) days; (c) the institution or commencement by Company or its
Affiliate or Sublicensee of any proceeding under any law related to bankruptcy, insolvency, liquidation or the reorganization, readjustment
or release of debtors; (d) the entering of any order for relief relating to any of the proceedings described in Section 6.4(b) or (c)
above; (e) the calling by Company or its Affiliate or Sublicensee of a meeting of its creditors with a view to arranging a composition
or adjustment of its debts; (f) the act or failure to act by Company or its Affiliate or Sublicensee indicating its consent to, approval
of or acquiescence in any of the proceedings described in Section 6.4(b) – (e) above; (g) failure by Company to pay patent counsel
pursuant to the terms of a Client and Billing Agreement, if any; or (h) the commencement by Company of any action against University,
including an action for declaratory judgment, to declare or render invalid or unenforceable the Patent Rights, or any claim thereof.

 

    	 	Page 8 of 24	 

    	 

    

 

6.5 Effect
of Termination. Upon the termination of this Agreement for any reason: (a) the License terminates; (b) Company and all its Affiliates
and Sublicensees will cease all making, having made, using, importing, offering for sale and selling all Licensed Products, except to
extent permitted by Section 6.6; (c) Company will pay to University all amounts, including accrued interest, owed to University under
this Agreement and any Sponsored Research Agreement related to the Patent Rights, through the date of termination, including royalties
on Licensed Products invoiced or shipped through the date of termination and any sell off period permitted by Section 6.6, whether or
not payment is received prior to termination or expiration of the sell-off period permitted by Section 6.6; (d) Company will, at University’s
request, return or destroy all confidential information of University and provide to University one complete copy of all data with respect
to Licensed Products generated by Company during the Term that will facilitate the further development of the technology licensed under
this Agreement; and (e) in the case of termination under Section 6.3, all duties of University and all rights (but not duties) of Company
under this Agreement immediately terminate without further action required by either University or Company.

 

6.6 Inventory
& Sell Off. Upon the termination of this Agreement for any reason, Company will cause physical inventories to be taken immediately
of: (a) all completed Licensed Products on hand under the control of Company or its Affiliates or Sublicensees; and (b) such Licensed
Products as are in the process of manufacture and any component parts on the date of termination of this Agreement. Company will deliver
promptly to University a copy of the written inventory, certified by an officer of the Company. Upon termination of this Agreement for
any reason, Company will promptly remove, efface or destroy all references to University from any advertising, labels, web sites or other
materials used in the promotion of the business of Company or its Affiliates or Sublicensees, and Company and its Affiliates and Sublicensees
will not represent in any manner that it has rights in or to the Patent Rights or the Licensed Products. Upon the termination of this
Agreement for any reason other than pursuant to Section 6.3(a) or (c), Company may sell off its inventory of Licensed Products existing
on the date of termination for a period of six (6) months and pay University royalties on Sales of such inventory within thirty (30)
days following the expiration of such six (6) month period.

 

6.7 Survival.
Company’s obligation to pay all amounts, including accrued interest, owed to University under this Agreement will survive the
termination of this Agreement for any reason. Sections 3.4, 14.10, and 14.11 and Articles 4, 5, 6, 9, 10, and 11 will survive the termination
of this Agreement for any reason in accordance with their respective terms.

 

    	 	Page 9 of 24	 

    	 

    

 

		7.	PATENT
                                            PROSECUTION AND MAINTENANCE

 

7.1 Patent
Control. University controls the preparation, prosecution, and maintenance of the Patent Rights and the selection of patent counsel,
with input from Company. For purposes of this Article 7, the word “maintenance” includes any interferences, claims,
or other proceedings, in any forum (including litigation in a lower or appellate court), brought by University, Company, a third party,
or the United States Patent and Trademark Office involving the Patent Rights, any reexamination, review (such as inter partes reviews
or post grant reviews), or validity challenge of the Patent Rights, and any requests by University or Company that the United States
Patent and Trademark Office reexamine or reissue any patent in the Patent Rights.

 

7.2 Payment
and Reimbursement. Company agrees that the University has incurred historically accrued attorney fees, expenses, official fees and
all other charges accumulated and invoiced to the University incident to the preparation, filing, prosecution and maintenance of the
Patent Rights (the “Past Patent Expenses”) as specified in Appendix A. By the Past Patent Expenses Reimbursement Date identified
in Appendix A, Company will reimburse University for Past Patent Expenses. For patent expenses not included in Appendix A, including,
but not limited to those incurred during the Term, Company will reimburse University for all documented attorneys’ fees, expenses,
official fees and all other charges accumulated or invoiced to the University incident to the preparation, filing, prosecution, and maintenance
of the Patent Rights, within thirty (30) days after Company’s receipt of invoices for such fees, expenses and charges. University
reserves the right to require the Company to provide a deposit in advance of incurring out of pocket patent expenses estimated by counsel
to exceed $2,500. If Company fails to reimburse patent expenses under Paragraph 7.2, or provide a requested deposit with respect to a
Patent Right, then University will be free at its discretion and expense to either abandon such applications or patents related to such
Patent Right or to continue such preparation, prosecution and/or maintenance activities and to the extent University has pursued protection
of any patent rights associated with such patent action will remain subject to the license granted under this Agreement, at University’s
sole discretion. Any abandonment of patents or applications under Patent Rights by the University shall not affect Company’s obligation
to pay prior royalties due under this Agreement that were accrued prior to the date of abandonment of patents or applications for such
the Patent Rights.

 

7.3 Patent
Marking. Company shall include appropriate marking on all Licensed Products made, sold or otherwise disposed of by Company, which
patent marking will be in accordance with appropriate patent marking laws of the United States and any other country in which such the
Licensed Products are made, sold or otherwise disposed of. Company will cause its Affiliates and/or Sublicensees to similarly mark any
Licensed Products made, sold or otherwise disposed of by such Affiliates or Sublicensees. The patent marking obligations required by
this Section 7.3 shall apply to issued patents and to pending claims, and in either case covering Licensed Products.

		8.	INFRINGEMENT

 

8.1 Notice.
Company and University will notify each other promptly, but in no event later than five (5) days after any apparent infringement
of the Patent Rights that comes to their attention. Company and University will consult each other in a timely manner concerning any
appropriate response to the apparent infringement.

 

8.2 Prosecution
of Infringement. Company may prosecute any infringement of the Patent Rights at Company’s expense, including defending against
any counterclaims or cross claims brought by any party against Company or University regarding the Patent Rights and defending against
any claim that the Patent or Patent Rights are invalid in the course of any infringement action or in a declaratory judgment action.
University reserves the right to intervene voluntarily and join Company in any such infringement litigation. If University chooses not
to intervene voluntarily, but University is a necessary party to the action brought by Company, then Company may join University in the
infringement litigation. If Company decides not to prosecute any infringement of the Patent Rights, then University may elect to prosecute
such infringement independently of Company in University’s sole discretion.

 

    	 	Page 10 of 24	 

    	 

    

 

8.3 Cooperation.
In any litigation under this Article 8, either party, at the request and sole expense of the other party, will cooperate to the fullest
extent reasonably possible. This Section 8.3 will not be construed to require either party to undertake any activities, including legal
discovery, at the request of any third party, except as may be required by lawful process of a court of competent jurisdiction. If, however,
either party is required to undertake any activity, including legal discovery, as a right of lawful process of a court of competent jurisdiction,
then Company will pay all expenses incurred by Company and by University.

 

8.4 Control
of Litigation. Company controls any litigation or potential litigation involving the prosecution of infringement claims regarding
the Patent Rights in which University is not a party, including the selection of counsel, all with input from University. If such litigation
involves a challenge to the validity or enforceability of any claim within United States Patent Rights, University will have the absolute
right, in its sole discretion, to be involved in such challenge with counsel of its choice and at its own expense. Company must not settle
or compromise any such litigation in a manner that imposes any obligations or restrictions on University (including, without limitation,
injunctive or non-monetary relief affecting University or an admission of invalidity of unenforceability of any United States Patent
Right) or grants any rights to the Patent Rights, other than any permitted Sublicense Agreements, without University’s prior written
permission. University controls any litigation or potential litigation involving the prosecution of infringement claims regarding the
Patent Rights in which University has elected to prosecute the infringement independently of Company or has voluntarily or involuntarily
joined Company in the infringement litigation, including the selection of counsel, all with input from Company. In all instances in which
University is a party, University reserves the right to select its own counsel. If University is involuntarily joined as a party, University
retains the right to select its own counsel, but Company will be responsible for all litigation expenditures as set forth in Section
8.5.

 

8.5 Recoveries
from Litigation. If Company prosecutes any claims of actual or alleged infringement of the Patent Rights either without University
as a party or with University involuntarily joined as a party, then Company will reimburse University for University’s litigation
expenditures, including any attorneys’ fees, expert fees, expenses, official fees and other charges incurred by University, even
if there are no financial recoveries from the infringement action. Company will reimburse University within thirty (30) days after receiving
each invoice from University. After reimbursing University for its expenditures, Company will next use the financial recoveries from
such claims, if any, (a) first, to reimburse Company for its litigation expenditures; and (b) second, to retain any remainder but to
treat the remainder as either (i) Net Sales for the purpose of determining the royalties due to University under Section 3.7 or (ii)
Sublicense Agreement consideration for the purpose of determining the sublicense fees due to University under Section 3.10, whichever
would result in a larger payment to University. If Company prosecutes any claims of actual or alleged infringement of the Patent Rights
with University joined as a voluntary party, then any financial recoveries from such claims will be (x) first, shared between Company
and University in proportion with their respective shares of the aggregate litigation expenditures by Company and University; and (y)
second, shared equally by Company and University as to any remainder after Company and University have fully recovered their aggregate
litigation expenditures. If University prosecutes any claims of actual or alleged infringement of the Patent Rights independent of Company,
then University will prosecute such infringement at University’s expense and will retain any financial recoveries in their entirety.

 

    	 	Page 11 of 24	 

    	 

    

 

		9.	DISCLAIMER
                                            OF WARRANTIES

 

9.1 Disclaimer. THE
PATENT RIGHTS, LICENSED PRODUCTS AND ANY OTHER TECHNOLOGY LICENSED UNDER THIS AGREEMENT ARE PROVIDED ON AN “AS IS”
BASIS. UNIVERSITY MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF ACCURACY,
COMPLETENESS, PERFORMANCE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, COMMERCIAL UTILITY, NON-INFRINGEMENT, ABSENCE OF
LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, OR TITLE. Specifically, and not in limitation of the foregoing, University
makes no representation or warranty (i) regarding the validity or scope of the Patent Rights, and (ii) that the exploitation of the
Patents or Patent Rights or Licensed Products will not infringe on any patents or other intellectual property of any third
party.

 

		10.	LIMITATION
                                            OF LIABILITY

 

10.1 Limitation
of Liability. UNIVERSITY WILL NOT BE LIABLE TO COMPANY, ITS AFFILIATES, SUBLICENSEES, SUCCESSORS OR ASSIGNS, OR ANY THIRD PARTY WITH
RESPECT TO ANY CLAIM: ARISING FROM COMPANY’S USE OF THE PATENT RIGHTS, LICENSED PRODUCTS OR ANY OTHER TECHNOLOGY LICENSED UNDER
THIS AGREEMENT; OR ARISING FROM THE DEVELOPMENT, TESTING, MANUFACTURE, USE OR SALE OF LICENSED PRODUCTS. UNIVERSITY WILL NOT BE LIABLE
TO COMPANY, ITS AFFILIATES, SUBLICENSEES, SUCCESSORS OR ASSIGNS, OR ANY THIRD PARTY FOR LOST PROFITS, BUSINESS INTERRUPTION, OR INDIRECT,
SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY KIND.

 

		11.	INDEMNIFICATION

 

11.1 Indemnification.
Company will defend, indemnify, and hold harmless each Indemnified Party from and against any and all Liabilities with respect to
an Indemnification Event.

 

The
term “Indemnified Party” means each of University and its trustees, officers, faculty, students, employees, contractors,
and agents.

 

The
term “Liabilities” means all damages, awards, deficiencies, settlement amounts, defaults, assessments, fines, dues,
penalties, costs, fees, liabilities, obligations, taxes, liens, losses, lost profits and expenses (including, but not limited to, court
costs, interest and reasonable fees of attorneys, accountants and other experts) that are incurred by an Indemnified Party or awarded
or otherwise required to be paid to third parties by an Indemnified Party.

 

The
term “Indemnification Event” means any Claim against one or more Indemnified Parties arising out of or resulting from:

 

(a) the
development, testing, use, manufacture, promotion, sale or other disposition of any Patent Rights or Licensed Products by Company, its
Affiliates, Sublicensees, assignees or vendors or third parties, including, but not limited to,

 

(i) any
product liability or other Claim of any kind related to use by a third party of a Licensed Product,

 

    	 	Page 12 of 24	 

    	 

    

 

(ii) any
Claim by a third party that the practice of any of the Patent Rights or the design, composition, manufacture, use, sale or other disposition
of any Licensed Product infringes or violates any patent, copyright, trade secret, trademark or other intellectual property right of
such third party, and

 

(iii) any
Claim by a third party relating to clinical trials or studies for Licensed Products;

 

 (b) any material breach of this Agreement by Company or its Affiliates or Sublicensees;

 

(c) any
Claim arising from, relating to or in connection with Company’s capital or debt raising activities, including but not limited to
its private placement memorandum, stock purchase agreements, convertible purchase arrangements and/or debt instruments, and/or Company’s
written or oral statements and/or representations made about University in all such capital or debt raising activities; and

 

 (d) the enforcement of this Article 11 by any Indemnified Party.

 

The
term “Claim” means any charges, complaints, actions, suits, proceedings, hearings, investigations, claims or demands.

 

11.2 Reimbursement
of Costs. Company will pay directly all Liabilities incurred for defense or negotiation of any Claim or will reimburse University
for all documented Liabilities incident to the defense or negotiation of any Claim within thirty (30) days after Company’s receipt
of invoices for such fees, expenses and charges.

 

11.3 Control
of Litigation. Company controls any litigation or potential litigation involving the defense of any Claim, including the selection
of counsel, with input from University. University reserves the right to protect its interest in defending against any Claim by selecting
its own counsel, with any attorneys’ fees and litigation expenses paid for by Company, pursuant to Sections 11.1 and 11.2.

 

11.4 Other
Provisions. Company will not settle or compromise any Claim giving rise to Liabilities in any manner that imposes any restrictions
or obligations on University (including, without limitation, injunctive or non-monetary relief affecting University or an admission of
invalidity of unenforceability of any United States Patent Right) or grants any rights to the Patent Rights or the Licensed Products
without University’s prior written consent. If Company fails or declines to assume the defense of any Claim within thirty (30)
days after notice of the Claim, or fails to reimburse an Indemnified Party for any Liabilities pursuant to Sections 11.1 and 11.2 within
the thirty (30) day time period set forth in Section 11.2, then University may assume the defense of such Claim for the account and at
the risk and expense of Company, and any Liabilities related to such Claim will be conclusively deemed a liability of Company and Company
shall reimburse University for all Liabilities in accordance with Section 11.1. The indemnification rights of the Indemnified Parties
under this Article 11 are in addition to all other rights that an Indemnified Party may have at law, in equity or otherwise.

 

    	 	Page 13 of 24	 

    	 

    

 

		12.	INSURANCE

 

12.1 Coverages.
Company will procure and maintain insurance policies for the following coverages with respect to personal injury, bodily injury and
property damage arising out of Company’s performance under this Agreement: (a) during the Term, comprehensive general liability,
including broad form and contractual liability, in a minimum amount of $2,000,000 combined single limit per occurrence and in the aggregate;
(b) prior to the commencement of clinical trials involving Licensed Products, clinical trials coverage in a minimum amount of $3,000,000
combined single limit per occurrence and in the aggregate; and (c) prior to the Sale of the first Licensed Product, product liability
coverage, in a minimum amount of $2,000,000 combined single limit per occurrence and in the aggregate. University may review periodically
the adequacy of the minimum amounts of insurance for each coverage required by this Section 12.1, and University reserves the right to
require Company to adjust the limits accordingly. The required minimum amounts of insurance do not constitute a limitation on Company’s
liability or indemnification obligations to University under this Agreement.

 

12.2 Other
Requirements. The policies of insurance required by Section 12.1 will be issued by an insurance carrier with an A.M. Best rating
of “A” or better and will name University as an additional insured with respect to Company’s performance under this
Agreement. Company will provide University with insurance certificates evidencing the required coverage within thirty (30) days after
the Effective Date and the commencement of each policy period and any renewal periods. Each certificate will provide that the insurance
carrier will notify University in writing at least thirty (30) days prior to the cancellation or material change in coverage.

 

		13.	COMPANY’S
                                            REPRESENTATIONS AND WARRANTIES

 

13.1 Organization,
Good Standing and Qualification. Company is a corporation, duly organized, validly existing and in good standing under the laws of
the State of Nevada and has all requisite corporate power and authority to conduct on its business, to execute and deliver this Agreement,
and to consummate the transactions contemplated by this Agreement.

 

13.2 Authorization.
All corporate action on the part of Company, its officers, directors and members or stockholders necessary for the authorization,
execution and delivery of this Agreement, the performance of all obligations of Company hereunder and this Agreement, when executed and
delivered by Company, will constitute valid and legally binding obligations of Company, enforceable against Company in accordance with
its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and other laws
of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability
of specific performance, injunctive relief, or other equitable remedies.

 

		14.	ADDITIONAL
                                            PROVISIONS

 

14.1 Independent
Contractors. The parties are independent contractors. Nothing contained in this Agreement is intended to create an agency, partnership
or joint venture between the parties. At no time will either party make commitments or incur any charges or expenses for or on behalf
of the other party.

 

14.2 No
Discrimination. Neither University nor Company will discriminate against any employee or applicant for employment because of race,
color, sex, sexual or affectional preference, age, religion, national or ethnic origin, handicap, or veteran status.

 

14.3 Compliance
with Laws. Company must comply with all prevailing laws, rules and regulations that apply to its activities or obligations under
this Agreement. For example, Company will comply with applicable United States export laws and regulations, including, but not limited
to, the export laws and regulations of the United States, and will not sell, transfer, export or re-export any such Licensed Products
or information to any persons or any third parties with regard to which there exist grounds to suspect or believe that they are violating
such laws, and will comply with applicable laws governing the marketing and promotion of pharmaceutical products. The transfer of certain
technical data and commodities may require a license from the applicable agency of the United States government and/or written assurances
by Company that Company will not export data or commodities to certain foreign countries without prior approval of the agency. University
does not represent that no license is required, or that, if required, the license will issue.

 

    	 	Page 14 of 24	 

    	 

    

 

14.4 Modification,
Waiver & Remedies. This Agreement may only be modified by a written amendment that is executed by an authorized representative
of each party. Any waiver must be express and in writing. No waiver by either party of a breach by the other party will constitute a
waiver of any different or succeeding breach. Unless otherwise specified, all remedies are cumulative.

 

14.5 Assignment
& Hypothecation. Company may not assign this Agreement or any part of it, either directly or by merger or operation of law, without
the prior written consent of University. University will not unreasonably withhold or delay its consent, provided that: (a) at least
thirty (30) days before the proposed transaction, Company gives University written notice and such background information as may be reasonably
necessary to enable University to give an informed consent; (b) the assignee agrees in writing to be legally bound by the terms of this
Agreement; (c) the assignee agrees to deliver to University an updated Development Plan within sixty (60) days after the closing of the
proposed transaction; (d) Company provides University with a copy of assignee’s affirmation of the obligations under (c) and (d);
(e) Company provides University with a copy of the assignment agreement between Company and the assignee; and (f) University receives
from Company the assignment fee per Section 3.11. Any permitted assignment will not relieve Company of responsibility for performance
of any obligation of Company that has accrued at the time of the assignment. Company will not grant a security interest in the License
or this Agreement during the Term. Any prohibited assignment or security interest will be null and void. Any assignment made where the
foregoing conditions (b) through (f) of this Section are not met shall be deemed null and void.

 

14.6 Notices. Any
notice or other required communication (each, a “Notice”) must be in writing, addressed to the party’s respective
Notice Address listed on the signature page, and delivered: (a) personally; (b) by certified mail, postage prepaid, return receipt
requested; (c) by recognized overnight courier service, charges prepaid; or (d) by facsimile. A Notice will be deemed received: if
delivered personally, on the date of delivery; if mailed, five (5) days after deposit in the United States mail; if sent via
courier, one (1) business day after deposit with the courier service; or if sent via facsimile, upon receipt of confirmation of
transmission provided that a confirming copy of such Notice is sent by certified mail, postage prepaid, return receipt
requested.

 

14.7 Severability
& Reformation. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction,
then the remaining provisions of this Agreement will remain in full force and effect. Such invalid or unenforceable provision will be
automatically revised to be a valid or enforceable provision that comes as close as permitted by law to the parties’ original intent.

 

14.8 Headings
& Counterparts. The headings of the articles and sections included in this Agreement are inserted for convenience only and are
not intended to affect the meaning or interpretation of this Agreement. This Agreement may be executed in several counterparts, all of
which taken together will constitute the same instrument.

 

14.9 Governing
Law. This Agreement and all amendments, exhibits, modifications, alterations, or supplements hereto, and the rights of the parties
hereunder, shall be construed under and governed by the laws of the District of Columbia, without regard to principles of conflict of
laws thereof which may require the application of the law of another jurisdiction.

 

    	 	Page 15 of 24	 

    	 

    

 

14.10 Dispute
Resolution. If a dispute arises between the parties concerning any right or duty under this Agreement, then the parties will confer,
as soon as practicable, in an attempt to resolve the dispute. If the parties are unable to resolve the dispute amicably, then the parties
will submit to the exclusive jurisdiction of, and venue in, the state and Federal courts located in the Washington, DC with respect to
all disputes arising under this Agreement.

 

14.11 Integration.
This Agreement with its Appendix and Exhibits and the Confidentiality Agreement, contain the entire agreement between the parties with
respect to the Patent Rights and the License and supersede all other oral or written representations, statements, or agreements with
respect to such subject matter, including but not limited to the Term Sheet.

 

14.12 Signatures.
The parties acknowledge and agree that this Agreement may be executed or accepted using electronic or facsimile signatures, and that
such a signature shall be legally binding to the same extent as a written signature by a party’s authorized representative. Each
party waives any legal requirement that this Agreement be embodied, stored or reproduced in tangible media, and agrees that an electronic
reproduction shall be given the same legal force and effect as a signed writing.

 

[SIGNATURES
TO FOLLOW]

 

    	 	Page 16 of 24	 

    	 

    

 

Each
party has caused this Agreement to be executed by its duly authorized representative.

 

	THE
    GEORGE WASHINGTON UNIVERSITY	 	BULLFROG
    Al HOLDINGS, INC.
	 	 	 	 	 
	By:	 	 	By:	 
	Name:	MarkDia	 	Name:	Vin
    Singh
	Title:	Executive
                                            Vice President and CFO
	 	Title:	Founder
    and CEO
	Date:	1/12/2022	 	Date:	116122

 

	Addresses:

     

    Technology
    Commercialization Office

    The George Washington University

    1922
F ST NW, 4TH Floor

    Washington
DC. 20052

    Attention:
    TCO Operations Coordinator

     

    Required
    copy to:

    

    The
    George Washington University

    Office
of the Genera\ Counsel

    2000 Pennsylvania Avenue NW

    Suite 305

    Washington,
DC 20006

    Attention:
    General Counsel

    202-994-6503

    gwlegal@gwu.edu

    
	 

                                                                      

                                                                     Bullfrog
                                            Al Holdings, Inc.

                                                                     325
Ellington Blvd., #317

    Gaithersburg,
    MD 20878

    Attention: Alan Alfano

    Phone:
301-752-4432

    Email:
    alan.a@bullfrogai.com

     

 

    	 	Page 17 of 24	 

    	 

    

 

APPENDIX
A – Key License Terms

 

	1.	License
                                            Grant.

 

	 	a.	Technology:
    GW Tech ID# 020-030-Mishra entitled, “Inhibition of SPTBN1 to treat Obesity/NASH and Obesity/NASH-driven cancer”, protected
    by the patents and patent applications listed in Exhibit A, including data and know-how.
	 	 	 
	 	b.	Exclusivity:
    exclusive
	 	 	 
	 	c.	Territory:
    worldwide
	 	 	 
	 	d.	Field
    of Use: USE OF THE TECHNOLOGY FOR TREATMENT OF HUMAN DISEASES (INCLUDING IN CLINICAL TRIALS), including but not limited to: cancers,
    obesity, non- alcoholic steatohepatitis (NASH), non-alcoholic fatty liver disease (NAFLD).

 

	2.	Diligence.

 

	 	a.	Diligence
    Minimums: First year: $150,000. Second year: $300,000. Third year and thereafter:
	 	 	$500,000.
	 	 	 
	 	b.	Diligence
    Events: listed in the table below

 

	DILIGENCE
    EVENT	 	COMPLETION
    DATE
	Receipt
    of IND approval for a Licensed Product	 	July
    1, 2023
	Completion
    of first-in-human clinical trial (e.g., Phase 0 or Phase 1 CT for hepatocellular carcinoma or obesity)	 	July
1, 2024

	Completion
    of Phase 2 clinical trial for lead indication	 	January
    1, 2026
	Completion
    of Phase 3 or registrational clinical trial for lead indication	 	July
    1, 2029
	Submission
    of application for NDA/BLA approval for lead indication	 	January
    1, 2030
	First
    twenty (20) million dollars (USD $20,000,000) net sales of a Licensed Product in the United States	 	July
    1, 2032
	Completion
    of a first clinical trial either for additional indications after the lead indication, or from a non-US regulatory agency	 	January
    1, 2027
	Completion
    of a registrational clinical trial either for additional indications after the lead indication, or from a non-US regulatory agency	 	January
    1, 2032
	Filing
    of an application for approval to sell a Licensed Product either for non-cancer use, or from the EMA	 	July
    1, 2032
	First
    Sale of a Licensed Product outside of the United States	 	January
    1, 2034

 

	3.	Fees
                                            and Royalties.

 

	 	a.	License
    Initiation Fee: $20,000

 

    	 	Page 18 of 24	 

    	 

    

 

	 	b.	License
    Maintenance Fees: First year: none. Second year: none. Third year: $10,000. Fourth year and thereafter: $20,000.
	 	 	 
	 	c.	Milestone
    Payments: Per table below.

 

	MILESTONE	 	PAYMENT	 
	Completion of first-in-human clinical trial (e.g., Phase 0 or Phase 1 CT for hepatocellular carcinoma or obesity)	 	$	110,000	 
	Completion of Phase 2 clinical trial for lead indication	 	$	250,000	 
	Receipt of NDA/BLA approval for lead indication	 	$	500,000	 
	First twenty (20) million dollars (USD $20,000,000) net sales of a Licensed Product in the United States	 	$	1,000,000	 
	Filing of an application for approval to sell a Licensed Product either for non-cancer use, or from the EMA	 	$	200,000	 

 

	 	d.	Earned
    Royalties: 3% of Net Sales.
	 	 	 
	 	e.	Minimum
    Royalties: Minimum royalties come into effect after the first Sale following NDA or BLA approval of a Licensed Product First 4 Quarters
    = $10,000 per quarter. Next 4 Quarters = $25,000 per quarter. All Quarters thereafter = $50,000 per quarter.
	 	 	 
	 	f.	Sublicense
    Fee: per the table below.

 

	PERIOD	 	SUBLICENSE FEE	 
	Until first IND acceptance	 	 	25	%
	Until first patient treated in a Phase 2 clinical trial for lead indication.	 	 	12	%
	Until completion of Phase 2 clinical trial for lead indication	 	 	9	%
	Thereafter	 	 	5	%

 

	 	g.	Assignment
    Fee: The higher of either: (i) 5% of all consideration received by Company in conjunction with the assignment; or (ii) $75,000 in
    the event that the assignment is made after Company has paid a Sublicense Fee of at least $300,000 to University to comply with Section
    3.10 of the Agreement.

 

	4.	Patent
                                            Costs.

 

	 	a.	Past
    Patent Expenses: Past Patent Expenses billed to University through September 22, 2021 that have not yet been reimbursed amount to
    $6,550.00 (see invoice in Exhibit D). Past Patent Expenses may also include work incurred by University prior to Effective Date,
    but that has not been billed to University by Effective Date.
	 	 	 
	 	b.	By
    thirty (30) days after the Effective Date (the “Past Patent Expenses Reimbursement Date”) Company will reimburse University
    for all patent and legal expenses with respect to the Patent Rights incurred by University prior to Effective Date.
	 	 	 
	 	c.	Ongoing
    patent costs to be reimbursed by Company according to Section 7.2 of the Agreement.

 

    	 	Page 19 of 24	 

    	 

    

 

EXHIBIT
INDEX

 

	Exhibit
    A	Patents
    and Patent Applications in Patent Rights
	 	 
	Exhibit
    B	Minimum
    Contents of Development Plan
	 	 
	Exhibit
    C	Format
    of Royalty Report
	 	 
	Exhibit
    D	Invoice
    of Past Patent Costs

 

    	 	Page 20 of 24	 

    	 

    

 

Exhibit
A

 

Patents
and Patent Applications in Patent Rights

 

	Law
    firm Reference	 	GW

    Reference
	 	

    Status
	 	 Country
	 	Application
    Number	 	Application
    Date	 	Patent
    Number	 	 Title
	 	Inventors

	SKGF
3973.0180000
	 	020-030-

    

    Mishra-P
	 	Converted
                                            to PCT
	 	US
	 	63/113,745
	 	11/13/2020
	 	 	 	Inhibition
of SPTBN1 to treat Obesity/NASH and Obesity/NASH-driven cancer
	 	Wilma
    Jogunoori, Bibhuti Mishra, Lopa Mishra, Kazufumi Ohshiro, Shuyun Rao, Sobla Ziadi
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

    SKGF
    3973.0180001
	 	020-030-
                                                         Mishra-P2
	 	Converted
                                            to PCT
	 	

    US
	 	

    63/147,141
	 	

    2/8/2021
	 	 	 	

    Inhibition
    of SPTBN1 to treat Obesity/NASH and Obesity/NASH-driven cancer
	 	Wilma
    Jogunoori, Bibhuti Mishra, Lopa Mishra, Kazufumi Ohshiro, Shuyun Rao, Sobla Ziadi
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SKGF
3973.018PC02
	 	020-030-

    

    Mishra-PCT
	 	Filed
	 	WO
	 	PCT/US2021/
059245
	 	11/12/2021
	 	 	 	Inhibition
of SPTBN1 to treat Obesity/NASH and Obesity/NASH-driven cancer
	 	Wilma
    Jogunoori, Bibhuti Mishra, Lopa Mishra, Kazufumi Ohshiro, Shuyun Rao, Sobla Ziadi

 

    	 	Page 21 of 24	 

    	 

    

 

Exhibit
B

 

Minimum
Contents of Development Plan

 

The
initial Development Plan shall contain as much material as possible from the below, and each annual update to the Development Plan shall
include, at a minimum, the following information:

 

	 	●	The
    date of the Development Plan and the reporting period covered by the Development Plan.
	 	 	 
	 	●	Identification
    and nature of each active relationship between Company and its Affiliates, Sublicensees or subcontractors in the research, development
    or commercialization of Licensed Products or Patent Rights
	 		 
	 	●	Significant
    projects completed during the reporting period by Company or its Affiliates, Sublicensees or subcontractors in the research, development
    or commercialization of Licensed Products or Patent Rights.
	 	 	 
	 	●	Significant
    projects currently being performed by Company or its Affiliates, Sublicensees or subcontractors in the research, development or commercialization
    of Licensed Products or Patent Rights.
	 	 	 
	 	●	Future
    projects expected to be undertaken during the next reporting period by Company or its Affiliates, Sublicensees or subcontractors
    in the research, development or commercialization of Licensed Products or Patent Rights.
	 	 	 
	 	●	Projected
    timelines to product launch of each Licensed Product prior to first Sale.
	 	 	 
	 	●	Projected
    annual Net Sales for each Licensed Product after first Sale.
	 	 	 
	 	●	Significant
    changes to the current Development Plan since the previous Development Plan and the reasons for the changes.
	 	 	 
	 	●	Significant
    assumptions underlying the Development Plan and the future variables that may cause significant changes to the Development Plan.

 

    	 	Page 22 of 24	 

    	 

    

 

Exhibit
C

 

Format of Royalty Report

 

 

 

    	 	Page 23 of 24	 

    	 

    

 

Exhibit
D

 

Invoice
of Past Patent Costs

 

 

    	 	Page 24 of 24

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