Document:

Exhibit 10.3

 

SENIOR SECURED PROMISSORY NOTE

	$75,000.00	 	February 15, 2021

 

FOR VALUE RECEIVED,
SKYPERSONIC, INC., a Michigan corporation (“Maker”) promises
to pay Fat Shark Holdings, Ltd., a Cayman Islands Exempted Company, or assigns (“Holder”) in lawful money
of the United States of America, the aggregate principal sum of Seventy-Five Thousand Dollars and 00/100 ($75,000.00), together
with interest on the unpaid principal balance from the date hereof until the Payment Date (as defined below) at an annual rate
equal to six (6%) percent per annum, in the manner provided below. Interest shall be calculated on the basis of a year of 365 or
366 days, as applicable, and charged for the actual number of days elapsed until payment.

1.
Principal and Interest. The principal amount of this Note and the unpaid interest shall be due and payable on May
14, 2021 (the “Payment Date”). Notwithstanding anything herein to the contrary, the Note may be prepaid by Maker
without penalty, in whole or in part. In the event of the sale of any of the Collateral (as defined below) by Maker, the Payment
Date with respect to the net proceeds of such sale shall be accelerated to the date of receipt by Maker and shall be immediately
paid to Holder as a reduction in the Note obligations.

2.
Manner of Payment. The payment of principal and interest on this Note shall be paid by Maker to Holder by wire transfer
of immediately available funds to an account or accounts designated by Holder in writing. If any payment of principal or interest
on this Note is due on a day which is not a Business Day, such payment shall be due on the next succeeding Business Day, and such
extension of time shall be taken into account in calculating the amount of interest payable under this Note. “Business
Day” means any day other than a Saturday, Sunday or legal holiday in the State of New York.

3.
Security. Maker’s performance under this Note is secured by 54,250 shares of common stock of Maker owned of
record by Giuseppe Santangelo (“Santangelo”). an affiliate of Maker (the “Collateral”) which are
hereby pledged as collateral to Holder for the obligations herein in the event of a default in payment or performance of any of
Maker’s obligations under this note. Upon the closing of a sale of the outstanding capital stock of Maker under that certain
Securities Purchase Agreement dated as of February 11, 2022 (the “SPA”), this Section 3 shall automatically terminate,
Santangelo shall have no obligation under this Note, the security interest granted hereunder shall terminate, and Santangelo shall
transfer, sell and convey the Collateral to Buyer in consideration for the Purchase Price as set forth therein, and neither Holder
nor any assignee of Holder shall have any rights or interests of any nature in the Collateral or any proceeds from the sale of
the Collateral by Santangelo to Buyer for the pro-rata portion of the Purchase Price, as set forth therein.

4.
SPA Provisions. Terms not otherwise defined herein shall have the meanings ascribed to such terms in the SPA. All
obligations under the Note, for the absence of doubt, including principal, interest, penalties and costs, shall be deemed “current
liabilities” in the calculation of Closing Date Working Capital.

5.
Prepayment. Maker may, without premium or penalty, at any time and from time to time, prepay all or any portion of
the outstanding principal balance due under this Note, provided that each such prepayment is accompanied by accrued interest on
the amount of principal prepaid calculated to the date of such prepayment.

6.
Severability. If any provision in this Note is held invalid or unenforceable by any court of competent jurisdiction,
the other provisions of this Note will remain in full force and effect. Any provision of this Note held invalid or unenforceable
only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

7.
Governing Law. This Note will be governed by the laws of the State of New York without regard to principles of conflicts
of laws.

8.
Parties in Interest. This Note may be assigned or transferred by Holder. Subject to the preceding sentence, the rights
and obligations of Maker and Holder shall be binding upon and benefit their successors, assigns, heirs, administrators and transferees.

9.
Section Headings; Construction. The headings of Sections in this Note are provided for convenience only and will
not affect its construction or interpretation. All references to “Section” or “Sections” refer to the corresponding
Section or Sections of this Note unless otherwise specified. All words used in this Note will be construed to be of such gender
or number as the circumstances require. Unless otherwise expressly provided, the words “hereof” and “hereunder”
and similar references refer to this Note in its entirety and not to any specific section or subsection hereof.

10.
Representation. Each party hereto acknowledges that it has been represented
by independent legal counsel in the preparation of the Agreement. Each party recognizes and acknowledges that the undersigned has
served as counsel to the Maker and may, in the future, represent the Maker in connection with various legal matters and each party
waives any conflicts of interest including claims related to the adequacy of consent and of legal services and other allegations
that it has not been represented by its own counsel.

11.
Exclusivity. Except for the transactions contemplated by the Transaction Documents and hereunder, Santangelo will
not (i) solicit, initiate, or encourage the submission of any proposal or offer from any Person relating to the acquisition of
any shares or other voting securities, or any substantial portion of the assets, of either Company (including any acquisition structured
as a merger, consolidation, or share exchange), or (ii) participate in, or facilitate in any other manner any effort or attempt
by any Person to do or seek any of the foregoing or enter into any agreement related to any of the foregoing. Sellers will notify
Parent immediately if any Person makes any indication of interest, proposal, offer, inquiry, or contract with respect to any of
the foregoing. Santangelo agrees, on his own behalf and on behalf of Maker, that neither Santangelo nor Skypersonic shall have
the right to terminate the SPA prior to the Payment Date.

 

IN WITNESS WHEREOF,
Maker has executed and delivered this Note as of the date first written above.

 

SKYPERSONIC, INC.

 

 

By:__________________________________

Name: GIUSEPPE SANTANGELO

Title: Chief Executive Officer

 

GIUSEPPE SANTANGELO

 

_____________________________________

Individually with respect to paragraph 3 hereof

 

 

ACKOWLEDGMENT AND CONSENT:

 

Red Cat Holdings, Inc.,
a Nevada corporation (“Red Cat”), and Red Cat Skypersonic, Inc., a Nevada corporation (“Stock Purchaser”),
are parties to a certain Share Purchase Agreement (the “Purchase Agreement”) pursuant to which Stock Purchaser
agreed to purchase all of the issued and outstanding capital stock of Maker, including all shares of common stock of Maker held
by Giuseppe Santangelo, in exchange for newly issued shares of the common stock of Red Cat. Red Cat and Stock Purchaser hereby:
(a) consent to the foregoing Note, the indebtedness evidenced thereby, and to the pledge by Giuseppe Santangelo of the Collateral
to secure such indebtedness; and (b) agree that all applicable representations and warranties by or on behalf of Maker and Giuseppe
Santangelo in the Purchase Agreement and the Disclosure Schedules thereto are amended and supplemented to include this Note, the
indebtedness hereunder and the pledge of the Collateral.

 

RED CAT HOLDINGS, INC., a Nevada corporation

 

 

Dated: February ____, 2021

By: _________________________________

Jeffrey Thompson

Its:Chief Executive Officer

 

 

RED CAT SKYPERSONIC, INC., a Nevada
corporation

 

 

Dated: February ____, 2021

By: _________________________________

Jeffrey Thompson

Its:Chief Executive OfficerEX-10.1

 EXHIBIT 10.1 

Newell Brands Inc. 

2021 Long-Term Incentive Plan 

Terms and Conditions 
 1.
Grants. Under the terms and provisions of the Newell Rubbermaid Inc. 2013 Incentive Plan, or any successor plan (the “Stock Plan”), the Organizational Development & Compensation Committee and its Equity Award
Subcommittee (individually or collectively referred to herein as the “Committee”) of the Board of Directors of Newell Brands Inc. (the “Company”), at any time and from time to time, may each grant awards based on shares of the
Company’s Common Stock, including Restricted Stock Units and Stock Options, to eligible employees in such amounts as the Committee shall determine. The 2015 Newell Rubbermaid Inc. International Incentive Plan (the “International
Plan”) establishes authority to grant similar awards, including Stock Units and Stock Appreciation Rights (“SARs”), to Employees who reside outside the United States, other than such employees residing in Argentina and Venezuela, with
such awards to be settled only in cash. This document, referred to herein as the “LTIP”, establishes a methodology for determining awards of Restricted Stock Units (including Stock Units under the International Plan), Stock Options and
SARs under the Stock Plan and the International Plan in 2021 to eligible Newell legacy employees with positions in Salary Bands 6-15 and other comparable positions selected by the Committee (collectively the
“Key Employees”). The Committee or, in the case of awards to the Chief Executive Officer, the independent members of the Board of Directors (the “Independent Directors”), intends to grant Restricted Stock Units and Stock
Options/SARs to Key Employees pursuant to the guidelines set forth below. The Committee has delegated to certain officers of the Company (the “Authorized Officers”) its authority to determine awards of Restricted Stock Units and Stock
Options/SARs to Key Employees in accordance with this LTIP other than (i) officers subject to Section 16 of the Securities Exchange Act of 1934, as amended, (ii) any employee for whom the Committee specifically approved a 2021 LTIP
award, or (iii) as may be prohibited by applicable law, regulation or rule of a stock exchange on which the Company’s stock is listed. As used herein, the term “Committee” shall include the Committee, the Independent Directors or
the Authorized Officers, as the context requires. 
 2. Guidelines. The number of shares subject to Restricted Stock
Units and Stock Options (or SARs, solely in the case of Cash Award Recipients, as defined below) granted to a Key Employee in 2021 as an LTIP award will be determined as follows: 

 

	 	(a)	 For 2021 LTIP awards the Committee will determine: 

 

	 	(i)	 For each Key Employee identified by the Committee to receive an award, an award value, which may be expressed
as a dollar value or as a percentage of the Key Employee’s base salary rate, which value will be based on the Key Employee’s Salary Band if applicable or, if not, other criteria as determined by the Committee (the “Base Value”).
The Committee may adjust the Base Value for any Key Employee based on individual performance or other factors deemed relevant by the Committee. 

  
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	 	(ii)	 A comparator group of companies for purposes of determining the Company’s relative Total Shareholder
Return (“TSR”) for the performance period (the “TSR Comparator Group”). 

  

	 	(iii)	 Performance Goals for purposes of determining the Company’s performance with respect to the cumulative
“Free Cash Flow” and “Annual Core Sales Growth” of the Company for the three-year performance period beginning as of January 1, 2021. 

 

	 	(b)	 Of the Base Value determined for each such Key Employee for the year: 

 

	 	(i)	 Time-Based Restricted Stock Units. The Committee intends to authorize a Time-Based Restricted Stock Unit
grant to each Key Employee for a number of shares of Common Stock determined by dividing the following percentage of the applicable Base Value established for such Key Employee by the Fair Market Value of a share of Common Stock on the date of grant
of the award: 

  

			
	 Salary Bands 7 through 15
	  	20%
	 Salary Band 6 (and other directors identified by the Committee)
	  	50%

  

	 	(ii)	 Performance-Based Restricted Stock Units. The Committee intends to authorize a Performance-Based
Restricted Stock Unit grant to each Key Employee for a number of shares of Common Stock determined by dividing the following percentage of the applicable Base Value established for such Key Employee by the Fair Market Value of a share of Common
Stock on the date of grant: 

  

			
	 Salary Bands 7 through 15
	  	50%
	 Salary Band 6 (and other directors identified by the Committee)
	  	50%

  

	 	(iii)	 Stock Options/SARs. The Committee intends to authorize a Stock Option or SAR (solely in the case of Cash
Award Recipients) grant to each Key Employee for a number of shares of Common Stock determined by dividing the following percentage of the applicable Base Value established for such Key Employee by the deemed value of an option to purchase one share
of Common Stock, as determined by the Committee, on the date of grant of the award: 

  

			
	 Salary Bands 7 through 15
	  	30%
	 Salary Band 6 (and other directors identified by the Committee)
	  	0%

  
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 The Committee may adjust the relative percentages of Time-Based and Performance-Based Restricted Stock Units
and Stock Options/SARs in individual cases based on such factors as it deems appropriate. Each Performance-Based Restricted Stock Unit grant will be subject to the performance analysis described in Exhibit A attached hereto. 

3. Vesting. Each Performance-Based Restricted Stock Unit grant will be subject to a three-year cliff vesting schedule
ending on the third anniversary of the date of grant, subject to achievement of the applicable performance measures and continued employment. Each Time-Based Restricted Stock Unit grant (a) to Key Employees in Salary Bands 7 through 15 will be
subject to a three-year cliff vesting schedule ending on the third anniversary of the date of grant, and (b) to Key Employees in Salary Band 6 (and other directors) will vest ratably in one-third
increments on each of the first, second and third anniversaries of the date of grant subject to continued employment. Each Stock Option and SAR grant will vest ratably in one-third increments on each of the
first, second and third anniversaries of the date of grant subject to continued employment. 
 4. Award Agreements. Each
Restricted Stock Unit and Stock Option (or SAR) grant awarded pursuant to this LTIP will be evidenced by a Restricted Stock Unit Agreement or Stock Option Agreement (or as applicable a Stock Appreciation Right Agreement) in accordance with the Stock
Plan or the International Plan (as applicable), which will specify the number of shares subject to the award, the vesting schedule, the payment provisions, including dividend or dividend equivalent payment provisions, if any, and such other
provisions as the Committee determines including, without limitation, provisions regarding continued employment with the Company, restrictions based upon the achievement of specific performance goals, time-based restrictions on vesting following the
attainment of specific performance goals, and/or restrictions under applicable federal or state securities laws. Exhibit A to this LTIP will be included as an exhibit to each Restricted Stock Unit Agreement issued pursuant to this
LTIP. 
 5. Amendment or Termination of LTIP. The Committee reserves the right to amend or terminate the LTIP at any time,
retroactively or otherwise. No such amendment or termination will affect any outstanding Restricted Stock Unit Award or Stock Option, which will be governed by the terms of the applicable Restricted Stock Unit Agreement or Stock Option Agreement.

 6. Non-US Employees. Notwithstanding anything else set forth herein to the contrary, Key
Employees who reside outside the United States, other than such employees residing in Argentina and Venezuela and, if applicable, members of the Newell Brands Executive Leadership Team (“Cash Award Recipients”), will receive under the LTIP
only cash–settled Time-Based Stock Units, Performance-Based Stock Units and Stock Appreciation Rights under the International Plan. Any reference to Stock Options herein shall be deemed to refer to Stock Appreciation Rights and
any reference herein to Restricted Stock Units herein shall be deemed to refer to Stock Units, in each case with respect to any Cash Award Recipient. 

7. Capitalized Terms. Capitalized terms used but not defined herein shall have the meanings assigned to such terms
pursuant to the Stock Plan. 

  
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 EXHIBIT A 

Performance Criteria Applicable to 

Performance-Based RSUs 
  

	1.	 Following the completion of the applicable three-year performance period, the Committee will determine the
extent to which each of the Performance Goals related to Free Cash Flow and Annual Core Sales Growth as described below have been achieved. Each payout percentage calculated in accordance with Section 2 and Section 3 of this Exhibit
A shall be multiplied by 50%, with the resulting sum of the two payout percentages (to two decimal places) multiplied by the TSR Modifier Percentage calculated in accordance with Section 4, if applicable, to determine the total payout
percentage applicable to the Award (the “Award Payout Percentage”). The number of Performance-Based RSUs subject to the Award will be multiplied by the Award Payout Percentage to determine the adjusted number of Restricted Stock
Units, and thus the number of shares of Common Stock or cash equivalents, to be issued upon vesting pursuant to each Key Employee’s Performance-Based Restricted Stock Unit grant. Notwithstanding the foregoing, (i) the Award Payout
Percentage shall not exceed a maximum of two hundred percent (200%), and (ii) in the event the Company’s ranking is in the bottom quartile of the TSR Comparator Group at the end of the three year performance period (as determined pursuant
to Section 4 below), the Award Payout Percentage shall not exceed a maximum of one hundred percent (100%). 

  

	2.	 Free Cash Flow 

  

	 	a.	 Free Cash Flow shall be measured on a cumulative basis over the entire three-year performance period commencing
January 1, 2021 and ending December 31, 2023. The payout percentage for the Company’s cumulative Free Cash Flow shall be determined in accordance with the Free Cash Flow targets and payout percentages established by the Committee
prior to the grant date of the award. 

  

	 	b.	 The payout percentage for the Free Cash Flow target shall range from a minimum of zero percent (0%) to a
maximum of two hundred percent (200%) based on actual performance relative to targets 

  

	 	c.	 For any actual performance figure which falls between two defined payment thresholds, the payout with respect
to such performance criteria shall be determined by straight-line interpolation. 

  

	 	d.	 “Free Cash Flow” means operating cash flow for the total Company (including discontinued operations),
as reported by the Company, less capital expenditures, subject only to the adjustments described below. Free Cash Flow shall exclude the impact of all cash costs related to the extinguishment of debt; debt and equity related financing costs; cash
tax payments associated with the sale of a business unit or line of business; cash expenditures associated with the acquisition, or divestiture of business units or lines of business, including retention related deal payments and all cash costs
associated with appraisal rights proceedings; and other 

  
 4 

	 	
significant cash costs that have had or are likely to have a significant impact on Free Cash Flow for the period in which the item is recognized, are not indicative of the Company’s core
operating results and affect the comparability of underlying results from period to period, as determined by the Committee. Free Cash Flow shall include disposal proceeds for ordinary course and restructuring related asset sales. 

 

	 	e.	 Upon the divestiture of a business unit or line of business, Free Cash Flow targets shall be adjusted to
exclude the estimated results for the divested business unit or line for the period following the divestiture, to reflect the negative impact of any unabsorbed overhead (net of transition service fee recovery) resulting during the period following
the divestiture, and to reflect the impact of any use of net proceeds from the divestiture for debt repayment. Upon the acquisition of a business unit or line of business, Free Cash Flow targets will be adjusted to reflect the anticipated impact of
the transaction during the performance period in accordance with management estimates as communicated to the Board of Directors (or a committee thereof) in support of the acquisition approval request, including any related interest expense or
financing cost. 

  

	 	f.	 The Free Cash Flow targets will be updated to reflect the impact of any changes in tax laws enacted
during the performance period (and not currently pending) that significantly affect the Company’s Free Cash Flow, subject to approval by the Committee. 

  

	3.	 Annual Core Sales Growth 

 

	 	a.	 The payout percentage for Annual Core Sales Growth shall equal the average of the payout percentages determined
for each year of the three-year performance period commencing January 1, 2021 and ending December 31, 2023, as set forth below. 

  

	 	b.	 The payout percentage applicable to each calendar year of the three-year performance period shall be determined
in accordance with those Core Sales Growth targets and payout percentages established by the Committee prior to the grant date of the award. 

  

	 	c.	 The payout percentage for the Annual Core Sales Growth target in each year shall range from a minimum of zero
percent (0%) to a maximum of two hundred percent (200%) based on actual performance relative to targets 

  

	 	d.	 For any actual performance figure which falls between two defined payment thresholds, the payout with respect
to such performance criteria shall be determined by straight-line interpolation. 

  

	 	e.	 Upon completion of the three-year performance period, the three annual payout percentages determined as
described above shall be averaged, with the result constituting the Annual Core Sales Growth payout percentage for purposes of calculating the Award Payout Percentage under Section 1. 

  
 5 

	 	f.	 “Annual Core Sales Growth” means the Company’s Core Sales Growth performance, calculated on the
same basis as Core Sales Growth publicly reported by the Company and expressed as a percentage, over each year of the three-year performance period commencing January 1, 2021 and ending December 31, 2023, with each of the three annual Core
Sales performance rates measured against the Core Sales for the respective preceding fiscal year. 

  

	 	g.	 “Core Sales” shall exclude the impact of planned and completed divestitures (from the first day of
the preceding quarter when the announcement is made), discontinued operations, acquisitions (for a period of one year from acquisition), retail store openings (for a period of one year from opening), retail store closures (for all closures occurring
or planned to occur within the performance period) and foreign currency exchange, and all business/market exits and other items excluded from publicly reported Core Sales Growth. 

 

	4.	 Relative Total Shareholder Return Modifier 

 

	 	a.	 The payout percentage applicable to Performance-Based RSUs covered by the Award, calculated under Sections 2
and 3 above, will be subject to modification based on the Company’s Total Shareholder Return (“TSR”) relative to the TSR of the following Comparator Group members: 

 

					
		 	 Avery Dennison Corporation
 Fortune Brands
Home & Security Inc.
 Hasbro, Inc.
 Henkel
AG & Co. KGaA
 Kimberly-Clark Corporation
 Koninklijke
Philips N.V.
	  	 Mattel, Inc.
 Societe BIC SA

Spectrum Brands Holdings, Inc.
 Tupperware Brands

Whirlpool Corporation

  

	 	b.	 Any companies that are in the TSR Comparator Group at the beginning of the performance period that no longer
exist at the end of the three-year performance period (e.g., through merger, buyout, spin-off, or similar transaction), or otherwise change their structure or business such that they are no longer reasonably
comparable to the Company, shall be disregarded by the Committee in the Committee’s calculation of the appropriate interpolated percentage. 

  

	 	c.	 The Company’s ranking (in the range of highest to lowest) in the TSR Comparator Group at the end of the
three-year performance period, beginning January 1, 2021, and ending December 31, 2023, will be determined by the Committee based on the TSR for the Performance Period for the Company and each of the members in the TSR Comparator Group as
calculated below: 

  

	 	d.	 TSR is calculated as follows and then expressed as a percentage: 

(Ending Average Market Value – Beginning Average Market Value) + Cumulative Annual Dividends 

Beginning Average Market Value 

  
 6 

 “Average Market Value” means the simple average of the daily stock prices at
close for each trading day during the applicable period beginning or ending on the specified date for which such closing price is reported by the New York Stock Exchange, Nasdaq Stock Exchange or other authoritative source the Committee may
determine. 
 “Beginning Average Market Value” means the Average Market Value for the ninety (90) days ending
December 31, 2020. 
 “Cumulative Annual Dividends” mean the cumulative dividends and other distributions with respect to a
share of the Common Stock the record date for which occurs within the Performance Period. 
 “Ending Average Market Value” means
the Average Market Value for the last ninety (90) days of the Performance Period. 
 “Performance Period” means the period
beginning January 1, 2021 and ending December 31, 2023. 
 The payout percentage calculated under Sections 2 and 3 above will be
multiplied by a percentage attributable to the Company’s ranking in the TSR Comparator Group as follows (the “TSR Modifier Percentage”). The TSR Modifier Percentage will be 110% in the event the Company’s ranking is in the
top quartile of the TSR Comparator Group at the end of the Performance Period. The TSR Modifier Percentage will be 90% in the event the Company’s ranking is in the bottom quartile of the TSR Comparator Group at the end of the Performance
Period. Additionally, if the Company’s ranking is in the bottom quartile of the TSR Comparator Group at the end of the Performance Period, the payout percentage will be no higher than target (100%), even if the calculation results in a higher
payout. In the event the Company’s ranking is in neither the top nor the bottom quartile of the TSR Comparator Group, this Section 4 will not apply and there will be no TSR Modifier Percentage and no adjustment to the payout percentage
calculated under Sections 2 and 3 above. 
  

	 	e.	 For illustration, if the TSR Comparator Group has 12 companies (including the Company), and one merges out of
existence before the end of the three-year performance period, the TSR Modifier Percentage will be based on where the Company ranks among the 11 remaining companies as follows: 

  
 7 

					
	 Rank

(Highest to Lowest)
	  	Percentage	 
	1st	  	 	110%	 
	2nd	  	 	110%	 
	3rd	  	 	No adjustment	 
	4th	  	  	No adjustment1	 
	5th	  	 	No adjustment	 
	6th	  	 	No adjustment	 
	7th	  	 	No adjustment	 
	8th	  	 	No adjustment	 
	9th	  	 	No adjustment	 
	10th	  	 	90%	 
	11th	  	 	90%	 

  

	1 	 In the event that the cutoff for the top or bottom quartile occurs between ranks (e.g., between 2nd and 3rd and between 9th and 10th in the
example above) the TSR Modifier Percentage will not apply to the lower rank, in the case of the top quartile, or the higher rank, in the case of the bottom quartile, consistent with the table above. 

  
 8

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