Document:

Exhibit 10.5

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”)
is made and entered into as of September 1, 2021, by and between Red Cat Holdings, Inc., a Nevada corporation (“Company”)
and George Matus, an individual (“Matus”). As used herein, the “Effective Date” shall be September 1, 2021.

 

W I T N E S S E T H:

 

WHEREAS Matus desires to be employed
by the Company as CEO of Teal Drones and the Company wishes to employ Matus in such capacity; and

 

NOW,
THEREFORE, in consideration of the foregoing and their respective covenants and agreements contained in this document the Company
and Matus hereby agree as follows:

 

		1.	Employment and Duties. The Company agrees to employ, and Matus agrees
to serve as CEO of Teal Drones. The duties and responsibilities of Matus shall include the duties and responsibilities as the executive
management Red Cat may from time to time assign to Matus. Matus shall devote all his business time and best efforts to the performance
of his duties under this Agreement and shall be subject to, and shall comply with the Company policies, practices and procedures and all
codes of ethics or business conduct applicable to his position, as in effect from time to time.

 

		2.	Term. The term of this Agreement shall commence on the Effective Date
and shall continue for a period of one (1) year following the Effective Date and shall be automatically renewed for successive one (1)
year periods thereafter unless either party provides the other party with notice of his or its intention not to renew this Agreement.
“Employment Period” shall mean the initial one

		(1)	year term plus renewals, if any.

 

		3.	Base Salary. The Company agrees to pay Matus a base salary (“Base
Salary”) equal to $130,000 per annum. The Base Salary shall be paid in periodic installments in accordance with the Company’s
regular payroll practices. If Matus’ employment is terminated for any reason, Matus shall be entitled to the accrued salary through
the termination date.

 

		a.	Bonus.

		i.	If Teal Drones revenues exceed $2.5 million during the period from September 1,
2021, to December 31, 2021, Matus’ base salary will increase to $150,000 on January 1, 2022.

		ii.	If Teal Drones’ revenues exceed $9 million during the period from January
1, 2022, to December 31, 2022, Matus’ base salary will increase to $170,000 on January 1, 2023.

 

		b.	Restricted Stock Units and Options. Matus shall be issued the Restricted
Stock Units and the options set forth in Exhibits A and B, respectively. In addition, Matus will be eligible for bonus grants of awards
under the Company’s 2019 Equity Incentive Plan (or any successor or replacement plan adopted by the Board and approved by the stockholders
of the Company) (the “Plan”) as the Compensation Committee or Board may from time to time determine (the “Share
Awards”). ShareAwards shall be subject to the applicable Plan terms and conditions, provided, however, that ShareAwards shall
be subject to any additional terms and conditions as are provided herein or in any award, Board resolution or certificate(s), which shall
supersede any conflicting provisions governing.

		i.	See Exhibit A “Restricted Stock Units”

		ii.	See Exhibit B “Stock Options”

 

		c.	For purposes of Internal Revenue Code Section 280G (“Section 280G”),
the Company agrees that the Executive’s bonus terms and equity awards that require services to the Company after the Closing and,
where applicable, achievement of performance metrics, including without limitation the Restricted Stock Units set forth in Exhibit A,
will be treated as reasonable compensation for future services and not contingent payments that might be “parachute payments”
for the purposes of Section 280G.

 

		4.	Severance Compensation.

 

		a.	Upon
termination of employment for any reason other than by the Company for Cause or by Matus without Good Reason, Matus shall sign a full
release and be entitled to 12- months’ severance of his base salary paid in accordance with normal pay periods.

 

		b.	Upon termination of employment for cause, Matus shall not be entitled to severance
but rather paid the accrued payroll earned.

 

		c.	“Cause” means Matus’: (i) indictment, plea of no contest, guilty,
or similar plea deal, or conviction of (x) a felony or (y) a crime involving fraud, embezzlement, or other crime that, in the Company’s
reasonable discretion, will materially negatively impact the Company or its image, (ii) willful
disregard of, or his willful failure to perform, his material duties under this Agreement or his willful disregard of the reasonable written
policies of the Company, which, if curable, is not cured by Matus within thirty (30) days after delivery of notice by the Company of such
breach, or (iii) material violation of any of the covenants and conditions of this Agreement (provided that, if such violation can be
cured,, Matus shall have a period of thirty (30) days after delivery of notice by the Company of such breach.

 

		d.	“Good Reason” shall mean: (i) a reduction of Matus’ salary and
bonus eligibility, provided, however, that other similarly situated employees of the Company are not subject to a similar reduction in
salary and bonus eligibility; (ii) a material diminution of Matus’ authority, duties, or responsibilities, provided that Matus gives
the Company written notice of such material diminution and a 30-day period in which to cure such action and, if the Company cures the
action, then Good Reason shall not exist; or (iii) a change in Matus’ principal place of work to a location greater than thirty
(30) miles from Matus’ principal place of work immediately prior to such a change, provided that Matus does not consent to such
change.

 

		5.	Clawback Rights. Any bonus, and any and all stock based compensation
(such as options and equity awards) (collectively, the “Clawback Benefits”) shall be subject to “Clawback Rights”
as follows: during the period that Matus is employed by the Company and upon the termination of Matus’ employment and for a period
of three (3) years thereafter, if there is a restatement of any financial results from which any metrics were determined to be achieved
which were the basis of the granting and calculation of such Clawback Benefits to Matus, Matus agrees to repay any amounts which were
determined by reference to any Company financial results which were later restated (as defined below),
to the extent the Clawback Benefits amounts paid exceed the Clawback Benefits amounts that would have been paid, based on the restatement
of the Company’s financial information. All Clawback Benefits amounts resulting from such restated financial results shall be retroactively
adjusted by the Compensation Committee to take into account the restated results, and any excess portion of the Clawback Benefits resulting
from such restated results shall be immediately surrendered to the Company and if not so surrendered within ninety (90) days of the revised
calculation being provided to Matus by the Compensation Committee following a publicly announced restatement, the Company shall have the
right to take any and all action to effectuate such adjustment. The calculation of the revised Clawback Benefits amount shall be determined
by the Compensation Committee in good faith and in accordance with applicable law, rules, and regulations. All determinations by the Compensation
Committee with respect to the Clawback Rights shall be final and binding on the Company and Matus. The Clawback Rights shall terminate
following a Change of Control as defined in Section 11(f), subject to applicable law, rules, and regulations. For purposes of this Section
7, a restatement of financial results that requires a repayment of a portion of the Clawback Benefits amounts shall mean a restatement
resulting from material non-compliance of the Company with any financial reporting requirement under the federal securities laws and shall
not include a restatement of financial results resulting from subsequent changes in accounting pronouncements or requirements which were
not in effect on the date the financial statements were originally prepared (“Restatements”). The parties acknowledge it is
their intention that the foregoing Clawback Rights as relates to Restatements conform in all respects to the provisions of the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) and require recovery of all “incentive-based”
compensation, pursuant to the provisions of the Dodd-Frank Act and all rules and regulations promulgated thereunder from time to time
in effect. Accordingly, the terms and provisions of this Agreement shall be deemed automatically amended from time to time to assure compliance
with the Dodd-Frank Act and such rules and regulations as hereafter may be adopted and in effect.

 

		6.	Expenses. Matus shall be entitled to reimbursement by the Company
for all ordinary and necessary travel, entertainment, and other expenses incurred by Matus while employed (in accordance with the policies
and procedures established by the Company) in the performance of his duties and responsibilities under this Agreement; provided, that
Matus shall get preapproval and properly account for such expenses in accordance with Company policies and procedures.

 

		7.	Other Benefits. During the term
of this Agreement, Matus shall be eligible to participate in benefits as the Company makes such opportunities available to the
Company’s salaried employees.

 

		8.	Vacation. During the term of this Agreement, Matus shall be entitled
to accrue, on a pro rata basis, twenty-one (21) paid vacation days per year. Vacation shall be taken at such times as are mutually convenient
to Matus and the Company.

 

		9.	Termination of Employment.

 

(a) 
Death. If Matus dies during the Employment Period, this Agreement and the employment with the Company shall automatically
terminate.

 

(b)   Disability.
If during the term of this Agreement Matus shall be prevented from performing his essential functions hereunder to the full extent
required by the Company by reason of Disability (as defined below), this Agreement and Matus’ employment with the Company
shall automatically terminate. “Disability” shall mean a physical or mental disability that prevents the performance by
Matus, with or without reasonable accommodation, of his essential functions hereunder for an aggregate of ninety (90) days or longer
during any twelve (12) consecutive months. The determination of Matus’ Disability shall be made by an independent physician
who is reasonably acceptable to the Company and Matus (or his representative), be final and binding on the parties hereto and be
made taking into account such competent medical evidence as shall be presented to such independent physician by Matus and/or the
Company or by any physician or group of physicians or other competent medical experts employed by Matus and/or the Company to advise
such independent physician.

 

(c) 
At Will. Upon termination, the Company shall have no further obligations or liability to Matus or his heirs, administrators,
or executors with respect to compensation and benefits thereafter, except for the obligation to pay Matus pursuant to Section 4. The Company
shall deduct from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.

 

		10.	Non-Solicitation/Non-Competition.

 

During Matus’
employment with the Company, and for (12) twelve months following the last day of employment with
the Company (the “Restricted Period”), Matus will not, except with prior written approval of
the Company’s President, directly or indirectly, individually or as part of or on behalf of any other person, company, employer
or other entity: (a) induce, hire, or attempt to solicit for hire, or encourage to end their relationship with the Company, any persons
who have been employed by the Company at any time within the previous six (6) months; (b) induce, solicit, or attempt to induce or solicit,
any customer, supplier, licensee, or business relation of the Company to cease doing business with the Company or to interfere in any
way with the Company’s relationship with any customer, supplier, licensee, or business relation; (c) directly or indirectly, alone
or as a consultant, partner, officer, director, employee, joint ventures, lender or stockholder of any entity, accept employment with,
or otherwise provide services to, any business or entity that is engaged in any product and/or service line of the Company that exists
or is in the process of being formed or acquired during the time that Employee is providing services with the Company, with respect to
which (A) Matus is actively engaged or (B) the Matus has learned or received Confidential Information, anywhere within a 250 mile radius
of the Company or one of its subsidiary offices at the time of termination (a “Competitor”); provided that the Matus may be
a stockholder of a publicly-held Competitor if the Matus’ ownership of such Competitor does not exceed two percent (2%) of the issued
and outstanding shares of the Competitor.

 

Matus
agrees that these provisions are necessary to protect the Company’s legitimate business interests. Matus warrants that the
provisions will not unreasonably interfere in his ability to earn a living or to pursue his occupation after the Termination Date. Matus
agrees to notify any person or entity to which he provides services during the Restricted Period of his obligations under this Section.

 

		11.	Assignment

 

(a)  
Proprietary Rights. For the purposes of this Agreement, “Proprietary Rights” include, without limitation,
the results and products of my work, creative effort and employment activity, any and all patent rights, copyrights, trade secret rights,
know-how, technology, inventions (whether patentable or not), discoveries, improvements, information, ideas, designs, writings, formulas,
processes, drawings, software, data, as well as any other subject matter susceptible of protection as intellectual property, together
with all documentation, records, and tangible embodiments thereof in whatever media, format or wherever located.

 

(b)  Company’s
Proprietary Rights. The Company’s Proprietary Rights include any Proprietary Rights with respect to which Matus
participated in the conception, development, or reduction to practice during the period of his employment with the Company: i. that
relate, at the time of conception, development, or reduction to practice, to the Company’s current or anticipated future
business, or actual or demonstrably anticipated research or development; ii. that were developed, in whole or in part, on the
Company’s time or with the use of any of the Company’s equipment, supplies, facilities, trade secret information or
Proprietary Information; or iii. that resulted from any work I performed for the Company. Matus understands that the provisions of
this Agreement requiring assignment of Inventions to the Company do not apply to any invention that qualifies fully under the
provisions of Utah Code Title 34, Chapter 39, Section 3 (copy available upon request). Matus will advise the Company promptly in
writing of any inventions that Matus believes meet the criteria in Utah Code Title 34, Chapter 39, Section 3 and are not otherwise
disclosed on Exhibit C.

 

(c) 
Works for Hire. Matus acknowledges that all original works of authorship which are made by me (solely or jointly
with others) within the scope of my employment, and which are protectable by copyright are “works made for hire” pursuant
to the United States Copyright Act (17 U.S.C. Section 101).

 

(d) 
Disclosure of Prior Inventions. Inventions, if any, patented or unpatented, which Matus made prior to the commencement
of employment with the Company are excluded from the scope of this Agreement. To preclude any possible uncertainty, Matus has set forth
in Exhibit C (Prior Inventions) attached hereto a complete list of all Inventions that Matus alone or jointly with others, conceived,
developed or reduced to practice or caused to be conceived, developed or reduced to practice prior to the commencement of employment with
the Company, that Matus considers to be his property or the property of third parties and that Matus wishes to have excluded from the
scope of this Agreement (collectively referred to as “Prior Inventions”). If disclosure of any such Prior Invention would
cause Matus to violate any prior confidentiality agreement, Matus understands that he is not to list such Prior Inventions in Exhibit
C but am only to disclose a cursory name for each such invention, a listing of the party(ies) to whom it belongs and the fact that full
disclosure as to such inventions has not been made for that reason. A space is provided on Exhibit C for such purpose. If no such disclosure
is attached, Matus represents that there are no Prior Inventions. If, in the course of employment with the Company, Matus incorporates
a Prior Invention into a Company product, process or machine, the Company is hereby granted and shall have a nonexclusive, royalty-free,
irrevocable, perpetual, worldwide license (with rights to sublicense through multiple tiers of sublicensees) to make, have made, modify,
use, and sell such Prior Invention. Notwithstanding the foregoing, Matus agrees that he will not incorporate, or permit to be incorporated,
Prior Inventions in any Company Inventions without prior written consent.

 

		12.	Confidential Information.

 

(a) Disclosure
of Confidential Information. Matus recognizes, acknowledges, and agrees that he has had and will continue to have access to secret
and confidential information regarding the Company and Company, its subsidiaries, and their respective businesses (“Confidential
Information”), including but not limited to, its products, methods, formulas, software code, patents, sources of supply, customer
dealings, data, know-how, trade secrets and business plans, provided such information is not in or does not hereafter become part of the
public domain, or become known to others through no fault of Matus. Matus acknowledges that such information is of great value to the
Company and Company, is the sole property of the Company and Company, and has been and will be acquired by him in confidence. In consideration
of the obligations undertaken by the Company herein, Matus will not, at any time, during or after his employment hereunder, reveal, divulge,
or make known to any person, any information acquired by Matus during his employment, which is treated as confidential by the Company,
and not otherwise in the public domain. The provisions of this Section 12 shall survive the termination of Matus’ employment hereunder.

 

Matus affirms
that he does not possess and will not rely upon the protected trade secrets or confidential or proprietary
information of any prior employer(s) in providing services to the Company or its subsidiaries.

 

In the
event that Matus’ employment with the Company terminates for any reason, Matus shall deliver forthwith to the Company any and
all originals and copies, including those in electronic or digital formats, of Confidential Information; provided, however, Matus
shall be entitled to retain (i) papers and other materials of a personal nature, including, but not limited to, photographs,
correspondence, personal diaries, calendars and rolodexes, personal files and phone books, (ii) information showing his compensation
or relating to reimbursement of expenses, (iii) information that he reasonably believes may be needed for tax purposes and (iv)
copies of plans, programs and agreements relating to his employment, or termination thereof, with the Company.

 

NOTICE
OF IMMUNITY UNDER THE DEFEND TRADE
SECRETS ACT. The Economic Espionage Act of

1996, as amended by the Defend Trade
Secrets Act of 2016, states at 18 U.S.C. § 1833(b):

 

“An individual shall not be held
criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that—(A) is made—(i)
in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for
the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit
or other proceeding, if such filing is made under seal.”

 

Accordingly, the parties to this Agreement
have the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole
purpose of reporting or investigating a suspected violation of law. Furthermore, an employee also has the right to disclose trade secrets
in a document filed in a lawsuit for retaliation against such reporting, but only if (a) the filing is made under seal and (b) the trade
secret is not disclosed except pursuant to a court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b)
or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b)

 

		13.	Section 409A.

 

The provisions
of this Agreement are intended to comply with or are exempt from Section 409A of the Code (“Section 409A”) and the related
Treasury Regulations and shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section
409A. The Company and Matus agree to work together in good faith to consider amendments to this Agreement and to take such reasonable
actions necessary, appropriate, or desirable to avoid imposition of any additional tax under Section 409A or income recognition prior
to actual payment to Matus under this Agreement.

 

It is intended that
any expense reimbursement made under this Agreement shall be exempt from Section 409A. Notwithstanding the foregoing, if any expense reimbursement
made under this Agreement shall be determined to be “deferred compensation” subject to Section 409A (“Deferred Compensation”),
then (a) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, (b) the amount
of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for
reimbursement, or in-kind benefits to be provided, in any other taxable year (provided that
this clause (b) shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely
because such expenses are subject to a limit related to the period the arrangement is in effect) and (c) such payments shall be made on
or before the last day of the taxable year following the taxable year in which the expense was incurred.

 

With respect to
the time of payments of any amount under this Agreement that is Deferred Compensation, references in the Agreement to “termination
of employment” and substantially similar phrases, including a termination of employment due to Matus’ Disability, shall mean
“Separation from Service” from the Company within the meaning of Section 409A (determined after applying the presumptions
set forth in Treasury Regulation Section 1.409A-1(h)(1)). Each installment payable hereunder shall constitute a separate payment
for purposes of Treasury Regulation Section 1.409A-2(b), including Treasury Regulation Section 1.409A-2(b)(2)(iii). Each payment that
is made within the terms of the “short- term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4) is intended
to meet the “short-term deferral” rule. Each other payment is intended to be a payment upon an involuntary termination from
service and payable pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii), et. seq., to the maximum extent permitted by that regulation,
with any amount that is not exempt from Code Section 409A being subject to Code Section 409A.

 

Notwithstanding
anything to the contrary in this Agreement, if Matus is a “specified employee” within the meaning of Section 409A at the time
of Matus termination, then only that portion of the severance and benefits payable to Matus pursuant to this Agreement, if any, and any
other severance payments or separation benefits which may be considered Deferred Compensation (together, the “Deferred Separation
Benefits”), which (when considered together) do not exceed the Section 409A Limit (as defined herein) may be made within the first
six (6) months following Matus’ termination of employment in accordance with the payment schedule applicable to each payment or
benefit. Any portion of the Deferred Separation Benefits more than the Section 409A Limit otherwise due to Matus on or within the six
(6) month period following Matus’ termination will accrue during such six (6) month period and will become payable in one lump sum
cash payment on the date six (6) months and one (1) day following the date of Matus’ termination of employment. All subsequent Deferred
Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding
anything herein to the contrary, if Matus dies following termination but prior to the six (6) month anniversary of Matus’ termination
date, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable
after the date of Matus’ death and all other Deferred Separation Benefits will be payable in accordance with the payment schedule
applicable to each payment or benefit.

 

For purposes
of this Agreement, “Section 409A Limit” shall mean a sum equal to (x) the amounts payable within the terms of the “short-term
deferral” rule under Treasury Regulation Section 1.409A- 1(b)(4) plus (y) the amount payable as “separation pay due to involuntary
separation from service” under Treasury Regulation Section 1.409A-1(b)(9)(iii) equal to the lesser of two (2) times: (i) Matus’
annualized compensation from the Company based upon his annual rate of pay during Matus’ taxable year preceding his taxable year
when his employment terminated, as determined under Treasury Regulation 1.409A- 1(b)(9)(iii)(A)(1); and (ii) the maximum amount that may
be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Matus’ employment
is terminated.

 

		14.	Miscellaneous.

 

(a)  
Neither Matus nor the Company may assign or delegate any of their rights or duties under this Agreement without the express
written consent of the other; provided, however, that the Company shall have the right to delegate its obligation of payment of all sums
due to Matus hereunder, provided that such delegation shall not relieve the Company of any of its obligations hereunder.

 

(b) 
This Agreement constitutes and embodies the full and complete understanding and agreement of the parties with respect to
Matus’ employment by the Company, supersedes all prior understandings and agreements, whether oral or written, between Matus and
the Company, and shall not be amended, modified, or changed except by an instrument in writing executed by the party to be charged. The
invalidity or partial invalidity of one or more provisions of this Agreement shall not invalidate any other provision of this Agreement.
No waiver by either party of any provision or condition to be performed shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same time or any prior or subsequent time.

 

(c) 
This Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto and their respective
successors, heirs, beneficiaries and permitted assigns.

 

(d) 
The headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning
or interpretation of this Agreement.

 

(e)  
All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing
and shall be deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested,
postage prepaid, or by reputable national overnight delivery service (e.g., Federal Express) for overnight delivery to the party at the
address set forth in the preamble to this Agreement, or to such other address as either party may hereafter give the other party notice
of in accordance with the provisions hereof. Notices shall be deemed given on the sooner of the date received or the third business day
after deposited in the mail or one business day after deposited with an overnight delivery service for overnight delivery.

 

(f) 
This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, and each
of the parties hereto irrevocably consents to the jurisdiction and venue of the federal and state courts located in the State of Delaware
for any disputes arising out of this Agreement, or Matus’ employment with the Company. The prevailing party in any dispute arising
out of this Agreement shall be entitled to his or its reasonable attorney’s fees and costs.

 

(g) 
This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one of the same instruments. The parties hereto have executed this Agreement as of the date set
forth above.

 

(h) 
Matus represents and warrants to the Company, that he has the full power and authority to enter into this Agreement and
to perform his obligations hereunder and that the execution and delivery of this Agreement and the performance of his obligations hereunder
will not conflict with any agreement to which Matus is a party.

 

(i) 
The Company represents and warrants to Matus that it has the full power and authority to enter into this Agreement and to
perform its obligations hereunder and that the execution and delivery of this Agreement and the performance of its obligations hereunder
will not conflict with any agreement to which the Company is a party.

 

IN WITNESS WHEREOF, Matus and the Company have caused this
Matus Employment Agreement to be executed as of the date first above written.

 

 

[Signature
page follows immediately]

    	 

    	 

    

 

 

COMPANY:

RED CAT HOLDINGS, INC.

 

 

By:

 

 

Name: Jeff Thompson Title: CEO

 

 

EMPLOYEE:

George Matus By:

Name: George Matus Title: CEO, Teal Drones

 

 

 

    	 

    	 

    

EXHIBIT A

Restricted
Stock Units

 

400,000 shares of restricted common stock. 25% shall vest
upon the closing of the acquisition, 25% shall vest 12 months thereafter, then 6.25% quarterly until fully vested.

 

 

Restricted
Stock Unit Vesting Accelerators

 

		·	50% of outstanding shares shall vest 12-months from the effective date, if the trailing
12 month’s revenue is greater than $10 million.

		·	100% of outstanding shares shall vest 24-months from the effective date, if trailing
12-month’s revenue is greater than $15 million.

 

 

*25% margin must be maintained
for accelerators to be implemented.

    	 

    	 

    

 

EXHIBIT B

Stock Options

 

If by September 1, 2023, the below revenue targets
are attained with a margin equal to or greater than 25%, the corresponding stock option amount shall be granted.

 

		·	Additional 150,000 options at $13 million in revenue

		·	Additional 150,000 options at $18 million in revenue

		·	Additional 150,000 options at $25 million in revenue

		·	Additional 150,000 options at $30 million in revenue

 

A 25% margin must be maintained for the additional
option grant. All options will have a 90-day vesting schedule once granted.

If Red Cat CEO or COO agree in writing that Teal
Drones revenue is more important than maintaining a minimum 25% margin, the reduced margin will not impact the option grants.

    	 

    	 

    

 

EXHIBIT C

Prior
Inventions

 

Below is a complete list of all inventions
that Matus alone or jointly with others, conceived, developed, or reduced to practice or caused to be conceived, developed, or reduced
to practice prior to the commencement of employment with the Company. Matus considers these inventions to be his property or the property
of third parties and wishes to have excluded from the scope of this Agreement (collectively referred to as “Prior Inventions”).Exhibit 10.1

 

The Supplier Contract

 

Party A: Flower Crown (Hainan) Cross-border E-commerce Co., Ltd.

 

Party B: Hainan Supply and Marketing Daji Digital Technology Industry
Co., Ltd.

 

In accordance with the Civil Code of the
People's Republic of China and other laws and regulations, Party A and Party B conclude this Contract through friendly consultation
and in accordance with the principles of equality, voluntariness, fairness, honesty and faith.

 

In view and background: Party B, as the supply chain product provider,
shall provide the real customer information and product order information provided by Party A

 

The corresponding products are given to the customer, and Party A shall
pay the relevant contributions to Party

 

Article 1 Cooperation

 

Party A: Hainan Supply and Marketing Daji Digital Technology Industry
Co., Ltd., authorized representative: Lin Jing

 

Tel.:

 

E-mail:

 

Address:

 

Party Huazhiguan (Hainan) Cross-border E-commerce Co., Ltd.

 

Tel.:

 

E-mail:

 

Address:

 

The second noun definition

 

2.1 Yi
Fa: refers to two types of bonded zone delivery and direct mail delivery, and Party B shall directly deliver the goods to Party A according
to the order provided by Party A In the hands of the customer.                                                                                    )

 

    Page 1 of 8

     

    

 

Flower Crown (Hainan) Cross-border E-commerce Co., Ltd

 

2.2 Product
scope and supply price: Party A shall login to Party B's website (http://shop.jxluxventure.com/) as shown on the web site

 

Product
information and price, or a quotation provided by Party B to Party A by mail or otherwise, if not otherwise stated or agreed, the
price or

 

The quotation has included cross-border comprehensive tax / tariffs, customs declaration fees, third-party payment agency
settlement service fees (if any).

 

2.3 Party A shall pay in advance
and Party B shall deliver delivery to the place designated by Party A within the agreed time.

 

Article 3 Product Order

 

3.1 Party A subscribes to
the "Global Easy Enjoy Hui" application through Youzan Application Market. After the successful subscription, Party B can directly
obtain Party A's cloud warehouse

 

Praise the original orders of store users.

 

3.2 Party A shall pay the
relevant expenses for the application of "Global Easy" through the crab platform.As of the date of the signing of this agreement,
there is praise

 

The minimum cost standard for cross-border application in the application
market is RMB 2,000 yuan / year.Party B shall pay within 30 working days after Party A pays

 

Party A shall issue a special invoice for the tax increase.

 

33 Party B shall confirm and inform Party A of the confirmation results
within two working days after receiving the order.Party A shall display the library according to Party B's system

 

Save the order, and Party B shall arrange the delivery according to
Party A's order.The order provided by Party A shall contain all the information necessary for Party B's delivery.As

 

If it is false, Party A shall bear the consequences by itself.

 

3.4 Party B shall be responsible
for delivering the products to Party A's customer at the agreed time and transportation mode according to the information specified in
the order

 

The address provided shall bear the express delivery and customs clearance
expenses incurred by Party B.

 

3.5 Par t y B undertakes that
all the products delivered shall meet the order and the t Office and the relevant laws and laws of the country of origin on product quality

 

The O and industry spiral.

 

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Flower Crown (Hainan) Cross-border E-commerce Co., Ltd

 

3.6 Non-trace delivery: Party B promises that
all products delivered shall use neutral packaging without any information of Party B or supplier.

 

3.7 For product price
change, Party B is obliged to notify Party A as soon as possible and inventory shortage.Party B shall at least change in the product
price

 

Notice Party A 3~5 working days before dynamic or inventory shortage, in WeChat, email or website announcement, so that Party
A can arrange mediation

 

Grid adjustment and product up and down shelf matters.

 

3.8 If
Party A needs to make promotional activities, it shall notify Party B 5-7 working days in advance, and Party A does inventory locking,
otherwise Party A shall bear Party A losses due to insufficient inventory. Party A requires Party B to pay a certain amount of warehouse
advance in advance according to the value and term of the lock warehouse. The amount of warehouse advance payment shall be determined
in accordance with the lock rules of Party B. Party B will lock the warehouse according to Party A's requirements.After the completion
of the library, if the advance payment has any balance, it shall be transferred to the daily sales advance payment for Party A's daily
purchase deduction of Party B, or after the refund application submitted by Party A, Party A shall return it to Party A's account within
5 working days.If Party A fails to apply to Party B for lock payment and advance payment, Party B shall not be liable for the delay and
unable delivery due to the inventory oversold, and the relevant consequences shall be borne by Party A.

 

Article 4 Settlement of payment for goods

 

4.1 Party B shall, based on
the product order information of Party A, directly deduct the settlement price, taxes and other related expenses from the advance payment.

 

 4.2 Party A's first recharge payment for goods shall not be less than RMB [10,000] for Party B deducting payment settlement, taxes and other related maintenance.If the advance payment paid by Party A is not sufficient to offset the amount generated by the order on the same day, Party B has the right to suspend the delivery of the goods.

 

In order to ensure that Party A's sales are not affected, Party B shall
remind Party A when the advance payment is less than [20%] or below (including) of the advance payment amount agreed by both parties.

 

4.3 Both parties agree
that RMB shall be used as the settlement currency, and the system settlement data of Party B shall prevail.

 

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Crown of Flower (Hainan) Police Ming Business Co., Ltd

 

 4.4 Bank account information of both parties is as follows:

 

 (1) Party A's Bank account information:

 

Account name: [Hainan Supply and Marketing Daji Digital Technology
Industry Co., Ltd.]

 

Bank Account Number: [266283235022]

 

Yinzhao said: [Bank of China Xiuying Sub-branch]

 

 (2) Party B's bank account information:

 

Account Name: [Huazhiguan (Hainan) Cross-border E-commerce Co., Ltd.]

 

Bank account number: [46050100513600000712]

 

Bank name: [Business Department of CCB Sanya Branch]

 

If Party A and Party B need
to change the bank account information, they shall notify the other party in writing in advance, otherwise the resulting losses shall
be borne by the party who fails to fulfill the notice obligations.

 

Article 5 The rights and obligations of both parties

 

5.1 Party
A shall timely recharge the advance payment, and Party B shall deliver the products to Party A's customers as agreed herein.

 

5.2 Party
A shall provide relevant materials in accordance with this Agreement and ensure the true reliability of the materials.Party A shall notify
Party B in time.

 

5.3 Party
A and Party A's customers shall fill in the order information truthfully according to the actual situation, including but not
limited to the actual selling price of the goods, the purchase name and ID number.If the loss is caused to Party B by providing the
false order, the false information provider shall bear the legal tenure arising therefrom and compensate Party B for the relevant
losses

 

5-4 Party B shall guarantee that the products provided (including gifts) are the original products, the quality meets the
requirements of the origin, and the source is legitimate and legal, to ensure that the products will not be sold and the products
with the remaining shelf time (if the expiration date has expired, or the remaining shelf life is insufficient 1 / 3 of the total
shelf life of the goods).If Party B violates this Article and causes losses to Party A, Party B shall bear the legal liabilities
arising therefrom and compensate Party A for the relevant losses.

 

5.5 Party
B shall guarantee that the product description, introduction, pictures and other materials provided to Party A meet the actual situation
of the product. If the above materials change, Party B shall timely notify Party A to ensure the authenticity, accuracy and validity of
the materials.If Party B causes losses to Party A because Party B violates this Article, Party B shall bear the resulting legal tenure
and compensate Party A for the relevant losses.

 

5.6 Party
B shall guarantee that the goods prov i ded shall comply with Chinese Customs laws; regulations and relevant trade control regulations.
Party B shall guarantee that the goods sold to Party A have completed all procedures in accordance with the relevant provisions of Law
i, and all products shall not violate any 

 

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Flower Crown (Hainan) Cross-border E-commerce Co., Ltd

 

Intellectual property rights of the third
parties. If Party B violates this Article and causes losses to Party A, Party B shall bear the legal liabilities arising therefrom
and compensate Party A for the relevant losses.

 

Article 6 After-sales service

 

6.1 Cross-border bonded goods
do not support special services such as replacement, reissue, redelivery and express interception, nor do they return or refuse signing
without reason,

 

Party A shall fully explain to its customers.

 

6.2 In
case of any of the following circumstances, Party B does not support the after-sales claim: 6.2.1 goods not sold by Party B; 6.2.2 exceeds
the acceptance time (subject to the express delivery receipt time), that is, more than 24 hours after receipt; 623 sales have been marked
as residual goods, temporary products, processing products; 6.2.4 seckill goods,> warehouse products, virtual goods marked special
after envelope) (e. g. special after-sales policy; 625 did not contact Party B's customer service personnel before return, without the
consent of customer service, and goods

 

All risks of destruction, loss and theft shall be borne by Party A's customers themselves. Party
B shall not provide goods storage, re-delivery, refund and other services, and shall have the right to dispose of such goods if necessary;

 

6.2.6 已
unsealed or used goods (except quality issues), damaged when returned (e. g., the item itself, the original box is damaged or
entangled Coding), incomplete data / E parts (such as packaging, tags, instructions, accessories, gifts, etc.);

 

6.2.7 因 Party A's customers'
own abnormal use (such as incorrect installation) and improper storage (e. g. stored and exposed under abnormal conditions

 

In wet environment, exposed to excessive temperature
or excessive Di environment), and commodity damage or failure due to improper cleaning or normal use (e. g., no standard voltage of electronic
products, etc.);

 

The applicable quality, production process, production
process, identification and other projects of 6.2.8 跨 border commodities all meet the use standards of the country of origin, and
may be consistent with me

 

Country standards are different, once purchased,
it will be considered as accepting the relevant country of origin standards, which is not subject to quality problems.

 

6.3 If Party A or Party A's
customer doubt the authenticity of the goods delivered by Party B, Party B may provide certificates of the authenticity and legality of
the goods.

 

If Party B and Party A or Party A's
customers still cannot solve the authenticity of the goods, the testing party shall submit the goods to the relevant Chinese
mainland relevant inspection agency for inspection. If the relevant Chinese agency cannot conduct the inspection, it shall be
submitted to the commodity manufacturer or the relevant institution in the host country for inspection.If the inspection results are
non-genuine products, all expenses (including inspection expenses, transportation expenses, travel expenses) shall be borne by Party
B, and Party B shall bear all resulting losses of Party A and Party A's customers; If the inspection results are genuine products,
Quanling (including inspection expenses, transportation expenses, travel expenses, etc.) shall be borne by the testing party.If none
of the above methods cannot be tested, it shall be handled by both parties through negotiation.

 

6.4 If the
quality of the goods is inconsistent with the actual goods or the goods are too critical, Party A or Party A's customer shall provide
the relevant quality inconsistency, and accept the return and replacement.Relevant certificates shall be issued by the following agencies:
government management department, industry authoritative testing institutions, brand owners, brand authorized Yi Li party or testing agencies
recognized by both Party A and Party B.

 

6.5 Both
parties unanimously confirm that the scope of after-sales service normally accepted by Party B is contained in Annex I, After-sales Service
of the Contract. If this content is updated, Party B shall timely inform Party A of the latest after-sales service scope.

 

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Flower Crown (Hainan) Cross-border E-commerce Co., Ltd

 

Article 7 Liability for breach of contract

 

7.1 Any
party who fails to perform its obligations or delays in shall be deemed a breach, and the party shall be damages.

 

7.2 If the amount of advance
payment of Party A is insufficient, Party B has the right to stop the delivery, and does not constitute a breach of contract, and shall
not bear any liability accordingly.

 

7.3 If Party B fails to deliver the goods on time due to its personal reasons, Party B shall timely notify

 

Party A and inform the cause, and bear the losses caused by Party A.

 

7.4 The
two parties shall strictly abide by the confidentiality obligations of the trade secrets of the other party learned in the transaction,
and shall not disclose or disclose the business secrets of the other party, except with the written authorization of the third party.If
the intentional breach of contract, the defaulting party shall have the right to ask the defaulting party to compensate for the corresponding
losses and pay liquidated damages.

 

Article 8 Confidentiality Conditions

 

8.1 Confidential
Information mentioned in this Agreement means any business or bank provided from the Disclosure to the information recipient

 

For the relevant information that the information disclosing party
has not yet disclosed.

 

8.2 Both Parties and their
employees shall assume the confidentiality of information and documents for two years after the termination / termination of this
Agreement.The Group companies, parent companies, affiliates, affiliates, or other judicial, administrative, administrative,
legislative, regulatory authorities, etc., or by applicable laws, regulations or other administrative rules, shall not be deemed a
breach of confidentiality obligations, except for internal control verification, financial audit, asset evaluation, and legal
counsel.confidentiality period until the confidential information is made public.Neither party may disclose the above information to
any third party without the written permission of the other party.Confidential Information may be used to perform the purposes of
this Agreement.Both parties shall take all reasonable means to avoid the disclosure of confidential information.If such employment
is required for the performance of this Agreement                                                                             >

 

When the officers disclose confidential information,
both parties shall ensure that their employees strictly abide by the confidentiality obligations.

 

Article 9 Change, termination and termination of the Agreement          ’<

 

Sha

 

9.1 Either party not proposes
to terminate this Agreement due to breach of the other party shall notify the other party in writing 30 days in advance.This Agreement
shall be terminated after receiving written confirmation from the other party.

 

9.2 Either Party has the right
to terminate this Agreement in writing without prior notice thereof if Moto dissolve from the date of service of notice.

 

 9.2.1 出 Upon the dissolution of the Agreement as agreed in this Agreement or Annex;

 

9.2.2 受
shall revoke the business license or suspension of business to the competent administrative department of the government, and issue other
cases of losing its legal business status or qualification Born;

 

 9.2.3 申 requested bankruptcy and entered the liquidation process;

 

9.2.4 未 transfers the
rights or obligations of this Agreement in whole or in part to a third party with the consent of the third party;

 

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Flower Crown (Hainan) Cross-border E-commerce Co., Ltd

 

9.2.5 有 evidence of commercial bribery.

 

9.3 If this Agreement is terminated
or terminated, Party A still has a balance in the account established by Party B and Party A has no breach or any violation reviewed by
Party B

 

For the compensation due to the behavior, Party A shall have the right
to require Party B to return all the balance charged to the account within 5 working days.

 

Article 10 The Force Majeure clause

 

10.1 Any party to this Agreement suffers from force majeure events
(including, but not limited to, war, rainstorm, typhoon, debris flow, earthquake, etc, And the impact of the COVID-19 outbreak), If the
obligations of this Agreement can not be fulfilled, Depending on the extent of the force majeure events affected, Liability may be exempted
in part or in all; However, the party who suffers from the force majeure event shall timely notify the other party within 24 hours of
the occurrence of the force majeure event, And, within 3 working days after the end of the Force Majeure Event, provide the other party
with proof of the occurrence, the scope of influence and the degree of influence of the Force Majeure Event, Otherwise, the party who
cannot perform the force majeure event shall not be exempted from liability; Any {either party suffers a force majeure event after delaying
the performance of its obligations, No exemption from liability.

 

Article 11 Other agreements

 

11.1 Effective date of cooperation: from 02)]
year [8] month [3 |] to [" coincidence year [@] month [3.] The end of the day.

 

1L2 The performance and implementation of this
Agreement shall apply to the mainland laws in force of the People's Republic of China.Due to the performance of this Agreement, the parties
shall actively settle it through friendly consultation.If the negotiation fails, a lawsuit ° shall be filed in the people's court
where the agreement is signed

 

11.3 For matters not covered
herein, both parties shall sign a separate written supplementary agreement separately.The Supplementary Agreement and the annex to the
Agreement are an integral part of this Agreement and have the same legal force as this Agreement, and the Parties may sign other attachments
on the relevant matters according to the circumstances of this Agreement.

 

11.4 Any notice issued under
this Contract shall be given in writing (including but not limited to runoff, delivery, email, fax, etc.).

 

11.5 If the two parties have
no more I business exchanges within 3 months after the completion of the last business transaction, the agreement will be automatically
terminated and the cooperation will be terminated.After termination of this Contract, both parties shall continue to perform after-sales
and settlement of surplus payment in accordance with the contract.

 

11.6 This Agreement shall
come into force as of the date of signing of both parties, in duplicate, with one copy held by each party, with the same legal effect.

 

11.7 In
case of communication address and email of one party, it shall notify the other party in writing 7 working days in advance and confirmed
by both parties, otherwise the notice sent by the other party according to the communication address and / or email specified in this
Agreement shall still be regarded as valid.

 

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