Document:

Exhibit 10.1

 

NEITHER
THIS CONVERTIBLE LOAN AGREEMENT NOR THE SECURITIES INTO WHICH THE LOANS MADE PURSUANT HERETO ARE CONVERTIBLE HAVE BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS.

 

Convertible
Loan Agreement

 

This
Convertible Loan Agreement (the “Agreement”) is made and entered into as of March 9, 2020 (the “Effective
Date”), by and among UAS Drone Corp., an OTC corporation having its registered office at 420 Royal Palm Way, Palm Beach
FL 33480, USA (the “Company”) and [________] (the “Lender”).

 

		Whereas,	the
                                         Company and Duke Robotics, Inc., a company with its headquarters at 515 Las Olas Blvd.,
                                         Ft. Lauderdale, FL 33301 (“Duke”), entered into that certain Share
                                         Exchange Agreement, dated March 4, 2020 attached hereto as Exhibit A (the
                                         “Share Exchange Agreement”), pursuant to which Duke shall become a
                                         majority owned subsidiary of the Company (the “Share Exchange”);

 

		Whereas,	as
                                         part of the Share Exchange, the Board of Directors of the Company has determined that
                                         it is in the best interest of the Company to raise capital by means of convertible loans,
                                         in an aggregate principal amount of USD $965,000;

 

		Whereas,	the
                                         Company desires to issue and sell to the Lender, and the Lender, severally and not jointly
                                         with any other security holder of the Company, desires to purchase from the Company,
                                         the Securities (as defined herein) subject to the terms and conditions set forth in this
                                         Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the
                                         “Securities Act”) and Rule 506(b) of Regulation D and Rule 903 of
                                         Regulation S (“Regulation S”) promulgated thereunder;

 

		Whereas,	the
                                         Loan and the Conversion Shares, collectively are referred to herein as the “Securities”);
                                         and

 

		Whereas,	the
                                         Lender desires to provide the Loan to the Company pursuant to the terms and conditions
                                         set forth herein.

 

Now
Therefore, the Company and the Lender (each, a “Party” and collectively, the “Parties”),
agree as follows.

 

		1.	Interpretation;
                                         Definitions

 

		1.1.	The
                                         recitals above and schedules hereto constitute an integral part hereof.

 

		1.2.	The
                                         headings of the sections and subsections of this Agreement are for convenience of reference
                                         only and are not to be considered in construing this Agreement.

 

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		2.	The
                                         Loan

 

		2.1.	At
                                         the closing of the Share Exchange, the Lender shall provide the Company a convertible
                                         loan (the “Loan”) in the amount of $241,250 (the “Loan Principal”).

 

		2.2.	At
                                         the Closing (as such term is defined below) the Lender shall pay the Loan Principal in
                                         U.S. dollars, to the Company by way of a bank transfer. Prior to the Closing, the Lender
                                         shall deposit the Loan Principal with an escrow agent, pursuant to the terms of the Escrow
                                         Agreement annexed hereto as Exhibit B.

 

		2.3.	The
                                         Loan Principal shall bear simple interest at a rate equal to 15% per annum commencing
                                         on the date the Company receives the Loan Principal and until full repayment thereof
                                         in accordance with the terms hereof (the “Interest”, and the Loan
                                         Principal and the Interest accrued thereon, the “Loan Amount”). The
                                         Interest shall be computed on the basis of a 360-day year, comprised of twelve months
                                         counting 30 days each. For periods of indebtedness of less than one month the Interest
                                         shall be calculated pro rata to the actual number of days of the month then elapsed.
                                         For the avoidance of doubt, the Interest is not contingent on inter alia the receipts,
                                         sales, income, profits, cash flow, receivables or property of the Company, or any dividends,
                                         distributions, or similar payments thereby.

 

		2.4.	The
                                         Company shall bear all bank costs, charges, fees, conversion costs and commissions imposed
                                         on the Lender related to the transfer of each payment to and from the Lender hereunder.

 

		3.	Repayment

 

		3.1.	The
                                         Loan Principal shall be due and repaid by the Company to the Lender on the one-year anniversary
                                         of receiving the Loan Principal, subject to any permitted extensions as set forth herein
                                         (the “Maturity Date”).

 

		3.2.	Subject
                                         to its compliance with any and all terms of the material terms of this Agreement, the
                                         Company may extend the Maturity Date for one year by providing written notice to the
                                         Lenders up to two months prior to the Maturity Date; in such event, all the provisions
                                         of this Agreement will continue to apply. The Company shall not be entitled to extend
                                         the Maturity Date, if, following the Closing, it has funded its operations in any manner
                                         other than the sale and issuance of its Common Stock (“Equity Funding”).
                                         For the avoidance of doubt, the issuance of convertible debentures or other forms of
                                         indebtedness, whether convertible into equity of the Company or not, shall not be deemed
                                         Equity Funding.

 

		3.3.	The
                                         Interest shall be paid by the Company on a monthly basis by no later than the 15th
                                         day of each calendar month.

 

		3.4.	The
                                         Company may repay the outstanding Loan Amount in full, and any part thereof, at any time,
                                         with no prepayment penalty. However, the Company shall provide the Lender with 3 business
                                         days written notice prior to such repayment, during which time the Lender may elect to
                                         convert any or all of the outstanding Loan Amount into Conversion Shares as provided
                                         herein.

 

		3.5.	Any
                                         payments to be made by the Company to the Lender hereunder shall be paid by way of a
                                         bank transfer to the Lender’s bank account pursuant to wiring instructions given
                                         in writing by the Lender, in U.S. dollars.

 

		3.6.	The
                                         Company shall pay any and all amounts due hereunder without setoff, deduction, counterclaim
                                         or defence of any kind, unless such deduction or withholding is required by law.

 

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		3.7.	All
                                         payments shall be applied first to payment in full of any costs incurred in the collection
                                         of any sum due under this Agreement, including (without limitation) reasonable attorney’s
                                         fees, then to the payment in full of any late charges, then to the payment of interest
                                         and finally to the reduction of the unpaid principal balance of the Loan.

 

		3.8.	Mandatory
                                         Payments. In addition to all other principal and interest payments provided for in
                                         this Agreement, the Company shall also make mandatory payments in accordance with the
                                         provisions in this Section.

 

(a) Disposition
of Assets. Upon the sale or other disposition or encumbrance of any material assets by the Company or any subsidiary of the
Company, the Company shall make a mandatory prepayment, on the date of such sale or other disposition, in an amount equal to one
hundred percent (100%) of the proceeds of such disposition net of amounts required to pay taxes and reasonable costs applicable
to such sale or disposition. The foregoing shall not apply to the sale of products by the Company or its subsidiary to their customers
in the ordinary course of business. All references in this Agreement to a subsidiary of the Company, shall refer to Duke and its
subsidiary, Duke Airborne Systems Ltd. Israeli Company number 515051282.

 

(b) Change
of Control. The Company shall make a mandatory prepayment of the entire Loan Amount, on the date following the Closing upon
which it ceases to own free of pledges, liens or other encumbrances 95% (ninety five Percent) of the issued and outstanding securities
of Duke Robotics, Inc, in an amount equal to one hundred percent (100%) of the then unpaid Deemed Outstanding Portion of the Term
Loan and the interest of the Term Loan; provided, however that the parties agree that the implementation of the second stage of
the acquisition of Duke as contemplated by the Share Exchange Agreement, or the transfer of the shares of Duke to a wholly owned
subsidiary of the Company, shall not trigger this Section 3.8(c).

 

(c) Additional
Indebtedness/Financing. In any event following in which the Company or its subsidiary obtains debt financing of any kind or
receives monies in consideration for any redeemable securities or other forms of indebtedness, 25% of all proceeds received by
the Company or its subsidiary in connection with such financing shall be used to repay the Loan, and such amount of the Loan Amount
shall be deemed due and payable.

 

		4.	Conversion
                                         of the Loan Amount

 

		4.1.	Conversion.
                                         At any time prior to the full repayment of the Loan Amount to the Lender, the Lender
                                         shall have the right to convert all or any of the then outstanding and unpaid portion
                                         of the Loan Amount into shares of the Company’s stock (the “Conversion
                                         Shares”) upon prior written notice to the Company.

 

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		4.2.	The
                                         Conversion Shares shall have the same rights, preferences and privileges attached to
                                         the shares of common stock shares of the Company, having a par value of 0.0001 each (“Common
                                         Stock”), as set forth in the Certificate of Incorporation of the Company, as
                                         amended and as in affect at such time. Notwithstanding the preceding sentence, if the
                                         Company issues shares of stock other than Common Stock or other securities (“Alternate
                                         Securities”) prior to the full conversion or repayment of the Loan Amount,
                                         then the Lender shall be entitled to declare that the Conversion Shares shall be Alternate
                                         Securities having the same class, rights, preferences and privileges as will be attached
                                         to such class of Alternate Securities; provided that in order to receive Alternate Securities,
                                         the Lender shall be required to convert the unpaid balance and accrued and unpaid Interest
                                         of the Loan in full. For the avoidance of doubt, if the Company issues, in connection
                                         with a financing or otherwise, various securities, whether independently issued or bundled
                                         together, stocks, options, warrants, debentures or any other securities, the Lender shall
                                         be entitled to elect to convert the Loan Amount into any of the debentures, warrants
                                         or securities or any bundling thereof, at the Conversion Price, as applicable thereto.
                                         Upon the conversion of the Loan and accrued and unpaid Interest into Alternate Securities,
                                         the Loan and this Agreement shall be deemed terminated and the Loan and Interest shall
                                         be deemed to be satisfied in full.

 

		4.3.	Conversion
                                         Price. The conversion price for the Loan Amount (the “Conversion Price”)
                                         shall be determined, with respect to each conversion of the Loan Amount, at the time
                                         of such conversion, as a price per share equal to the lower of:

 

(i) the
lowest effective price per share set in connection with any funds raised by the Company during the six months following the Closing.
Effective price per share means (i) if only shares of Company Common Stock are sold in a transaction, the amount actually
received in cash by the Company and (ii) if shares of Company Common Stock are sold in a transaction and, in connection therewith
additional securities or rights are sold or otherwise issued, the amount actually received in cash by the Company, for the shares
of Company Common Stock and such additional rights upon their issuance, reduced by the aggregate fair market value of the additional
rights (as determined using the Black-Scholes option pricing model or another method determined by the Company in good faith),
in each case divided by the number of shares of Company Common Stock issued in such transaction;

  

(ii)
 80% of the lowest effective price per share set in connection with any funds raise by the Company at any time subsequent to
six months following Closing until such time as the Loans are fully repaid or otherwise converted;

  

(iii) a
price per share reflecting a post-money valuation of the Company of USD $15,000,000 following the next investment in the Company
following Closing; or,

 

(iv) the
New Conversion Price as such term is defined in the debentures dated as of even date herewith between the Company and Alpha Capital
Anstalt and GreenBlock Capital.

 

Item
(ii) above shall not be available to the Lender if the Lender elected that the Conversion Shares into which that part of the Loan
Amount is being converted is an Alternate Security.

  

		4.4.	Conversion
                                         Upon Liquidity Event. Without derogating from the foregoing, if prior to the Maturity
                                         Date, the Company enters into a definitive agreement to consummate an M&A Transaction
                                         (as defined below) or an underwritten public offering (an “Public Offering”
                                         and together with an M&A Transaction, a “Liquidity Event”), and
                                         if the Loan Amount has not previously converted or been repaid pursuant to the terms
                                         provided herein, the Lender shall have the right to elect (i) to convert the entire Loan
                                         Amount into the most senior class of shares issued by the Company immediately prior to
                                         the closing of the Liquidity Event; or (ii) have the entire Loan Amount repaid. The conversion
                                         price for the Loan Amount in a Liquidity Event shall be a price per share equal to the
                                         lower of: (a) a price per share reflecting the valuation of the Company in the Liquidity
                                         Event, on a fully diluted basis, 80% (eighty percent) of the price per share determined
                                         in such Liquidity Event as follows: (i) when such Liquidity Event is Public Offering,
                                         the lowest offer/issue price; (ii) when such Liquidity Event is an M&A Transaction,
                                         as calculated by dividing the aggregate consideration payable to the shareholders of
                                         the Company or as applicable, to the Company, by the number of issued and outstanding
                                         shares of the Company at the time of such Liquidity Event, on a fully diluted and as
                                         converted basis. In the event of a Liquidity Event in which a number of valuations are
                                         used for determining the consideration to be paid to shareholders, the lowest valuation
                                         shall apply; and (b) the Conversion Price determined in accordance with Section 4.3 above.

 

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The
Company shall notify the Lender in writing at least 21 days ahead of the proposed consummation of the Liquidity Event. Within
7 days of the date of the Company’s notice, the Lender shall notify the Company in writing, as to whether its Loan Amount
shall be converted or repaid in accordance with this Section 4.4. Should the Lender not notify the Company within the prescribed
period, it shall be deemed to have elected to convert its Loan Amount.

 

For
the purpose herein an “M&A Transaction” shall mean: (i) a merger, reorganization or
consolidation or any other similar transaction or acquisition of the Company, as a result of which the shareholders of Duke prior
to the Closing of the Share Exchange, do not own, by virtue of their shareholdings in the Company prior to such event, a majority
of the voting shares of the surviving entity (which surviving entity may be the Company) or acquiring entity or the parent company
of such surviving or acquiring entity, or (ii) the disposition of all or substantially all of the assets of the Company (including
by way of a grant of an exclusive license or lease to all or substantially all of the Company’s or any subsidiary’s
intellectual property), or (iii) a sale or other disposition of all or substantially all of the shares (including without limitation
by way of repurchase or redemption by the Company) or a sale or any other transaction or series of related transactions in which
all or substantially all of the issued and outstanding share capital of the Company is acquired by any person (other than a Public
Offering). For clarification purposes only, any subsequent merger or consolidation between the Company and Duke that occurs subsequent
to the closing of the Share Exchange shall not be considered an M&A Transaction. For the purpose herein a “Qualified
Financing” shall mean shall mean the first equity raising by the Company after the Closing of at least $4,000,000 (four
million US dollars) in equity by third parties who are not shareholders of the Company, or at the election of the Lender, any
capital or debt raising of less than $4,000,000 and/or invested by shareholders of the Company; provided that, if prior to the
occurrence of a Qualified Financing as per the foregoing, the Company issues equity securities but does not receive proceeds in
the aggregate amount of US$4,000,000, the Lender shall be entitled to determine, in its sole discretion, that such issuance be
deemed the Qualified Financing for the purpose hereof.

 

		4.5.	Conversion
                                         Upon Event of Default. Without derogating from the foregoing, if prior to the Maturity
                                         Date, the Company enters into Event of Default (as defined below), then the Lender shall
                                         have the right to convert the Loan Amount at the nominal price of the shares ($0.0001
                                         each).

 

		4.6.	Upon
                                         conversion of the Loan Amount, the Company shall issue the Conversion Shares to the Lender,
                                         free and clear of any lien, pledge, claim, charge, encumbrance or third party rights
                                         of any kind, except for any restrictions and limitations under the Company’s Certificate
                                         of Incorporation, as amended from time to time (the “Articles”). No
                                         fractional shares shall be issued upon conversion, and the number of Conversion Shares
                                         due upon conversion shall be rounded to the nearest whole number.

  

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		4.7.	Adjustment.
                                         The number and kind of securities purchasable initially upon the conversion of the
                                         Loan Amount shall be subject to adjustment from time to time upon the occurrence of certain
                                         events, as follows:

 

		4.7.1	Adjustment
                                         for Shares Splits and Combinations. If the Company at any time or from time to
                                         time effects a subdivision of the outstanding shares, the number of shares issuable upon
                                         conversion of the Loan Amount immediately before the subdivision shall be proportionately
                                         increased, and conversely, if the Company at any time or from time to time combines the
                                         outstanding shares, the number of shares issuable upon conversion of the Loan Amount
                                         immediately before the combination shall be proportionately decreased. Any adjustment
                                         under this Section 4.7.1 shall become effective at the close of business on the date
                                         the subdivision or combination becomes effective.

 

		4.7.2	Adjustment
                                         for Certain Dividends and Distributions. In the event the Company at any time,
                                         or from time to time makes, or fixes a record date for the determination of holders of
                                         shares entitled to receive a dividend or other distribution payable in additional shares
                                         of the Company, then and in each such event the number of shares issuable upon conversion
                                         of the Loan Amount shall be increased as of the time of such issuance or, in the event
                                         such a record date is fixed, as of the close of business on such record date, by multiplying
                                         the number of shares issuable upon conversion of the Loan Amount by a fraction: (i) the
                                         numerator of which shall be the total number of shares of the Company issued and outstanding
                                         immediately prior to the time of such issuance or the close of business on such record
                                         date plus the number of shares issuable in payment of such dividend or distribution,
                                         and (ii) the denominator of which is the total number of shares of the Company issued
                                         and outstanding immediately prior to the time of such issuance or the close of business
                                         on such record date; provided, however, that if such record date is fixed and
                                         such dividend is not fully paid or if such distribution is not fully made on the date
                                         fixed thereof, the number of shares issuable upon conversion of the Loan Amount shall
                                         be recomputed accordingly as of the close of business on such record date and thereafter
                                         the number of shares issuable upon conversion of the Loan Amount shall be adjusted pursuant
                                         to this Section 4.7.2 as of the time of actual payment of such dividends or distributions.

 

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		4.7.3	Adjustments
                                         for Other Dividends and Distributions. In the event the Company at any time or
                                         from time to time makes, or fixes a record date for the determination of holders of shares
                                         entitled to receive a dividend or other distribution payable in securities of the Company
                                         other than shares, then in each such event provision shall be made so that the Lender
                                         shall receive upon conversion of the Loan Amount, in addition to the number of shares
                                         receivable thereupon, the amount of securities of the Company that the Lender would have
                                         received had the Loan Amount being exercised, had been exercised for Conversion Shares
                                         immediately prior to such event (or the record date for such event) and had the Lender
                                         thereafter, during the period from the date of such event to and including the date of
                                         exercise, retained such securities receivable by it as aforesaid during such period,
                                         subject to all other adjustments called for during such period under this Section 4.7
                                         and the Articles with respect to the rights of the Lender. The Company shall not make
                                         any cash dividends or distributions to its shareholders until the entire Loan Amount
                                         has been repaid to the Lender.

 

		4.7.4	Other
                                         Transactions. Subject to Section 3.8, in the event that the Company shall issue
                                         shares to its shareholders as a result of a split-off, spin-off or the like, then the
                                         Company shall only complete such issuance or other action if, as part thereof, allowance
                                         is made to protect the economic interest of the Lender either by increasing the number
                                         of Conversion Shares, adjusting the Conversion Price, and/or by procuring that the Lender
                                         shall be entitled, on economically proportionate terms, determined in good faith by the
                                         Company’s Board of Directors, to acquire additional shares of the spun-off or split-off
                                         entities, in the event of an conversion of the Loan Amount.

 

		4.7.5	Other
                                         Dilutive Events. In case any event shall occur as to which the preceding Sections
                                         4.7.1 through 4.7.4 are not strictly applicable but as to which the failure to make any
                                         adjustment would not fairly protect the rights to receive shares represented by this
                                         Agreement in accordance with the essential intent and principles hereof, then, in each
                                         such case, the Company's Board of Directors shall, in good faith, determine what adjustments
                                         are necessary to preserve the rights of the Lender to receive shares represented by this
                                         Agreement.

 

		4.7.6	Adjustment
                                         of Exercise Price. Upon each adjustment in the number of Conversion Shares purchasable
                                         hereunder, the Conversion Price shall be proportionately increased or decreased, as the
                                         case may be, in a manner that is the inverse of the manner in which the number of Conversion
                                         Shares purchasable hereunder shall be adjusted.

 

		4.7.7	Share
                                         Swap. Subject to Section 3.8, other than pursuant to the Share Exchange Agreement,
                                         the Company undertakes not to enter into any share swap agreement or arrangement (such
                                         as a merger, reorganization, or sale of all, or substantially all, of the Company’s
                                         shares) (“Share Swap”), unless the other company to such a Share Swap
                                         agreement undertakes to allot to the Lender, upon, and subject to, the conversion of
                                         the Loan Amount, such securities as were swapped for the shares of the Company, as though
                                         the Lender had held the Conversion Shares on the record date of the Share Swap. In the
                                         event of a Share Swap, the securities issuable upon conversion of the Loan Amount shall
                                         be the swapped securities of such other company (not the Company’s shares). Nothing
                                         in this Section 4.7.7 shall derogate from any other provision of this Agreement or confer
                                         any other interpretation to any other obligation herein.

 

		4.7.8	Notice
                                         of Adjustment. Upon any adjustment to the kind of securities purchasable initially
                                         upon the conversion of the Loan Amount is triggered pursuant to this Agreement, the Company
                                         shall promptly deliver to the Lender by facsimile or email a notice setting forth a brief
                                         statement of the facts requiring such adjustment and the relevant conversion price resulting
                                         from such adjustment.

 

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		5.	Immediate
                                         Repayment of the Loan 

 

		5.1.	Notwithstanding
                                         the foregoing, the Loan Amount shall become due and payable in cash upon the occurrence
                                         of any of the following events prior to the Maturity Date (each, an “Event of
                                         Default”):

 

		(i)	the
                                         liquidation, dissolution or winding up of the Company or any subsidiary of the Company;

 

		(ii)	the
                                         filing by the Company or any subsidiary of the Company of any petition or action for
                                         relief under any bankruptcy, reorganization, insolvency or moratorium law or any other
                                         law for the relief of debtors, now or hereafter in effect, or seeks the appointment of
                                         a custodian, receiver, trustee (or other similar official) of the Company or a subsidiary
                                         of the Company or all or any substantial portion of the Company’s assets or such
                                         subsidiary’s assets, or makes any general assignment for the benefit of creditors
                                         or takes any action in furtherance of any of the foregoing;

 

		(iii)	the
                                         filing, other than by the Lender, of an involuntary petition, or any proceeding or case
                                         is commenced, against the Company or a subsidiary of the Company (unless such proceeding
                                         or case is dismissed or discharged within 30 days of the filing or commencement thereof)
                                         under any bankruptcy, reorganization, arrangement, insolvency, liquidation or moratorium
                                         statute now or hereafter in effect; or

 

		(iv)	the
                                         appointment of a custodian, receiver, trustee, assignee for the benefit of creditors
                                         (or other similar official) appointed for the Company or a subsidiary of the Company
                                         or to take possession, custody or control of all or substantially all of the property
                                         of the Company or a subsidiary of the Company.

 

		(v)	the
                                         breach by the Company or its subsidiary of any material undertaking or obligation under
                                         (1) any financing agreement or credit facility or (2) any other kind of agreement to
                                         which the Company is party and such default is deemed an event of default under such
                                         agreement or may have a Material Adverse Effect on the Company or its subsidiary, unless
                                         such breach is cured within the time prescribed in such agreement. The term Material
                                         Adverse Effect means a material adverse change in, or a material adverse effect upon,
                                         the operations, business, properties, liabilities (actual or contingent), or financial
                                         condition of the Company or its subsidiary.

 

		(vi)	the
                                         failure by the Company to fully or timely discharge its duties and obligations under
                                         this Agreement. A failure to make payments in full and in a timely manner, shall not
                                         be deemed an Event of Default unless the Company has failure to cure such default within
                                         five (5) business days. Any other failure set forth in this Section 5 shall not be deemed
                                         an Event of Default unless such failure or breach has not been cured within 14 (fourteen)
                                         calendar days.

 

		6.	Discharge
                                         of the Loan

 

Upon
full and complete repayment of the Loan Amount, or full and complete conversion of the Loan Amount into Conversion Shares, the
Loan Amount shall be deemed fully discharged, and the Company shall not have any further duties or obligations with respect thereto.

 

		7.	Closing
                                         

 

		7.1.	Closing.
                                         Unless any of the representations or warranties of the Company are incorrect at such
                                         time, or the Company is non-compliant with any covenants pursuant hereto or representation,
                                         warranties or covenants set forth in the Share Exchange Agreement in the form attached
                                         to this Agreement (as is, without waivers, consents or modification) the closing of this
                                         Agreement (“Closing”) shall take place concurrent with the closing of the
                                         Share Exchange. In the event the Share Exchange is not consummated within thirty (30)
                                         days from the date hereof, or, is consummated pursuant to or following a waiver of terms,
                                         modification of terms, updating of disclosures or any provision allowing the parties
                                         thereto to make a determination in accordance with the terms of the Share Exchange Agreement,
                                         the Closing of this Agreement shall only occur with the affirmative written consent of
                                         the Lender.

 

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		7.2.	At
                                         the Closing, the following transactions shall occur simultaneously (no transaction shall
                                         be deemed to have been completed or any document delivered until all such transactions
                                         have been completed and all required documents delivered):

 

		(i)	Board
                                         Resolution. Copies of a duly executed resolution of the Board of Directors shall
                                         be delivered to the Lender, by which, inter alia (i) the execution and performance by
                                         the Company of this Agreement shall have been approved, and (ii) the issuance and allotment
                                         of the Conversion Shares to the Lender upon conversion of the Loan Amount shall have
                                         been approved; and

 

		(ii)	Payment.
                                         The Lender shall either make the Loan Principal available to the Company by wire transfer,
                                         or instruct the Escrow Agent to release the Loan Principal to the Company;

  

		8.	Representations,
                                         Warranties, Undertakings and Covenants of the Company

 

The
Company hereby represents and warrants to the Lender that the statements contained in this Section 8 are true and correct as of
the Closing:

 

		8.1.	Organization.
                                         The Company is duly organized and validly existing under the laws of State of Nevada.
                                         The Company has full corporate power and authority to own, lease and operate its properties
                                         and assets and to conduct its business as now being conducted, and to execute the Agreement,
                                         and to consummate the transactions contemplated hereby and thereby.

 

The
Company is not insolvent, has not committed an act of bankruptcy, has not proposed a compromise/arrangement with its creditors
generally, and no proceedings of liquidation/dissolution/winding-up, stay of proceedings, receivership, bankruptcy, nomination
of any officer of the court, or similar proceedings, have been taken against Company or in connection with any of its assets.

 

		8.2.	Articles.
                                         The Articles which will be in effect upon the Closing are as filed with the SEC Reports
                                         (as defined herein).

 

	8.3.	Authorization.
                                         All corporate action on the part of the Company, its officers, directors and shareholders
                                         necessary for the authorization, execution and delivery of this Agreement and each of
                                         the other agreements entered into by the parties hereto in connection with the transactions
                                         contemplated by this Agreement or the Escrow Agreement (collectively the “Transaction
                                         Documents”), the performance of all obligations of the Company hereunder and
                                         thereunder, has been taken or will be taken prior to, or at, the Closing. No third-party
                                         consents or authorizations are required on the part of the Company in connection with
                                         the consummation of the transactions contemplated by this Agreement. This Agreement is
                                         duly executed and constitutes valid and legally binding obligations, enforceable in accordance
                                         with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization,
                                         moratorium, and other laws of general application affecting enforcement of creditors’
                                         rights generally, or (ii) as limited by laws relating to the availability of specific
                                         performance, injunctive relief, or other equitable remedies.

 

		8.4.	No
                                         Breach. Neither the execution of the Agreement or any other Transaction Document,
                                         nor the consummation of the transactions contemplated hereby or thereby nor compliance
                                         by the Company with the terms and provisions hereof and thereof will conflict with, or
                                         result in a material breach or violation of (i) any note, contract, lease, instrument,
                                         document or agreement to which the Company is a party of, (ii) the Articles or any
                                         other governing instruments, or (iii) any law, statute, ordinance, regulation, order,
                                         injunction, decree, or judgment of any court, arbitrator or other competent judicial
                                         or governmental authority, applicable to the Company.

 

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		8.5.	Share
                                         Capital. The registered share capital of the Company is 110,000,000 shares divided
                                         into 100,000,000 shares of common stock, $0.0001 par value; and 10,000,000 shares of
                                         preferred stock, $0.0001 par value.

 

The
issued share capital of the Company and all warrants, options, convertible securities and/or other rights in the Company, on a
fully diluted basis, as of and immediately following the Closing, shall be as set forth in the capitalization table attached as
Schedule 8.5 (the “Cap Table”). The shareholders identified in the Cap Table as being shareholders
as of the Effective Date, are the lawful owners of record of all of the issued and outstanding share capital of the Company and
of all rights thereto.

 

Except
for the transactions contemplated by this Agreement, and except as set forth in the Cap Table and the Articles, there are no other
shares, convertible securities or outstanding or committed warrants, options or other rights to subscribe for, purchase or acquire
securities from the Company, including without limitation, pre-emptive rights, participation rights, anti-dilution rights or rights
of first refusal.

 

		8.6.	Conversion
                                         Shares. The Conversion Shares, when issued in accordance with the provisions hereof,
                                         shall be duly and validly authorized and issued, shall be issued in compliance with all
                                         applicable laws, including the relevant securities laws of the United States, shall be
                                         fully paid and non-assessable and shall be issued free and clear of any security interest
                                         or pre-emptive rights, except for any restrictions and limitations set forth in the Articles
                                         and will be duly registered in the name of the Lenders in the Company’s Shareholders
                                         Register.

 

		8.7.	SEC
                                         Documents; Financial Statements. The Company has filed all reports, schedules, forms,
                                         statements and other documents required to be filed by it with the Securities and Exchange
                                         Commission (the “SEC”) under Section 13 or 15(d) of the Securities
                                         Exchange Act of 1934 (the “Exchange Act”) during the 2 years preceding
                                         the date hereof (or such shorter period as the Company was required by law or regulation
                                         to file such material) (all of the foregoing filed within the 2 years preceding the date
                                         hereof as amended after the date hereof and all exhibits included therein and financial
                                         statements and schedules thereto and documents incorporated by reference therein, being
                                         hereinafter referred to as the “SEC Documents”) on a timely basis or has
                                         received a valid extension of such time of filing and has filed any such SEC Document
                                         prior to the expiration of any such extension (including pursuant to SEC from 12b-25).
                                         The Company has delivered to the Lender or its representatives, or made available through
                                         the SEC’s website at http://www.sec.gov, true and complete copies of the SEC Documents.
                                         As of their respective dates, the SEC Documents complied in all material respects with
                                         the requirements of the Exchange Act and the rules and regulations of the SEC promulgated
                                         thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time
                                         they were filed with the SEC, 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 statements therein, in the light of the circumstances under which they were made,
                                         not misleading. As of their respective dates, the financial statements of the Company
                                         and its subsidiaries included in the SEC Documents complied as to form in all material
                                         respects with applicable accounting requirements and the published rules and regulations
                                         of the SEC with respect thereto. Such financial statements have been prepared in accordance
                                         with generally accepted accounting principles, consistently applied, during the periods
                                         involved (except (i) as may be otherwise indicated in such financial statements, or (ii)
                                         in the case of unaudited interim statements, to the extent they may exclude footnotes
                                         or may be condensed or summary statements) and fairly present in all material respects
                                         the financial position of the Company as of the dates thereof and the results of its
                                         operations and cash flows for the periods then ended (subject, in the case of unaudited
                                         statements, to normal year-end audit adjustments). No other information provided by or
                                         on behalf of the Company to the Investor which is not included in the SEC Documents contains
                                         any untrue statement of a material fact or omits to state any material fact necessary
                                         in order to make the statements therein, in the light of the circumstance under which
                                         they are or were made, not misleading.

 

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		8.8.	10(b)-5.
                                         The SEC Documents do not include any untrue statements of material fact, nor do they
                                         omit to state any material fact required to be stated therein necessary to make the statements
                                         made, in light of the circumstances under which they were made, not misleading.

 

		8.9.	Sarbanes-Oxley
                                         Act. The Company and its subsidiaries are in compliance with any and all applicable
                                         requirements of the Sarbanes-Oxley Act, that are effective as of the date hereof, and
                                         any and all applicable rules and regulations promulgated by the SEC thereunder that are
                                         applicable to the Company and its subsidiaries and effective as of the date hereof.

 

		8.10.	Investment
                                         Company. The Company is not, and is not an affiliate of, and immediately after receipt
                                         of payment for the Securities, will not be or be an affiliate of, an “investment
                                         company” within the meaning of the Investment Company Act of 1940, as amended.
                                         The Company shall conduct its business in a manner so that it will not become subject
                                         to the Investment Company Act.

 

		8.11.	Registration
                                         Rights. Other than as set forth on Schedule 8.11, no Person has any right
                                         to cause the Company to effect the registration under the Securities Act of any securities
                                         of the Company. There are no outstanding registration statements not yet declared effective
                                         and there are no outstanding comment letters from the SEC or any other regulatory agency.
                                         At Closing the Company and Lender will execute the Registration Rights Agreement in the
                                         form attached as Exhibit C (the “Registration Rights Agreement”),
                                         providing, inter alia, for the registration, of the Conversion Shares. Certificates evidencing
                                         the Conversion Shares shall not contain any legend: (i) while a registration statement
                                         covering the resale of such security is effective under the Securities Act (provided
                                         that if the holder is selling pursuant to the effective registration statement registering
                                         the securities for resale, the holder agrees to only sell such securities during such
                                         time that such registration statement is effective and such holder is not aware or has
                                         not been notified by the Company that such registration statement has been withdrawn
                                         or suspended, and only as permitted by such registration statement), or (ii) following
                                         any sale of such Conversion Shares pursuant to Rule 144, or (iii) if such Conversion
                                         Shares are eligible for sale under Rule 144, or (iv) if such legend is not required under
                                         applicable requirements of the Securities Act (including judicial interpretations and
                                         pronouncements issued by the staff of the Commission). The Company shall cause its counsel
                                         to issue a legal opinion to the relevant transfer agent promptly if required by the transfer
                                         agent to effect the removal of the legend hereunder. If there is an effective registration
                                         statement to cover the resale of the Conversion Shares, or if such Conversion Shares
                                         may be sold under Rule 144 or if such legend is not otherwise required under applicable
                                         requirements of the Securities Act (including judicial interpretations and pronouncements
                                         issued by the staff of the Commission, then such Conversion Shares shall be issued free
                                         of all legends.

 

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		8.12.	Lock-Ups.
                                         Schedule 8.12 sets forth a complete list of all lock-up agreements or share resale
                                         restriction agreements or other statutory share resale restrictions, restricting the
                                         rights of the counterparty from freely selling shares in the Company owned by such party
                                         (“Lock-Up”). Each Lock-Up is valid and in full force and effect and
                                         is enforceable by the Company, in accordance with its terms, subject to: (i) laws of
                                         general application relating to bankruptcy, insolvency and the relief of debtors; and
                                         (ii) rules of law governing specific performance, injunctive relief and other equitable
                                         remedies. Except as set forth on Schedule 8.12, neither the Company nor any other Person
                                         which is a party thereto has violated or breached in any material respect, or committed
                                         any material default under, any Lock-Up. No event has occurred, and no circumstance or
                                         condition exists, that (with or without notice or lapse of time) will, or could reasonably
                                         be expected to: (A) result in a material violation or breach of any of the provisions
                                         of any such Lock-Up; (B) give any Person the right to declare a default or exercise any
                                         remedy under any such Lock-Up; (C) give any Person the right to accelerate the maturity
                                         or performance of any such Lock-Up; or (D) give any Person the right to cancel, terminate
                                         or modify any Lock-Up. The term “Person” means an individual, partnership,
                                         firm, corporation, limited liability company, association, joint venture, trust or other
                                         entity, or any government or political subdivision or agency, department or instrumentality
                                         thereof

 

		8.13.	Private
                                         Placement. Assuming the accuracy of the Lenders’ representations and warranties
                                         set forth in Section 7, no registration under the Securities Act is required for the
                                         offer and sale of the Securities by the Company to the Lender as contemplated hereby.
                                         The issuance and sale of the Securities hereunder does not contravene the rules and regulations
                                         of the OTCQB-MKT (the “Primary Market”).

 

		8.14.	Listing
                                         and Maintenance Requirements. The Company’s Common Stock is registered pursuant
                                         to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed
                                         to terminate, or which to its knowledge is likely to have the effect of, terminating
                                         the registration of the Common Stock under the Exchange Act nor has the Company received
                                         any notification that the SEC is contemplating terminating such registration. The Company
                                         has not, in the 12 months preceding the date hereof, received notice from the Primary
                                         Market on which the Common Stock is or has been listed or quoted to the effect that the
                                         Company is not in compliance with the listing or maintenance requirements of such Primary
                                         Market. The Company is, and has no reason to believe that it will not in the foreseeable
                                         future continue to be, in compliance with all such listing and maintenance requirements.

 

		8.15.	Effectiveness;
                                         Survival. Each representation and warranty herein is deemed to be made on the date
                                         of this Agreement and shall remain in full force and effect for a period of two years
                                         following the Effective Date.

 

		8.16.	Use
                                         of Funds. The Company shall use the proceeds of the Loan Principal for the working
                                         capital needs of its subsidiary Duke Robotics, Inc. in the normal course of business,
                                         substantially in accordance with the enclosed budget on Schedule 8.16.

 

		8.17.	Interest
                                         Reserve. The Company shall at all times until payment in full of its obligations
                                         under this Agreement and termination of this Agreement maintain a reserve equal to three
                                         (3) months of Interest, in an account, free and clear of any encumbrances or liens.

 

		8.18.	Most
                                         Favored Nation. During the period from the date of this Agreement through the
                                         Maturity Date, neither the Company nor its subsidiaries shall enter into any additional,
                                         or modify any existing, agreements with any existing or future investors in the Company
                                         or any of its Subsidiaries that have the effect of establishing rights or otherwise benefiting
                                         such investor/creditor in a manner more favorable in any material respect to such investor/creditor
                                         than a right and benefit established in favor of the Lender by this Agreement, unless,
                                         in any such case, the Lender has been provided with such rights and benefits. Nothing
                                         herein shall be deemed approval for the Company or its subsidiaries to assume or incur
                                         debt with seniority or priority over or equal standing with the Loan.

 

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		8.19.	Duke/USDR
                                         Transaction. Schedule 8.19 hereof contains a list of all material agreements,
                                         undertakings, instruments and other arrangements which shall be valid as of the Closing
                                         or immediately thereafter, entered into by and between: (i) the Company and its stakeholders
                                         (ii) the Company and Duke or its subsidiaries, (ii) the Company and the stakeholders
                                         in Duke and (iv) the Company and any third party not previously listed.

 

		8.20.	Seniority.
                                         The Company shall observe and maintain that the Loan is senior to any other indebtedness
                                         incurred by the Company or its subsidiaries, other than priority granted to suppliers,
                                         contractors, employees and non-affiliated officers of the Company as prescribed by law.

 

		8.21.	Public
                                         Announcements; Confidentiality. From and after the date of this Agreement,

  

(i)
Company hereby covenants and undertakes to Lender that Company shall not (and shall ensure that its representatives do not) issue
any press release or make any public statement regarding (or otherwise disclose to any Person the existence or terms of) this
Agreement or any of the other transactions or documents contemplated by this Agreement, without Lender’s prior written consent.

 

(ii)
the Parties agree that at all times after the date of this Agreement the Parties shall (and the Parties shall ensure that their
respective representatives) keep strictly confidential all information relating to the Company and the Lender.

 

(iii)
Notwithstanding that which is stated elsewhere in this Agreement, to the extent that Company is required under any applicable
securities law, or by the applicable rules of any stock exchange on which Company lists its securities, to deliver any notice
to a stock exchange or relevant securities regulatory authority and/or issue any public announcement with respect to the commercial
relationship between the Parties hereto and/or this Agreement, including the filing of a copy of this Agreement or any schedules,
exhibits or annexes thereof, as may be required by law, it shall be permitted to make such announcement, or file such filing.
Notwithstanding the foregoing, the form of the first public announcement which is required to be to be submitted by the Company
to the Commission in connection with this Agreement is attached hereto as Schedule 8.21. Without prejudice to the foregoing,
with respect to any subsequent public disclosure of the terms of this Agreement which has not been previously made public, including
the filing of the form of this Agreement, Company shall give advance notice to Lender of such impending disclosure which shall
be coordinated with the Lender, and Company shall endeavor in good faith to assist the Lender to secure and enable confidential
treatment of confidential parts of the Agreement.

 

		9.	Representations
                                         and Warranties of the Lender

 

		9.1.	The
                                         Lender hereby represents and warrants to the Company (severally and not jointly with
                                         any other lenders making loans to the Company contemporaneously with this Agreement)
                                         that the statements contained in this Section 9 are true and correct as of the date of
                                         this Agreement and will be true and correct as of the Closing Date.

 

		9.2.	Authorization.
                                         The Lender has full power and authority to enter into this Agreement and the Agreement
                                         constitutes valid and legally binding obligations, enforceable in accordance with its
                                         terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
                                         and other laws of general application affecting enforcement of creditors’ rights
                                         generally, (ii) as limited by laws relating to the availability of specific performance,
                                         injunctive relief, or other equitable remedies.

 

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		9.3.	Purchase
                                         Entirely for Own Account. This Agreement is made with the Lender in reliance upon
                                         the Lender’s representation to the Company, that the Securities are being acquired
                                         for investment for the Lender’s own account, and not with a view to the immediate
                                         resale or distribution of any part thereof, and that the Lender has no present intention
                                         of selling, granting any participation in, or otherwise distributing the same.

 

		9.4.	Investment
                                         Representations. The Lender hereby acknowledges that the Securities have not been
                                         registered under the Securities Laws and that they are being offered and sold pursuant
                                         to exemptions from registration contained in the Securities Laws based in part upon their
                                         representations and warranties contained in this Agreement. Accordingly, Lender hereby
                                         represents and warrants as follows:

 

		(i)	Economic
                                         Risk. It is capable of evaluating the merits and risks of its investment in
                                         Company and has the capacity to protect its own interests. Any interest Securities may
                                         not be sold, pledged or otherwise transferred or hypothecated unless the Securities are
                                         registered pursuant to the Securities Laws, or an exemption from such registration is
                                         available under the Securities Laws, and in the absence of such registration or exemption,
                                         the Lender must bear the economic risk of this investment indefinitely. It understands
                                         that there is no assurance that any exemption from registration under the Securities
                                         Laws will be available and that, even if available, such exemption may not allow the
                                         transfer all or any portion of the Securities under the circumstances, in the amounts
                                         or at the times the Lender might propose.

 

		(ii)	Acquisition
                                         for Own Account. The Lender is acquiring the Securities for its own account for investment
                                         only, and not with a view towards their distribution or resale, without prejudice, however,
                                         to its right, at all times, to sell or otherwise dispose of all or any part of such securities
                                         pursuant to an effective registration statement under the Securities Laws or under an
                                         exemption from such registration and in compliance with applicable securities Laws.

 

		(iii)	Protecting
                                         Its Interest. By reason of its, or of its management’s (if any), business or
                                         financial experience, it has the capacity to protect its own interests in connection
                                         with the transactions contemplated in this Agreement.

 

		(iv)	General
                                         Solicitation. The Securities are not being purchased as a result of any advertisement,
                                         article, notice or other communication regarding the Securities published in any newspaper,
                                         magazine or similar media or broadcast over television or radio or presented at any seminar
                                         or any other general solicitation or general advertisement.

 

		(v)	Company’s
                                         Information. No offering memorandum or similar disclosure document has been prepared
                                         in connection with the offer to acquire the Securities, and it has had the opportunity
                                         to review the Transaction Documents (including all exhibits and schedules thereto) and
                                         the Company’s reports filed publicly with the SEC and has been afforded access
                                         to publicly disclosed information about the Company and its financial condition, results
                                         of operations, business, properties, management and prospects sufficient to enable it
                                         to evaluate its investment and that is necessary to make an informed investment decision
                                         with respect to the investment in the Company. The only representations and warranties
                                         being given by the Company are contained in this Agreement. No broker or agent of the
                                         Company has provided any information or advice with respect to the Securities nor is
                                         such information or advice necessary or desired. 

 

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		(vi)	Rule
                                         144. Lender acknowledges that it is aware that Rule 144 under the Securities Act
                                         which allows for the public resale of restricted and control securities, as the case
                                         may be, if a number of conditions are met, may not necessarily be available with respect
                                         to the Securities and, in any event, is available only if certain conditions are satisfied,
                                         and that any sale of the Securities that might be made in reliance upon Rule 144 may
                                         only be made in accordance with the terms and conditions of such rule and that a copy
                                         of Rule 144 will be delivered to Lender upon request.

 

		(vii)	Purchaser
                                         Status. At the time Lender was offered the Securities, it was, and as of the date
                                         hereof it is an “accredited investor” as defined in Rule 501(a)(1), (a)(2),
                                         (a)(3), (a)(7) or (a)(8) under the Securities Act.

 

		(viii)	Reserved

 

		(ix)	No
                                         Governmental Review. It understands that no United States federal or state agency
                                         or any other government or governmental agency has passed on or made any recommendation
                                         or endorsement of the Securities or the fairness or suitability of the investment in
                                         the Securities nor have such authorities passed upon or endorsed the merits of the offering
                                         of the Securities.

 

		(x)	Restricted
                                         Securities. It understands that the Securities are characterized as “restricted
                                         securities” under the U.S. federal securities laws inasmuch as they are being issued
                                         by the Company in a transaction not involving a public offering and that under such laws
                                         and applicable regulations such securities may be resold without registration in the
                                         United States of America under the Securities Act only. It understands and acknowledges
                                         that: (i) the Securities are being offered and sold without registration under the Securities
                                         Laws in a private placement that is exempt from the registration provisions of the Securities
                                         Laws and (ii) the availability of such exemption depends in part on, and the Company
                                         will rely upon the accuracy and truthfulness of, the foregoing representations and it
                                         hereby consents to such reliance.

 

		(xi)	Independent
                                         Advice. It understands that nothing in this Agreement or any other materials presented
                                         to it by or on behalf of the Company in connection with Securities constitutes legal,
                                         tax or investment advice.

 

		(xii)	Restrictive
                                         Legends. Lender agrees to the imprinting, so long as required, of a legend on any
                                         document or certificate evidencing the Securities may be imprinted with the following
                                         legend substantially in the following form (in addition to any legend required by applicable
                                         state securities or “blue sky” laws):

 

 “[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE] HAS [NOT] BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR
OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE COMPANY SHALL
HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES [AND THE SECURITIES ISSUABLE UPON [CONVERSION] OF THIS
SECURITY] UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.”

 

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Certificates
evidencing the Securities shall not contain any legend (including the legend set forth above), (i) while a registration statement
covering the resale of such Security is effective under the Securities Act, (ii) following any sale of Securities pursuant to
Rule 144, (iii) if such Securities are eligible for sale under Rule 144, or (iv) if such legend is not required under applicable
requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC). The
Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent promptly after the effective date
(the “Effective Date”) of a registration statement if required by the Company’s transfer agent to effect
the removal of the legend hereunder. If all or any portion of the Loan is converted by the Lender at a time when there is an effective
registration statement to cover the resale of the Conversion Shares, such Conversion Shares shall be issued free of all legends.
The Company agrees that following the Effective Date or at such time as such legend is no longer required under this section,
it will, no later than 2 Trading Days following the delivery by a Lender to the Company or the Company’s transfer agent
of a certificate representing Conversion Shares, issued with a restrictive legend (such 2nd Trading Day, the “Legend
Removal Date”), deliver or cause to be delivered to such Lender a certificate or book entry notation representing such
shares that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions
to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this section. The Lender acknowledges
that the Company’s agreement hereunder to remove all legends from Conversion Shares is not an affirmative statement or representation
that such Conversion Shares are freely tradable. The Lender, agrees that the removal of the restrictive legend from certificates
representing Securities as set forth in this section is predicated upon the Company’s reliance that the Lender will sell
any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery
requirements, or an exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold
in compliance with the plan of distribution set forth therein.

 

		10.	Transfer
                                         of Loans 

 

		10.1.	The
                                         Lender may transfer its rights in the Loan, and following the conversion of the Loan
                                         the Lender may transfer the Conversion Shares, without the prior written consent of the
                                         Company, subject only to the general limitations on transfer of securities under applicable
                                         law.

 

		10.2.	Subject
                                         to the provisions of this Section, nothing contained in this Agreement shall be construed
                                         as preventing Lender, at any time after the date hereof, from selling, pledging, assigning
                                         or transferring the Loan and in connection with any such sale, pledge, assignment or
                                         transfer from assigning this Agreement to the purchaser of the Loan.

 

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		10.3.	Notwithstanding
                                         the foregoing, the Loan is issued as a fully registered instrument and will be registered
                                         to the Lender on the books of Company (within the meaning of Treasury Regulation Section
                                         1.871-14(c)(1)(i)(A)). The Company as registrar of the Loan shall treat the Lender as
                                         the absolute owner thereof (unless the Company has been given notice of the transfer
                                         of the Loan in accordance with the provisions of the following sentence) for all purposes,
                                         including the right to receive payments of principal of, and interest on, the Loan. The
                                         right to receive the principal of, and interest on, the Loan may be transferred only
                                         upon the delivery to the Company of written notice of such transfer, duly executed by
                                         the registered owner of the Loan (or its attorney-in-fact or legal representative) containing
                                         information sufficient to enable the Lender to identify each owner of an interest in
                                         the Loan, and the surrender of the existing instrument and the reissuance by the Company
                                         to the new holder of such instrument or a replacement instrument. Each successor holder
                                         shall acknowledge that in order to obtain the benefit of the “portfolio interest
                                         exemption” (if applicable) such holder shall provide the necessary withholding
                                         certificates (including Internal Revenue Service Form W-8BEN-E). Each permitted transfer
                                         of ownership of an interest in the Loan shall be reflected by an entry on the books of
                                         the Company after receipt of such notice of transfer. Upon any such sale, pledge, assignment
                                         or transfer of the Loan and upon assignment of this Agreement to the purchaser of the
                                         Loan, Lender shall be released and discharged from any liability or responsibility with
                                         respect to the Loan and any other Transaction Documents and references to “Lender”
                                         in this Agreement shall, with respect to any matters thereafter occurring, be deemed
                                         to be references to the purchaser of the Loan. Lender and each assignee hereof, agree
                                         to indemnify Company and its affiliates and each of their respective owners, members,
                                         shareholders, directors, officers, employees, partners, agents, subsidiaries, divisions
                                         or affiliated corporations or organizations, whether previously or hereinafter affiliated
                                         in any manner, against, and hold each of them harmless from, any damage, claim, loss,
                                         cost, liability or expense, including interest, penalties, fines, amounts paid in settlement,
                                         reasonable attorneys’ fees and expenses of investigation, response action, removal
                                         action or remedial action that arise out of or relate to (a) any breach of any representation
                                         or warranty contained in any certificate or other instrument delivered by such successor
                                         holder, including without limitation form W-8BEN-E, (b) any action, suit or proceeding,
                                         whether civil or criminal and whether judicial, administrative, investigative or otherwise
                                         (each as made against Company in connection with any claim and/or determination that
                                         any such successor holder does not qualify for exemption from U.S withholding tax), and/or
                                         (c) any event or circumstance under which Company will be treated as a ‘taxpayer-in-default’
                                         or otherwise will incur damages for not withholding taxes on interest payments made to
                                         the Lender or under the Loan.

 

		10.4.	Notwithstanding
                                         anything contained herein to the contrary, any violation of Section 10.3 shall not be
                                         deemed to be an “Event of Default” as set forth in Section 5.

 

		11.	Miscellaneous

 

		11.1.	RESERVED

 

		11.2.	Applicable
                                         Law. Each party agrees that all legal proceedings concerning the interpretations,
                                         enforcement and defense of the transactions contemplated by this Agreement and any other
                                         Transaction Documents (whether brought against a party hereto or its respective affiliates,
                                         directors, officers, shareholders, partners, members, employees or agents) shall be commenced
                                         exclusively in the state and federal courts sitting in the City of New York. Each party
                                         hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
                                         sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute
                                         hereunder or in connection herewith or with any transaction contemplated hereby or discussed
                                         herein (including with respect to the enforcement of any of the Transaction Documents),
                                         and hereby irrevocably waives, and agrees not to assert in any action or proceeding,
                                         any claim that it is not personally subject to the jurisdiction of any such court, that
                                         such action or proceeding is improper or is an inconvenient venue for such proceeding.
                                         Each party hereby irrevocably waives personal service of process and consents to process
                                         being served in any such action or proceeding by mailing a copy thereof via registered
                                         or certified mail or overnight delivery (with evidence of delivery) to such party at
                                         the address in effect for notices to it under this Agreement and agrees that such service
                                         shall constitute good and sufficient service of process and notice thereof. Nothing contained
                                         herein shall be deemed to limit in any way any right to serve process in any other manner
                                         permitted by law.

 

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		11.3.	Counterpart
                                         Signatures. This Agreement may be executed in two or more counterparts, each of which
                                         shall be deemed an original and enforceable against the Parties actually executing such
                                         counterpart, and all of which together shall constitute one and the same instrument.

 

		11.4.	Entire
                                         Agreement. This Agreement constitutes the full and entire agreement, covenants, promises
                                         and understandings between the Parties hereto with respect to the subject matter hereof,
                                         and supersede any and all prior agreements, understandings, promises and representations
                                         made by all or some of the Parties, written or oral, concerning the subject matter hereof
                                         and the terms applicable hereto.

 

		11.5.	Amendment.
                                         Any term of this Agreement may be amended, waived of modified only with the written consent
                                         of the Company and the Lender.

 

		11.6.	Notice.
                                         Notice as required herein shall be delivered by hand, by e-mail, fax, by courier service
                                         or by registered or certified mail, return receipt requested, postage prepaid. A notice
                                         shall be addressed to the other Party at the address listed above, or to another address,
                                         which may subsequently be specified in writing by a Party. A notice shall be effective
                                         1 business day after being delivered by hand, e-mail, courier service or by fax, and
                                         7 business days after being sent by registered or certified mail.

 

		11.7.	Further
                                         Actions. At any time and from time to time, each party agrees, without further consideration,
                                         to take such actions and to execute and deliver such documents as may be reasonable necessary
                                         to effectuate the purposes of this Agreement.

 

		11.8.	Severability.
                                         To the extent that any of the restrictions set forth herein is found by a court having
                                         jurisdiction to be unreasonable or overly-broad as to geographic area, scope or time
                                         or to be otherwise unenforceable, it is the intention that the restrictions set forth
                                         in this undertaking be reformed, modified and redefined by such court so as to be reasonable
                                         and enforceable and, as so modified by such court, to be fully enforced.

 

		11.9.	Independent
                                         Nature of Lenders’ Obligations and Rights. The obligations of the Lender under
                                         this Agreement are several and not joint with the obligations of any other person providing
                                         any loans or other financing to the Company contemporaneously with the Closing, and the
                                         Lender shall not be responsible in any way for the performance or non-performance of
                                         the obligations of any other person. Nothing contained herein or in any other ancillary
                                         document, and no action taken by the Lender pursuant hereto or thereto, shall be deemed
                                         to constitute the Lender as being part of a partnership, an association, a joint venture
                                         or any other kind of entity, or create a presumption that the Lender is in any way acting
                                         in concert or as a group together with other persons with respect to such obligations
                                         or the transactions contemplated by this Agreement. The Lender shall be entitled to independently
                                         protect and enforce its rights including, without limitation, the conversion, repayment,
                                         or enforcement rights arising out of this Agreement or out of the other ancillary documents,
                                         and it shall not be necessary for any other person to be joined as an additional party
                                         in any Proceeding for such purpose. The Lender has been afforded the opportunity to be
                                         represented by its own separate legal counsel in its review and negotiation of the Agreement.
                                         It is clarified that the legal counsel for the Lender represents such Lender exclusively
                                         and not the Company nor any other person. It is expressly understood and agreed that,
                                         unless stated otherwise, each provision contained in this Agreement and in each other
                                         ancillary document is between the Company and the Lender, solely, and not between the
                                         Company and any other persons collectively and not between and among the Lender and any
                                         other persons.

 

    18

     

    

 

		11.10.	Lender’s
                                         Conversion Limitations. The Company shall not effect any conversion of this Agreement,
                                         or the Loan, and a Lender shall not have the right to exercise any portion of this Agreement
                                         or the Loan, pursuant to Section 2 or otherwise, to the extent that after giving effect
                                         to such issuance after conversion as set forth on the applicable Notice of Conversion,
                                         the Lender (together with the Lender’s Affiliates, and any other Persons acting
                                         as a group together with the Lender or any of the Lender’s Affiliates (such Persons,
                                         “Attribution Parties”)), would beneficially own in excess of the Beneficial
                                         Ownership Limitation (as defined below). For purposes of the foregoing sentence, the
                                         number of shares of Common Stock beneficially owned by the Lender and its Affiliates
                                         and Attribution Parties shall include the number of shares of Common Stock issuable upon
                                         conversion the Loan with respect to which such determination is being made, but shall
                                         exclude the number of shares of Common Stock which would be issuable upon (i) conversion
                                         of the remaining, non-converted portion of the Loan beneficially owned by the Lender
                                         or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the
                                         unexercised or nonconverted portion of any other securities of the Company (including,
                                         without limitation, any other Common Stock Equivalents) subject to a limitation on conversion
                                         or exercise analogous to the limitation contained herein beneficially owned by the Lender
                                         or any of its Affiliates or Attribution Parties. Except as set forth in the preceding
                                         sentence, for purposes of this Section 11.10, beneficial ownership shall be calculated
                                         in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
                                         thereunder, it being acknowledged by the Lender that the Company is not representing
                                         to the Lender that such calculation is in compliance with Section 13(d) of the Exchange
                                         Act and the Lender is solely responsible for any schedules required to be filed in accordance
                                         therewith. To the extent that the limitation contained in this Section 11.10 applies,
                                         the determination of whether the Loan is converted (in relation to other securities owned
                                         by the Lender together with any Affiliates and Attribution Parties) and of which portion
                                         of the Loan is exercisable shall be in the sole discretion of the Lender, and the submission
                                         of a Notice of Conversion shall be deemed to be the Lender’s determination of whether
                                         this Agreement and the Loan is convertible (in relation to other securities owned by
                                         the Lender together with any Affiliates and Attribution Parties) and of which portion
                                         of the Agreement and the Loan is convertible, in each case subject to the Beneficial
                                         Ownership Limitation, and the Company shall have no obligation to verify or confirm the
                                         accuracy of such determination. In addition, a determination as to any group status as
                                         contemplated above shall be determined in accordance with Section 13(d) of the Exchange
                                         Act and the rules and regulations promulgated thereunder and the Company shall have no
                                         obligation to verify or confirm the accuracy of such determination. For purposes of this
                                         11.10, in determining the number of outstanding shares of Common Stock, a Lender may
                                         rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s
                                         most recent periodic or annual report filed with the SEC, as the case may be, (B) a more
                                         recent public announcement by the Company or (C) a more recent written notice by the
                                         Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.
                                         Upon the written or oral request of a Lender, the Company shall within one (1) Trading
                                         Day confirm orally and in writing to the Lender the number of shares of Common Stock
                                         then outstanding. In any case, the number of outstanding shares of Common Stock shall
                                         be determined after giving effect to the conversion or exercise of securities of the
                                         Company, including the Agreement and the Loan by the Lender or its Affiliates or Attribution
                                         Parties since the date as of which such number of outstanding shares of Common Stock
                                         was reported. The “Beneficial Ownership Limitation” shall be 9.99%
                                         of the number of shares of Common Stock outstanding immediately after giving effect to
                                         the issuance of shares of Common Stock issuable upon conversion of this Agreement and
                                         the Loan. The Lender, upon notice to the Company, may increase or decrease the Beneficial
                                         Ownership Limitation provisions of this Section 11.10, provided that the Beneficial Ownership
                                         Limitation in no event exceeds 19.99% of the number of the shares of Common Stock outstanding
                                         immediately after giving effect to the issuance of shares of Common Stock upon conversion
                                         of this Agreement and the Loan held by the Lender, and the provisions of this Section
                                         11.10 shall continue to apply. Any increase in the Beneficial Ownership Limitation will
                                         not be effective until the 61st day after such notice is delivered to the Company. The
                                         provisions of this paragraph shall be construed and implemented in a manner otherwise
                                         than in strict conformity with the terms of this Section 11.10 to correct this paragraph
                                         (or any portion hereof) which may be defective or inconsistent with the intended Beneficial
                                         Ownership Limitation herein contained or to make changes or supplements necessary or
                                         desirable to properly give effect to such limitation. The limitations contained in this
                                         paragraph shall apply to a successor holder of this Agreement or the Loan.

  

[signature
page follows]

 

    19

     

    

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Convertible Loan Agreement on the date first above written.

 

	UAS
    Drone Corp.	 	 
	 	 	 
	By:	 	 	By:	 
	Title:	 	 	Title:	 
	  

    20

     

    

 

Exhibit
A

 

Share
Exchange Agreement

 

See
attached

 

     

     

    

 

Exhibit
B

 

Escrow
Agreement 

 

See
attached.

 

     

     

    

 

Exhibit
C

 

Registration
Rights Agreement 

 

See
attached.

 

     

     

    

 

Schedule
8.11

 

Registration
Rights 

 

The
following parties possess registration rights: 

 

Elisheva
Ansbacher

Ximena
Benítez

Noam
Danenberg

Moshe
Zuk

Eran
Meytal

Erez
Alroy

Erez
Alroy Investments Ltd.

D-Beta
One EQ Ltd.

Runuman
Ltd.

Shmuel
Yanay

ZUK
MARBLE PRODUCTS 1998 LTD

Alonim
Marketing and Sales Promotion LTD

Alpha
Capital Anstalt

GreenBlock
Capital

 

     

     

    

 

Schedule
8.12

 

Lock
Ups 

 

     

     

    

 

Schedule
8.19

 

Duke/USDR
Transaction

 

		●	Share
                                         Exchange Agreement by and between UAS Drone Corp., Duke Robotics, Inc. and the various
                                         stockholders of Duke Robotics, Inc.

 

		●	Securities
                                         Exchange Agreement by and between UAS Drone Corp. and GreenBlock Capital

 

		●	Convertible
                                         Debenture of UAS Drone Corp. issued to GreenBlock Capital

 

		●	Securities
                                         Exchange Agreement by and between UAS Drone Corp. and Alpha Capital Anstalt

 

		●	Convertible
                                         Debenture of UAS Drone Corp. issued to Alpha Capital Anstalt

 

		●	Convertible
                                         Loan Agreements by and among UAS Drone Corp., and various lenders dated of even date
                                         herewith.

 

		●	Share
                                         Exchange Agreements by and between UAS Drone Corp. and the Lenders (or their affiliated
                                         persons) dated as of even date herewith.Exhibit 10.2 

 

SECURITIES
EXCHANGE AGREEMENT

 

This
Securities Exchange Agreement (this “Agreement”), dated as of March 9, 2020, is made pursuant to that certain
Securities Purchase Agreement, dated as of March 31, 2015, as amended (the “Purchase Agreement”), by and between
UAS Drone Corp. (the “Company”) and Alpha Capital Anstalt, a Liechtenstein company (the “Purchaser”),
for the purchase of the Company’s Original Issue Discount Convertible Debentures in the respective amounts of $300,000 (issued
on April 1, 2015, and due April 1, 2017), $100,010 (issued on April 1, 2016, and due April 1, 2017), and $50,005 (issued on January
27, 2017, and due August 1, 2018) (collectively, the “Debentures”). Capitalized terms used and not otherwise
defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement.

 

RECITALS:

 

WHERAS,
the Company issued and the Purchaser purchased the Debentures, each bearing interest at the rate of eight percent (8%) per annum,
and convertible into shares of common stock of the Company (the “Common Stock”) at conversion prices of $0.33,
$1.55 and $1.55, respectively; and

 

WHEREAS,
the Company has determined that the present value of its Common Stock is $0.0001 per share;

 

WHEREAS,
the Company has entered into a Share Exchange Agreement dated March 4, 2020 (the “Duke Share Exchange Agreement”),
with Duke Robotics, Inc., a Delaware corporation (“Duke”), and the several shareholders of Duke as signatories
thereto (the “Duke Shareholders”); and

 

WHEREAS,
the closing of the Duke Share Exchange Agreement is subject to various conditions precedent, including the simultaneous closings
of the Duke Share Exchange Agreement and the “Duke Funding” as defined in Annex B (the “Closings”),
and the exchange of certain shares of the Company Common Stock to the Purchaser in partial conversion of the Debentures and the
exchange of the Purchaser Debentures for a new debenture in the amount of $300,946, due and payable on March 9, 2023 (the “New
Debenture”), bearing interest at the rate of eight percent (8%) per annum, and convertible into shares of the Company
Common Stock at a conversion price of $0.374, subject to adjustment as provided in Section 5 of the New Debenture; and

 

WHEREAS,
except as otherwise provided herein, the rights and obligations of the Purchaser and of the Company with respect to the New Debenture
and the shares of the Company Common Stock issuable under the New Debenture (the “New Underlying Shares”) shall
be identical in all respects to the rights and obligations of the Purchaser and of the Company with respect to the Debentures
and the Underlying Shares issued and issuable pursuant to the Purchase Agreement.

 

    

     

    

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

 

1. Issuance
of New Debenture. Solely for the purpose of effectuating the transactions contemplated by this Agreement, the Company and
the Purchaser hereby extend the Maturity Date of each of the Debentures to March 31, 2020. Subject to the Closings, the Company
hereby agrees to exchange to the Purchaser in partial payment of the Debentures and accrued interest, in a private placement and
not in connection with the Company’s S-1 Registration Statement that was confidentially filed with the Securities and Exchange
Commission (the “SEC”) on or about May 22, 2015, and which was declared effective on September 15, 2015 (the
“S-1 Registration Statement”) (a) 698,755 shares of the Company Common Stock, comprised of “restricted
securities” issued by a “shell company” as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), a definition of which presently describes the Company; and (b) the New Debenture,
which New Debenture shall be in the form of the Debenture attached hereto as Exhibit A and incorporated herein by reference.
The issuance of such 698,755 shares and the New Debenture will be subject to forfeiture if there are no simultaneous Closings
of the Duke Share Exchange Agreement and the Duke Funding. The Company shall promptly deliver to the Purchaser the New Debenture
on the Closings.

 

2. Documents.
Any rights of the Purchaser or covenants of the Company which are dependent on the Purchaser holding securities of the Company
or which are determined in magnitude by the Purchaser’s purchase of securities pursuant to the Purchase Agreement shall
be deemed to include any securities purchased or issuable hereunder. The New Debenture shall cancel and replace the Debentures
and the Purchase Agreement; provided, however, the rights of the Purchaser and the obligations of the Company under the
Purchase Agreement shall be modified as follows: (a) all securities of the Company that were Underlying Shares of the Debentures
and that were registered for the Purchaser in the S-1 Registration Statement that have not been previously converted by Purchaser
to shares of the Company Common Stock shall be withdrawn from the S-1 Registration Statement; (b) the Purchaser shall have no
demand or other registration rights with respect to the shares of the Company Common Stock issuable under the New Debenture (the
“New Underlying Shares”); (c) the Purchaser shall not possess, and waives its right, to receive any penalties
associated with a Public Information Failure as set forth in Section 4.3(b) of the Purchase Agreement; (d) the Purchaser shall
not possess, and waives its right, to participate in future financing as set forth in Section 4.12 of the Purchase Agreement;
(e) the Purchaser waives the restrictive covenants relating to the Company’s ability to conduct any sales or issuances of
Common Stock or Common Stock Equivalents, and the Company shall not be restricted from entering into a Variable Rate Transaction,
each as set forth in Section 4.13 of the Purchase Agreement; (f) the Purchaser shall not possess, and waives its right, to enforce
the Most Favored Nation Provision set forth in Section 4.17 of the Purchase Agreement; and (g) Purchaser shall be limited to conversions
of $50,000 per month under the New Debenture, unless the average daily five (5) day trading volume of the Company Common Stock
on any Trading Market, including, for the purposes of this Agreement, the “OTC Pink Tier” of the OTC Markets, exceeds
$100,000 prior to any such conversion, in which case, there shall be no limit on the monthly conversion amount.

 

    2

     

    

 

3. Representations
and Warranties of the Company. The Company hereby makes to the Purchaser the following representations and warranties:

 

(a) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby have been duly authorized
by all necessary action on the part of the Company and no further action is required by the Company, its board of directors or
its stockholders in connection therewith other than in connection with the Required Approvals. This Agreement has been duly executed
by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b) No
Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of
the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s certificate
or articles of incorporation, bylaws or other organizational or charter documents; or (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien (except
as contemplated by the Security Documents) upon any of the properties or assets of the Company in connection with, or give to
others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of,
any material agreement, credit facility, debt or other material instrument (evidencing Company debt or otherwise) or other material
understanding to which such Company is a party or by which any property or asset of the Company is bound or affected; or (iii)
subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state
securities laws and regulations), or by which any property or asset of the Company is bound or affected, except, in the case of
each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(c) Issuance
of the New Debenture. Subject only to the Closings, the New Debenture is duly authorized and, upon the execution of this Agreement
by a Purchaser, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided for in the Transaction Documents. The New Underlying Shares, when issued in accordance
with the terms of the New Debenture, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed
by the Company. The Company has reserved from its duly authorized capital stock a number of shares of the Company Common Stock
for issuance of the New Underlying Shares at least equal to the Required Minimum on the date hereof.

 

(d) Affirmation
of Prior Representations and Warranties. The Company hereby represents and warrants to the Purchaser that the Company’s
representations and warranties listed in Section 3.1 of the Purchase Agreement are true and correct as of the date hereof, except
and to the extent modified in the Duke Share Exchange Agreement and the UAS Disclosure Letter issued thereunder.

 

    3

     

    

 

4. Representations
and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof to the Company as follows:

 

(a) Authority.
The execution, delivery and performance by the Purchaser of the transactions contemplated by this Agreement have been duly authorized
by all necessary corporate or similar action on the part of the Purchaser. This Agreement has been duly executed by the Purchaser
and, when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation
of the Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b) Own
Account. The Purchaser (i) understands that the New Debenture are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law, (ii) is acquiring the New Debenture as principal for its own
account and not with a view to or for distributing or reselling the New Debentures or any part thereof in violation of the Securities
Act or any applicable state securities law, (iii) has no present intention of distributing any of such Securities in violation
of the Securities Act or any applicable state securities law and (iv) has no arrangement or understanding with any other persons
regarding the distribution of such New Debenture (this representation and warranty not limiting the Purchaser’s right to
sell the New Underlying Shares pursuant to a Registration Statement or otherwise in compliance with applicable federal and state
securities laws) in violation of the Securities Act or any applicable state securities law. The Purchaser is acquiring the New
Debentures hereunder in the ordinary course of its business. The Purchaser does not have any agreement or understanding, directly
or indirectly, with any Person to distribute any of the New Debenture or New Underlying Shares.

 

(c) Purchaser
Status. The Purchaser is an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8)
under the Securities Act.

 

(d) General
Solicitation. The Purchaser is not purchasing the New Debenture as a result of any advertisement, article, notice or other
communication regarding the New Debenture published in any newspaper, magazine or similar media or broadcast over television or
radio or presented at any seminar or any other general solicitation or general advertisement.

 

(e) Affirmation
of Prior Representations and Warranties. The Purchaser hereby represents and warrants to the Company that its representations
and warranties listed in Section 3.2 of the Purchase Agreement are true and correct as of the date hereof.

 

(f) No
Other Indebtedness. Other than the Debentures, the Purchaser does not hold any other debt that is owed or payable by the Company.

 

    4

     

    

 

5. Public
Disclosure. The Company shall consult with the Purchaser in issuing any press releases with respect to the transactions contemplated
hereby, though the Purchaser agrees that, subject to the Closings, all transactions contemplated hereby shall be disclosed in
a Form 8-K to be filed with the SEC within four business days of the Closings.

 

6. Effect
on Transaction Documents. Except as expressly set forth above, all of the terms and conditions of the Transaction Documents
shall continue in full force and effect after the execution of this Agreement and shall not be in any way changed, modified or
superseded by the terms set forth herein, including, but not limited to, any other obligations the Company may have to the Purchaser
under the Transaction Documents. Notwithstanding the foregoing, this Agreement shall be deemed for all purposes as an amendment
to any Transaction Document as required to serve the purposes hereof, and in the event of any conflict between the terms and provisions
of the Debentures, or any other Transaction Document, on the one hand, and the terms and provisions of this Agreement and the
New Debenture, on the other hand, the terms and provisions of this Agreement and the New Debenture shall prevail.

 

7. Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing
and signed by the Company and the Purchaser.

 

8. Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as
set forth in the Purchase Agreement.

 

9. Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of the Purchaser. The Company may not assign (except by merger) its rights or obligations
hereunder without the prior written consent of the Purchaser of the then-outstanding Securities. The Purchaser may assign their
rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement.

 

10. Execution
and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid
and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as
if such facsimile or “.pdf” signature page were an original thereof.

 

    5

     

    

 

11. Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Purchase Agreement.

 

12. Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

13. Headings.
The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to
limit or affect any of the provisions hereof.

 

14. Registration
Rights. In accordance with the provisions set forth in that certain Registration Rights Agreement being entered into by the
Company, the Purchaser and other security holders of the Company contemporaneously with the execution of this Agreement, (the
“RRA”), within 30 calendar days following the earlier of (X) the Company having timely filed its form 10-K
for the fiscal year ended December 2019 or (Y) it has finalized the second stage of the share exchange agreement with the stockholders
of Duke Robotics, Inc. or (Z) March 31, 2020, , the Company shall prepare and file with the SEC a Registration Statement (the
“Registration Statement”) for a resale offering to be made on a continuous basis, registering the Conversion
Shares (as defined in the New Debenture) issuable upon conversion of the New Debenture (the “Registrable Securities”)
and shall use its commercially best efforts to keep such Registration Statement, with respect to the Purchaser, continuously effective
under the Securities Act until the earlier to occur of (i) the date on which the Purchaser may sell the Conversion Shares then
held in compliance with Rule 144, or (ii) all Conversion Shares covered by the Registration Statement have been sold by the Purchaser.

 

Notwithstanding
the registration obligations set forth above, if the SEC informs the Company that all of the Registrable Securities cannot, as
a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement,
the Company agrees to promptly inform the Purchaser thereof and use its commercially reasonable efforts to file amendments to
the such Registration Statement as required by the SEC, covering the maximum number of Registrable Securities permitted to be
registered by the SEC, on Form S-1 or such other form available to register for resale the Registrable Securities as a secondary
offering, all as set forth in the RRA.

 

If
the SEC or any SEC Guidance sets forth a limitation on the number of Registrable Securities, and any other securities being registered
on the Registration Statement, permitted to be registered on a particular Registration Statement, unless otherwise directed in
writing by the Purchaser as to its Registrable Securities, the number of Registrable Securities to be registered on such Registration
Statement will be reduced on the basis set forth in the RRA.

 

For
purposes of this Section 14, “SEC Guidance” means (i) any publicly-available written or oral guidance of the
SEC staff, or any comments, requirements or requests of the SEC staff and (ii) the Securities Act.

 

If
there is a conflict between this Agreement and the RRA, the RRA shall take precedence and will control.

 

[SIGNATURE
PAGE FOLLOWS]

 

    6

     

    

 

Executed
as of the first date written above by the undersigned duly authorized representatives of the Company and the Purchaser:

 

UAS
DRONE CORP.

 

	By:  	/s/ Christopher J. Leith	 
	 	Name: Christopher J. Leith	 
	 	Title: Acting CFO	 

  

	ALPHA CAPITAL ANSTALT	 	 
	 	 	 
	Signature of Authorized Signatory: 	/s/ Konrad Ackermann	 
	 	 	 
	Name of Authorized Signatory: 	Konrad Ackermann	 
	 	 	 
	Title of Authorized Signatory: 	Director 	 

 

 

7

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