Document:

Exhibit 10.5

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of March 9, 2020, amongst UAS Drone Corp.,
an OTC public corporation having its registered office at 420 Royal Palm Way, Palm Beach FL 33480, USA (the “Company”)
and the Investors identified in Schedule A (each, an “Investor” and collectively, the “Investors”).

 

WHEREAS:

 

A.
In connection with a series of Securities Exchange Agreements and Convertible Loan Agreements by and among the parties hereto
of even date herewith, as listed on Schedule B (the “Company Reorganization Agreements”),
the Investors have agreed with the Company, upon the terms and subject to the conditions of the Company Reorganization Agreements,
to receive shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), as
converted from outstanding debt of the Company to the Investors or in exchange for the shares Duke Robotics Inc. (the “Transaction
Shares”), all in accordance with the terms of the Company Reorganization Agreements. Capitalized terms not defined herein
shall have the meaning ascribed to them in the Company Reorganization Agreements.

 

B.
To induce the Investors to convert their loans to the Conversion Shares and/or exchange their shares in Duke, as applicable, and
execute and deliver the Company Reorganization Agreements, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “Securities Act”), and applicable state securities laws and other rights as provided for herein.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1. DEFINITIONS.

 

As
used in this Agreement, the following terms shall have the following meanings:

 

(a)
“Effectiveness Deadline” means, with respect to a Registration Statement filed hereunder, the 45th calendar
day following the date filed (or, in the event of a “full review” by the Commission, the 90th calendar
day following date filed), provided, however, that the Company is in good faith replying any comments received from the U.S. Securities
and Exchange Commission (“SEC”) upon review of the Registration Statement, or in the event the Company is notified
by the SEC that one of the above Registration Statements will not be reviewed or is no longer subject to further review and comments,
the Effectiveness Date as to such Registration Statement shall be the 5th Trading Day following the date on which the Company
is so notified if such date precedes the dates required above.

 

(b)
“Filing Deadline” means, with respect to the initial Registration Statement required hereunder, the 30th calendar
day following the date the Company receives a Filing Notice.

  

(c)
“Filing Notice” means a written notice from an Investor to the Company to file a Registration Statement and
stating the number of Registrable Securities to be included on such Registration Statement, provided however that the Investors
shall not be entitled to issue such Filing Notice until 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.; but in any event no later than March 31, 2020 ( any such date referred to herein as the “Filing
Notice Entitlement Date”).

 

     

     

    

 

(d)
“Person” means a corporation, a limited liability company, an association, a partnership, an organization,
a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

(e)
“Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus
that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to
the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such Prospectus.

 

(f)
“Registrable Securities” means (i) all of the Conversion Shares (to the extent calculable upon the filing of
an initial Registration Statement), (ii) any additional shares issuable in connection with any anti-dilution provisions in the
Securities Exchange Agreement and (iii) any shares of Common Stock issued or issuable with respect to the Conversion Shares, as
a result of any stock split, dividend or other distribution, recapitalization or similar event or otherwise.

 

(g)
“Registration Statement” means the registration statements required to be filed hereunder (including any additional
registration statements contemplated by Section 3(c)), including (in each case) the Prospectus, amendments and supplements to
such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

(h)
“Rule 415” means Rule 415 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect
as such Rule.

 

(i)
“Trading Day” means a day on which the principal Trading Market is open for trading.

 

(j)
“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted
for trading on the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
Market, the New York Stock Exchange or the OTC Bulletin Board or OTCQB Marketplace operated by OTC Markets Group, Inc. (or any
successors to any of the foregoing).

 

2. REGISTRATION.

 

(a)
The Company’s registration obligations set forth in this Section 2 including its obligations to file Registration Statements
upon receipt of Filing Notices, obtain effectiveness of Registration Statements, and maintain the continuous effectiveness of
Registration Statement that have been declared effective shall begin on the date hereof and continue until all the Registrable
Securities have been sold or may permanently be sold without any restrictions pursuant to Rule 144, as determined by the counsel
to the Company or Investor’s Counsel pursuant to a written opinion letter to such effect, addressed and acceptable to the
Company’s transfer agent and the affected Holders (the “Registration Period”).

  

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(b)
Anytime during the Registration Period, but not until the Filing Notice Entitlement Date, an Investor shall have the right to
deliver to the Company a Filing Notice as provided for herein which shall trigger the Company’s obligations to file a Registration
Statement as set forth below.

 

(c)
After receipt of a Filing Notice, the Company shall, on or prior to the Filing Deadline, prepare and file with the SEC a Registration
Statement on Form S-1 (or, if the Company is then eligible, on Form S-3) covering the resale by the Investors of all of the Registrable
Securities set forth in such Filing Notice. Each Registration Statement shall contain the “Selling Stockholders”
and “Plan of Distribution” sections in substantially the form attached hereto as Exhibit A and
contain all the required disclosures set forth on Exhibit B. The Company shall use its best efforts to have each Registration
Statement declared effective by the SEC as soon as practicable, but in no event later than the Effectiveness Deadline. By 9:30
am on the date following the date of effectiveness, the Company shall file with the SEC in accordance with Rule 424 under the
1933 Act the final Prospectus to be used in connection with sales pursuant to such Registration Statement. Prior to the filing
of the Registration Statement with the SEC, the Company shall furnish a draft of the Registration Statement to Selling Stockholders’
counsel for review and comment. Such counsel shall furnish comments on the Registration Statement to the Company within 72 hours
of the receipt thereof from the Company.

 

(d)
During the Registration Period, the Company shall (i) promptly prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to a Registration Statement and the Prospectus used in connection with a Registration Statement, which
Prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep such Registration
Statement effective at all times during the Registration Period, (ii) prepare and file with the SEC additional Registration Statements
in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus
to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and as so supplemented
or amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any comments received from the
SEC with respect to a Registration Statement or any amendment thereto and as promptly as reasonably possible provide the Investor
true and complete copies of all correspondence from and to the SEC relating to a Registration Statement (provided that the Company
may excise any information contained therein which would constitute material non-public information as to any Investor which has
not executed a confidentiality agreement with the Company); and (iv) comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities of the Company covered by such Registration Statement until such time as all
of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller
or sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a Registration Statement
which are required to be filed pursuant to this Agreement (including pursuant to this Section 2(d)) by reason of the Company’s
filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous report under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), the Company shall incorporate such report by reference into the Registration Statement,
if applicable, or shall file such amendments or supplements with the SEC on the same day on which the Exchange Act report is filed
which created the requirement for the Company to amend or supplement the Registration Statement.

  

(e) Reduction
of Registrable Securities Included in a Registration Statement. Notwithstanding anything contained herein, in the event that
the SEC requires the Company to reduce the number of Registrable Securities to be included in a Registration Statement in order
to allow the Company to rely on Rule 415 with respect to a Registration Statement, then the Company shall be obligated to include
in such Registration Statement (which may be a subsequent Registration Statement if the Company needs to withdraw a Registration
Statement and refile a new Registration Statement in order to rely on Rule 415) only such limited portion of the Registrable Securities
as the SEC shall permit, in accordance with the order of registration preference set forth on Schedule C attached hereto.
Any Registrable Securities that are excluded in accordance with the foregoing terms are hereinafter referred to as “Cut
Back Securities.” To the extent Cut Back Securities exist, as soon as may be permitted by the SEC, the Company shall
be required to file a Registration Statement covering the resale of the Cut Back Securities (subject also to the terms of this
Section, including to the principles governing the order of registration preference set forth on Schedule C) and shall
use best efforts to cause such Registration Statement to be declared effective as promptly as practicable thereafter.

 

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(f) Failure
to File or Obtain Effectiveness of the Registration Statement or Remain Current. If: (i) a Registration Statement is not filed
on or prior to its Filing Date (if the Company files a Registration Statement without affording Investors counsel the opportunity
to review and comment on the same as required by Section 2(c), the Company shall not be deemed to have satisfied this clause (i)),
or (ii) the Company fails to file with the SEC a request for acceleration in accordance with Rule 461 promulgated under the Securities
Act, within 5 Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the SEC that
a Registration Statement will not be “reviewed,” or not subject to further review, or (iii) a Registration Statement
filed or required to be filed hereunder is not declared effective by the SEC by its Effectiveness Deadline, or (iv) after the
effectiveness, a Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities
for which it is required to be effective, or the Holders are otherwise not permitted to utilize the Prospectus therein to resell
such Registrable Securities for more than 30 consecutive calendar days or more than an aggregate of 40 calendar days during any
12-month period (which need not be consecutive calendar days), or (v) if after the six month anniversary of the date hereof, the
Company does not have available adequate current public information as set forth in Rule 144(c) (any such failure or breach being
referred to as an “Event”), then in addition to any other rights the holders of the Conversion Shares may have
hereunder or under applicable law, on each such Event date and on each monthly anniversary of each such Event date (if the applicable
Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each holder of Conversion
Shares an amount in cash, as partial liquidated damages (“Liquidated Damages”) and not as a penalty, equal
to 0.25% of the value of the Registrable Securities as reflected on the Trading Market for every 30 day period such failure remains
in effect, but such penalties shall not accrue for more than 12 months in the aggregate.

  

(g) Liquidated
Damages. The Company and the Investors hereby acknowledge and agree that the sums payable under subsection 2(f) above shall
constitute liquidated damages and not penalties and are in addition to all other rights of the Investor, including the right to
call a default. The parties further acknowledge that (i) the amount of loss or damages likely to be incurred is incapable or is
difficult to precisely estimate, (ii) the amounts specified in such subsections bear a reasonable relationship to, and are not
plainly or grossly disproportionate to, the probable loss likely to be incurred in connection with any failure by the Company
to obtain or maintain the effectiveness of a Registration Statement, (iii) one of the reasons for the Company and the Investors
reaching an agreement as to such amounts was the uncertainty and cost of litigation regarding the question of actual damages,
and (iv) the Company and the Investors are sophisticated business parties and have been represented by sophisticated and able
legal counsel and negotiated this Agreement at arm’s length.

 

3. RELATED
OBLIGATIONS.

 

(a)
The Company shall, not less than three 3 Trading Days prior to the filing of each Registration Statement and not less than 2 Trading
Days prior to the filing of any related amendments and supplements to all Registration Statements (except for annual reports on
Form 10-K), furnish to the Investors electronic copies of all such documents proposed to be filed, which documents (other than
those incorporated or deemed to be incorporated by reference) will be subject to the reasonable and prompt review of Investors’
counsels, the Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto
to which an Investor’s counsel shall reasonably object in good faith; provided that, the Company is notified
of such objection in writing no later than 3 Trading Days after Investor has been so furnished copies of a Registration Statement.

 

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(b)
The Company shall furnish to an Investor whose Registrable Securities are included in any Registration Statement, which obligation
may be met by directing the Investor to www.sec.gov, (i) an electronic copy of such Registration Statement as declared effective
by the SEC and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference,
all exhibits and each preliminary prospectus, (ii) an electronic copy of the final prospectus included in such Registration Statement
and all amendments and supplements thereto (or such other number of copies as such Investor may reasonably request) and (iii)
such other documents as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by such Investor.

 

(c)
The Company shall use its best efforts to (i) register and qualify the Registrable Securities covered by a Registration Statement
under such other securities or “blue sky” laws of such jurisdictions in the United States as any Investor reasonably
requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements
to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period,
(iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during
the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (w) make any change to its articles of incorporation or by-laws, (x) qualify to do business in any jurisdiction where
it would not otherwise be required to qualify but for this Section 3(c), (y) subject itself to general taxation in any such jurisdiction,
or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify each Investor
who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration
or qualification of any of the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction
in the United States or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

  

(d)
As promptly as practicable after becoming aware of such event or development, the Company shall notify each Investor in writing
of the happening of any event as a result of which the Prospectus included in a Registration Statement, as then in effect, includes
an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading (provided that in no event shall
such notice contain any material, nonpublic information), and promptly prepare a supplement or amendment to such Registration
Statement to correct such untrue statement or omission, and deliver an electronic copy of such supplement or amendment to each
Investor, which delivery obligation may be fulfilled by directing the Investor to www.sec.gov. The Company shall also promptly
notify each Investor in writing (i) when a Prospectus or any Prospectus supplement or post-effective amendment has been filed,
and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall
be delivered to each Investor by facsimile on the same day of such effectiveness), (ii) of any request by the SEC for amendments
or supplements to a Registration Statement or related prospectus or related information, and (iii) of the Company’s
reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

 

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(e)
The Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration
Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction within the
United States of America and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at
the earliest possible moment and to notify each Investor who holds Registrable Securities being sold of the issuance of such order
and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(f)
If, after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could reasonably
be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall furnish to such Investor,
on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as a Investor may
reasonably request (i) a letter, dated such date, from the Company’s independent certified public accountants in form and
substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering,
and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement, in
form, scope and substance as is customarily given in an underwritten public offering, addressed to the Investors.

  

(g)
If, after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could reasonably
be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall make available for
inspection by (i) any Investor and (ii) one (1) firm of accountants or other agents retained by the Investors (collectively,
the “Inspectors”) all pertinent financial and other records, and pertinent corporate documents and properties
of the Company (collectively, the “Records”), as shall be reasonably deemed necessary by each Inspector, and
cause the Company’s officers, directors and employees to supply all information which any Inspector may reasonably request;
provided, however, that each Inspector shall agree, and each Investor hereby agrees, to hold in strict confidence and shall not
make any disclosure (except to a Investor) or use any Record or other information which the Company determines in good faith to
be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary
to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the Securities Act,
(b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body
of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than by
disclosure in violation of this or any other agreement of which the Inspector and the Investor has knowledge. Each Investor agrees
that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction
or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.

 

(h)
The Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of
such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release
of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of
competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation
of this Agreement or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information
concerning an Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give
prompt written notice to such Investor and allow such Investor, at the Investor’s expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, such information.

 

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(i)
The Company shall use its best efforts either to cause all the Registrable Securities covered by a Registration Statement (i)
to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed,
if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or (ii) the inclusion
for quotation on the Trading Market for such Registrable Securities. The Company shall pay all reasonable fees and expenses in
connection with satisfying its obligation under this Section 3(i).

  

(j)
The Company shall cooperate with each Investor who holds Registrable Securities being offered and, to the extent applicable, to
facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable
Securities to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts,
as the case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

 

(k)
The Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection
with any registration hereunder.

 

(l)
Within 2 business days after a Registration Statement which covers Registrable Securities is declared effective by the SEC, the
Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investor whose Registrable Securities are included in such Registration Statement) confirmation in such form
customary for such notices of effectiveness, that such Registration Statement has been declared effective by the SEC.

 

(m)
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to a Registration Statement.

 

4. OBLIGATIONS
OF THE INVESTORS.

 

(a)
The Investors agree that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(d) such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement covering
such Registrable Securities until such Investor’s receipt of the copies of the supplemented or amended prospectus contemplated
by Section 3(d) or receipt of notice that no supplement or amendment is required. Notwithstanding anything to the contrary, the
Company shall cause its transfer agent to deliver unlegended certificates for shares of Common Stock to a transferee of an Investor
in accordance with the terms of the applicable Company Reorganization Agreement in connection with any sale of Registrable Securities
with respect to which an Investor has entered into a contract for sale prior to the Investor’s receipt of a notice from
the Company of the happening of any event of the kind described in Section 3(d) and for which the Investor has not yet settled.

 

(b)
The Investor covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5. EXPENSES
OF REGISTRATION.

 

All
expenses incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without
limitation, all registration, listing and qualifications fees, printers, legal and accounting fees shall be paid by the Company.

  

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6. INDEMNIFICATION.

 

With
respect to Registrable Securities which are included in a Registration Statement under this Agreement:

 

(a)
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the
directors, officers, partners, employees, agents, representatives of, and each Person, if any, who controls any Investor within
the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Person”), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement
or expenses, joint or several (collectively, “Claims”) incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the offering under the securities or other “blue sky”
laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission
or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading;
(ii) any untrue statement or alleged untrue statement of a material fact contained in any final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein
were made, not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act,
any other law, including, without limitation, any state securities law, or any rule or regulation there under relating to the
offer or sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through
(iii) being, collectively, “Violations”). The Company shall reimburse the Investor and each such controlling
person promptly as such expenses are incurred and are due and payable, for any legal fees or disbursements or other reasonable
expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section 6(a): (x) shall not apply to a Claim by an Indemnified
Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in
writing to the Company by such Indemnified Person expressly for use in connection with the preparation of the Registration Statement
or any such amendment thereof or supplement thereto; (y) shall not be available to the extent such Claim is based on a failure
of the Investor to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely
made available by the Company pursuant to Section 3(c); and (z) shall not apply to amounts paid in settlement of any Claim
if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld.
Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person
and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9 hereof.

 

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(b)
In connection with a Registration Statement, the Investor agrees to severally and not jointly indemnify, hold harmless and defend,
to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers,
employees, representatives, or agents and each Person, if any, who controls the Company within the meaning of the Securities Act
or the Exchange Act (each an “Indemnified Party”), against any Claim or Indemnified Damages to which any of
them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages
arise out of or is based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in
reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection
with such Registration Statement; and, subject to Section 6(d), such Investor will reimburse any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement
contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior written consent of such Investor, which consent
shall not be unreasonably withheld; provided, further, however, that the Investor shall be liable under this Section 6(b) for
only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such Investor as a result of the sale
of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities
by the Investors pursuant to Section 9. Notwithstanding anything to the contrary contained herein, the indemnification agreement
contained in this Section 6(b) with respect to any prospectus shall not inure to the benefit of any Indemnified Party if the untrue
statement or omission of material fact contained in the prospectus was corrected and such new prospectus was delivered to each
Investor prior to such Investor’s use of the prospectus to which the Claim relates.

 

(c)
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses of not more than one (1) counsel for such Indemnified Person or Indemnified Party to be
paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection
with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party
all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The
indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the
defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action,
claim or proceeding effected without its prior written consent; provided, however, that the indemnifying party shall not unreasonably
withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party
or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a
release from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced
in its ability to defend such action.

 

    9

     

    

  

(d)
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

7. CONTRIBUTION.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities
who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited
in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

 

8. REPORTS
UNDER THE EXCHANGE ACT.

 

With
a view to making available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any similar rule or
regulation of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration
(“Rule 144”), and as a material inducement to the Investor’s purchase of the Convertible Debentures,
the Company represents, warrants, and covenants to the following:

 

(a)
The Company is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all required reports
under section 13 or 15(d) of the Exchange Act during the 12 months prior to the date hereof (or for such shorter period that the
issuer was required to file such reports),

 

(b)
During the Registration Period, the Company shall file with the SEC in a timely manner all required reports under section 13 or
15(d) of the Exchange Act (it being understood that nothing herein shall limit the Company’s obligations under the Securities
Exchange Agreement) and such reports shall conform to the requirement of the Exchange Act and the SEC for filing thereunder.

  

(c)
The Company shall furnish to the Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written
statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent annual
or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information
as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration.

 

9. AMENDMENT
OF REGISTRATION RIGHTS.

 

Provisions
of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and the parties to the Convertible Loan Agreement
who then hold at least two-thirds (2/3) of the Registrable Securities. Any amendment or waiver effected in accordance with this
Section 9 shall be binding upon each Investor and the Company. No such amendment shall be effective to the extent that it
applies to fewer than all of the holders of the Registrable Securities. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration also is
offered to all of the parties to this Agreement.

 

    10

     

    

 

10. MISCELLANEOUS.

 

(a)
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities or owns the right to receive the Registrable Securities. If the Company receives conflicting instructions, notices
or elections from two (2) or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis
of instructions, notice or election received from the registered owner of such Registrable Securities.

 

(b) No
Other Piggybacks on Registrations. Neither the Company nor any of its security holders (other than the Investor in such capacity
pursuant hereto) may include securities of the Company in the initial Registration Statement other than the Registrable Securities.
The Company shall not file any other registration statements until the initial Registration Statement required hereunder is declared
effective by the SEC, provided that this Section 10(b) shall not prohibit the Company from filing amendments to registration statements
already filed and in effect.

 

(c) Piggy-Back
Registrations. If at any time there is not an effective Registration Statement covering all of the Registrable Securities
and the Company shall determine to prepare and file with the SEC a registration statement relating to an offering for its own
account or the account of others under the Securities Act of any of its equity securities (other than on Form S-4 or Form S-8
(each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in
connection with any acquisition of any entity or business or equity securities issuable in connection with the stock option or
other employee benefit plans), then the Company shall send to the Investor a written notice of such determination and, if within
fifteen (15) days after the date of such notice, any such Investor shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such Investor requests to be registered; provided, however,
that, the Company shall not be required to register any Registrable Securities pursuant to this Section 10(c) that are eligible
for resale pursuant to Rule 144(k) promulgated under the Securities Act or that are the subject of a then effective Registration
Statement.

 

    11

     

    

  

(d)
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered upon: (i) receipt, when delivered personally, (ii) 1 Business Day after
deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive
the same, or (iii) receipt, when sent by electronic mail (provided that the electronic mail transmission is not returned in error
or the sender is not otherwise notified of any error in transmission. The addresses and e-mail addresses for such communications
shall be:

 

	If
        to the

        Company,
        to:
	 	
	 	 	UAS
                    Drone, Inc.

        420
        Royal Palm Way, Suite #100

        Palm
        Beach, Florida 33480

        Attention:
        Chief Executive Officer

	 	 	
	With Copy to:	 	ZAG/Sullivan
	 	 	1633
                    Broadway, 32nd Floor

        New
        York, New York 10019

        Attn:
        Oded Har-Even

        Telephone:
        (212) 660-5002

        Email:
        ohareven@sullivanlaw.com

	 	 	
	If to the Investor:	 	To the address on Schedule A
	 	 	 
	With a copy to:	 	Avraham
    Ben-Tzvi, Adv.
	 	 	15
    Yad Harutzim St
	 	 	Jerusalem,
    Israel 
	 	 	Telephone:	+972-79-5722070
	 	 	Email:	abz@abz-law.com

  

(e)
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof.

 

(f)
Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated
by this Agreement (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, 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. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,
AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT
OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    12

     

    

 

(g)
This Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

 

(h)
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(i)
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(j)
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and
no rules of strict construction will be applied against any party.

 

(l)
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    13

     

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused their signature page to this Registration Rights Agreement
to be duly executed as of the date first above written.

 

 

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

 

    14

     

    

 

Schedule
A

 

List
of Investors

 

Group
1 – Bridge Loan Note Conversion Shares – Issued 

 

	Name	 	Address	 	Number of Shares	 	 	Signature	 
	Elisheva Ansbacher	 	5201 Pinetree Drive 
Miami Beach, FL 33140	 	 	2,405,906	 	 	 	/s/ Elisheva Ansbacher  	 
	Ximena Benítez Garcia	 	 Protasio Tagle 59 
San Miguel Chapultepec 
11850, Miguel Hidalgo 
CDMX, Mexico	 	 	2,405,906	 	 	 	/s/ Ximena Benítez Garcia	 
	Noam Danenberg	 	4 Borochov Street 
Hod Hasharon 
Israel 4520404	 	 	1,296,447	 	 	 	/s/ Noam Danenberg	 
	Moshe Zuk	 	15 Remez Street 
Hod Hasharon 
Israel 4520215	 	 	1,911,425	 	 	 	/s/ Moshe Zuk	 
	Eran Meytal	 	Mordechai Elkahi 31 
Tel Aviv, Israel	 	 	1,603,937	 	 	 	/s/ Eran Meytal	 

 

[Schedule
A follows on next page]

 

     

     

    

 

Schedule
A

 

List
of Investors Continued

 

Group
2 – Certain Duke Robotics Shareholders exchange shares - Issued

 

	Name	 	Address	 	Number of Shares	 	Signature
	Erez Alroy	 	Yehiel Drezner 1, 

Tel Aviv, ISRAEL	 	1,242,100	 	/s/ Erez Alroy
	Erez Alroy Investments Ltd.	 	Yehiel Drezner 1,

 Tel Aviv, ISRAEL	 	74,701	 	/s/ Erez Alroy Investments Ltd.

        By: Erez
        Alroy

        Title: CEO

	D-Beta One EQ Ltd.	 	C/O Maples Corporate Services Ltd,

 P.O. Box 309, Ugland House,

 Grand Cayman	 	120,761	 	/s/ D-Beta One EQ Ltd

        By: Yorkville Advisors
        Global LP

        Investment manager

        By: David
        Gonzalez

        Title: Partner
        & General Counsel

	Runuman Ltd.	 	C/O Eyal Segal, 4 Hateena St., 

Ganot, ISRAEL	 	869,470	 	/s/ Runuman Ltd.

        By:  Eyal
        Segal

        Title: CEO

	Shmuel Yanay	 	Kharsit St 7, Sha'arei Tikva, 

ISRAEL	 	1,423,453	 	/s/ Shmuel Yanay

 

[Schedule
A follows on next page]

 

     

     

    

 

Schedule
A

 

List
of Investors Continued

 

Group
3 – Legacy USDR Shareholders - Issued

 

	Name	 	Address	 	Number
    of Shares	 	Signature
	GreenBlock
    Capital, LLC	 	420
                                         Royal Palm Way, #100

        Palm
        Beach, FL 33480

        
	 	502,698	 	/s/ GreenBlock
    Capital, LLC 
	 	 	 	 	 	 	 
	Alpha
    Capital Anstalt 	 	Lettstrasse
                                         32

        9490
        Vaduz

        Principality
        of Liechtenstein

        
	 	698,755	 	/s/ Alpha
    Capital Anstalt  

 

[Schedule
A follows on next page]

 

     

     

    

 

Schedule
A

 

List
of Investors Continued

 

 Group
4 – Convertible Loan Lenders 

 

	Name	 	Address	 	Number
    of Shares	 	Signature
	Elisheva
    Ansbacher	 	5201
                                         Pinetree Drive

        Miami
        Beach, FL 33140
	 	Shares
                                         issuable

                                                                                upon
                                         conversion of

                                                                                aggregate
                                         principal

                                                                                amount
                                         of

                                                                                $241,250
	 	 /s/ Elisheva
    Ansbacher
	Ximena
    Benítez Garcia	 	 Protasio
                                         Tagle 59

        San
        Miguel Chapultepec

        11850,
        Miguel Hidalgo

        CDMX,
        Mexico
	 	Shares
                                         issuable

                                                                                upon
                                         conversion of

                                                                                aggregate
                                         principal

                                                                                amount
                                         of

                                                                                $241,250
	 	 /s/ Ximena
    Benítez Garcia
	Noam
    Danenberg	 	 4
                                         Borochov Street

        Hod
        Hasharon

        Israel
        4520404
	 	Shares
                                         issuable

                                                                                upon
                                         conversion of

                                                                                aggregate
                                         principal

                                                                                amount
                                         of

                                                                                $130,000
	 	 /s/ Noam
    Danenberg
	ZUK
    MARBLE PRODUCTS 1998 LTD	 	 Zuk
                                         Marble Products, Inc.

        15
        Remez Street

        Hod
        Hasharon

        Israel
        4520215
	 	Shares
                                         issuable

                                                                                upon
                                         conversion of

                                                                                aggregate
                                         principal

                                                                                amount
                                         of

                                                                                $191,666
	 	 /s/ ZUK
    MARBLE PRODUCTS 1998 LTD
	Alonim
    Marketing and sales promotion LTD	 	Mordechai
                                         Elkahi 31

        Tel
        Aviv, Israel
	 	Shares
                                         issuable

                                                                                upon
                                         conversion of

                                                                                aggregate
                                         principal

                                                                                amount
                                         of

                                                                                $160,834
	 	 /s/ Alonim
    Marketing and sales promotion LTD

 

[Schedule
A follows on next page]

 

     

     

    

 

Schedule
B

 

Company
Reorganization Agreements 

 

		●	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. 

 

     

     

    

  

Schedule
C

 

Priority
in Registration

 

The
Parties to this Agreement hereby agree that, notwithstanding any registration priorities set forth in any other agreement to which
they are party, with respect to the first Demand Registration under this Agreement, to
the extent that he number of securities requested to be included in such registration exceeds
the number which may be included in such registration without the Securities and Exchange Commission requesting or requiring a
reduction as to such selling stockholder a reduction in such amount, that the Registrable Securities included in such registration
shall be so included in the following order of priority:

 

		(i)	First,
                                         at least one-third (1/3) of the Registrable Securities of Group 1 on Schedule A, pro
                                         rata on the basis of the aggregate number of Registrable Securities owned by all of Group
                                         1 on Schedule A who have delivered written requests for registration; 

 

		(ii)	Second,
                                         at least one-third (1/3) of the Registrable Securities of Group 2 on Schedule A, pro
                                         rata on the basis of the aggregate number of Registrable Securities owned by all of Group
                                         2 on Schedule A who have delivered written requests for registration; 

 

		(iii)	Third,
                                         at least one-third (1/3) of the Registrable Securities of Group 3 on Schedule A, pro
                                         rata on the basis of the aggregate number of Registrable Securities owned by all of Group
                                         3 on Schedule A who have delivered written requests for registration; 

 

		(iv)	Fourth,
                                         at least one-third (1/3) of the Registrable Securities of Group 4 on Schedule A, pro
                                         rata on the basis of the aggregate number of Registrable Securities owned by all of Group
                                         4 on Schedule A who have delivered written requests for registration;

 

		(v)	Fifth,
                                         any shares of Common Stock requested to be included pursuant to the exercise of other
                                         contractual registration rights granted by the Company, pro rata among such holders (if
                                         applicable) on the basis of the aggregate number of securities requested to be included
                                         by such holders; and 

 

		(vi)	Sixth;
                                         any remaining Registrable Securities of Group 1 on Schedule A, pro rata on the basis
                                         of the aggregate number of Registrable Securities owned by all of Group 1 on Schedule
                                         A who have delivered written requests for registration.

  

     

     

    

 

EXHIBIT
A

 

SELLING
STOCKHOLDERS

 

AND
PLAN OF DISTRIBUTION

 

Selling
Stockholders

 

We
are registering the shares of Common Stock in order to permit the selling stockholders to offer the shares for resale from time
to time. Except as otherwise noted and except for the ownership of the Loans issued pursuant to a Convertible Loan Agreement,
the selling stockholders have not had any material relationship with us within the past three years. For additional information
regarding the provision of the convertible loans, see “Private Placement of Convertible Loans” above.

 

The
table below lists the selling stockholders and other information regarding the beneficial ownership of the shares of Common Stock
by each of the selling stockholders. The second column lists the number of shares of Common Stock beneficially owned by each selling
stockholder, based on its ownership of any convertible debentures, as of ________, 200_, assuming conversion of all the convertible
debenture held by the selling stockholders on that date, without regard to any limitations on conversions or exercise.

 

The
third column lists the shares of Common Stock being offered by this prospectus by the selling stockholders.

 

In
accordance with the terms of a registration rights agreement with the selling stockholders, this prospectus generally covers the
resale of at least ___________ shares of common stock issued to the selling stockholders. The fourth column assumes
the sale of all of the shares offered by the selling stockholders pursuant to this prospectus.

 

The
selling stockholders may sell all, some or none of their shares in this offering. See “Plan of Distribution.”

 

	

    Name of Selling Stockholder	 	Number
    of Shares Owned Prior to Offering	 	Maximum
    Number of Shares to be Sold Pursuant to this Prospectus	 	Number
    of Shares Owned After Offering
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

     

     

    

 

Plan
of Distribution

 

We
are registering the securities issued to the selling stockholders to permit the resale of these securities by the holders thereof
from time to time after the date of this prospectus, pursuant to the provisions of the Registration Rights Agreement. As used
in this Prospectus, “selling stockholders” includes donees, pledgees, transferees or other successors-in-interest
selling shares received after the date of this prospectus from a selling stockholder as a gift, pledge, partnership distribution
or other permitted transfer.

 

We
will not receive any of the proceeds from the sale by the selling stockholders of the securities. We will bear all fees and expenses
incident to our obligation to register the securities.

 

The
selling stockholders may sell all or a portion of the securities beneficially owned by them and offered hereby from time to time
directly or through one or more underwriters, broker-dealers or agents. If the securities are sold through underwriters or broker-dealers,
the selling stockholders will be responsible for underwriting discounts or commissions or agent’s commissions. The securities
may be sold on any national securities exchange or quotation service on which the securities may be listed or quoted at the time
of sale, in the over-the-counter market or in transactions otherwise than on these exchanges or systems or in the over-the-counter
market and in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices
determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses
or block transactions. The selling stockholders may use any one or more of the following methods when selling shares:

 

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

 

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

 

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

 

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

 

		●	privately
                                         negotiated transactions;

 

		●	settlement
                                         of short sales entered into after the effective date of the registration statement of
                                         which this prospectus is a part;

 

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

 

		●	through
                                         the writing or settlement of options or other hedging transactions, whether such options
                                         are listed on an options exchange or otherwise;

 

		●	a
                                         combination of any such methods of sale; and

 

		●	any
                                         other method permitted pursuant to applicable law.

 

     

     

    

 

The
selling stockholders also may resell all or a portion of the securities in open market transactions in reliance upon Rule 144
under the Securities Act, as permitted by that rule, or Section 4(1) under the Securities Act, if available, rather than under
this prospectus, provided that they meet the criteria and conform to the requirements of those provisions.

 

Broker-dealers
engaged by the selling stockholders may arrange for other broker-dealers to participate in sales. If the selling stockholders
effect such transactions by selling securities to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers
or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders or commissions
from purchasers of the securities for whom they may act as agent or to whom they may sell as principal. Such commissions will
be in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction
will not be in excess of a customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction
a markup or markdown in compliance with FINRA Rule 2121.01.

 

In
connection with sales of the securities or otherwise, the selling stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging in positions
they assume. The selling stockholders may also sell securities short and if such short sale shall take place after the date that
this Registration Statement is declared effective by the Commission, the selling stockholders may deliver securities covered by
this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The selling stockholders
may also loan or pledge securities to broker-dealers that in turn may sell such shares, to the extent permitted by applicable
law. The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions
or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution
of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction). Notwithstanding the foregoing, the selling stockholders have
been advised that they may not use shares registered on this registration statement to cover short sales of our common stock made
prior to the date the registration statement, of which this prospectus forms a part, has been declared effective by the SEC.

 

The
selling stockholders may, from time to time, pledge or grant a security interest in some or all of the securities owned by them
and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the securities
from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision
of the Securities Act of 1933, as amended, amending, if necessary, the list of selling stockholders to include the pledgee, transferee
or other successors in interest as selling stockholders under this prospectus. The selling stockholders also may transfer and
donate the securities in other circumstances in which case the transferees, donees, pledgees or other successors in interest will
be the selling beneficial owners for purposes of this prospectus.

 

The
selling stockholders and any broker-dealer or agents participating in the distribution of the securities may be deemed to be “underwriters”
within the meaning of Section 2(11) of the Securities Act in connection with such sales. In such event, any commissions paid,
or any discounts or concessions allowed to, any such broker-dealer or agent and any profit on the resale of the shares purchased
by them may be deemed to be underwriting commissions or discounts under the Securities Act. Selling Stockholders who are “underwriters”
within the meaning of Section 2(11) of the Securities Act will be subject to the applicable prospectus delivery requirements of
the Securities Act including Rule 172 thereunder and may be subject to certain statutory liabilities of, including but not limited
to, Sections 11, 12 and 17 of the Securities Act and Rule 10b-5 under the Securities Exchange Act of 1934, as amended, or the
Exchange Act.

 

     

     

    

 

Each
selling stockholder has informed the Company that it is not a registered broker-dealer and does not have any written or oral agreement
or understanding, directly or indirectly, with any person to distribute the securities. Upon the Company being notified in writing
by a selling stockholder that any material arrangement has been entered into with a broker-dealer for the sale of common stock
through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer,
a supplement to this prospectus will be filed, if required, pursuant to Rule 424(b) under the Securities Act, disclosing (i) the
name of each such selling stockholder and of the participating broker-dealer(s), (ii) the number of shares involved, (iii) the
price at which such the securities were sold, (iv) the commissions paid or discounts or concessions allowed to such broker-dealer(s),
where applicable, (v) that such broker-dealer(s) did not conduct any investigation to verify the information set out or incorporated
by reference in this prospectus, and (vi) other facts material to the transaction. In no event shall any broker-dealer receive
fees, commissions and markups, which, in the aggregate, would exceed eight percent (8.0%).

 

Under
the securities laws of some states, the securities may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the securities may not be sold unless such shares have been registered or qualified for sale in such
state or an exemption from registration or qualification is available and is complied with. Subject to the terms of the Registration
Rights Agreement, the Company has no obligation to qualify the resale of any shares in any particular state.

 

There
can be no assurance that any selling stockholder will sell any or all of the securities registered pursuant to the shelf registration
statement, of which this prospectus forms a part.

 

Each
selling stockholder and any other person participating in such distribution will be subject to applicable provisions of the Exchange
Act and the rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange
Act, which may limit the timing of purchases and sales of any of the securities by the selling stockholder and any other participating
person. To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the
securities to engage in market-making activities with respect to the shares of Common Stock. All of the foregoing may affect the
marketability of the securities and the ability of any person or entity to engage in market-making activities with respect to
the shares of Common Stock.

 

We
will pay all expenses of the registration of the securities pursuant to the registration rights agreement, including, without
limitation, Securities and Exchange Commission filing fees and expenses of initial compliance with state securities or “blue
sky” laws; provided, however, that each selling stockholder will pay all underwriting discounts and selling commissions,
if any and any related legal expenses incurred by it.

 

We
agreed to keep this prospectus effective until all of the shares have been sold pursuant to this prospectus or Rule 144 under
the Securities Act or any other rule of similar effect. The resale shares will be sold only through registered or licensed brokers
or dealers if required under applicable state securities laws. In addition, in certain states, the resale shares may not be sold
unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.

 

     

     

    

 

EXHIBIT
B

 

OTHER
DISCLOSURES

 

See
attachment provided separately.Exhibit
10.6 

 

NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION (THE “SEC”) OR THE SECURITIES COMMISSION OF ANY STATE 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. THIS
SECURITY MAY NOT BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES. THIS DEBT
REFLECTED IN THIS DEBENTURE IS FULLY SUBORDINATE TO OTHER DEBT OF THE ISSUER, OTHER THAN IN ITS CONVERSION IN ACCORDANCE WITH
ITS TERMS.

 

Original
Issue Date: March 9, 2020

Original
Conversion Price (subject to adjustment herein): $0.374

 

$300,946

 

8%
CONVERTIBLE DEBENTURE

DUE
MARCH 9, 2023

 

THIS
8% CONVERTIBLE DEBENTURE (“New Debenture” or “Debenture”) replaces, exchanges and cancels
those duly authorized and validly issued 8% Convertible Debentures (the “Original Debentures”) of UAS Drone
Corp., a Nevada corporation (the “Company”), having its principal place of business at 420 Royal Palm Way,
#100, Palm Beach, Florida 33480, that were issued pursuant that certain Securities Purchase Agreement dated as of March 31, 2015,
as amended (the “Purchase Agreement”), by and between the Company and Alpha Capital Anstalt, a Liechtenstein
anstalt (the “Purchaser”),.

 

FOR
VALUE RECEIVED, the Company promises to pay to ALPHA CAPITAL ANSTALT or its registered assigns (the “Holder”),
or shall have paid pursuant to the terms hereunder, the principal sum of Three Hundred Thousand Nine Hundred Forty Six Dollars
($300,946) on March 9, 2023 (the “Maturity Date”) or such earlier date as this Debenture is required or permitted
to be repaid as provided hereunder, and to pay interest to the Holder on the aggregate unconverted and then outstanding principal
amount of this Debenture in accordance with the provisions hereof. This Debenture is subject to the following additional provisions:

 

     

     

    

 

Section
1.Definitions. For the purposes hereof, the following terms shall have the following meanings:

 

“Affiliate”
(including, with a correlative meaning, “affiliated”) means, when used with respect to a specified Person, a Person
that directly or indirectly, through one or more intermediaries, Controls, is Controlled by or is under common Control with such
specified Person.

 

“Alternate
Consideration” shall have the meaning set forth in Section 5(c).

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in
Rule 1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the
Company or any Significant Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof
any such case or proceeding that is not dismissed within sixty (60) days after commencement, (c) the Company or any Significant
Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding
is entered, (d) the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it
or any substantial part of its property that is not discharged or stayed within sixty (60) calendar days after such appointment,
(e) the Company or any Significant Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Company
or any Significant Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring
of its debts, (g) the Company or any Significant Subsidiary thereof admits in writing that it is generally unable to pay its debts
as they become due, (h) the Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its
consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting
any of the foregoing.

 

“Beneficial
Ownership Limitation” shall have the meaning set forth in Section 4(d).

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Common
Stock” shall mean the $0.0001 par value authorized common stock of the Company.

 

“Common
Stock Equivalents” means any securities of the Company or any Subsidiary of the Company which would entitle the holder
thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant
or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder
thereof to receive, Common Stock.

 

    2

     

    

 

“Control”,
“Controlled” and “Controlling” mean, when used with respect to any specified Person, the
power to vote at least 25% of the voting power of a Person, or the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or other
interests, by contract or otherwise, and the terms “Controlled by” and “under common Control with” shall
be construed accordingly.

 

“Conversion”
shall have the meaning ascribed to such term in Section 4.

 

“Conversion
Date” shall have the meaning set forth in Section 4(a).

 

“Conversion
Price” shall have the meaning set forth in Section 4(b).

 

“Conversion
Schedule” means the Conversion Schedule in the form of Schedule 1 attached hereto.

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Debenture in accordance with
the terms hereof.

 

“Debenture
Register” shall have the meaning set forth in Section 2(c).

 

“Derivative
Instrument” means any and all derivative securities (as defined under Rule 16a-1 under the Exchange Act) that increase
in value as the value of any Equity Securities of the Company increases, including a long convertible security, a long call option
and a short put option position, in each case, regardless of whether (a) such derivative security conveys any voting rights in
any Equity Security, (b) such derivative security is required to be, or is capable of being, settled through delivery of any Equity
Security or (c) other transactions hedge the value of such derivative security.

 

“Duke
Share Exchange Agreement” shall mean the Share Exchange Agreement dated March 4, 2020, with Duke Robotics, Inc., a Delaware
corporation (“Duke”), and the several shareholders of Duke as signatories thereto.

 

“Equity
Right” means, with respect to any Person, any security (including any preferred share, capital note, debt security or
hybrid debt-equity security) or obligation convertible into or exercisable or exchangeable for, or giving any Person any right
to subscribe for or acquire, or any options, calls, warrants, restricted shares, restricted shares units, deferred share awards,
share units, “phantom” awards, dividend equivalents, participations, interests, rights or commitments relating to,
or any share appreciation right or other instrument the value of which is determined in whole or in part by reference to the market
price or value of, shares of capital stock or earnings of such Person.

 

“Equity
Securities” means (a) common stock, preferred shares or other capital stock or equity interests or equity-linked interests
of the Company and (b) Equity Rights that are directly or indirectly exercisable or exchangeable for or convertible into common
stock, preferred shares or other capital stock or equity interests or equity-linked interests of the Company.

 

    3

     

    

 

“Event
of Default” shall have the meaning set forth in Section 8(a).

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company
pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of
Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered
to the Company, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other
securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this
Debenture, provided that such securities have not been amended since the date of this Debenture to increase the number of such
securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection
with stock splits or combinations) or to extend the term of such securities, and (c) securities issued pursuant to acquisitions
or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance
shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company
or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional
benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities
primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.

 

“Fundamental
Transaction” shall have the meaning set forth in Section 5(c).

 

“Group”
has the meaning assigned to such term in Section 13(d)(3) of the Exchange Act.

 

“Group
Member” means, with respect to any specified Person, any Affiliate of the specified Person that is, directly or indirectly,
Controlled by the specified Person and includes any Person with respect to which the specified Person is a direct or indirect
Subsidiary.

 

“Hedging
Arrangement” means any transaction or arrangement, including through the creation, purchase or sale of any security,
including any security-based swap, swap, cash-settled option, forward sale agreement, exchangeable note, total return swap or
other derivative, in each case, the effect of which is to hedge the risk of owning the Debenture and/or any Conversion Shares
(including prior to any Conversion).

 

“Mandatory
Default Amount” means 100% of the outstanding principal amount of this Debenture, plus 100% of accrued and unpaid interest
hereon, and (b) other reasonable legal costs and expenses incurred by Holder in enforcing this Debenture.

 

    4

     

    

 

“New
York Courts” shall have the meaning set forth in Section 9(d).

 

“Notice
of Conversion” shall have the meaning set forth in Section 4(a).

 

“OTC
Markets” means the OTC Markets, Inc.

 

“Original
Issue Date” means March 9, 2020.

 

“Person”
means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated association,
corporation, firm or other entity or group (as defined in the Exchange Act) or any governmental authority.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of March 31, 2015, among the Company and the original Holders,
as amended, modified or supplemented from time to time in accordance with its terms.

 

“Registration
Statement” means a registration statement meeting the requirements set forth in the Securities Act.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Securities
Exchange Agreement” means Securities Exchange Agreement between the Company and the Purchaser entered into as of the
date of this Debenture and to which this Debenture is Exhibit A thereto.

 

“Share
Delivery Date” shall have the meaning set forth in Section 4(c)(ii).

 

“Successor
Entity” shall have the meaning set forth in Section 5(c).

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange, OTCQB, OTCQX or the OTC Pink Tier (or any successors to any of the foregoing).

 

“Variable
Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are
convertible into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either (A)
at a conversion price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices
of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities or (B)
with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of
such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business
of the Company or the market for the Common Stock or (ii) enters into any agreement, including, but not limited to, an equity
line of credit, whereby the Company may issue securities at a future determined price.

 

    5

     

    

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the average price of the Common Stock for such date (or the nearest preceding date) on the
Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the average
price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock
is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the OTC Pink
Tier published by OTC Markets (or a similar organization or agency succeeding to its functions of reporting prices), the most
recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of
Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the
Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

Section
2.Interest.

 

a) Payment
of Interest in Cash. The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal
amount of this Debenture at the rate of 8% per annum, payable on each Conversion Date (as to that principal amount then being
converted), and on the Maturity Date, solely in Common Stock of the Company.

 

b) Interest
Calculations. Interest shall be calculated on the basis of a three-hundred and sixty (360) day year, consisting of twelve
(12) thirty (30) calendar day periods, and shall accrue daily commencing on the Original Issue Date until the conversion in full
of the outstanding principal, together with all accrued and unpaid interest, and other amounts which may become due hereunder,
has been made.

 

c) [Reserved]

 

d) Prepayment.
Upon five (5) business days’ prior written notice to the Holder, the Company may prepay any portion of the principal amount
of this Debenture without the prior written consent of the Holder and without penalty.

 

    6

     

    

 

Section
3.Restriction on Transfers and Encumbrances.

 

		a)	No
                                         Assignment. During the term of this Debenture, the Debenture may not be transferred,
                                         assigned or hypothecated without the prior written consent of the Company, such consent
                                         to be given or withheld at its sole discretion. The entry by the Holder into a Hedging
                                         Arrangement with respect to the Debenture and/or any Conversion Shares (including prior
                                         to any Conversion) shall be deemed to be a transfer of such for purposes of this ‎Section,
                                         and subject to such restrictions as aforesaid.

 

		b)	
                                         Standstill Restrictions. During the term of this Debenture, the Holder shall not, directly
                                         or indirectly, and shall cause its Representatives (to the extent acting on behalf of
                                         the Holder) and Group Members not, directly or indirectly, to, without the prior written
                                         consent of, or waiver by, the Company:

 

		i.	acquire,
                                         offer or seek to acquire, agree to acquire or make a proposal (including any private
                                         proposal to the Company or the Board) to acquire, by purchase or otherwise (including
                                         through the acquisition of Beneficial Ownership), any securities (including any Equity
                                         Securities or Voting Securities) or Derivative Instruments, or direct or indirect rights
                                         to acquire any securities (including any Equity Securities or Voting Securities) or Derivative
                                         Instruments, of the Company or any Subsidiary or Affiliate of the Company or any successor
                                         to or Person in Control of the Company, or any securities (including any Equity Securities
                                         or Voting Securities) or indebtedness convertible into or exchangeable for any such securities
                                         or indebtedness; provided that the Holder may acquire, offer or seek to acquire, agree
                                         to acquire or make a proposal to acquire common stock of the Company (and any securities
                                         (including any Equity Securities or Voting Securities) convertible into or exchangeable
                                         for common stock of the Company) and Derivative Instruments with respect to common stock
                                         of the Company, if, immediately following such acquisition, the collective Beneficial
                                         Ownership of common stock of the Company of the Shareholder and its Group Members, as
                                         a group, would not exceed 9.99% of the issued and outstanding capital of the Company;

 

		ii.	offer,
                                         or seek to acquire, or participate in any acquisition of a majority of the consolidated
                                         assets of the Company and its Subsidiaries, taken as a whole;

 

		iii.	conduct,
                                         fund or otherwise become a participant in any “tender offer” (as such term
                                         is used in Regulation 14D under the Exchange Act) or in any merger or merger type transaction,
                                         involving Equity Securities, Voting Securities or any securities convertible into, or
                                         exercisable or exchangeable for, Equity Securities or Voting Securities, in each case
                                         either not approved by the Board or approved by the Board when a majority of directors
                                         at the time of such approval or recommendation are not Incumbent Directors;

 

    7

     

    

 

		iv.	otherwise
                                         act in concert with others to seek to control or influence the Board or shareholders
                                         of the Company or its Subsidiaries or Affiliates; provided that nothing in this clause
                                         (d) shall preclude the Shareholder or its Representatives from engaging in discussions
                                         with the Company or its Representatives;

 

		v.	make
                                         or join or become a participant (as defined in Instruction 3 to Item 4 of Schedule 14A
                                         under the Exchange Act) in (or in any way knowingly encourage) any “solicitation”
                                         of “proxies” (as such terms are defined in Regulation 14A as promulgated
                                         by the SEC, or consent to vote any Voting Securities or any of the voting securities
                                         of any Subsidiaries or Affiliates of the Company (including through action by written
                                         consent), or otherwise knowingly advise or influence any Person with respect to the voting
                                         of any securities of the Company or its Subsidiaries or Affiliates;

 

		vi.	make
                                         any public announcement with respect to, or solicit or submit a proposal for, or offer,
                                         seek, propose or indicate an interest in (with or without conditions) any merger or merger
                                         type transaction, including, but not limited to, consolidation, business combination,
                                         “tender offer” (as such term is used in Regulation 14D under the Exchange
                                         Act, recapitalization, reorganization, purchase or license of a material portion of the
                                         assets, properties, securities or indebtedness of the Company or any Subsidiary or Affiliate
                                         of the Company, or other similar extraordinary transaction involving the Company, any
                                         Subsidiary of the Company or any of its securities or indebtedness, or enter into any
                                         discussions, negotiations, arrangements, understandings or agreements (whether written
                                         or oral) with any other Person regarding any of the foregoing;

 

		vii.	call
                                         or seek to call a meeting of shareholders of the Company or initiate any shareholder
                                         proposal or meeting agenda item for action of the Company’s shareholders, or seek
                                         election or appointment to or to place a representative on the Board or seek the removal
                                         of any director from the Board;

 

    8

     

    

 

		viii.	form,
                                         join, become a member or in any way participate in a Group in connection with a Hedging
                                         Arrangement with respect to the securities of the Company or any of its Subsidiaries
                                         or Affiliates;

 

		ix.	deposit
                                         any Voting Securities in a voting trust or similar Contract or subject any Voting Securities
                                         to any voting agreement, pooling arrangement or similar arrangement or Contract, or grant
                                         any proxy with respect to any Voting Securities;

 

		x.	make
                                         any proposal or disclose any plan, or cause or authorize any of its and their directors,
                                         officers, employees, agents, advisors and other Representatives to make any proposal
                                         or disclose any plan on its or their behalf, inconsistent with the foregoing restrictions;

 

		xi.	knowingly
                                         take any action or cause or authorize any of its and their directors, officers, employees,
                                         agents, advisors and other Representatives to take any action on its or their behalf,
                                         that would reasonably be expected to require the Company or any of its Subsidiaries or
                                         Affiliates to publicly disclose any of the foregoing actions or the possibility of a
                                         business combination, merger or other type of transaction or matter described in this
                                         ‎Section;

 

		xii.	knowingly
                                         advise, assist, arrange or otherwise enter into any discussions or arrangements with
                                         any third party with respect to any of the foregoing; or

 

		xiii.	directly
                                         or indirectly, contest the validity of, any provision of this ‎Section (including
                                         this subclause) or ‎sub-Section (a) (whether by legal action or otherwise).

 

    9

     

    

 

c) [Reserved].

 

Section
4.Conversion.

 

a) Voluntary
Conversion. At any time after the Original Issue Date until this Debenture is no longer outstanding, this Debenture shall
be convertible, in whole or in part, into shares of Common Stock at the option of the Holder, at any time and from time to time
(subject to the conversion limitations set forth in Section 4(d) hereof); provided, however, Purchaser shall be limited
to conversions of $50,000 per month under this Debenture, unless the average daily five (5) day trading volume of the Company’s
Common Stock on any Trading Market exceeds $100,000 prior to any Notice of Conversion, in which case, these limitations on the
monthly conversion amount shall not be applicable thereafter and shall cease to have any effect on any subsequent conversions,
except as otherwise provided herein. The Holder shall effect conversions by delivering to the Company a Notice of Conversion,
the form of which is attached hereto as Annex A (each, a “Notice of Conversion”), specifying therein
the principal amount of this Debenture to be converted and the date on which such conversion shall be effected (such date, the
“Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall
be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To
effect conversions hereunder, the Holder shall not be required to physically surrender this Debenture to the Company unless the
entire principal amount of this Debenture, plus all accrued and unpaid interest thereon, has been so converted in which case the
Holder shall surrender this Debenture as promptly as is reasonably practicable after such conversion notice without delaying the
Company’s obligation to deliver the shares on the Share Delivery Date. Conversions hereunder shall have the effect of lowering
the outstanding principal amount of this Debenture in an amount equal to the applicable conversion. The Holder and the Company
shall maintain records showing the principal amount(s) converted and the date of such conversion(s). The Company may deliver an
objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice of Conversion. In the event of any
dispute or discrepancy, the records of the Company shall be controlling and determinative in the absence of manifest error. The
Holder, and any assignee by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of this paragraph,
following conversion of a portion of this Debenture, the unpaid and unconverted principal amount of this Debenture may be less
than the amount stated on the face hereof. On the Maturity Date, accrued but unpaid interest and other amounts owing in respect
thereof, shall be converted into at the Closing Conversion Price or New Conversion Price, as applicable. For clarification purposes,
absent an Event of Default as set forth in Section 8(a), the principal amount and accrued and unpaid interest of this Debenture
may only be converted into Conversion Shares.

 

b) Conversion
Price. The conversion price in effect on any Conversion Date shall be equal to $0.3740.

 

c)
Mechanics of Conversion.

 

i. Conversion
Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon a conversion hereunder
shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Debenture to be converted
by (y) the Closing Conversion Price or the New Conversion Price, as applicable.

 

    10

     

    

 

 

ii. Delivery
of Certificate Upon Conversion. Not later than three (3) Trading Days after each Conversion Date (the “Share Delivery
Date”), the Company shall deliver, or cause to be delivered, to the Holder (A) a certificate or certificates representing
the Conversion Shares which, on or after the Effective Date, shall bear an appropriate “restricted” legend, provided,
however, if the Conversion Shares have been registered with the SEC, the certificate or certificates thereof shall be free
of restrictive legends and trading restrictions (other than those which may then be required by applicable securities laws, rules
and regulations or any other written agreement between the parties that limits the resale of the Conversion Shares) representing
the number of Conversion Shares being acquired upon the conversion of this Debenture (including, if the Company has given continuous
notice pursuant to Section 2(b) for payment of interest in shares of Common Stock at least ten (10) Trading Days prior to the
date on which the Notice of Conversion is delivered to the Company, shares of Common Stock representing the payment of accrued
interest otherwise determined pursuant to Section 2(a)). On or after the Effective Date, the Company shall deliver any certificate
or certificates required to be delivered by the Company under this Section 4(c) electronically through the Depository Trust Company
or another established clearing corporation performing similar functions.

 

iii. Failure
to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or certificates are not delivered to
or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to
the Company at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which event
the Company shall promptly return to the Holder any original Debenture delivered to the Company and the Holder shall promptly
return to the Company the Common Stock certificates issued to such Holder pursuant to the rescinded Conversion Notice.

 

    11

     

    

 

iv. Obligation
Absolute. The Company’s obligations to issue and deliver the Conversion Shares upon conversion of this Debenture in
accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce
the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action
to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the
Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any
other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder
in connection with the issuance of such Conversion Shares; provided, however, that such delivery shall not operate as a
waiver by the Company of any such action the Company may have against the Holder. In the event the Holder of this Debenture shall
elect to convert any or all of the outstanding principal amount and accrued interest hereof, the Company may not refuse conversion
based on any claim that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of law,
agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining conversion
of all or part of this Debenture shall have been sought and obtained, and the Company posts a surety bond for the benefit of the
Holder in the amount of 150% of the outstanding principal amount of this Debenture, which is subject to the injunction, which
bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which
shall be payable to the Holder to the extent it obtains judgment. In the absence of such injunction, the Company shall issue Conversion
Shares or, if applicable, cash, upon a properly noticed conversion.

 

v. Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights available to the Holder,
from and after the Going Public Date, if the Company fails for any reason to deliver to the Holder such certificate or certificates
by the Share Delivery Date pursuant to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage
firm to purchase (in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares
of Common Stock to deliver in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive
upon the conversion relating to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash
to the Holder (in addition to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s
total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the
aggregate number of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by
(2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage
commissions) and (B) at the option of the Holder, either reissue (if surrendered) this Debenture in a principal amount equal to
the principal amount of the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder
the number of shares of Common Stock that would have been issued if the Company had timely complied with its delivery requirements
under Section 4(c)(ii). For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a
Buy-In with respect to an attempted conversion of this Debenture with respect to which the actual sale price of the Conversion
Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of
the immediately preceding sentence, the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company
written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence
of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing shares of Common Stock upon conversion of this Debenture as
required pursuant to the terms hereof.

 

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vi. [Reserved]

 

vii. Reservation
of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available out of its
authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Debenture and payment
of interest on this Debenture, each as herein provided, free from preemptive rights or any other actual contingent purchase rights
of Persons other than the Holder (and the other holders of the Debentures), not less than 100% of aggregate number of shares of
the Common Stock as shall (subject to the terms and conditions set forth in the Securities Exchange Agreement) be issuable (taking
into account the adjustments and restrictions of Section 5) upon the conversion of the then outstanding principal amount of this
Debenture and payment of interest hereunder. The Company covenants that all shares of Common Stock that shall be so issuable shall,
upon issue, be duly authorized, validly issued, fully paid and nonassessable and, if registered under a Registration Statement
that is effective under the Securities Act, shall be registered for public resale in accordance with such Registration Statement.

 

viii. Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Debenture.
As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company shall
at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Conversion Price or round up to the next whole share.

 

ix. Transfer
Taxes and Expenses. The issuance of certificates for shares of the Common Stock on conversion of this Debenture shall be made
without charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or
delivery of such certificates, provided that, the Company shall not be required to pay any tax that may be payable in respect
of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the
Holder of this Debenture so converted and the Company shall not be required to issue or deliver such certificates unless or until
the Person or Persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established
to the satisfaction of the Company that such tax has been paid. The Company shall pay all Transfer Agent fees required for same-day
processing of any Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation
performing similar functions) required for same-day electronic delivery of the Conversion Shares.

 

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d) Holder’s
Conversion Limitations. The Company shall not effect any conversion of this Debenture, and a Holder shall not have the right
to convert any portion of this Debenture, to the extent that after giving effect to the conversion set forth on the applicable
Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together with
the Holder or any of the Holder’s Affiliates) 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 Holder
and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Debenture with respect
to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i)
conversion of the remaining, unconverted principal amount of this Debenture beneficially owned by the Holder or any of its Affiliates
and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a
limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its
Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 4(d), beneficial ownership shall
be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the
extent that the limitation contained in this Section 4(d) applies, the determination of whether this Debenture is convertible
(in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Debenture
is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to
be the Holder’s determination of whether this Debenture may be converted (in relation to other securities owned by the Holder
together with any Affiliates) and which principal amount of this Debenture is convertible, in each case subject to the Beneficial
Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time
it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph
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. For purposes of this Section 4(d), in determining the number of outstanding shares
of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following:
(i) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent
public announcement by the Company, or (iii) a more recent written notice by the Company or the Company’s transfer agent
setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company
shall within two (2) Trading Days confirm orally and in writing to the Holder 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 this Debenture, by the Holder or its Affiliates since the date as of which such number
of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of
the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
issuable upon conversion of this Debenture held by the Holder. The Holder, upon notice to the Company, may increase or decrease
the Beneficial Ownership Limitation provisions of this Section 4(d), provided that the Beneficial Ownership Limitation in no event
exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock upon conversion of this Debenture held by the Holder and the Beneficial Ownership Limitation provisions of this
Section 4(d) shall continue to apply. Any such increase to the Beneficial Ownership Limitation will not be effective until the
sixty-first (61st) day after such notice is delivered to the Company. The Beneficial Ownership Limitation provisions
of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section
4(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership
Limitation contained herein 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 Debenture.

 

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Section
5.Certain Adjustments.

 

a) Stock
Dividends and Stock Splits. If the Company, at any time while this Debenture is outstanding: (i) pays a stock dividend or
otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock
Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion
of, or payment of interest on, the Debentures), (ii) subdivides outstanding shares of Common Stock into a larger number of shares,
(iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares
or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company,
then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock
(excluding any treasury shares of the Company) outstanding immediately before such event, and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall
become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or
distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b) Pro
Rata Distributions. During such time as this Debenture is outstanding, if the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Debenture, then, in each such case, the Holder shall be entitled to participate in such
Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of
Common Stock acquirable upon complete exercise of this Debenture (without regard to any limitations on exercise hereof, including
without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution,
or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the
participation in such Distribution (provided, however, to the extent that the Holder's right to participate in any such
Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to
participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such
Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until
such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

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c) Fundamental
Transaction. If, at any time while this Debenture is outstanding, (i) the Company, directly or indirectly, in one or more
related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly
or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person
acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”) (provided, however, that
the Duke Share Exchange Agreement or any similar agreement pertaining to Duke, shall not be a Fundamental Transaction), then,
upon any subsequent conversion of this Debenture, the Holder shall have the right to receive, for each Conversion Share that would
have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to
any limitation in Section 4(d) on the conversion of this Debenture), the number of shares of Common Stock of the successor or
acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common
Stock for which this Debenture is convertible immediately prior to such Fundamental Transaction (without regard to any limitation
in Section 4(d) on the conversion of this Debenture). For purposes of any such conversion, the determination of the Conversion
Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one (1) share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any conversion of this Debenture following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Debenture in accordance with the provisions of this Section 5(c) pursuant to written agreements
in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the holder of this Debenture, deliver to the Holder in exchange for this Debenture
a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Debenture
which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the shares of Common Stock acquirable and receivable upon conversion of this Debenture (without regard to any limitations on
the conversion of this Debenture) prior to such Fundamental Transaction, and with a conversion price which applies the conversion
price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant
to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such
conversion price being for the purpose of protecting the economic value of this Debenture immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Debenture referring to the “Company” shall refer instead
to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the
Company under this Debenture with the same effect as if such Successor Entity had been named as the Company herein.

 

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d) Subsequent
Equity Sales. If at any time while this Debenture is outstanding, the Company or any Subsidiary of the Company, as applicable,
sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces
any sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person
to acquire shares of Common Stock at an effective price per share that is lower than the then Conversion Price (such lower price,
the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if
the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights
per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price
per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion
Price on such date of the Dilutive Issuance), then the Conversion Price shall be reduced to equal the Base Conversion Price; provided,
however that in the event that such Dilutive Issuance occurs from the Original Issue Date through the six (6) month anniversary
or the Original Issue Date, any such adjustment shall occur immediately after the completion of such period. Such adjustment shall
be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustment will be
made under this Section 5(d) in respect of an Exempt Issuance. If the Company enters into a Variable Rate Transaction, the Company
shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest possible conversion price at which such
securities may be converted or exercised. The Company shall notify the Holder in writing, no later than the Trading Day following
the issuance of any Common Stock or Common Stock Equivalents subject to this Section 5(d), indicating therein the applicable issuance
price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive
Issuance Notice”). For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant
to this Section 5(d), upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Conversion Shares
based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately
refers to the Base Conversion Price in the Notice of Conversion.

 

e) Calculations.
All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued and outstanding.

 

f) Notice
to the Holder.

 

i. Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5, the Company shall
promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

 

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ii. Notice
to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C)
the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any
sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common
Stock is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office
or agency maintained for the purpose of conversion of this Debenture, and shall cause to be delivered to the Holder at its last
address as it shall appear upon the Debenture Register, at least twenty (20) calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record
to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date
as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common
Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect
the validity of the corporate action required to be specified in such notice. From and after the Going Public Date, to the extent
that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of
the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.
The Holder shall remain entitled to convert this Debenture during the twenty (20) day period commencing on the date of such notice
through the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

Section
6.[RESERVED]

 

Section
7.[RESERVED]

  

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Section
8.Events of Default.

 

a) “Event
of Default” means, wherever used herein, any of the following events (whatever the reason for such event and whether
such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any
court, or any order, rule or regulation of any administrative or governmental body):

 

i. any
default in the payment of (A) the principal amount of the Debenture or (B) interest and other amounts owing to a Holder on the
Debenture, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date or by acceleration
or otherwise) which default, solely in the case of an interest payment or other default under clause (B) above, is not cured within
three (3) Trading Days;

 

ii. [Reserved]

 

iii. a
default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
shall occur under (A) this Debenture or (B) any other material agreement, lease, document or instrument to which the Company or
any Subsidiary is obligated (and not covered by clause (vi) below);

 

iv. any
representation or warranty made in this Debenture, any written statement pursuant hereto or any other report, financial statement
or certificate made or delivered to the Holder or any other Holder shall be untrue or incorrect in any material respect as of
the date when made or deemed made;

 

v. the
Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy
Event;

 

vi. the
Company or any Subsidiary shall materially default (subject to any grace or cure period provided in the applicable agreement,
document or instrument) on any of its obligations under any mortgage, credit agreement or other facility, indenture agreement,
factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced, any indebtedness
for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation greater than
$400,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness becoming or
being declared due and payable prior to the date on which it would otherwise become due and payable;

 

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vii. [Reserved];

 

viii. [Reserved];

 

ix. the
Company shall fails without cause to deliver certificates to a Holder prior to the tenth (10th) Trading after a Conversion
Date pursuant to Section 4(c) or the Company shall provide at any time notice to the Holder, including by way of public announcement,
of the Company’s intention to not honor requests for conversions of any Debentures in accordance with the terms hereof,
without cause;

 

x. [Reserved];
or

 

xi. Any
final and non-appealable monetary judgment, writ or similar final process shall be entered or filed against the Company, any subsidiary
or any of their respective property or other assets for more than $100,000, and such judgment, writ or similar final process shall
remain unvacated, unbonded or unstayed for a period of forty-five (45) calendar days.

 

b) Remedies
Upon Event of Default. If any Event of Default occurs, the outstanding principal amount of this Debenture, plus accrued but
unpaid interest and other amounts owing in respect thereof through the date of acceleration, shall become, at the Holder’s
election, immediately due and payable in cash at the Mandatory Default Amount. Commencing five (5) days after the occurrence of
any Event of Default that results in the eventual acceleration of this Debenture, the interest rate on this Debenture shall accrue
at an interest rate equal to the lesser of 15% per annum or the maximum rate permitted under applicable law. Upon the payment
in full of the Mandatory Default Amount, the Holder shall promptly surrender this Debenture to or as directed by the Company.
In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives, any presentment,
demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce
any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration
may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder
of the Debenture until such time, if any, as the Holder receives full payment pursuant to this Section 8(b). No such rescission
or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

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c) Loan
Subordination. Holder hereby subordinates payment by the Company of any and all indebtedness, liabilities, interest and other
obligations of the Company to the Holder (the “Subordinated Debt”), to the payment to those certain creditors of the
Company (“Lenders”) listed in Schedule A pursuant to those Convertible Loan Agreements dated March 9, 2020,
copies of which are enclosed herewith as Exhibit B (as such agreements may be amended from time to time, the “(the
“Senior Loans”), in full, of all indebtedness, interest, liabilities, guarantees and other obligations of the
Company towards the Lender pursuant to the Senior Loans. Unless and until all of the Senior Loans have been indefeasibly paid
in full, in cash or in kind to the full satisfaction of the Lenders and all obligations of the Lenders to make loans or extend
other financial accommodations to the Company have terminated, Holder agrees not to do any of the following, directly or indirectly:
ask for or accept payment in cash of all or any part of the Subordinated Debt, or other property other than Common Stock in accordance
with the provisions of this Debenture, or by set-off or in any other manner, demand, sue for, accelerate the maturity of, or otherwise
enforce any of the Subordinated Debt, enforce any guaranty of any of the Subordinated Debt, take any security for any of the Subordinated
Debt, exercise any rights or remedies with respect to the Subordinated Debt, judicially or non-judicially (including without limitation
the commencement of any bankruptcy or insolvency proceeding against the Company), or attempt to do any of the foregoing.

 

Section
9.Miscellaneous.

 

a) Notices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation,
any Notice of Conversion, shall be in writing and delivered personally, by facsimile, by email attachment, or sent by a nationally
recognized overnight courier service, addressed to the Company, at the address set forth above, or such other facsimile number,
email address, or address as the Company may specify for such purposes by notice to the Holder delivered in accordance with this
Section 9(a).  Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be
in writing and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized overnight courier service
addressed to each Holder at the facsimile number or email address or address of the Holder appearing on the books of the Company,
or if no such facsimile number or email attachment or address appears on the books of the Company, at the principal place of business
of such Holder.  Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest
of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment
to the email address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on any date, (ii)
the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile
number or email attachment to the email address set forth on the signature pages attached hereto on a day that is not a Trading
Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is
required to be given.

 

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b)Absolute
Obligation. Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of, and accrued interest, as applicable, on this Debenture
at the time, place, and rate, and in the coin or currency, herein prescribed. This Debenture is a direct debt obligation of the
Company. This Debenture ranks pari passu with all other Debentures now or hereafter issued under the terms set forth herein.

 

c) Lost
or Mutilated Debenture. If this Debenture shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver,
in exchange and substitution for and upon cancellation of a mutilated Debenture, or in lieu of or in substitution for a lost,
stolen or destroyed Debenture, a new Debenture for the principal amount of this Debenture so mutilated, lost, stolen or destroyed,
but only upon receipt of evidence of such loss, theft or destruction of such Debenture, and of the ownership hereof, reasonably
satisfactory to the Company.

 

d) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Debenture shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense
of the transactions contemplated by this Debenture (whether brought against a party hereto or its respective Affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York,
Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts 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 this Debenture), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of such New York Courts, or such New York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, 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 Debenture 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 applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all
right to trial by jury in any legal proceeding arising out of or relating to this Debenture or the transactions contemplated hereby.
If any party shall commence an action or proceeding to enforce any provisions of this Debenture, then the prevailing party in
such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred
in the investigation, preparation and prosecution of such action or proceeding.

 

    22

     

    

 

e) Waiver.
Any waiver by the Company or the Holder of a breach of any provision of this Debenture shall not operate as or be construed to
be a waiver of any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the
Company or the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall not be considered
a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this
Debenture on any other occasion. Any waiver by the Company or the Holder must be in writing.

 

f) Severability.
If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect,
and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons
and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable
law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of
interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it shall not at
any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury
law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or interest on
this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants
or the performance of this Debenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits
or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution
of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been
enacted.

 

g) Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief.  The remedies provided in this Debenture shall
be cumulative and in addition to all other remedies available under this Debenture at law or in equity (including a decree of
specific performance and/or other injunctive relief).  The Company covenants to the Holder that there shall be no characterization
concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments,
conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except
as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges
that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any
such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder
shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened
breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall
provide all relevant and nonconfidential information and documentation to the Holder that is reasonably requested by the Holder
and necessary to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Debenture.

 

    23

     

    

 

h) Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

i) Headings.
The headings contained herein are for convenience only, do not constitute a part of this Debenture and shall not be deemed to
limit or affect any of the provisions hereof.

 

j) Entire
Agreement; Termination of Original Debentures and Purchase Agreement. This Debenture is intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of
the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein and in that certain Registration Rights Agreement being entered into by the Company,
GBC and other security holders of the Company contemporaneously with the execution of this Debenture, (the “RRA”),
with respect to the registration rights granted by the Company with respect to this Debenture and the Conversion Shares. This
Debenture together with the RRA supersedes, cancels and replaces any and all prior agreements and understandings between the parties
with respect to such subject matter, including, without limitation and specifically the Original Debenture, the Purchase Agreement
and any other agreement, undertaking or obligation of either party to the other entered into pursuant thereto (collectively, the
“Terminated Instruments”) which are hereby terminated and void. Neither party has or shall bring forth any
claims or demands against the other party or their affiliates with respect to the performance of or the expiration, termination
and voidance of the Terminated Instruments.

  

*********************

  

(Signature
Pages Follow)

 

    24

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Debenture to be duly executed by a duly authorized officer as of the date first above
indicated.

 

	 	UAS Drone Corp.
	 	 
	 	By:	/s/ Christopher J. Leith
	 	 	Name: Christopher J. Leith
	 	 	Title: Acting CFO
	 	 	 
	 	Facsimile No. for delivery of Notices: _______________

 

     

     

    

ANNEX
A

 

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal under the 8% Convertible Debenture due March 9, 2023 of UAS Drone Corp., a Nevada
corporation (the “Company”), into shares of common stock (the “Common Stock”), of the Company
according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a
person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering
herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged
to the holder for any conversion, except for such transfer taxes, if any.

 

By
the delivery of this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common
Stock does not exceed the amounts specified under Section 4 of this Debenture, as determined in accordance with Section 13(d)
of the Exchange Act.

 

The
undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with
any transfer of the aforesaid shares of Common Stock.

 

Conversion
calculations:

Date
to Effect Conversion:

 

Principal
Amount of Debenture to be Converted:

 

Payment
of Interest in Common Stock __ yes __ no

If
yes, $_____ of Interest Accrued on Account of Conversion at Issue.

 

Number
of shares of Common Stock to be issued:

 

Signature:

 

Name:

 

Address
for Delivery of Common Stock Certificates:

 

Or

 

DWAC
Instructions:

 

Broker
No:                                      

Account
No:                               

 

     

     

    

 

Schedule
1

 

CONVERSION
SCHEDULE

 

The
8% Convertible Debenture due on __________________ in the aggregate principal amount of $________________ IS issued by UAS Drone
Corp., a Nevada corporation. This Conversion Schedule reflects conversions made under Section 4 of the above referenced Debenture.

 

Dated:

 

	Date of Conversion 
(or for first entry, Original Issue Date)	 	 	Amount of Conversion 
(Principal $____ 
Interest
    $____	 	 	Aggregate Principal Amount Remaining Subsequent to Conversion 
(or original Principal Amount)	 	 	Company Attest	 
			 				 	 			 			         	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	    	 	 	                	 	 	 	 	 	 	 	 	 
	 	           	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	             	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

     

     

    

 

Schedule
A

 

Convertible
Loan Lenders

 

	Name	 	Loan	 	 	Already advanced	 	 	%	 	 	No. of Shares	 	 	% of holdings	 	 	Balance	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ansbacher	 	$	250,000	 	 	$	8,750	 	 	 	25.00	%	 	 	2,405,906	 	 	 	6.00	%	 	$	241,250	 	 	 	25.00	%
	Benitez	 	$	250,000	 	 	$	8,750	 	 	 	25.00	%	 	 	2,405,906	 	 	 	6.00	%	 	$	241,250	 	 	 	25.00	%
	Danenberg	 	$	134,715	 	 	$	4,715	 	 	 	13.47	%	 	 	1,296,447	 	 	 	3.23	%	 	$	130,000	 	 	 	13.47	%
	Zuk Marble	 	$	198,618	 	 	$	6,952	 	 	 	19.86	%	 	 	1,911,425	 	 	 	4.77	%	 	$	191,666	 	 	 	19.86	%
	Meytal - Alonim ltd.	 	$	166,667	 	 	$	5,833	 	 	 	16.67	%	 	 	1,603,937	 	 	 	4.00	%	 	$	160,834	 	 	 	16.67	%
	 	 	$	1,000,000	 	 	$	35,000	 	 	 	100.00	%	 	 	9,623,621	 	 	 	24.00	%	 	$	965,000	 	 	 	100	%

 

     

     

    

 

Exhibit
A

 

Share
Exchange Agreement

 

See
attached.

 

     

     

    

 

Exhibit
B

 

Convertible
Loan Agreement

 

See
attached.

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