SEC Contract Filing

Filing Date: 2022-03-17

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>rcat0317form10qexh10_1.htm
<DESCRIPTION>EXHIBIT 10.1
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<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.1</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: -0.1pt"><B><U>PROMISSORY NOTE</U></B></P>

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 <TD STYLE="width: 50%">US $510,323</TD>
 <TD STYLE="text-align: right; width: 50%">March 11, 2022</TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -0.1pt">For good and valuable consideration,
<B>Allan Evans</B>, (&ldquo;<U>Maker</U>&rdquo;), hereby makes and delivers this Promissory Note (this &ldquo;<U>Note</U>&rdquo;) in favor
of <B>Red Cat Holdings, Inc.</B>, a Nevada corporation (&ldquo;<U>Holder</U>&rdquo;), and hereby agree as follows:</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><B>1.</B></TD><TD STYLE="text-align: justify"><B><U>Principal Obligation and Interest</U>.</B> For value received<B>,</B> Maker promises to pay to Holder
at such place as Holder may designate in writing, in currently available funds of the United States, the principal sum of Five Hundred
Ten Thousand Three Hundred Twenty-three Dollars ($510,323). Makers&rsquo; obligation under this Note shall accrue interest from the date
hereof until paid in full at the rate of six percent (6%) per annum.</TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><B>2.</B></TD><TD STYLE="text-align: justify"><B><U>Payment Terms; Transfer of Maker Shares in the Holder as Payment</U>.</B> Maker agrees to remit
payment in full of all principal and interest due hereunder to Holder on or before December 31, 2022 (the &ldquo;<U>Maturity Date</U>&rdquo;).
Maker shall have the right to prepay all or any part of the principal under this Note without penalty. In connection with Maker&rsquo;s
employment by the Holder as an executive, the Maker has been granted certain awards of common stock in the Holder, some of which have
vested and others which are unvested as of the date of this Note. Certain shares of common stock of the Holder owned or to-be-owned by
the Maker shall be applied to reduce the balance owing under this Note as follows:</TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">a.</TD><TD STYLE="text-align: justify">Effective as of the date of this Note, 104,166 shares of common stock of the Holder which were scheduled
to be issued to the Maker, will be retained by the Holder. The fair value of such shares in the amount of $280,832 shall be deemed applied
and credited against the balance of this Note in favor of the Maker.</TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">b.</TD><TD STYLE="text-align: justify">The Maker owns an additional 110,983 shares of common stock in the Holder which are presently held at
the Transfer Agent. Such shares, as well as the shares described in section 2.c below, shall not be transferred, sold, assigned, or encumbered
by the Maker unless or until all principal and interest due and owing under this Note is paid in full.</TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">c.</TD><TD STYLE="text-align: justify">As part of his compensation as an executive employee, Maker is entitled to receive 20,833 shares of common
stock in the Holder each month during calendar year 2022. Holder shall retain 3,000 of these shares each month and, in return, the fair
value of such shares as defined under U.S. Generally Accepted Accounting Principles (the &ldquo;<U>Fair Value</U>&rdquo;) shall be deemed
applied and credited against the balance of this Note in favor of the Maker.</TD></TR></TABLE>

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