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FIRST AMENDING AGREEMENT

THIS AGREEMENT is dated the 28th day of May 2021.

BETWEEN:

ASTRO AEROSPACE LTD.,

a corporation existing under the laws of the State of Nevada, having a registered office at 320 W. Main Street, Lewisville, Texas, 75057 

(the “Purchaser”)

-and-

ROBINSON AIRCRAFT ULC,

an unlimited liability company existing under the laws of the Province of British Columbia, having a registered office at Suite 2300, Bentall 5, 550 Burrard Street, Vancouver BC V6C 2B5

(“Horizon”)

-and-

The shareholders of Horizon listed on page 5 hereof (which shareholders, are hereinafter collectively referred to as, the “Horizon Shareholders”, and individually as, a “Horizon Shareholder”)

WHEREAS the Purchaser, Horizon Aircraft Inc., being a predecessor corporation to Horizon, and the Horizon Shareholders are parties to a share exchange agreement made effective the 28th day of April, 2021 (the “Share Exchange Agreement”);

AND WHEREAS the parties wish to amend the Share Exchange Agreement in accordance with the terms set forth in herein.  

NOW THEREFORE the parties agree as follows:

1.

Defined Terms. 

In this Amending Agreement, unless something in the subject matter or context is inconsistent:

(a)

terms defined in the description of the parties or in the recitals have the respective meanings given to them in the description or recitals, as applicable; and

(b)

all other capitalized terms have the respective meanings given to them in the Share Exchange Agreement. 

2.

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Amendment to the Share Exchange Agreement

The Share Exchange Agreement shall be amended to:

(a)

Section 1.01(25) and 1.01(26) of the Share Exchange Agreement are hereby deleted in their entirety. 

(b)

Section 1.09 is hereby amended by deleting Schedule “D” - Lock-Up Agreement (Seaview Capital) and Schedule “G” – Escrow Agreement. 

(c)

Section 3.02 is hereby deleted in its entirety and replaced with the following: 

3.02

Post-Closing Payments

Subject to the terms and conditions of this Agreement, the Purchaser shall deliver to Horizon, in immediately available funds pursuant to the payment instructions set forth in Exhibit A attached to the First Amending Agreement among the parties hereto dated May 28, 2021, the aggregate amount of $1,125,000, of which (i) $375,000 shall be delivered to Horizon within five (5) Business Days following the Closing Date, and (ii) the remaining $750,000 (together with the $375,000 payment, the “Post-Closing Payments”) shall be delivered to Horizon within fifteen (15) Business Days following the Closing Date. 

(d)

Section 3.03 is hereby amended to delete “Seaview Capital shall enter into a lock-up agreement in the form attached as Schedule “D””. 

(e)

A new Section 5.06 is hereby inserted as follows: 

5.06

E. Brandon Robinson First Year Compensation

The Purchaser shall procure that 50% of the salary payable to E. Brandon Robinson during the first year following Closing (being US$137,500 of the US$275,000 total salary) shall be funded by Purchaser funds and not from the Post-Closing Payments or the US$375,000 loaned to Horizon prior to the Closing.

(f)

Schedule “D” - Lock-Up Agreement (Seaview Capital) is hereby deleted in its entirety. 

(g)

Schedule “E” - Lock-Up Agreement (Robinson Family Ventures Inc.) is hereby deleted in its entirety and replaced with Exhibit B attached hereto. 

(h)

Schedule “F” - Lock-Up Agreement (Remaining Horizon Shareholders) is hereby deleted in its entirety and replaced with Exhibit C attached hereto. 

(i)

Schedule “G” – Escrow Agreement is hereby deleted in its entirety. 

1.

Confirmation

From and following the date hereof, each reference in the Share Exchange Agreement to “this Agreement”, “herein”, “hereto” and “hereof” and each reference to the Share Exchange Agreement in any and all other agreements, documents and instruments delivered by any of the 

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parties or any other person, pursuant to the Share Exchange Agreement shall mean and be a reference to the Share Exchange Agreement as amended by this Agreement. Except as otherwise expressly amended hereby, the Share Exchange Agreement shall remain in full force and effect in accordance with its terms and this Agreement and the Share Exchange Agreement shall be read as one and the same instrument.

2.

No Waiver

The execution, delivery and effectiveness of this Agreement shall not, except as expressly provided herein, constitute a waiver of condition or provision (whether or not similar) of the Share Exchange Agreement nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

3.

Governing Law

This Agreement is governed by, interpreted and enforced in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable in Ontario.

4.

Counterparts

This Agreement may be executed by the parties in one or more counterparts, and may be executed and delivered by PDF, copy via email and all such counterparts shall be deemed to be an original but all of which together shall constitute one and the same instrument.

[Signature page follows]

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IN WITNESS WHEREOF this Amending Agreement has been executed and delivered by the parties hereto effective as of the date first written above.

			
	

	

ASTRO AEROSPACE LTD.

	

	By:

	/s/Bruce Bent

	

	

	Name: Bruce Bent

	

	

	Title: Chief Executive Officer

			
	

	ROBINSON AIRCRAFT ULC 

	

	By:

	/s/E. Brandon Robinson

	

	

	Name: E. Brandon Robinson

	

	

	Title: Director

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IN WITNESS WHEREOF this Amending Agreement has been executed and delivered by the parties hereto effective as of the date first written above.

					
	 /s/Robert Blair Robinson

	

	/s/Jason O’Neill

	Robert Blair Robinson

	

	Jason O’Neill

	 

					
	/s/Michael Lush

	

	/s/Stewart Lee

	Michael Lush

	

	Stewart Lee

	 

					
	/s/Kirk Creelman

	

	/s/Peter Ferreira

	Kirk Creelman

	

	Peter Ferreira

	 

						
	

	

	/s/Gurcharan Bhogal

	

	

	Gurcharan Bhogal

	

ROBINSON FAMILY VENTURES INC.

	 

 

	

ECOMM LINK LTD.

	 

	by

	/s/E. Brandon Robinson

	

	by

	/s/Stella Hiemstra

	

	Director, E. Brandon Robinson

	

	

	President, Stella Hiemstra

	 

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EXHIBIT A

Horizon Payment Information

BANK:

TD CANADA TRUST 

381 KING STREET WEST KITCHENER, ONTARIO 

CANADA N2G 1B8

BENEFICIARY:

GOWLING WLG (CANADA) LLP TRUST ACCOUNT 

50 QUEEN ST N, SUITE 1020 

KITCHENER, ONTARIO 

CANADA N2H 6P4

In trust 

BANK ID:

004

TRANSIT #:

27522

ACCOUNT # (CAD)

0518007

SWIFT CODE:

TDOMCATTTOR

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EXHIBIT B

Lock-Up Agreement (Robinson Family Ventures Inc.)

(See attached)

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EXHIBIT C

Lock-Up Agreement (Remaining Horizon Shareholders)

(See attached)

8Microsoft Word - 46248624_1

LOCK-UP AGREEMENT

May 28, 2021

				
	TO:

	ASTRO AEROSPACE LTD.  

320 W. Main Street

Lewisville, TX 75057

	

	

RE:

Lock-Up of Securities Acquired pursuant to Share Exchange Agreement

1.

Reference is made to the share exchange agreement dated April 28, 2021 entered into by and among Astro Aerospace Ltd. (“Astro”), Horizon Aircraft Inc. (“Horizon”), and the other parties thereto, as first amended May 27, 2021, and as may be further amended from time to time (the “Share Exchange Agreement”). All capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the Share Exchange Agreement.

2.

As used herein, “Subject Securities” means, collectively, (i) the Consideration Shares, (ii) any security received in connection with a stock split or upon payment of any stock dividend paid on any of the Consideration Shares, and (iii) any security issued in exchange or replacement for such securities, or any part thereof, including, without limitation, as provided in connection with any merger, amalgamation, plan of arrangement, recapitalization, corporate reorganization or similar proceeding.  

3.

In consideration of the benefit that the transaction contemplated by the Share Exchange Agreement (collectively, the “Transaction”) will confer upon the undersigned (the “Holder”), and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Holder, the Holder hereby agrees, acknowledges, and covenants that during the period commencing on the Closing Date (being, for the avoidance of doubt, May 28, 2021) (such date, the “Effective Date”) and ending on the date which is twenty four months (24) months thereafter (such period, the “Lock-Up Period”), the Holder shall not, directly or indirectly, offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, transfer, assign, lend, swap or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with (or agree to publicly announce any intention to do any of the foregoing), whether through the facilities of a stock exchange, by private placement, or otherwise, any of the Subject Securities, unless (i) the Holder first obtains the prior written consent of Astro, or (ii) pursuant to a transfer to an affiliate of the undersigned (subject to customary conditions) upon death or for estate planning purposes or for tax purposes including a Registered Retirement Savings Plan or Tax Free Savings Account, provided however that, in the event of any such transfer, the Subject Securities so transferred shall remain subject to the restrictions herein for the remainder of the Lock-Up Period. 

4.

Notwithstanding the foregoing and anything to the contrary herein:

(a)

The Holder shall be entitled to pledge the Subject Securities as collateral for a secured loan.

(b)

Section 3 above shall not apply to (a) transfers to affiliated entities of the Holder, any family members of the Holder, or any company, trust or other entity owned by or maintained for the benefit of the Holder, (b) transfers occurring by operation of law, provided, in each case, that any such transferee shall first execute a lock-up agreement in substantially the form hereof covering the remainder of the Lock-Up Period, (c) transfers made pursuant to a bona fide take-over bid or similar transaction made to all holders of common shares of Astro, including without limitation, a merger, arrangement or amalgamation, involving a change of control of Astro, and provided that in the event the take-over or acquisition transaction is not completed, the Subject Securities shall remain subject to the restrictions contained in this lock-up agreement.

5.

Notwithstanding the restrictions on transfers of Subject Securities pursuant to this lock-up agreement, the Holder may undertake a transfer (sale or any other transactions related to the Subject Securities) of Subject Securities based on the following release schedule:

			
	Release Date if the Post-Closing Payments have been completed within 15 Business Days of Closing

	Release Date if the Post-Closing Payments have not been completed within 15 Business Days of Closing

	Percentage of Subject Securities to be Released

	6 month following the Effective Date

	6 month following the Effective Date

	49.20% (E. Brian R. allocation)

	12 month following the Effective Date

	8 month following the Effective Date

	25.40% (50% of E. Brandon R. allocation)

	24 month following the Effective Date

	20 month following the Effective Date

	25.40% (50% of E. Brandon R. allocation)

6.

Notwithstanding Section 5 above and any other restrictions on transfers of Subject Securities pursuant to this lock-up agreement, during the 6 month period following the Effective Date, the Holder may undertake a transfer (sale or any other transactions related to the Subject Securities) of up to 7,500 Subject Securities (as adjusted for stock splits, recombinations and similar transactions) per calendar week. 

7.

The Holder represents and warrants that, upon the Consideration Shares being duly issued and validly delivered to the Holder in accordance with the Share Exchange Agreement, it shall have good and marketable title to the Subject Securities. Further, the Holder agrees and acknowledges that, (i) in proceeding towards consummation of the Transaction, Astro has relied upon the Holder entering into this lock-up agreement, upon the terms and conditions set forth herein, and (ii) this lock-up agreement is irrevocable and shall be binding upon the Holder and its legal representatives, successors, and permitted assigns, and shall enure to the benefit of Astro and its legal representatives, successors and assigns.

8.

The Holder hereby agrees and consents to the entry of stop transfer restrictions with the registrar and transfer agent of Astro, or the equivalent, against the transfer of the Subject Securities in compliance with this lock-up agreement.

9.

This lock-up agreement will be governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein and may be executed by facsimile or PDF signature and as so executed shall constitute an original.

[Remainder of page intentionally left blank. Signature page follows.]

			
	

ROBINSON FAMILY VENTURES

	

	

	Name of Holder

/s/E. Brandon Robinson

	

	

	

	

	

	Signature of Person Signing

E. Brandon Robinson, authorized signatory

	

	

	Title of Person Signing

	

	

Number of Consideration Shares issuable under the Share Exchange Agreement and subject to this lock-up agreement: 

·

2,534,050 Payment Shares

·

A number of Earn-Out Shares to be determined in accordance with the Share Exchange Agreement

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