SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT PURSUANT TO

SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): October 17, 2018

 

AIRBORNE WIRELESS NETWORK

(Exact name of registrant as specified in charter)

 

Nevada

 

333-179079

 

27-4453740

(State or Other Jurisdiction

 

(Commission

 

(IRS Employer

of Incorporation)

 

File Number)

 

Identification No.)

 

4115 Guardian Street, Suite C, Simi Valley, California 93063

(Address of principal executive offices and zip code)

 

(805) 583-4302

(registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act (17 CFR 240.12b-2)

 

¨ Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

 

 
 
 
 

Item 1.01. Entry into a Material Definitive Agreement.

 

Exercise Agreement with Sabby

 

On October 17, 2018, Airborne Wireless Network (the “ Company ”) and Sabby Volatility Warrant Master Fund, Ltd. (“ Sabby ”) entered into that certain Exercise Agreement (the “ Sabby Exercise Agreement ”) pursuant to which Sabby, which holds certain shares of the Company’s Series A Convertible Preferred Stock (“ Preferred Stock ”), Series 1 Warrants to purchase shares of the Company’s Preferred Stock (the “ Series 1 Warrants ”), Series 2 Warrants to purchase shares of the Company’s Preferred Stock (the “ Series 2 Warrants ”) and Series 3 Warrants to purchase shares of the Company’s Preferred Stock (the “ Series 3 Warrants ,” together with the Series 1 Warrants and the Series 2 Warrants, the “ Warrants ”), agreed that it will exercise a minimum of $600,000 of its Warrants on or immediately following the effective date of the Sabby Exercise Agreement (the “ Effective Date ”).

 

In connection with and pursuant to the terms of the Sabby Exercise Agreement, Sabby also agreed to enter into a lock-up agreement with the Company under which it agreed to refrain from selling, offering for sale or otherwise transferring any shares of Preferred Stock, shares of the Company’s common stock, Warrants or other securities of the Company for sixty days, except that the transfer restrictions will not apply:

 

 

(i) during the thirty-day period beginning on the date of Sabby’s exercise of its Warrants; and

 

(ii) during the subsequent thirty-day period after the first thirty days if Ionic Ventures LLC (“ Ionic ”), which also holds Warrants and entered into an agreement with the Company, does not elect to exercise on November 16, 2018, and Sabby instead exercises an additional $600,000 of Warrants.

 

The Company and Sabby each also agreed to use reasonable best efforts to take all required action to amend the terms of the Series 1 Warrants and the Series 2 Warrants to extend the expiration date of each to May 29, 2019 from November 29, 2018. The Sabby Exercise Agreement was also conditioned upon each other holder of Warrants signing lock-up agreements similar to the version signed by Sabby.

 

There is no material relationship between the Company or its affiliates and Sabby, other than in respect of the Sabby Exercise Agreement, the lock-up agreement between the Company and Sabby described below and Sabby’s ownership of Warrants and Preferred Stock. This description of the Sabby Exercise Agreement does not purport to be complete and is qualified in its entirety by reference to the terms of the Sabby Exercise Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by this reference.

 

Exercise Agreement with Ionic Ventures

 

On October 17, 2018, the Company and Ionic entered into that certain Exercise Agreement (the “ Ionic Exercise Agreement ”) pursuant to which the Company and Ionic, which holds certain shares of Preferred Stock and Warrants, agreed that Ionic will have the right to exercise a minimum of $600,000 of its Warrants on November 16, 2018. In connection with and pursuant to the terms of the Ionic Exercise Agreement, Ionic also agreed to enter into a lock-up agreement with the Company under which it agreed to refrain from selling, offering for sale or otherwise transferring any shares of Preferred Stock, shares of the Company’s common stock, Warrants or other securities of the Company for sixty days, except that the transfer restrictions will not apply for the second 30 days of the lock-up agreement if Ionic elects to exercise $600,000 of the Warrants under the Ionic Exercise Agreement on November 16, 2018.

 

The Company and Ionic each also agreed to use reasonable best efforts to take all required action to amend the terms of the Series 1 Warrants and the Series 2 Warrants to extend the expiration date of each to May 29, 2019 from November 29, 2018. The Ionic Exercise Agreement was also conditioned upon each other holder of Warrants signing lock-up agreements similar to the version signed by Ionic.

 

There is no material relationship between the Company or its affiliates and Ionic, other than in respect of the Ionic Exercise Agreement, the lock-up agreement between the Company and Ionic described below and Ionic’s ownership of Warrants and Preferred Stock. This description of the Ionic Exercise Agreement does not purport to be complete and is qualified in its entirety by reference to the terms of the Ionic Exercise Agreement, which is attached hereto as Exhibit 10.2 and incorporated herein by this reference.

 

 
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Lock-up Agreements with Warrant Holders

 

On October 17, 2018, the Company entered into a lock-up agreement with each of Sabby, Ionic, Anson Funds Management LP (“ Anson ”) and Hudson Bay Master Fund Ltd. (“ Hudson Bay ”). Under the lock-up agreements, each of Sabby, Ionic, Anson and Hudson Bay agreed with the Company that for a period of 60 days, such party would to refrain from selling, offering for sale or otherwise transferring any shares of Preferred Stock, shares of the Company’s common stock, Warrants or other securities of the Company. As described above, the lock-up agreements provide that Sabby is permitted to transfer Company securities during (i) the 30-day period following its initial exercise of Warrants under the Sabby Exercise Agreement and (ii) during the second 30-day period of the term of the lock-up agreement, in the event that Ionic does not exercise $600,000 of its Warrants on the 30 th day following the effective date of the Ionic Exercise Agreement and Sabby exercises an additional $600,000 of its Warrants on the following business day. However, if Ionic does exercise $600,000 of its Warrants on the 30 th day following effectiveness, then it, and not Sabby, will be released from the terms of the lock-up for the second 30-day period of the term of the lock-up agreement. In the event that neither Ionic nor Sabby elect to exercise at least $600,000 of the Warrants after the first 30 days of the term of the lock-up agreement, then the lock-up will expire as to each of Ionic, Sabby, Anson and Hudson Bay.

 

Each lock-up agreement also contains also contains “most favored nation” provisions that provide that if the Company offers terms, or any waivers, modifications or amendments, to any of the other signatories to the four lock-up agreements, then it must offer such terms, waivers, modifications or amendments to the signatory of the non-altered lock-up agreement. Each lock-up agreement also contains a release and waiver of any and all claims the Company may have against the counterparty to such lock-up agreement, other than those arising primarily as a result of any material violation of law.

 

There is no material relationship between the Company or its affiliates and Anson or Hudson Bay, other than in respect of the the lock-up agreement between the Company and such parties described above and such parties’ ownership of Warrants and Preferred Stock. This description of the lock-up agreements does not purport to be complete and is qualified in its entirety by reference to the terms of lock-up agreements, which are attached hereto as Exhibits 10.3, 10.4, 10.5 and 10.6 and are incorporated herein by this reference.

 

Lock-up Agreement with YA II PN, Ltd.

 

On October 17, 2018, the Company entered into a lock-up agreement (the “ Yorkville Lock-up Agreement ” with YA II PN, Ltd., an affiliate of Yorkville Advisors Global, LP and a Cayman Islands exempt company (“ Yorkville ”), which holds that certain previously disclosed Convertible Debenture, issued by the Company on April 9, 2018 (the “ Debenture ”), a warrant and a separate convertible note previously issued by the Company. Under the Yorkville Lock-up Agreement, Yorkville agreed with the Company that for a period of 60 days it would to refrain from selling, offering for sale or otherwise transferring any shares of the Company’s common stock, warrants or other securities of the Company. As consideration for Yorkville’s agreement to refrain from transferring any Company securities, the Company agreed to (a) make a partial redemption payment of $50,000 under the Debenture on the effective date of the Yorkville Lock-Up Agreement or the immediately following business day and (b) make a partial redemption payment of and additional $50,000 under the Debenture on the first business day that is thirty (30) days after the effective date of the Yorkville Lock-up Agreement. Yorkville waived the requirement that the payments be preceded by advance notice, that the trading price of the Common Stock be greater than a stated fixed conversion price in order for a redemption to be made and that the Company pay a redemption premium. The Yorkville Lock-Up Agreement also contains a release and waiver of any and all claims the Company may have against the counterparty to such lock-up agreement, other than those arising primarily as a result of any material violation of law.

 

There is no material relationship between the Company or its affiliates and Yorkville other than in respect of the Yorkville Lock-up Agreement and the previously disclosed transaction pursuant to which Yorkville acquired the Debenture and the warrant to purchase Common Stock it holds and its ownership of other Company securities. This description of the Yorkville Lock-Up Agreement does not purport to be complete and is qualified in its entirety by reference to the terms of Yorkville Lock-Up Agreement, which is attached hereto as Exhibit 10.7 and incorporated herein by this reference.

 

Item 3.03. Material Modification to Rights of Security Holders.

 

On October 17, 2018, the Company and the holders of the Series 1 Warrants and the Series 2 Warrants, each originally issued on May 29, 2018 pursuant to (i) the Company’s previously disclosed Underwriting Agreement, dated as of May 23, 2018, between the Company and Maxim Group LLC and (ii) the Company’s Registration Statement on Form S-1 (File No.: 333-220295) (the “ Registration Statement ”), have agreed to extend the expiration date of the Series 1 Warrants from November 29, 2018 to May 29, 2019 and to extend the expiration date of the Series 2 Warrants from November 29, 2018 to May 29, 2019. In connection therewith, the holders of the Series 1 Warrants and the holders of the Series 2 Warrants have also agreed that they will not exercise any part of the Series 1 Warrants or the Series 2 Warrants for cash until a post-effective amendment to the Registration Statement containing a current prospectus under Section 10(a)(3) of the Securities Act of 1933, as amended, that reflects the amended expiration date of the Series 1 Warrants and the Series 2 Warrants is declared effective by the Securities and Exchange Commission.

 

 
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Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.

 

Exhibit Description

10.1

 

Exercise Agreement, dated as of October 17, 2018, between Airborne Wireless Network and Sabby Volatility Warrant Master Fund, Ltd.

10.2

 

Exercise Agreement, dated as of October 17, 2018, between Airborne Wireless Network and Ionic Ventures LLC

10.3

 

Lock-up Agreement, dated as of October 17, 2018, between Airborne Wireless Network and Sabby Volatility Warrant Master Fund, Ltd.

10.4

 

Lock-up Agreement, dated as of October 17, 2018, between Airborne Wireless Network and Ionic Ventures LLC

10.5

 

Lock-up Agreement, dated as of October 17, 2018, between Airborne Wireless Network and Anson Funds Management LP

10.6

 

Lock-up Agreement, dated as of October 17, 2018, between Airborne Wireless Network and Hudson Bay Master Fund Ltd.

10.7

 

Lock-up Agreement, dated as of October 17, 2018, between Airborne Wireless Network and YA II PN, Ltd.

 

 
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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

AIRBORNE WIRELESS NETWORK

 

Date: October 17, 2018

 

/s/ J. Edward Daniels

 

J. Edward Daniels

 

President, Treasurer and Secretary

 

 

5

 

EXHIBIT 10.1

 

WARRANT EXERCISE AGREEMENT

 

THIS WARRANT EXERCISE AGREEMENT (the “ Agreement ”) is made as of October 17, 2018 (the “ Effective Date ”) by and between AIRBORNE WIRELESS NETWORK (the “ Company ”) and Sabby Volatility Warrant Master Fund, Ltd. (the “ Warrant Holder ”). Each of the Company and the Warrant Holder may be referred to herein individually as a “ Party ,” and collectively as the “ Parties .”

 

WHEREAS , the Company issued certain shares of its Series A Convertible Preferred Stock (“ Preferred Stock ”), Series 1 Warrants to purchase shares of its Preferred Stock, which originally expired on August 29, 2018, extended to November 29, 2018 (the “ Series 1 Warrants ”), Series 2 Warrants to purchase shares of its Preferred Stock, which expire on November 29, 2018 (the “ Series 2 Warrants ”) and Series 3 Warrants to purchase shares of its Preferred Stock, which expire on May 29, 2019 (the “ Series 3 Warrants ,” together with the Series 1 Warrants and the Series 2 Warrants, the “ Warrants ” and collectively with the Preferred Stock and the Warrants, the “ Securities ”) in a public offering; and

 

WHEREAS , the Company and the Warrant Holder each agree to the exercise of Warrants hereunder subject to certain conditions set forth hereunder;

 

NOW THERFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency thereof is mutually acknowledged, the Parties agree as follows:

 

1. Exercise of Warrants . On the Effective Date or the first business day immediately thereafter, the Warrant Holder shall exercise a minimum of $600,000 of its Series 3 Warrants, provided, however , as a condition to the Warrant Holder’s obligations hereunder, the Company shall have received duly executed lock-up agreements from all other holders of Securities, substantially in the form of the Lock-Up Agreement (as defined below). The execution and delivery of such duly executed lock-up agreements from each holder of Securities is a condition precedent to the effectiveness of this Agreement, and a failure by the other holders of the Warrants to deliver such lock-up agreements will render this Agreement null and void ab initio and of no legal force and effect.

 

2. Lock-Up Agreements . Concurrently with the execution of this Agreement by all of the Parties, the Warrant Holder shall execute and deliver a Lock-Up Agreement, in substantially the form attached hereto as Exhibit A hereto (the “ Lock-up Agreement ”), to the Company, pursuant to which the Warrant Holder agrees not to sell or transfer its Warrants, shares of Preferred Stock or shares of common stock of the Company (“ Common Stock ”) during the 60-day period commencing on the date hereof, provided , however , that:

 

 

(a) during the 30-day period commencing on the date of the Warrant Holder’s exercise under Section 1 , the Warrant Holder will be permitted to freely transfer any Warrants, shares of Preferred Stock and shares of Common Stock; and

 

 

 

 

(b) if (x) Ionic Ventures LLC does not exercise at least $600,000 of its Warrants by the end of November 16, 2018; and (y) the Warrant Holder notifies the Company by 5:00 p.m. on November 19, 2018, that it intends to exercise at least $600,000 of its Warrants and does so on the immediately following business day, then commencing on such date until the expiration of the Lock-Up Agreement, the Warrant Holder will be permitted to freely transfer any Warrants, shares of Preferred Stock and shares of Common Stock.

 

3. Amendment to the Series 1 and Series 2 Warrants . The Company and the Warrant Holder hereby agree to amend the Series 1 Warrants and the Series 2 Warrants to extend the expiration dates thereof to May 29, 2019. The Company shall thereafter use commercially reasonable efforts to file and seek a declaration of effectiveness of a post-effective amendment to the Company’s registration statement on Form S-1 (Reg. No. 333-220295) so that the amended Series 1 and Series 2 Warrants can be exercised and resold pursuant thereto.

 

4. Complete Agreement and Modifications . This Agreement represents the entire agreement between the Parties with respect to the subject matter set forth herein, and there are no understandings or agreements with respect thereto except as specifically stated in this Agreement. This Agreement supersedes the terms of any prior agreements between or among the Parties with respect to the subject set forth herein. The terms of this Agreement may not be modified except pursuant to a document signed by the Parties, and no right of any party may be waived except pursuant to a document signed by the Party expressly waiving that right.

 

 
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5. Binding Agreement . No Party may assign this Agreement or its rights and obligations hereunder without the prior written consent of the other Parties. This Agreement shall be binding upon, and inure to the benefit of, the Parties and their respective successors and permitted assigns. By signing below, each Party acknowledges that it has read this Agreement, has had an opportunity to consult with its own independent counsel, and by signing below, voluntarily accepts the terms of this Agreement.

 

6. Applicable Law . This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts executed in and to be performed in that State.

 

7. WAIVER OF JURY TRIAL . EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8 .

 

8. Severability . If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

9. Counterparts . This Agreement may be executed and delivered (including by facsimile transmission) in one or more counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.

 

10. Authority . By signing below, each signatory represents and warrants that such signatory has the requisite authority to enter into this Agreement.

 

11. Representation as to Other Parties and Report of Form 8-K . The Company shall file a Current Report on Form 8-K on or before 9:30 am ET on the trading day immediately following the date hereof disclosing all material terms of this Agreement and the material terms of any of the Lock-Up Agreements and understandings and agreements with the other parties (written or otherwise) to the Lock-Ups that were entered into in connection therewith.

 

[Signature Page Follows]

 

 
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first set forth above.

 

 

SABBY VOLATILITY WARRANT MASTER FUND, LTD.

 

 

     

By:

/s/ Robert Grundstein

 

 

 

Name:

Robert Grundstein  

 

 

 

Its:

Chief Operating Officer of Investment Manager  
     

AIRBORNE WIRELESS NETWORK

 

 

 

By:

/s/ Michael J. Warren 

 

 

 

 

Name:

Michael J. Warren

 

 

 

 

Its:

Chief Executive Officer

 

 

 

[Signature Page to Warrant Exercise Agreement]

 

 
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Exhibit A

 

Form of Lock-Up Agreement

 

 

4

 

EXHIBIT 10.2

 

WARRANT EXERCISE AGREEMENT

 

THIS WARRANT EXERCISE AGREEMENT (the “ Agreement ”) is made as of October 17, 2018 (the “ Effective Date ”) by and between AIRBORNE WIRELESS NETWORK (the “ Company ”) and IONIC VENTURES LLC (the “ Warrant Holder ”). Each of the Company and the Warrant Holder may be referred to herein individually as a “ Party ,” and collectively as the “ Parties .”

 

WHEREAS , the Company issued certain shares of its Series A Convertible Preferred Stock (“ Preferred Stock ”), Series 1 Warrants to purchase shares of its Preferred Stock, which originally expired on August 29, 2018, extended to November 29, 2018 (the “ Series 1 Warrants ”), Series 2 Warrants to purchase shares of its Preferred Stock, which expire on November 29, 2018 (the “ Series 2 Warrants ”) and Series 3 Warrants to purchase shares of its Preferred Stock, which expire on May 29, 2019 (the “ Series 3 Warrants ,” together with the Series 1 Warrants and the Series 2 Warrants, the “ Warrants ” and collectively with the Preferred Stock and the Warrants, the “ Securities ”) in a public offering; and

 

WHEREAS , the Company and the Warrant Holder each agree to the exercise of Warrants hereunder subject to certain conditions set forth hereunder;

 

NOW THERFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency thereof is mutually acknowledged, the Parties agree as follows:

 

1. Exercise of Warrants . By 5:00 p.m. Eastern Time on November 16, 2018, the Warrant Holder, at its sole option, may elect to exercise a minimum of $600,000 of its Series 3 Warrants, provided, however , as a condition to the Warrant Holder’s obligations hereunder, the Company shall have received duly executed lock-up agreements from all other holders of Securities, substantially in the form of the Lock-Up Agreement (as defined below); provided , further , that the rights granted herein shall be in addition to, and not in limitation of, any rights to exercise the Warrants granted by the terms thereof. The execution and delivery of such duly executed lock-up agreements from each holder of Securities is a condition precedent to the effectiveness of this Agreement, and a failure by the other holders of the Warrants to deliver such lock-up agreements will render this Agreement null and void ab initio and of no legal force and effect.

 

2. Lock-Up Agreements . Concurrently with the execution of this Agreement by all of the Parties, the Warrant Holder shall execute and deliver a Lock-Up Agreement, in substantially the form attached hereto as Exhibit A hereto (the “ Lock-up Agreement ”), to the Company, pursuant to which the Warrant Holder agrees not to sell or transfer its Warrants, shares of Preferred Stock or shares of common stock of the Company (“ Common Stock ”) during the 60-day period commencing on the date hereof, provided , however , that during the 30-day period commencing on the date of the Warrant Holder’s exercise under Section 1 , if the Warrant Holder so elects to exercise, the Warrant Holder will be permitted to freely transfer or sell any Warrants, shares of Preferred Stock and shares of Common Stock.

 

3. Amendment to the Series 1 and Series 2 Warrants . The Company and the Warrant Holder hereby agree to amend the Series 1 Warrants and the Series 2 Warrants to extend the expiration dates thereof to May 29, 2019. The Company shall thereafter use commercially reasonable efforts to file and seek a declaration of effectiveness of a post-effective amendment to the Company’s registration statement on Form S-1 (Reg. No. 333-220295) so that the amended Series 1 and Series 2 Warrants can be exercised and resold pursuant thereto.

 

4. Complete Agreement and Modifications . This Agreement represents the entire agreement between the Parties with respect to the subject matter set forth herein, and there are no understandings or agreements with respect thereto except as specifically stated in this Agreement. This Agreement supersedes the terms of any prior agreements between or among the Parties with respect to the subject set forth herein. The terms of this Agreement may not be modified except pursuant to a document signed by the Parties, and no right of any party may be waived except pursuant to a document signed by the Party expressly waiving that right.

 

5. Binding Agreement . No Party may assign this Agreement or its rights and obligations hereunder without the prior written consent of the other Parties. This Agreement shall be binding upon, and inure to the benefit of, the Parties and their respective successors and permitted assigns. By signing below, each Party acknowledges that it has read this Agreement, has had an opportunity to consult with its own independent counsel, and by signing below, voluntarily accepts the terms of this Agreement.

 

 
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6. Applicable Law . This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts executed in and to be performed in that State.

 

7. WAIVER OF JURY TRIAL . EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8 .

 

8. Severability . If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

9. Counterparts . This Agreement may be executed and delivered (including by facsimile transmission) in one or more counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.

 

10. Authority . By signing below, each signatory represents and warrants that such signatory has the requisite authority to enter into this Agreement.

 

[Signature Page Follows]

 

 
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first set forth above.

 

 

IONIC VENTURES LLC

 

 

     
By: /s/ Keith Coulston

 

 

 

Name:

Keith Coulston  

 

 

 

Its: Partner  

 

 

 

AIRBORNE WIRELESS NETWORK

 

 

 

 

By:

/s/ Michael J. Warren 

 

 

 

 

Name: Michael J. Warren  

 

 

 

Its:

Chief Executive Officer

 

  

 

[Signature Page to Warrant Exercise Agreement]

 

 
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Exhibit A

 

Form of Lock-Up Agreement

 

 

4

 

EXHIBIT 10.3

 

LOCK-UP AGREEMENT

 

October 17, 2018

 

Airborne Wireless Network

4115 Guardian Street, Suite C

Simi Valley, California 93063

 

Re: Exercises of Warrants for Airborne Wireless Network Securities

 

Ladies and Gentlemen:

 

The undersigned is a holder of shares of Series A Convertible Preferred Stock (“ Preferred Stock ”), Series 1 Warrants to purchase shares of its Preferred Stock, which originally expired on August 29, 2018, extended to November 29, 2018 (the “ Series 1 Warrants ”), Series 2 Warrants to purchase shares of its Preferred Stock, which expire on November 29, 2018 (the “ Series 2 Warrants ”) and Series 3 Warrants to purchase shares of its Preferred Stock, which expire on May 29, 2019 (the “ Series 3 Warrants ,” together with the Series 1 Warrants and the Series 2 Warrants, the “ Warrants ”, and together with the Preferred Stock, the “ Securities ”) and shares of common stock, par value $0.001 per share (“ Common Stock ”), of Airborne Wireless Network (the “ Company ”). The Company has entered into that certain Exercise Agreement (the “ Exercise Agreement ”), dated on or about the date hereof, by and between the Company and the undersigned for the purposes of enhancing the predictability of the Company’s funding by agreeing that certain of the undersigned’s Warrants will be exercised over a more predictable timeframe. Concurrently herewith, the Company is entering into (i) agreements with holders of Securities other than the undersigned (collectively, the “ Other Holders ”) substantially in the form of this Lock-Up Agreement, mutatis mutandis (collectively, the “ Other Lock-Up Agreements ”) and (ii) an exercise agreement with a holder of Securities other than the undersigned (the “ Other Funding Holder ”) providing that certain Warrants of the Other Funding Holder will be exercised over a more predictable timeframe. This agreement (this “ Lock-Up Agreement ”) shall only be effective as of the later of (a) the time of execution and delivery by the Company and each Other Holder of an Other Lock-Up Agreement and (b) the time of execution and delivery by the Company and the undersigned of this Lock-Up Agreement (such later date, the “ Effective Date ”).

 

In consideration of the Company’s agreement to enter into the Exercise Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, effective as of the Effective Date, the undersigned hereby agrees, solely for the benefit of the Company that, without the prior written consent of the Company, the undersigned will not, during the period specified in the following paragraph (the “ Lock-Up Period ”), directly or indirectly, unless otherwise provided herein, (a) offer, sell, agree to offer or sell, solicit offers to purchase, grant any call option or purchase any put option with respect to, pledge, encumber, assign, borrow or otherwise dispose of or transfer (each a “ Transfer ”) any Relevant Security (as defined below) or otherwise publicly disclose the intention to do so, or (b) establish or increase any “put equivalent position” or liquidate or decrease any “call equivalent position” (in each case within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”) and the rules and regulations thereunder) with respect to any Relevant Security or otherwise enter into any swap, derivative or other transaction or arrangement that Transfers to another, in whole or in part, any economic consequence of ownership of a Relevant Security, whether or not such transaction is to be settled by the delivery of Relevant Securities, other securities, cash or other consideration, or otherwise publicly disclose the intention to do so. As used herein, the term “ Relevant Security ” means any Security, share of Common Stock, warrant to purchase any other security of the Company or any other entity that is convertible into, or exercisable or exchangeable for, shares of Preferred Stock, shares of Common Stock or any other equity security of the Company, in each case owned beneficially or otherwise by the undersigned on the date hereof or acquired by the undersigned during the Lock-Up Period. Notwithstanding the foregoing, any Relevant Security may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by such Relevant Security and such pledge of such Relevant Security shall not be deemed to be prohibited by this Lock-Up Agreement.

 

The Lock-Up Period will commence on the Effective Date and continue and include the date that is sixty (60) days after the date of this Lock-Up Agreement; provided , however , that if after thirty (30) days, neither the undersigned nor the Other Funding Holder agrees to exercise additional Warrants, then the Lock-Up Period shall terminate at the beginning of the thirty first (31 st ) day following the Effective Date.

 

 
1
 
 

 

In furtherance of the undersigned’s obligations hereunder, the undersigned hereby authorizes the Company during the Lock-Up Period to cause any transfer agent for the Relevant Securities to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, Relevant Securities for which the undersigned is the record owner and the transfer of which would be a violation of this Lock-Up Agreement and, in the case of Relevant Securities for which the undersigned is the beneficial but not the record owner, agrees that during the Lock-Up Period it will cause the record owner to cause the relevant transfer agent to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, such Relevant Securities to the extent such transfer would be a violation of this Lock-Up Agreement.

 

Notwithstanding the foregoing, the undersigned may transfer the undersigned’s Relevant Securities:

 

 

(i) as a bona fide gift or gifts,

 

 

 

 

(ii) if the undersigned is a corporation, partnership, limited liability company, trust or other business entity (1) to another corporation, partnership, limited liability company, trust or other business entity that is a direct or indirect affiliate (as defined in Rule 405 under the Securities Act of 1933, as amended) of the undersigned, (2) to limited partners, limited liability company members or stockholders of the undersigned, or (3) in connection with a sale, merger or transfer of all or substantially all of the assets of the undersigned or any other change of control of the undersigned, not undertaken for the purpose of avoiding the restrictions imposed by this Lock-Up Agreement, or

 

 

 

 

(iii) during any thirty-day period commencing on the date that the undersigned (a) is obligated or given the option to exercise a portion of its Warrants under the Exercise Agreement and (b) exercises such Warrants for an aggregate exercise of price of not less than $600,000;

 

provided, in the case of clauses (i) and (ii), that (A) such transfer shall not involve a disposition for value, (B) the transferee agrees in writing with the Company to be bound by the terms of this Lock-Up Agreement, and (C) such transfer would not require any filing under Section 16(a) of the Exchange Act and no such filing is voluntarily made.

 

The Company shall, on or before 9:30 a.m., New York City time, on the first business day after the date hereof, issue a Current Report on Form 8-K attaching the form of this Lock-Up Agreement as an exhibit thereto (including all attachments, the “ 8-K Filing ”) disclosing all material terms of the transactions contemplated hereby and pursuant to the Exercise Agreement and the Other Lock-Up Agreements. From and after the filing of the 8-K Filing, the undersigned shall not be in possession of any material, nonpublic information received from the Company or any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agents, that is not disclosed in the 8-K Filing. In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and the older or any of its affiliates, on the other hand, shall terminate and be of no further force or effect. The Company shall not, and shall cause its officers, directors, employees, affiliates and agents, not to, provide the undersigned with any material, nonpublic information regarding the Company from and after the date hereof without the express written consent of the undersigned. To the extent that the Company delivers any material, non-public information to the undersigned without the undersigned’s express prior written consent, the Company hereby covenants and agrees that the undersigned shall not have any duty of confidentiality to the Company, any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agent with respect to, or a duty to the to the Company, any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agent or not to trade on the basis of, such material, non-public information. The Company shall not disclose the name of the undersigned in any filing, announcement, release or otherwise, unless such disclosure is required by law or regulation. The Company understands and confirms that the undersigned will rely on the foregoing representations in effecting transactions in securities of the Company.

 

 
2
 
 

 

The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement and that this Lock-Up Agreement has been duly authorized (if the undersigned is not a natural person) and constitutes the legal, valid and binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute any additional documents necessary in connection with the enforcement hereof. Any obligations of the undersigned shall be binding upon the successors and assigns of the undersigned from the date of this Lock-Up Agreement.

 

In exchange for the undersigned executing and delivering this Lock-Up Agreement and other good and valuable consideration, (i) the Company (and its parents, subsidiaries, affiliates, officers, directors, agents, assigns, representatives benefit plans and programs, servants and employees (each, a “ Related Party ”), as applicable, voluntarily, irrevocably and unconditionally release and forever discharge the undersigned (and any of its Related Parties) and each of their respective Related Parties) (collectively, the “ Released Parties ”) from any and all claims of any nature (including but not limited to claims, rights, demands, actions, suits, damages, losses, expenses, liabilities, indebtedness and causes of action), excluding any losses arising primarily as a result of any material violation by a Released Party of any U.S. state or federal securities law applicable to the Released Party (collectively, “ Claims ”), whether known or unknown, which the Company has or may have up to and including the date hereof against any Released Party.

 

This Lock-Up Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof. Delivery of a signed copy of this Lock-Up Agreement by facsimile or e-mail/.pdf transmission shall be effective as the delivery of the original hereof.

 

The obligations of the undersigned under this Lock-Up Agreement are several and not joint with the obligations of any Other Holder under any Other Lock-Up Agreement or under any other agreement, and the undersigned shall not be responsible in any way for the performance of the obligations of any Other Holder under any Other Lock-Up Agreement or under any other agreement. Nothing contained herein or in this Lock-Up Agreement, and no action taken by the undersigned pursuant hereto, shall be deemed to constitute the undersigned and the Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the undersigned and the Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Lock-Up Agreement and the Company acknowledges that the undersigned and the Other Holders are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Lock-Up Agreement or any other Lock-Up Agreement. The Company and the undersigned confirm that the undersigned has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The undersigned shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Lock-Up Agreement, and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose nor shall the undersigned have any right of enforcement or otherwise against any Other Holder related hereto.

 

The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that it will enforce the provisions of each Other Lock-Up Agreement in accordance with its terms and not waive any provisions thereof. If any party to any Other Lock-Up Agreement breaches any provision of such Other Lock-Up Agreement, the Company shall promptly use its best efforts to seek specific performance of the terms of such Other Lock-Up Agreement. Despite the foregoing prohibition, if any terms offered to any Other Holder with respect to hereto or any waiver, modification or amendment (or consent to permit any term or condition of this Lock-Up Agreement not to apply, in whole or in part, to any portion of any security) of any term offered to any Other Holder (each a “ Settlement Document ”), is or will be more favorable to such Other Holder than those of the undersigned and this Lock-Up Agreement, then (i) the Company shall provide notice thereof to the undersigned promptly following the occurrence thereof and (ii) the terms and conditions of this Lock-Up Agreement shall be, without any further action by the undersigned or the Company, automatically amended and modified in an economically and legally equivalent manner such that the undersigned shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Settlement Document, provided that upon written notice to the Company at any time the undersigned may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Lock-Up Agreement shall apply to the undersigned as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the undersigned. The provisions of this paragraph shall apply similarly and equally to each Settlement Document.

 

 
3
 
 

 

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 to such party at the address for such notices to it under this letter 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 manner permitted by law. Nothing contained herein shall be deemed to limit in any way any right to serve process in any 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 with or arising out of this letter agreement or any transaction contemplated hereby.

 

This Lock-Up Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations, letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto.

 

This Lock-Up Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. This Lock-Up Agreement may be executed and accepted by facsimile or PDF signature and any such signature shall be of the same force and effect as an original signature.

 

The terms of this Lock-Up Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and assigns. This Lock-Up Agreement may not be amended, modified or waived without the prior written consent of the parties hereto.

 

 

Very truly yours,

 

SABBY VOLATILITY WARRANT MASTER FUND, LTD.

     
By: /s/ Robert Grundstein

 

 

 

Name:

Robert Grundstein  

 

 

 

Its: Chief Operating Officer of Investment Manager  
     

 

 

 

AGREED AND ACCEPTED BY:

 

 

 

 

AIRBORNE WIRELESS NETWORK

 

 

 

 

By:

/s/ Michael J. Warren 

 

 

 

 

Name:

Michael J. Warren

 

 

 

 

Its:

Chief Executive Officer

 

 

 

4

 

EXHIBIT 10.4

 

LOCK-UP AGREEMENT

 

October 17, 2018

 

Airborne Wireless Network

4115 Guardian Street, Suite C

Simi Valley, California 93063

 

Re: Exercises of Warrants for Airborne Wireless Network Securities

 

Ladies and Gentlemen:

 

The undersigned is a holder of shares of Series A Convertible Preferred Stock (“ Preferred Stock ”), Series 1 Warrants to purchase shares of its Preferred Stock, which originally expired on August 29, 2018, extended to November 29, 2018 (the “ Series 1 Warrants ”), Series 2 Warrants to purchase shares of its Preferred Stock, which expire on November 29, 2018 (the “ Series 2 Warrants ”) and Series 3 Warrants to purchase shares of its Preferred Stock, which expire on May 29, 2019 (the “ Series 3 Warrants ,” together with the Series 1 Warrants and the Series 2 Warrants, the “ Warrants ”, and together with the Preferred Stock, the “ Securities ”) and shares of common stock, par value $0.001 per share (“ Common Stock ”), of Airborne Wireless Network (the “ Company ”). The Company has entered into that certain Exercise Agreement (the “ Exercise Agreement ”), dated on or about the date hereof, by and between the Company and the undersigned for the purposes of enhancing the predictability of the Company’s funding by agreeing that certain of the undersigned’s Warrants will be exercised over a more predictable timeframe. Concurrently herewith, the Company is entering into (i) agreements with holders of Securities other than the undersigned (collectively, the “ Other Holders ”) substantially in the form of this Lock-Up Agreement, mutatis mutandis (collectively, the “ Other Lock-Up Agreements ”) and (ii) an exercise agreement with a holder of Securities other than the undersigned (the “ Other Funding Holder ”) providing that certain Warrants of the Other Funding Holder will be exercised over a more predictable timeframe. This agreement (this “ Lock-Up Agreement ”) shall only be effective as of the later of (a) the time of execution and delivery by the Company and each Other Holder of an Other Lock-Up Agreement and (b) the time of execution and delivery by the Company and the undersigned of this Lock-Up Agreement (such later date, the “ Effective Date ”).

 

In consideration of the Company’s agreement to enter into the Exercise Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, effective as of the Effective Date, the undersigned hereby agrees, solely for the benefit of the Company that, without the prior written consent of the Company, the undersigned will not, during the period specified in the following paragraph (the “ Lock-Up Period ”), directly or indirectly, unless otherwise provided herein, (a) offer, sell, agree to offer or sell, solicit offers to purchase, grant any call option or purchase any put option with respect to, pledge, encumber, assign, borrow or otherwise dispose of or transfer (each a “ Transfer ”) any Relevant Security (as defined below) or otherwise publicly disclose the intention to do so, or (b) establish or increase any “put equivalent position” or liquidate or decrease any “call equivalent position” (in each case within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”) and the rules and regulations thereunder) with respect to any Relevant Security or otherwise enter into any swap, derivative or other transaction or arrangement that Transfers to another, in whole or in part, any economic consequence of ownership of a Relevant Security, whether or not such transaction is to be settled by the delivery of Relevant Securities, other securities, cash or other consideration, or otherwise publicly disclose the intention to do so. As used herein, the term “ Relevant Security ” means any Security, share of Common Stock, warrant to purchase any other security of the Company or any other entity that is convertible into, or exercisable or exchangeable for, shares of Preferred Stock, shares of Common Stock or any other equity security of the Company, in each case owned beneficially or otherwise by the undersigned on the date hereof or acquired by the undersigned during the Lock-Up Period. Notwithstanding the foregoing, any Relevant Security may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by such Relevant Security and such pledge of such Relevant Security shall not be deemed to be prohibited by this Lock-Up Agreement.

 

The Lock-Up Period will commence on the Effective Date and continue and include the date that is sixty (60) days after the date of this Lock-Up Agreement; provided , however , that if after thirty (30) days, neither the undersigned nor the Other Funding Holder agrees to exercise additional Warrants, then the Lock-Up Period shall terminate at the beginning of the thirty first (31 st ) day following the Effective Date.

 

 
1
 
 

 

In furtherance of the undersigned’s obligations hereunder, the undersigned hereby authorizes the Company during the Lock-Up Period to cause any transfer agent for the Relevant Securities to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, Relevant Securities for which the undersigned is the record owner and the transfer of which would be a violation of this Lock-Up Agreement and, in the case of Relevant Securities for which the undersigned is the beneficial but not the record owner, agrees that during the Lock-Up Period it will cause the record owner to cause the relevant transfer agent to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, such Relevant Securities to the extent such transfer would be a violation of this Lock-Up Agreement.

 

Notwithstanding the foregoing, the undersigned may transfer the undersigned’s Relevant Securities:

 

 

(i) as a bona fide gift or gifts,

 

 

 

 

(ii) if the undersigned is a corporation, partnership, limited liability company, trust or other business entity (1) to another corporation, partnership, limited liability company, trust or other business entity that is a direct or indirect affiliate (as defined in Rule 405 under the Securities Act of 1933, as amended) of the undersigned, (2) to limited partners, limited liability company members or stockholders of the undersigned, or (3) in connection with a sale, merger or transfer of all or substantially all of the assets of the undersigned or any other change of control of the undersigned, not undertaken for the purpose of avoiding the restrictions imposed by this Lock-Up Agreement, or

 

 

 

 

(iii) during any thirty-day period commencing on the date that the undersigned (a) is obligated or given the option to exercise a portion of its Warrants under the Exercise Agreement and (b) exercises such Warrants for an aggregate exercise of price of not less than $600,000;

 

provided, in the case of clauses (i) and (ii), that (A) such transfer shall not involve a disposition for value, (B) the transferee agrees in writing with the Company to be bound by the terms of this Lock-Up Agreement, and (C) such transfer would not require any filing under Section 16(a) of the Exchange Act and no such filing is voluntarily made.

 

The Company shall, on or before 9:30 a.m., New York City time, on the first business day after the date hereof, issue a Current Report on Form 8-K attaching the form of this Lock-Up Agreement as an exhibit thereto (including all attachments, the “ 8-K Filing ”) disclosing all material terms of the transactions contemplated hereby and pursuant to the Exercise Agreement and the Other Lock-Up Agreements. From and after the filing of the 8-K Filing, the undersigned shall not be in possession of any material, nonpublic information received from the Company or any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agents, that is not disclosed in the 8-K Filing. In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and the older or any of its affiliates, on the other hand, shall terminate and be of no further force or effect. The Company shall not, and shall cause its officers, directors, employees, affiliates and agents, not to, provide the undersigned with any material, nonpublic information regarding the Company from and after the date hereof without the express written consent of the undersigned. To the extent that the Company delivers any material, non-public information to the undersigned without the undersigned’s express prior written consent, the Company hereby covenants and agrees that the undersigned shall not have any duty of confidentiality to the Company, any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agent with respect to, or a duty to the to the Company, any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agent or not to trade on the basis of, such material, non-public information. The Company shall not disclose the name of the undersigned in any filing, announcement, release or otherwise, unless such disclosure is required by law or regulation. The Company understands and confirms that the undersigned will rely on the foregoing representations in effecting transactions in securities of the Company.

 

 
2
 
 

 

The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement and that this Lock-Up Agreement has been duly authorized (if the undersigned is not a natural person) and constitutes the legal, valid and binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute any additional documents necessary in connection with the enforcement hereof. Any obligations of the undersigned shall be binding upon the successors and assigns of the undersigned from the date of this Lock-Up Agreement.

 

In exchange for the undersigned executing and delivering this Lock-Up Agreement and other good and valuable consideration, (i) the Company (and its parents, subsidiaries, affiliates, officers, directors, agents, assigns, representatives benefit plans and programs, servants and employees (each, a “ Related Party ”), as applicable, voluntarily, irrevocably and unconditionally release and forever discharge the undersigned (and any of its Related Parties) and each of their respective Related Parties) (collectively, the “ Released Parties ”) from any and all claims of any nature (including but not limited to claims, rights, demands, actions, suits, damages, losses, expenses, liabilities, indebtedness and causes of action), excluding any losses arising primarily as a result of any material violation by a Released Party of any U.S. state or federal securities law applicable to the Released Party (collectively, “ Claims ”), whether known or unknown, which the Company has or may have up to and including the date hereof against any Released Party.

 

This Lock-Up Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof. Delivery of a signed copy of this Lock-Up Agreement by facsimile or e-mail/.pdf transmission shall be effective as the delivery of the original hereof.

 

The obligations of the undersigned under this Lock-Up Agreement are several and not joint with the obligations of any Other Holder under any Other Lock-Up Agreement or under any other agreement, and the undersigned shall not be responsible in any way for the performance of the obligations of any Other Holder under any Other Lock-Up Agreement or under any other agreement. Nothing contained herein or in this Lock-Up Agreement, and no action taken by the undersigned pursuant hereto, shall be deemed to constitute the undersigned and the Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the undersigned and the Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Lock-Up Agreement and the Company acknowledges that the undersigned and the Other Holders are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Lock-Up Agreement or any other Lock-Up Agreement. The Company and the undersigned confirm that the undersigned has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The undersigned shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Lock-Up Agreement, and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose nor shall the undersigned have any right of enforcement or otherwise against any Other Holder related hereto.

 

The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that it will enforce the provisions of each Other Lock-Up Agreement in accordance with its terms and not waive any provisions thereof. If any party to any Other Lock-Up Agreement breaches any provision of such Other Lock-Up Agreement, the Company shall promptly use its best efforts to seek specific performance of the terms of such Other Lock-Up Agreement. Despite the foregoing prohibition, if any terms offered to any Other Holder with respect to hereto or any waiver, modification or amendment (or consent to permit any term or condition of this Lock-Up Agreement not to apply, in whole or in part, to any portion of any security) of any term offered to any Other Holder (each a “ Settlement Document ”), is or will be more favorable to such Other Holder than those of the undersigned and this Lock-Up Agreement, then (i) the Company shall provide notice thereof to the undersigned promptly following the occurrence thereof and (ii) the terms and conditions of this Lock-Up Agreement shall be, without any further action by the undersigned or the Company, automatically amended and modified in an economically and legally equivalent manner such that the undersigned shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Settlement Document, provided that upon written notice to the Company at any time the undersigned may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Lock-Up Agreement shall apply to the undersigned as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the undersigned. The provisions of this paragraph shall apply similarly and equally to each Settlement Document.

 

 
3
 
 

 

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 to such party at the address for such notices to it under this letter 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 manner permitted by law. Nothing contained herein shall be deemed to limit in any way any right to serve process in any 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 with or arising out of this letter agreement or any transaction contemplated hereby.

 

This Lock-Up Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations, letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto.

 

This Lock-Up Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. This Lock-Up Agreement may be executed and accepted by facsimile or PDF signature and any such signature shall be of the same force and effect as an original signature.

 

The terms of this Lock-Up Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and assigns. This Lock-Up Agreement may not be amended, modified or waived without the prior written consent of the parties hereto.

 

 

Very truly yours,

 

IONIC VENTURES LLC

     
By: /s/ Keith Coulston

 

 

 

Name:

Keith Coulston

 

 

 

 

Its:

Partner

 

 

 

 

 

 

 

AGREED AND ACCEPTED BY:

 

 

 

 

AIRBORNE WIRELESS NETWORK

 

 

 

 

By:

/s/ Michael J. Warren 

 

 

 

 

Name:

Michael J. Warren

 

 

 

 

Its:

Chief Executive Officer

 

 

 

 

 

4

 

EXHIBIT 10.5

 

LOCK-UP AGREEMENT

 

October 17, 2018

 

Airborne Wireless Network

4115 Guardian Street, Suite C

Simi Valley, California 93063

 

Re: Exercises of Warrants for Airborne Wireless Network Securities

 

Ladies and Gentlemen:

 

The undersigned is a holder of shares of Series A Convertible Preferred Stock (“ Preferred Stock ”), Series 1 Warrants to purchase shares of its Preferred Stock, which originally expired on August 29, 2018, extended to November 29, 2018 (the “ Series 1 Warrants ”), Series 2 Warrants to purchase shares of its Preferred Stock, which expire on November 29, 2018 (the “ Series 2 Warrants ”) and Series 3 Warrants to purchase shares of its Preferred Stock, which expire on May 29, 2019 (the “ Series 3 Warrants ,” together with the Series 1 Warrants and the Series 2 Warrants, the “ Warrants ”, and together with the Preferred Stock, the “ Securities ”) and shares of common stock, par value $0.001 per share (“ Common Stock ”), of Airborne Wireless Network (the “ Company ”). The Company has entered into certain Exercise Agreements (collectively, the “ Exercise Agreements ”), each dated on or about the date hereof, by and between the Company and a holder of Securities (other than the undersigned) (collectively, the “ Other Funding Holders ,” and together with each other holder of Securities (other than the undersigned), the “ Other Holders ”) for the purposes of enhancing the predictability of the Company’s funding by agreeing that the Warrants of the Other Funding Holders will be exercised over a more predictable timeframe. Concurrently herewith, the Company is entering into agreements with each Other Holder substantially in the form of this Lock-Up Agreement, mutatis mutandis (collectively, the “ Other Lock-Up Agreements ”). This agreement (this “ Lock-Up Agreement ”) shall only be effective as of the later of (a) the time of execution and delivery by the Company and each Other Holder of an Other Lock-Up Agreement and (b) the time of execution and delivery by the Company and the undersigned of this Lock-Up Agreement (such later date, the “ Effective Date ”).

 

In consideration of the Company’s agreement to enter into the Exercise Agreements, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, effective as of the Effective Date, the undersigned hereby agrees, solely for the benefit of the Company that, without the prior written consent of the Company, the undersigned will not, during the period specified in the following paragraph (the “ Lock-Up Period ”), directly or indirectly, unless otherwise provided herein, (a) offer, sell, agree to offer or sell, solicit offers to purchase, grant any call option or purchase any put option with respect to, pledge, encumber, assign, borrow or otherwise dispose of or transfer (each a “ Transfer ”) any Relevant Security (as defined below) or otherwise publicly disclose the intention to do so, or (b) establish or increase any “put equivalent position” or liquidate or decrease any “call equivalent position” (in each case within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”) and the rules and regulations thereunder) with respect to any Relevant Security or otherwise enter into any swap, derivative or other transaction or arrangement that Transfers to another, in whole or in part, any economic consequence of ownership of a Relevant Security, whether or not such transaction is to be settled by the delivery of Relevant Securities, other securities, cash or other consideration, or otherwise publicly disclose the intention to do so. As used herein, the term “ Relevant Security ” means any Security, share of Common Stock, warrant to purchase any other security of the Company or any other entity that is convertible into, or exercisable or exchangeable for, shares of Preferred Stock, shares of Common Stock or any other equity security of the Company, in each case owned beneficially or otherwise by the undersigned on the date hereof or acquired by the undersigned during the Lock-Up Period. Notwithstanding the foregoing, any Relevant Security may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by such Relevant Security and such pledge of such Relevant Security shall not be deemed to be prohibited by this Lock-Up Agreement.

 

The Lock-Up Period will commence on the Effective Date and continue and include the date that is sixty (60) days after the date of this Lock-Up Agreement; provided , however , that if after thirty (30) days, no Other Funding Holder agrees to exercise additional Warrants, then the Lock-Up Period shall terminate at the beginning of the thirty first (31 st ) day following the Effective Date.

 

 
1
 
 

 

In furtherance of the undersigned’s obligations hereunder, the undersigned hereby authorizes the Company during the Lock-Up Period to cause any transfer agent for the Relevant Securities to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, Relevant Securities for which the undersigned is the record owner and the transfer of which would be a violation of this Lock-Up Agreement and, in the case of Relevant Securities for which the undersigned is the beneficial but not the record owner, agrees that during the Lock-Up Period it will cause the record owner to cause the relevant transfer agent to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, such Relevant Securities to the extent such transfer would be a violation of this Lock-Up Agreement.

 

Notwithstanding the foregoing, the undersigned may transfer the undersigned’s Relevant Securities:

 

 

(i) as a bona fide gift or gifts,

 

 

 

 

(ii) if the undersigned is a corporation, partnership, limited liability company, trust or other business entity (1) to another corporation, partnership, limited liability company, trust or other business entity that is a direct or indirect affiliate (as defined in Rule 405 under the Securities Act of 1933, as amended) of the undersigned, (2) to limited partners, limited liability company members or stockholders of the undersigned, or (3) in connection with a sale, merger or transfer of all or substantially all of the assets of the undersigned or any other change of control of the undersigned, not undertaken for the purpose of avoiding the restrictions imposed by this Lock-Up Agreement, or

 

 

 

 

(iii) during any thirty-day period commencing on the date that the undersigned (a) is obligated or given the option to exercise a portion of its Warrants under an Exercise Agreement and (b) exercises such Warrants for an aggregate exercise of price of not less than $600,000;

  

provided, in the case of clauses (i) and (ii), that (A) such transfer shall not involve a disposition for value, (B) the transferee agrees in writing with the Company to be bound by the terms of this Lock-Up Agreement, and (C) such transfer would not require any filing under Section 16(a) of the Exchange Act and no such filing is voluntarily made.

 

The Company shall, on or before 9:30 a.m., New York City time, on the first business day after the date hereof, issue a Current Report on Form 8-K attaching the form of this Lock-Up Agreement as an exhibit thereto (including all attachments, the “ 8-K Filing ”) disclosing all material terms of the transactions contemplated hereby and pursuant to the Exercise Agreement and the Other Lock-Up Agreements. From and after the filing of the 8-K Filing, the undersigned shall not be in possession of any material, nonpublic information received from the Company or any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agents, that is not disclosed in the 8-K Filing. In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and the older or any of its affiliates, on the other hand, shall terminate and be of no further force or effect. The Company shall not, and shall cause its officers, directors, employees, affiliates and agents, not to, provide the undersigned with any material, nonpublic information regarding the Company from and after the date hereof without the express written consent of the undersigned. To the extent that the Company delivers any material, non-public information to the undersigned without the undersigned’s express prior written consent, the Company hereby covenants and agrees that the undersigned shall not have any duty of confidentiality to the Company, any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agent with respect to, or a duty to the to the Company, any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agent or not to trade on the basis of, such material, non-public information. The Company shall not disclose the name of the undersigned in any filing, announcement, release or otherwise, unless such disclosure is required by law or regulation. The Company understands and confirms that the undersigned will rely on the foregoing representations in effecting transactions in securities of the Company.

 

 
2
 
 

 

The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement and that this Lock-Up Agreement has been duly authorized (if the undersigned is not a natural person) and constitutes the legal, valid and binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute any additional documents necessary in connection with the enforcement hereof. Any obligations of the undersigned shall be binding upon the successors and assigns of the undersigned from the date of this Lock-Up Agreement.

 

In exchange for the undersigned executing and delivering this Lock-Up Agreement and other good and valuable consideration, (i) the Company (and its parents, subsidiaries, affiliates, officers, directors, agents, assigns, representatives benefit plans and programs, servants and employees (each, a “ Related Party ”), as applicable, voluntarily, irrevocably and unconditionally release and forever discharge the undersigned (and any of its Related Parties) and each of their respective Related Parties) (collectively, the “ Released Parties ”) from any and all claims of any nature (including but not limited to claims, rights, demands, actions, suits, damages, losses, expenses, liabilities, indebtedness and causes of action), excluding any losses arising primarily as a result of any material violation by a Released Party of any U.S. state or federal securities law applicable to the Released Party (collectively, “ Claims ”), whether known or unknown, which the Company has or may have up to and including the date hereof against any Released Party.

 

This Lock-Up Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof. Delivery of a signed copy of this Lock-Up Agreement by facsimile or e-mail/.pdf transmission shall be effective as the delivery of the original hereof.

 

The obligations of the undersigned under this Lock-Up Agreement are several and not joint with the obligations of any Other Holder under any Other Lock-Up Agreement or under any other agreement, and the undersigned shall not be responsible in any way for the performance of the obligations of any Other Holder under any Other Lock-Up Agreement or under any other agreement. Nothing contained herein or in this Lock-Up Agreement, and no action taken by the undersigned pursuant hereto, shall be deemed to constitute the undersigned and the Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the undersigned and the Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Lock-Up Agreement and the Company acknowledges that the undersigned and the Other Holders are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Lock-Up Agreement or any other Lock-Up Agreement. The Company and the undersigned confirm that the undersigned has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The undersigned shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Lock-Up Agreement, and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose nor shall the undersigned have any right of enforcement or otherwise against any Other Holder related hereto.

 

The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that it will enforce the provisions of each Other Lock-Up Agreement in accordance with its terms and not waive any provisions thereof. If any party to any Other Lock-Up Agreement breaches any provision of such Other Lock-Up Agreement, the Company shall promptly use its best efforts to seek specific performance of the terms of such Other Lock-Up Agreement. Despite the foregoing prohibition, if any terms offered to any Other Holder with respect to hereto or any waiver, modification or amendment (or consent to permit any term or condition of this Lock-Up Agreement not to apply, in whole or in part, to any portion of any security) of any term offered to any Other Holder (each a “ Settlement Document ”), is or will be more favorable to such Other Holder than those of the undersigned and this Lock-Up Agreement, then (i) the Company shall provide notice thereof to the undersigned promptly following the occurrence thereof and (ii) the terms and conditions of this Lock-Up Agreement shall be, without any further action by the undersigned or the Company, automatically amended and modified in an economically and legally equivalent manner such that the undersigned shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Settlement Document, provided that upon written notice to the Company at any time the undersigned may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Lock-Up Agreement shall apply to the undersigned as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the undersigned. The provisions of this paragraph shall apply similarly and equally to each Settlement Document.

 

 
3
 
 

 

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 to such party at the address for such notices to it under this letter 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 manner permitted by law. Nothing contained herein shall be deemed to limit in any way any right to serve process in any 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 with or arising out of this letter agreement or any transaction contemplated hereby.

 

This Lock-Up Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations, letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto.

 

This Lock-Up Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. This Lock-Up Agreement may be executed and accepted by facsimile or PDF signature and any such signature shall be of the same force and effect as an original signature.

 

The terms of this Lock-Up Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and assigns. This Lock-Up Agreement may not be amended, modified or waived without the prior written consent of the parties hereto.

 

 

Very truly yours,

 

ANSON FUNDS MANAGEMENT LP

 

 

 

By:

ANSON ADVISORS Inc.
Its: General Partner  

 

 

 

By:

/s/ Amin Nathoo 

 

 

 

 

Name: Amin Nathoo  

 

 

 

Its:

Director

 

 

 

 

 

 

 

AGREED AND ACCEPTED BY:

 

 

 

 

AIRBORNE WIRELESS NETWORK

 

 

 

 

By:

/s/ Michael J. Warren 

 

 

 

 

Name:

Michael J. Warren

 

 

 

 

Its:

Chief Executive Officer

 

 

 

4

 

EXHIBIT 10.6

 

LOCK-UP AGREEMENT

 

October 17, 2018

 

Airborne Wireless Network

4115 Guardian Street, Suite C

Simi Valley, California 93063

 

Re: Exercises of Warrants for Airborne Wireless Network Securities

 

Ladies and Gentlemen:

 

The undersigned is a holder of shares of Series A Convertible Preferred Stock (“ Preferred Stock ”), Series 1 Warrants to purchase shares of its Preferred Stock, which originally expired on August 29, 2018, extended to November 29, 2018 (the “ Series 1 Warrants ”), Series 2 Warrants to purchase shares of its Preferred Stock, which expire on November 29, 2018 (the “ Series 2 Warrants ”) and Series 3 Warrants to purchase shares of its Preferred Stock, which expire on May 29, 2019 (the “ Series 3 Warrants ,” together with the Series 1 Warrants and the Series 2 Warrants, the “ Warrants ”, and together with the Preferred Stock, the “ Securities ”) and shares of common stock, par value $0.001 per share (“ Common Stock ”), of Airborne Wireless Network (the “ Company ”). The Company has entered into certain Exercise Agreements (collectively, the “ Exercise Agreements ”), each dated on or about the date hereof, by and between the Company and a holder of Securities (other than the undersigned) (collectively, the “ Other Funding Holders ,” and together with each other holder of Securities (other than the undersigned), the “ Other Holders ”) for the purposes of enhancing the predictability of the Company’s funding by agreeing that the Warrants of the Other Funding Holders will be exercised over a more predictable timeframe. Concurrently herewith, the Company is entering into agreements with each Other Holder substantially in the form of this Lock-Up Agreement, mutatis mutandis (collectively, the “ Other Lock-Up Agreements ”). This agreement (this “ Lock-Up Agreement ”) shall only be effective as of the later of (a) the time of execution and delivery by the Company and each Other Holder of an Other Lock-Up Agreement and (b) the time of execution and delivery by the Company and the undersigned of this Lock-Up Agreement (such later date, the “ Effective Date ”).

 

In consideration of the Company’s agreement to enter into the Exercise Agreements, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, effective as of the Effective Date, the undersigned hereby agrees, solely for the benefit of the Company that, without the prior written consent of the Company, the undersigned will not, during the period specified in the following paragraph (the “ Lock-Up Period ”), directly or indirectly, unless otherwise provided herein, (a) offer, sell, agree to offer or sell, solicit offers to purchase, grant any call option or purchase any put option with respect to, pledge, encumber, assign, borrow or otherwise dispose of or transfer (each a “ Transfer ”) any Relevant Security (as defined below) or otherwise publicly disclose the intention to do so, or (b) establish or increase any “put equivalent position” or liquidate or decrease any “call equivalent position” (in each case within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”) and the rules and regulations thereunder) with respect to any Relevant Security or otherwise enter into any swap, derivative or other transaction or arrangement that Transfers to another, in whole or in part, any economic consequence of ownership of a Relevant Security, whether or not such transaction is to be settled by the delivery of Relevant Securities, other securities, cash or other consideration, or otherwise publicly disclose the intention to do so. As used herein, the term “ Relevant Security ” means any Security, share of Common Stock, warrant to purchase any other security of the Company or any other entity that is convertible into, or exercisable or exchangeable for, shares of Preferred Stock, shares of Common Stock or any other equity security of the Company, in each case owned beneficially or otherwise by the undersigned on the date hereof or acquired by the undersigned during the Lock-Up Period. Notwithstanding the foregoing, any Relevant Security may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by such Relevant Security and such pledge of such Relevant Security shall not be deemed to be prohibited by this Lock-Up Agreement.

 

The Lock-Up Period will commence on the Effective Date and continue and include the date that is sixty (60) days after the date of this Lock-Up Agreement; provided , however , that if after thirty (30) days, no Other Funding Holder agrees to exercise additional Warrants, then the Lock-Up Period shall terminate at the beginning of the thirty first (31 st ) day following the Effective Date.

 

 
1
 
 

 

In furtherance of the undersigned’s obligations hereunder, the undersigned hereby authorizes the Company during the Lock-Up Period to cause any transfer agent for the Relevant Securities to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, Relevant Securities for which the undersigned is the record owner and the transfer of which would be a violation of this Lock-Up Agreement and, in the case of Relevant Securities for which the undersigned is the beneficial but not the record owner, agrees that during the Lock-Up Period it will cause the record owner to cause the relevant transfer agent to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, such Relevant Securities to the extent such transfer would be a violation of this Lock-Up Agreement.

 

Notwithstanding the foregoing, the undersigned may transfer the undersigned’s Relevant Securities:

 

 

(i) as a bona fide gift or gifts,

 

 

 

 

(ii) if the undersigned is a corporation, partnership, limited liability company, trust or other business entity (1) to another corporation, partnership, limited liability company, trust or other business entity that is a direct or indirect affiliate (as defined in Rule 405 under the Securities Act of 1933, as amended) of the undersigned, (2) to limited partners, limited liability company members or stockholders of the undersigned, or (3) in connection with a sale, merger or transfer of all or substantially all of the assets of the undersigned or any other change of control of the undersigned, not undertaken for the purpose of avoiding the restrictions imposed by this Lock-Up Agreement, or

 

 

 

 

(iii) during any thirty-day period commencing on the date that the undersigned (a) is obligated or given the option to exercise a portion of its Warrants under an Exercise Agreement and (b) exercises such Warrants for an aggregate exercise of price of not less than $600,000;

 

provided, in the case of clauses (i) and (ii), that (A) such transfer shall not involve a disposition for value, (B) the transferee agrees in writing with the Company to be bound by the terms of this Lock-Up Agreement, and (C) such transfer would not require any filing under Section 16(a) of the Exchange Act and no such filing is voluntarily made.

 

The Company shall, on or before 9:30 a.m., New York City time, on the first business day after the date hereof, issue a Current Report on Form 8-K attaching the form of this Lock-Up Agreement as an exhibit thereto (including all attachments, the “ 8-K Filing ”) disclosing all material terms of the transactions contemplated hereby and pursuant to the Exercise Agreement and the Other Lock-Up Agreements. From and after the filing of the 8-K Filing, the undersigned shall not be in possession of any material, nonpublic information received from the Company or any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agents, that is not disclosed in the 8-K Filing. In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and the older or any of its affiliates, on the other hand, shall terminate and be of no further force or effect. The Company shall not, and shall cause its officers, directors, employees, affiliates and agents, not to, provide the undersigned with any material, nonpublic information regarding the Company from and after the date hereof without the express written consent of the undersigned. To the extent that the Company delivers any material, non-public information to the undersigned without the undersigned’s express prior written consent, the Company hereby covenants and agrees that the undersigned shall not have any duty of confidentiality to the Company, any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agent with respect to, or a duty to the to the Company, any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agent or not to trade on the basis of, such material, non-public information. The Company shall not disclose the name of the undersigned in any filing, announcement, release or otherwise, unless such disclosure is required by law or regulation. The Company understands and confirms that the undersigned will rely on the foregoing representations in effecting transactions in securities of the Company.

 

 
2
 
 

 

The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement and that this Lock-Up Agreement has been duly authorized (if the undersigned is not a natural person) and constitutes the legal, valid and binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute any additional documents necessary in connection with the enforcement hereof. Any obligations of the undersigned shall be binding upon the successors and assigns of the undersigned from the date of this Lock-Up Agreement.

 

In exchange for the undersigned executing and delivering this Lock-Up Agreement and other good and valuable consideration, (i) the Company (and its parents, subsidiaries, affiliates, officers, directors, agents, assigns, representatives benefit plans and programs, servants and employees (each, a “ Related Party ”), as applicable, voluntarily, irrevocably and unconditionally release and forever discharge the undersigned (and any of its Related Parties) and each of their respective Related Parties) (collectively, the “ Released Parties ”) from any and all claims of any nature (including but not limited to claims, rights, demands, actions, suits, damages, losses, expenses, liabilities, indebtedness and causes of action), excluding any losses arising primarily as a result of any material violation by a Released Party of any U.S. state or federal securities law applicable to the Released Party (collectively, “ Claims ”), whether known or unknown, which the Company has or may have up to and including the date hereof against any Released Party.

 

This Lock-Up Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof. Delivery of a signed copy of this Lock-Up Agreement by facsimile or e-mail/.pdf transmission shall be effective as the delivery of the original hereof.

 

The obligations of the undersigned under this Lock-Up Agreement are several and not joint with the obligations of any Other Holder under any Other Lock-Up Agreement or under any other agreement, and the undersigned shall not be responsible in any way for the performance of the obligations of any Other Holder under any Other Lock-Up Agreement or under any other agreement. Nothing contained herein or in this Lock-Up Agreement, and no action taken by the undersigned pursuant hereto, shall be deemed to constitute the undersigned and the Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the undersigned and the Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Lock-Up Agreement and the Company acknowledges that the undersigned and the Other Holders are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Lock-Up Agreement or any other Lock-Up Agreement. The Company and the undersigned confirm that the undersigned has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The undersigned shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Lock-Up Agreement, and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose nor shall the undersigned have any right of enforcement or otherwise against any Other Holder related hereto.

 

The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that it will enforce the provisions of each Other Lock-Up Agreement in accordance with its terms and not waive any provisions thereof. If any party to any Other Lock-Up Agreement breaches any provision of such Other Lock-Up Agreement, the Company shall promptly use its best efforts to seek specific performance of the terms of such Other Lock-Up Agreement. Despite the foregoing prohibition, if any terms offered to any Other Holder with respect to hereto or any waiver, modification or amendment (or consent to permit any term or condition of this Lock-Up Agreement not to apply, in whole or in part, to any portion of any security) of any term offered to any Other Holder (each a “ Settlement Document ”), is or will be more favorable to such Other Holder than those of the undersigned and this Lock-Up Agreement, then (i) the Company shall provide notice thereof to the undersigned promptly following the occurrence thereof and (ii) the terms and conditions of this Lock-Up Agreement shall be, without any further action by the undersigned or the Company, automatically amended and modified in an economically and legally equivalent manner such that the undersigned shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Settlement Document, provided that upon written notice to the Company at any time the undersigned may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Lock-Up Agreement shall apply to the undersigned as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the undersigned. The provisions of this paragraph shall apply similarly and equally to each Settlement Document.

 

 
3
 
 

 

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 to such party at the address for such notices to it under this letter 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 manner permitted by law. Nothing contained herein shall be deemed to limit in any way any right to serve process in any 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 with or arising out of this letter agreement or any transaction contemplated hereby.

 

This Lock-Up Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations, letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto.

 

This Lock-Up Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. This Lock-Up Agreement may be executed and accepted by facsimile or PDF signature and any such signature shall be of the same force and effect as an original signature.

 

The terms of this Lock-Up Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and assigns. This Lock-Up Agreement may not be amended, modified or waived without the prior written consent of the parties hereto.

 

 

Very truly yours,

 

HUDSON BAY MASTER FUND LTD.

     

By:

/s/ George Antonopoulos

 

 
Name: George Antonopoulos  

 

 

 

Its: Authorized Signatory  

 

 

 

 

 

AGREED AND ACCEPTED BY: 

 

 

 

 

AIRBORNE WIRELESS NETWORK

 

 

 

 

By:

/s/ Michael J. Warren 

 

 

 

 

Name:

Michael J. Warren

 

 

 

 

Its:

Chief Executive Officer

 

 

 

4

 

EXHIBIT 10.7

 

LOCK-UP AND WAIVER

AGREEMENT

 

October 17, 2018

 

Airborne Wireless Network

4115 Guardian Street, Suite C

Simi Valley, California 93063

 

Re: Exercises of Warrants for Airborne Wireless Network Securities

 

Ladies and Gentlemen:

 

The undersigned is a holder of that certain Airborne Wireless Network Convertible Debenture, dated April 9, 2018 (the “ Debenture ”) and other debt instruments (each, a “ Note ,” and together, the “ Notes ”) issued by Airborne Wireless Network (the “ Company ”) that are convertible into shares of common stock, par value $0.001 per share (“ Common Stock ”), of the Company and certain warrants to purchase shares of Common Stock (the “ Warrants ,” and collectively with the Debenture, the Notes and shares of Common Stock, the “ Securities ”). The Company has entered into certain Exercise Agreements (collectively, the “ Exercise Agreements ”), each dated on or about the date hereof, by and between the Company and a holder of certain other securities of the Company (collectively, the “ Other Funding Holders ,” and together with each other holder of Securities (other than the undersigned), the “ Other Holders ”) for the purposes of enhancing the predictability of the Company’s funding by agreeing that the warrants of the Other Funding Holders will be exercised over a more predictable timeframe. Concurrently herewith, the Company is entering into other lock-up agreements with each Other Holder (collectively, the “ Other Lock-Up Agreements ”).

 

Effective as of the date hereof, the undersigned hereby agrees, solely for the benefit of the Company that:

 

 

(a) without the prior written consent of the Company, the undersigned will not, during the period specified below (the “ Lock-Up Period ”), directly or indirectly, unless otherwise provided herein, (i) offer, sell, agree to offer or sell, solicit offers to purchase, grant any call option or purchase any put option with respect to, pledge, encumber, assign, borrow or otherwise dispose of or transfer (each a “ Transfer ”) any Relevant Security (as defined below) or otherwise publicly disclose the intention to do so, or (ii) establish or increase any “put equivalent position” or liquidate or decrease any “call equivalent position” (in each case within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”) and the rules and regulations thereunder) with respect to any Relevant Security or otherwise enter into any swap, derivative or other transaction or arrangement that Transfers to another, in whole or in part, any economic consequence of ownership of a Relevant Security, whether or not such transaction is to be settled by the delivery of Relevant Securities, other securities, cash or other consideration, or otherwise publicly disclose the intention to do so; and

 

 

 

 

(b) the undersigned will waive the requirements under Section 1(c)(i), 1(c)(ii) and 1(c)(iii) under the Debenture that the Company provide at least 15 business days’ notice to the undersigned prior to making a partial redemption payment, that the trading price of the Common Stock be less than a stated fixed conversion price in order for a redemption to be made and that the Company pay a redemption premium, respectively, in connection with the payments made in consideration for this Lock-up Agreement.

 

As used herein, the term “ Relevant Security ” means any Security, warrant to purchase any other security of the Company or any other entity or any security that is convertible into, or exercisable or exchangeable for, shares of preferred stock, shares of Common Stock or any other equity security of the Company, in each case owned beneficially or otherwise by the undersigned on the date hereof or acquired by the undersigned during the Lock-Up Period. Notwithstanding the foregoing, any Relevant Security may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by such Relevant Security and such pledge of such Relevant Security shall not be deemed to be prohibited by this Lock-Up Agreement.

 

 
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In consideration for the undersigned’s agreements set forth above, the Company agrees to (a) make a partial redemption payment of $50,000 under the Debenture on the date hereof or the immediately following business day and (b) make a partial redemption payment of $50,000 under the Debenture on the first business day that is thirty (30) days after the date hereof.

 

The Lock-Up Period will commence on the date hereof and continue and include the date that is sixty (60) days after the date of this Lock-Up Agreement, provided however, if the partial payment referenced in (b) above is not made when due, the Lock-Up Period will end on the date that is thirty (30) days after the date of this Lock-Up Agreement.

 

In furtherance of the undersigned’s obligations hereunder, the undersigned hereby authorizes the Company during the Lock-Up Period to cause any transfer agent for the Relevant Securities to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, Relevant Securities for which the undersigned is the record owner and the transfer of which would be a violation of this Lock-Up Agreement and, in the case of Relevant Securities for which the undersigned is the beneficial but not the record owner, agrees that during the Lock-Up Period it will cause the record owner to cause the relevant transfer agent to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, such Relevant Securities to the extent such transfer would be a violation of this Lock-Up Agreement.

 

Notwithstanding the foregoing, the undersigned may transfer the undersigned’s Relevant Securities:

 

 

(i) as a bona fide gift or gifts, or

 

 

 

 

(ii) if the undersigned is a corporation, partnership, limited liability company, trust or other business entity (1) to another corporation, partnership, limited liability company, trust or other business entity that is a direct or indirect affiliate (as defined in Rule 405 under the Securities Act of 1933, as amended) of the undersigned, (2) to limited partners, limited liability company members or stockholders of the undersigned, or (3) in connection with a sale, merger or transfer of all or substantially all of the assets of the undersigned or any other change of control of the undersigned, not undertaken for the purpose of avoiding the restrictions imposed by this Lock-Up Agreement.

 

provided, in the case of clauses (i) and (ii), that (A) such transfer shall not involve a disposition for value, (B) the transferee agrees in writing with the Company to be bound by the terms of this Lock-Up Agreement, and (C) such transfer would not require any filing under Section 16(a) of the Exchange Act and no such filing is voluntarily made.

 

The Company shall, on or before 9:30 a.m., New York City time, on the first business day after the date hereof, issue a Current Report on Form 8-K attaching the form of this Lock-Up Agreement as an exhibit thereto (including all attachments, the “ 8-K Filing ”) disclosing all material terms of the transactions contemplated hereby and pursuant to the agreements being entered into with the Other Funding Holders and the Other Lock-Up Agreements. From and after the filing of the 8-K Filing, the undersigned shall not be in possession of any material, nonpublic information received from the Company or any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agents, that is not disclosed in the 8-K Filing. In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and the older or any of its affiliates, on the other hand, shall terminate and be of no further force or effect. The Company shall not, and shall cause its officers, directors, employees, affiliates and agents, not to, provide the undersigned with any material, nonpublic information regarding the Company from and after the date hereof without the express written consent of the undersigned. To the extent that the Company delivers any material, non-public information to the undersigned without the undersigned’s express prior written consent, the Company hereby covenants and agrees that the undersigned shall not have any duty of confidentiality to the Company, any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agent with respect to, or a duty to the to the Company, any of its subsidiaries or any of their respective officers, directors, employees, affiliates or agent or not to trade on the basis of, such material, non-public information. The Company shall not disclose the name of the undersigned in any filing, announcement, release or otherwise, unless such disclosure is required by law or regulation. The Company understands and confirms that the undersigned will rely on the foregoing representations in effecting transactions in securities of the Company.

 

 
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The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement and that this Lock-Up Agreement has been duly authorized (if the undersigned is not a natural person) and constitutes the legal, valid and binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute any additional documents necessary in connection with the enforcement hereof. Any obligations of the undersigned shall be binding upon the successors and assigns of the undersigned from the date of this Lock-Up Agreement.

 

In exchange for the undersigned executing and delivering this Lock-Up Agreement and other good and valuable consideration, (i) the Company (and its parents, subsidiaries, affiliates, officers, directors, agents, assigns, representatives benefit plans and programs, servants and employees (each, a “ Related Party ”), as applicable, voluntarily, irrevocably and unconditionally release and forever discharge the undersigned (and any of its Related Parties) and each of their respective Related Parties) (collectively, the “ Released Parties ”) from any and all claims of any nature (including but not limited to claims, rights, demands, actions, suits, damages, losses, expenses, liabilities, indebtedness and causes of action), excluding any losses arising primarily as a result of any material violation by a Released Party of any U.S. state or federal securities law applicable to the Released Party (collectively, “ Claims ”), whether known or unknown, which the Company has or may have up to and including the date hereof against any Released Party.

 

This Lock-Up Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof. Delivery of a signed copy of this Lock-Up Agreement by facsimile or e-mail/.pdf transmission shall be effective as the delivery of the original hereof.

 

The obligations of the undersigned under this Lock-Up Agreement are several and not joint with the obligations of any Other Holder under any Other Lock-Up Agreement or under any other agreement, and the undersigned shall not be responsible in any way for the performance of the obligations of any Other Holder under any Other Lock-Up Agreement or under any other agreement. Nothing contained herein or in this Lock-Up Agreement, and no action taken by the undersigned pursuant hereto, shall be deemed to constitute the undersigned and the Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the undersigned and the Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Lock-Up Agreement and the Company acknowledges that the undersigned and the Other Holders are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Lock-Up Agreement or any other Lock-Up Agreement. The Company and the undersigned confirm that the undersigned has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The undersigned shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Lock-Up Agreement, and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose nor shall the undersigned have any right of enforcement or otherwise against any Other Holder related hereto.

 

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 to such party at the address for such notices to it under this letter 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 manner permitted by law. Nothing contained herein shall be deemed to limit in any way any right to serve process in any 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 with or arising out of this letter agreement or any transaction contemplated hereby.

 

This Lock-Up Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations, letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto.

 

 
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This Lock-Up Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. This Lock-Up Agreement may be executed and accepted by facsimile or PDF signature and any such signature shall be of the same force and effect as an original signature.

 

The terms of this Lock-Up Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and assigns. This Lock-Up Agreement may not be amended, modified or waived without the prior written consent of the parties hereto.

 

 

Very truly yours,

 

YA II PN, LTD.

     

By:

Yorkville Advisors Global, LP

Its:

Investment Manager  
   
By: Yorkville Advisors Global II, LLC  

Its:

General Partner

 

 

 

 

By:

/s/ David Gonzalez  

 

 

 

 

Name:

David Gonzalez

 

 

 

 

Its:

Managing Member and General Counsel

 

 

 

 

 

 

AGREED AND ACCEPTED BY:

 

 

 

 

AIRBORNE WIRELESS NETWORK

 

 

 

 

By:

/s/ Michael J. Warren 

 

 

 

 

Name:

Michael J. Warren

 

 

 

 

Its:

Chief Executive Officer

 

 

 

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