Company: LIFD
Filing Date: 2025-02-24
Form Type: 8-K
Source: 0001096906-25-000193
Chunk: 10

Company: LFTD PARTNERS INC.
Filing Date: 2025-02-24
Form: 8-K
Item: Item 8.01
Chunk 10
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 as SG and its subsidiaries are using good faith efforts to complete the Audit in a commercially reasonable fashion and time frame.

(5) Letter of Intent Regarding Boards of Directors and Executives

LIFD, Lifted, GMJ, NSW, WCJ, JM and EC entered into a Letter of Intent - Boards of Directors and Executives dated as of February 19, 2025 (the “ LOI - Boards and Executives”).

As an express inducement to each of the parties to enter into the Letter of Intent - Boards and Executives and the LOI - SI and Marijuana Subsidiaries, the parties agree that:

(a) Effective on the Marijuana Subsidiaries Closing Date, the Bylaws of LIFD shall be changed to increase the size of the Board of Directors of LIFD (the “ LIFD Board”) from nine (9) members to ten (10) members, and JM shall be added to the LIFD Board effective as of the completion of the Marijuana Subsidiaries Closing;

(b) At the Marijuana Subsidiaries Closing, LIFD shall grant to each member of the LIFD Board who is not an employee of LIFD (a “ Non-Employee LIFD Board Member”) assignable warrants to purchase 50,000 LIFD Shares at an exercise price of $3.25 per LIFD Share and assignable warrants to purchase 50,000 LIFD Shares at an exercise price of $5.00 per LIFD Share, providedthat each such warrant: (1) shall contain a so-called “cashless exercise” provision; (2) shall expire if not exercised on or before the seventh anniversary of the Marijuana Subsidiaries Closing Date; and (3) shall not vest and shall not be exercisable unless and until LIFD’s audited earnings per share (“ EPS”) during 2025 or any subsequent calendar year is at or above $0.20 on a fully diluted basis;

(c) At the Marijuana Subsidiaries Closing, each of the existing employment agreements of GMJ, NSW and WCJ (the “ LIFD Executives”) with LIFD shall terminate, and each of JM, EC and the LIFD Executives (collectively the “ Senior Executives”) shall sign a mutually acceptable new five year “rolling” employment agreement with LIFD (individually an “ Employment Agreement” and collectively the “ Employment Agreements