Document:

Exhibit 10.12

 

LOAN
AGREEMENT (Amended and restated)

 

Loan
Amount is $1,041,353

 

II.
PARTIES. This loan agreement is made on the 31st of December, 2021 by and among Hour Loop, Inc, a Corporation organized under the
laws of the State of Delaware (hereinafter known as “Borrower”) and Sam Lai and Sau Kuen Yu (hereinafter known as “Lender”).
Borrower and Lender shall collectively be known herein as “the Parties”. “Borrower”) and Sam Lai and Sau Kuen
Yu (hereinafter known as “Lender”). This loan agreement is intended to amend and restate the loan agreement on December 31,
2020 by and among the borrower and the lender, which loan agreement was amended and restated on September 16, 2021 by and among the borrower
and the lender.

 

II.
PAYMENT. This agreement, (the “Note”), shall be due and payable, including the principal and any accrued interest,
in one of the following ways:

 

☐$1,041,353
of the principal will be payable by January 31, 2022.

 

III. 
INTEREST. The Note shall bear interest at a rate of two percent (2%) compounded annually. Interest will accrue starting
1/1/2021

 

IV. PREPAYMENT.
The Borrower has the right to pay back the loan in-full or make additional payments at any time without penalty.

 

V.
REMEDIES. No delay or omission on part of the holder of this Note in exercising any right hereunder shall operate as a waiver of
any such right or of any other right of such holder, nor shall any delay, omission or waiver on any one occasion be deemed a bar to
or waiver of the same or any other right on any future occasion. The rights and remedies of the Lender shall be cumulative and may
be pursued singly, successively, or together, in the sole discretion of the Lender.

 

VI.
EVENTS OF ACCELERATION. The occurrence of any of the following shall constitute an “Event of Acceleration” by the
Lender under this Note:

 

(a)
Borrower’s failure to pay any part of the principal or interest as and when due under this Note; or

 

(b)
Borrower’s becoming insolvent or not paying its debts as they become due.

 

VII.
ACCELERATION. Upon the occurrence of an Event of Acceleration under this Note, and in addition to any other rights and remedies
that Lender’s may have, Lender shall have the right, at its sole and exclusive option, to declare this Note immediately due
and payable.

 

    	Page 1 of 2

    	 

    

 

VIII.
SUBORDINATION. The Borrower’s obligations under this Promissory Note are subordinated to all indebtedness, if any, of the
Borrower, to any unrelated third party lender to the extent such indebtedness is outstanding on the date of this Note and such
subordination is required under the loan documents providing for such indebtedness.

 

IX.
WAIVERS BY BORROWER. All parties to this Note including the Borrower and any sureties, endorsers, and guarantors hereby waive
protest, presentment, notice of dishonor, and notice of acceleration of maturity and agree to continue to remain bound for the
payment of principal, interest and all other sums due under this Note notwithstanding any change or changes by way of release,
surrender, exchange, modification or substitution of any security for this Note or by way of any extension or extensions of time for
the payment of principal and interest; and all such parties waive all and every kind of notice of such change or changes and agree
that the same may be made without notice or consent of any of them.

 

XI.
GOVERNING LAW. This Note shall be governed by, and construed in accordance with, the laws of the State of Washington.

 

XII.
SUCCESSORS. All of the foregoing is the promise of Borrower and shall bind Borrower and Borrower’s successors, heirs and
assigns; provided, however, that Lender may not assign any of its rights or delegate any of its obligations hereunder without the
prior written consent of the holder of this Note.

 

IN
WITNESS WHEREOF, Borrower has executed this Promissory Note as of the day and year first above written.

 

	Borrower’s
    Signature:	/s/
    Sam Lai	Print:
    Hour Loop, Inc
	 	 	 
	Lender’s
    Signature:	/s/
    Sam Lai	Print:
    Sam Lai
	 	 	 
	Lender’s
    Signature:	/s/
    Sau Kuen Yu	Print:
    Sau Kuen Yu

 

    	Page 2 of 2PROMISSORY NOTE

$2,750,000.00January 3, 2022 

 

FOR VALUE RECEIVED, LFTD Partners Inc., a Nevada corporation ("LSFP"), and Lifted Liquids, Inc., an Illinois corporation and a wholly-owned subsidiary of LSFP ("Merger Sub") (LSFP and Merger Sub being referred to individually as a "Payor" and collectively as "Payors") HEREBY JOINTLY AND SEVERALLY PROMISE TO PAY to the order of Nicholas S. Warrender, a Wisconsin resident with his principal residence at 328 55th Street B, Kenosha, WI  53140 (“Payee”), the principal sum of TWO MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS AND 00/100 ($2,750,000.00), payable as set forth below.  Interest on this Promissory Note shall be calculated on the basis of actual number of days elapsed and a 365-day year and shall be at a rate per annum equal to two and one-half percent (2.50%) (the “Interest Rate”). This Promissory Note is being issued in accordance with Section 2 of that certain Agreement dated as of December 30, 2021, by and among Payors, Gerard M. Jacobs, William C. Jacobs, 95th Holdings, LLC, and Payee (the “Agreement”). Any capitalized term used but not defined herein shall have the meaning ascribed to such term as set forth in the Agreement.  

 

1.Principal and Interest Payment Dates. The principal of this Promissory Note shall be due and payable by Payors to Payee in six (6) payments in the following principal amounts on the following dates, respectively, in each case together with all interest accrued through such payment date:  

 

	Principal Payments

	Payment Dates

	$ 458,333

	June 30, 2022

	$ 458,333

	December 31, 2022

	$ 458,333

	June 30, 2023

	$ 458,333

	December 31, 2023

	$ 458,333

	June 30, 2024

	$ 458,335

	December 31, 2024

 

2. Voluntary Prepayments. This Promissory Note may, at the option of Payors, be prepaid in whole or in part, at any time and from time to time, without premium or penalty. 

3. Mandatory Prepayments. Within two (2) business days following the closing of any equity or debt capital raise by any Payor following the date of the Agreement in the amount of Eight Million Dollars ($8,000,000) or more, Payors shall be obligated to prepay all remaining principal and all accrued interest on this Promissory Note. 

 

4.Maximum Lawful Rate.  If any payment of interest hereunder in excess of the amount permitted by applicable law is received by Payee, the amount of such excess payment shall automatically be applied to reduce the principal amount outstanding hereunder in the order of maturity. 

 

5.Place of Payment.  Payments of principal and interest are payable in lawful money of the United States of America to Payee at Payee’s address listed above or at such other address as Payee may direct in writing to Payors.  

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6.Security.  Payors hereby covenant and agree that for so long as any obligations shall remain outstanding under this Promissory Note: 

 

(a) This Promissory Note shall be secured by a first lien security interest in all of the assets of Payors; and 

 

(b) This Promissory Note shall be secured by a pledge of: (i) all of the capital stock of Merger Sub; (ii) all of the common stock of Bendistillery Inc., Bend Spirits, Inc., and Ablis Holding Company that is owned by Payors; and (iii) all of the capital stock of any other entity owned by any Payor or any of its subsidiaries, pursuant to a Collateral Stock Pledge Agreement of even date herewith, between Payee, as Secured Party, and Payors, as Pledgors. 

 

7.Notice of Default.  Payors shall promptly notify Payee of any condition or event that constitutes an Event of Default as defined below. 

 

8.Events of Default. Each of the following occurrences shall constitute an “Event of Default” under this Promissory Note: 

 

(a)Payors fail to pay when due and payable any amount of principal or interest under this Promissory Note, and such failure to pay is not cured within ten (10) days; 

 

(b)Payors fail to perform or breach (other than a failure or breach which constitutes an Event of Default under another clause of this Section 8) in any material respect any of their obligations or the terms or provisions hereunder, and fail to cure such breach or failure within thirty (30) days following their receipt of notice from Payee describing such failure or breach;  

 

(c)Any Payor makes an assignment for the benefit of creditors or admits in writing its inability to pay its debts generally as they become due; or an order, judgment or decree is entered adjudicating any Payor bankrupt or insolvent; or any order for relief with respect to any Payor is entered under the Federal Bankruptcy Code; or any Payor petitions or applies to any tribunal for the appointment of a custodian, trustee, receiver or liquidator of such Payor or of any substantial part of the assets of such Payor, or commences any proceeding relating to such Payor under any bankruptcy reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction; or any such petition or application is filed, or any such proceeding is commenced, against any Payor and either (i) such Payor by any act indicates its approval thereof, consent thereto or acquiescence therein, or (ii) such petition, application or proceeding is not dismissed within 60 days. 

 

9.Acceleration. 

 

(a)If an Event of Default of the type described in Section 8(c) has occurred, the principal amount of this Promissory Note (together with all accrued interest hereon and all other amounts due and payable with respect hereto) shall become immediately due and payable without any action on the part of Payee, and Payors shall immediately pay to Payee all amounts due and payable with respect to this Promissory Note. 

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(b)If any other Event of Default has occurred and is continuing, Payee may declare the outstanding principal amount of this Promissory Note (together with all accrued interest thereon and all other amounts due and payable with respect thereto) to be immediately due and payable and may demand immediate payment of the outstanding principal amount of this Promissory Note (together with accrued interest thereon and all such other amounts then due and payable). 

 

(c)Payee shall also have any other rights which Payee may have pursuant to applicable law. 

 

(d)Payors hereby waive diligence, presentment, protest and demand and notice of protest and demand, dishonor and nonpayment of this Promissory Note and all other notices except as expressly provided herein, and expressly agree that this Promissory Note, or any payment hereunder, may be extended from time to time without in any way affecting the liability of Payors hereunder. 

 

10.No Waiver.  No delay or omission on the part of Payee in exercising any right hereunder shall operate as a waiver of any right under this Promissory Note. 

 

11.Amendment; No Assignment.  No amendment, modification, termination or waiver of any provision of this Promissory Note shall be effective unless the same shall be in writing and signed by Payors and Payee. Payee may not assign this Promissory Note without the prior written consent of Payors. 

 

12.Governing Law.  THIS PROMISSORY NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS WITHOUT REGARD TO ITS CONFLICT OF LAW PRINCIPLES. 

 

13.Costs of Collection.  If (a) the Promissory Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding; (b) an attorney is retained to represent Payee in any bankruptcy, reorganization, receivership, or other proceedings affecting creditors’ rights and involving a claim under the Promissory Note; (c) an attorney is retained to represent Payee in any other proceedings whatsoever in connection with the Promissory Note as a result of the action or inaction of Payors, then Payors shall pay to Payee all reasonable attorneys’ fees, costs and expenses incurred in connection therewith, in addition to all other amounts due hereunder.  

 

14.WAIVER OF JURY TRIAL.  EACH OF PAYORS AND PAYEE WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED IN CONNECTION HEREWITH OR HEREAFTER AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  ANY DISPUTES ARISING UNDER OR RELATING TO THIS PROMISSORY NOTE WILL BE LITIGATED ONLY IN THE STATE COURTS LOCATED IN LAKE COUNTY, ILLINOIS 

 

AND THE PARTIES HEREBY CONSENT TO THE PERSONAL JURISDICTION AND EXCLUSIVE VENUE OF THESE COURTS AND AGREE THAT ANY SUCH ACTION 

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WILL BE TRIED BEFORE THE COURT AND NOT BEFORE A JURY.

 

IN WITNESS WHEREOF, this Promissory Note is hereby executed and delivered as of the 3rd day of January, 2022. 

 

	LFTD PARTNERS INC.

	 

	LIFTED LIQUIDS, INC.

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	By

	/s/ Gerard M. Jacobs

	 

	By

	/s/ Gerard M. Jacobs

	 

	  Gerard M. Jacobs, CEO

	 

	 

	  Gerard M. Jacobs, on behalf

	 

	 

	 

	 

	   of the Board of Directors

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