Document:

CPI AEROSTRUCTURES, INC. 8-K 

 

Exhibit 10.1

 

WAIVER AND EIGHTH AMENDMENT

TO AMENDED AND RESTATED CREDIT AGREEMENT

WAIVER AND EIGHTH AMENDMENT TO AMENDED AND
RESTATED CREDIT AGREEMENT (this “Amendment”) entered into as of October 28, 2021 by and among CPI AEROSTRUCTURES,
INC. (the “Borrower”), BANKUNITED, N.A., a national banking association, as Sole Arranger, Agent and a Lender, DIME
COMMUNITY BANK, a New York banking corporation, as a Lender, and the other financial institutions from time to time parties thereto as
lenders (collectively, the “Lender” and each a “Lender”), and BANKUNITED, N.A., a national banking
association, as administrative agent and collateral agent for the Lender thereunder (in such capacities, the “Administrative
Agent” and the “Collateral Agent,” respectively and each an “Agent”).

WHEREAS, the Borrower, the Agent and
each Lender are parties to that Amended and Restated Credit Agreement dated as of March 24, 2016, as amended by that First Amendment and
Waiver to Amended and Restated Credit Agreement dated as of May 9, 2016, as further amended by that Second Amendment to Amended and Restated
Credit Agreement dated as of July 13, 2017, as further amended by that Third Amendment and Waiver to Amended and Restated Credit Agreement
dated as of August 15, 2018, as further amended by that Fourth Amendment dated as of December 20, 2018, as further amended by that Fifth
Amendment to Amended and Restated Credit Agreement dated as of June 25, 2019, as further amended by that Sixth Amendment and Waiver to
Amended and Restated Credit Agreement dated as of August 24, 2020 (the “Sixth Amendment”), and as further amended by
that Consent, Waiver and Seventh Amendment to Amended and Restated Credit Agreement dated as of May 11, 2021 (collectively, the “Agreement”);

WHEREAS, the Borrower has requested that
the Agent and each Lender (i) amend certain provisions of the Agreement including an extension of the maturity date of the Loans, (ii)
waive temporarily the Borrower’s failure to furnish timely to each Lender the audited consolidated financial statements of the Borrower
and its Subsidiaries for the fiscal year ended December 31, 2020 together with a related compliance certificate, (iii) waive temporarily
the Borrower’s failure to furnish timely to each Lender the consolidated financial statements of the Borrower and its Subsidiaries
for the fiscal quarters ended March 31, 2021, June 30, 2021 and September 30, 2021, each together with a related compliance certificate
and (iv) waive certain covenant non-compliance under the Agreement; and

WHEREAS, the Agent and each Lender are
willing to accede to such request to (i) amend certain provisions of the Agreement and (ii) grant the requested waivers, subject to the
terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the
premises and the agreements hereinafter set forth and for other good and valuable consideration, the parties hereto hereby agree as follows:

1.                 
All capitalized terms used herein, unless otherwise defined herein, have the same meanings provided therefor in the Agreement.
This Amendment constitutes a Loan Document.

    	 

    	 

    

2.                 
 Subject to the terms and conditions hereof, the Agreement is hereby amended as follows:

(a)              
Section 1.1 of the Agreement (Defined Terms) is amended by deleting the following definitions and substituting the following therefor:

“Aggregate Revolving Credit Maximum
Amount”: shall mean the principal amount of up to $21,000,000.00.

“Revolving Credit Termination
Date”: December 31, 2022.

“Term Loan Maturity Date”:
December 31, 2022.

(b)              
Section 2.7 of the Agreement (Repayment of Term Loan) is amended by deleting same and substituting the following therefor:

“2.7 Repayment of Term Loan.
The principal balance of the Term Loan shall be payable to the Administrative Agent for the account of each Term Lender (in accordance
with each Term Lender’s respective Term Loan Percentage) (i) in consecutive monthly installments of principal, in the principal
amounts set forth on the table below, such payments commencing on May 1, 2016 with each succeeding installment being due on the first
Business Day of each month thereafter until December 1, 2022, (ii) in the amount of $750,000 in three installments of $250,000 on the
last Business Day of each of November 2021, December 2021 and March 2022, and (iii) as a final payment on the Term Loan Maturity Date
in an amount equal to the then outstanding principal balance of the Term Loan. Notwithstanding the foregoing, upon Borrower’s receipt
of a Contract Termination Payment (if any), a A-10 2015 REA Payment or Net Offering Proceeds, Borrower shall then either (1) prepay the
Term Loan (which in the case of Eurodollar Term Loans shall be on the last day of the current Interest Period) in the principal amount
equal to the applicable Designated Amount plus all accrued and unpaid interest through the date of prepayment, or (2) at Borrower’s
request (subject to Agent’s approval), deposit into a bank account held by and pledged (as additional collateral for the Loans and
any related interest rate swap obligations, if applicable) to the Agent on behalf of the Term Lenders, on terms and documentation satisfactory
to the Agent and its counsel, an amount equal to the applicable Designated Amount. Each Term Lender shall receive its Term Loan Percentage
of each installment of principal paid under the Term Loan.

	First Business Day

Month and Year	Principal Amortization

Amount per Month
	May 2016 – April 2017	$41,667.67
	May 2017 – April 2018	$125,000.00
	May 2018 – August 2018	$166,666.67
	September 2018 – June 2021	$175,000.00
	July 2021 – December 2022	$200,000.00”
	 	 

    	 

    	 

    

(c)              
Section 7.1(a) of the Agreement (Minimum Debt Service Coverage Ratio) is amended by deleting same and substituting the following
therefor:

“(a)Minimum Debt Service
Coverage Ratio. Permit the Debt Service Coverage Ratio of the Borrower at the end of each fiscal quarter for the DSCR Period (defined
below) then ended to be less than the corresponding ratio set forth below. “Debt Service Coverage Ratio” shall mean
(i) the sum of EBITDA plus amortization of stock compensation expense, minus Restricted Payments minus unfinanced Capital Expenditures,
divided by (ii) the sum of scheduled principal and Financing Lease payments plus Interest Expense; in each case as determined in
accordance with GAAP consistently applied. “DSCR Period” shall mean (y) for the fiscal periods ended 9/30/20 and 12/31/20,
the fiscal quarter then ended; and (z) for all other fiscal periods, the trailing four quarter period then ended.

	Quarter End	Minimum DSCR
	Closing – 12/31/17	1.5 to 1.0
	3/31/18 – 6/30/20	waived
	9/30/20 – 12/31/20	1.5 to 1.0
	3/31/21 	waived
	6/30/21 and thereafter	1.5 to 1.0”
	 	 

(e)              
Section 7.1(b) of the Agreement (Maximum Leverage Ratio) is amended by deleting same and substituting the following therefor:

“(b)Maximum Leverage Ratio.
Permit the Leverage Ratio of the Borrower at the end of each fiscal quarter determined for the trailing four-quarter period then ended
(or in the case of the fiscal quarter ended March 31, 2021, determined on an annualized basis for the three-quarter period then ended)
to be more than the corresponding ratio set forth below (subject to adjustment pursuant to Section 3.4(i)); “Leverage
Ratio” shall mean Funded Debt, divided by EBITDA:

	Fiscal Quarter End	Maximum Leverage Ratio
	6/30/16 and 9/30/16	3.5 to 1.0
	12/31/16 – 12/31/17	3.0 to 1.0
	3/31/18 – 12/31/20	waived
	3/31/21 	5.0 to 1.0
	6/30/21	4.75 to 1.0
	9/30/21 	4.25 to 1.0
	12/31/21 and thereafter	4.0 to 1.0”

 

(f)               
Section 7.1(e) of the Agreement (Minimum Liquidity) is hereby deleted.

(g)              
Schedule I of the Agreement is hereby amended by deleting same and substituting the attached Schedule I therefor.

(h)              
Schedule 4.18 of the Agreement is hereby amended by deleting the same and substituting the attached Schedule 4.18
therefor.

(i)                
Schedule 7.2 of the Agreement is hereby amended by deleting the same and substituting the attached Schedule 7.2 therefor.

    	 

    	 

    

(j)                
Schedule 7.3 of the Agreement is hereby amended by deleting the same and substituting the attached Schedule 7.3
therefor.

(k)              
Except as amended herein, all other provisions of the Agreement and the Loan Documents shall remain in full force and effect and
are hereby ratified and confirmed.

3.                 
Each Lender and the Borrower agree that as of October 28, 2021 and prior to the Effective Date (defined below), the aggregate outstanding
principal amount of: (a) the Revolving Credit Loans as evidenced by Revolving Credit Notes is $21,000,000.00, and (b) the Term Loan as
evidenced by the corresponding Term Notes is $5,383,333.32.

4.                 
The Borrower hereby represents and warrants to each Lender after giving effect to this Amendment that:

(a)              
Each and every of the representations and warranties set forth in the Agreement is true as of the date hereof and with the same
effect as though made on the date hereof, and is hereby incorporated herein in full by reference as if fully restated herein in its entirety.

(b)              
No Default or Event of Default and no event or condition which, with the giving of notice or lapse of time or both, would constitute
such a Default or Event of Default, now exists or would exist after giving effect hereto.

(c)              
There are no defenses or offsets to the Borrower’s obligations under the Agreement, the Notes or the Loan Documents or any
of the other agreements in favor of the Lender referred to in the Agreement.

(d)              
The WHEREAS clauses set forth hereinabove are true and correct.

5.                 
Non-compliance by the Borrower with the following covenants is hereby waived by the Agent and each Lender, solely, in the case
of subsection (a) and (b), for the period set forth therein:

(a)              
Section 6.1(a) of the Credit Agreement: The Borrower’s late submission to each Lender of the audited consolidated
financial statements of the Borrower and its Subsidiaries for the fiscal year ended December 31, 2020 together with a related compliance
certificate is waived until November 30, 2021.

(b)              
Section 6.1(b) of the Credit Agreement: The Borrower’s late submission to each Lender of the quarterly consolidated
financial statements of the Borrower and its Subsidiaries (i) for the fiscal quarter ended March 31, 2021 together with a related compliance
certificate is waived until December 31, 2021, (ii) for the fiscal quarter ended June 30, 2021 together with a related compliance certificate
is waived until January 31, 2022, and (iii) for the fiscal quarter ended September 30, 2021 together with a related compliance certificate
is waived until March 31, 2022.

(c)              
Section 7.1(a) of the Credit Agreement: The Borrower’s non-compliance with this Section is waived for the fiscal quarters
ended December 31, 2020 and March 31, 2021.

(d)              
Section 7.1(d) of the Credit Agreement: The Borrower’s non-compliance with this Section is waived for the fiscal
quarter ended December 31, 2020.

    	 

    	 

    

6.                 
It is expressly understood and agreed that all collateral security for the Loans and other extensions of credit set forth in the
Agreement prior to the amendment provided for herein is and shall continue to be collateral security for the Loans, obligations and other
extensions of credit provided in the Agreement (as herein amended) and the Loan Documents.

7.                 
The amendments and waivers set forth herein are limited precisely as written, based on the facts specified, for the periods stated
and shall not be deemed to (a) be a consent to or a waiver of, or future waiver of any further violation or non-compliance with any of
the indicated covenants or any other term or condition of the Agreement, the Loan Documents or any of the documents referred to therein,
or (b) prejudice any right or rights which the Lender may now have or may have in the future under or in connection with the Agreement,
the Loan Documents or any documents referred to therein. Whenever the Agreement is referred to in this Amendment, the Loan Documents or
any of the instruments, agreements or other documents or papers executed and delivered in connection therewith, it shall be deemed to
mean the Agreement as modified by this Amendment.

8.                 
The Borrower agrees to pay on demand, and the Agent may charge any deposit or loan account(s) of the Borrower, all expenses (including
reasonable attorney’s fees) incurred by the Lender in connection with the negotiation and preparation of this Amendment and all
instruments, agreements and other documents executed or delivered in connection herewith.

9.                 
In consideration for the Lenders entering into this Amendment, the Borrower hereby agrees to pay to the Administrative Agent, for
the ratable benefit of the Lenders, a fee equal to $250,000, which fee shall be deemed fully earned and nonrefundable as of the Effective
Date if, and only if, the Borrower (a) does not repay the Obligations in full and terminate the Commitments, or (b) is not ready, willing
and able to repay the Obligations in full and terminate the Commitments, on or prior to December 31, 2021. If earned, such fee will be
payable in cash on December 31, 2021; provided, however, that, at the Borrower’s option, if earned, such fee may be
paid in kind and accrued and capitalized on December 31, 2021 rather than paid in cash. For the avoidance of doubt, the Borrower will
be deemed ready, willing and able to repay the Obligations in full and terminate the Commitments if (x) it has the immediate ability and
intent to close a transaction providing for the payment of all Obligations payable to the Administrative Agent and the Lenders pursuant
to the Agreement and for the termination of the Commitments on or prior to December 31, 2021 and (y) any failure to close such transaction
by December 31, 2021 results solely from delay caused by the Administrative Agent or the Lenders (or their respective representatives).

    	 

    	 

    

10.              In
consideration of the accommodations provided by the Agent and the Lender under this Amendment, the Borrower and the Guarantors (by
virtue of their undersigned consent), on behalf of themselves and for each of their direct and indirect Affiliates, successors,
predecessors and assigns, and their present and former legal representatives, employees, agents, and attorneys, and their trustees,
successors and assigns (collectively, the “Releasors”), hereby knowingly, voluntarily, intentionally,
unconditionally and irrevocably waive, release and forever discharge (the “Release”) the Agent and the Lender and
the Agent and the Lender’s Affiliates and subsidiaries (collectively, the “Lender Parties”) from and
against any and all rights, claims, counterclaims, demands, suits, actions or causes of action against the Agent or the Lender or
the other Lender Parties, whether known or unknown, contingent or absolute, liquidated or unliquidated or otherwise, arising out of
the Agent or the Lender’s or the other Lender Parties’ actions or inactions in connection with the Loans prior to the
execution and delivery of this Amendment prior to the execution and delivery of this Amendment, as well as any and all rights of
setoff, defenses, claims, counterclaims, demands, suits, actions, and causes of action, in each case in connection with the Loans
prior to the execution and delivery of this Amendment, and any other bar to the enforcement of the Agreement, the Notes or any of
the other Loan Documents which shall have accrued prior to the execution and delivery of this Amendment. In any litigation arising
from or related to an alleged breach of the Release, the Release may be pleaded as a defense, counterclaim or cross claim and shall
be admissible into evidence without foundation testimony whatsoever. The Releasors expressly covenant and agree that the Release
shall be binding in all respects upon their respective successors, assigns and transferees including, without limitation, any
trustee in bankruptcy, and shall inure to the benefit of the successors and assigns of the Agent, the Lender and the other Lender
Parties.

11.             
If any of the Borrower or the Guarantors shall (a) file with any bankruptcy or similar court or be the subject of any petition
under any Debtor Relief Law; (b) be the subject of an order for relief under any Debtor Relief Law; (c) file or be the subject of a petition
seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any present or future
Debtor Relief Law; (d) seek, consent to or acquiesce in the appointment of a trustee, receiver, conservator or liquidator; or (e) be the
subject of an order, judgment or decree entered by a court of competent jurisdiction approving a petition filed against any of the Borrower
or the Guarantors for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any
present or future Debtor Relief Law, then the Agent shall thereupon be entitled to relief from any automatic stay imposed by Section 362
of the United States Bankruptcy Code or from any other stay or suspension of remedies of the rights and remedies otherwise available to
the Agent under the Agreement or any other Loan Documents, and each of the Borrower and the Guarantors specifically acknowledges that
“cause” exists for such relief within the meaning of Section 362(d) of the United States Bankruptcy Code and agrees not to
oppose any motion by the Agent for relief from the automatic stay imposed by Section 362.

12.             
This Amendment shall become effective on such date as all of the following conditions shall be satisfied retroactive to the date
set forth in the first paragraph hereof (the “Effective Date”):

(a)              
Loan Documents. The Administrative Agent shall have received four (4) original counterparts of this Amendment (inclusive
of all exhibits, and attachments), executed and delivered by a duly authorized officer of the Borrower and the Guarantors, with a counterpart
or a conformed copy for each Lender, together with an executed original of a Second Amended and Restated Revolving Credit Note in favor
of each Lender.

(b)               Secretary’s
Certificate of the Borrower. The Administrative Agent shall have received, with a counterpart for each Lender, a certificate,
dated as of the Effective Date, executed by the Secretary or any Assistant Secretary of the Borrower certifying (a) a copy of the
resolutions, in form and substance satisfactory to the Administrative Agent, of the Board of Directors of the Borrower authorizing
the execution, delivery and performance of this Amendment and (b) the incumbency and signature of the officers of the Borrower
executing this Amendment and any other Loan Document, which certificate shall be in form and substance satisfactory to the
Administrative Agent and shall state that the resolutions thereby certified have not been amended, modified, revoked or
rescinded.

    	 

    	 

    

(c)              
Secretary’s Certificates of the Guarantors. The Administrative Agent shall have received, with a counterpart for each
Lender, a certificate, dated as of the Effective Date, executed by the Secretary or any Assistant Secretary of each Guarantor certifying
(a) a copy of the resolutions, in form and substance satisfactory to the Administrative Agent, of the Board of Directors of such Guarantor
authorizing the execution, delivery and performance of this Amendment and (b) the incumbency and signature of the officers of such Guarantor
executing this Amendment and any other Loan Document, which certificate shall be in form and substance satisfactory to the Administrative
Agent and shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded.

(d)              
Consents, Licenses and Approvals. All governmental and material third party approvals necessary in connection with the execution,
delivery and performance of the Loan Documents shall have been obtained and be in full force and effect or shall continue to be in full
force and effect.

(e)              
Litigation. Except as set forth on Schedule 4.6 of the Agreement, there shall be no litigation or administrative
proceeding or proposed or pending regulatory changes in law or regulations applicable to the Borrower or its Subsidiaries, which, if adversely
determined, could reasonably be expected to have a Material Adverse Effect or a material adverse effect on the ability of the parties
to consummate the execution, delivery and performance of the Loan Documents and the Borrowings hereunder.

(f)               
Indebtedness. As of the Effective Date, the Borrower and its Subsidiaries shall not have outstanding Indebtedness for borrowed
money or preferred stock other than (i) Indebtedness under the Loan Documents, (ii) Indebtedness permitted under the Agreement, and (iii)
Indebtedness as set forth on Schedule 7.2 of the Agreement.

(g)              
Documentation. The Lenders have received such other documents and other instruments or certificates as they may reasonably
request.

(h)              
Material Adverse Effect. Since June 30, 2020, there has been no development or event which has had or would reasonably be
expected to have a Material Adverse Effect, except (i) the Restatement (as defined in the Sixth Amendment) and (ii) the Borrower’s
required restatement of its financial statements as of the end of each fiscal quarter for the fiscal year ended 2020 and for fiscal year
ended 2020 due to certain incorrect inventory values resulting from inventory costing errors, adjustments to inventory reserves and provisions
for loss contracts.

(i)                
Execution by Lenders. This Amendment shall have been executed and delivered by each Lender hereunder.

    	 

    	 

    

13.             
 This Amendment is dated as of the date set forth in the first paragraph hereof and shall be effective (after satisfaction of the
conditions set forth in paragraph 12 above) on the date of execution by the Agent and the Lenders, retroactive to such date.

14.             
This Amendment shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York.

15.             
This Amendment may be executed in counterparts, each of which shall constitute an original, and each of which taken together shall
constitute one and the same agreement.

[Signature Page to Follow]

 

    	 

    	 

    

SIGNATURE PAGE

 

Waiver and Eighth Amendment to Amended and Restated
Credit Agreement

IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered by their respective duly authorized officers as of the date first above written.

	 	CPI AEROSTRUCTURES, INC.,
	 	as Borrower
	 	 	 
	 	 	 
	 	By:	/s/ Andrew Davis
	 	 	Name: Andrew Davis
	 	 	Title: CFO
	 	 	 
	 	 	 
	 	BANKUNITED, N.A.,
	 	as Arranger, Agent and a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Brian McGahee
	 	 	Name: Brian McGahee
	 	 	Title: SVP
	 	 	 
	 	 	 
	 	BANKUNITED, N.A.,
	 	as Administrative Agent and Collateral Agent
	 	 	 
	 	 	 
	 	By:	/s/ Brian McGahee
	 	 	Name: Brian McGahee
	 	 	Title: SVP
	 	 	 
	 	 	 
	 	DIME COMMUNITY BANK,
	 	as a Lender
	 	 	 
	 	By:	/s/ JoAnn
Bello
	 	 	Name: JoAnn
Bello
	 	 	Title: Senior Vice President

    	 

    	 

    

Each of the Guarantors indicated below hereby
consent to this Amendment and acknowledge its continuing liability under its respective Guaranty with respect to the Agreement, as amended
hereby, including (without limitation) the Loan Documents executed in connection with the Obligations and all other documents, instruments
and agreements executed pursuant thereto or in connection therewith, without offset, defense of counterclaim, any such offset, defense
or counterclaim as may exist being hereby irrevocably waived by each Guarantor.

	 	GUARANTORS:
	 	 
	 	 
	 	WELDING METALLURGY, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Andrew Davis
	 	 	Name: Andrew Davis
	 	 	Title: 
	 	 	 
	 	 	 
	 	COMPAC DEVELOPMENT
	 	CORPORATION
	 	 	 
	 	 	 
	 	By:	/s/ Andrew Davis
	 	 	Name: Andrew Davis
	 	 	Title: CFO

 

    	 

    	 

    

SCHEDULE I

Commitments

[omitted pursuant to Item
601(a)(5) of Regulation S-K]

 

    	 

    	 

    

SCHEDULE 4.18

Insurance

 

 

[omitted pursuant to Item
601(a)(5) of Regulation S-K]

 

    	 

    	 

    

SCHEDULE 7.2

Existing Indebtedness and Subordinated Debt

[omitted pursuant to Item 601(a)(5) of Regulation S-K]

 

 

 

 

    	 

    	 

    

SCHEDULE 7.3

Existing Liens

[omitted pursuant to Item 601(a)(5) of Regulation
S-K]Exhibit
4.1

 

NEITHER
THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON
EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

 

HOUR
LOOP, INC. 

 

WARRANT

 

	Warrant
    No. 	Original
    Issue Date: [ ], 2021

 

Hour
Loop, Inc., a Delaware corporation (the “Company”), hereby certifies that, as partial compensation for its services
as an underwriter to the Company, EF Hutton, division of Benchmark Investments, Inc. or its registered assigns (the “Holder”),
is entitled to purchase from the Company up to a total of [ ]1 shares of the Company’s common stock, par value $0.0001
per share (the “Common Stock”), at any time and from time to time from and after 181 days following the effective
date of the Registration Statement on Form S-1 (File No. 333-[ ]), and through and including [ ], 2026, the fifth anniversary of such
effective date (the “Expiration Date”), in accordance with FINRA Rule 5110, and subject to the following terms and
conditions:

 

1.
Definitions. As used in this Warrant, the following terms shall have the respective definitions set forth in this Section 1.

 

 

1
5% of the shares of common stock sold in the offering.

 

    	 

     

    

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 144.

 

“Business
Day” means any day except Saturday, Sunday and any day which is a federal legal holiday or a day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any securities into which such common stock
may hereafter be reclassified or for which it may be exchanged as a class.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Exercise
Price” means $[ ]2, subject to adjustment in accordance with Section 9.

 

“Fundamental
Transaction” means any of the following: (1) the Company effects any merger or consolidation of the Company with or into another
Person, (2) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (3) any
tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are
permitted to tender or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for
other securities, cash or property.

 

“New
York Courts” means the state and federal courts sitting in the State of New York.

 

“Original
Issue Date” means the Original Issue Date first set forth on the first page of this Warrant.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Prospectus”
means the prospectus, dated [ ], 2021, filed with the Securities and Exchange Commission pursuant to Rule 424 promulgated under the
Securities Act.

 

“Rule
144” means Rule 144 promulgated by the Securities and Exchange Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter adopted by the Securities and Exchange Commission having substantially
the same effect as such Rule.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Subsidiary”
means any “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X promulgated by the Securities and Exchange
Commission under the Exchange Act.

 

 

2
125% of the public offering price per share.

 

    	 

     

    

 

“Trading
Day” means (i) a day on which the Common Stock is traded on a Trading Market, or (ii) if the Common Stock is not quoted on
any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by the Pink Sheets LLC (or any
similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is
not listed or quoted as set forth in (i) or (ii) hereof, then Trading Day shall mean a Business Day.

 

“Trading
Market” means whichever of the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market,
the NASDAQ Capital Market or OTC Markets Group electronic quotation system on which the Common Stock is listed or quoted for trading
on the date in question.

 

“Underlying
Shares” means the shares of Common Stock issuable upon exercise of this Warrant.

 

2. Registration
of Warrant. The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder
of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other
purposes, absent actual notice to the contrary.

 

3. Registration
of Transfers. The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender of this
Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company at its address specified herein. Upon
any such registration or transfer, a new Warrant to purchase Common Stock, in substantially the form of this Warrant (any such new Warrant,
a “New Warrant”), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New
Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The
acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations
of a holder of a Warrant. Notwithstanding the foregoing, neither this Warrant nor any shares of Common Stock issuable upon exercise of
this Warrant, shall be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative,
put, or call transaction that would result in the effective economic disposition of this Warrant, or any security issuable upon exercise
of this Warrant, by any person for a period of 180 days immediately following the effective date of the Registration Statement on Form
S-1 (File No. 333-[ ]), except as provided in FINRA Rule 5110(g)(2).

 

4. Exercise
and Duration of Warrants. This Warrant shall be exercisable by the registered Holder at any time and from time to time from and after
180 days following the effective date of the Registration Statement on Form S-1 (File No. 333-[ ]) (the “Effective Date”),
through and including the Expiration Date, in accordance with FINRA Rule 5110. At 6:30 p.m., New York City time on the Expiration
Date, the portion of this Warrant not exercised prior thereto shall be and become void and of no value. The Company may not call or redeem
any portion of this Warrant without the prior written consent of the affected Holder. Neither this Warrant nor any shares of Common Stock
issuable upon exercise of this Warrant, shall be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging,
short sale, derivative, put, or call transaction that would result in the effective economic disposition of this Warrant, or any security
issuable upon exercise of this Warrant, by any person for a period of 180 days immediately following the effective date of the Registration
Statement on Form S-1 (File No. 333-[ ]), except as provided in FINRA Rule 5110(g)(2).

 

    	 

     

    

 

5. Delivery
of Common Stock.

 

(a) To
effect exercises hereunder, the Holder shall not be required to physically surrender this Warrant unless all of the Warrant Shares represented
by this Warrant are being exercised. Upon delivery of the Exercise Notice (in the form attached hereto) to the Company (with the attached
Warrant Shares Exercise Log) at its address for notice set forth herein and upon payment of the Exercise Price multiplied by the number
of Warrant Shares that the Holder intends to purchase hereunder, the Company shall promptly (but in no event later than two Trading Days
after the Date of Exercise (as defined herein)) issue and deliver to the Holder, a certificate for the Warrant Shares issuable upon such
exercise. The Company shall, upon request of the Holder and subsequent to the date on which a registration statement covering the resale
of the Warrant Shares has been declared effective by the Securities and Exchange Commission, use its reasonable best efforts to deliver
Warrant Shares hereunder electronically through the Depository Trust Corporation or another established clearing corporation performing
similar functions, if available, provided, that, the Company may, but will not be required to change its transfer agent if its
current transfer agent cannot deliver Warrant Shares electronically through the Depository Trust Corporation. A “Date of Exercise”
means the date on which the Holder shall have delivered to the Company: (i) the Exercise Notice (with the Warrant Shares Exercise
Log attached to it), appropriately completed and duly signed and (ii) if applicable, payment of the Exercise Price for the number of
Warrant Shares so indicated by the Holder to be purchased.

 

(b) If
by the second Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner required
pursuant to Section 5(a), then the Holder will have the right to rescind such exercise.

 

(c) If
by the second Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner required
pursuant to Section 5(a), and if after such second Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases
(in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant
Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (1) reimburse
the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of
Common Stock or Warrants so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company
was required to deliver to the Holder in connection with the exercise at issue by (B) the closing bid price of the shares of Common Stock,
on the Date of Exercise and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant
Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued
had the Company timely complied with its exercise and delivery obligations hereunder. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In.

 

    	 

     

    

 

(d) The
Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective
of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery
of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination,
or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation
of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the
Company to the Holder in connection with the issuance of Warrant Units. Nothing herein shall limit a Holder’s right to pursue any
other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver certificates representing Warrant Shares upon exercise
of the Warrant as required pursuant to the terms hereof.

 

6. Charges,
Taxes and Expenses. Issuance and delivery of Warrant Shares upon exercise of this Warrant shall be made without charge to the Holder
for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required
to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or
Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax liability that may arise as a result
of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

 

7. Replacement
of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt
of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity (which shall
not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable
regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant is requested
as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent
to the Company’s obligation to issue the New Warrant.

 

8. Reservation
of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized
but unissued and otherwise unreserved shares of Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise
of this Warrant as herein provided, the number of shares of Common Stock which are then issuable and deliverable upon the exercise of
this entire Warrant, free from preemptive rights or any other contingent purchase rights of Persons other than the Holder (taking into
account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall,
upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued
and fully paid and nonassessable.

 

9. Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from
time to time as set forth in this Section 9.

 

    	 

     

    

 

(a) Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock
or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding
shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a smaller number of
shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares
of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant
to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

 

(b) Fundamental
Transactions. If, at any time while this Warrant is outstanding there is a Fundamental Transaction, then the Holder shall have the
right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have
been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction,
the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant (the “Alternate Consideration”).
For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction,
and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value
of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash
or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental Transaction. At the Holder’s option and request, any successor
to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant substantially in the form
of this Warrant and consistent with the foregoing provisions and evidencing the Holder’s right to purchase the Alternate Consideration
for the aggregate Exercise Price upon exercise thereof. The terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (b) and insuring
that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental
Transaction.

 

(c) Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 9, the number of Warrant Shares
that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the
aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price
in effect immediately prior to such adjustment.

 

(d) Calculations.
All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the
Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

    	 

     

    

 

(e) Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will promptly compute
such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement
of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant
(as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment
is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s
Transfer Agent.

 

(f) Notice
of Corporate Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect
of its Common Stock, including, without limitation, any granting of rights or warrants to subscribe for or purchase any capital stock
of the Company or any Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval
for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company,
then the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction (but only to the
extent such disclosure would not result in the dissemination of material, non-public information to the Holder) at least 10 calendar
days prior to the applicable record or effective date on which a Person would need to hold Common Stock in order to participate in or
vote with respect to such transaction, and the Company will take all steps reasonably necessary in order to insure that the Holder is
given the practical opportunity to exercise this Warrant prior to such time so as to participate in or vote with respect to such transaction;
provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action
required to be described in such notice.

 

10. Payment
of Exercise Price. The Holder may pay the Exercise Price in one of the following manners:

 

(a) Cash
Exercise. The Holder may deliver immediately available funds; or

 

(b) Cashless
Exercise. The Holder may notify the Company in an Exercise Notice of its election to utilize cashless exercise, in which event the
Company shall issue to the Holder the number of Warrant Units determined as follows:

 

X
= Y [(A-B)/A]

 

where:

 

X
= the number of Warrant Shares to be issued to the Holder.

 

Y
= the number of Warrant Shares with respect to which this Warrant is being exercised.

 

A
= the average of the daily volume weighted average price for the Common Stock for the five Trading Days immediately prior to (but not
including) the Exercise Date.

 

B
= the Exercise Price.

 

For
purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued
in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares
shall be deemed to have commenced, on the date this Warrant was originally issued.

 

    	 

     

    

 

11. Limitations
on Exercise. Notwithstanding anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the
Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following
such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates
and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section
13(d) of the Exchange Act, does not exceed 9.99% of the total number of issued and outstanding shares of Common Stock (including for
such purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. This provision shall not restrict
the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities or
other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 9 of this Warrant.
This restriction may not be waived. Notwithstanding anything to the contrary contained in this Warrant, (a) no term of this Section may
be waived by any party, nor amended such that the threshold percentage of ownership would be directly or indirectly increased, (b) this
restriction runs with the Warrant and may not be modified or waived by any subsequent holder hereof and (c) any attempted waiver, modification
or amendment of this Section will be void ab initio.

 

12. No
Fractional Shares. No fractional Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any fractional
shares which would, otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the closing
price of one share of Common Stock as reported by the applicable Trading Market on the date of exercise, or round up to the nearest whole
share of Common Stock.

 

13. Notices.
Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall be in
writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number specified in this Section prior to 6:30 p.m. (New York City time) on a Trading Day,
(ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any
Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service, or
(iv) upon actual receipt by the party to whom such notice is required to be given. The addresses for such communications shall be:
(i) if to the Company, to Hour Loop, Inc., Attn: Chief Executive Officer, Facsimile No.: [] (or such other address as the
Company shall indicate in writing in accordance with this Section), or (ii) if to the Holder, to the address or facsimile number
appearing on the Warrant Register or such other address or facsimile number as the Holder may provide to the Company in accordance
with this Section.

 

    	 

     

    

 

14.
Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon 10 days’ notice to the Holder, the Company
may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting
from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any
new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor warrant agent
under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant
agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register.

 

15. Miscellaneous.

 

(a) No
Rights as a Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights, dividends
or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 5 except as expressly set forth
in Section 9. Without limiting any rights of a Holder to receive Warrant Shares on a “cashless exercise” pursuant to Section
10 (b) or to receive cash payments pursuant to Section 5(c) and 9(b), in no event shall the Company be required to net cash settle an
exercise of this warrant.

 

(b) This
Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject to the
preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal
or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed by the Company and
the Holder and their successors and assigns. The foregoing sentence shall be subject to the restrictions on waivers and amendments set
forth in Section 11 of this Warrant.

 

(c) All
questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and
enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.
Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of this Warrant and the transactions
herein contemplated (“Proceedings”) (whether brought against a party hereto or its respective Affiliates, employees
or agents) shall be commenced exclusively in the New York Courts. Each party hereto hereby irrevocably submits to the exclusive jurisdiction
of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject
to the jurisdiction of any New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party
hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a
copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect
for notices to it under this Warrant 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. Each
party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any
legal proceeding arising out of or relating to this Warrant or the transactions contemplated hereby. If either party shall commence a
Proceeding to enforce any provisions of this Warrant, then the prevailing party in such Proceeding shall be reimbursed by the other party
for its attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding.

 

(d) The
headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of
the provisions hereof.

 

(e) In
case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt
in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon
so agreeing, shall incorporate such substitute provision in this Warrant.

 

(f) Prior
to exercise of this Warrant, the Holder hereof shall not, by reason of being a Holder, be entitled to any rights of a stockholder with
respect to the Common Stock.

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

 

	 	HOUR
    LOOP, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

     

    

 

EXERCISE
NOTICE

HOUR
LOOP, INC.

WARRANT
DATED [ ], 2021

 

The
undersigned Holder hereby irrevocably elects to purchase shares of Common Stock pursuant to the above referenced Warrant. Capitalized
terms used herein and not otherwise defined have the respective meanings set forth in the Warrant.

 

	(1)	The undersigned Holder hereby exercises its right to purchase __________ shares of Common Stock pursuant to the Warrant.
	 	 
	(2)	The
    holder shall pay the sum of $ to the Company in accordance with the terms of the Warrant.
	 	 
	(3)	Pursuant
    to this Exercise Notice, the Company shall deliver to the holder Common Stock in accordance with the terms of the Warrant.
	 	 
	(4)	By
    its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in giving effect to the exercise
    evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (determined in accordance
    with Section 13(d) of the Securities Exchange Act of 1934) permitted to be owned under Section 11 of the Warrant to which this notice
    relates.

 

	Dated: 	 	 	Name of Holder:
	 	 	 	 	 
	 	 	 	(Print)	 
	 	 	 	 	    
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	 	 	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

 

    	 

     

    

 

Warrant
Shares Exercise Log

 

	Date	 	Number of Warrant Shares Available to be Exercised	 	Number of Warrant Shares Exercised	 	Number of Warrant Shares Remaining to be Exercised
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 

     

    

 

HOUR
LOOP, INC.

WARRANT
DATED [ ], 2021

WARRANT
NO.

 

FORM
OF ASSIGNMENT

 

[To
be completed and signed only upon transfer of Warrant]

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto _____________________ the right represented by the above-captioned
Warrant to purchase ________ shares of Common Stock to which such Warrant relates and appoints _________________ attorney to transfer
said right on the books of the Company with full power of substitution in the premises.

 

	Dated:	 	 	 
	 	 	 	 
	 	 	 	(Signature
    must conform in all respects to name of holder as specified on the face of the Warrant)
	 	 	 	 
	 	 	 	 
	 	 	 	Address
    of Transferee
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	In
    the presence of:

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