Document:

ex_193485.htm

 

Exhibit 10.7

 

	
			

				
			 

			U.S. Small Business Administration

			 

			NOTE

			 

			(SECURED DISASTER LOANS)

				
			Date: 06.24.2020

			
	 	 	
			Loan Amount: $150,000.00

			
	 	 	
			Annual Interest Rate: 3.75%

			
	 	 	 
	SBA Loan # 2299368007 	 	Application #3304243644

 

	 	
			1.

				
			PROMISE TO PAY: In return for a loan, Borrower promises to pay to the order of SBA the amount of one hundred and fifty thousand  and 00/100 Dollars ($150,000.00), interest on the unpaid principal balance, and all other amounts required by this Note.

			

 

	 	
			2.

				
			DEFINITIONS: A) “Collateral” means any property taken as security for payment of this Note or any guarantee of this Note. B) “Guarantor” means each person or entity that signs a guarantee of payment of this Note. C) “Loan Documents” means the documents related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral.

			

 

	 	
			3.

				
			PAYMENT TERMS: Borrower must make all payments at the place SBA designates. Borrower may prepay this Note in part or in full at any time, without notice or penalty. Borrower must pay principal and interest payments of $731.00 every month beginning Twelve (12) months from the date of the Note. SBA will apply each installment payment first to pay interest accrued to the day SBA receives the payment and will then apply any remaining balance to reduce principal. All remaining principal and accrued interest is due and payable Thirty (30) years from the date of the Note.

			

 

	 	
			4.

				
			DEFAULT: Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower: A) Fails to comply with any provision of this Note, the Loan Authorization and Agreement, or other Loan Documents; B) Defaults on any other SBA loan; C) Sells or otherwise transfers, or does not preserve or account to SBA’s satisfaction for, any of the Collateral or its proceeds; D) Does not disclose, or anyone acting on their behalf does not disclose, any material fact to SBA; E) Makes, or anyone acting on their behalf makes, a materially false or misleading representation to SBA; F) Defaults on any loan or agreement with another creditor, if SBA believes the default may materially affect Borrower’s ability to pay this Note; G) Fails to pay any taxes when due; H) Becomes the subject of a proceeding under any bankruptcy or insolvency law; I) Has a receiver or liquidator appointed for any part of their business or property; J) Makes an assignment for the benefit of creditors; K) Has any adverse change in financial condition or business operation that SBA believes may materially affect Borrower’s ability to pay this Note; L) Dies; M) Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without SBA’s prior written consent; or, N) Becomes the subject of a civil or criminal action that SBA believes may materially affect Borrower’s ability to pay this Note.

			

 

	 	
			5.

				
			SBA’S RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without giving up any of its rights, SBA may: A) Require immediate payment of all amounts owing under this Note; B) Have recourse to collect all amounts owing from any Borrower or Guarantor (if any); C) File suit and obtain judgment; D) Take possession of any Collateral; or E) Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement.

			

 

	 	
			6.

				
			SBA’S GENERAL POWERS: Without notice and without Borrower’s consent, SBA may: A) Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses; B) Collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney’s fees and costs. If SBA incurs such expenses, it may demand immediate reimbursement from Borrower or add the expenses to the principal balance; C) Release anyone obligated to pay this Note; D) Compromise, release, renew, extend or substitute any of the Collateral; and E) Take any action necessary to protect the Collateral or collect amounts owing on this Note.

			

 

 

 

 

	 	
			7.

				
			FEDERAL LAW APPLIES: When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

			

 

	 	
			8.

				
			GENERAL PROVISIONS: A) All individuals and entities signing this Note are jointly and severally liable. B) Borrower waives all suretyship defenses. C) Borrower must sign all documents required at any time to comply with the Loan Documents and to enable SBA to acquire, perfect, or maintain SBA’s liens on Collateral. D) SBA may exercise any of its rights separately or together, as many times and in any order it chooses. SBA may delay or forgo enforcing any of its rights without giving up any of them. E) Borrower may not use an oral statement of SBA to contradict or alter the written terms of this Note. F) If any part of this Note is unenforceable, all other parts remain in effect. G) To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that SBA did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain the fair market value of Collateral at a sale. H) SBA may sell or otherwise transfer this Note.

			

 

	 	
			9.

				
			MISUSE OF LOAN FUNDS: Anyone who wrongfully misapplies any proceeds of the loan will be civilly liable to SBA for one and one- half times the proceeds disbursed, in addition to other remedies allowed by law.

			

 

	 	
			10.

				
			BORROWER’S NAME(S) AND SIGNATURE(S): By signing below, each individual or entity acknowledges and accepts personal obligation and full liability under the Note as Borrower.

			

 

 

 

	 	Art's-Way Manufacturing Co., Inc.	 
	 	
			

			
	 	Michael Woods, Owner/OfficerSUBSCRIPTION
AGREEMENT

PELICAN
DELIVERS, Inc.

 	 

 

Pelican
Delivers, Inc., a Nevada corporation (hereinafter the "Company") and the undersigned (hereinafter the “Subscriber”)
agree as follows:

 

WHEREAS:

 

A.
The Company desires to issue a maximum of 3,000,000 shares of common stock of the Company, par value $0.001 per share, at a price
of $2.00 per share; and

 

B.
Subscriber desires to acquire that number of shares as is set forth on the signature page hereof (hereinafter the "Shares")
at the purchase price set forth herein.

 

NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants hereinafter set-forth, the parties hereto do
hereby agree as follows:

 

SUBSCRIPTION

 

1.1       Subject
to the terms and conditions hereinafter set forth, the Subscriber hereby subscribes for and agrees to purchase the Shares from
the Company at a price equal to $2.00 per share, and the Company agrees to sell the Shares to Subscriber in consideration of said
purchase price. Upon execution, this subscription shall be irrevocable by Subscriber.

 

1.2       The
purchase price for the Shares subscribed to hereunder is payable by the Subscriber contemporaneously with the execution and delivery
of this Subscription Agreement to: Pelican Delivers, Inc. c/o David Comeau, PO Box 689, Silverdale, WA 98383. Payment is made
by delivering the purchase price in the amount of $2.00 per Share to the Company by certified check, bank draft to the address
below or by wire transfer using the following wire transfer instructions:

 

Pelican
Delivers, Inc.

PO
Box 689

Silverdale,
WA 98383

 

Swift
Code: CHASUS33

Bank
Name: Chase Bank 270 Park Avenue New York, NY 10017 USA

Acct
Number: 563976635

Wire
Routing Number: 021000021

 

REPRESENTATIONS
AND WARRANTIES BY SUBSCRIBER

 

2.1       Subscriber
hereby acknowledges, represents and warrants to the Company the following:

 

		(A)	Subscriber
                                         acknowledges that the purchase of the Shares involves a high degree of risk in that the
                                         Company has only recently commenced its current business operations and may require substantial
                                         additional funds; 

 

		(B)	Subscriber
                                         recognizes that an investment in the Company is highly speculative and only investors
                                         who can afford the loss of their entire investment should consider investing in the Company
                                         and the Shares;

 

    	 	1	 

    	 	 	 

    

 

		(C)	Subscriber
                                         has such knowledge and experience in finance, securities, investments, including investment
                                         in unregistered securities, and other business matters so as to be able to protect its
                                         interests in connection with this transaction;

 

		(D)	Subscriber
                                         acknowledges that only a limited market for the Shares presently exists and the market
                                         may not develop in the future and accordingly Subscriber may not be able to liquidate
                                         its investment;

 

		(E)	Subscriber
                                         acknowledges that the shares may be subject to significant restrictions on transfer as
                                         imposed by state and federal laws;

 

		(F)	Subscriber
                                         is acquiring the Shares as principal for Subscriber's own benefit;

 

		(G)	Subscriber
                                         acknowledges receipt and review of the Company’s Prospectus (the “Prospectus”)
                                         for the sale of these shares as registered with the Securities and Exchange Commission,
                                         dated ________ 2020, and of both the Articles of Incorporation and bylaws of the Company,
                                         together with the opportunity and the Company’s encouragement to seek the advice
                                         and consultation of independent investment, legal and tax counsel;

 

		(H)	Subscriber
                                         acknowledges and agrees that the Company has previously made available to Subscriber
                                         the opportunity to ask questions of and to receive answers from representatives of the
                                         Company concerning the Company and the Shares, as well as to conduct whatever due diligence
                                         the Subscriber, in its discretion, deems advisable. Subscriber is not relying on any
                                         information communicated by any representatives of the Company and is relying solely
                                         upon the information contained in the Prospectus, and information obtained during Subscriber’s
                                         due diligence investigation in making a decision to invest in the Shares and the Company.

 

REPRESENTATIONS
BY THE COMPANY

 

3.1
       The Company represents and warrants to the Subscriber that:

 

		(A)	The
                                         Company is a corporation duly organized, existing and in good standing under the laws
                                         of the State of Nevada and has the corporate power to conduct the business which it conducts
                                         and proposes to conduct.

 

		(B)	Upon
                                         issue, the Shares will be duly and validly issued, fully paid and non-assessable common
                                         stock in the capital of the Company.

 

TERMS
OF SUBSCRIPTION

 

4.1Upon
acceptance of this subscription by the Company, all funds paid hereunder shall be deposited in a company bank account and released
to us for our general business use. In the event that a pro-offered subscription agreement is not accepted, the Company will promptly
return the proceeds to the rejected subscriber without interest.

 

4.2
Subscriber hereby authorizes and directs the Company to deliver the securities to be issued to such Subscriber pursuant to
this Subscription Agreement to Subscriber’s address indicated herein or into Subscriber’s brokerage account as provided
by Subscriber.

 

4.3Notwithstanding
the place where this Subscription Agreement may be executed by any of the parties hereto, the parties expressly agree that all
the terms and provisions hereof shall be construed in accordance with and governed by the laws of the State of Nevada. Exclusive
venue for any dispute arising out of this Subscription Agreement or the Shares shall be the state or federal courts sited in Clark
County, Nevada.

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4.4
The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further
action as may be necessary or appropriate to carry out the purposes and intent of this Subscription Agreement.

 

 

IN
WITNESS WHEREOF, this Subscription Agreement is executed as of the ___ day of ____________ 2020.

 

	 

        Number
        of Shares Subscribed For:
	 

         

	 

        Total
        Purchase Price:
	 
	 

        Signature
        of Subscriber:
	 

         

	 

         

        Name
        of Subscriber:
	 

         

	 

         

        Address
        of Subscriber:
	 

         

	 

         

        Subscriber’s
        SS# or tax ID#:
	 

         

 

 

ACCEPTED
BY: PELICAN DELIVERS, Inc.

 

 

 

Signature
of Authorized Signatory:__________________________________

 

 

Name
of Authorized Signatory: ___________________________________

 

 

Date
of Acceptance:  __________________________________

 

    	 	3

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