Item 5.02Item 5.02 - Departure/Election of Directors
Item
5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of
Certain Officers.
Addendum
No. 7 to Lai Employment Agreement
On
May 15, 2026, Hour Loop, Inc. (the “Company”) entered into Addendum No. 7 (the “Lai Addendum”) to Executive
Employment Agreement, as amended, with Sam Lai (the “Lai Agreement”), the Company’s Chairman of the Board, Chief Executive
Officer, interim Chief Financial Officer, and majority stockholder. Pursuant to the terms of the Lai Addendum, Mr. Lai’s 2026 bonus
targets and payments were revised as follows:
If
the Company grows its net profits (excluding taxes and executives’ bonuses) to at least $1,000,000 during the 2026 fiscal year,
Mr. Lai will receive a bonus equal to 50% of Base Salary (as defined in the Lai Agreement).
If
the Company grows its net profits (excluding taxes and executives’ bonuses) to at least $2,000,000 during the 2026 fiscal year,
Mr. Lai will receive a bonus equal to 100% of Base Salary.
The
satisfaction of the above conditions will be determined at the end of the 2026 fiscal year. For the avoidance of doubt, only one of the
above bonus amounts, if at all, will be payable.
In
addition, pursuant to the terms of the Lai Addendum, Mr. Lai is entitled to receive a guaranteed bonus of $100,000 on December 22, 2026.
Addendum
No. 7 to Yu Employment Agreement
Also
on May 15, 2026, the Company entered into Addendum No. 7 (the “Yu Addendum”) to Executive Employment Agreement, as
amended, with Sau Kuen (Maggie) Yu (the “Yu Agreement”), the Company’s Senior Vice President, Director and majority
stockholder. Pursuant to the terms of the Yu Addendum, Ms. Yu’s 2026 bonus targets and payments were revised as follows:
If
the Company grows its net profits (excluding taxes and executives’ bonuses) to at least $1,000,000 during the 2026 fiscal year,
Ms. Yu will receive a bonus equal to 50% of Base Salary.
If
the Company grows its net profits (excluding taxes and executives’ bonuses) to at least $2,000,000 during the 2026 fiscal year,
Ms. Yu will receive a bonus equal to 100% of her Base Salary.
The
satisfaction of the above conditions will be determined at the end of the 2026 fiscal year. For the avoidance of doubt, only one of the
above bonus amounts, if at all, will be payable.
In
addition, pursuant to the terms of the Yu Addendum, Ms. Yu is entitled to receive a guaranteed bonus of $100,000 on December 22, 2026.
Mr.
Lai and Ms. Yu are husband and wife, and together, they beneficially own 33,360,142 shares of the Company’s common stock, representing
approximately 94.8% of the voting power of the Company’s outstanding common stock, with each of Mr. Lai and Ms. Yu beneficially
holding 33,360,142 shares of the Company’s common stock, as each of them is deemed to indirectly beneficially own the other’s
16,680,071 shares.
The
foregoing description of the Lai Addendum and the Yu Addendum is qualified in its entirety by reference to the complete terms and conditions
of the Lai Addendum and the Yu Addendum, copies of which are filed as Exhibits 10.1 and 10.2, respectively, to this Current Report on
Form 8-K, and is incorporated by reference into this Item 5.02.