Document:

Exhibit 10.29

 

THIRD AMENDMENT TO LOAN AND SECURITY
AGREEMENT AND ASSUMPTION AGREEMENT

 

This Third Amendment
to Loan and Security Agreement and Assumption Agreement (this “Assumption Agreement”) is entered into as of
January 4, 2021, by and among (a) SILICON VALLEY BANK, a California corporation, with its principal place of business at
3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton,
Massachusetts 02466 (“Bank”) and (b) (i) MOTUS GI, INC., a Delaware corporation, with its principal place
of business at 1301 East Broward Boulevard, 3rd Floor Fort Lauderdale, Florida 33301 (“Existing Borrower”),
(ii) MOTUS GI, LLC, a Delaware limited liability company, with its principal place of business at 1301 East Broward Boulevard,
3rd Floor Fort Lauderdale, Florida 33301 (“New Borrower”), and (iii) MOTUS GI HOLDINGS, INC., a Delaware
corporation, with its principal place of business at 1301 East Broward Boulevard, 3rd Floor Fort Lauderdale, Florida 33301 (“Holdings”).

 

Reference is made
to that certain Loan and Security Agreement dated as of December 13, 2019, as amended by that certain Joinder and First Amendment
to Loan and Security Agreement dated as of February 7, 2020 between Bank and Borrower, and as further amended by that certain Second
Amendment to Loan and Security Agreement dated as of February 25, 2020 between Bank and Borrower (as may be further amended, affected,
modified, restated, replaced, or supplemented from time to time, the “Loan Agreement”). All capitalized terms
used herein without definitions shall have the meanings given such terms in the Loan Agreement.

 

1. Assumption. New Borrower is the successor entity to Existing Borrower. New Borrower hereby agrees to substitute itself
as the “Borrower” under the Loan Agreement and each of the Loan Documents in lieu of Existing Borrower, and agrees
to comply with and be bound by all of the terms, conditions and covenants of the Loan Agreement and the Loan Documents, as if it
were originally named “Borrower” therein. Without limiting the generality of the preceding sentence, New Borrower hereby
assumes and agrees to pay and perform when due all present and future indebtedness, liabilities and obligations of Existing Borrower
under the Loan Agreement, including, without limitation, the Obligations. All references in the Loan Documents to “Borrower”
shall be deemed to refer to New Borrower. Furthermore, all present and future obligations of Existing Borrower shall be deemed
to refer to all present and future obligations of New Borrower. New Borrower acknowledges that the Obligations are due and owing
to Bank from Existing Borrower, without any defense, offset or counterclaim of any kind or nature whatsoever as of the date hereof.

 

2. Grant of Security Interest. To secure the payment and performance in full of all of the Obligations, New Borrower
hereby grants to Bank a continuing lien upon and security interest in all of New Borrower’s now existing or hereafter arising
rights and interest in such assets of New Borrower as are consistent with the description of the Collateral set forth on Exhibit
A of the Loan Agreement (as if such Collateral were deemed to pertain to the assets of New Borrower), whether now owned or existing
or hereafter created, acquired, or arising, and wherever located, and including, without limitation, all of New Borrower’s
assets (excluding Intellectual Property), and all of New Borrower’s books relating to the foregoing and any and all claims,
rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements
to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. New Borrower further covenants and
agrees that by its execution hereof it shall provide all such information, complete all such forms, and take all such actions,
and enter into all such agreements, in form and substance reasonably satisfactory to Bank that are reasonably deemed necessary
by Bank in order to grant a valid, perfected first priority security interest to Bank in the Collateral. New Borrower hereby authorizes
Bank to file financing statements, without notice to New Borrower, with all appropriate jurisdictions and filing offices in order
to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by
either New Borrower or any other Person, shall be deemed to violate the rights of Bank under the Code. Any such financing statements
may indicate the Collateral as “all assets of the Debtor” or words of similar effect, or as being of an equal or lesser
scope, or with greater detail, all in Bank’s discretion. Upon Borrower’s written request, Bank shall provide Borrower
with copies of the filed financing statements.

 

    1

     

    

 

3.
Representations and Warranties. New Borrower hereby represents and warrants to Bank that all representations and
warranties in the Loan Documents made on the part of Existing Borrower are true and correct in all material respects as of the
date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and
correct as of such date) with respect to New Borrower, with the same force and effect as if New Borrower were named as the “Borrower”
in the Loan Documents.

 

4. Delivery of Documents. New Borrower hereby agrees that the following shall be delivered to Bank prior to or concurrently
with this Assumption Agreement, each in form and substance satisfactory to Bank:

 

		A.	a limited liability company borrowing certificate for New Borrower with respect to New Borrower’s
certificate of formation, operating agreement, incumbency and resolutions authorizing the execution and delivery of this Assumption
Agreement and the other documents required by Bank in connection with this Assumption Agreement;

 

		B.	the Operating Documents and long-form good standing certificate of New Borrower certified by the
Secretary of State Delaware as of a date no earlier than thirty (30) days prior to the date hereof;

 

		C.	duly executed signatures to a Cash Pledge Agreement, in form and substance acceptable to Bank;
and

 

		D.	such other documents as Bank may reasonably request.

 

5. Amendments to Loan Agreement.

 

5.1 Section
6.12 (Post-Closing Deliverables). Section 6.12 is amended in its entirety and replaced with the following:

 

“6.12 Post-Closing
Deliverables. Deliver to Bank, within forty-five (45) days after the Third Amendment Effective Date, a Perfection Certificate
of New Borrower, together with the duly executed signature thereto.”

 

5.2 Section
13.1 (Definitions). The following term and its respective definition set forth in Section 13.1 is amended in its entirety and
replaced with the following:

 

“    “Motus
GI” is Motus GI, LLC, a Delaware limited liability company.”

 

5.3 Section
13.1 (Definitions). The following new term and its respective definition set forth in Section 13.1 is hereby inserted alphabetically
in Section 13.1:

 

“   “Third
Amendment Effective Date” is January 4, 2021.”

 

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5.4 Exhibit
B (Compliance Certificate). The Compliance Certificate appearing as Exhibit B to the Loan Agreement is deleted in its entirety
and replaced with the Compliance Certificate attached as Schedule 1 attached hereto.

 

5.5 Exhibit
C (Loan Payment/Advance Request Form). The Loan Payment/Advance Request Form appearing as Exhibit C to the Loan Agreement is
deleted in its entirety and replaced with the Loan Payment/Advance Request Form attached as Schedule 2 attached hereto.

 

6. Limitation of Amendments.

 

6.1 The
amendments set forth in Section 5 above, are effective for the purposes set forth herein and shall be limited precisely as written
and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan
Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection
with any Loan Document.

 

6.2 This
Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties,
covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall
remain in full force and effect.

 

7. Fees and Bank Expenses. New Borrower shall reimburse Bank for all legal fees and expenses incurred in connection
with this Assumption Agreement and other documents to be executed in connection herewith.

 

8. Choice of Law, Venue and Jury Trial Waiver. Massachusetts law governs this Assumption Agreement without regard to
principles of conflicts of law. New Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts
in Massachusetts, provided, however, that nothing in this Assumption Agreement shall be deemed to operate to preclude Bank from
bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the
Obligations, or to enforce a judgment or other court order in favor of Bank. NOTWITHSTANDING THE FOREGOING, BANK SHALL HAVE THE
RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST NEW BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH BANK
DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE BANK’S RIGHTS AGAINST NEW BORROWER
OR ITS PROPERTY.

 

NEW BORROWER AND BANK
EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS ASSUMPTION AGREEMENT,
THE LOAN AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER
CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS ASSUMPTION AGREEMENT. EACH PARTY HAS REVIEWED
THIS WAIVER WITH ITS COUNSEL.

 

9. Consistent Changes. The existing Loan Documents are hereby amended wherever necessary to reflect the changes described
above.

 

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10. Ratification of Loan Documents. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all
security or other collateral granted to Bank, and confirms that the indebtedness secured thereby includes, without limitation,
the Obligations.

 

11. No Defenses of Borrower. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims,
or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any
offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby
expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.

 

12. Continuing Validity. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying
upon Borrower’s representations, warranties, and agreements, as set forth in the existing Loan Documents. Except as expressly
modified pursuant to this Assumption Agreement, the terms of the existing Loan Documents remain unchanged and in full force and
effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Assumption Agreement in no way shall
obligate Bank to make any future modifications to the Obligations. Nothing in this Assumption Agreement shall constitute a satisfaction
of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of existing Loan Documents,
unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Assumption Agreement.

 

13. Countersignatures. This Assumption Agreement shall become effective only when it shall have been executed by New
Borrower and Bank. This Assumption Agreement may be executed in any number of counterparts and by different parties on separate
counterparts, each of which, when executed and delivered, are an original, and all taken together, constitute one agreement. Each
party hereto may execute this Assumption Agreement by electronic means and recognizes and accepts the use of electronic signatures
and records by any other party hereto in connection with the execution and storage hereof.

 

[The remainder of
this page is intentionally left blank]

 

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This Assumption Agreement
is executed as of the date first written above.

 

	 	NEW BORROWER:
	 	 
	 	MOTUS GI, LLC
	 	 	 
	 	By:	/s/ Timothy P. Moran
	 	Name:	Timothy P. Moran
	 	Title:	Chief Executive Officer
	 	 	 
	 	EXISTING BORROWER:
	 	 
	 	MOTUS GI, INC.
	 	 	 
	 	By:	/s/ Timothy P. Moran
	 	Name: 	Timothy P. Moran
	 	Title:	Chief Executive Officer
	 	 	 
	 	HOLDINGS:
	 	 
	 	MOTUS GI HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Timothy P. Moran
	 	Name:	Timothy P. Moran
	 	Title:	Chief Executive Officer
	 	 	 
	 	BANK:
	 	 
	 	SILICON VALLEY BANK
	 	 	 
	 	By:	/s/ Sam Subilia
	 	Name:	Sam Subilia
	 	Title:	Director

 

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Schedule 1

 

EXHIBIT B

 

COMPLIANCE CERTIFICATE

 

	TO:	 SILICON VALLEY BANK	Date:  _____________________

 

		FROM:	MOTUS GI HOLDINGS, INC.

MOTUS GI, LLC.

 

The undersigned authorized
officer of MOTUS GI HOLDINGS, INC. and MOTUS GI, LLC. (individually and collectively, jointly and severally, “Borrower”)
certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”):

 

(1) Borrower is
in complete compliance for the period ending _______________ with all required covenants except as noted below; (2) there
are no Events of Default; (3) all representations and warranties in the Agreement are true and correct in all material respects
on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations
and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such
date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has
timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise
permitted pursuant to the terms of Section 5.8 of the Agreement; and (5) no Liens have been levied or claims made against
Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided
written notification to Bank.

 

Attached are the required
documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently
applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that
no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of
the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but
not otherwise defined herein shall have the meanings given them in the Agreement.

 

	Please indicate compliance status by circling Yes/No under “Complies” column.
	 
	Reporting Covenants	Required	Complies
	 	 	 
	Monthly financial statements 	Monthly within 30 days	Yes   No
	Compliance Certificate	Monthly within 30 days	Yes   No
	Annual financial statement (CPA Audited)	FYE within 180 days	Yes   No
	Board approved projections	Within 90 days after FYE	Yes   No
	10-Q, 10-K and 8-K	Within 5 days after filing with SEC	Yes   No

 

	 	Required	Actual	Complies
	 	 	 	 
	Liquidity Requirement (to be maintained at all times)	at least $10,000,000.00	$_______	Yes   No

 

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Other Matters

 

	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries?  If yes, provide copies of any such amendments or changes with this Compliance Certificate.	Yes	No

 

The following are
the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”)

 

 

 

	MOTUS GI HOLDINGS, INC.	 	BANK USE ONLY
	 	 	 
	 	 	Received by:  	         
	By: 	         	 	 	authorized signer
	Name:  	 	 	Date: 	 
	Title: 	 	 	 
	 	 	Verified: 	                   
	MOTUS GI, LLC	 	 	authorized signer
	 	 	Date: 	 
	 	 	 
	By: 	                 	 	Compliance Status:  Yes     No
	Name:  	 	 	 
	Title: 	 	 	 
	 	 	 

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Schedule 1 to Compliance Certificate

 

Financial Covenants of Borrower

 

In the event of a conflict
between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

 

Dated: ____________________

 

	I.		Liquidity (Section 6.7)

 

Required:At all times, Borrower shall
maintain unrestricted and unencumbered cash in accounts with Bank in an amount equal to at least Ten Million Dollars ($10,000,000.00).

 

Actual:

 

	A.	Unrestricted and unencumbered cash in accounts with Bank	$                             

 

Is Line A equal to or greater than or equal
to $10,000,000.00?

 

	______ No, not in compliance	______  Yes, in compliance

 

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Schedule 2

 

EXHIBIT C – LOAN PAYMENT/ADVANCE
REQUEST FORM

 

Deadline
for same day processing is 1:00 PM EASTERN Time

 

	Fax To:  	Date: _____________________

 

 

Loan
Payment:           MOTUS GI HOLDINGS, INC. and MOTUS GI, LLC.

 

From Account #__________________________________  To Account
#____________________________________

                (Deposit Account #)                                                                   (Loan
Account #)

 

Principal $_____________________________________ and/or Interest
$____________________________________

 

Authorized Signature:________________________________ Phone Number:
_________________________________

 

Print Name/Title: ____________________________

 

 

Loan Advance:

 

Complete Outgoing Wire Request section below if all or
a portion of the funds from this loan advance are for an outgoing wire.

 

From Account #_____________________________  To Account
#_________________________________________

           (Loan Account #)                                                                   (Deposit
Account #)

 

Amount of Term Loan Advance $___________________________

 

All Borrower’s representations and warranties in the Loan
and Security Agreement are true, correct and complete in all material respects on the date of the request for an advance; provided,
however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified
or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring
to a specific date shall be true, accurate and complete in all material respects as of such date:

 

Authorized Signature:________________________________   Phone
Number: ________________________________

 

Print Name/Title: ___________________________

 

 

Outgoing Wire Request:

 

Complete only if all or a portion of funds from the loan
advance above is to be wired.

 

Deadline for same day processing is 1:00 PM, Eastern Time

 

Beneficiary Name: __________________________                 Amount
of Wire: $_________________________________

Beneficiary Bank: __________________________                  Account
Number: _________________________________

City and State: ___________________________

Beneficiary Bank Transit (ABA) #: ____________                     Beneficiary
Bank Code (Swift, Sort, Chip, etc.): ____________

       (For International Wire Only)

Intermediary Bank: _______________________                       Transit
(ABA) #: __________________________________

For Further Credit to: ______________________________________________________________________________

Special Instruction: _______________________________________________________________________________

 

By signing below, I (we) acknowledge and agree that my (our)
funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreements(s)
covering funds transfer service(s), which agreements(s) were previously received and executed by me (us).

 

Authorized Signature: ________________________               2nd
Signature (if required): __________________________

Print Name/Title: _________________________                      Print
Name/Title: _________________________________

Telephone #: __________________________                          Telephone
#: ____________________________________

 

 

9a1028hffoodsgroupni_tran

1  C:\Users\LICH5726\Documents\HF FOODS GROUP  Ni_Transition and Release Agreement Final Execution  version - 2  23 21.DOCX EXECUTION VERSION SEPARATION AGREEMENT   This Separation Agreement (the “Agreement”) is between HF Foods Group, Inc., a Delaware  corporation (the “Company”), and Zhou Min Ni (“Executive”, with the Company, the “Parties”), dated as  of February 23, 2021.  This Agreement is effective on the date both Parties sign it, provided Executive does  not revoke the Agreement within 7 days in accordance with Section 17(c) of this Agreement (the “Effective  Date”). In consideration of the Executive’s execution and non-revocation of this Agreement, which  includes a release of claims in favor of the Company, upon or within twenty one (21) days after the  Separation Date described below (“Signature”), subject to the review and revocation period provided in  Paragraph 17 below, and the mutual promises and commitments made in this Agreement, and intending to  be legally bound, the Company and Executive agree to the terms set forth in this Agreement.   1. Conclusion of Employment.  Executive has voluntarily decided to resign from the employ of the  Company and his last day of employment with the Company is February 23, 2021 2021 (the  “Separation Date”).  In consideration for Executive entering this Agreement, the Company agrees that  in any Company press releases or statements to third-parties, the Company will characterize  Executive’s separation from the Company as a voluntary resignation.  Following the Separation Date  (within ten (10) business days), the Company will provide Executive with Executive’s final paycheck,  which will include all of Executive’s wages due through March 31, 2021, and payment for any  accrued but unused vacation, if any, through the Separation Date, less applicable taxes and  withholdings, in accordance with applicable law.  The Parties previously entered into an employment  agreement, dated August 14, 2018 (the “Employment Agreement”), and agree that this Agreement  shall supersede the Employment Agreement in all respects, except as otherwise specifically set forth  herein. Executive also agrees that he will cease serving as Chief Executive Officer of the Company  and as Chair and a member of the Board of Directors (“Board”) of the Company, and from any  positions he holds with the entities listed on Exhibit A, as of the Separation Date.      2. Continuation Benefits and Expense Reimbursements.  The Company at its sole expense shall continue  to provide Executive with the following continuation benefits:  (a) If Executive timely elects continued health coverage under COBRA for Executive and  Executive’s covered dependents under the Company’s group health plans, then, following the  Separation Date, the Company shall pay the COBRA premiums necessary to continue Executive’s  and Executive’s covered dependents’ health insurance through COBRA at the contribution level in  effect on the Separation Date until the earliest of: (1) the date that is twelve (12) months after the  Separation Date; (2) the date Executive becomes eligible for health insurance coverage from a new  employer; or (3) the date Executive is no longer eligible to continue coverage under COBRA; and  (b) To the extent Executive incurs expenses traveling anywhere for any purposes requested by  the Company, the Company shall reimburse Executive for all such costs he incurs, including costs  related to private car transport or first class air travel.  3. General Release.  (a) When used in this Agreement, the term “Company Parties” means the Company and its predecessors,  successors, parents, subsidiaries, and benefit plans, its other entities, and its insurers, and its and their  trustees, officers, managers, partners, supervisors, employees, attorneys, members, agents, board  

 

C:\Users\LICH5726\Documents\HF FOODS GROUP  Ni_Transition and Release Agreement Final Execution  version - 2  23 21.DOCX 2  members and  consultants (in their official, individual and all other capacities), and the predecessors,  successors and assigns of any and all of them (including, without limitation, the Company), and all  persons or entities, whether known or unknown, acting by, with, for, through, under, or in concert  with any of them.  When used in this Agreement, the word “Executive Parties” means Executive and  Executive’s heirs, spouse, executors, administrators, and assigns.  (b) In consideration of the promises of the Company set forth in this Agreement, and specifically the  provisions of Section 1, which require wages to be paid through March 31, 2021, and 2(a), both of  which are in addition to compensation to which Executive is entitled, and intending to be legally  bound, Executive Parties hereby irrevocably release and forever discharge all Company Parties from  any and all causes of action, civil actions, claims for any and all losses, awards, and all forms of relief  (including, but not limited to, legal, equitable and declaratory relief), claims for damages (including,  but not limited to, damages for personal injury, emotional distress or harm, harm to reputation, loss  of enjoyment of life, compensatory damages, exemplary damages, liquidated damages and punitive  damages), claims for costs or expenses (including, but not limited to, costs or expenses connected  with any administrative charge or complaint, or litigation), claims for fees (including, but not limited  to, attorneys’ fees and experts’ fees), claims for, or rights to, personal relief, awards or recovery in  connection with, or as a result of, any lawsuit, civil action, government action or proceeding, brought  or initiated by any person or entity, public or private, including, but not limited to, the Equal  Employment Opportunity Commission, and complaints, contracts, obligations, liabilities, promises,  and claims of every other kind, whether known or unknown, that Executive Parties (on behalf of  Executive, on behalf of Executive’s heirs, spouse, executors, administrators and assigns, and on  behalf of any other person or entity,) ever had, now has, or may have against, or pertaining to, any  or all of the Company Parties, based on, relating to, involving, or arising from any cause, decision,  event, matter, omission, statement or any other thing, existing or occurring at any time up to and  including the time when Executive signs this Agreement (all of which are sometimes referred to  collectively in this Agreement as the “Executive Claims”). Executive Parties are not waiving or  releasing any rights or claims that may arise after this Agreement is executed by Executive.  (c) Executive understands and agrees that the Executive Claims released in Section 3(b) of this  Agreement include, but are not limited to: (i) any and all Executive Claims based on any law, statute,  or constitution or based on contract or in tort or based on common law; (ii) any and all Executive  Claims based on or arising under any civil rights laws, labor laws, or employment laws, such as Title  VII of the Civil Rights Act of 1964, Section 1981 of U.S.C., the Americans With Disabilities Act of  1990, the ADA Amendments Act of 2008, the Civil Rights Act of 1991, the Genetic Information  Non-discrimination Act, the Equal Pay Act, the Employee Retirement Income Security Act  (regarding unvested benefits and including, but not limited to, claims for breach of fiduciary duty  under ERISA), the Family and Medical Leave Act of 1993, the Age Discrimination in Employment  Act of 1967, the Older Workers Benefits Protection Act, the Lilly Ledbetter Fair Pay Act of 2009  (including, without limitation, any and all amendments of such laws and all regulations issued  pursuant to any such laws), the North Carolina Equal Employment Practices Act, North Carolina  Persons with Disabilities Protection Act, North Carolina Civil Rights Law, North Carolina Lawful  Products Use Law, North Carolina Hemoglobin/Genetic Information Anti-Discrimination Law,  North Carolina Retaliatory Employment Discrimination Act, North Carolina Leave for Parent  Involvement in Schools Law, as well as any and all wrongful termination claims, breach of contract  claims, discrimination claims, harassment claims, retaliation claims, whistleblower claims (to the  fullest extent they may be released under applicable law), defamation or other tort claims, and claims  for attorneys’ fees and costs; (iii) any and all Executive Claims under any grievance or complaint  procedure of any kind; (iv) any and all Executive Claims based on or arising out of or related to  Executive’s recruitment by, employment with, the conclusion of Executive’s employment with,  Executive’s performance of any services in any capacity for, or any business transaction with, any  

 

C:\Users\LICH5726\Documents\HF FOODS GROUP  Ni_Transition and Release Agreement Final Execution  version - 2  23 21.DOCX 3  or all of the Company Parties; (v) any and all Executive Claims for a personal relief, awards or  recovery based on any actions taken by any government entity including, but not limited to, any  administrative agency, department or commission, as well as any actions taken by any person or  other entity; (vi) any and all Executive Claims pursuant to 42 U.S.C. section 1395y(b)(3)(A); (vii)  any and all Claims for any and all Releasors’ attorneys’ fees, costs or expenses relating to this  Agreement; and (vii) any and all Executive Claims that any and all Executive Parties do not know to  exist or do not suspect to exist in any and all Executive Parties’ favor or potentially in any and all  Executive Parties’ favor, as well as Executive Claims known to exist or suspected to exist by any  and all Executive Parties. Executive understands and agrees that the release of Executive Claims in  Sections 3(b)-(c) is a general release and is to be interpreted and/or applied broadly in favor of the  Company and the other Company Parties.  Executive agrees and covenants not to sue the Company with respect to matters that have been released  by this Agreement, subject to this Section 3(c) and as otherwise required by law.  Nothing herein waives  any rights of Executive to pursue claims against the Company for the Company’s breach of any terms  and conditions of this Agreement. Executive understands and agrees that nothing in this Agreement  restricts or prohibits any Executive Party from initiating communications directly with, responding to  any inquiries from, providing testimony before, providing confidential information to, reporting possible  violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a  self-regulatory authority or a government agency or entity, including the U.S. Equal Employment  Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department  of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General  (collectively, the “Regulators”), or from making other disclosures that are protected under the  whistleblower provisions of state or federal law or regulation. However, to the maximum extent permitted  by law, Executive understands and agrees that he and any Executive Parties are waiving any right to  receive any individual monetary relief from the Company or any others covered by the Release contained  in Section 3(b) resulting from such claims or conduct, regardless of whether Executive or another party  has filed them, and in the event Executive obtains such monetary relief, the Company will be entitled to  an offset for the payments made pursuant to this Agreement. This Agreement does not limit Executive’s  right to receive an award from any Regulator that provides awards for providing information relating to  a potential violation of law.   4. Executive Claims Not Waived. Notwithstanding anything in this Agreement to the contrary, Executive  is not waiving nor releasing: (i) any rights to vested accrued benefits under the Company’s employee  benefit plans; (ii) any rights to defense and indemnification (as described in Section 6 below) and under  directors and officers insurance with respect to his service as an employee or officer of the Company  or member of the Board; (iii) claims arising after the date on which Executive sign this Agreement; (iv)  claims that are not otherwise waivable under applicable law; and (v) rights or claims related to  enforcement of this Agreement.  5. Stock Restriction.  Executive agrees that he shall not sell any of his shares of Company stock during  the 12-month period following his Separation Date, at more than 1% of the average daily volume for  the previous 30 trading days.  6. Indemnification. The Company acknowledges and agrees that Executive remains eligible for  Indemnification as set forth in the Employment Agreement and any indemnification policies or plans  of the Company applicable to Executive.  7. Confidentiality; Injunction. Executive shall continue to be bound by the Restrictive Covenants as set  forth in the Employment Agreement, including the Confidentiality And Non-Compete obligations and  the Injunction provision in Sections 11(a), (b) and 12 of the Employment Agreement, which shall  continue after the Separation Date; provided. however, that Company and Executive agree that the Non- 

 

C:\Users\LICH5726\Documents\HF FOODS GROUP  Ni_Transition and Release Agreement Final Execution  version - 2  23 21.DOCX 4  Compete terms under Section 11(b) shall apply for twelve consecutive months following the Effective  Date.  8. Cooperation. Except as expressly permitted or required by this Agreement or by law, Executive agrees  that following the Effective Date, Executive shall fully cooperate with the Company in investigating,  defending, prosecuting, litigating, filing, initiating or asserting any actual or potential claims or  investigations that may be made by or against the Company to the extent that such claims or  investigations may relate to any matter in which Executive was involved (or alleged to have been  involved) while employed with the Company or of which Executive has knowledge by virtue of  Executive’s employment with the Company (collectively, “Proceedings”); provided that the obligations  in this Section shall in no way require Executive to cooperate in any such Proceedings that involve  claims against Executive individually, in the reasonable good faith judgment of the Board, that are or  may likely be clearly inconsistent with the position of the Company, or that could subject Executive to  civil or criminal liability.  When requesting Executive’s cooperation under this Section, the Company  will reasonably take into consideration Executive’s personal and business commitments, will give the  Executive as much advance notice as reasonably possible, and ask that Executive be available at such  time or times, and at such location or locations, as are reasonably convenient and agreeable to the  Company and Executive.  Upon submission of appropriate documentation, Executive shall be  reimbursed for reasonable and pre-approved out-of-pocket expenses incurred in rendering such  cooperation; provided that any travel expenses will be reimbursed in accordance with Section 2(b) of  this Agreement.  If for any reason the Executive or the Company determines that a conflict of interest  may exist between Executive and the Company in providing such cooperation, the Parties agree that  Executive may obtain his own separate legal counsel of his choice to meet his obligations under this  Section.  9. Mutual Non-Disparagement. Executive agrees and covenants that Executive shall not at any time make,  publish, or communicate to any person or entity or in any public forum any defamatory, or maliciously  false, or disparaging remarks, comments, or statements concerning the Company, or anyone Executive  actually knows or reasonably should know is a trustee, employee, officer, or director of the Company.    The Company agrees and covenants that the Company shall not (and the Company shall similarly  instruct its officers, directors, employees, and agents not to) make, publish, or communicate to any  person or entity or in any public forum any defamatory, or maliciously false, or disparaging remarks,  comments, or statements concerning Executive.  10. Assignment and Binding. The Executive and Company shall continue to be bound by the Assignment  and Binding provision of the Employment Agreement.  11. Waiver; Notice. The Executive and Company shall continue to be bound by the Waiver and Notice  provisions of the Employment Agreement.   12. No Admissions. Neither the offer of this Agreement, nor this Agreement itself, nor any of its terms, is  an admission, or shall be construed to be an admission, of any wrongdoing or liability by each or any  of the Company Parties, or by Executive.  13. Severability.  All parts of this Agreement are severable. If any part of this Agreement or the application  of any part of this Agreement to any person, to any circumstance, or to any Executive Claims is  determined by any court with jurisdiction to be unlawful, unenforceable, invalid, void or voidable to  any extent for any reason, (i) the application of such part of this Agreement to any other person, to any  other circumstance, or to any other Executive Claims or Company Claims will not be affected, and (ii)  all other parts of this Agreement will remain in full force and will be enforceable to the fullest and  greatest extent permitted by law. If any court of competent jurisdiction determines that any part of this  Agreement is unlawful, invalid, unenforceable, void or voidable, the court may reform such part of this  Agreement to limits that it finds to be lawful, valid and enforceable.  

 

C:\Users\LICH5726\Documents\HF FOODS GROUP  Ni_Transition and Release Agreement Final Execution  version - 2  23 21.DOCX 5  14. Choice of Law; Arbitration. This Agreement shall, in all respects, be governed by and interpreted under  and in accordance with the laws of the state of North Carolina (excluding any conflict of law rule or  principle), or any applicable federal law. Executive shall continue to be bound by the Arbitration  provision in the Employment Agreement in all respects.  15. Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be  considered an original, but all of which together shall constitute the same instrument.  16. Entire Agreement; Amendment. This Agreement together with the Voting Agreement described below  constitute a complete and final agreement between the parties, and supersedes and replaces all prior or  contemporaneous agreements, negotiations, or discussions relating to the subject matter of this  Agreement, including the Employment Agreement except as specifically stated otherwise herein.   Except for as provided in this Agreement, the Company shall have no further obligations as to the  Executive.  This Agreement may only be amended with a written agreement signed by both Parties.  In  addition, Executive, the Company and certain other parties entered into that certain Voting Agreement  dated November 4, 2019 (the “Voting Agreement”).  Executive agrees, on behalf of himself and the  other parties to the Voting Agreement which he controls that the provisions of Sections 2.1(b),(d) and  (e) and 2.4 of the Voting Agreement (as it relates only to Executive, not Mr. Zhang) are no longer  applicable or enforceable such that the provisions of this Agreement now control and further, for the  avoidance of doubt, that the Company may elect one or two new independent members of the Board  and a new Chair, following usual NASDAQ procedures and not the terms of the Voting Agreement  which are stated herein as no longer applying.  17. Execution, Review, and Revocation.  (a) Executive is advised, and acknowledges that Executive has been advised, to consult with, and has  consulted with an attorney before signing this Agreement.  (b) Executive acknowledges and agrees that he has been given twenty-one (21) days to review this  Agreement (“Signature Review Period”). Executive acknowledges and agrees that the Company has  provided him with the Signature Review Period so he can consider the terms and conditions of this  Agreement. The signed Agreement must be returned to: Peter Zhang, CEO,  peterzhang@hffoodsgroup.com. The date this Agreement is returned to the Company pursuant to  this Section 17(b) is referred to as a “Submission Date”.  (c) Executive acknowledges and agrees that this Agreement will not be effective or enforceable until  eight (8) days following the date he provides his Signature and that it may be revoked by Executive  within the seven (7)-day period following the Signature by either delivering a signed revocation  notice to Peter Zhang, CEO, peterzhang@hffoodsgroup.com, so that it is postmarked no later than  seven (7) days after the Submission Date. If Executive timely revokes this Agreement after the date  he provides his Signature, the Agreement shall be null and void in its entirety.   (d) Executive acknowledges and agrees that he may sign the Agreement prior to the end of the Signature  Review Period.  (e) Executive acknowledges and agrees that changes to the Company’s offer contained in this  Agreement, whether material or immaterial, will not re-start the twenty-one (21) day review period  provided for above.  (f) Executive acknowledges and agrees that he is signing this Agreement voluntarily, with full  knowledge of the nature and consequences of its terms.  (g) Executive acknowledges and agrees that this Agreement was given to Executive on February 19,  2021.  18. Section 409A. This Agreement is intended to comply with the requirements of section 409A of the  Code or an exception, and shall be administered accordingly. Notwithstanding anything in the  

 

C:\Users\LICH5726\Documents\HF FOODS GROUP  Ni_Transition and Release Agreement Final Execution  version - 2  23 21.DOCX 6  Agreement to the contrary, distributions may only be made under the Agreement upon an event and in  a manner permitted by section 409A or an applicable exemption. Payments to be made upon a  conclusion of employment under this Agreement may only be made upon a “separation from service”  under section 409A. For purposes of section 409A, each payment shall be treated as a separate payment.  In no event may Executive, directly or indirectly, designate the calendar year of a payment.    [Signature Page Follows]  

 

 

 

C:\Users\LICH5726\Documents\HF FOODS GROUP  Ni_Transition and Release Agreement Final Execution  version - 2  23 21.DOCX 8  Exhibit A  List of Entities  HF FOODS GROUP INC. SUBSIDIARIES  HF Group Holding Corporation  Han Feng, Inc.   Truse Trucking, Inc.   Morning First Delivery, Inc.   R&N Holdings, LLC   R&N Lexington, LLC   Kirnsway Manufacturing, Inc.   Chinesetg, Inc.   New Southern Food Distributors, Inc.   B&B Trucking Services, Inc.   Kirnland Food Distribution, Inc.   HG Realty LLC   R&N Charlotte, LLC  HF Foods Industrial, L.L.C.

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