Document:

Exhibit
10.1

 

SECURITIES PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of May 26, 2021, by and between GBT TECHNOLOGIES INC.,
a Nevada corporation, with its address at 2450 Colorado Ave., Suite 100E, Santa Monica, CA 90404 (the “Company”), and REDSTART
HOLDINGS CORP., a New York corporation, with its address at 1188 Willis Avenue, Albertson, New York 11507
(the “Buyer”).

 

WHEREAS:

 

A.                
The Company and the Buyer are executing and delivering
this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the
United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933
Act”); and

 

B.                  
Buyer desires to purchase and the Company desires to
issue and sell, upon the terms and conditions set forth in this Agreement a convertible note of the Company, in the form attached hereto
as Exhibit A, in the aggregate principal amount of $106,200.00 (together with any note(s) issued in replacement thereof or as a dividend
thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”), convertible into shares of common
stock, $0.00001 par value per share, of the Company (the “Common Stock”), upon the terms
and subject to the limitations and conditions set forth in such Note.

 

NOW THEREFORE, the
Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.                  
Purchase and Sale of Note.

 

a.                    
Purchase of Note. On the Closing Date (as defined
below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such principal amount of Note
as is set forth immediately below the Buyer’s name on the signature pages hereto.

 

b.                    
Form of Payment. On the Closing Date (as defined
below), (i) the Buyer shall pay the purchase price for the Note to be issued and sold to it at the Closing (as defined below) (the “Purchase
Price”) by wire transfer of immediately available funds to the Company, in accordance with the Company’s written wiring instructions,
against delivery of the Note in the principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name
on the signature pages hereto, and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against
delivery of such Purchase Price.

 

c.                     
Closing Date. Subject to the satisfaction (or
written waiver) of the conditions thereto set forth in Section 6 and Section 7 below, the date and time of the issuance and sale of the
Note pursuant to this Agreement (the “Closing Date”) shall be 12:00 noon, Eastern Standard Time on or about May 27, 2021,
or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”) shall
occur on the Closing Date at such location as may be agreed to by the parties.

 

    

     

    

 

2.                  
Buyer’s Representations and Warranties.
The Buyer represents and warrants to the Company that:

 

a.                     
Investment Purpose. As of the date hereof, the
Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note (such shares
of Common Stock being collectively referred to herein as the “Conversion Shares” and, collectively with the Note, the “Securities”)
for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or
exempted from registration under the 1933 Act.

 

b.                   
Accredited Investor Status. The Buyer is an “accredited
investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited Investor”).

 

c.                     
Reliance on Exemptions. The Buyer understands
that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United
States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer’s compliance
with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine
the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.

 

d.                    
Information. The Company has not disclosed to
the Buyer any material nonpublic information and will not disclose such information unless such information is disclosed to the public
prior to or promptly following such disclosure to the Buyer.

 

e.                    
Legends. The Buyer understands that the Note and,
until such time as the Conversion Shares have been registered under the 1933 Act; or may be sold pursuant to an applicable exemption from
registration, the Conversion Shares may bear a restrictive legend in substantially the following form:

 

“THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS
(1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR (2)
THE ISSUER OF SUCH SECURITIES RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY
ACCEPTABLE TO THE ISSUER’S TRANSFER AGENT, THAT SUCH SECURITIES MAY BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.”

 

    2 

     

    

 

The
legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon
which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under
an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to an exemption from registration without
any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides
the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to
the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be
accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those represented
by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any. In
the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant
to an exemption from registration, such as Rule 144, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2
of the Note.

 

f.                     
Authorization; Enforcement. This Agreement has
been duly and validly authorized. This Agreement has been duly executed and delivered on behalf of the Buyer, and this Agreement constitutes
a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

3.                  
Representations and Warranties of the Company.
The Company represents and warrants to the Buyer that:

 

a.                     
Organization and Qualification. The Company and
each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly existing and in good standing under the
laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate
its properties and to carry on its business as and where now owned, leased, used, operated and conducted. “Subsidiaries” means
any corporation or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly, any
equity or other ownership interest.

 

b.                    
Authorization; Enforcement. (i) The Company has
all requisite corporate power and authority to enter into and perform this Agreement, the Note and to consummate the transactions contemplated
hereby and thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this
Agreement, the Note by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation,
the issuance of the Note and the issuance and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof)
have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its Board
of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized
representative, and such authorized representative is the true and official representative with authority to sign this Agreement and the
other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution
and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms.

 

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c.                     
Capitalization. As of the date hereof, the authorized
common stock of the Company consists of 100,000,000,000 authorized shares of Common Stock, $1e-05 par value per share, of which 493,110,305
shares are issued and outstanding. All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly
issued, fully paid and non-assessable. .

 

d.                    
Issuance of Shares. The Conversion Shares are
duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, will be validly issued,
fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not
be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability upon the
holder thereof.

 

e.                     
No Conflicts. The execution, delivery and performance
of this Agreement, the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including,
without limitation, the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation
of any provision of the Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision
of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which
the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company
or its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or
any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations
and violations as would not, individually or in the aggregate, have a Material Adverse Effect). The businesses of the Company and its
Subsidiaries, if any, are not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation
of any law, ordinance or regulation of any governmental entity. “Material Adverse Effect” means any material adverse effect
on the business, operations, assets, financial condition or prospects of the Company or its Subsidiaries, if any, taken as a whole, or
on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith.

 

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f.                      
SEC Documents; Financial Statements. The Company
has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting
requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (all of the foregoing filed prior to the
date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other than exhibits to such
documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”). Upon written request
the Company will deliver to the Buyer true and complete copies of the SEC Documents, except for such exhibits and incorporated documents.
As of their respective dates or if amended, as of the dates of the amendments, the SEC Documents complied in all material respects with
the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and
none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to be amended or
updated under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof).
As of their respective dates or if amended, as of the dates of the amendments, the financial statements of the Company included in the
SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations
of the SEC with respect thereto. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles, consistently applied, during the periods involved and fairly present in all material respects the consolidated financial position
of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows
for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). The Company is subject
to the reporting requirements of the 1934 Act.

 

g.                    
Absence of Certain Changes. Since March 31, 2021,
except as set forth in the SEC Documents, there has been no material adverse change and no material adverse development in the assets,
liabilities, business, properties, operations, financial condition, results of operations, prospects or 1934 Act reporting status of the
Company or any of its Subsidiaries.

 

h.                     
Absence of Litigation. Except as set forth in
the SEC Documents, there is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government
agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened against
or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such, that could have a Material
Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

i.                       
No Integrated Offering. Neither the Company, nor
any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales in any security
or solicited any offers to buy any security under circumstances that would require registration under the 1933 Act of the issuance of
the Securities to the Buyer. The issuance of the Securities to the Buyer will not be integrated with any other issuance of the Company’s
securities (past, current or future) for purposes of any shareholder approval provisions applicable to the Company or its securities.

 

j.                       
No Brokers. The Company has taken no action which
would give rise to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this Agreement
or the transactions contemplated hereby.

 

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k.                     
No Investment Company. The Company is not, and
upon the issuance and sale of the Securities as contemplated by this Agreement will not be an “investment company” required
to be registered under the Investment Company Act of 1940 (an “Investment Company”). The Company is not controlled by an Investment
Company.

 

l.                      
Breach of Representations and Warranties by the Company.
If the Company breaches any of the representations or warranties set forth in this Section 3, and in addition to any other remedies available
to the Buyer pursuant to this Agreement, it will be considered an Event of default under Section 3.4 of the Note.

 

4.                  
COVENANTS.

 

a.                   
Best Efforts. The Company shall use its best efforts
to satisfy timely each of the conditions described in Section 7 of this Agreement.

 

b.                    
Form D; Blue Sky Laws. The Company agrees to timely
make any filings required by federal and state laws as a result of the closing of the transactions contemplated by this Agreement.

 

c.                    
Use of Proceeds. The Company shall use the proceeds
for general working capital purposes.

 

d.                    
Expenses. At the Closing, the Company’s
obligation with respect to the transactions contemplated by this Agreement is to reimburse Buyer’ expenses shall be $3,500.00 for
Buyer’s legal fees and due diligence fee.

 

e.                     
Corporate Existence. So long as the Buyer beneficially
owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company’s assets,
except with the prior written consent of the Buyer.

 

f.                      
Breach of Covenants. If the Company breaches any
of the covenants set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement,
it will be considered an event of default under Section 3.4 of the Note.

 

g.                    
Failure to Comply with the 1934 Act. So long as
the Buyer beneficially owns the Note, the Company shall comply with the reporting requirements of the 1934 Act; and the Company shall
continue to be subject to the reporting requirements of the 1934 Act.

 

h.                    
Trading Activities. Neither the Buyer nor its
affiliates has an open short position in the common stock of the Company and the Buyer agrees that it shall not, and that it will cause
its affiliates not to, engage in any short sales of or hedging transactions with respect to the common stock of the Company.

 

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i.                      
Right of First Refusal. Unless it shall have first
delivered to the Buyer, at least forty eight (48) hours prior to the closing of such Future Offering (as defined herein), written notice
describing the proposed Future Offering (“ROFR Notice”), including the terms and conditions thereof, identity of the proposed
purchaser and proposed definitive documentation to be entered into in connection therewith, and providing the Buyer an option during the
forty eight (48) hour period following delivery of such notice to purchase the securities being offered in the Future Offering on the
same terms as contemplated by such Future Offering (the limitations referred to in this sentence and the preceding sentence are collectively
referred to as the “Right of First Refusal”), the Company will not conduct any equity (or debt with an equity component) financing
in an amount less than $150,000 (“Future Offering(s)”) during the period beginning on the Closing Date and ending nine (9)
months following the Closing Date. In the event the terms and conditions of a proposed Future Offering are amended in any respect after
delivery of the notice to the Buyer concerning the proposed Future Offering, the Company shall deliver a new notice to the Buyer describing
the amended terms and conditions of the proposed Future Offering and the Buyer thereafter shall have an option during the forty eight
(48) hour period following delivery of such new notice to purchase its pro rata share of the securities being offered on the same terms
as contemplated by such proposed Future Offering, as amended. Notwithstanding anything contained herein to the contrary, any subsequent
offer by an investor, or an affiliate of such investor, identified on an ROFR Notice is subject to this Section 4(i) and the Right of
First Refusal.

 

j.                      
The Buyer is Not a “Dealer”. The Buyer
and the Company hereby acknowledge and agree that the Buyer has not: (i) acted as an underwriter; (ii) acted as a market maker or specialist;
(iii) acted as “de facto” market maker; or (iv) conducted any other professional market activities such as providing investment
advice, extending credit and lending securities in connection; and thus that the Buyer is not a “Dealer” as such term is defined
in the 1934 Act.

 

5.                  
Transfer Agent Instructions. The Company shall
issue irrevocable instructions to its transfer agent to issue certificates, registered in the name of the Buyer or its nominee, for the
Conversion Shares in such amounts as specified from time to time by the Buyer to the Company upon conversion of the Note in accordance
with the terms thereof (the “Irrevocable Transfer Agent Instructions”). In the event that the Company proposes to replace
its transfer agent, the Company shall provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer
Agent Instructions in a form as initially delivered pursuant to this Agreement (including but not limited to the provision to irrevocably
reserve shares of Common Stock in the Reserved Amount as such term is defined in the Note) signed by the successor transfer agent to Company
and the Company. Prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion Shares may be sold
pursuant to an exemption from registration, all such certificates shall bear the restrictive legend specified in Section 2(e) of this
Agreement. The Company warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section
5, will be given by the Company to its transfer agent and that the Securities shall otherwise be freely transferable on the books and
records of the Company as and to the extent provided in this Agreement and the Note; (ii) it will not direct its transfer agent not to
transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing)(electronically or in certificated form) any certificate
for Conversion Shares to be issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note
and this

 

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Agreement;
and (iii) it will not fail to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent
from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any Conversion
Shares issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note and/or this Agreement.
If the Buyer provides the Company and the Company’s transfer agent, at the cost of the Buyer, with an opinion of counsel in form,
substance and scope customary for opinions in comparable transactions, to the effect that a public sale or transfer of such Securities
may be made without registration under the 1933 Act, the Company shall permit the transfer, and, in the case of the Conversion Shares,
promptly instruct its transfer agent to issue one or more certificates, free from restrictive legend, in such name and in such denominations
as specified by the Buyer. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Buyer, by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy
at law for a breach of its obligations under this Section 5 may be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Section, that the Buyer shall be entitled, in addition to all other available remedies, to an
injunction restraining any breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond
or other security being required.

 

6.                  
Conditions to the Company’s Obligation to Sell.
The obligation of the Company hereunder to issue and sell the Note to the Buyer at the Closing is subject to the satisfaction, at or before
the Closing Date of each of the following conditions thereto, provided that these conditions are for the Company’s sole benefit
and may be waived by the Company at any time in its sole discretion:

 

a.                     
The Buyer shall have executed this Agreement and delivered
the same to

 

the Company.

 

b.                    
The Buyer shall have delivered the Purchase Price in
accordance with

 

Section 1(b) above.

 

c.                    
The representations and warranties of the Buyer shall
be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time (except for
representations and warranties that speak as of a specific date), and the Buyer shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Buyer
at or prior to the Closing Date.

 

d.                    
No litigation, statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of
competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation
of any of the transactions contemplated by this Agreement.

 

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7.                  
Conditions to The Buyer’s Obligation to Purchase.
The obligation of the Buyer hereunder to purchase the Note at the Closing is subject to the satisfaction, at or before the Closing Date
of each of the following conditions, provided that these conditions are for the Buyer’s sole benefit and may be waived by the Buyer
at any time in its sole discretion:

 

a.                     
The Company shall have executed this Agreement and delivered
the

 

same to the Buyer.

 

b.                    
The Company shall have delivered to the Buyer the duly
executed Note (in such denominations as the Buyer shall request) in accordance with Section 1(b) above.

 

c.                     
The Irrevocable Transfer Agent Instructions, in form
and substance satisfactory to the Buyer, shall have been delivered to and acknowledged in writing by the Company’s Transfer Agent.

 

d.                    
The representations and warranties of the Company shall
be true and correct in all material respects as of the date when made and as of the Closing Date as though made at such time (except for
representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company
at or prior to the Closing Date. The Buyer shall have received a certificate or certificates, executed by the chief executive officer
of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the
Buyer including, but not limited to certificates with respect to the Board of Directors’ resolutions relating to the transactions
contemplated hereby.

 

e.                    
No litigation, statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of
competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation
of any of the transactions contemplated by this Agreement.

 

f.                      
No event shall have occurred which could reasonably
be expected to have a Material Adverse Effect on the Company including but not limited to a change in the 1934 Act reporting status of
the Company or the failure of the Company to be timely in its 1934 Act reporting obligations.

 

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8.                  
Governing Law; Miscellaneous.

 

a.                     
Governing Law. This Agreement shall be governed
by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought
by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts
of New York or in the federal courts located in the Eastern District of New York. The parties to this Agreement hereby irrevocably waive
any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction
or venue or based upon forum non conveniens. The Company and Buyer waive trial by jury. The prevailing party shall be entitled
to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any
other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or
rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability
of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being
served in any suit, action or proceeding in connection with this Agreement, the Note or any related document or agreement 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 Agreement 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 other manner permitted by law.

 

b.                     
Counterparts. This Agreement may be executed in
one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered to the other party.

 

c.                     
Headings. The headings of this Agreement are for
convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.

 

d.                   
Severability. In the event that any provision
of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative
to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof
which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

 

e.                    
Entire Agreement; Amendments. This Agreement and
the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein
and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant
or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing
signed by the majority in interest of the Buyer.

 

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f.                  
Notices. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall
be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered
by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, email or facsimile, addressed as
set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication
required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business
day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be as set forth in the heading of this Agreement with a copy by fax only to (which copy shall
not constitute notice) to Naidich Wurman LLP, 111 Great Neck Road, Suite 214, Great Neck, NY 11021, Attn: Allison Naidich, facsimile:
516-466-3555, e-mail: allison@nwlaw.com. Each party shall provide notice to the other party of any change
in address.

 

g.                   
Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and assigns. Neither the Company nor the Buyer shall assign
this Agreement or any rights or obligations hereunder without the prior written consent of the other. Notwithstanding the foregoing, the
Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction from the Buyer or to any of its
“affiliates,” as that term is defined under the 1934 Act, without the consent of the Company.

 

h.                    
Survival. The representations and warranties of
the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder notwithstanding any due diligence
investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer and all their officers,
directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of
any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement,
including advancement of expenses as they are incurred.

 

i.                     
Further Assurances. Each party shall do and perform,
or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates,
instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby.

 

j.                      
No Strict Construction. The language used in this
Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction
will be applied against any party.

 

k.                   
Remedies. The Company acknowledges that a breach
by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated
hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate
and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be
entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction
or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof,
without the necessity of showing economic loss and without any bond or other security being required.

 

[THE REMAINDER OF THIS PAGE
IS INTENTIONALLY LEFT BLANK]

 

    11 

     

    

 

IN WITNESS
WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

	GBT
TECHNOLOGIES INC.	 
	 	 	 
	By:	 	 
	 	Mansour Khatib	 
	 	Chief Executive Officer	 
	 	 	 
	REDSTART
HOLDINGS CORP.	 
	 	 	 
	By:	 	 
	 	Gregg B. Solomon	 
	 	President	 

 

	AGGREGATE SUBSCRIPTION AMOUNT:	 	 
	Aggregate Purchase Price:	 	$	88,500.00	 
	Original Issue Discount:	 	$	17,700.00	 
	Aggregate Principal Amount of Note:	 	$	106,200.00	 

 

12exhibit101stockpurchasea

   1 STOCK PURCHASE AGREEMENT  THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is entered this 28th day of May,  2021, by and among Ki Tai Yeung, an individual residing in the State of New York (“Stockholder”),  constituting the minority stockholder of Kirnland Food Distribution, Inc., a Georgia corporation (the  “Company”); HF Group Holding Corp., a Delaware corporation (“Purchaser”), a subsidiary ofHF Foods  Group Inc., a Delaware corporation (“Parent”); and, solely for purposes of Section 5.4 hereinbelow, the  Company.   W I T N E S S E T H:  WHEREAS, the Company is a wholesale food distributor (the “Business”);   WHEREAS, the Stockholder owns 1,000 shares of the capital stock of the Company, constituting  33-1/3% of all of the issued and outstanding shares of capital stock of the Company; and  WHEREAS, Purchaser desires to purchase from the Stockholder and the Stockholder desires to  sell to Purchaser all of his Shares of the Company (collectively, the “Purchased Shares”), free and clear of  all liens and encumbrances, as hereinafter provided.  NOW, THEREFORE, in consideration of the foregoing premises and the mutual representations,  warranties and covenants herein contained, and other good and valuable consideration, the receipt and  sufficiency of which are hereby acknowledged, the parties hereto agree as follows:  ARTICLE 1  PURCHASE AND SALE OF STOCK  1.1 Purchase and Sale.  On the terms, provisions and conditions set forth herein and in  reliance upon the warranties and representations contained herein, Purchaser shall purchase, and the  Stockholder shall sell, transfer and assign to Purchaser, at the Closing all of the Purchased Shares, free  and clear of all Liens and Stock Encumbrances.  At the Closing, the Stockholder shall deliver to  Purchaser certificates evidencing such Purchased Shares, which shall be delivered to Purchaser and duly  endorsed in blank or accompanied by stock transfer powers duly executed in blank, and proper forms for  transfer, for the consideration to be delivered by Purchaser as specified in Article 2.  As used in this Agreement, “Liens” shall mean any claims, liens, encumbrances, conditions,  easements, restrictions, leases, security interests, and similar interests of any kind or nature whatsoever.  “Stock Encumbrances” shall mean restrictions on the voting, transfer, receipt of dividends or other  attributes of ownership whatsoever other than those imposed by Law, the certificate or articles of  incorporation or bylaws of the Company. “Stock Rights” shall mean conversion rights, exchange rights,  rights, warrants or options. “Law” means any applicable law, judgment, order, decree, statute, ordinance,  rule or regulation issued or promulgated by any governmental entity. “Transaction Documents” means  each of the agreements, documents and instruments referenced in this Agreement to be executed and  delivered by the Purchaser, the Company and/or the Stockholder.    1.2 Closing.  The closing of the transactions contemplated herein (the “Closing”) shall take  place on or before May 28, 2021, to be effective as of 11:59 p.m. ET on such date, or such other date as  the parties shall agree in writing (the “Closing Date”), by means of exchange of signature pages by  facsimile or other electronic means (to be followed by delivery of hard copies of all Closing deliveries)  

 

   2 or, at the election of the Stockholder and Purchaser, at the offices of the Stockholder’s or Purchaser’s  counsel.   ARTICLE 2  PURCHASE PRICE  2.1 Purchase Price.  The aggregate purchase price for the Purchased Shares shall be Five  Million and No/100 Dollars ($5,000,000.00) (the “Purchase Price”) and shall be paid by  Purchaser at  Closing in cash, certified check, bank wire transfer, or other immediately available funds (“Cash at  Closing”).  ARTICLE 3  OTHER COVENANTS AND AGREEMENTS  3.1 Expenses.  (a) Expenses of Purchaser.  All of the expenses incurred by Purchaser in connection  with the authorization, negotiations, preparation, execution and performance of this Agreement and other  agreements referred to herein, including, without limited, all fees and expenses of agents, representatives,  brokers, counsel and accountants for Purchaser, shall be paid by Purchaser.  (b) Expenses of Stockholder.  All expenses incurred by the Stockholder in  connection with the authorization, negotiation, preparation, execution and performance of this Agreement  and the other agreements referred to herein, including without limitation, all fees and expenses of agents,  representatives, brokers, counsel and accountants for Stockholder shall be paid by the Stockholder.     3.2 Taxes.   (a) Definitions.  As used in this Agreement, the following terms have the specified  meanings:  (i) “Affiliated Group” means any affiliated group within the meaning of  Section 1504(a) of the Code or any similar group defined under similar provision of state,  local or foreign Law.  (ii) “Code” shall mean the Internal Revenue Code of 1986, as amended, and  the revenue rulings and regulations promulgated thereunder, as the same may be  amended from time to time.  Any references to a specific section of the Code shall refer  to the cited provisions as the same may be subsequently amended from time to time, as  well as to any successor provision(s).  (iii) “Period” shall mean any taxable year or any other period with respect to  which any Tax may be imposed under any Law.  (iv) “Person” means any individual, corporation, partnership, limited liability  company, joint venture, trust, business association, organization, governmental entity or  other entity.  (v) “Post-Closing Tax Period” shall mean any Period beginning immediately  after the Closing Date, and, with respect to any Period beginning before and ending after  

 

   3 the Closing, means the portion of such Period commencing immediately after the Closing  Date.  (vi) “Pre-Closing Tax Period” shall mean any Period ending on or before the  Closing Date and the portion through the Closing Date for any Period that includes (but  does not end on) the Closing Date.  (vii) “Straddle Period” shall mean a Period that includes (but does not end on)  the Closing Date.  (viii) “Tax Authority” shall mean, with respect to any Tax, the governmental  entity or political subdivision thereof that imposes such Tax, and the agency (if any)  charged with the collection of such Taxes for such entity or subdivision, including any  governmental or quasi-governmental entity or agency that imposes, or is charged with  collecting, social security or similar charges or premiums.  (ix) “Taxes” (or “Tax” as the context may require) shall mean (A) any and all  taxes, fees, levies, duties, tariffs, imposts and other charges of any kind, imposed by any  Tax Authority, including taxes or other charges on, measured by, or with respect to  income, franchise, windfall, or other profits, gross receipts, property, sales, use, capital  stock, payroll, employment, social security, workers’ compensation, unemployment  compensation or net worth taxes; taxes or other charges in the nature of excise,  withholding, ad valorem, premium, stamp, transfer, value-added or gains taxes;  environmental, production or severance taxes; license, registration and documentation  fees; and customs duties, tariffs and similar charges; (B) any liability for the payment of  any amounts of the type described in (A) as a result of being a member of an affiliated,  combined, consolidated or unitary group for any Period; (C) any liability for the payment  of any amounts of the type described in (A) as a result of being a Person required by Law  to withhold or collect taxes imposed on another Person; (D) any liability for the payment  of amounts of the type described in (A), (B) or (C) as a result of being a transferee of, or  a successor in interest to, any Person, as a result of an express or implied obligation to  indemnify any Person (including by reason of a tax sharing, tax reimbursement or tax  indemnification agreement); and (E) any and all interest, penalties (civil or criminal),  additions to tax and additional amounts imposed in connection with or with respect to any  amounts described in (A), (B), (C) or (D).   (x) “Tax Return” shall mean any return, report, statement, form or other  documentation (including any additional or supporting material and any amendments or  supplements (including claims for refund)) filed or maintained, or required to be filed or  maintained, with respect to or in connection with the calculation, determination,  assessment, collection or administration of any Taxes.  (b) Responsibility for filing Tax Returns.  The taxable year of the Company for  purposes of federal income Taxes will end on December 31, 2021.  The Purchaser shall prepare and file  or cause to be prepared and filed all Tax Returns of the Company for all Periods, including Straddle  Periods, ending on or prior to the Closing Date which are filed after the Closing Date.  The Purchaser and  the Company shall be solely responsible for, and shall pay, without any cost to Stockholder, any and all  Taxes assessed against and payable by the Company arising from the operations of the Business prior to  the Closing and shall be entitled to any refund of Taxes resulting from the payment of such Taxes  (regardless of whether the filing of any Tax Returns with respect thereto or payment of any amount in  respect thereof are filed, paid or due prior to, on or after the Closing Date).  Purchaser shall prepare and  

 

   4 file or cause to be prepared and filed any Tax Returns of the Company for any Straddle Period.  All Tax  Returns for Pre-Closing Tax Periods and Straddle Periods shall be prepared in a manner consistent with  the past practices of the Company unless a different treatment of a Tax item is required by Law.   Purchaser shall pay or cause to be paid by the Company all Taxes shown as due on all Tax Returns of the  Company filed for periods after the Closing Date; provided, however, that nothing contained in the  foregoing shall in any way terminate, limit or adversely affect any right of Purchaser to receive  indemnification pursuant to any provision of this Agreement.  Purchaser agrees that the Tax Returns of  the Company filed with respect to the Periods ending on or prior to the Closing Date and any Straddle  Period which are filed after the Closing Date, and any prior Tax Returns of the Company, shall not be  amended in a manner which increases the tax liability of the Stockholder without the consent of the  Stockholder, which consent shall not be unreasonably withheld, except to the extent necessary to comply  with Law.     (c) Certain Taxes and Fees.  All transfer, documentary, sales, use, stamp, registration  and other Taxes, and all conveyance fees, recording charges and other fees and charges (including  penalties and interest), incurred in connection with the consummation of the transactions contemplated by  this Agreement shall be borne and paid by the Purchaser when due.  Purchaser and the Stockholder agree  to file all necessary documents (including, but not limited to, Tax Returns) with respect to all such  amounts in a timely manner.   (d) Cooperation of Parties.  Except as otherwise provided in this Agreement, the  parties hereby agree that each of them shall cooperate with the other in executing or causing to be  executed any required document and by making available to the other all work papers, records and notes  of any kind at all reasonable times for the purpose of allowing the appropriate party to complete Tax  Returns, participate in a proceeding, obtain refunds, make any determination required under this  Agreement or defend or prosecute Tax claims.  The parties hereby further agree, upon request, to use their  commercially reasonable efforts to obtain any certificate or other document from any governmental  authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be  imposed (including, but not limited to, with respect to the transactions contemplated hereby).      (e) Refunds.  Purchaser shall be entitled to the benefit of Tax refunds received by the  Company that relate to any Pre-Closing Tax Period.  3.3 Profit Distributions.  Stockholder acknowledges and agrees that, as of the Closing, he  has received all distributions, dividends and profits owed to him relating to his ownership of the  Purchased Shares. From and after the Closing, the Company and Purchaser shall have the sole right to  receive all distributions, dividends and profits arising out of the operations of the Company, and  Stockholder shall have no further right to receive any part of the profits of the Company.    3.4 Confidentiality and Public Announcements.  The parties hereto each agree to, and to  direct their respective directors, officers, employees, representatives and agents with a need to know such  information to, maintain the confidentiality of the transactions contemplated by this Agreement, except  such disclosure as is required by applicable federal or state Laws, or to obtain necessary consents.  The  Stockholder shall, and shall cause his representatives to, maintain the confidentiality of all non-public  information concerning the Company and Purchaser (other than such information which becomes  generally available to the public other than as a result of disclosure by Stockholder) which becomes  known by such representatives or the Stockholder as a result of the negotiation or consummation of the  transactions contemplated by this Agreement.      

 

   5 ARTICLE 4  REPRESENTATIONS AND WARRANTIES   OF THE STOCKHOLDER  As a material inducement to Purchaser to enter into this Agreement, with the understanding that  Purchaser will be relying thereon in consummating the transactions contemplated hereby, Stockholder  represents and warrants to Purchaser that:  4.1 Ownership of Company Shares.  Except for the Purchased Shares, the Stockholder does  not own or hold, directly or indirectly, any shares of stock, Stock Rights, other equity interests, or other  attributes of ownership in the Company. The Stockholder is the sole record and beneficial owner of the  Purchased Shares, free and clear of any Lien or any Stock Encumbrances.  Upon Closing, Purchaser shall  own the Purchased Shares free and clear of any Liens, Stock Encumbrances or Stock Rights.  No Person  other than the Stockholder has any beneficial or record interest in the Purchased Shares.   4.2 Ownership of Parent Shares.   Stockholder does not beneficially own, directly or  through its nominees (as determined in accordance with Section 13(d) of the Exchange Act, and the rules  and regulations promulgated thereunder), any shares of capital stock of Parent, or any economic interest  in or derivative of such stock.  4.3 Power and Authority; Due Authorization.  Stockholder has requisite capacity and  authority to execute and deliver this Agreement and each of the Transaction Documents to which such  Stockholder is or will be a party and to consummate the transactions contemplated hereby and thereby.   Assuming that this Agreement and each of the Transaction Documents constitutes a valid and binding  agreement of Purchaser, this Agreement and each of the Transaction Documents constitutes, or will  constitute when executed and delivered, a valid and binding agreement of the Stockholder, in each case  enforceable by Purchaser in accordance with its terms, subject to Laws of general application in effect  affecting creditors’ rights and subject to the exercise of judicial discretion in accordance with general  equity principles.  4.4 No Conflict; Required Consents.  The execution and delivery by the Stockholder of this  Agreement and the Transaction Documents and the consummation by the Stockholder of the transactions  contemplated hereby and thereby do not and will not: (a) require, in accordance with the terms of any  material contract, the consent, approval or action of, or any filing or notice to, any Person or any public,  governmental or judicial authority; (b) violate the terms of any material instrument, document or  agreement to which Stockholder is a party, or by which Stockholder is bound, or be in conflict with, result  in a breach of or constitute (upon the giving of notice or lapse of time or both) a default under any such  instrument, document or agreement, or result in the creation of any Lien upon any of the property or  assets of the Company; or (c) violate any order, writ, injunction, decree, judgment, ruling, Law, rule or  regulation of any federal, state, county, municipal, or foreign court or governmental authority applicable  to Stockholder.  4.5 Release of Claims.  Stockholder releases and discharges (to the fullest extent permitted  by applicable Law) Purchaser, Parent and the Company (collectively, the “Purchaser Entities”) and all of  the present and former officers, directors, affiliates, shareholders, members, partners, attorneys, agents,  insurers, employees, or other representatives of, and any predecessors, successors and assigns of, the  Purchaser Entities (collectively, the “Released Parties”), from any and all claims, suits, demands,  damages (including, but not limited to, consequential and exemplary damages), judgments, liens, debts,  attorneys’ fees, costs, actions and causes of action of every kind and nature, whether known or unknown,  suspected or unsuspected in law or in equity, including but not limited to any and all rights and claims  that he has or may have pursuant to that certain Shareholders’ Agreement Among Shareholders of  

 

   6 Kirnland Food Distribution, Inc., executed by and among Stockholder, Zhou Min Ni, and the Company,  dated as of December 14, 2017, and all other organizational documents of the Company, including but not  limited to the articles of incorporation of the Company and any amendments thereof, the by-laws of the  Company and any amendments thereof, and any board actions or resolutions of the directors of the  Company. For sake of clarity, this Section 4.5 does not release, limit or affect Stockholder’s right to  enforce the terms of this Agreement or any rights arising out of or related to his Stock at Closing.  4.6 Litigation; Judgments.  There is no action, proceeding or investigation, pending, or to  Stockholder’s actual knowledge, threatened against or involving Stockholder seeking to restrain or  prohibit or to obtain damages or other relief in connection with the consummation of transactions  contemplated by this Agreement, or which might adversely affect Stockholder’s ability to consummate  the transactions contemplated by this Agreement and each of the Transaction Documents.  4.7 Brokers Fees and Expenses.  Stockholder has not retained or utilized the services of any  broker, finder or intermediary, or paid or agreed to pay any fee or commission to any Person for or on  account of the transactions contemplated hereby which would obligate the Company or Purchaser to pay  any such fees or commissions.  ARTICLE 5  REPRESENTATIONS AND WARRANTIES OF  PURCHASER  In order to induce the Stockholder to enter into this Agreement and consummate the transactions  contemplated hereby, Purchaser hereby makes the following representations and warranties to the  Stockholder:  5.1 Binding Agreement.  Assuming that this Agreement constitutes a valid and binding  agreement of the Stockholder, this Agreement and each of the Transaction Documents constitute, or will  constitute when executed and delivered, a valid and binding agreement of Purchaser, to the extent a party  thereto, enforceable against Purchaser in accordance with its terms, subject to Laws of general application  in effect affecting creditors’ rights and subject to the exercise of judicial discretion in accordance with  general equitable principles.  5.2 No Conflict; Consents.  The execution and delivery by Purchaser of this Agreement and  each of the Transaction Documents and the consummation by Purchaser of the transactions contemplated  hereby and thereby do not and will not: (a) require, in accordance with any material contract or  agreement, the consent, approval or action of, or any filing or notice to, any Person; (b) violate the terms  of any material instrument, document or agreement to which Purchaser is a party, or by which Purchaser  or the property of Purchaser is bound, or be in conflict with, result in a breach of or constitute (upon the  giving of notice or lapse of time, or both) a default under any such instrument, document or agreement;  (c) violate Purchaser’s certificate of incorporation or bylaws; or (d) violate any order, writ, injunction,  decree, judgment, ruling, Law or regulation of any federal, state, county, municipal, or foreign court or  governmental authority applicable to Purchaser, or the business or assets of Purchaser, or relating to the  purchase of the Purchased Shares.  5.3 Litigation; Judgments.  There is no action, proceeding or investigation, pending, or to  Purchaser’s knowledge, threatened against or involving Purchaser seeking to restrain or prohibit or to  obtain damages or other relief in connection with the consummation of transactions contemplated by this  Agreement, or which might adversely affect Purchaser’s ability to consummate the transactions  contemplated by this Agreement and each of the Purchaser Transaction Documents.    

 

   7  5.4     Release of Claims.  Purchaser Entities hereby release and discharge (to the fullest extent  permitted by applicable Law) Stockholder (the “Released Party”), from any and all claims, suits,  demands, damages (including, but not limited to, consequential and exemplary damages), judgments,  liens, debts, attorneys’ fees, costs, actions and causes of action of every kind and nature, whether known  or unknown, suspected or unsuspected in law or in equity, including but not limited to any and all rights  and claims that Purchaser Entities have or may have pursuant to that certain Shareholders’ Agreement  Among Shareholders of Kirnland Food Distribution, Inc., executed by and among Stockholder, Zhou Min  Ni, and the Company, dated as of December 14, 2017, and all other organizational documents of the  Company, including but not limited to the articles of incorporation of the Company and any amendments  thereof, the by-laws of the Company and any amendments thereof, and any board actions or resolutions of  the directors of the Company. For sake of clarity, this Section 5.4 does not release, limit or affect  Purchaser’s right to enforce the terms of this Agreement or any rights arising out of or related to the Stock  at Closing.  5.5 Brokers Fees and Expenses.  Purchaser has not retained or utilized the services of any  broker, finder, or intermediary, or paid or agreed to pay any fee or commission to any Person for or on  account of the transactions contemplated hereby, or had any communications with any Person which  would obligate any Stockholder to pay any such fees or commissions.    ARTICLE 6  INDEMNIFICATION  6.1 Indemnification by the Stockholder.  Subject to the terms of this Article 6, the  Stockholder hereby indemnifies Purchaser, and its respective employees, officers, directors, successors  and assigns (collectively, the “Purchaser Indemnitees”) and agrees to defend, reimburse and hold them  harmless from and against, and in respect of, on a dollar for dollar basis, all claims, liabilities, damages,  payments, obligations, losses, costs and expenses (including reasonable attorneys’ fees, court costs, expert  witness fees, transcripts costs and other expenses of litigation) and judgments (at law or in equity)  (collectively, “Losses”) incurred or suffered by any of them and arising out of or resulting from any of the  following:     (a) (i) any breach of, nonfulfillment of, or failure to perform any agreement or  covenant or obligation of the Stockholder pursuant to this Agreement or in any other Transaction  Document or (ii) any inaccuracy in or breach of any warranty or representation of the Stockholder  contained herein or in any other Transaction Document as of the date such representation or warranty was  made or as if such representation or warranty was made on and as of the Closing Date; and/or   (b) any fees, expenses or other payments incurred or owed by the Stockholder to any  brokers, financial advisors or comparable Persons retained or employed by Stockholder, knowingly or  unknowingly, in connection with this Agreement and the transactions contemplated hereby.  6.2 Indemnification by Purchaser.  Purchaser hereby indemnifies the Stockholder and  agrees to defend, reimburse and hold him harmless from and against, and in respect of, on a dollar for  dollar basis, all Losses incurred or suffered by him and arising out of or resulting from any of the  following:     (a) (i) any breach of, nonfulfillment of, or failure to perform any agreement or  covenant or obligation of Purchaser pursuant to this Agreement or in any other Transaction Document or  (ii) any inaccuracy in or breach of any warranty or representation of Purchaser contained herein or in any  

 

   8 Transaction Document as of the date such representation or warranty was made or as if such  representation or warranty was made on and as of the Closing Date; and/or  (b) any fees, expenses or other payments incurred or owed by Purchaser to any  brokers, financial advisors or comparable Persons retained or employed by Purchaser, knowingly or  unknowingly, in connection with this Agreement and the transactions contemplated hereby.   6.3 Provisions Regarding Indemnification.        (a) General.  The party (or parties) believing it (or they) to be entitled to  indemnification hereunder (the “Indemnified Party”) shall promptly notify the other party (or parties) (the  “Indemnifying Party”) in writing of any claim, demand, action or proceeding for which indemnification  will or may be sought under Sections 6.1 or 6.2 (a “Notice of Claim”).  The Notice of Claim shall specify  facts reasonably known to the Indemnified Party giving rise to such indemnity rights.  Unless the  Indemnifying Party notifies the Indemnified Party, in writing, within fifteen (15) business days following  its receipt of a Notice of Claim (a “Dispute Notice”) that it disputes the right of the Indemnified Party to  indemnification hereunder, the Indemnified Party shall be conclusively deemed entitled to  indemnification hereunder with respect to the matters described in such Notice of Claim.  Any rights of  indemnification established by reason of such agreement or failure to respond shall promptly thereafter be  paid and satisfied by the Indemnifying Party.  To the extent a dispute exists between the Indemnified  Party and the Indemnifying Party, such dispute shall be resolved in accordance with this Agreement.       (b) Third Party Claims.      (i) Notice.  With respect to any matter for which an Indemnified Party is  entitled to indemnification from an Indemnifying Party under this Article 6 that relates to  a claim by a third party (a “Third Party Claim”), the Indemnified Party shall provide to  the Indemnifying Party a Notice of Claim relating to such Third Party Claim; provided,  however, that no failure or delay in providing such a Notice of Claim shall relieve the  Indemnifying Party of any liability hereunder (except to the extent the Indemnifying  Party has suffered actual prejudice thereby).        (ii) Assumption of the Defense.  The Indemnifying Party shall have fifteen  (15) business days after receipt from the Indemnified Party of the Notice of Claim for a  Third Party Claim to provide notice to the Indemnified Party of its election to assume,  using legal counsel selected by it and reasonably acceptable to the Indemnified Party, the  defense of the Third Party Claim at its own expense; provided, however, that if the  Indemnifying Party’s assumption of the defense of any Third Party Claim would result in  a conflict of interest arising out of the joint representation by legal counsel selected by  the Indemnifying Party of the interests of both the Indemnifying Party and the  Indemnified Party, the Indemnifying Party shall be entitled to engage separate legal  counsel to represent the Indemnified Party (at the Indemnifying Party’s sole cost and  expense) and, if the Indemnifying Party fails to do so during the fifteen (15) business day  period referred to above, the Indemnifying Party shall not be entitled to assume the  Indemnified Party’s defense of such Third Party Claim.  An Indemnifying Party’s  election to assume the defense of any Third Party Claim shall constitute an admission that  any Losses resulting therefrom are indemnifiable Losses for which the Indemnified Party  is entitled to indemnification from the Indemnifying Party under this Article 6 unless  within sixty (60) days after receipt of the related Notice of Claim the Indemnifying Party  notifies the Indemnified Party that the Third Party Claim is not an indemnifiable claim  hereunder and tenders defense of such Third Party Claim to the Indemnified Party (but  

 

   9 such notice and tender shall not relieve the Indemnifying Party of its responsibility for  indemnification under this Article 6 if it is ultimately determined that such Third Party  Claim is an indemnifiable claim under this Article 6).  If the Indemnifying Party assumes  the defense of a Third Party Claim, it shall thereafter promptly inform the Indemnified  Party of all material developments related thereto and copy the Indemnified Party on all  pleadings, filings and other correspondence relating thereto.  With respect to any Third  Party Claim for which the Indemnifying Party has assumed the defense in accordance  with this Section 6.3(b)(ii): (i) the Indemnified Party shall have the right, but not the  obligation, to participate in the defense of such Third Party Claim through legal counsel  selected by it, but the costs and expenses of such legal counsel shall be borne solely by  the Indemnified Party; and (ii) the Indemnified Party shall, during normal business hours  and upon reasonable advance notice, at the cost and expense of the Indemnifying Party,  reasonably cooperate with, make its relevant files and records reasonably available for  inspection and copying by, make its employees reasonably available to, and otherwise  render reasonable assistance to, the Indemnifying Party in connection with the Third  Party Claim.      (iii) Defense of Third Party Claim by the Indemnified Party.  If: (A) the  Indemnified Party does not receive notice from the Indemnifying Party in which the  Indemnifying Party elects to assume the defense of a Third Party Claim within the fifteen  (15) business day time period set forth in Section 6.3(b)(ii); (B) at any time after the  Indemnifying Party has assumed the defense of a Third Party Claim, the Indemnifying  Party fails to perform or unreasonably delays in performing its obligations to assume or  pursue the defense of any such Thirty Party Claim or (C) within sixty (60) days after  receipt of the delivery of the related Notice of Claim the Indemnifying Party notifies the  Indemnified Party that the Third Party Claim is not an indemnifiable claim hereunder and  tenders defense of such Third Party Claim to the Indemnified Party, the Indemnified  Party shall be entitled to fully assume, commence and pursue its own defense of such  Third Party Claim and the Indemnifying Party shall no longer be entitled to defend such  Third Party Claim.        (iv) Settlement.  If the Indemnifying Party (having assumed the defense of a  Third Party Claim in accordance with Section 6.3(b)(ii)) or the Indemnified Party (having  proceeded with its own defense of a Third Party Claim in accordance with Section  6.3(b)(iii)) proposes to settle or compromise such Third Party Claim, the Indemnifying  Party or the Indemnified Party (as applicable) shall provide notice to that effect (together  with a statement describing in reasonable detail the terms and conditions of such  settlement or compromise and including a copy of the settlement agreement) to the  Indemnified Party or the Indemnifying Party (as applicable), which shall be provided a  reasonable time prior to the proposed time for effecting such settlement or compromise,  and the Indemnifying Party or the Indemnified Party (as applicable) may not effect any  such settlement or compromise without the prior written consent of the Indemnified Party  or the Indemnifying Party, such consent to not be unreasonably withheld, delayed or  conditioned.   6.4 Survival.  The representations and warranties contained in this Agreement (and the right  to bring claims for indemnification based on a breach of such representations and warranties) shall  survive the Closing for eighteen (18) months following the Closing Date, and shall thereafter cease to be  of any force and effect.  

 

   10   ARTICLE 7  CLOSING DELIVERIES TO PURCHASER  7.1 Closing Deliveries.  Effective as of the Closing, the Stockholder shall have executed  (where applicable), or shall have caused to be executed, and delivered to Purchaser each of the following,  together with any additional items that Purchaser may reasonably request to effect the transactions  contemplated herein:  (a) stock certificate(s) (with appropriate stock powers executed in blank) evidencing  ownership of all of the Purchased Shares; and  (b) any other documents or agreements contemplated hereby.  ARTICLE 8  CLOSING DELIVERIES TO THE STOCKHOLDER   8.1 Closing Deliveries.  Effective as of Closing, Purchaser shall have executed (where  applicable) and shall have delivered to the Stockholder each of the following, together with any additional  items which the Stockholder may reasonably request to effect the transactions contemplated herein:  (a) the Cash at Closing; and  (b) any other documents or agreements contemplated hereby.  ARTICLE 9  MISCELLANEOUS PROVISIONS  9.1 Severability.  If any provision of this Agreement is prohibited by the Laws of any  jurisdiction as those Laws apply to this Agreement, that provision shall be ineffective to the extent of such  prohibition and/or shall be modified to conform with such Laws, without invalidating the remaining  provisions hereto.  9.2 Modification and Waiver.  This Agreement may not be changed or modified except in  writing specifically referring to this Agreement and signed by all of the parties hereto.  No change,  amendment or attempted waiver of any provision hereof shall be binding on the other parties hereto  unless reduced to writing and signed by all of the parties hereto.  Unless specifically provided otherwise  herein or agreed to by all of the parties hereto in writing, no modification, waiver, termination, rescission,  discharge or cancellation of this Agreement shall affect the right of the parties hereto to enforce any  claim, whether or not liquidated, which accrued prior to the date of such modification, waiver,  termination, rescission, discharge, or cancellation of this Agreement, and no waiver of any provision or of  any default under this Agreement shall affect the right of any party to enforce such provision or to  exercise any right or remedy in the event of any other default, whether or not similar.  9.3 Assignment; Binding Agreement.  This Agreement and the Transaction Documents  may not be assigned by any party hereto without the prior written consent of the other parties, provided  that Purchaser may assign this Agreement and the Purchaser Transaction Documents in whole or in part  to one or more direct or indirect wholly-owned subsidiaries of Parent without the consent of Stockholder.   The terms and conditions hereof shall inure to the benefit of and be binding upon the parties hereto and  their respective heirs, personal representatives, successors and assigns.  

 

   11 9.4 Counterparts.  This Agreement may be executed in one or more counterparts, each of  which shall be deemed an original, but all of which together shall constitute one and the same instrument,  with the same effect as if the signatures thereto were in the same instrument.  This Agreement shall be  effective and binding on all parties when all parties have executed and delivered a counterpart of this  Agreement.  9.5 Notices.  All notices, requests, demands, claims or other communications hereunder will  be in writing and shall be deemed duly given if personally delivered, sent by telefax, “pdf” or sent by a  recognized overnight delivery service that guarantees next day delivery (“Overnight Delivery”) or mailed  registered or certified mail, return receipt requested, postage prepaid, transmitted or addressed to the  intended recipient as set forth below:      If to Stockholder:   Ki Tai Yeung  51-01 Grand Ave  Maspeth, New York 11378  Fax: 718 366 9640  Email: pingyeung@youngshing.com    With a copy to:   Keith A. O'Daniel  O'Daniel McDonald  9040 Roswell Road, Suite 500  Sandy Springs, GA 30350        kodaniel@odmclaw.com     If to Purchaser/Parent:  HF Group Holding Corp.        c/o HF Foods Group Inc.  19319 Arenth Avenue  City of Industry, CA 91748  Attn: Xiao Mou Zhang  Fax: (626) 338-7133  Email: peterzhang@hffoodsgroup.com     With a copy to:   Puryear and Lingle, PLLC  5501-E Adams Farm lane  Greensboro, North Carolina  27407  Attn:  David B. Puryear, Jr.   Fax:  (844) 459-6709  Email:  puryear@puryearandlingle.com  or at such other address as any party hereto notifies the other parties hereof in writing.  The parties hereto  agree that notices or other communications that are sent in accordance herewith (i) by personal delivery,  telefax or “pdf”, will be deemed received on the day sent or on the first business day thereafter if not sent  on a business day, (ii) by Overnight Delivery, will be deemed received on the first business day  immediately following the date sent, and (iii) by U.S. mail, will be deemed received three (3) business  days immediately following the date sent.  For purposes of this Agreement, a “business day” is a day on  which is open for business and shall not include a Saturday or Sunday or Federal holiday.   Notwithstanding anything to the contrary in this Agreement, in the event an action required or permitted  

 

   12 by this Agreement is to be taken by a certain date (e.g., ten (10) days after Closing) and such date is not a  business day, such action may be performed on the next succeeding day that is a business day.  9.6 Entire Agreement; No Third Party Beneficiaries.  This Agreement, together with all  Exhibits and Schedules attached hereto, and the Transaction Documents constitute the entire agreement of  the parties hereto and supersede any and all other prior agreements and undertakings, both written and  oral, among the parties, or any of them, with respect to the subject matter hereof.  Except as otherwise  expressly provided, neither this Agreement nor any Exhibit, Schedule, or Transaction Document is  intended to confer upon any Person, other than the Stockholder, Purchaser, Parent, and the Company, any  rights or remedies hereunder.  9.7 Further Assurances.  The parties to this Agreement agree to execute and/or deliver, both  before and after Closing, any additional information, documents or agreements contemplated hereby.  The  Stockholder agree to provide to Purchaser, both before and after the Closing, such information as  Purchaser may reasonably request in order to consummate the transactions contemplated hereby and to  effect an orderly transition of the Business following Closing.  9.8 Construction.  Within this Agreement the singular shall include the plural and the plural  shall include the singular and any gender shall include all other genders, all as the meaning and context of  this Agreement shall require, and the word “including” shall be interpreted to mean “including, without  limitation.”  In connection with any action or event that by the terms hereof requires consent of a party  hereto, such consent shall not be unreasonably withheld or delayed.  The words “herein,” “hereof” and  “hereunder” and other words of similar import refer to this Agreement as a whole, including the Exhibits  and Schedules hereto, as the same may be amended, modified or supplemented from time to time, and not  to any particular section, subsection or clause contained in this Agreement.  Unless otherwise indicated, a  reference to a Section, Schedule or Exhibit means a Section, Schedule or Exhibit hereof.  Should any  provision of this Agreement require interpretation, it is agreed that the arbitration panel or other body  interpreting or construing this Agreement shall not apply the assumption that the terms of this Agreement  shall be more strictly construed against one party by reason of the rule of legal construction that an  instrument is to be construed more strictly against the party which itself or through its agents prepared the  agreement.  The parties acknowledge and agree that they and their agents have each had the opportunity  to participate equally in the negotiations and preparation of this Agreement and have had the opportunity  to consult legal counsel regarding the terms hereof.  9.9 Choice of Law. This Agreement and all documents executed in connection herewith  shall be governed by, and construed in accordance with, the laws of the State of Delaware, regardless of  the laws that might otherwise govern under applicable principles of conflict of laws thereof.     9.10 Dispute Resolution.      (a) Notwithstanding any provision of this Agreement to the contrary, with the  exception of disputes, controversies or claims where the sole remedy sought is injunctive relief, all  disputes, controversies or claims arising out of or relating to this Agreement and the transactions  contemplated hereby shall be resolved in accordance with this Section 9.10.       (b) If any dispute, controversy or claim is not resolved between the parties within  fifteen (15) days following written notice thereof given by either party hereto to the other, then the parties  shall submit such dispute, controversy or claim to mediation.  Any party desiring mediation may begin  the process by giving the other party a written request to mediate that describes the issues involved and  relief sought and invites the other party or parties to join in naming a mutually agreeable mediator and  setting a timeframe for the mediation meeting.  The parties and the mediator may adopt any procedural  

 

   13 format that seems appropriate for the particular dispute, controversy or claim.  The contents of all  discussions during the mediation shall be confidential and non-discoverable in subsequent arbitration or  litigation, if any.  If the parties can agree upon a mutually acceptable resolution to such dispute,  controversy or claim, it shall be reduced to writing, signed by the parties, and such dispute, controversy or  claim shall be deemed resolved.  The costs of mediation shall be divided equally between the parties.   Any mediation shall be conducted in Greensboro, North Carolina.     (c) If such dispute, controversy or claim cannot be resolved through mediation  within thirty (30) days after a party requests mediation thereof or such longer time as is mutually agreed  by the parties, or if any party refuses to mediate or to name a mutually acceptable mediator or establish a  timeframe for mediation within a period of time that is reasonable considering the urgency of the disputed  matter, or fails to agree to procedures for the mediation, then any party who desires dispute resolution  shall seek binding arbitration as hereinafter provided.  Arbitration of any dispute, controversy or claim  hereunder shall be conducted in accordance with Title 9 of the United States Code (the United States  Arbitration Act) and the Commercial Arbitration Rules, all as amended from time to time (the “Rules”) of  the American Arbitration Association (the “AAA”) and the provisions of this Section; provided, however,  that the provisions of this Section shall prevail in the event of any conflict with such Rules.  The parties  agree that they shall use their best efforts to cause a panel of three arbitrators to be appointed within thirty  (30) days after the service of notice by either party of its desire to arbitrate.  Such panel shall be selected  from the AAA panel of commercial arbitrators in accordance with the methodology set forth in the Rules.   The parties shall be entitled to engage in discovery in connection with the arbitration, as limited by the  arbitration panel in accordance with the Rules.  Pending the arbitration hearing, any provisional remedy  that would be available to a party from a court of law shall be available from the arbitration panel.  The  arbitration panel shall issue a reasoned award, and the decision of a majority of the arbitration panel with  respect to the matters referred to them pursuant hereto shall be final and binding upon the parties to the  dispute, and confirmation and enforcement thereof may be rendered thereon by any court having  jurisdiction upon application of any Person who is a party to the arbitration proceeding.  The costs and  expenses incurred in the course of such arbitration, including reasonable attorneys’ fees, shall be borne by  the party or parties against whose favor the decisions and conclusions of the arbitration panel are  rendered; provided, however, that if the arbitration panel determines that its decisions are not rendered  wholly against the favor of one party or parties or the other, the arbitration panel shall be authorized to  apportion such costs and expenses in the manner that it deems fair and just in light of the merits of the  dispute and its resolution.  The arbitration panel shall have no power or authority under this Agreement or  otherwise to award or provide for the award of punitive, special, indirect or consequential losses or  damages of any kind whatsoever (including lost profits).  Any arbitration shall be conducted in  Greensboro, North Carolina.               [Signatures on following page]     

 

   14 IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement under seal as of  the date first written above.    STOCKHOLDER:               Ki Tai Yeung      PURCHASER:  HF GROUP HOLDING CORP.          By:__________________________________________    Kong Hian Lee, President    COMPANY:  KIRNLAND FOOD DISTRIBUTION, INC.  [For Purposes of Section 5.4]          By:__________________________________________    Kong Hian Lee, President      

 

 

 

   14 IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement under seal as of  the date first written above.    STOCKHOLDER:               Ki Tai Yeung      PURCHASER:  HF GROUP HOLDING CORP.          By:__________________________________________    Kong Hian Lee, President      COMPANY:  KIRNLAND FOOD DISTRIBUTION, INC.  [For Purposes of Section 5.4]          By:__________________________________________    Kong Hian Lee, President

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