Document:

Exhibit 10.1

 

 

WAIVER
AND AGREEMENT FOR ISSUANCE OF WARRANT

This Waiver and
Agreement for Issuance of Warrant ("Waiver Agreement") dated as of 31st day of March, 2020 is entered into
by and among Antara Capital Master Fund LP ("Lender") as Required Lenders under the Existing Financing Agreement and
as a Second Incremental Term Lender (in each case as defined in the Second Incremental Amendment) and EVO Transportation &
Energy Services, Inc. (the "Company") and Cortland Capital Market Services LLC, as administrative agent and collateral
agent (“Agent”).

 

WHEREAS,
Lender has multiple investments in the Company including warrants and notes;

WHEREAS,
Lender is a party to an Amendment to Forbearance Agreement and Second Incremental Amendment to Financing Agreement, dated as of
March 24, 2020 (the “Second Incremental Amendment”), by and among the Company, all subsidiaries of the Company,
Lender, and Agent;

WHEREAS,
in Section 2 of the Second Incremental Amendment, the Company has agreed to make a mandatory prepayment (“Prepayment”)
to Agent of fifty percent (50%) of the amount of claimed reimbursements for certain previously provided services in the aggregate
amount of not less than $3,000,000 received by the Company (the “USPS Reimbursements”) and

 

WHEREAS,
Lender and the Company have determined it is in the best interests of the Company to seek a waiver of the Prepayment on such terms
as it may agree with Lender;

NOW
THEREFORE, in consideration of the foregoing mutual premises, the terms contained herein and other good and valuable consideration
the sufficiency of which is hereby acknowledged. Lender and the Company agree as follows:

1.            Waiver and Amendment.

a.                 
Conditioned specifically upon (i) the prior issuance on May 29, 2020 (or on such earlier date as Second Incremental Term
Lender may request on five Business Day prior written notice to Company) by the Company to Second Incremental Term Lender of the
warrant provided for in Section 2 hereinbelow and (ii) the prior issuance on or before April 3, 2020 by the Company to Danny Cuzick
of a warrant for the purchase of 3,250,000 of the Company's shares of common stock at $2.50 per share with such warrant substantially
in the form of the warrant issued to Antara Capital Master Fund LP on February 27, 2020, Lender, in its capacity as the sole Second
Incremental Term Lender and Required Lenders, without need for further action by Lender in any capacity, hereby fully waives and
rescinds the mandatory prepayment obligation provided for in Section 2 of the Second Incremental Agreement; and

 

    

     

    

 b.                 
Required Lenders and Company agree that Section 4.03 of the Second Incremental Amendment is amended by deleting each reference
to “March 31, 2020” set forth in such Section 4.03 and inserting in place thereof a reference to “April 10,
2020.”

2.              Warrants. As compensation to Second Incremental Term Lender for waiving the mandatory prepayment set forth in Section
2 of the Second Incremental Agreement, and with the consent of Required Lenders, the Company hereby agrees to issue to Second Incremental
Term Lender on May 29, 2020 (or on such earlier date as Second Incremental Term Lender may request on five Business Day prior written
notice to Company) a warrant for the purchase of 3,250,000 of the Company's shares of common stock at $2.50 per share with such
warrant substantially in the form of the warrant issued to Lender on February 27, 2020.

3.              Governing Law. This Waiver Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York, without reference to conflict of law principles, including all matters of construction, validity and performance.

4.             
Submission to Jurisdiction. Any state or federal court sitting in New York, New York will retain exclusive jurisdiction
to enforce the terms of this Waiver Agreement and to decide any claims or disputes which may arise or result from, or be connected
with, this Waiver Agreement. Any and all judicial, administrative or arbitral actions, suits, proceedings (public or private),
investigations, claims or demands (collectively, “Legal Proceedings”) related to the foregoing will be filed and maintained
only in New York state or federal court, and the parties hereby consent to and submit to the jurisdiction and venue of such New
York state or federal court for such purposes. The parties hereby irrevocably waive, to the fullest extent permitted by applicable
law, any objection which they may now or hereafter have to the laying of venue of any such dispute brought in such court or any
defense of inconvenient forum for the maintenance of such dispute. Each of the parties agrees that a judgment in any such Legal
Proceeding may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by any federal, state,
local or foreign law, statute, directive, code, ordinance, rule or regulation, binding interpretations or common law requirement.

5.              Further Assurances. Each of the parties agrees that it will take such actions and execute such additional documents
as may be reasonably requested by the other party in order to effectuate more fully the purposes and intent of this Waiver Agreement.
This agreement may be executed in counterparts. Electronically transmitted signatures are enforceable as originals. This Waiver
Agreement modifies the Second Incremental and is a Loan Document under the Financing Agreement defined therein.

6.              Specific
Performance. In the event of any actual or threatened default in, or breach of, any of the terms, conditions and
provisions of this Waiver Agreement, the party who is or is to be thereby aggrieved will have the right of specific
performance and injunctive relief giving effect to its or their rights under this Waiver Agreement, in addition to any and
all other rights and remedies at law or in equity, and all such rights and remedies will be cumulative. The parties agree
that any such breach or threatened breach would cause irreparable injury, that the remedies at law for any such breach or
threatened breach, including monetary damages, are inadequate compensation for any loss and that any defense in any action
for specific performance that a remedy at law would be adequate is waived.

 

[Signature Pages
Follow] 

    

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Waiver Agreement.

EVO TRANSPORTATION
& ENERGY SERVICES, INC.

 

 

	By:	/s/ Thomas
J. Abood	 
	 	Name: Thomas
J. Abood	 
	 	Title: Chief
Executive Officer	 

 

 

    

     

    

 

 

ANTARA CAPITAL
MASTER FUND LP

  

	 	By:	
    Antara Capital LP, not in its individual corporate

capacity, but solely as Investment Advisor and agent

	 	 	

 

	 	By:	Antara
Capital GP LLC,
	 	 	its general
partner

 

	 	By:	/s/ Himanshu Gulati	 
	 	 	Name: Himanshu
Gulati
	 	 	Title: Managing
Member

 

 

 

    

     

    

ADMINISTRATIVE
AGENT AND COLLATERAL AGENT:

CORTLAND CAPITAL
MARKET SERVICES LLC,

as Administrative
Agent and Collateral Agent

 

 

	By:	/s/ Matthew Trybula	 
	Name: Matthew Trybula	 
	Title: Associate Counselex_180329.htm

 

Exhibit 10.1

 

MUTUAL RESCISSION AGREEMENT

 

This MUTUAL RESCISSION AGREEMENT (“Agreement”) is entered into as of April 1, 2020, by and between HF FOODS GROUP INC., a Delaware corporation (“HFFG”); and the HFFG Shareholders who subscribe to this Agreement, and their assigns, collectively referred to as the “Rescinding Shareholders”.

 

RECITALS

 

WHEREAS, on or about November 4, 2019, HFFG, B&R Global Holdings, Inc. (“B&R”), and the shareholders of B&R entered into a Merger Agreement wherein HFFG and B&R merged and combined their businesses, and pursuant to which the shareholders of B&R acquired shares of HFFG common stock in exchange for their shares in B&R (the “Merger Agreement”);

 

WHEREAS, pursuant to the terms of the Merger Agreement, the Rescinding Shareholders entered into a Tag along Agreement dated as of November 4, 2019, by the terms of which the Rescinding Shareholders agreed to certain rights and restrictions relating to their disposition of their respective shares of HFFG common stock (the “Tag Along Agreement”);

WHEREAS, the Rescinding Shareholders have requested that the Tag Along Agreement be rescinded; and

 

WHEREAS, HFFG desired to consent to rescission of the Tag Along Agreement pursuant to the terms of this Agreement;

 

NOW, THEREFORE, in consideration of the foregoing and of the covenants, agreements, representations and warranties hereinafter contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, HFFG and the Rescinding Shareholders agree as follows:

 

ARTICLE I

MUTUAL RESCISSION

 

1.1 Authority. Each party represents and warrants that such party has the authority to enter into, execute and deliver this Agreement and any other instruments and agreements required to be executed and delivered pursuant to this Agreement and to consummate the transactions contemplated herein, and that this Agreement is a valid and binding obligation of each party, enforceable in accordance with its terms.

 

1.2. Rescission. The Tag Along Agreement is hereby retroactively rescinded and terminated as of November 4, 2019, is of no force or effect as if the same had never been executed and delivered, and each of the Parties to this Agreement will be restored to the position it was in immediately before the Tag Along Agreement was executed, with respect to their respective interests in HFFG common stock.

 

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1.3 Confirmation of Other Agreements. The Merger Agreement and all agreements ancillary thereto, except for the Tag Along Agreement, shall remain in full force and effect, and are hereby ratified, approved and confirmed..

 

 

1.4 Covenant to Cooperate with Audit if Necessary. The Rescinding Shareholders hereby covenant and agree to use their best efforts to cooperate with HFFG and provide HFFG any necessary documentation and/or records and/or information to assist HFFG in any filing or disclosure matter required by the Securities and Exchange Commission, Nasdaq, or Federal/State law related to the consummation of the transactions authorized by this Agreement.

 

1.5 Other Filings. Each party shall mutually cooperate and file any documents deemed necessary to be filed with American Stock Transfer and Trust LLC, and/or the Delaware Secretary of State related to the consummation of the transactions authorized by this Agreement.

 

ARTICLE II

INDEMNIFICATION OBLIGATIONS

 

2.1 Indemnification by Rescinding Shareholders. In addition to any other remedies available under applicable law, Rescinding Shareholders shall indemnify, defend, and hold harmless HFFG and its officers, directors, managers, employees and consultants (collectively, the “HFFG Indemnitees”) against and in respect of any and all losses that the HFFG Indemnitees shall incur or suffer after the date of this Agreement and which arise out of the incorrectness, untruth, or breach of any warranty, representation or covenant made in this Agreement by Rescinding Shareholders.

 

ARTICLE III

GENERAL PROVISIONS

 

3.1. Survival. The representations and warranties made by the parties hereto in this Agreement, and their respective obligations to be performed under the terms hereof at, prior to or after the date of this Agreement, shall not expire with, or be terminated or extinguished by the signing and delivery of this Agreement or the consummation of the transactions authorized hereby, notwithstanding any investigation of the facts constituting the basis of the representations and warranties of any party by any other party hereto.

 

3.2. Further Assurances. At the request of any of the parties hereto, and without further consideration, the other parties agree to execute such documents and instruments and to do such further acts as may be necessary or desirable to effectuate the transactions contemplated hereby.

 

3.3. Each Party to Bear Own Costs. Each of the parties shall pay all costs and expenses incurred or to be incurred by him or it in negotiating and preparing this Agreement and in closing and carrying out the transactions contemplated by this Agreement.

 

2

 

 

3.4. Headings. The subject headings of the Articles and Sections of this Agreement are included for purposes of convenience only, and shall not affect the construction or interpretation of any of its provisions.

 

3.5. Entire Agreement; Waivers. This Agreement and the exhibits hereto constitute the entire agreement between the parties pertaining to the contemporaneous agreements, representations, and understandings of the parties, and this Agreement supersedes in their entirety any and all prior verbal or written agreements pertaining to the subject matter hereof, including, without limitation, any letter of intent. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by all parties. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

 

3.6. Third Parties. Except for the provisions of Section 3.12 herein, nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties to it and their respective successors and assigns, nor, except for the provisions of Section 3.12 herein, is  anything in this Agreement intended to relieve or discharge the obligation or liability of any third person to any party to this Agreement, nor shall any provision give any third persons any right of subrogation or action over against any party to this Agreement.

 

3.7. Successors and Assigns. This Agreement shall be binding on, and shall inure to the benefit of, the parties to it and their respective heirs, legal representatives, successors, and assigns.

 

3.8. Notices. All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly given on the second day after emailing if emailed to the party to whom notice is to be given, and properly addressed as follows:

 

To Rescinding Shareholders

Care of Peter Zhang

19319 Arenth Avenue

City of Industry, CA 91748

 

To HFFG

Attn: Zhou Min Ni

Chief Executive Officer

6001 W. Market Street

Greensboro, NC 27409

 

Any party may change his or its address for purposes of this paragraph by giving notice of the new address to each of the other parties in the manner set forth above.

 

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3.9. Attorneys' Fees. In the event that any legal proceeding is brought to enforce or interpret any of the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees whether or not the action or proceeding proceeds to final judgment.

 

3.10. Governing Law; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, excluding that body of law relating to conflict of laws. To the fullest extent permitted by law, and as separately bargained-for-consideration, each party hereby knowingly and voluntarily waives and relinquishes any right to trial by jury in any action, suit, proceeding, or counterclaim of any kind arising out of or relating to this Agreement. Any lawsuits related to this Agreement shall be litigated exclusively in the State of North Carolina, Guilford County Superior Court, as HFFG’s headquarters are located in that jurisdiction.

 

3.11. Acknowledgement and Assent.  The parties, and each of them, acknowledge that to have been given sufficient time to consider the terms and conditions of this Agreement; and have been advised to consult with an attorney prior to signing this Agreement and has in fact consulted with counsel of his own choosing prior to executing this Agreement. The parties, and each of them, agree to have read this Agreement and understand the content herein, and freely and voluntarily assents to all of the terms herein.

 

3.12. Release of Scrivener.  Notwithstanding any law to the contrary, ambiguities in this Agreement or in any other document executed and delivered in connection herewith shall not be resolved against any party due to the drafting thereof by one party or the other. The parties are relying on independent counsel of their choosing to advise them regarding the rights and obligations created by this Agreement.

 

3.13. Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the parties have executed this Mutual Rescission Agreement effective on the day and year first indicated above.

 

HF FOODS GROUP INC.

 

                                                                

ZHOU MIN NI, CEO

Dated:                                                    

 

RESCINDING SHAREHOLDERS

 

 

                                                                

Zhou Min Ni

Dated:                                                   

 

4

 

 

IRREVOCABLE TRUST FOR RAYMOND NI

 

 

By:                                                                

      Name: Jian Ming Ni

      Title: Trustee

Dated:                                                   

 

IRREVOCABLE TRUST FOR AMANDA NI

 

 

By:                                                                

      Name: Jian Ming Ni

      Title: Trustee

Dated:                                                   

 

IRREVOCABLE TRUST FOR IVY NI

 

 

By:                                                                

      Name: Jian Ming Ni

      Title: Trustee

Dated:                                                   

 

 

IRREVOCABLE TRUST FOR TINA NI

 

 

By:                                                                

      Name: Jian Ming Ni

      Title: Trustee

Dated:                                                   

 

 

                                                                        

Xiao Mou Zhang

Dated:                                                   

 

 

                                                                        

Xiao Yong Zhang

Dated:                                                   

 

 

                                                                        

Hua Zhang

Dated:                                                   

 

 

                                                                        

Yan Zhen Zheng

Dated:                                                   

 

5

 

 

 

                                                                        

Yu Zhou Zheng

Dated:                                                   

 

 

SPOT LIGHT INVESTMENTS, LLC

 

By:                                                                

Name: Xiao Mou Zhang

Title: Manager

Dated:                                                   

 

 

                                                                        

Allen Xinbin Lin

Dated:                                                   

 

 

                                                                        

Guan Li Liu

Dated:                                                   

 

 

                                                                        

Hua Gui Liang

Dated:                                                   

 

 

                                                                        

Jia Jing Zheng

Dated:                                                   

 

6

 

 

JJ & J DEVELOPMENT, LLC

 

By:                                                                

Name:

Title:

Dated:                                                   

 

 

LINNI HOLDINGS LLC

 

By:                                                                

Name:

Title:

Dated:                                                   

 

 

                                                                        

Xiao Peng Guan

Dated:                                                   

 

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