Document:

Exhibit 10.11

 

 

		 

 

COMPANY:

 

Lollicup USA, Inc.

Amy Tsen, VP of Finance

6185 Kimball Ave.

Chino, CA 91708

 

 

 

	ITEM	SERVICE
    DESCRIPTION	AMOUNT
	 	 	 
	OA	SEC/IPO
        Advisory Services

        ·      
        Assist with preparation of the Company’s Forms 10-K and 10-Q

        ·      
        Assist with the Company’s S-1 filing process

        ·      
        Assist with drafting of MD&A and any other required disclosures

        ·      
        Assist with other required SEC filings and correspondence

        ·      
        General financial advisory consulting
	$90,000
    - $100,000
	 	 	 
	FS	Financial
        Statements

        ·      
        Assist with drafting the Company’s financial statements in accordance with U.S. GAAP for the year ended December
        31, 2017
	$15,000
    - $20,000
	 	 	 

  

Our other advisory
services hourly billing rates are listed below for your reference and are effective through December 31, 2018. PJ Tech reserve
the rights to adjust the billing rate based on current market rates subsequently with a 30-day advance notice. Advisory services
performed not listed above will be billed in accordance with the rates listed below.

 

	Level	Hourly
    Rate
	Partner	$300
    - $350 per hour
	Manager	$175
    - $200 per hour
	Senior
    Associate	$125
    - $150 per hour
	Associate	$75
    - $125 per hour

 

 

    	 	Page 1 of 3	 

     

    

 

 

TERMS
AND CONDITIONS

 

The
services being provided under this statement of work impair independence under the American Institute of Certified Public Accountants,
Securities and Exchange Commission and Public Company Accounting Oversight Board rules. Therefore, we are not independent and
are unable to provide any attestation services to the Company for any periods during which we provide these accounting services.

 

Our
services under this statement of work do not include services for tax return preparation, tax advice or representation in any
tax matter. Nevertheless, we may discuss with you certain tax considerations or provide you with tax information that may be relevant
to our services. Any such discussions or information would be based upon limited tax research, limited due diligence and limited
analysis regarding the underlying facts. Because additional research or a more complete review of the facts could affect our analysis
and conclusions, the information provided during these discussions should not be used as the basis for proceeding with any transaction
or any tax return reporting.

 

The
Responsibilities of Management

The
financial statements are the responsibility of the Company’s management. You acknowledge that other management responsibilities
include maintaining adequate records and effective internal controls over financial reporting, selecting and applying accounting
principles, and safeguarding assets.

 

Because
PJ Tech LLP (PJ Tech) will rely on the Company and its management and Board of Directors to discharge the foregoing responsibilities,
the Company holds harmless and releases PJ Tech and its partners and employees from all claims, liabilities, losses and costs
arising in circumstances where there has been a knowing misrepresentation by a member of the Company’s management that has
caused, in any respect, PJ Tech’s breach of contract or negligence. This provision shall survive the termination of this
arrangement for services.

 

You
agree that you will not make reference to us in any public or private securities or debt offering.

 

Records
and Assistance

If
circumstances relating to the conditions of your records were to arise during the course of our work that, in our professional
judgment, prevent us from completing the engagement, we will notify you promptly. In such a situation, we retain the unilateral
right to take any course of action permitted by professional standards, including withdrawal from the engagement.

 

During
the course of our engagement, we may accumulate records containing data that should be reflected in the Company’s books
and records. The Company will determine that all such data, if necessary, will so be reflected. Accordingly, the Company will
not expect us to maintain copies of such records in our possession.

 

Other
Relevant Information

PJ
Tech may mention the Company’s name and provide a general description of the engagement in PJ Tech’s client lists
and marketing materials.

 

From
time to time and depending upon the circumstances, we may use third-party service providers to assist us in providing professional
services to you. In such circumstances, it may be necessary for us to disclose confidential client information to them. We enter
into confidentiality agreements with all third-party service providers, and we are satisfied that they have appropriate procedures
in place to prevent the unauthorized release of your confidential information to others. In addition, we may utilize financial
information you have provided to us in connection with this engagement for purposes of creating benchmarking data to be used by
PJ Tech professionals and other clients.

 

Billing

Interim
billings will be invoiced as services are rendered and expenses are incurred, depending on the services offered. AaaS services
are billed on the 1st of the month and are non-refundable. Professional services rendered on an hourly basis (i.e.
audit preparation) will be billed twice a month, typically on the 15th and last day of the month services were rendered.

 

Billings
are due upon submission.

 

Term
of Services

The
terms under this statement of work shall commence on the effective date and shall continue in effect thereafter until the termination
date set forth above. Services under AaaS will continue to be billed on a month-to-month basis after the initial subscription
period until notice of the Company’s intention to terminate such services are provided in writing to PJ Tech by the 15th
day of the month for an effective termination date commencing the following month (i.e. cancellation notice received in
writing by September 15th will be effective October 1st and the Company will not be billed subscription
fees in October; notice received after September 15th will be effective November 1st). AaaS subscription
rates are subject to changes to reflect our current rates after the initial subscription period set forth above, and PJ Tech reserve
the right to adjust the subscription rate for any month-to-month AaaS subscription services with a 30-day advance notice. If no
initial subscription period is specified above, AaaS services will be billed month-to-month until notice of the Company’s
intention to terminate such services are provided in writing to PJ Tech by the 15th day of the month for an effective
termination date commencing the following month. All other services will terminate as set forth above.

 

 

 

    	 	Page 2 of 3	 

     

    

 

 

 

Claim
Resolution

The
Company and PJ Tech agree that no claim arising out of services rendered pursuant to this agreement shall be filed more than two
years after the date of this arrangement. The Company waives any claim for punitive damages. PJ Tech’s liability for all
claims, damages and costs of the Company arising from this engagement is limited to the amount of fees paid by the Company to
PJ Tech for the services rendered under this statement of work.

 

If
any term or provision of this agreement is determined to be invalid or unenforceable, such term or provision will be deemed stricken
and all other terms and provisions will remain in full force and effect.

 

Our
Agreement

This
letter constitutes the complete and exclusive statement of agreement between PJ Tech and the Company, superseding all proposals,
oral or written, and all other communications with respect to the terms of the engagement between the parties.

 

Please
sign and return a copy of this letter to indicate your acknowledgement of, and agreement with, the arrangements for our engagement,
including our respective responsibilities.

 

	 	COMPANY:	 
	 	 	 	 
	 	PJ
    Tech LLP	 
	 	 	 	 
	 	 	 	 
	 	By:
    		 
	 	 	 	 
	 	Name:
    	Peter
    Lee	 
	 	 	 	 
	 	Title:
    	Partner
    & Co-Founder	 
	 	 	 	 
	 	 	 	 
	 	Confirmed
    on behalf of LOLLICUP USA, INC.:
	 	 	 	 
	 	 	 	 
	 	By:
    	/s/ Alan
    Yo	 
	 	 	 	 
	 	 	 	 
	 	Name:
    	Alan Yo	 
	 	 	 	 
	 	 	 	 
	 	Title:
    	CEO	 
	 	 	 	 
	 	 	 	 
	 	Date:
    	June 19,
    2018	 

  

 

    	 	Page 3 of 3Exhibit 10.12

 

 

		

 

COMPANY:

 

Karat Packaging, Inc. and subsidiaries

Alan Yu, CEO

6185 Kimball Ave.

Chino, CA 91708

 

 

 

	ITEM	SERVICE
    DESCRIPTION	AMOUNT
	 	 	 
	AO	CFO
        & Accounting Outsourcing

        Committed
        Service Period: January 1, 2019 – April 30, 2019

         

        Peter
        Lee to serve as the Company’s Interim Chief Financial Officer (CFO) and will commit to approximately 16 hours per
        week to carry out his responsibilities as the Company’s interim CFO, including:

        ·        
        Day-to-day financial management

        ·        
        Supervision and direct accounting & finance team, both internal and external

        ·        
        Meetings with management

        ·        
        Implement and review processes and controls

        ·        
        Reporting & Monitoring KPIs

        ·        
        Business strategy consulting & planning

        ·        
        Assist with drafting of MD&A and other required disclosures

        ·        
        Assist with the Company’s S-1 filing process

         

        Fee for
        Service Period: January 1, 2019 – January 30, 2019

        

        Fee for Service Period: February 1, 2019 – April 30, 2019
	$21,000
        per month2

         

        $19,000
        per month2

	 	 	 
	AaaS	Accounting-as-a-Service
        (AaaS) – Customized Plan

        Monthly
        Accounting & Financial Reporting

        For
        Subscription Period January 1, 2019 – April 30, 2019

         

        Customized
        plan includes our assistance on Company specific projects from our firm’s personnel, as directed under Peter Lee
        and Jennifer Dang. Our team will be onsite as needed to assist the Company with various accounting & financial matters,
        in addition to the specific matters noted below.

        ·        
        Assist with accounting & financial reporting

        ·        
        Audit preparation and liaison 

        ·        
        Technical accounting research and analysis

        ·        
        Assist the Company with internal controls and process implementation

         

        Fee for
        Subscription Period: January 1, 2019 – January 30, 2019

         

        Fee for
        Subscription Period: February 1, 2019 – April 30, 2019

         

         
	$9,600
        per month1

         

        $9,000
        per month1

         

         

 

 

    	 	Page 1 of 4	 

     

    

 

	ITEM	SERVICE
    DESCRIPTION	AMOUNT
	 	 	 
	OA	SEC/IPO
        Advisory Services

        ·      
        Assist with drafting of MD&A and other required disclosures

        ·      
        Assist with the Company’s S-1 filing process

        ·      
        Assist with other required SEC filings and correspondence regarding S-1

        ·      
        Assist the Company in preparing quarterly and yearend schedules for future Forms 10Q and 10K filing
	PAID3
	 	 	 
	FS	Financial
        Statements

        ·     
        Assist with drafting of consolidated financial statements and related disclosures for the Company’s year ended December
        31, 2018

        ·     
        Assist with drafting of the comparative consolidated financial statements and related disclosures for the Company’s
        year ended December 31, 2017 and 2016
	PAID3
	 	 	 

 

The amount
and pricing above are subjected to the following assumptions:

 

1.    
The Company agrees and commits to the subscription period noted above (January 1, 2019 – April 30, 2019) for the monthly
retainer above. The Company is liable to pay the monthly retainer as per these terms even if they should decide to terminate prior
to the end of the service period or not fully utilize the committed hours. As this is a customized subscription plan, AaaS services
will terminate after the subscription period expires, unless re-negotiated between PJ Tech and the Company.

 

Our
fee estimate is based on a budget of 20 – 30 hours per week. Our fee quote assumes our involvement and responsibilities
to be consistent with our commitment under the statement of work amendment #1 dated October 4, 2018. If any unforeseen circumstances
arise that causes a significant change to the scope of work or significant change in our involvement, PJ Tech reserve the right
to modify our fee quote above to accommodate the additional responsibilities. However, no additional billing will occur until
a discussion with the Company and PJ Tech occurs.

 

2.    
The CFO & Accounting Outsourcing services quoted herein are discounted from market rates and our standard rates as a result
of being an AaaS customer. In addition, a 4-month commitment discount on the monthly retainer was applied to the services quoted
above. Once the initial service period is over, CFO & accounting services will continue to be billed on a month-to-month basis
at our current standard rates. To terminate CFO & accounting services subsequent to the initial service period, a 1-month
minimum advance notice in writing is required (i.e. intent to terminate received by Sep 1 will be effective Oct 1, and the Company
will not be billed for October services; intent to terminate received by Sep 10 will be effective Nov 1, and the Company will
be liable for both September and October’s retainer). Monthly retainers are billed on the 1st of the month and
are nonrefundable. Billings are due upon submission.

 

3.    
These services under our statement of work amendment #1 dated October 4, 2018 were fully paid by the Company as of the date of
this statement of work. Our estimate budgeted hours remaining to complete these services is approximately 350 – 450 hours.

 

All services provided
by PJ Tech after the subscription period (unless re-negotiated by the Company and PJ Tech) will be billed at our standard hourly
rates in accordance to the rate chart below. The billing rates below are effective through December 31, 2019. All other services
not described herein will also be billed in accordance with the rate chart below. PJ Tech reserve the rights to adjust the billing
rate based on current market rates subsequently with a 30-day advance notice.

 

	Level	Hourly
    Rate
	Partner	$300
    - $350 per hour
	Manager	$175
    per hour
	Senior
    Associate	$125
    - $150 per hour
	Associate	$75
    - $125 per hour

 

 

    	 	Page 2 of 4	 

     

    

 

 

 

TERMS
AND CONDITIONS

 

The
accounting advisory services being provided under this statement of work impair independence under the American Institute of Certified
Public Accountants, Securities and Exchange Commission and Public Company Accounting Oversight Board rules. Therefore, we are
not independent and are unable to provide any attestation services to the Company for any periods during which we provide these
accounting services.

 

Our
services under this statement of work do not include services for tax return preparation, tax advice or representation in any
tax matter. Nevertheless, we may discuss with you certain tax considerations or provide you with tax information that may be relevant
to our services. Any such discussions or information would be based upon limited tax research, limited due diligence and limited
analysis regarding the underlying facts. Because additional research or a more complete review of the facts could affect our analysis
and conclusions, the information provided during these discussions should not be used as the basis for proceeding with any transaction
or any tax return reporting.

 

The
Responsibilities of Management

The
financial statements are the responsibility of the Company’s management. You acknowledge that other management responsibilities
include maintaining adequate records and effective internal controls over financial reporting, selecting and applying accounting
principles, and safeguarding assets.

 

Because
PJ Tech LLP (PJ Tech) will rely on the Company and its management and Board of Directors to discharge the foregoing responsibilities,
the Company holds harmless and releases PJ Tech and its partners and employees from all claims, liabilities, losses and costs
arising in circumstances where there has been a knowing misrepresentation by a member of the Company’s management that has
caused, in any respect, PJ Tech’s breach of contract or negligence. This provision shall survive the termination of this
arrangement for services.

 

You
agree that you will not make reference to us in any public or private securities or debt offering.

 

Records
and Assistance

If
circumstances relating to the conditions of your records were to arise during the course of our work that, in our professional
judgment, prevent us from completing the engagement, we will notify you promptly. In such a situation, we retain the unilateral
right to take any course of action permitted by professional standards, including withdrawal from the engagement.

 

During
the course of our engagement, we may accumulate records containing data that should be reflected in the Company’s books
and records. The Company will determine that all such data, if necessary, will so be reflected. Accordingly, the Company will
not expect us to maintain copies of such records in our possession.

 

Other
Relevant Information

PJ
Tech may mention the Company’s name and provide a general description of the engagement in PJ Tech’s client lists
and marketing materials.

 

From
time to time and depending upon the circumstances, we may use third-party service providers to assist us in providing professional
services to you. In such circumstances, it may be necessary for us to disclose confidential client information to them. We enter
into confidentiality agreements with all third-party service providers, and we are satisfied that they have appropriate procedures
in place to prevent the unauthorized release of your confidential information to others. In addition, we may utilize financial
information you have provided to us in connection with this engagement for purposes of creating benchmarking data to be used by
PJ Tech professionals and other clients.

 

Billing

Interim
billings will be invoiced as services are rendered and expenses are incurred, depending on the services offered. AaaS services
are billed on the 1st of the month and are non-refundable. Professional services rendered on an hourly basis (i.e.
audit preparation) will be billed twice a month, typically on the 15th and last day of the month services were rendered.

 

Billings
are due upon submission.

 

Term
of Services

The
terms under this statement of work shall commence on the effective date and shall continue in effect thereafter until the termination
date set forth above. Services under AaaS will continue to be billed on a month-to-month basis after the initial subscription
period until notice of the Company’s intention to terminate such services are provided in writing to PJ Tech by the 15th
day of the month for an effective termination date commencing the following month (i.e. cancellation notice received in
writing by September 15th will be effective October 1st and the Company will not be billed subscription
fees in October; notice received after September 15th will be effective November 1st). AaaS subscription
rates are subject to changes to reflect our current rates after the initial subscription period set forth above, and PJ Tech reserve
the right to adjust the subscription rate for any month-to-month AaaS subscription services with a 30-day advance notice. If no
initial subscription period is specified above, AaaS services will be billed month-to-month until notice of the Company’s
intention to terminate such services are provided in writing to PJ Tech by the 15th day of the month for an effective
termination date commencing the following month. All other services will terminate as set forth above.

 

 

    	 	Page 3 of 4	 

     

    

 

 

Claim
Resolution

The
Company and PJ Tech agree that no claim arising out of services rendered pursuant to this agreement shall be filed more than two
years after the date of this arrangement. The Company waives any claim for punitive damages. PJ Tech’s liability for all
claims, damages and costs of the Company arising from this engagement is limited to the amount of fees paid by the Company to
PJ Tech for the services rendered under this statement of work.

 

If
any term or provision of this agreement is determined to be invalid or unenforceable, such term or provision will be deemed stricken
and all other terms and provisions will remain in full force and effect.

 

Our
Agreement

This
letter constitutes the complete and exclusive statement of agreement between PJ Tech and the Company, superseding all proposals,
oral or written, and all other communications with respect to the terms of the engagement between the parties.

 

Please
sign and return a copy of this letter to indicate your acknowledgement of, and agreement with, the arrangements for our engagement,
including our respective responsibilities.

 

	 	COMPANY:	 
	 	 	 	 
	 	PJ
    Tech LLP	 
	 	 	 	 
	 	 	 	 
	 	By:
    	 	 
	 	 	 	 
	 	Name:
    	Peter
    Lee	 
	 	 	 	 
	 	Title:
    	Partner
    & Co-Founder	 
	 	 	 	 
	 	 	 	 
	 	Confirmed
                                         on behalf of KARAT PACKAGING, INC.:

	 	 	 	 
	 	 	 	 
	 	By:
    	/s/ Alan
    Yo	 
	 	 	 	 
	 	 	 	 
	 	Name:
    	Alan Yo	 
	 	 	 	 
	 	 	 	 
	 	Title:
    	CEO	 
	 	 	 	 
	 	 	 	 
	 	Date:
    	January
    1, 2019	 

 

 

 

    	 	Page 4 of 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}]]