Document:

Exhibit 10.8

 

SHARE EXCHANGE AGREEMENT AND PLAN OF
REORGANIZATION

 

This Share Exchange
Agreement and Plan of Reorganization (this “Agreement”) is dated as of September 27, 2018, by and among Karat
Packaging Inc., a Delaware corporation (the “Holding Company”), Alan Yu, an individual (“Yu”),
Marvin Cheng, an individual (“Cheng”), Karat Global Group, LTD., a Taiwan company limited by shares (“Karat”),
and Plutus Investment Holding Company, a Taiwan company limited by shares (“Plutus” and together with Yu, Cheng
and Karat, collectively the “Shareholders” and each, individually, a “Shareholder”), and
Lollicup USA Inc., a California corporation (“Lollicup”). For purposes of this Agreement, the Holding Company,
the Shareholders and Lollicup are sometimes collectively referred to as the “Parties” and each individually
as a “Party.”

 

WHEREAS, the Shareholders
collectively own of record 15,000,000 of the issued and outstanding shares of common stock, no par value, of Lollicup (the “Lollicup
Shares”), with each Shareholder owning of record the amount of Lollicup Shares set forth opposite his or its name below:

 

	Shareholder	 	 	Shares Owned	 
	 	 	 	 	 
	Yu	 	 	 	7,362,498	 
	Cheng	 	 	 	7,362,498	 
	Karat	 	 	 	250,004	 
	Plutus	 	 	 	25,000	 

 

WHEREAS, the Lollicup
Shares collectively held by the Shareholders constitute all of the issued and outstanding capital stock of Lollicup;

 

WHEREAS, each Shareholder
desires to contribute all Lollicup Shares owned by such Shareholder to the Holding Company in exchange for an equal number of shares
of common stock, $0.001 par value, of the Holding Company (the “Holding Company Shares”), with Lollicup continuing
as a wholly owned subsidiary of the Holding Company (the “Exchange”); and

 

WHEREAS, immediately
upon the consummation of the Exchange, the contribution of the Lollicup Shares constitutes a transaction that qualifies as a reorganization
under Section 368(a)(1)(F) of the Internal Revenue Code of 1986, as amended (the “Code”) (“a mere change
in identity form or place of organization of one corporation, however effected”).

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual representations, warranties, covenants and agreements herein contained, and intending
to be legally bound hereby, the parties hereto agree as follows:

 

ARTICLE 1

EXCHANGE

 

1.1           Exchange
of Lollicup Shares for Holding Company Shares. On the terms and subject to the conditions of this Agreement, each Shareholder
hereby contributes, assigns, transfers, conveys and delivers to the Holding Company the Lollicup Shares owned by such Shareholder,
and in consideration and exchange for the Lollicup Shares, the Holding Company hereby issues, assigns, transfers, conveys and delivers
the Holding Company Shares to the Shareholder at an exchange ratio of one (1) Holding Company Share for one (1) Lollicup Share.
The Parties hereby agree and acknowledge that the Lollicup Shares and the Holding Company Shares are not certificated and, therefore,
no stock certificates shall be surrendered or issued by the applicable Party pursuant to the Exchange. The effective date of the
Exchange shall be September 27, 2018 (the “Effective Date”).

 

     

     

    

 

1.2           Waiver
of Transfer Restrictions. As a condition to the Exchange, each Shareholder, jointly and severally, and Lollicup waive all rights,
if any, pursuant to any restriction on the transfer of the Lollicup Shares to the extent necessary to consummate the Exchange and
any other action applicable to the transactions contemplated by this Agreement.

 

ARTICLE
2

REPRESENTATIONS AND WARRANTIES OF THE HOLDING COMPANY

 

The Holding Company
represents and warrants to the Shareholders, as of the date of this Agreement, as follows:

 

2.1           Corporate
Existence. The Holding Company is a corporation duly incorporated, validly existing and in good standing under the laws of
the State of Delaware, with full corporate power and authority to conduct its business as it is presently being conducted.

 

2.2           Authorization.
The Holding Company has all requisite corporate power and authority, and has taken all corporate action necessary, to execute and
deliver this Agreement, to consummate the transactions contemplated by this Agreement and to perform its obligations hereunder.
The execution and delivery by the Holding Company of this Agreement, and the consummation by the Holding Company of the transactions
contemplated hereby, have been duly authorized and approved. This Agreement has been duly executed and delivered by the Holding
Company and constitutes a legal, valid and binding obligation of the Holding Company enforceable against the Holding Company in
accordance with its terms, except that such enforceability may be limited by bankruptcy, insolvency, moratorium or other similar
laws affecting or relating to creditors’ rights generally, and is subject to general principles of equity (“General
Equity Exceptions”).

 

2.3           Capital
Structure. The authorized common stock of the Holding Company consists of 100,000,000 shares of common stock, $0.001 par value.
Immediately prior to giving effect to the Exchange, none of the shares of common stock of the Holding Company were issued and outstanding.
All of the Holding Company Shares to be issued on the Effective Date pursuant to this Agreement have been duly authorized and will
be validly issued, fully paid and non-assessable. As of the Effective Date, there are no outstanding options, warrants, agreements,
commitments, conversion rights, preemptive rights or other rights to subscribe for, purchase or otherwise acquire any shares of
capital stock or any unissued shares of capital stock of the Holding Company. 

 

ARTICLE
3

REPRESENTATIONS AND WARRANTIES OF SHAREHOLDER

 

Each Shareholder hereby
severally represents and warrants to the Holding Company, as of the date of this Agreement, as follows:

 

3.1           Legal
Capacity; Authority. Such Shareholder has the legal capacity and, as applicable, the authority, to enter into this Agreement
and the transactions contemplated herein, and, when this Agreement is executed and delivered by such Shareholder, it shall constitute
a legal, valid and binding obligation, enforceable against him or her in accordance with its terms, subject to the General Equity
Exceptions.

 

     

     

    

 

3.2           Ownership.
Such Shareholder is the sole, direct, legal and beneficial owner of the Lollicup Shares set forth opposite his or her name above,
free and clear of any liens, pledges, security interests, charges, liabilities, encumbrances, restrictions and claims of any kind
or nature, contingent or otherwise (a “Lien”). Such Lollicup Shares are not subject to any preemptive rights,
rights of first refusal or any other right or interest of any third party. There are no outstanding or authorized rights, options,
warrants, convertible securities, subscription rights, conversion rights, redemption rights, exchange rights or other agreements
or commitments of any kind that could require such Shareholder to sell or transfer such Lollicup Shares. There are no proxies,
voting rights or other agreements or understandings with respect to the voting or transfer of such Lollicup Shares.

 

3.3           Ability
to Carry Out Obligations. The execution and delivery of this Agreement by such Shareholder and the performance by such Shareholder
of his or its obligations hereunder in the time and manner contemplated herein will not cause, constitute or conflict with or result
in (a) in the case of Plutus and Karat, any breach or violation of any of the provisions of or constitute a default under any charter
document, bylaw, license, indenture, mortgage, instrument, or other agreement or instrument to which such Shareholder is a party,
or by which it may be bound, nor will any consents or authorizations of any party other than those hereto be required, (b) an event
that would permit any party to any agreement or instrument to terminate it or to accelerate the maturity of any indebtedness or
other obligation of such Shareholder, or (c) an event that would result in the creation or imposition of any Lien on any asset
of such Shareholder.

 

3.4           Own
Account. Such Shareholder is acquiring the Holding Company Shares for such Shareholder’s own account for investment and
not with a view to, or for resale in connection with, a distribution of the Holding Company Shares within the meaning of the Securities
Act of 1933, as amended (the “Securities Act”). In that regard, such Shareholder understands that (a) the Holding
Company Shares have not been registered under the Securities Act or under any state securities laws and are therefore restricted
securities; (b) the Holding Company Shares may not be sold or transferred unless they are registered under the Securities Act or
an exemption from such registration is available; and (c) the Holding Company may place a restrictive legend on the certificate
evidencing the Holding Company Shares reflecting these restrictions.

 

ARTICLE
4

MISCELLANEOUS

 

4.1           Tax
Treatment. This Agreement constitutes a plan of reorganization and the reorganization of Lollicup pursuant to this Agreement
is a tax free reorganization under 368(a)(1)(F) of the Code.

 

4.2           Entire
Agreement. This Agreement contains the sole and entire agreement and understanding of the Parties with respect to the entire
subject matter of this Agreement, and any and all prior discussions, negotiations, commitments and understandings, whether oral
or otherwise, related to the subject matter of this Agreement are hereby merged herein.

 

4.3           Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving
effect to the principles of conflicts of law thereof.

 

4.4           Captions.
The various captions of this Agreement are for reference only and shall not be considered or referred to in resolving questions
of interpretation of this Agreement.

 

     

     

    

 

4.5           Counterparts.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by email delivery of a “pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “pdf”
signature page were an original thereof.

 

[Signature page follows.]

 

     

     

    

 

IN WITNESS WHEREOF, the Parties have executed
this Agreement as of the date first written above.

 

	 	KARAT PACKAGING INC.
	 	 
	 	By:	/s/ Alan Yu
	 	Name:	Alan Yu
	 	Title:	Chief Executive Officer
	 	 
	 	SHAREHOLDERS:
	 	 
	 	/s/ Alan Yu
	 	Alan Yu
	 	 
	 	/s/ Marvin Cheng
	 	Marvin Cheng
	 	 
	 	KARAT GLOBAL GROUP, LTD.
	 	 
	 	By:	/s/ Tsung Kwang Yu
	 	Name:	Tsung Kwang Yu
	 	Title:	President
	 	 
	 	PLUTUS INVESTMENT HOLDING COMPANY
	 	 
	 	By:	/s/ Lin I Chun
	 	Name:  	I Chun Lin
	 	Title:	 
	 	 
	 	LOLLICUP USA INC.
	 	 
	 	By:	/s/ Alan Yu
	 	Name:	Alan Yu
	 	Title:	Chief Executive OfficerExhibit 10.9 

 

ASSIGNMENT AND ASSUMPTION OF GRANTS

(3201 Capital Blvd., Rockwall, TX)

 

THIS ASSIGNMENT AND
ASSUMPTION OF GRANTS (this “Assignment”) is made and entered into as of July 26, 2019, and is effective as
of July 1, 2018 (the “Effective Date”), by and between GLOBAL WELLS INVESTMENT GROUP LLC, a Texas limited liability
company (“Assignor”), and LOLLICUP USA INC., a California corporation (“Assignee”).

 

RECITALS

 

Site Development Grant and Tax Base Incentive
Grant

 

WHEREAS, Assignor
is a party to that certain Land Acquisition, Development and Incentive Agreement by and between Rockwall Economic Development
Corporation, a Texas non-profit corporation (“REDC”), as seller, and LK Global International, LTD., a Texas
limited partnership, as buyer, dated as of July 10, 2017, as amended by that certain First Amendment to Land Acquisition, Development
and Incentive Agreement dated October 10, 2017 and that certain Second Amendment to Land Acquisition, Development and Incentive
Agreement dated effective as of February 9, 2018, as assigned by that certain Assignment and Assumption of Land Acquisition, Development
and Incentive Agreement by and between LK Global International, LTD., a Texas limited partnership, as assignor, and Global Wells
Investment Group LLC, a Texas limited liability company, as assignee, dated February 9, 2018 (as amended and assigned, the “Agreement”;
all capitalized terms used herein and not defined shall have the meaning ascribed to such terms as set forth in the Agreement);

 

WHEREAS, the Commencement
of Business occurred on March 29, 2019; and

 

WHEREAS, as of the Effective
Date, Assignor desires to assign, set over, and transfer unto Assignee, and Assignee desires to accept and assume the rights, duties
and liabilities of all of Assignor’s right, title and interest in the Site Development Grant and the Tax Base Incentive Grant
(collectively, the “Grants”).

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

WITNESSETH:

 

1.            Recitals.
The foregoing recitals are hereby incorporated into this Assignment as contractual terms to the same extent as if set forth herein
in full.

 

2.            Assignment.
As of the Effective Date, Assignor assigns, sets over and transfers unto Assignee, and its successors and assigns, all of Assignor’s
rights, title and interest in and to the Grants, together with all of Assignor’s rights, title and interest thereunder.

 

3.            Assumption.
Assignee hereby accepts the assignment of Assignor’s interest in the Grants, and as of the Effective Date assumes all
rights, duties and liabilities of Assignor under the Grants and shall comply with all of the terms and conditions of the
Grants; provided, however, this assumption shall not extend to any previously disclosed existing default by Assignor under
the Grant.

 

4.            Conditions
of Assignment. In order to induce REDC to consent to the assignment of the Grants as set forth herein, Assignor and Assignee
hereby acknowledge, agree and stipulate as follows, for the benefit of each other and REDC:

 

    	 

     

    

 

(a)           Prior
to the date that this Assignment is entered into, REDC has made payments of the Grants directly to Assignee in the following amounts:
(i) the first three installments of the Site Development Grant, totaling $450,000.00, and (ii) the first installment of the Tax
Base Incentive Grant, in the amount of $150,000.00. Assignee acknowledges receipt of all the foregoing payments, and Assignor disclaims
any and all interest in all such amounts.

 

(b)           Assignor
hereby directs that REDC make all future payments of the Grants that are payable under the terms and conditions of the Agreement
directly to Assignee at such time as such amounts are due and payable under the Agreement.

 

(c)           Assignee
shall be jointly and severally liable to REDC for any repayment of the Grants (or any portion thereof) that is required under the
terms of the Agreement, together with any interest accrued thereon pursuant to the terms of the Agreement.

 

(d)           The
payment of the Grants (or portions thereof) by REDC, and Assignee’s rights to receive and use the same, are subject to all
terms and conditions of the Agreement (including but not limited to the satisfaction of all conditions precedent to any such payment).

 

(e)           Assignee’s
right to receive payment of the Grants pursuant to this Assignment is the extent of Assignee’s rights pertaining to the Agreement
and the Grants.

 

(f)            The
Land Acquisition Incentive and the City Fee Grant (i) are not a part of this Assignment, (ii) have not been previously assigned
by Assignor to Assignee or any other party, and (iii) have been paid in full by REDC and received by Assignor (or, in the case
of the City Fee Grant, paid by REDC to the City on Assignor’s behalf) prior to the date of this Assignment.

 

5.            Severability.
If any term or provision of this Assignment, or the application thereof, to any persons or circumstances shall, to any extent,
be invalid or unenforceable, the remainder of this Assignment or the application of such term or provision to persons or circumstances
other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of
this Assignment shall be valid and enforced to the fullest extent permitted by law.

 

6.            Counterparts.
This Assignment may be executed in counterparts, including electronically, each of which shall be an original and all of which
when taken together shall constitute one and the same agreement. Executed copies of this Assignment may be delivered by facsimile,
PDF or e-mail, and, upon receipt, shall be deemed originals and binding upon the parties hereto.

 

7.            Governing
Law. The provisions of this Assignment and all questions with respect to the construction and enforcement thereof and the rights
and liabilities of the parties hereto shall be governed by, and construed and enforced in accordance with, the laws of the State
of Texas, without giving effect to any conflicts of law principles thereof.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

    	 

     

    

 

 

IN WITNESS WHEREOF,
the parties hereto have caused this Assignment to be executed the day and year first above written.

 

	ASSIGNOR:	 
	 	 
	GLOBAL WELLS INVESTMENT GROUP LLC,	 
	a Texas limited liability company	 

 

	By:	/s/ Alan Yu	 
	Name:	Alan Yu    	 
	Title:	Manager	 

 

	ASSIGNEE:	 
	 	 
	LOLLICUP USA INC.,	 
	a California corporation	 

 

	By:	/s/ Marvin Cheng	 
	Name:	Marvin
    Cheng	 
	Title:	Secretary	 

 

CONSENT OF SELLER:

 

The undersigned hereby joins in the execution of this
Assignment for the sole purpose of evidencing its consent to this Assignment as required by Section 7.1 of the Agreement.

 

ROCKWALL ECONOMIC DEVELOPMENT CORPORATION,

a Texas
non-profit corporation

 

	By:	/s/ Phillip Wagner	 
	Name:	Phillip Wagner	 
	Title:	President

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