Document:

Exhibit 10.13

 

CONTRACT CHIEF FINANCIAL OFFICER
AGREEMENT

 

THIS
CONTRACT CHIEF FINANCIAL OFFICER AGREEMENT (the “AGREEMENT”) is dated as of the 1st day of July, 2019. It is made and
entered into by and between Karat Packaging Inc., a Delaware corporation, located at 6185 Kimball Ave., Chino, CA 91708 (hereinafter
referred to as the “Company’), and PJ Tech LLP, a California Limited Liability Partnership, located at 555 West 5th
Street, 35 Floor, Los Angeles, CA 90013 (hereinafter referred to as “PJ Tech”).

 

RECITALS

 

WHEREAS, PJ Tech has specialized
financial skills, experience and knowledge to help the Company with its fully reporting requirements;

 

WHEREAS, the Company is
desirous of retaining (1) PJ Tech to perform general finance and accounting advisory services and (2) Peter Lee, Partner and Co-Founder
of PJ Tech, as Interim Chief Financial Officer, and PJ Tech is desirous of continuing its existing relationship with the Company;

 

WHEREAS, the Company is
willing to enter into an agreement with PJ Tech to provide services for the Company, but only upon the terms and condition provided
for hereinafter; and

 

NOW, THEREFORE, IN CONSIDERATION
of the mutual promises made herein and certain additional valuable consideration, as provided for hereafter, it is AGREED, that

 

1.
SERVICES. Engagement of PJ Tech and in connection therewith agrees to perform the following services (the “Services”):

 

		(a)	Interim Chief Financial Officer (“Interim CFO”) services provided by Peter Lee (“Peter”).
As Interim CFO, Peter will consult on various accounting and financial reporting matters with the Company’s Board of Directors,
the officers of the Company, and the heads of the Company’s administrative staff, at reasonable times. Peter shall be responsible
for the accuracy of the Company’s financial results, including reviewing the Quarterly interim financial statements and the
required preparation work for the year-end audit. In net, Peter acts as an external part-time CFO providing the Company with the
tools, systems and support necessary to complete the financial reporting responsibilities of the business. Peter is expected to
devote 20 hours per week to the business of the Company and to all of the duties that may be required by the terms of this Agreement
to the reasonable satisfaction of the Company. Peter is expected to attend one monthly Executive meeting at the Company’s
corporate headquarters’ in Chino, CA during the term of this agreement.

 

		(b)	In addition, PJ Tech will also provide general finance and accounting advisory services, including
assistance on Company specific projects utilizing its firm’s personnel, as directed under Peter, and as outlined in Exhibit
A.

 

    	 

     

    

 

Peter and PJ Tech is expected to
be onsite at the Company’s corporate headquarters’ in Chino, CA during the term of this agreement for 2 days per week.

 

The Company agrees to retain PJ
Tech to provide such services under the terms and conditions set forth herein. PJ Tech agrees to render all services under this
Agreement in a professional and business-like manner and in full accordance with the terms and conditions of this Agreement. During
the term of this Agreement, PJ Tech shall devote its energy, skill and best efforts to promote the Company’s business and
affairs and to perform their duties hereunder.

 

2.
TERM AND SERVICE FEE. The Company shall pay PJ Tech for their services as follows:

 

2.1 TERM.
This agreement is effective commencing July 1,2019 and through December 31,2019, unless it is terminated earlier in accordance
with subsection 6 (the “Term”).

 

2.2 SERVICE
FEE. PJ Tech will be paid a service fee of (1) $22,000 per month for the Interim CFO services provided by Peter and (2) $16,000
per month for the finance and accounting advisory services provided by its firm’s personnel. The $38,000 retainer is due
at the beginning of each month.

 

The compensation set out above
will be PJ Tech’s sole compensation under this agreement.

 

3.
INDEPENDENT CONTRACTOR STATUS. PJ Tech is an independent contractor. PJ Tech and its firm’s personnel shall not be
deemed for any purpose to be an employee or agent of Company, and neither party shall have the power or authority to bind the
other party to any contract or obligation. PJ Tech is not entitled to unemployment insurance or workers compensation
insurance and PJ Tech shall be solely responsible for timely remittance to appropriate authorities of all federal, state, and
local taxes and charges incident to the provision of and payment of compensation for Services, and to the operation of PJ
Tech’s business, including but not limited to payment of worker’s compensation insurance premiums, social
security taxes (FICA, FUTA, OASDI, Medicare hospitalization), and federal and state income taxes (including quarterly
estimated taxes). PJ TECH SHALL NOT HOLD ITSELF OUT OR OTHERWISE REPRESENT ITSELF TO ANY PERSON OR ENTITY AS ANYTHING OTHER
THAN AN INDEPENDENT CONTRACTOR OF THE COMPANY, REGARDLESS OF ANY TITLE OR DESIGNATION THAT PJ TECH MAY HOLD WITH THE
COMPANY.

 

4.
BEST EFFORTS OF PJ TECH. PJ Tech is expected to devote the minimum hours per month as set forth in Subsection 2.2 to the
business of the Company and to all of the duties that may be required by the terms of this Agreement to the reasonable
satisfaction of the Company. PJ Tech shall at all times faithfully, with diligence and to the best of their ability,
experience and talents, perform all the duties that may be required of and from them pursuant to the express and implicit
terms hereof to the reasonable satisfaction of the Company. Such services shall be rendered at such place or places as the
Company and/or PJ Tech shall in good faith require or as the interest, needs, business or opportunity of the Company shall
require.

 

5.
EXPENSES. PJ Tech is authorized to incur reasonable expenses. The Company shall reimburse PJ Tech for all such
out-of-pocket expenses on the presentation by PJ Tech, from time to time, of an itemized account of such expenditures in
accordance with the guidelines set forth by the Internal Revenue Service.

 

    	 

     

    

 

6. TERMINATION.
Upon the expiration of the Term as set forth in Subsection 2.1, PJ Tech can terminate this agreement by giving the Company sixty
(30) days notice to the Company. The Company can terminate this agreement by giving PJ Tech sixty (30) days notice. The Company
can terminate this agreement immediately, without penalties, by demonstrating willful misconduct, malfeasance, gross negligence
or other like conduct adversely affecting the best interests of the Company, including, without limitation, (i) the failure or
neglect by PJ Tech to perform their duties hereunder; (ii) the commission of any felony against the Company, including, without
limitation, any fraud against the Company, any of its affiliates, clients or customers of the Company.

 

7. CONFIDENTIALITY.
PJ Tech shall not divulge to others any information they may obtain during the course of their term relating to their services
for the Company without first obtaining written permission of the Company.

 

8. RETURN
OF DOCUMENTS. On termination of PJ Tech’s services with the Company, or at any time upon the request of the Company or
its affiliates, PJ Tech shall return to the Company all documents, including all copies thereof, and all other property relating
to the business or affairs of the Company, including, without limitation, customer lists, agents or representatives lists, commission
schedules and information manuals, letters, materials, reports, lists and records (all such documents and other property being
hereinafter referred to collectively as the “Materials”), in its possession or control, no matter from whom or in what
manner they may have acquired such property. PJ Tech acknowledges and agrees that all of the Materials are property of the Company
and releases all claims of right of ownership thereto.

 

During the Term of PJ Tech’s
services to the Company, PJ Tech 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
PJ Tech to maintain copies of such records in our possession.

 

9. REPORTING.
PJ Tech shall not be required to provide regular reports to the Company.

 

10. OTHER
ACTIVITIES. During the Term of PJ Tech’s services to the Company, PJ Tech is free to engage in other business activities,
except that PJ Tech may not accept work, enter into contracts, or accept obligations inconsistent or incompatible with PJ Tech’s
obligations or the scope of Services to be rendered for the Company under this agreement.

 

11.
INDEMNIFICATION.

 

11.1 Of Company by PJ
Tech. At all times after the effective date of this agreement, PJ Tech shall indemnify the Company and its officers,
members, managers, employees, owners, subcontractors, sublicensees, affiliates, subsidiaries, successors, and assigns
(collectively, the “Company Indemnitees”) from all damages, liabilities, expenses, claims, or judgments
(including interest, penalties, reasonable attorneys’ fees, accounting fees, and expert witness fees) (collectively,
the “Claims”) that the Company indemnitees may incur and that arise from:

 

    	 

     

    

 

		(i)	PJ Tech’s negligence or willful misconduct arising
from PJ Tech’s carrying out of its obligations under this agreement;

 

		(ii)	PJ Tech’s breach of any of its obligations or representations
under this agreement; or

 

		(iii)	PJ Tech’s breach of its express representation
that it is an independent contractor and in compliance with all applicable laws related to work as an independent contractor.

 

11.2 Of
PJ Tech by Company. At all times after the effective date of this agreement, the Company shall indemnify PJ Tech and its officers,
members, managers, employees, agents, contractors, sublicensees, affiliates, subsidiaries, successors, and assigns (collectively,
the “PJ Tech Indemnitees”) from all Claims that PJ Tech indemnitees may incur arising from:

 

		(i)	The Company’s operation of its business;

 

		(ii)	The Company’s breach or alleged breach of, or its
failure or alleged failure to perform under, any agreement to which it is a party; or

 

		(iii)	The Company’s breach of any of its obligations
or representations under this agreement. However, the Company is not obligated to indemnify PJ Tech indemnitees if any of these
Claims result from PJ Tech indemnitees’ own actions or inactions.

 

12. FORCE
MAJEURE. A party will not be considered in breach of or in default because of, and will not be liable to the other party for,
any delay or failure to perform its obligations under this agreement by reason of fire, earthquake, flood, explosion, strike, riot,
war, terrorism, or similar event beyond that party’s reasonable control (each a “Force Majeure Event”). However,
if a Force Majeure Event occurs, the affected party shall, as soon as practicable, notify the other party of the Force Majeure
Event and its impact on performance under this agreement and use reasonable efforts to resolve any issues resulting from the Force
Majeure Event and perform its obligations under this agreement.

 

13. ASSIGNMENT
OF CONTRACT. PJ Tech may not assign its rights under this Agreement without the written consent of the Company.

 

14. GOVERNING
LAW. This Agreement, and the rights and obligations of the parties hereto, shall be governed by and construed in accordance
with the laws of the State of California without regard to principles of conflict of laws. Each of the parties waives any right
to object to the jurisdiction or venue of such courts or to claim that such courts are an inconvenient forum.

 

15. AMENDMENT.
No amendment to this agreement will be effective unless it is in writing and signed by a party.

 

    	 

     

    

 

16.
COUNTERPARTS; ELETRONIC SIGNATURES.

 

16.1. Counterparts.
The parties may execute this agreement in any number of counterparts, each of which is an original but all of which constitute
one and the same instrument.

 

16.2. Electronic
Signatures. This agreement, agreements ancillary to this agreement, and related documents entered into in connection with this
agreement are signed when a party’s signature is delivered by facsimile, email, or other electronic medium. These signatures
must be treated in all respects as having the same force and effect as original signatures.

 

17. NOTICES.
Each party giving or making any notice, request, demand, or other communication required or permitted by this agreement shall give
that notice in writing and use one of the following types of delivery, each of which is a writing for purposes of this agreement:
personal delivery, mail (registered or certified mail, postage prepaid, retum-receipt requested), nationally recognized overnight
courier (fees prepaid), or email. No notice or other required or permitted communication shall be effective unless and until received.
A notice is effective only if the party giving notice complies with the terms stated herein. A Party shall address notices under
this section to a party at the following addresses:

 

If to the Company:

 

Karat Packaging, Inc.

6185 Kimball Ave.

Chino, CA 91708

 

If to PJ Tech:

 

PJ Tech LLP

555 West 5th Street, 35th Floor

Los Angeles, CA 90013

 

18.
MODIFICATION AND WAIVER. No waiver of a breach, failure of any condition, or any right or remedy contained in or granted
by the provisions of this agreement will be effective unless it is in writing and signed by the party waiving the breach,
failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach,
failure, right, or remedy, whether or not similar, and no waiver will constitute a continuing waiver, unless the writing so
specifies.

 

    	 

     

    

 

19.
REMEDIES FOR BREACH. PJ Tech recognizes and acknowledges that the remedy at law for a breach by PJ Tech of any of the
covenants contained in this Agreement shall be inadequate. PJ Tech agrees that the Company, in addition to all other legal
and equitable remedies it may have, shall have the right to injunctive relief to enforce the provisions of this Agreement if
there is such a breach or threatened breach. The Company hereby expressly reserves the right to offset any costs it incurs as
a result of any breach of this Agreement by PJ Tech against any amounts payable to PJ Tech hereunder and the right to
terminate this Agreement upon written notice for a breach of this Agreement by PJ Tech. Both parties shall have all other
rights and remedies available at law or in equity for a breach or threatened breach of this Agreement. PJ Tech agrees that
all sums payable to it under this Agreement shall be available to the Company to satisfy PJ Tech’s breach of this
Agreement and to satisfy PJ Tech’s indemnity agreement set forth herein. If any action at law or in equity is necessary
to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to recover its reasonable costs
and attorneys’ fees from the other party.

 

20.
SEVERABILITY. If any provision of this Agreement is held to be illegal, invalid or unenforceable, such provision may be
removed. Thereafter, the Agreement shall be considered to be legal, valid or enforceable provision as though the removed
provision had never comprised a part of the Agreement. The remaining provisions of this Agreement shall remain in full force
and effect and shall not be affected by the illegal, invalid or unenforceable provision or by their removal from this
Agreement.

 

21.
NO PARTNERSHIP OR JOINT VENTURE. Nothing in this Agreement is either intended and should not in any way be construed to
create any form of joint venture, partnership or agency relationship of any kind between the Company and PJ Tech. The parties
expressly disclaim any intention of any kind to create any such relationship between themselves.

 

22.
ENTIRE AGREEMENT. This Agreement constitutes the entire Agreement, representation and understanding of the parties hereto
with respect to the subject matter hereof, and no amendment or modification shall be valid or binding unless made in writing
and signed by the parties to this Agreement. This Agreement supersedes any and all other agreements, either oral or written,
between the Company and PJ Tech with respect to the subject matter hereof, and contains all of the covenants and agreements
between the parties relating in any way to PJ Tech’s services for the Company. Neither party was induced to enter this
agreement by, and neither party is relying on, any statement, representation, warranty, or agreement of the other party
except those set forth expressly in this agreement. Except as set forth expressly in this agreement, there are no conditions
precedent to this agreement’s effectiveness.

 

23.
HEADINGS. The descriptive headings of the sections and subsections of this agreement are for convenience only, and do not
affect this agreement’s construction or interpretation.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 

     

    

 

IN WITNESS WHEREOF, the parties have executed this Agreement
or caused this Agreement to be executed on the date first set forth above.

 

	Karat
    Packaging, Inc.	 
	(“The Company”)	 
	 	 
	/s/ Alan Yu	 
	By:
    Alan Yu	 
	Title: CEO	 
	 	 
	Date:	 7/1/2019	 
	 	 
	PJ Tech LLP	 
	(“PJ Tech”)	 
	 	 
	/s/ Peter Lee	 
	By:
    Peter Lee	 
	Title: Partner &
    Co-Founder	 
	 	 
	Date:  	7/1/2019	 

 

    	 

     

    

 

Exhibit A

 

During the term of our engagement, PJ Tech will provide
finance and accounting advisory services to the Company. We will assist with preparing the following documents to be filed with
the Securities Exchange Commission (“SEC”):

 

		1.	Assistance with preparation of the required financial data to be included in the Company’s
                                                                                  Form S-1 Filing with quarter ended March 31, 2019 financial data and drafting the required documents to be included in the
                                                                                  Company’s Form S-1 Filing.

 

		2.	Assistance with preparation of the required financial data to be included in the Company’s Form S-1 Filing with the quarter
ended June 31,2019 financial data and drafting the required documents to be included in the Company’s Form S-1 Filing.

 

		3.	Assistance with preparation of the required financial data to be included in the Company’s Form 10-Q Filing with the
quarter ending September 30, 2019 financial data and drafting the required documents to be included in the Company’s Form
10-Q Filing. To the extent the Company did not complete it’s public filing with the SEC using the June 30, 2019 financial
data, we will assist the Company with drafting the required documents to be included in another Form S-1 Filing using the quarter
ending September 30, 2019 financial data.

 

		4.	Assistance with drafting the Company’s Form 10-K for the year ending December 31, 2019. We will use the financial data
provided by management to include in the draft documents. We are not responsible for preparing, reviewing, or compiling any schedules
that will be included in the Company’s Form 10-K. All financial data required in the Form 10-K Filing will be supplied by
the Company’s finance and accounting personnel.

 

In addition, PJ Tech will also assist with the following
projects during the term of our engagement:

 

		1.	Supervise and direct the Company’s finance and accounting personnel, including reviewing accounting transactions for
proper accounting treatment

 

		2.	Assist with the Company’s month-end and quarter-end closing procedures

 

		3.	Assist the Company with implementing and streamlining its month-end and quarter-end closing process

 

		4.	Provide training and support to the Company’s finance and accounting personnel as needed

 

		5.	Provide general finance and accounting consultingExhibit 10.14

 

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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