UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. )
Filed by the Registrant ☒
Filed by a party other than the Registrant ☐
Check the appropriate box:
| ☐ |
Preliminary
Proxy Statement |
| ☐ |
Confidential,
for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
| ☒ |
Definitive
Proxy Statement |
| ☐ |
Definitive
Additional Materials |
| ☐ |
Soliciting
Material under § 240.14a-12 |
| Future
FinTech Group Inc. |
| (Name
of Registrant as Specified In Its Charter) |
| N/A |
| (Name
of Person(s) Filing Proxy Statement, if other than the Registrant) |
Payment of Filing Fee (Check all boxes that apply):
| ☐ |
Fee paid
previously with preliminary materials. |
| ☐ |
Fee computed
on table in exhibit required by Item 25(b) per Exchange Act Rules 14a- 6(i)(1) and 0-11. |
LETTER FROM THE CHIEF EXECUTIVE OFFICER
Dear Shareholder:
You are cordially invited
to attend the 2024 Annual Meeting of Shareholders of Future FinTech Group Inc., a Florida corporation (the “Company” or “Future
FinTech”), which will be held at our office, located at Room 603, Floor 5, Block A, Dong Fang Mei Di Ya, No. 4 Guang Hua Road, Chaoyang
District, Beijing, China on Thursday, December 5, 2024 at 10:00 A.M., local time.
The Notice of Annual Meeting
of Shareholders and Proxy Statement describes the formal business to be transacted at the annual meeting. Our directors and officers
will be present to respond to appropriate questions from shareholders. A shareholder must complete the attached proxy card or be present
in person to vote at the meeting. The proxy statement and proxy card are expected to be mailed to all stockholders of record on or about
October 18, 2024.
Whether or not you plan to
attend the meeting, please vote as soon as possible. You can vote by returning the proxy card in the enclosed postage-prepaid envelope.
This will ensure that your shares will be represented and voted at the meeting, even if you do not attend. If you attend the meeting,
you may revoke your proxy and personally cast your vote. Attendance at the meeting does not of itself revoke your proxy.
| |
By Order of the Board of Directors, |
| |
|
| |
/s/ Hu Li |
| |
Hu Li |
| |
Chief Executive Officer and Director |
| |
October 11, 2024 |
FUTURE FINTECH GROUP INC.
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
To be Held Thursday, December 5, 2024
NOTICE IS HEREBY GIVEN that the Annual Meeting
of Shareholders of Future FinTech Group Inc., a Florida corporation (the “Company” or “Future FinTech”), will
be held at our office, located at Room 603, Floor 5, Block A, Dong Fang Mei Di Ya, No. 4 Guang Hua Road, Chaoyang District, Beijing, China, on
Thursday, December 5, 2024 at 10:00 A.M., local time, for the following purposes, as set forth in the attached Proxy Statement:
| |
(1) |
To elect five directors
to hold office until the next Annual Meeting of Shareholders and until their successors are elected and qualified; and |
| |
(2) |
To ratify Fortune CPA,
Inc., as our independent registered public accounting firm for the fiscal year ending December 31, 2024; and |
| (3) | To
adopt and approve the Future FinTech Group Inc. 2024 Omnibus Equity Plan; and |
| (4) | To approve the compensation
of the named executive officers as disclosed in this Proxy Statement in a non-binding, advisory
vote; and |
| (5) | To transact such other
business as may properly come before the meeting or any adjournment thereof. |
The Board of Directors of the Company (the “Board
of Directors” or the “Board”) and the Company’s management have fixed the close of business on October 10, 2024
as the record date for determining the shareholders entitled to notice of, and to vote at, the Annual Meeting and any adjournment and
postponements thereof (the “Record Date”).
After careful consideration, the Board of Directors
recommends a vote IN FAVOR OF the nominees for director named in the accompanying proxy statement, a vote IN FAVOR OF the ratification
of Fortune CPA, Inc., as our independent registered public accounting firm for the fiscal year ending December 31, 2024, a vote IN FAVOR
OF the Future FinTech Group Inc. 2024 Omnibus Equity Plan and a vote IN FAVOR OF the compensation of our named executive officers described
in this Proxy Statement.
Shareholders are cordially
invited to attend the Annual Meeting in person. Whether you plan to attend the Annual Meeting or not, please complete, sign and date
the enclosed Proxy Card and return it without delay in the enclosed postage-prepaid envelope. If you do attend the Annual Meeting, you
may withdraw your proxy and vote personally on each matter brought before the meeting. YOUR VOTE IS VERY IMPORTANT.
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By Order of the Board of Directors |
| |
|
| |
/s/ Hu
Li |
| |
Hu Li |
| |
Chief Executive Officer and Director |
| |
October 11, 2024 |
| |
Beijing, China |
IMPORTANT
WHETHER OR NOT YOU PLAN TO ATTEND THE ANNUAL
MEETING, YOU ARE REQUESTED TO MARK, DATE AND SIGN THE ENCLOSED PROXY CARD AND RETURN IT AS PROMPTLY AS POSSIBLE IN THE ENCLOSED POSTAGE-PREPAID
RETURN ENVELOPE. SIGNING AND RETURNING A PROXY WILL NOT PREVENT YOU FROM VOTING IN PERSON AT THE MEETING.
THANK YOU FOR ACTING PROMPTLY
Important Notice Regarding the Availability
of Proxy Materials for the Annual Meeting of Shareholders to be held on December 5, 2024. This Proxy Statement and our 2023 Annual Report
to Shareholders are also available on our website at http://www.ftft.com.
PROXY STATEMENT
FOR THE ANNUAL MEETING OF SHAREHOLDERS OF
FUTURE FINTECH GROUP
INC.
To be Held on Thursday, December 5, 2024
The Board of Directors of Future FinTech Group
Inc., a Florida corporation (“Future FinTech” or the “Company”), is soliciting proxies for the Annual Meeting
of Shareholders of the Company (the “Annual Meeting”) to be held at our office, located at Room 603, Floor 5, Block A, Dong Fang Mei Di Ya, No. 4 Guang Hua Road, Chaoyang District, Beijing, China, on Thursday, December 5, 2024, at 10:00 A.M., local time, and at any
adjournments thereof. You are receiving a proxy statement because you own shares of the Company’s common stock on the Record Date
that entitle you to vote at the Annual Meeting. By use of a proxy, you can vote whether or not you attend the Annual Meeting. The proxy
statement describes the matters we would like you to vote on and provides information on those matters so you can make an informed decision.
THE 2024 ANNUAL MEETING
Date, Time and Place
of the Annual Meeting
The Annual Meeting will
be held at 10:00 a.m., local time, on Thursday, December 5, 2024, at the Company’s office at Room 603, Floor 5, Block A, Dong Fang Mei Di Ya, No. 4 Guang Hua Road, Chaoyang District, Beijing, China 100026.
Matters to be Voted
Upon at the Annual Meeting
At the Annual Meeting,
Future FinTech is asking its shareholders as of the record date of October 10, 2024 (the “Record Date”) to consider and vote
upon proposals:
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(1) |
To elect five directors
to hold office until the next Annual Meeting of Shareholders and until their successors are elected and qualified; and |
| |
(2) |
To ratify Fortune CPA,
Inc., as our independent registered public accounting firm for the fiscal year ending December 31, 2024; and |
| (3) | To adopt and approve
the Future FinTech Group Inc. 2024 Omnibus Equity Plan; and |
| (4) | To approve the compensation
of the named executive officers as disclosed in this Proxy Statement in a non-binding, advisory
vote; and |
| (5) | To transact such other
business as may properly come before the meeting or any adjournment thereof. |
Record Date; Shares
Entitled to Vote
Shareholders will be
entitled to vote or direct votes to be cast at the Annual Meeting if they owned shares of Future FinTech common stock on the Record Date.
Shareholders will have one vote for each share of Future FinTech common stock owned at the close of business on the Record Date. If your
shares are held in “street name” or are in a margin or similar account, you should contact your broker to ensure that votes
related to the shares you beneficially own are properly counted. At the close of business on October 10, 2024, we had 20,747,527 shares
of common stock outstanding.
Quorum
A quorum is the minimum number of shares required
to hold a meeting. A majority of the shares of our common stock issued and outstanding and entitled to vote must be represented in person
or by proxy at the meeting to establish a quorum. Both abstentions and broker non-votes are counted as present for determining the presence
of a quorum. Broker non-votes, however, are not counted as shares present and entitled to be voted with respect to the matter on which
the broker has not voted. Thus, broker non-votes will not affect the outcome of any of the matters to be voted on at the Annual Meeting.
Generally, broker non-votes occur when shares held by a broker for a beneficial owner are not voted with respect to a particular proposal
because (1) the broker has not received voting instructions from the beneficial owner and (2) the broker lacks discretionary voting power
to vote such shares.
Voting Generally
Holders of record of shares of the Company’s
Common Stock as of the Record Date are entitled to one vote per share on each matter to be considered and voted upon at the Annual Meeting.
Our Second Amended and Restated Articles of Incorporation,
as amended, state that there is no cumulative voting in the election of directors. The affirmative vote of the holders of shares of Common
Stock representing a plurality of the votes cast at the Annual Meeting at which a quorum is present is required for the election of the
directors listed below. Abstentions and non-votes will be counted for purposes of determining the presence of a quorum, but will not
be counted as a vote for the election as a director of any nominee.
Votes cast in person or by proxy at the Annual
Meeting will be tabulated at the Annual Meeting. All valid, unrevoked proxies will be voted as directed. In the absence of instructions
to the contrary, properly executed proxies will be voted (i) for the election of each of the nominees for director set forth herein,
(ii) for the ratification of Fortune CPA, Inc., as our independent registered public accounting firm for the fiscal year ending December
31, 2024, (iii) for the adoption of Future FinTech Group Inc. 2024 Omnibus Equity Plan, and (iv) To approve the compensation of the named
executive officers as disclosed in this Proxy Statement in a non-binding, advisory vote.
If any matters other than those addressed on
the proxy card are properly presented for action at the Annual Meeting, the persons named in the proxy card will have the discretion
to vote on those matters in their best judgment, unless authorization is withheld.
Many of our shareholders hold their shares through
a stockbroker, bank or other nominee rather than directly in their own names. As summarized below, there are some distinctions between
shares held of record and those owned beneficially.
Shareholder of Record. If your shares
are registered directly in your name with our transfer agent, Transhare Corporation, you are considered the shareholder of record with
respect to those shares. As a shareholder of record, you have the right to grant your voting proxy directly to us or to vote in person
at the Annual Meeting. As the shareholder of record, you may vote in person at the Annual Meeting or vote by proxy using the accompanying
proxy card. Whether or not you plan to attend the Annual Meeting, we urge you to vote by proxy to ensure your vote is counted. You may
still attend the Annual Meeting and vote in person even if you have already voted by proxy.
By Mail — shareholders will receive a proxy
card and can follow the instructions given for mailing. A paper copy of the proxy materials may also be obtained by following the instructions
given on the notice and proxy card. To vote using the proxy card, simply print the proxy card, complete, sign and date it and return
it promptly to Annual Meeting & Proxy Services, Transhare Corporation, Bayside Center 1, 17755 US Highway 19 N, Suite 140, Clearwater
FL 33764. In the alternative, the proxy card can be mailed directly to the Company: Corporate Secretary at Americas Tower, 1177 Avenue
of The Americas, Suite 5100, New York, NY 10036.
Online — shareholders may submit
a proxy online using the website listed on the proxy card. Please have your proxy card in hand when you log onto the website. Online
voting facilities will close and no longer be available on the date and time specified on the proxy card.
In Person — shareholders may vote in person
at the Annual Meeting. To vote in person, come to the Annual Meeting and we will give you a ballot when you arrive. The Board recommends
that you vote using one of the other voting methods, given that it is not practical for most stockholders to attend the Annual Meeting.
Please note that the notice letter you received
directing you to the website at which the proxy materials are available is not the proxy card and should not be used to submit your vote.
If you do not return a signed proxy card,
vote online or attend the meeting and vote in person, your shares will not be voted. Shares of our common stock represented by properly
executed proxies that are received by us and are not revoked will be voted at the Annual Meeting in accordance with the instructions
contained therein. If you return a signed and dated proxy card and instructions are not given, such proxies will be voted FOR
the election of each nominee for director named herein, FOR ratification of the selection of Fortune CPA, Inc., as our
independent registered public accounting firm for the fiscal year ending December 31, 2024, FOR the adoption of Future FinTech
Group Inc. 2024 Omnibus Equity Plan and FOR the approval of the compensation of the named executive officers as disclosed in this Proxy Statement in a non-binding, advisory vote.
In addition, we reserve the right to exercise discretionary authority to vote proxies, in the manner determined by us, in our sole discretion,
on any matters brought before the Annual Meeting for which we did not receive adequate notice under the proxy rules promulgated by the
Securities and Exchange Commission (“SEC”).
Beneficial Holder. If your shares are
held in a brokerage account or by a bank or other nominee, you are considered the beneficial owner of the shares held in street name,
and these proxy materials are being forwarded to you by your broker or nominee who is considered the shareholder of record with respect
to those shares. As the beneficial owner, you have the right to direct your broker on how to vote and are also invited to attend the
meeting. However, since you are not the shareholder of record, you may not vote these shares in person at the meeting unless you obtain
a “legal proxy” from the broker, bank or nominee that holds your shares, giving you the right to vote those shares at the
meeting.
Required Vote
The nominees for election as directors at the
Annual Meeting will be elected by a plurality of the votes cast at the meeting. This means that the director nominee with the most votes
for a particular slot is elected for that slot. Votes withheld from one or more director nominees will have no effect on the election
of any director from whom votes are withheld. The approval of each of the other proposals require the affirmative vote of a majority
of the shares represented at the meeting and entitled to vote on that proposal.
If you are a beneficial owner and do not provide
the shareholder of record with voting instructions, your shares may constitute “broker non-votes.” A “broker non-vote”
occurs when a bank, broker or other holder of record holding shares for a beneficial owner does not vote on a particular proposal because
that holder does not have discretionary voting power and has not received instructions from the beneficial owner.
Under applicable regulations, if a broker holds
shares on your behalf, and you do not instruct your broker how to vote those shares on a matter considered “routine,” the
broker may generally vote your shares for you. A “broker non-vote” occurs when a broker has not received voting instructions
from you on a “non-routine” matter, in which case the broker does not have authority to vote your shares with respect to
such matter. Unless you provide voting instructions to a broker holding shares on your behalf, your broker may not use discretionary
authority to vote your shares on any of the matters to be considered at the Annual Meeting other than the ratification of our independent
registered public accounting firm. Please vote your proxy so your vote can be counted.
Unless otherwise required by the Company’s
Second Amended and Restated Articles of Incorporation, as amended, Bylaws, the Florida Business Corporation Act, or by other applicable
law, any other proposal that is properly brought before the Annual Meeting will require approval by the affirmative vote of a majority
of all votes cast at the Annual Meeting. With respect to any such proposal, neither abstentions nor broker non-votes will be counted
as votes cast for purposes of determining whether the proposal has received sufficient votes for approval.
Directors and executive officers of the Company
beneficially hold approximately 133,400 shares of Company Common Stock, or 0.64 % of all the votes entitled to be cast at the Annual
Meeting. Mr. Zeyao Xue directly and indirectly owns 3,652,850 shares of Company Common Stock or 17.6% of all the votes that will be entitled
to be cast at the Annual Meeting.
Deadline for Voting by Proxy
In order to be counted, votes cast by proxy must
be received prior to the Annual Meeting.
Revocability of Proxies
Shareholders are requested to date, sign and
return the enclosed proxy card to make certain their shares will be voted at the Annual Meeting. Any proxy given may be revoked by the
shareholder at any time before it is voted by delivering written notice of revocation to the Secretary of the Company, by filing with
the Secretary of the Company a proxy bearing a later date, or by attending the Annual Meeting and voting in person. All proxies properly
executed and returned will be voted in accordance with the instructions specified thereon.
Householding
The SEC has adopted rules that permit companies
and intermediaries (e.g., brokers) to satisfy the delivery requirements for proxy materials with respect to two or more shareholders
sharing the same address by delivering a single set of proxy materials. This process, which is commonly referred to as “householding,”
potentially results in extra convenience for shareholders and cost savings for companies. The Company has adopted the SEC-approved “householding”
procedure.
Upon written or oral request, the Company will
deliver promptly a separate copy of the proxy statement and proxy materials of Annual Meeting of Shareholders to any shareholder at a
shared address to which the Company delivered a single copy of any of these documents. If, at any time, you no longer wish to participate
in “householding” and would prefer to receive a separate set of proxy materials, you may:
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● |
Send a written request
to the Company’s Corporate Secretary at Americas Tower, 1177 Avenue of The Americas, Suite 5100, New York, NY 10036, or call
888-622-1218 if you are a shareholder of record; or |
| |
● |
Notify your broker, if
you hold your shares of common stock under street name. |
If you are receiving more than one copy of the
proxy materials at a single address and would like to participate in householding, please contact the Company using the mailing address
and phone number above. Shareholders who hold shares in street name may contact their brokerage firm, bank, broker-dealer or other similar
organization to request information about householding.
Future FinTech Information
Our principal executive offices are located at
Americas Tower, 1177 Avenue of The Americas, Suite 5100, New York, NY 10036. The telephone number of our principal offices is 888-622-1218.
PROPOSAL 1 – ELECTION OF BOARD OF DIRECTORS
Directors
Based on the Company’s nominations process,
a majority of the independent members of the Board shall recommend to the Board for nomination by the Board such candidates as said majority
of the independent directors, in the exercise of their judgment, have found to be well qualified and willing and available to serve.
A majority of our independent directors of the Board has recommended and the Board has nominated the persons listed below for election
to the Board at the Annual Meeting, to hold office until the next Annual Meeting and until their respective successors are elected and
qualified. It is not contemplated that any of the nominees will be unable or unwilling to serve as a director, but, if that should occur,
the persons designated as proxies will vote in accordance with their best judgment. In no event will proxies be voted for a greater number
of persons than the number of nominees named in this Proxy Statement.
All shares represented by valid proxies, and
not revoked before they are exercised, will be voted in the manner specified therein. If a valid proxy is submitted but no vote is specified,
the Proxy will be voted FOR the election of each of the five nominees for election as directors. Please note that your broker
will not be permitted to vote on your behalf on the election of directors unless you provide specific instructions by completing and
returning the voting instruction form. For your vote to be counted, you will need to communicate your voting decisions to your broker
or other nominee before the date of the Annual Meeting or obtain a legal proxy to vote your shares at the meeting. Although all nominees
are expected to serve if elected, if any nominee is unable to serve, then the persons designated as proxies will vote for the remaining
nominees and for such replacements, if any, as may be nominated by our Board, who currently serves the functions of a nominating committee
as the Board does not have a standing nominating committee. Proxies cannot be voted for a greater number of persons than the number of
nominees specified herein (five persons). Cumulative voting is not permitted.
The affirmative vote of the holders of shares
of Common Stock representing a plurality of the votes cast at the Meeting at which a quorum is present is required for the election of
the directors listed below.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS
A VOTE “FOR” THE ELECTION OF
ALL FIVE NOMINEES LISTED BELOW.
The following sets forth the information regarding
our director nominees as of October 10, 2024, including the names of each of the five nominees for election as a director, such person’s
position, age, the year such person became a director of the Company, and additional biographical data.
| Name
of Directors |
|
Age |
|
Position(s) |
|
Service
Since |
| Fuyou Li (1) |
|
71 |
|
Chairman of the Board
and Independent Director |
|
May
2015 |
| Hu Li (2) |
|
50 |
|
Chief Executive Officer,
President and Director |
|
August
2024 |
| Ying Li |
|
36 |
|
Vice President and Director |
|
June
2021 |
| Mingyong Hu (1)(3) |
|
46 |
|
Independent Director |
|
October
2024 |
| Mingjie Zhao (1) |
|
60 |
|
Independent Director |
|
July
2020 |
| (1) | Member of the audit committee
and compensation committee of the Board. |
| (2) | Mr. Hu Li was appointed
as a member of the Board, President and Chief Executive Officer of the Company on August
5, 2024. |
| (3) | Mr. Mingyong Hu was appointed
as a member of the Board on October 1, 2024. |
Fuyou Li, Director and Chairman of the Board
Mr. Fuyou Li has served as a member of the Board
and a member of the audit and compensation committees of the Board since May 8, 2015. Mr. Li was appointed as the Chairman of the Board
on June 23, 2021. Mr. Li graduated from Xi’an Jiaotong University with a doctor’s degree in economics. He has taught international
finance as a professor at Xi’an Jiaotong University from 2000 to July 2023. The Board believes his qualifications, professional
background and expertise in international finance are important to the Company and the Board.
Hu Li, Director, President and Chief Executive Officer
Mr. Hu Li has served as the Chief Executive Officer
and President of the Company and a member of the Board since August 5, 2024. Mr. Hu Li has served as the Corporate Secretary of the Company
since June 2019. Mr. Li has served as a director and Chief Executive Officer of FTFT International Securities and Futures Limited, a
wholly owned subsidiary of the Company since January 2024. Mr. Li has served as a director of the Board of Directors of Shineco, Inc.
(Nasdaq: SISI) since September 2021. Mr. Li served as the chief supervisor of Anhui Yihai Mining Equipment Co., Ltd., a public company
in China NEEQ Market (Stock Symbol: 831451) from February 2018 to July 2021. From September 2015 to February 2018, Mr. Li served as the
Vice General Manager of Shaanxi Huipu Financial Leasing Co., Ltd. Mr. Li obtained his master’s degree in Business Administration
(MBA) from Xi’an Technology University in 2008 and bachelor’s degree from Xi’an Fanyi University in 1996. The Board
believes that Mr. Li’s extensive experience with the Company and its business operations will be an asset to the Company and the
Board.
Ying Li, Director and Vice President
Ms. Ying Li was appointed as a member of the
Board on June 23, 2021 and she has served as a director of Alpha International Securities (HONG KONG) Limited since September 9, 2020
and as a director of Alpha International Financial Holdings Limited since February 5, 2020. The Company acquired FTFT International Securities
and Futures Limited in November 2023 and changed its name to FTFT International Securities and Futures Limited. Ms. Li has served as
the vice president of the Company and a director of Future FinTech (Hong Kong) Limited, a wholly owned subsidiary of the Company since
July 2016. From October 2011 to December 2019, Ms. Li served as the secretary of the Board of the Company. Ms. Li received her bachelor’s
degree in English from Xi’an International Studies University in July 2010. The Board believes that Ms. Li’s extensive business
and operational knowledge of the Company qualifies her as a member of the Board.
Mingyong Hu, Director
On October 1, 2024, the Board appointed Mingyong
Hu as a member of the Board , Chairman of Audit committee of the Board and a member of the Compensation Committee of the Board. Mr. Mingyong
Hu was the founder and CFO of Beijing Xiaowu Supply Chain Technology Co., Ltd. from August 2021 to April 2024. From March 2019 to July
2021, Mr. Hu was the executive vice president of Zhenghua Guotai International Trading Co., Ltd. From October 2017 to March 2019, Mr.
Hu was the general manager of Zhongrong Dinghui (Beijing) Equity Investment Fund Management Co., Ltd. From January 2016 to October 2017,
Mr. Hu was the executive vice president of Zhongsheng Wantong Equity Investment Fund Management (Beijing) Co., Ltd. From June 2007 to
December 2015, Mr. Hu was a partner and executive deputy general manager of Zhonghao Investment Group Co., Ltd. Mr. Mingyong Hu received
his bachelor’s degree in accounting from Hunan University in July 2001. Mr. Hu is a Certified Public Accountant of China, and he
also holds Certification of Securities Professional and Fund Qualification Certificate in China. The Board believes that Mr. Hu’s
extensive knowledge and experience in accounting and investment is important to the Company’s financial reporting and business.
Mingjie Zhao, Director
Mr. Mingjie Zhao was appointed as a member of
the Board and Chairman of the Compensation Committee and a member of Audit Committee of the Board on July 15, 2020. Mr. Zhao has served
as a director of New York Hua Yang, Inc. since April 2018. From July 2016 to March 2018, Mr. Zhao served as Chief Executive Officer of
TD Holdings, Inc. (formerly known as China Commercial Credit Inc. and Nasdaq: GLG). Mr. Zhao was the Chief Operating Officer and
a director of New York Hua Yang, Inc. from September 2011 to July 2016. Mr. Zhao obtained his Master of Business Administration degree
from University of Bridgeport in Connecticut in May 2003 and his Bachelor of Science degree from China Eastern Normal University in Shanghai,
China in July 1985. The Board believes that Mr. Zhao’s experience and extensive knowledge in management and public company is essential
to the Company.
THE BOARD RECOMMENDS THAT THE STOCKHOLDERS
VOTE “FOR” THE ELECTION OF EACH OF THE DIRECTOR NOMINEES NAMED IN THIS PROXY STATEMENT.
CORPORATE GOVERNANCE
Pursuant to the Company’s Bylaws and the
Florida Business Corporation Act, the Company’s business and affairs are managed under the direction of the Board. Directors are
kept informed on the Company’s business through discussions with management, including the Chief Executive Officer and other senior
officers, by reviewing materials provided to them and by participating in meetings.
Our Board meets on a regular basis during the
year to review significant developments affecting us and to act on matters requiring Board approval. It also holds special meetings when
an important matter requires Board action between scheduled meetings. Members of senior management regularly attend Board meetings to
report on and discuss their respective areas of responsibility. The Board held 11 regularly scheduled and special meetings during fiscal
year 2023. All of the directors attended (in person or by telephone) all of the Board meetings and any committees of the Board on which
they served during the fiscal year. Directors are expected to use their best efforts to be present at the shareholders annual meeting.
All of our directors attended the December 5, 2023 shareholders annual meeting by tele-conference or in person.
Independent Directors
The Company’s Common Stock is listed on
the NASDAQ Capital Market. NASDAQ requires that a majority of the Company’s directors be “independent,” as defined
by the NASDAQ’s rules. Generally, a director does not qualify as an independent director if the director (or, in some cases, a
member of the director’s immediate family) has, or in the past three years had, certain relationships or affiliations with the
Company, its external or internal auditors, or other companies that do business with the Company. The Board of Directors has determined
that a majority of the Company’s directors are independent directors under the NASDAQ rules. The Company’s independent directors
are: Fuyou Li, Mingyong Hu and Mingjie Zhao.
Our Board of Directors, which is elected by our
shareholders, is our ultimate decision-making body, except with respect to those matters reserved to our shareholders. The Board selects
the officers who are charged with the conduct of our business, and has responsibility for establishing broad corporate policies and for
our overall performance. The Board is not involved in operating details on a day-to-day basis. The Board is advised of our business through
regular reports and analyses and discussions with our principal executive officer and other officers.
Code of Ethics and Governance Program
We have adopted a code of business conduct and
ethics that applies to all of our employees, officers and directors, including those officers responsible for financial reporting. Our
code of business conduct and ethics is available on our website at www.ftft.com and may be found by first clicking on “Investors,”
then “Corporate Governance” and then “Governance Documents.” We intend to disclose any amendments to the code,
or any waivers of its requirements, on our website.
Committees of the Board and Attendance at
Meetings
The Board held 11 regularly scheduled and special
meetings during fiscal year 2023. All of the directors attended (in person or by telephone) all of the Board meetings and any committees
of the Board on which they served during the fiscal year. Directors are expected to use their best efforts to be present at the shareholders
annual meeting. All of our directors attended the December 5, 2023 shareholders annual meeting by tele-conference or in person.
Audit Committee and Report of the Audit Committee
On April 25, 2008, the Board formed an audit
committee. Messrs. Mingyong Hu, Fuyou Li and Mingjie Zhao currently serve on the audit committee, which is chaired by Mr. Hu. Each member
of the audit committee is “independent” as that term is defined in the rules of the SEC and within the meaning of such term
as defined under the rules of the NASDAQ Capital Market. The Board has determined that each audit committee member has sufficient knowledge
in financial and auditing matters to serve on the audit committee. The audit committee held 6 meetings during fiscal year 2023, and all
audit committee members attended each of those meetings. Our Board has determined that Mr. Hu is an “audit committee financial
expert,” as defined under the applicable SEC rules. The audit committee has a written charter, which is available on the Company’s
website at http://www.ftft.com.
Management is responsible for the Company’s
internal controls and the financial reporting process. The independent accounting firm is responsible for performing an independent audit
of the Company’s consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight
Board (United States) (“PCAOB”) and issuing reports thereon. The audit committee’s responsibility is to monitor these
processes. The audit committee meets with management, the leader of the internal audit function, and the independent accounting firm
to facilitate communication. In addition, the audit committee appoints the Company’s independent accounting firm and pre-approves
all audit and non-audit services to be performed by the independent accounting firm.
In this context, the audit committee has discussed
with the Company’s independent accounting firm the overall scope and plans for the independent audit. The audit committee reviewed
and discussed the audited financial statements with management. Management represented to the audit committee that the Company’s
consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).
Discussions about the Company’s audited financial statements included the independent accounting firm’s judgments about the
quality, not just the acceptability, of the accounting principles, the reasonableness of significant judgments, and the clarity of disclosures
in the financial statements. The audit committee also discussed with the independent accounting firm the other matters required to be
discussed by PCAOB Auditing Standard No. 16 (Communications with Audit Committees). The Company’s independent accounting firm provided
to the audit committee the written disclosures and the letter required by the PCAOB, and the committee discussed the independent accounting
firm’s independence with management and the independent accounting firm.
Based on: (i) the audit committee’s discussion
with management and the independent accounting firm; (ii) the audit committee’s review of the representations of management; and
(iii) the report of the independent accounting firm to the audit committee, the audit committee recommended to the Board that the audited
consolidated financial statements be included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31,
2023 filed with the SEC.
Compensation Committee
On April 25, 2008, the Board formed a
compensation committee. Messrs. Mingyong Hu, Mingjie Zhao and Fuyou Li currently serve on the compensation committee, which is
chaired by Mr. Zhao. Each member of the compensation committee is “independent” as that term is defined in the SEC rules
and within the meaning of such term as defined under the rules of the NASDAQ Capital Market, a “nonemployee director”
for purposes of Section 16 of the Exchange Act. No interlocking relationship exists between the Board or the compensation committee
and the Board or compensation committee of any other company, nor has any interlocking relationship existed during the last fiscal
year. The compensation committee held 2 meetings during fiscal year 2023, and all compensation committee members attended those
meetings. The compensation committee has a written charter, which is available on the Company’s website
at http://www.ftft.com/.
Our Board has delegated to the compensation committee
the responsibility, among other things, to determine any and all compensation payable to our executive officers, including annual salaries,
incentive compensation, long-term incentive compensation and any other compensation, and to administer our equity and incentive compensation
plans applicable to our executive officers. Decisions regarding executive compensation made by the compensation committee are considered
final and are not generally subject to Board review or ratification. Under the terms of its written charter, the compensation committee
has the power and authority to delegate any of its duties and responsibilities to subcommittees as the compensation committee may deem
appropriate in its sole discretion. Historically, the compensation committee has not generally delegated any of its duties and responsibilities
to subcommittees, but rather has taken such actions as a committee, as a whole. Deliberations and decisions by the compensation committee
concerning executive officers are made by the compensation committee, without the presence of the any executive officer of the Company.
Other Committees
The Board may on occasion establish other committees,
as it deems necessary or required. We do not currently have a standing nominating committee, or a committee performing similar functions.
The full Board currently serves this function. Our directors believe that it is not necessary to have such committees, at this time,
because the functions of such committees can be adequately performed by the Board. The Board will assess all candidates, whether submitted
by management or shareholders, and make recommendations for election or appointment. There have been no material changes to the procedures
by which security holders may recommend nominees to the Board.
Board Leadership Structure
Our Board of Directors is currently comprised
of five members, including three independent directors who serve as members of our audit committee and compensation committee. Our Board
leadership structure consists of a Chairman of the Board. Currently, Mr. Fuyou Li, an independent director, serves as Chairman of
the Board. The Board of Directors believes that this leadership structure, with Mr. Fuyou Li serving as the Chairman and Mr. Hu
Li serving as Chief Executive Officer, is appropriate at this time because it enables the Board, as a whole, to engage in oversight of
management, promote communication and collaboration between management and the Board, and oversee governance matters, while allowing
our Chief Executive Officer to focus on his primary responsibility, the operational leadership and strategic direction of the Company.
In addition to chairing the Board, Mr. Fuyou Li is a member of the Audit and Compensation Committees.
Board independence and oversight of the senior
management of the Company are enabled by the presence of independent directors who have a wide range of expertise and skills and have
oversight over critical functions of the Company, such as the review of business development, evaluation and compensation of executive
management, the nomination of directors. Our independent directors collectively provide additional strength and balance to our Board
leadership structure.
Risk Management
The Chief Executive Officer and senior management
are primarily responsible for identifying and managing the risks facing the Company under the oversight and supervision of the Board.
The Chief Executive Officer reports to the Board of Directors regarding any risks identified and steps it is taking to manage those risks.
In addition, the Audit Committee assists the Board in fulfilling its oversight responsibilities with respect to risk in the areas of
financial reporting and internal controls. The Compensation Committee assists the Board in fulfilling its oversight responsibilities
with respect to risk in the area of compensation policies and practices. Other general business risks such as economic, regulatory and
permitting are monitored by the full Board.
Communications with Directors
Shareholders may communicate with the Board or
to one or more individual members of the Board by writing Future FinTech Group Inc., at Americas Tower, 1177 Avenue of The Americas,
Suite 5100, New York, NY 10036, Attention: Corporate Secretary. As appropriate, communications received from shareholders are forwarded
directly to the Board, or to any individual member or members, depending on the facts and circumstances outlined in the communication.
The Board has authorized the Secretary, in his discretion, to exclude communications that are patently unrelated to the duties and responsibilities
of the Board, such as spam, junk mail and mass mailings. In addition, material that is unduly hostile, threatening, illegal or similarly
unsuitable will be excluded, with the provision that any communication that is filtered out by the Secretary pursuant to the policy will
be made available to any non-management director upon request. Individual directors are not permitted to communicate with shareholders
or others outside the Company unless they are deemed authorized persons under the Company’s corporate disclosure policy.
Compensation Committee Interlocks and Insider Participation
None of the Company’s executive officers
has served as a member of a compensation committee, or other committee serving an equivalent function, of any other entity whose executive
officers serve as a director of the Company or member of the Company’s compensation committee.
Family Relationships
There are no family relationships among any current
executive officer or director of the Company.
Board Diversity Matrix
Board
Diversity Matrix (As of October 10, 2024)
| Total Number of Directors |
5 |
| |
|
Female |
|
|
Male |
|
|
Non-Binary |
|
|
Did
Not
Disclose
Gender |
|
| Part I: Gender Identity |
|
|
|
|
|
|
|
|
|
|
|
|
| Directors |
|
1 |
|
|
4 |
|
|
0 |
|
|
0 |
|
| Part II: Demographic Background |
|
|
|
|
|
|
|
|
|
|
|
|
| Asian (other than South Asian) |
|
|
|
|
|
|
|
5 |
|
|
|
|
| LGBTQ+ |
|
|
|
|
|
|
|
0 |
|
|
|
|
| Did Not Disclose Demographic Background |
|
|
|
|
|
|
|
0 |
|
|
|
|
Executive Officers
The following table sets forth as of October
10, 2024, the names, positions and ages of our current executive officers. Our officers are elected by the Board of Directors and their
terms of office are, except to the extent governed by an employment contract, at the discretion of the Board of Directors.
| Name
|
|
Age |
|
Principal
Occupation |
| Hu Li (1) |
|
50 |
|
Chief Executive Officer,
President and Director |
| Ming Yi (2) |
|
44 |
|
Chief Financial Officer |
| Peng Lei (3) |
|
47 |
|
Chief Operating Officer |
| (1) |
Hu Li was appointed as
Chief Executive Officer and President of the Company on August 5, 2024 and Mr. Shanchun Huang resigned as CEO and President of the
Company on August 5, 2024. |
| (2) |
Ming Yi was appointed as Chief Financial Officer of
the Company on November 30, 2020. |
| |
|
| (3) |
Peng Lei was appointed
as Chief Operating Officer of the Company (“COO”) on July 28, 2023 and Mr. Yang Liu resigned as COO of the Company on
July 27, 2023. |
Hu Li, Chief Executive Officer, President and Director
Mr. Hu Li’s biography is set forth above
under the Section entitled “Board of Directors.”
Ming Yi, Chief Financial Officer
On November 30, 2020,
the Board of the Directors appointed Mr. Ming Yi as the Chief Financial Officer (“CFO”) of the Company.
Mr. Yi served as an independent director of Freight
Technologies, Inc. (Nasdaq: FRGT and formerly known as Hudson Capital Inc.) from March 31, 2020 to February 14, 2022. Mr. Yi was
the Chief Financial Officer of SSLJ.com Limited from July 2018 to July 2019. From June 2011 to August 2018, Mr. Yi was the Chief Financial
Officer and a board member of Wave Sync Corp. (formerly known as China Bio-Energy Corp). From September 2009 to April 2011, he served
as a senior manager at Qi He Certified Public Accountants Co. Ltd. Form July 2007 to August 2010, Mr. Yi was a senior auditor at Ernst
& Young. Mr. Yi received his Bachelor of Science degree in Accounting from School of Business Administrations of Liaoning University
in 2004 and his Master of Science degree in Accounting and Finance from Victory University, Australia in 2006. Mr. Yi is a Certified
Public Accountant in Australia.
Peng Lei, Chief Operating Officer
On July 28, 2023, the Company appointed Mr. Peng
Lei as the Chief Operating Officer (“COO”) of the Company.
Mr. Peng Lei has served as general manager of
Future Commercial Management Co., Ltd., a wholly owned subsidiary of the Company since July 2022. From July 2019 to July 2022, Mr. Lei
served as the general manager of Xi'an Dingtaiheng Supply Chain Management Co., Ltd. and Ningbo Tielin Supply Chain Management Co., Ltd.
From March 2014 to July 2019, Mr. Lei served as a director and general manager of Changan Parking Investment Management (Shanghai) Co.,
Ltd. From April 2010 to March 2014, Mr. Lei was the manager of Xi'an Zhonglou Sub-branch of Shanghai Pudong Development Bank. Mr. Lei
received his Ph.D. degree and master’s degree in finance from the School of Economics and Finance of Xi'an Jiaotong University
in September 2011 and July 2009, respectively. Mr. Lei received his bachelor’s degree in international finance from the School
of Management of Xi'an Jiaotong University in July 1999.
Section 16(a) Beneficial Ownership Reporting
Compliance
Section 16(a) of the Exchange Act, requires that
directors, certain officers of the Company and more than ten percent shareholders file reports of ownership and changes in ownership
with the Commission as to the Company’s securities beneficially owned by them. Such persons are also required by SEC rules to furnish
the Company with copies of all Section 16(a) forms they file.
Based solely on its review of copies of such forms received by the Company, or on written representations from certain reporting persons,
the Company believes that, all Section 16(a) filing requirements applicable to its officers, directors and greater than ten percent shareholders
were complied with during the fiscal year ended December 31, 2023, except for the following: Mr. Shanchun Huang, the CEO of the Company,
did not file a Form 4 for the grant of stock award for 200,000 shares on December 23, 2023 until January 2, 2024; Mr. Peng Lei, Chief
Operating Officer (“COO”) of the Company, did not file Form 3 for appointed as COO of the Company and Form 4 for the grant
of stock award for 40,000 shares on December 23, 2023 until April 5, 2024; and Mr. Zeyao Xue, a 10% more shareholder did not file Form
4 for three transactions that occurred on August 3, 2023 and December 11, 2024, respectively, until April 5, 2024.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Review, Approval or Ratification of Transactions with Related Parties
On September 30, 2008, our Board of Directors
approved a statement of policies and procedures with respect to related party transactions, which was amended on July 11, 2011. A copy
of the amended and restated statement of policies and procedures is available on the Company’s website at http://www.ftft.com/.
The statement of policies and procedures with
respect to related party transactions, as amended, requires the audit committee to review the material facts of all interested transactions,
as further described below, unless an exception applies, and either approve or disapprove of our entry into an interested transaction.
If the audit committee’s advance approval of an interested transaction is not feasible, then such interested transaction shall
be considered at the audit committee’s next regularly scheduled meeting and, if the audit committee determines it to be appropriate,
then such interested transaction shall be ratified.
In determining whether to approve or ratify a
transaction with related party, the audit committee will take into account, among other factors it deems appropriate, whether the interested
transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances
and the extent of the related party’s interest in the transaction, as described below. Pursuant to the statement of policies and
procedures with respect to related party transactions, no director shall participate in any discussion or approval of an interested transaction
for which he or she is a related party, except that such director shall provide all material information concerning the interested transaction
to the audit committee. If an interested transaction is ongoing, the audit committee may establish guidelines for our management to follow
in our ongoing dealings with the related party. Thereafter, the audit committee, on at least an annual basis, shall review and assess
ongoing relationships with the related party to see that such related party is in compliance with the audit committee’s guidelines
and that the interested transaction remains appropriate.
For purposes of the statement of policies and procedures with respect
to related party transactions:
| |
● |
a “transaction with
related party” is a transaction required to be disclosed pursuant to Item 404 of Regulation S-K promulgated under the Securities
and Exchange Act of 1934, as amended, and |
| |
● |
a “related party”
has the meaning ascribed to the term “related person” under Item 404 of Regulation S-K promulgated under the Securities
and Exchange Act of 1934, as amended. |
Notwithstanding the foregoing, each of the following
interested transactions shall be deemed to be pre-approved by the audit committee, even if the aggregate amount involved exceeds $50,000:
| |
● |
Employment of executive
officers. Any employment of an executive officer if either (i) the related compensation is required to be reported in our
proxy statement under Item 402 of the Commission’s compensation disclosure requirements generally applicable to “named
executive officers” or (ii) the executive officer is not an immediate family member of another executive officer or director,
the related compensation would be reported in our proxy statement under Item 402 of the Commission’s compensation disclosure
requirements if the executive officer was a “named executive officer” and our compensation committee approved or recommended
that the board of directors approve such compensation. |
| |
● |
Director compensation. Any
compensation paid to a director if the compensation is required to be reported in our proxy statement under Item 402 of the Commission’s
compensation disclosure requirements. |
| |
● |
Certain transactions
with other companies. Any transaction with another company at which a related party’s only relationship is as an employee
other than an executive officer, director or beneficial owner of less than 10% of that company’s shares, if the aggregate amount
involved does not exceed 2% of that company’s total annual revenue. |
| |
● |
Certain charitable contributions. Any
charitable contribution, grant or endowment by us to a charitable organization, foundation or university at which a related party’s
only relationship is as an employee other than an executive officer or a director, if the aggregate amount involved does not exceed
the lesser of $50,000 or 2% of the charitable organization’s total annual receipts. |
| |
● |
Transactions where all
shareholders receive proportional benefits. Any transaction where the related party’s interest arises solely from
the ownership of our Common Stock and all holders of our Common Stock received the same benefit on a pro rata basis, such as dividends. |
| |
● |
Transactions involving
competitive bids. Any transaction involving a related party where the rates or charges involved are determined by competitive
bids. |
| |
● |
Regulated transactions. Any
transaction with a related party involving the rendering of services as a common or contract carrier or public utility, at rates
or charges fixed in conformity with law or governmental authority. |
| |
● |
Certain banking-related
services. Any transaction with a related party involving services as a bank depositary of funds, transfer agent, registrar,
trustee under a trust indenture or similar services. |
Related Party Transactions in 2023
As of December 31, 2023, the amount due to the related parties was consisted
of the followings:
| Name | |
Amount | | |
Relationship | |
Note |
| Chao Li | |
$ | 73,893 | | |
Corporate legal representative | |
Other payables, interest free and payment on demand. |
| Ming Yi | |
| 29,513 | | |
Chief Financial Officer of the Company | |
Accrued expenses, interest free and payment on demand. |
| Xiaochen Zhao | |
| 124 | | |
Corporate legal representative | |
Accrued expenses, interest free and payment on demand. |
| Chan Siu Kei | |
| 401,516 | | |
NTAM’s Director | |
Other payables, interest free and payment on demand. |
| Total | |
$ | 505,046 | | |
| |
|
As of December 31, 2023, the amount due from the related parties was
consisted of the followings:
| Name | |
Amount | | |
Relationship | |
Note |
| Kai Xu | |
$ | 12,151 | | |
Deputy General Manager of a subsidiary of the Company | |
Loan receivables*, interest free and payment on demand. |
| Total | |
$ | 12,151 | | |
| |
|
During 2023, the Company had the following transactions with related
parties:
| Name | |
Amount | | |
Relationship | |
Note |
| JKNDC Limited | |
$ | 7,664 | | |
A company owned by the minority shareholder of NTAM | |
Other income, net |
| JKNDC Limited | |
| 978,801 | | |
A company owned by the minority shareholder of NTAM | |
Cost of revenue- Asset management service |
| Nice Talent Partner Limited | |
| 459,867 | | |
A company owned by the minority shareholder of NTAM | |
Consultancy fee |
During fiscal year 2023, the Company extended
advances amounting to $351,004 to five key management personnel, and a total of $341,190 had been either repaid or classified
as business expenses.
During fiscal year 2023, one key management personnel
advanced a total of $4,330 to the Company.
During fiscal year 2023, the Company did not
pay a bonus to a key management personnel a total of $401,516.
SECURITY OWNERSHIP OF DIRECTORS, OFFICERS AND
CERTAIN BENEFICIAL OWNERS OF FUTURE FINTECH
GROUP INC.
The following table provides information concerning
beneficial ownership of our capital stock as of October 10, 2024, by:
| |
● |
each shareholder or group
of affiliated shareholders who owns more than 5% of our outstanding capital stock; |
| |
|
|
| |
● |
each of our named executive
officers; |
| |
|
|
| |
● |
each of our directors;
and all of our directors and |
| |
|
|
| |
● |
executive officers as a
group. |
The following table lists the number of shares
and percentage of shares beneficially owned based on 20,747,527 shares of our Common Stock outstanding as of October 10, 2024.
Beneficial ownership is determined in accordance
with the SEC rules, and generally includes voting power and/or investment power with respect to the securities held. Shares of Common
Stock subject to options and warrants currently exercisable or exercisable within 60 days of October 10, 2024 or issuable upon conversion
of convertible securities which are currently convertible or convertible within 60 days of October 10, 2024 are deemed outstanding and
beneficially owned by the person holding those options, warrants or convertible securities for purposes of computing the number of shares
and percentage of shares beneficially owned by that person, but are not deemed outstanding for purposes of computing the percentage beneficially
owned by any other person. Except as indicated in the footnotes to this table, and subject to applicable community property laws, the
persons or entities named have sole voting and investment power with respect to all shares of our Common Stock shown as beneficially
owned by them.
Unless otherwise indicated in the footnotes,
the principal address of each of the shareholders, named executive officers, and directors below is c/o Future FinTech Group, Inc., Americas
Tower, 1177 Avenue of The Americas, Suite 5100, New York, NY 10036.
Shares Beneficially Owned
| Name of Beneficial Owner | |
Number | | |
Percent | |
| Directors and Named Executive Officers | |
| | |
| |
| Hu Li | |
| - | | |
| - | |
| Ming Yi | |
| 24,000 | | |
| * | |
| Ying Li | |
| - | | |
| - | |
| Mingjie Zhao | |
| - | | |
| - | |
| Peng Lei | |
| 109,400 | | |
| * | |
| Fuyou Li | |
| - | | |
| - | |
| Mingyong Hu | |
| - | | |
| - | |
| All current directors and name executive officers as a group (7 persons) | |
| 133,400 | | |
| * | |
| 5% or Greater Shareholders | |
| | | |
| | |
| Zeyao Xue (1) | |
| 3,652,850 | | |
| 17.6 | % |
| Ye Yuan (2) | |
| 1,085,268 | | |
| 5.2 | % |
| Rong Bai (3) | |
| 1,075,268 | | |
| 5.2 | % |
| All 5% or Greater Shareholders | |
| 5,813,386 | | |
| 28.0 | % |
| (1) | Consists of (i) 293,416 shares owned directly by Golden Dawn
International Limited, a British Virgin Islands company, (ii) 36,677 shares owned directly by China Tianren Organic Food Holding. Each
of Golden Dawn International Limited and China Tianren Organic Good Holding are indirect subsidiaries of V.X. Fortune Capital Limited,
a British Virgin Islands company. Mr. Zeyao Xue, holds all of the issued and outstanding capital stock of Fancylight Limited, which is
the indirect owner of those shares held by Golden Dawn International Limited and China Tianren Organic Food Holding. The address of Zeyao
Xue is No.3, Xijuyuan Xiang, Lianhu District, Xi’an City, Shaanxi Province, China. |
| (2) | The address for Ye Yuan is 3501, A Block, Xin Tian Shi Ji Shang Wu Zhong Xin, Futian, Shenzhen,
China. |
| (3) | The address for Rong Bai is 201, Floor 10, NO.500 Rui Jin Nan Road, Xu Hui Distric, Shanghai, China. |
Equity Compensation Plan
The following table sets forth information as
of December 31, 2023, with respect to our equity compensation plans previously approved by shareholders and equity compensation plans
not previously approved by shareholders.
Securities Authorized for Issuance Under Equity Compensation Plans
The following table sets forth information as
of December 31, 2023, with respect to our equity compensation plans previously approved by stockholders and equity compensation plans
not previously approved by stockholders.
| | |
Equity Compensation Plan Information | |
| Plan Category | |
Number of securities to be
issued upon exercise of
outstanding options,
warrants and rights | | |
Weighted average exercise
price of outstanding options,
warrants and rights | | |
Number of securities
remaining available for
future issuance under equity
compensation plans
(excluding securities reflected
in column (a)) | |
| | |
(a) | | |
(b) | | |
(c) | |
| Equity compensation plans approved by stockholders (1) | |
| - | | |
$ | - | | |
| 2,110,000 | |
| Equity compensation plans not approved by stockholders | |
| - | | |
$ | - | | |
| - | |
| Total | |
| - | | |
$ | - | | |
| 2,110,000 | |
| (1) | As of December 31, 2023,
there was 2,110,000 shares available for issuance under equity compensation plan. |
The Board has previously
approved and adopted the Future FinTech Group, Inc. 2023 Omnibus Equity Plan on October 12, 2023, which was approved at annual meeting
of stockholders on December 5, 2023, to provide equity awards to employees, directors and consultants of the Company (the “2023
Plan”). The 2023 Plan has a total of 5,000,000 shares of Common Stock. The Company granted 2,890,000 shares under the 2023 Plan
to sixteen officers and employees of the Company and its subsidiaries on December 23, 2023.
COMPENSATION
Summary Compensation of Named Executive Officers
Our executive officers do not receive any compensation
from the Company for also serving as directors of the Company. The following table sets forth information concerning cash and non-cash
compensation paid by the Company to our named executive officers for the years ended December 31, 2023 and 2022.
| Name
and Principal Position | |
Year
Ended | |
Salary
($) | | |
Bonus
($) | | |
Stock
Awards
($) | | |
Option
Awards | | |
Non-Equity
Incentive Plan
Compensation
($) | | |
Non-Qualified
Deferred
Compensation
Earnings
($) | | |
All
Other
Compensation
($) | | |
Total
($) | |
| Yongke Xue (1) | |
12/31/2023 | |
$ | 4,683 | | |
| - | | |
| | | |
| - | | |
| - | | |
| - | | |
| - | | |
$ | 4,683 | |
| | |
12/31/2022 | |
$ | 5,352 | | |
| - | | |
$ | 336,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
$ | 341,352 | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Shanchun Huang (2) | |
12/31/2023 | |
$ | 1 | | |
| - | | |
$ | 248,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
$ | 248,001 | |
| | |
12/31/2022 | |
$ | 1 | | |
| - | | |
| 336,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
$ | 336,001 | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Ming Yi (3) | |
12/31/2023 | |
$ | 44,276 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
$ | 44,276 | |
| | |
12/31/2022 | |
$ | 48,000 | | |
| - | | |
$ | 42,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
$ | 90,000 | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Kai Xu (4) | |
12/31/2022 | |
$ | 35,682 | | |
| | | |
$ | 210,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 223,462 | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Peng Lei (5) | |
12/31/2023 | |
$ | 51,213 | | |
| | | |
$ | 49,600 | | |
| - | | |
| - | | |
| - | | |
| - | | |
$ | 100,813 | |
| | |
12/31/2022 | |
$ | 53,582 | | |
| | | |
| 229,740 | | |
| - | | |
| - | | |
| - | | |
| - | | |
$ | 283,322 | |
| (1) | On
March 4, 2020, Mr. Yongke Xue resigned as the CEO of the Company and on June 23, 2021, Mr.
Xue was appointed as the president of the Company. The compensation committee of the Board
granted him a stock award for 160,000 shares of common stock of the Company under 2020 Equity
Plan on July 12, 2022. Mr. Yongke Xue passed away on November 24, 2023. |
| (2) | On
March 4, 2020, Mr. Shanchun Huang was appointed as the CEO of the Company. The compensation
committee of the Board granted him a stock award for 200,000 shares of common stock of the
Company under 2023 Equity Plan on December 23, 2023 and a stock award for 160,000 shares
of common stock of the Company under 2020 Equity Plan on July 12, 2022. |
| (3) | On
November 30, 2020, the Board of the Directors appointed Mr. Ming Yi as the CFO of the Company.
The compensation committee of the Board granted him a stock award for 20,000 shares of common
stock of the Company under 2020 Equity Plan on July 12, 2022. |
| (4) | On
February 28, 2019, the board of directors appointed Mr. Kai Xu as the COO
of the Company. Since February 2020, Mr. Xu has no longer served as the COO of the Company,
and he continues to serve as deputy general manager in a subsidiary of the Company and the
vice president of blockchain division of the Company. The compensation committee of
the Board granted him a stock award for 100,000 shares of common stock of the Company under
2020 Equity Plan on July 12, 2022. |
| (5) | The
compensation committee of the Board granted him a stock award for 109,400 shares of common
stock of the Company under 2020 Equity Plan on July 12, 2022. Mr. Peng Lei served as general
manager of Future Commercial Management Co., Ltd., a wholly owned subsidiary of the Company
since July 2022 and was appointed as COO of the Company on July 28, 2023. On December 23,
2023, the compensation committee of the Board granted him a stock award of 40,000 shares
of common stock of the Company under 2023 Equity Plan. |
| * | All share
granted before January 31, 2023 have been retroactively restated to reflect Reverse Stock
Split effected on February 1, 2023. |
Outstanding Equity Awards at December 31, 2023
No outstanding equity awards held by named executive officers as of
December 31, 2023.
PAY VERSUS PERFORMANCE
As required by Section 953(a) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation S-K, we are providing the following information about the
relationship of “compensation actually paid” (“CAP”) to our principal executive officer (“PEO”) and
other named executive officers (“Non-PEO NEOS”) and our performance.
Pay Versus Performance Table
As required by Section 953(a) of the Dodd-Frank
Wall Street Reform and Customer Protection Act, and item 402(v) of Regulation S-K promulgated under the Exchange Act, we are providing
the following information about the relationship between executive compensation actually paid and certain financial performance of the
Company.
For purposes of the tables below, the principal
executive officer (“PEO”) and non-PEO named executive officers for 2023 and 2022 are the following:
| Year |
|
PEO |
|
Non-PEO
named executive officers |
| 2023 |
|
Shanchun Huang |
|
Ming Yi, Yongke Xue, Peng Lei |
| 2022 |
|
Shanchun Huang |
|
Ming Yi, Yongke Xue, Peng Lei, Kai Xu |
| Year | |
Summary Compensation
table total for PEO (1)
($) | | |
Compensation Actually
Paid to PEO(2)
($) | | |
Average Summary
Compensation Table Total
for Non-PEO NEOs(3)
($) | | |
Average Compensation
Actually Paid to Non-PEO
NEOs(4)
($) | | |
Value of Initial Fixed $100
Investment Based On
Total Shareholder
Return (5)
($) | | |
Net Loss(6)
($) | |
| (a) | |
(b) | | |
(c) | | |
(d) | | |
(e) | | |
(f) | | |
(g) | |
| 2022 | |
| 336,001 | | |
| 336,001 | | |
| 960,356 | | |
| 960,356 | | |
| (67.93 | ) | |
| (16,652,688 | ) |
| 2023 | |
| 248,001 | | |
| 248,001 | | |
| 149,772 | | |
| 149,772 | | |
| (3.76 | ) | |
| (34,124,499 | ) |
| (1) |
The dollar amounts reported
in column (b) are the amounts of total compensation reported for the PEO for each corresponding year in the “Total” column
of the Summary Compensation Table. |
| |
|
| (2) |
The dollar amounts reported
in column (c) represent the amount of “compensation actually paid” to the PEO, as computed in accordance with Item 402(v)
of Regulation S-K. No adjustments were required to be made to the PEO’s total compensation for each year to determine the compensation
actually paid pursuant to the requirements of Item 402(v) of Regulation S-K. |
| |
|
| (3) |
The dollar amounts reported
in column (d) represent the average of the amounts reported for the Company’s non-PEO named executive officers as a group in
the “Total” column of the Summary Compensation Table in each applicable year. |
| |
|
| (4) |
The dollar amounts reported
in column (e) represent the average amount of “compensation actually paid” to the non-PEO named executive officers as
a group, as computed in accordance with Item 402(v) of Regulation S-K. No adjustments were required to be made to average total compensation
for the non-PEO named executive officers as a group for each year to determine the compensation actually paid pursuant to the requirements
of Item 402(v) of Regulation S-K. |
| |
|
| (5) |
Cumulative total shareholder
return (“TSR”) is calculated by dividing the sum of the cumulative amount of dividends for the measurement period, assuming
dividend reinvestment, and the difference between the Company’s share price at the end and the beginning of the measurement
period by the Company’s share price at the beginning of the measurement period. |
| |
|
| (6) |
The dollar amounts reported
represent the amount of net loss reflected in the Company’s audited financial statements for the applicable year. |
Description of Relationships Between Information
Presented
In accordance with Item 402(v) of Regulation
S-K, the Company is providing the following descriptions of the relationships between information presented in the Pay versus Performance
table.
COMPENSATION
ACTUALLY PAID AND CUMULATIVE TSR
COMPENSATION ACTUALLY PAID AND NET INCOME
COMPENSATION ACTUALLY PAID AND STOCK PRICE PERFORMANCE
Compensation of Directors
The following table sets forth information concerning
cash and non-cash compensation paid by us to our directors during 2023.
| Name | |
Fees Paid
in Cash
($) | | |
Stock
Awards | | |
Option
Awards | | |
Non-Equity
Incentive Plan
Compensation
($) | | |
Non-Qualified
Deferred
Compensation
Earnings
($) | | |
All Other
Compensation
($) | | |
Total
($) | |
| Shanchun Huang | |
$ | — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
$ | — | |
| Ying Li (1) | |
$ | — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
$ | — | |
| Fuyou Li (2) | |
$ | 18,000 | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
$ | 18,000 | |
| Johnson Lau (3) | |
$ | 25,000 | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
$ | 25,000 | |
| Mingjie Zhao(4) | |
$ | 25,000 | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
$ | 25,000 | |
| (1) |
Ying Li was appointed as
a director of the Board on June 23, 2021. |
| |
|
| (2) |
On May 8, 2015, the Board
appointed Mr. Fuyou Li as a member of the Board of Directors and a member of both the audit committee and compensation committee.
Before June 30, 2021, Mr. Li was entitled for $8,850 per annum as compensation for his service as director of the Company and a member
of the audit committee and compensation committee. On June 23, 2021, the Board appointed Mr. Fuyou Li as the Chairman of the Board
and his annual compensation increased to $18,000 after June 30, 2021. |
| |
|
| (3) |
On December 23, 2014, the
Board appointed Johnson Lau as a member of the Board of Directors of the Company and he currently serves as the Chairman of Audit
Committee and a member of Compensation Committee of the Board. Mr. Lau is entitled for $25,000 per annum as compensation for his
current services as a director of the Company and chair of the audit committee and a member of compensation committee. Mr. Lau resigned
as a director, Chairman of Audit Committee and a member of Compensation Committee on September 30, 2024. |
| |
|
| (4) |
On July 15, 2020, the Board
appointed Mr. Mingjie Zhao as a member of the Board and Chairman of the Compensation Committee and a member of Audit Committee of
the Board. Mr. Zhao is entitled for $25,000 per annum as compensation for his current services as a director of the Company and chair
of the compensation committee and a member of audit committee. |
SUBMISSION OF SHAREHOLDER PROPOSALS
To be considered for inclusion
in next year’s proxy materials, your proposal must be submitted in writing before June 13, 2025, to the attention of our Corporate
Secretary at our principal executive offices. Nothing in this paragraph shall be deemed to require us to include in our proxy statement
and proxy card for such meeting any shareholder proposal which does not meet the requirements of the Securities and Exchange Commission
(“SEC’) in effect at the time. Any such proposal will be subject to Rule 14a-8 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). In addition, any shareholder who intends to solicit proxies in support of director nominees
other than the Company’s nominees in accordance with Rule 14a-19 must provide the required notice of intent to solicit proxies
to the Corporate Secretary no later than 60 calendar days prior to the first anniversary of the date of the 2024 Annual Meeting (no later
than October 6, 2025 for the 2025 annual meeting of shareholders).
PROPOSAL 2 – RATIFICATION OF THE AUDIT
COMMITTEE’S SELECTION OF THE
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Audit Committee has selected Fortune CPA,
Inc. as the Company’s independent auditor for the fiscal year ended December 31, 2024, and has further directed that management
submit the selection of Fortune CPA, Inc. for ratification by the shareholders at the Annual Meeting. Fortune CPA, Inc. is considered
by the Audit Committee to be well qualified, and has served as our independent registered public accounting firm since August 2, 2023.
The shareholders are being asked to ratify this appointment so that the Audit Committee will know the opinion of the shareholders. However,
the Audit Committee has sole authority to appoint the independent registered public accounting firm.
At the time of mailing this Proxy Statement,
the Company does not anticipate that any representative of Fortune CPA, Inc will be present, either by phone or in person, at the
2024 Annual Meeting. Should a representative of Fortune CPA, Inc. be available and desire to make a statement either in person
or by telephone at our 2024 Annual Meeting, they will have the opportunity to do so and will respond to appropriate questions.
The affirmative vote of the holders of a majority
of the Company’s common stock present in person or represented by proxy at the Annual Meeting is necessary for ratification of
the selection of Fortune CPA, Inc. as our independent registered public accounting firm.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR”
THE RATIFICATION OF Fortune CPA, Inc., AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
FEES
The following table shows the fees that we paid
or accrued for audit and other services for fiscal years 2023 and 2022. All of the services described in the following fee table were
approved in conformity with the audit committee’s pre-approval process.
Audit Fees
| | |
2023 | | |
2022 | |
| Audit Fees | |
$ | 312,000 | | |
$ | 280,000 | |
| Tax Fees | |
| — | | |
| — | |
| All Other Fees | |
| 78,350 | | |
| — | |
| Total | |
$ | 390,350 | | |
$ | 280,000 | |
Audit Fees
The amounts set forth opposite “Audit Fees”
above reflect the aggregate fees billed or billable by auditors Onestop Assurance PAC (“Onestop Assurance”) and Fortune
CPA Inc. (“Fortune CPA”) for the audit of our annual consolidated financial statements, review of quarterly financial information
and audit services that are normally provided by the principal accountant in connection with regulatory filings or engagements.
Onestop Assurance provided professional services
for the audit of our fiscal year 2022 financial statements and $280,000 was paid to Onestop Assurance for audit of our fiscal year 2022
financial statements and $78,350 was paid in 2023 for review annual report and Form S-8.
Fortune CPA provided professional services for
the audit of our fiscal year 2023 financial statements and $312,000 was paid to Fortune CPA for audit of our fiscal year 2023 financial
statements.
Tax Fees
The Board audit committee’s policy is to
pre-approve all audit services and all non-audit services that our independent accountants are permitted to perform for us under applicable
federal securities regulations. The audit committee’s policy utilizes an annual review and general pre-approval of certain categories
of specified services that may be provided by the independent accountant, up to pre-determined fee levels. Any proposed services not
qualifying as a pre-approved specified service, and pre-approved services exceeding the pre-determined fee levels, require further specific
pre-approval by the audit committee. The audit committee has delegated to the Chairman of the audit committee the authority to pre-approve
audit and non-audit services proposed to be performed by the independent accountants. Our audit committee was established in April 2008.
All the services provided by our auditors in fiscal years 2023 were pre-approved by the audit committee.
Changes in Registrant’s Certified Accountant
On August 2, 2023, the Audit Committee of the
Board of Directors of Future FinTech Group, Inc. (the “Company”) dismissed Onestop Assurance PAC (“Onestop Assurance”)
as the Company’s independent registered public accounting firm, effective immediately.
Onestop Assurance’ audit reports on the
Company’s consolidated financial statements as of and for the fiscal years ended December 31, 2022 and December 31, 2021 did not
contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting
principles, except that the audit reports on the consolidated financial statements of the Company for the fiscal years ended December
31, 2022 and December 31, 2021 contained an uncertainty about the Company’s ability to continue as a going concern.
During the Company’s two fiscal years of
2022 and 2021 and in the subsequent interim period through August 1, 2023, there were (i) no disagreements between the Company and Onestop
Assurance on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements,
if not resolved to the satisfaction of Onestop Assurance, would have caused Onestop Assurance to make reference to the subject matter
of the disagreement in their reports on the financial statements for such years, and (ii) no “reportable events” as that
term is defined in Item 304(a)(1)(v) of Regulation S-K.
On August 2, 2023, the Audit Committee of the
Board of Directors of the Company approved the engagement of Fortune CPA, Inc. (“Fortune CPA”) as the Company’s independent
registered public accounting firm, effective immediately. The Audit Committee also approved Fortune CPA to act as the Company’s
independent registered public accounting firm for the fiscal year ended December 31, 2023.
During the Company’s two fiscal years of
2022 and 2021 and through August 1, 2023, neither the Company nor anyone on its behalf consulted Fortune CPA regarding (i) the application
of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered
on the consolidated financial statements of the Company; or (ii) any matter that was either the subject of a disagreement or a reportable
event as described above; and there was neither a written report nor was oral advice provided to the Company by Fortune CPA that was
an important factor considered by the Company in reaching a decision as to an accounting, auditing or financial reporting issue.
The Company reported its change in auditors in
Current Report on Form 8-K, filed on Augst 8, 2023.
Policy on Audit Committee Pre-Approval of
Audit and Non-Audit Services of Independent Accountant
The Audit Committee’s policy is to pre-approve
all audit services and all non-audit services that our independent accountants are permitted to perform for us under applicable federal
securities regulations. The audit committee’s policy utilizes an annual review and general pre-approval of certain categories of
specified services that may be provided by the independent accountant, up to pre-determined fee levels. Any proposed services not qualifying
as a pre-approved specified service, and pre-approved services exceeding the pre-determined fee levels, require further specific pre-approval
by the audit committee. The audit committee has delegated to the Chairman of the audit committee the authority to pre-approve audit and
non-audit services proposed to be performed by the independent accountants and the Chairman of the audit committee must report any pre-approval
decisions to the audit committee at its next scheduled meeting. Our audit committee was established in April 2008. All the services provided
by our auditors in fiscal years 2023 were pre-approved by the audit committee.
PROPOSAL 3 – FUTURE
FINTECH GROUP INC. 2024 OMNIBUS EQUITY PLAN
Background
Our shareholders are being asked to consider
and vote on this proposal to approve the Future FinTech Group Inc. 2024 Omnibus Equity Plan (the “Equity Plan”).
On December 5, 2023, the Company’s shareholders
approved the 2023 Omnibus Equity Plan (the “2023 Plan”) at the annual shareholders meeting, which permits the grant of stock
options, stock appreciation rights, restricted stock, unrestricted stock and restricted stock units to its employees of up to 5,000,000
shares of Common Stock. The Company granted 2,890,000 shares under the 2023 Plan to sixteen officers and employees of the Company and
its subsidiaries on December 23, 2023 and granted 2,110,000 shares under the 2023 Plan to four officers and employees of the Company
and its subsidiaries on October 4, 2024. Currently, there were no shares of stock available for awards under the 2023 Plan.
The Equity Plan’s purpose is to attract
and retain high caliber employees, directors, consultants and advisors; motivate participants to achieve long-range goals; provide competitive
incentive compensation opportunities, and align the participant’s interests with the interests of the shareholders by offering
the participants compensation that is based on our common stock.
The description of the Equity Plan below is a
summary and is qualified in its entirety by reference to the provisions of the Equity Plan, which is attached as Annex A to
this proxy statement. Capitalized terms used in the summary but otherwise not defined herein shall have the meanings ascribed to
such terms in the Equity Plan.
The Board of Directors of the Company approved
and adopted the Equity Plan on October 10, 2024, subject to shareholders’ approval.
Recommendation of Board of Directors
The Board of Directors has approved and unanimously
recommends that the stockholders vote “FOR” the proposal to approve the Equity Plan.
Description of the Equity Plan
Administration. The Equity Plan
requires that a committee of non-employee directors administer the Equity Plan. Currently, our Compensation Committee, which we refer
to in this proposal as the Committee, administers the Equity Plan. Among other powers and duties, the Committee determines
the employees who will be eligible to receive awards and establishes the terms and conditions of all awards. Unless prohibited by applicable
law or the applicable rules of a stock exchange, the Committee may delegate its authority and administrative duties under the Equity
Plan.
Shares Subject to the Equity Plan.
The shares issuable under the Equity Plan are shares of our common stock that are authorized but unissued or reacquired common stock,
including shares repurchased by the Company as treasury shares. The total aggregate shares of common stock authorized for issuance during
the term of the Equity Plan is limited to 5,000,000 shares. The Committee must equitably adjust awards and the number of shares available
under the Equity Plan in the event of a recapitalization, stock split, stock dividend, extraordinary cash dividend, split-up, spin-off,
reclassification, combination or other exchange of shares.
Types of Awards and Eligibility.
The Equity Plan provides for five types of awards. The Eligible Persons under the Equity Plan include Employees, Outside Directors, Consultants
and New Hires of the Company or it subsidiaries, as selected by our Board or the designated committee thereof. As of
October 10, 2024, 37 individuals (consisting of 3 executive officers, 1 executive director, 3 independent directors who are not executive
officers, and 30 employees who are not executive officers) are eligible to receive awards under the Equity Plan. The closing price of
Company’s common stock on the NASDAQ Capital Market was $0.31 per share as of October 10, 2024.
Stock Options. Incentive Stock Options
(“ISOs”) are options that are intended to qualify as, and that satisfy the requirements applicable to, an “incentive
stock option” described in Code § 422(b). NSO shall mean an Option that is not intended to be, or does not qualify as, an
Incentive Stock Option and is commonly referred to as a “Non-Statutory Stock Option”.
Option Grant: The grant of
an Option entitles the Participant to purchase the number of Shares designated in the Award Agreement for such Option at an Exercise
Price established by the Committee. Options may be either Incentive Stock Options or Non-Statutory Stock Options, as determined in the
discretion of the Committee. Each Option shall be evidenced by and conditional on an Award Agreement in the form approved by the Committee,
which Award Agreement shall specify whether the Option is an ISO or NSO. No ISO may be granted to any person more than ten (10) years
after the Effective Date of the Equity Plan. Award Agreements need not be identical, but shall include the terms specified in and be
subject to the provisions of the Equity Plan applicable to such Options. To the extent that the aggregate Fair Market Value of the Shares
(determined as of the respective date or dates of grant), subject to ISOs granted to any Participant under the Equity Plan and any other
option plan of the Corporation or any Related Corporation that first become exercisable in any calendar year, including any ISOs which
become exercisable on an accelerated basis during such year, exceeds the sum of One Hundred Thousand Dollars ($100,000), such excess
Options shall be treated as NSOs.
Exercise of Options: The
Exercise Price shall be fixed by the Committee, provided that the Exercise Price for any Option shall never be less than one hundred
percent (100%) (or, in the case of a 10% Stockholder receiving an ISO, 110%) of the Fair Market Value per share of Stock on the Option
grant date. Fair Market Value shall be determined in a manner compliant with Code Section 409A.
Payment of Exercise Price:
The exercise price is payable in cash; by tendering shares of our common stock owned by the participant; by withholding shares that would
be acquired on exercise; by broker-assisted cashless exercise; or by any other form of legal consideration acceptable by the Committee
(so long as it does not result in deferral of compensation within the meaning of Code Section 409A). Options are subject to the conditions,
restrictions and contingencies specified by the Committee.
Option Term: The maximum
term of any option is ten years from the date of grant and, with respect to ISOs granted to an individual who owns 10% of the voting
power of our stock, the maximum term is five years from the date of grant.
Stock Appreciation Rights. A Stock
Appreciation Right (“SAR”) entitles the Participant to receive, with respect to each Share subject to the SAR, the appreciation
in the Fair Market Value over a base price established by the Committee, payable in cash or Stock, or a combination of both, as determined
by the Committee at the time of payment. Each SAR shall be evidenced by an Award Agreement in the form approved by the Committee. Award
Agreements evidencing SARs need not be identical, but shall include the terms specified below and be subject to the provisions of the
Equity Plan applicable to such SARs.
SARs Grant: Each award of
SARs will be evidenced by an award agreement that will specify the base price, the term of the SAR, and such other provisions as the
Committee determines, and which are not inconsistent with the terms of the Equity Plan (which need not be the same for each award for
each recipient).
Base Price of SAR: The base
price of each SAR granted under the Equity Plan will be at least equal to the fair market value of a share of our common stock on the
date of grant.
Settlement of SARs: The Participant
may exercise the SAR by delivering a written notice of exercise to the Corporation, in the form and manner designated by the Committee.
To the extent the Committee determines that the Participant will receive cash upon exercise of a SAR, the Corporation shall deliver the
cash amount which becomes due upon exercise of a SAR as soon as administratively practicable after the Corporation’s receipt of
the Participant’s properly completed notice of exercise. To the extent the Committee determines that Shares will be delivered to
the Participant upon exercise of a SAR, the Shares shall be subject to such conditions, restrictions and contingencies as the Committee
may establish, except that such conditions may not cause the deferral of recognition of income.
SAR Term: The maximum term
of any SAR is ten years from the date of grant.
Unrestricted Stock. The Committee
may, in its sole discretion, award unrestricted stock to any participant as a stock bonus or otherwise pursuant to which such participant
may receive shares of stock free of restrictions or limitations.
Restricted Stock. A Restricted Stock
Award is a grant of Shares subject to conditions and restrictions as determined by the Committee. Each Restricted Stock Award shall be
evidenced by an Award Agreement in the form approved by the Committee. Award Agreements evidencing Restricted Stock Awards need not be
identical, but shall include the terms specified in and be subject to the provisions of the Equity Plan applicable to such Restricted
Stock Awards. Each Restricted Stock Award shall be, for the applicable Period of Restriction determined by the Committee, subject to
such conditions, restrictions and contingencies as the Committee shall determine. Lapse of restrictions may be conditioned on the continued
performance of Services or the achievement of performance conditions measured on an individual, corporate or other basis, or any combination
thereof.
Restricted Stock Units. A Restricted
Stock Unit Award entitles the Participant to receive Shares upon the vesting of the Award. Each Restricted Stock Unit Award shall be
evidenced by an Award Agreement in the form approved by the Committee. Subject to the terms of the Equity Plan, Restricted Stock Units
may be granted to Participants in such amounts and upon such terms and at any time and from time to time, as shall be determined by the
Committee. Award Agreements evidencing Restricted Stock Unit Awards need not be identical, but shall include the terms specified in and
be subject to the provisions of the Equity Plan applicable to Restricted Stock Unit Awards. As soon as practicable following the date
each Restricted Stock Unit vests, the Corporation shall deliver to the Participant the Share underlying such Restricted Stock Unit, subject
to such conditions, restrictions and contingencies as the Committee may establish.
Performance-Based Compensation.
At its discretion, the Committee may make Awards to Participants intended to be the performance-based compensation. In such event, the
number of shares becoming exercisable or transferable or amounts payable with respect to grants of Options, Stock Appreciation Rights,
and/or awards of Restricted Stock, Unrestricted Stock or Restricted Stock Units may be determined based on the attainment of written
performance goals based on the performance measures set forth in Article 7 of the Equity Plan and which have been approved by the Committee
for a specified performance period. The performance goals shall state, in terms of an objective formula or standard, the method of computing
the amount of compensation payable to the Participant if the goal is attained.
Limitations on Awards. The
maximum aggregate cash amount payable under the Equity Plan for any Awards intended to constitute performance-based compensation to any
Participant in any single calendar year shall not exceed $1,000,000. Subject to adjustment as provided in Equity Plan, the maximum aggregate
number of Shares (including Options, SARs, Restricted Stock, and RSUs) that may be granted to any Participant in any calendar year shall
be 1,000,000 Shares.
Vesting and Forfeiture. The
Committee determines the time and conditions under which the award will vest or the period of time after which the restriction shall
lapse as part of making an award. Vesting or the lapse of the period of restriction may, in the Committee’s discretion, be based
solely upon continued employment or service for a specified period of time, or may be based upon the achievement of specific performance
goals (individual, corporation or other basis), or both. Vesting means the time at which an option, SAR or RSU holder may exercise his
or her award at the end of the period of restriction that applies to Restricted Stock. Vesting or lapse provisions need not be uniform
among awards granted at the same time or to persons similarly-situated. Vesting and lapse requirements will be set forth in the applicable
award agreement. The Committee, in its discretion, may accelerate vesting of any award at any time. Unless otherwise determined by the
Committee and included in the Participant’s Award Agreement, in the event that a Participant’s Service with the Corporation
and all Related Corporations is terminated for any reason, all Awards held by the Participant which are unexercised or have not yet vested
as of such date shall expire, terminate, and become unexercisable as of such termination date, provided, however, that if the Participant’s
Service terminates for reasons other than Cause, all outstanding vested Options and SARs held by the Participant as of his or her termination
date shall continue to be exercisable until the earlier of the expiration of their term or the date that is three months after such termination
date.
Extension Exercise
Period. The Committee, in its discretion, may extend the period of time for which an Option or SAR is to remain exercisable
following a termination of service, but in no event beyond the expiration of the option or SAR.
Prohibition on Repricing.
Except as required or permitted pursuant to a corporate transaction (including, without limitation, any recapitalization or reorganization),
in no event will an Option or SAR be amended to reduce the exercise or base price or be canceled in exchange for cash, other awards or
Options or SARs with an exercise price or base price less than the exercise price of the original Option or base price of the original
SAR without shareholder approval.
Limits on Transfers
of Awards/Beneficiary Designation. All awards are exercisable only by the participant during the participant’s lifetime,
and are transferable only by will or by the laws of descent and distribution; provided, however, that the Committee may permit a transfer
of an award, other than an ISO, to a family member of an individual, subject to such restrictions as the Committee may provide. Participants
may designate a beneficiary or beneficiaries to receive their benefits under the Equity Plan if they die before receiving any or all
of such benefit.
Recapitalization. Upon
a recapitalization, the Committee must adjust the number and kind of shares issuable and maximum limits for each type of award, adjust
the number and kind of shares subject to outstanding awards, adjust the exercise or base price of outstanding Options or SARs, and make
any other equitable adjustments.
Reorganization. Upon
a reorganization, the Committee may decide that awards will apply to securities of the resulting corporation (with appropriate adjustment
as determined by the Committee), that any or all outstanding Options and SARs will be immediately exercisable (to the extent permitted
under federal or state securities laws) and shall remain exercisable for the remaining term of the Options or SARs under the terms of
the Equity Plan, that any or all Options and SARs will be immediately exercisable (to the extent permitted under federal or
state securities laws) and shall be terminated after giving at least 30 days’ notice to the Participants to whom such Options or
SARs have been granted, and/or that any or all unvested Restricted Stock Units and Restricted Stock on which restrictions have not yet
lapsed shall become immediately fully vested, nonforfeitable and payable.
Amendment and Termination.
Our Board of Directors may amend, suspend or terminate the Equity Plan, without consent of stockholders or participants, provided,
however, that amendments must be submitted to the shareholders for approval if stockholder approval is required by applicable law, and
any amendment or termination that may adversely affect the rights of participants with outstanding awards requires the consent of such
participants. The Committee may amend any award agreement, provided the amendment is not to re-price or constructively re-price any award.
Term. The
Equity Plan is effective immediately upon the adoption by our Board of Directors, subject to stockholder approval, and will terminate
on the earliest to occur of (i) the 10th anniversary of the Equity Plan’s effective date, or (ii) the date on which
all shares available for issuance under the Equity Plan shall have been issued as fully-vested shares. Options may be granted at any
time on or after the date the Board of Directors adopt the Equity Plan, however, until the shareholders approve the Equity Plan, no Options
or SARs may be exercised, no restricted stock may be issued, and no award may be settled in stock. If shareholder approval is not obtained
within 12 months after the adoption by our Board of Directors, all awards will be null and void.
U.S. Federal Income Tax Consequences
The following summary of
the U.S. federal income tax consequences of awards under the Equity Plan is based on current U.S. federal income tax laws and regulations
and is designed to provide a general understanding of the consequences as of the date of this proxy statement. Laws and regulations may
change in the future and affect the income tax consequences of your award under the Equity Plan. In addition, the impact of the laws
and regulations may vary based on your individual circumstances. This summary does not constitute tax advice and does not address taxation
of your award under the laws of any municipality, state or foreign country. You are urged to consult your own tax advisor as to the specific
tax impact of any award to you.
Incentive Stock Options.
An employee participant will generally have no tax consequences when he or she receives the grant of an ISO. In most cases, an
employee participant also will not have income tax consequences when he or she exercises an ISO. An employee participant may have income
tax consequences when exercising an ISO if the aggregate fair market value (determined at the time of grant) of the shares of the common
stock subject to the ISO that first become exercisable in any one calendar year exceeds $100,000. If this occurs, the excess shares (the
number of shares the fair market value of which exceeds $100,000 in the year first exercisable) will be treated as though they are NQSOs
instead of ISOs. Additionally, subject to certain exceptions for death or disability, if an employee participant exercises an ISO more
than three months after termination of employment, the exercise of the option will be taxed as the exercise of a NQSO. Any shares recharacterized
as NQSOs will have the tax consequences described below with respect to the exercise of NQSOs.
An employee participant recognizes
income when selling or exchanging the shares acquired from the exercise of an ISO in the amount of the difference between the fair market
value at the time of the sale or exchange and the exercise price the participant paid for those shares. This income will be taxed at
the applicable capital gains rate if the sale or exchange occurs after the expiration of the requisite holding periods. Generally, the
required holding periods expire two years after the date of grant of the ISO and one year after the date the common stock is acquired
by the exercise of the ISO. Further, the amount by which the fair market value of a share of the common stock at the time of exercise
of the ISO exceeds the exercise price will likely be included in determining a participant’s alternative minimum taxable income
and may cause the participant to incur an alternative minimum tax liability in the year of exercise.
If an employee participant
disposes of the common stock acquired by exercising an ISO before the holding periods expire, the participant will recognize ordinary
income. The amount of income will equal the difference between the option exercise price and the lesser of (i) the fair market value
of the shares on the date of exercise and (ii) the price at which the shares are sold. This amount will be taxed at ordinary income rates
and be subject to employment taxes. If the sale price of the shares is greater than the fair market value on the date of exercise, the
participant will recognize the difference as gain and will be taxed at the applicable capital gains rate. If the sale price of the shares
is less than the exercise price, the participant will recognize a capital loss equal to the excess of the exercise price over the sale
price.
Using shares acquired by
exercising an ISO to pay the exercise price of another option (whether or not it is an ISO) will be considered a disposition of the shares
for federal tax purposes. If this disposition occurs before the expiration of the required holding periods, the employee option-holder
will have the same tax consequences as are described above in the preceding paragraph. If the option holder transfers any of these shares
after holding them for the required holding periods or transfers shares acquired by exercising an NQSO or on the open market, he or she
generally will not recognize any income upon exercise. Whether or not the transferred shares were acquired by exercising an ISO and regardless
of how long the option holder has held those shares, the basis of the new shares received from the exercise will be calculated in two
steps. In the first step, a number of new shares equal to the number of older shares tendered (in payment of the option’s exercise)
is considered exchanged under Code Section 1036 and the related rulings; these new shares receive the same holding period and the same
basis the option holder had in the old tendered shares, if any, plus the amount included in income from the deemed sale of the old shares
and the amount of cash or other non-stock consideration paid for the new shares, if any. In the second step, the number of new shares
received by the option holder in excess of the old tendered shares receives a basis of zero, and the option holder’s holding period
with respect to such shares commences upon exercise.
There will be no tax consequences
to Future FinTech when it grants an ISO or, generally, when an employee participant exercises an ISO. However, to the extent that an
option holder recognizes ordinary income when he or she exercises, as described above, Future FinTech generally will have a tax deduction
in the same amount and at the same time.
Nonqualified Stock
Options. A participant generally has no income tax consequences from the grant of NQSOs. Generally, in the tax year when the
participant exercises the NQSO, he or she recognizes ordinary income in the amount by which the fair market value of the shares at the
time of exercise exceeds the exercise price for the shares, and that amount will be subject to withholding and employment taxes.
If a participant exercises
a NQSO by paying the exercise price with previously acquired common stock, he or she will have federal income tax consequences (relative
to the new shares received) in two steps. In the first step, a number of new shares equivalent to the number of older shares tendered
(in payment of the NQSO exercised) is considered to have been exchanged in accordance with Code Section 1036 and related rulings, and
no gain or loss is recognized. In the second step, with respect to the number of new shares acquired in excess of the number of old shares
tendered, the participant recognizes income on those new shares equal to their fair market value less any non-stock consideration tendered.
The new shares equal to the number of the old shares tendered will have the same basis the participant had in the old shares and the
holding period with respect to the tendered older shares will apply to the new shares. The excess new shares received will have a basis
equal to the amount of income recognized on exercise, increased by any non-stock consideration tendered. The holding period begins on
the exercise of the option.
The gain, if any, realized
at the later disposition of the common stock will either be short- or long-term capital gain, depending on the holding period.
There will be no tax consequences
to Future FinTech when granting a NQSO. Future FinTech generally will have a tax deduction in the same amount and at the same time as
the ordinary income recognized by the participant.
Stock Appreciation
Rights. Neither the participant nor Future FinTech has income tax consequences from the issuance of a SAR. The participant recognizes
taxable income at the time the SAR is exercised in an amount equal to the amount by which the cash and/or the fair market value of the
shares of the common stock received upon that exercise exceeds the base price. The income recognized on exercise of a SAR will be taxable
at ordinary income tax rates and be subject to employment taxes. Future FinTech generally will be entitled to a tax deduction with respect
to the exercise of a SAR in the same amount and at the same time as the ordinary income recognized by the participant.
Restricted Stock. A
holder of restricted stock will not recognize income at the time of the award, unless he or she specifically makes an election to do
so under Code Section 83(b) within thirty days of such award. Unless the holder has made such an election, he or she will realize ordinary
income and be subject to employment taxes in an amount equal to the fair market value of the shares on the date the restrictions on the
shares lapse, reduced by the amount, if any, he or she paid for such stock. Future FinTech will generally be entitled to a corresponding
deduction in the same amount and at the same time as the holder recognizes ordinary income. Upon the otherwise taxable disposition of
the shares awarded after ordinary income has been recognized, the holder will realize a capital gain or loss (which will be long-term
or short-term depending upon how long the shares are held after the restrictions lapse).
If the holder made a timely
election under Code Section 83(b), he or she will recognize ordinary income for the taxable year in which an award of restricted stock
is received on an amount equal to the fair market value of the shares of restricted stock awarded for which the election is being made
(even if the shares are subject to forfeiture). That income will be taxable at ordinary income tax rates and be subject to employment
taxes. At the time of disposition of the shares, if such an election was made, the holder will recognize gain in an amount equal to the
difference between the sales price and the fair market value of the shares at the time of the award. Such gain will be taxable at the
applicable capital gains rate. Future FinTech will generally be entitled to a tax deduction in the same amount and at the same time as
the ordinary income recognized by the participant.
Restricted Stock Units. A
holder of RSUs generally will not recognize income at the time of the award. Upon delivery of the shares due upon settlement of an RSU,
a holder will realize ordinary income and be subject to employment taxes in an amount equal to the fair market value of the shares distributed.
Future FinTech will generally be entitled to a corresponding tax deduction in the same amount and at the same time as the holder recognizes
income. When the holder later disposes of his or her shares, the difference between the amount realized on sale and the amount recognized
by the holder upon settlement of the RSU will be a capital gain or loss (which will be long-term or short-term depending upon how long
the shares are held).
Unrestricted Stock.
Generally, the participant will, in the year that the unrestricted stock award is granted, recognize compensation taxable as ordinary
income equal to the fair market value of the shares on the date of the award. Future FinTech normally will receive a corresponding deduction
equal to the amount of compensation the recipient is required to recognize as ordinary taxable income, and must comply with applicable
tax withholding requirements.
Limitation on Company
Deductions. No federal income tax deduction is allowed for Future FinTech for any compensation paid to a “covered
employee” in any taxable year of Future FinTech to the extent that his or her compensation exceeds $1,000,000. For this purpose,
“covered employees” are generally the chief executive officer and principal financial officer of Future FinTech, the three
(or for tax years beginning after January 1, 2025, if so required by the American Rescue Plan Act of 2021, as it may be amended from
time to time, and other applicable legally binding guidance, the five) other most highly compensated officers of Future FinTech other
than the principal executive officer and the principal financial officer for the taxable year and any “covered employee”
of Future FinTech (or any predecessor) for any taxable year beginning after December 31, 2016, and the term “compensation”
generally includes amounts includable in gross income as a result of the exercise of stock options or SARs, payments pursuant to performance
shares or units, or the receipt of restricted or unrestricted stock. This deduction limitation, however, does not apply to compensation
that is (1) commission-based compensation, (2) performance-based compensation, (3) compensation which would not be includable in an employee’s
gross income, and (4) compensation payable under a written binding contract in existence on February 17, 1993, and not materially modified
after that date.
Effect of Code Section
280G. Code Section 280G limits the deductibility of certain payments that are contingent upon a change of control if the
total amount of such payments equals or exceeds three times the individual’s “base amount” (i.e., generally,
annualized five-year W-2 compensation). If payment or settlement of an award is accelerated upon a change of control, a portion of such
payment attributable to the value of the acceleration is considered a payment that is contingent upon a change of control. In addition,
the affected individual must pay an excise tax (in addition to any income tax) equal to 20% of such amount.
Impact of Code Section
409A. Code Section 409A provides that all amounts deferred under a nonqualified deferred compensation plan are includible
in a service provider’s gross income to the extent such amounts are not subject to a substantial risk of forfeiture, unless certain
requirements are satisfied. If the requirements are not satisfied, in addition to current income inclusion, interest at the underpayment
rate plus 1% will be imposed on the service provider’s underpayments that would have occurred had the deferred compensation been
includible in gross income for the taxable year in which first deferred or, if later, the first taxable year in which such deferred compensation
is not subject to a substantial risk of forfeiture. The amount required to be included in income is also subject to an additional 20%
tax. While most awards under the Plan are anticipated to be exempt from the requirements of Code Section 409A, awards not exempt from
Code Section 409A are intended to comply with Code Section 409A.
Other Information
Subject to the terms and
provisions of the Equity Plan, the individuals that receive awards and the terms and conditions of such awards are determined at the
discretion of the Compensation Committee. The Compensation Committee has not yet made any determination as to which eligible employees
will receive awards under the Equity Plan in the future, or the value of awards to be made to any eligible individual, and therefore,
it is not possible to determine for any persons or groups the benefits or amounts that will be received in the future under the Equity
Plan.
THE
BOARD OF DIRECTORS HAS APPROVED AND UNANIMOUSLY RECOMMENDS THAT THE SHAREHOLDERS VOTE “FOR” THE PROPOSAL TO APPROVE THE FUTURE
FINTECH GROUP INC. 2024 OMNIBUS EQUITY PLAN.
PROPOSAL NO. 4 – ADVISORY VOTE ON EXECUTIVE
COMPENSATION
The Dodd-Frank Wall Street Reform and Consumer
Protection Act (the “Dodd-Frank Act”) requires that we provide our stockholders a non-binding, advisory vote to approve the
compensation of our named executive officers. This vote is sometimes referred to as a “say-on-pay vote.” Although this advisory
vote is non-binding, the Compensation Committee of our Board will review and consider the voting results when making future decisions
regarding our named executive officer compensation and related executive compensation programs.
As discussed in this Proxy Statement and in our
Annual Report on Form 10-K, our executive compensation program is comprised principally of salary, equity and performance-based cash
compensation, designed to: (i) attract, motivate and retain key executives who are critical to our success, (ii) align the interests
of our executives with stockholder value and our financial performance and (iii) achieve a balanced package that would attract and retain
highly qualified senior officers and appropriately reflect each such officer’s individual performance and contributions. In addition,
the Company regularly reviews its compensation program and the overall compensation package paid to each of its senior executives to
assess risk and to confirm that the structure is still aligned with the Company’s long-term strategic goals.
Before you vote on the resolution below, please
read the entire “Compensation” section, including the tables, together with the related narrative disclosure and footnotes,
beginning on page 16 of this Proxy Statement as well as the disclosures in our Annual Report on Form 10-K. Note, as a “smaller
reporting company,” we are obligated to provide compensation disclosures pursuant to Item 402 of Regulation S-K promulgated under
the Securities Exchange Act of 1934 (“Regulation S-K”).
For the reasons provided, the Board is asking
stockholders to cast a non-binding, advisory vote FOR the following resolution:
“RESOLVED, that stockholders approve the
compensation paid to our named executive officers as disclosed in this Proxy Statement pursuant to Item 402 of Regulation S-K (which
includes the compensation tables and related narrative discussion).”
Though this proposal calls for a non-binding
advisory vote, our Board and Compensation Committee value the opinions of our stockholders and will consider the outcome of the vote
when making future compensation decisions for our named executive officers.
THE BOARD RECOMMENDS THAT THE STOCKHOLDERS
VOTE “FOR” THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS AS DESCRIBED IN THIS PROXY STATEMENT.
ADDITIONAL MEETING INFORMATION
Proxy Solicitation
The cost of soliciting proxies for the Annual
Meeting will be borne by the Company. In addition, the Company will reimburse brokerage firms and other persons representing beneficial
owners of shares for their expenses in forwarding solicitation material to such beneficial owners. Directors, officers and regular employees
of the Company may, for no additional compensation, also solicit proxies personally or by telephone, electronic transmission, telegram
or special letter.
Annual Report
We will provide without charge to each person
solicited by this Proxy Statement, on the written request of such person, a copy of our Annual Report on Form 10-K for the year ended
December 31, 2023 (the “Annual Report”), which has been filed with the SEC pursuant to the 1934 Act. Copies of this Proxy
Statement and/or the Annual Report, as well as copies of any Quarterly Report may be obtained without charge upon written request to
Future FinTech Group Inc., Americas Tower, 1177 Avenue of The Americas, Suite 5100, New York, NY 10036, Attn: Corporate Secretary, or
on the SEC’s internet website at www.sec.gov.
OTHER MATTERS
As of the date of this
proxy statement, the board of directors of Future FinTech knows of no matters that will be presented for consideration at the Annual
Meeting other than as described in this proxy statement. If any other matters properly come before the Annual Meeting or any adjournments
or postponements of the meeting and are voted upon, the enclosed proxy will confer discretionary authority on the individuals named as
proxy to vote the shares represented by the proxy as to any other matters. The individuals named as proxies intend to vote in accordance
with their best judgment as to any other matters.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports,
proxy statements and other documents with the SEC under the Exchange Act. You may read and copy any reports, statements or other information
that we file with the Securities and Exchange Commission at the SEC’s public reference room at the following location: Station
Place, 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You may also obtain copies of those documents at prescribed rates by writing
to the Public Reference Section of the SEC at that address. Please call the SEC at (800) SEC-0330 for further information on the
public reference room. These SEC filings are also available to the public from commercial document retrieval services and at www.sec.gov.
In addition, shareholders may obtain free copies of certain documents filed with the SEC by Future FinTech through the “SEC Filings”
section of our website at www.ftft.com.
You may obtain any of the documents we file with
the SEC, without charge, by requesting them in writing or by telephone from us at the following address:
Future FinTech Group Inc.
Attn: Corporate Secretary
Americas Tower, 1177 Avenue of The Americas
Suite 5100, New York, NY 10036
888-622-1218
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By Order of the Board of Directors |
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|
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/s/ Hu Li |
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Hu Li |
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Chief Executive Officer and Director |
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October 11, 2024 |
Future
Fintech grOup inc.
2024 OMNIBUS EQUITY PLAN
ARTICLE 1
GENERAL PROVISIONS
| 1.1. |
PURPOSE
OF THE PLAN. |
The Future FinTech Group Inc. 2024 Omnibus Equity
Plan has been established by Future FinTech Group Inc. to (a) attract and retain high caliber employees, directors, consultants and advisors;
(b) motivate Participants, by means of appropriate incentives, to achieve long-range goals; (c) provide incentive compensation opportunities
that are competitive with those of other similarly-situated companies; and (d) further align Participants’ interests with those
of the Corporation’s stockholders through compensation that is based on the Corporation’s common stock; and thereby promote
the long-term financial interest of the Corporation, including the growth in value of the Corporation’s equity and enhancement
of long-term stockholder return.
Capitalized terms shall have the meanings assigned
to such terms in Section 9 of the Plan.
| 1.2. |
TYPES
OF AWARDS AVAILABLE UNDER THE PLAN. |
The Plan provides for five types of Awards:
Options - the Option Grant
Program under which Eligible Persons may be granted Incentive Stock Options or Non-Statutory Stock Options to purchase Shares is
set forth in Article 2;
Stock Appreciation Rights -
the Stock Appreciation Rights Program under which Eligible Persons may be granted a right to receive the appreciation in the Fair
Market Value of Shares in the form of cash or Stock is set forth in Article 3;
Restricted Stock - the Restricted
Stock Program under which Eligible Persons may be issued Shares, subject to certain conditions and restrictions, is set forth in
Article 4; and
Unrestricted Stock: the
Unrestricted Stock Program under which Eligible Persons may be issued Shares, is set forth in Article 5; and
Restricted Stock Units -
the Restricted Stock Units Program under which Eligible Persons may be granted a right to receive Stock upon the satisfaction of
certain conditions and restrictions is set forth in Article 6.
The provisions of Articles 1, 7 (to the extent
applicable), 8 and 9 apply to each type of Award made under the Plan and govern the interests of all persons under the Plan.
| 1.3. |
ADMINISTRATION
OF THE PLAN. |
| (a) |
General
Administration. The Plan shall be administered and interpreted by the Committee (as designated pursuant to Paragraph (b)). Subject
to the express provisions of the Plan, the Committee shall have authority to interpret the Plan, to prescribe, amend and rescind
rules and regulations relating to the Plan, to determine the terms and provisions of the Award Agreements by which Awards shall be
evidenced (which shall not be inconsistent with the terms of the Plan), and to make all other determinations necessary or advisable
for the administration of the Plan, all of which determinations shall be final, binding and conclusive. |
| (b) |
Appointment
of Committee. The Board shall appoint the Committee from among its nonemployee members to serve at the pleasure of the Board.
The Board from time to time may remove members from, or add members to, the Committee and shall fill all vacancies thereon. The Committee
at all times shall be composed of two or more nonemployee directors who shall meet all of the following requirements: |
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(i) |
Disinterested
Administration for Rule 16b-3 Exemption. During the period any director is serving on the Committee, he shall (A) not be an officer
of the Corporation or a parent or subsidiary of the Corporation, or otherwise currently employed by the Corporation or a parent or
subsidiary of the Corporation; (B) not receive compensation, either directly or indirectly, from the Corporation or a parent or subsidiary
of the Corporation for services rendered as a consultant or in any capacity other than as a director, except for an amount that does
not exceed the dollar amount for which disclosure would be required pursuant to Rule 404(a) of the Securities Exchange Act of 1934;
(C) not possess an interest in any other transaction for which disclosure would be required pursuant to Rule 404(a) of the Securities
Exchange Act of 1934; and (D) not be engaged in a business relationship for which disclosure would be required pursuant to Rule 404(b)
of the Securities Exchange Act of 1934. The requirements of this subsection are intended to comply with Rule 16b-3 under Section
16 of the Securities Exchange Act of 1934, and shall be interpreted and construed in a manner which assures compliance with said
Rule 16b-3. To the extent said Rule 16b-3 is modified to reduce or increase the restrictions on who may serve on the Committee, the
Plan shall be deemed modified in a similar manner; |
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(ii) |
Outside Director.
No director serving on the Committee may be a current employee of the Corporation or a former employee of the Corporation (or any
corporation affiliated with the Corporation under Code §1504) receiving compensation for prior services (other than benefits
under a tax-qualified retirement plan) during each taxable year during which the director serves on the Committee. Furthermore, no
director serving on the Committee shall be or have ever been an officer of the Corporation (or any Code §1504 affiliated corporation),
or shall receive remuneration (directly or indirectly) from such a corporation in any capacity other than as a director. |
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(iii) |
Independent Director
Rule for Stock Exchange. During the period any director is serving on the Committee, he shall satisfy all requirements to qualify
as an independent director for purposes of the rules of the exchange on which the Stock is traded. |
| (c) |
Organization. The
Committee may select one of its members as its chairman and shall hold its meetings at such times and at such places as it shall
deem advisable. A majority of the Committee shall constitute a quorum. Actions may be taken by a majority of the Committee at a meeting
or by unanimous written consent of all Committee members in lieu of a meeting. The Committee shall keep minutes of its proceedings
and shall report the same to the Board at the meeting next succeeding. |
| (d) |
Powers of Committee.
The Committee may make one or more Awards under the Plan to a Participant. The Committee shall decide which Eligible Persons shall
receive an Award and when to grant an Award, the type of Award that it shall grant and the number of Shares covered by the Award.
The Committee shall also decide the terms, conditions, performance criteria, restrictions and other provisions of the Award. The
Committee may grant a single Award or an Award in combination with another Award(s) to a Participant. The Committee may grant an
Award as an alternate to or replacement of an existing Award under the Plan or award under any other compensation plan or arrangement
of the Corporation or a Related Corporation, including a plan of any entity acquired by the Corporation or a Related Corporation,
upon the cancellation of the existing award; provided, that such grant of an alternate or replacement Award may be made only
if the alternate or replacement Award does not constitute a repricing of the existing award (as limited by Section 1.5(c) of the
Plan). In making Award decisions, the Committee may take into account the nature of services rendered by the individual, the individual’s
present and potential contribution to the Corporation’s success and such other factors as the Committee, in its sole discretion,
deems relevant. |
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The Committee shall interpret
the Plan, establish and rescind any rules and regulations relating to the Plan, decide the terms and provisions of any Award Agreements
made under the Plan, and determine how to administer the Plan. The Committee also shall decide administrative methods for the exercise
of Stock Options. Each Committee decision shall be final, conclusive and binding on all parties. |
| (e) |
Delegation by Committee.
Unless prohibited by applicable law or the applicable rules of a stock exchange, the Committee may allocate all or some of its responsibilities
and powers to any one or more of its members. The Committee also may delegate some or all of it administrative duties and powers
to any Employee, including officers. |
| (f) |
Information to be Furnished
to Committee. The records of the Corporation and Related Corporations as to an Eligible Person’s or Participant’s
employment, termination of employment, performance of Services, termination of Services, leave of absence, reemployment and compensation
shall be conclusive on all persons unless determined to be manifestly incorrect. Participants and other persons entitled to benefits
under the Plan must, as a condition to the receipt or settlement of any Award hereunder, furnish the Committee with such evidence,
data or information as the Committee reasonably considers desirable to carry out the terms of the Plan. |
| (g) |
Indemnification.
In addition to such other rights of indemnification that they have as members of the Board or the Committee, the Corporation shall
indemnify the members of the Committee (and any designees of the Committee, as permitted under Paragraph (e)), to the extent permitted
by applicable law, against reasonable expenses (including, without limitation, attorney’s fees) actually and necessarily incurred
in connection with the defense of any action, suit or proceeding, or in connection with any appeal, to which they or any of them
may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Award awarded hereunder,
and against all amounts paid by them in settlement thereof (provided such settlement is approved to the extent required by
and in the manner provided by the articles of incorporation or the bylaws of the Corporation relating to indemnification of the members
of the Board) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to such matters
as to which it is adjudged in such action, suit or proceeding that such Committee member or members (or their designees) did not
act in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Corporation. |
The persons eligible to participate in this Plan
(“Eligible Persons”) are as follows:
| (a) |
Employees. Employees (including Employees who
are members of the Board and Employees who reside in countries other than the United States), provided that awards of Incentive
Stock Options shall only be made to Employees. |
| (b) |
Outside Directors. Non-Employee
members of the Board or the board of directors of any Related Corporation. |
| (c) |
Consultants. Other
consultants and independent advisors who provide bona-fide services to the Corporation (or any Related Corporation). |
| (d) |
New Hires. Persons
who have been offered employment by the Corporation or a Related Corporation, provided that such a prospective Employee may
not be granted an Incentive Stock Option until he or she becomes an Employee and may not receive any payment or exercise any right
relating to an Award until such person begins employment with the Corporation or the Related Corporation. |
| 1.5 |
STOCK SUBJECT TO THE
PLAN. |
| (a) |
Shares Available for
Issuance. |
| |
(i) |
Reserve. The Stock issuable under
the Plan shall be Shares of authorized but unissued or reacquired Stock, including Shares repurchased by the Corporation as treasury
shares. The maximum number of Shares available for issuance under the Plan shall be 5,000,000 Shares.
|
| |
(ii) |
Share Use. Any Shares
granted under the Plan that are forfeited because of the failure to meet an Award contingency or condition shall again be available
for issuance pursuant to new Awards granted under the Plan. To the extent any Shares covered by an Award are not delivered to a Participant
or beneficiary because the Award is forfeited or canceled, such Shares shall not be deemed to have been delivered for purposes of
determining the maximum number of Shares available for delivery under the Plan. However, should the Exercise Price of an Option under
the Plan be paid with Shares or should Shares otherwise issuable under the Plan be withheld by the Corporation in satisfaction of
the withholding taxes incurred in connection with the exercise or vesting of an Award under the Plan, then such number of Shares
shall be treated for purposes of this Paragraph as having been issued to the holder and shall not be available for subsequent issuance
under the Plan. Notwithstanding the above, Shares repurchased by the Company using stock option exercise proceeds and the total number
of Shares underlying a SAR granted and exercised under the Plan whether or not a SAR is settled cash or Shares, or a combination
thereof, shall not be available for subsequent issuance under the Plan. |
| |
(iii) |
Individual Participant
Limitations. The maximum aggregate cash amount payable under the Plan for any Awards intended to constitute performance-based
compensation to any Participant in any single calendar year shall not exceed $1,000,000. Subject to adjustment as provided in Paragraph
(b) below, the maximum aggregate number of Shares (including Options, SARs, Restricted Stock, and RSUs) that may be granted to any
Participant in any calendar year shall be 1,000,000 Shares. |
| (b) |
Adjustment to Shares
and Awards. |
| |
(i) |
Recapitalization.
If the Corporation is involved in a corporate transaction or any other event which affects the Shares (including, without limitation,
any recapitalization, reclassification, reverse or forward stock split, stock dividend, extraordinary cash dividend, split-up, spin-off,
combination or exchange of shares), then the Committee shall adjust Awards to preserve the benefits or potential benefits of the
Awards as follows: |
| |
(1) |
The Committee shall take
action to adjust the number and kind of Shares that are issuable under the Plan and the maximum limits for each type of grant; |
| |
(2) |
The Committee shall take
action to adjust the number and kind of Shares subject to outstanding Awards; |
| |
(3) |
The Committee shall take
action to adjust the Exercise Price or base price of outstanding Options and Stock Appreciation Rights; and |
| |
(4) |
The Committee shall make
any other equitable adjustments. |
Only whole Shares shall be issued in
making the above adjustments. Further, the number of Shares available under the Plan or the number of Shares subject to any outstanding
Awards shall be the next lower number of Shares, so that fractions are rounded downward. Any adjustment to or assumption of ISOs under
this Section shall be made in accordance with Code §424. If the Corporation issues any rights to subscribe for additional Shares
pro rata to holders of outstanding Shares of the class or classes of stock then set aside for the Plan, then each Participant shall be
entitled to the same rights on the same basis as holders of outstanding Shares with respect to such portion of the Participant’s
Award as is exercised on or prior to the record date for determining stockholders entitled to receive or exercise such rights.
| |
(ii) |
Reorganization. If the
Corporation is part of any reorganization involving merger, consolidation, acquisition of the Common Stock or acquisition of the
assets of the Corporation, the Committee, in its discretion, may decide that: |
| |
(1) |
any or all outstanding
Awards shall pertain to and apply, with appropriate adjustment as determined by the Committee, to the securities of the resulting
corporation to which a holder of the number of Shares subject to each such Award would have been entitled; |
| |
(2) |
any or all outstanding
Options or SARs shall become immediately fully exercisable (to the extent permitted under federal or state securities laws) and shall
remain exercisable for the remaining term of the Options or SARs under the terms of the Plan; |
| |
(3) |
any or all Options or SARs
shall become immediately fully exercisable (to the extent permitted under federal or state securities laws) and shall be terminated
after giving at least 30 days’ notice to the Participants to whom such Options or SARs have been granted; and/or |
| |
(4) |
any or all unvested Restricted
Stock Units AND Restricted Stock on which restrictions have not yet lapsed shall become immediately fully vested, nonforfeitable
and payable. |
| |
(iii) |
Limits on Adjustments.
Any issuance by the Corporation of stock of any class other than the Stock, or securities convertible into shares of stock of any
class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject
to any Award, except as specifically provided otherwise in this Plan. The grant of Awards under the Plan shall not affect in any
way the right or authority of the Corporation to make adjustments, reclassifications, reorganizations or changes of its capital or
business structure or to merge, consolidate or dissolve, or to liquidate, sell or transfer all or any part of its business or assets.
All adjustments the Committee makes under this Plan shall be conclusive. |
| (c) |
No Repricings. Except
in connection with a corporate transaction involving the Corporation (including, without limitation, any stock dividend, stock split,
extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange
of Shares), the terms of outstanding Awards may not be amended to reduce the Exercise Price of outstanding Options or the base price
of SARs or to cancel outstanding Options or SARs in exchange for cash, other awards or Options or SARs with an Exercise Price or
base price that is less than the Exercise Price of the original Options or base price of the original SARs without stockholder approval. |
ARTICLE 2
OPTION GRANT PROGRAM
The grant of an Option entitles the Participant
to purchase the number of Shares designated in the Award Agreement for such Option at an Exercise Price established by the Committee.
Options may be either Incentive Stock Options or Non-Statutory Stock Options, as determined in the discretion of the Committee. Each
Option shall be evidenced by and conditional on an Award Agreement in the form approved by the Committee, which Award Agreement shall
specify whether the Option is an ISO or NSO. No ISO may be granted to any person more than ten (10) years after the Effective Date of
the Plan. Award Agreements need not be identical, but shall include (through incorporation of provisions hereof, by reference in the
Award Agreements, or otherwise) the terms specified below and be subject to the provisions of the Plan applicable to such Options.
To the extent that the aggregate Fair Market
Value of the Shares (determined as of the respective date or dates of grant), subject to ISOs granted to any Participant under the Plan
and any other option plan of the Corporation or any Related Corporation that first become exercisable in any calendar year, including
any ISOs which become exercisable on an accelerated basis during such year, exceeds the sum of One Hundred Thousand Dollars ($100,000),
such excess Options shall be treated as NSOs.
Each Option shall vest and become exercisable
at such time or times, during such period, and for such number of Shares as shall be determined by the Committee and set forth in the
Award Agreement evidencing the Option; provided that no Option may be exercisable after the expiration of ten (10) years (or,
in the case of an ISO granted to a 10% Stockholder, five (5) years) from the date of grant. Vesting may be conditioned on the continued
performance of Services or the achievement of performance conditions measured on an individual, corporate or other basis, or any combination
thereof.
The Exercise Price shall be fixed by the Committee,
provided that the Exercise Price for any Option shall never be less than one hundred percent (100%) (or, in the case of a 10% Stockholder
receiving an ISO, 110%) of the Fair Market Value per share of Stock on the Option grant date.
The Participant may exercise the Option by delivering
a written notice of exercise to the Corporation, in the form and manner designated by the Committee. The notice shall be effective only
if accompanied by payment of the Exercise Price in full. The Committee shall have the discretion to provide that the Exercise Price may
be payable, to the extent permitted by applicable law, in one or more of the forms specified below:
| (a) |
Cash/Check. Cash
or check made payable to the Corporation; |
| (b) |
Shares Owned. By
delivery to the Corporation of Shares owned by the Participant (by either actual delivery of Shares or by attestation, with such
Shares valued at Fair Market Value as of the day of exercise) with such documentation as the Committee may require or in such other
manner as the Committee may require; |
| (c) |
Share Withholding. By
withholding Shares that would otherwise be acquired on exercise having an aggregate Fair Market Value at the time of exercise equal
to the Exercise Price; |
| (d) |
Cashless Exercise. By
cashless exercise through delivery of irrevocable instructions to a broker to promptly deliver to the Corporation the amount of proceeds
from a sale of Shares having a Fair Market Value equal to the Exercise Price; and/or |
| (e) |
Other Forms. In
any other form of legal consideration that may be acceptable to the Committee, so long as it does not result in the deferral of recognition
of income or a “deferral of compensation” within the meaning of Code §409A. |
The Corporation shall deliver Shares as soon
as practicable after the Corporation’s receipt of the Participant’s properly completed notice of exercise and payment in
full of the Exercise Price as described in Section 2.4. Such Shares shall be subject to such conditions as the Committee may establish,
except that such conditions may not cause the deferral of recognition of income.
| 2.6 |
CANCELLATION AND REGRANT
OF OPTIONS. |
The Committee shall have the authority to effect,
at any time and from time to time, with the consent of the affected Participant, the cancellation of any or all outstanding Options under
the Option Grant Program and to grant in substitution new Options covering the same or different number of Shares which might have an
Exercise Price per Share no less than the Fair Market Value per Share on the new grant date. The cancellation and grant need not be simultaneous.
ARTICLE 3
STOCK APPRECIATION RIGHTS PROGRAM
A Stock Appreciation Right (“SAR”)
entitles the Participant to receive, with respect to each Share subject to the SAR, the appreciation in the Fair Market Value over a
base price established by the Committee (as determined below), payable in cash or Stock, or a combination of both, as determined by the
Committee at the time of payment. Each SAR shall be evidenced by an Award Agreement in the form approved by the Committee. Award Agreements
evidencing SARs need not be identical, but shall include (through incorporation of provisions hereof, by reference in the Award Agreements,
or otherwise) the terms specified below and be subject to the provisions of the Plan applicable to such SARs.
The SAR shall cover a specified number of Shares
and shall vest and become exercisable upon such terms and conditions as the Committee shall establish; provided that no SAR may
be exercisable more than ten (10) years after the date of grant unless otherwise determined by the Committee and set forth in the Award
Agreement. Vesting may be conditioned on the continued performance of Services or the achievement of performance conditions measured
on an individual, corporate or other basis, or any combination thereof.
The base price in effect for Shares covered by
a SAR shall be determined by the Committee at the time of grant. In no event, however, may the base price per Share be less than the
Fair Market Value per Share on the grant date. The Participant will receive upon exercise of the SAR an amount equal to the excess of
the Fair Market Value of a Share on the surrender date over the base price of a Share (the “Spread”) multiplied by the number
of Shares covered by the SAR Award. Notwithstanding the foregoing, the Committee, in its sole discretion, may provide at the time it
grants a SAR that the Spread covered by such SAR may not exceed a specified amount.
The Participant may exercise the SAR by delivering
a written notice of exercise to the Corporation, in the form and manner designated by the Committee.
To the extent the Committee determines that the
Participant will receive cash upon exercise of a SAR, the Corporation shall deliver the cash amount which becomes due upon exercise of
a SAR as soon as administratively practicable after the Corporation’s receipt of the Participant’s properly completed notice
of exercise. To the extent the Committee determines that Shares will be delivered to the Participant upon exercise of a SAR, the Shares
shall be subject to such conditions, restrictions and contingencies as the Committee may establish, except that such conditions may not
cause the deferral of recognition of income.
ARTICLE 4
RESTRICTED STOCK PROGRAM
A Restricted Stock Award is a grant of Shares
subject to conditions and restrictions as determined by the Committee. Each Restricted Stock Award shall be evidenced by an Award Agreement
in the form approved by the Committee. Award Agreements evidencing Restricted Stock Awards need not be identical, but shall include (through
incorporation of provisions hereof, by reference in the Award Agreements, or otherwise) the terms specified below and be subject to the
provisions of the Plan applicable to such Restricted Stock Awards.
| 4.2 |
LAPSE OF RESTRICTIONS. |
Each Restricted Stock Award shall be, for the
applicable Period of Restriction determined by the Committee, subject to such conditions, restrictions and contingencies as the Committee
shall determine. Lapse of restrictions may be conditioned on the continued performance of Services or the achievement of performance
conditions measured on an individual, corporate or other basis, or any combination thereof.
| 4.4 |
SHARE ESCROW/LEGENDS. |
| (a) |
Legend. Unless the
certificate representing shares of the Restricted Stock are deposited with a custodian (as described in subparagraph (b) below),
each certificate shall bear the following legend (in addition to any other legend required by law): |
“The transferability
of this certificate and the shares represented hereby are subject to the restrictions, terms and conditions (including forfeiture and
restrictions against transfer) contained in the Future FinTech Group Inc. 2024 Omnibus Equity Plan and a Restricted Stock Agreement dated
__________, ____, between ________________ and Future FinTech Group Inc. The Plan and the Restricted Stock Agreement are on file in the
office of the Corporate Secretary of Future FinTech Group Inc.”
Such legend shall be removed or canceled
from any certificate evidencing shares of Restricted Stock as of the date that such Shares become nonforfeitable.
| (b) |
Deposit with Custodian.
As an alternative to delivering a stock certificate to the Participant, the Committee may deposit or transfer such Shares electronically
to a custodian designated by the Committee. The Committee shall cause the custodian to issue a receipt for the Shares to the Participant
for any Restricted Stock so deposited. The custodian shall hold the Shares and deliver the same to the Participant in whose name
the Restricted Stock evidenced thereby are registered only after such Shares become nonforfeitable. |
ARTICLE 5
UNRESTRICTED STOCK PROGRAM
The Committee may, in its sole discretion, award
Unrestricted Stock to any Participant as a stock bonus or otherwise pursuant to which such Participant may receive shares of Stock free
of restrictions or limitations that would otherwise be applied under Section 4 of this Plan.
ARTICLE 6
RESTRICTED STOCK UNIT (RSU) PROGRAM
A Restricted Stock Unit Award entitles the Participant
to receive Shares upon the vesting of the Award. Each Restricted Stock Unit Award shall be evidenced by an Award Agreement in the form
approved by the Committee. Subject to the terms of the Plan, Restricted Stock Units may be granted to Participants in such amounts and
upon such terms and at any time and from time to time, as shall be determined by the Committee. Award Agreements evidencing Restricted
Stock Unit Awards need not be identical, but shall include (through incorporation of provisions hereof, by reference in the Award Agreements,
or otherwise) the terms specified below and be subject to the provisions of the Plan applicable to Restricted Stock Unit Awards.
Each Restricted Stock Unit shall be subject to
such vesting conditions, restrictions and contingencies as the Committee shall determine and set forth in the Award Agreement evidencing
the RSU. Vesting may be conditioned on the continued performance of Services or the achievement of performance conditions measured on
an individual, corporate or other basis, or any combination thereof.
As soon as practicable following the date each
Restricted Stock Unit vests, the Corporation shall deliver to the Participant the Share underlying such Restricted Stock Unit, subject
to such conditions, restrictions and contingencies as the Committee may establish.
ARTICLE 7
PERFORMANCE-BASED COMPENSATION
| 7.1 |
AWARDS OF PERFORMANCE-BASED
COMPENSATION. |
At its discretion, the Committee may make Awards
to Participants intended to comply with the performance-based compensation. In such event, the number of Shares becoming exercisable
or transferable or amounts payable with respect to grants of Options, Stock Appreciation Rights, and/or awards of Restricted Stock, Unrestricted
Stock or Restricted Stock Units may be determined based on the attainment of written performance goals based on the performance measures
set forth in Section 7.2 and which have been approved by the Committee for a specified performance period. The performance goals shall
state, in terms of an objective formula or standard, the method of computing the amount of compensation payable to the Participant if
the goal is attained. Performance goals will be based on the attainment of one or more objectives based on performance measures. The
performance goals may be calculated without regard to extraordinary items.
| 7.2 |
PERFORMANCE MEASURES.
|
Performance measures may include the following:
(i) earnings before all or any taxes (“EBT”); (ii) earnings before all or any of interest expense, taxes, depreciation and
amortization (“EBITDA”); (iii) earnings before all or any of interest expense, taxes, depreciation, amortization and rent
(“EBITDAR”); (iv) earnings before all or any of interest expense and taxes (“EBIT”); (v) net earnings; (vi) net
income; (vii) operating income or margin; (viii) earnings per share; (ix) growth; (x) return on stockholders’ equity; (xi) capital
expenditures; (xii) expenses and expense ratio management; (xiii) return on investment; (xiv) improvements in capital structure; (xv)
profitability of an identifiable business unit or product; (xvi) profit margins; (xvii) stock price; (xviii) market share; (xvix) revenues;
(xx) costs; (xxi) cash flow; (xxii) working capital; (xxiii) return on assets; (xxiv) economic value added; (xxv) industry indices; (xxvi)
peer group performance; (xxvii) regulatory ratings; (xxviii) asset quality; (xxix) gross or net profit; (xxx) net sales; (xxxi) total
stockholder return; (xxxii) sales (net or gross) measured by product line, territory, customers or other category; (xxxiii) earnings
from continuing operations; (xxxiv) net worth; (xxxv) levels of expense, receivables, cost or liability by category, operating unit or
any other delineation, or any other measures approved by the Committee. Performance Measures may relate to the Corporation and/or one
or more of its affiliates, one or more of its divisions or units or any combination of the foregoing, on a consolidated or nonconsolidated
basis, and may be applied on an absolute basis or be relative to one or more peer group companies or indices, or any combination thereof,
all as the Committee determines. In addition, the performance measures may be calculated without regard to extraordinary items.
| 7.3 |
PERFORMANCE-BASED COMPENSATION
COMMITTEE AND CERTIFICATION. |
Awards intended to be performance-based compensation
shall be granted by a committee of “outside directors.” Pursuant to the provisions of Section 1.3(d) hereof, the Committee
may establish a subcommittee, if necessary, to make such grants. Any payment of compensation with respect to an Award that is intended
to be performance-based compensation will be, subject to the written certification of the Committee that the performance measures were
satisfied prior to the payment of the performance-based compensation. This written certification may include the approved minutes of
the Committee meeting in which the certification is made.
ARTICLE 8
RULES APPLICABLE TO ALL AWARDS
| 8.1 |
TERMINATION OF SERVICE. |
Unless otherwise determined by the Committee
and included in the Participant’s Award Agreement, in the event that a Participant’s Service with the Corporation and all
Related Corporations is terminated for any reason, all Awards held by the Participant which are unexercised or have not yet vested as
of such date shall expire, terminate, and become unexercisable as of such termination date, provided, however, that if the Participant’s
Service terminates for reasons other than Cause, all outstanding vested Options and SARs held by the Participant as of his or her termination
date shall continue to be exercisable until the earlier of the expiration of their term or the date that is three months after such termination
date.
| 8.2 |
ACCELERATION OF VESTING. |
The Committee shall have complete discretion,
subject to the terms of the Plan, exercisable either at the time an Award is granted or at any time while the Award remains outstanding,
to accelerate the vesting of or lapse of restrictions on any Award.
| 8.3 |
EXTENSION OF EXERCISE
PERIOD. |
The Committee shall have complete discretion,
subject to the terms of the Plan, exercisable either at the time an Award is granted or at any time while the Award remains outstanding,
to extend the period of time for which the Option or SAR is to remain exercisable following the Participant’s termination of Service
from the limited exercise period otherwise in effect for that Option or SAR to such greater period of time as the Committee shall deem
appropriate, but in no event beyond the expiration of the Option or SAR term, and/or to permit the Option or SAR to be exercised, during
the applicable post-termination exercise period, not only with respect to the number of vested Shares for which such Option or SAR is
exercisable at the time of the Participant’s termination of Service but also with respect to one or more additional installments
in which the Participant would have vested had the Participant continued in Service. Such an extension may result in recharacterization
of an ISO as a Non-Statutory Stock Option.
All rights with respect to an Award granted to
a Participant under the Plan shall be available during his or her lifetime only to such Participant, except as designated by the Participant
by will or by the laws of descent and distribution; provided, however, that the Committee shall have the discretion to provide
that an Award other than an ISO may, in connection with the Participant’s estate plan, be assigned in whole or in part during the
Participant’s lifetime to a trust established exclusively for one or more members of the Participant’s immediate family.
The terms applicable to the assigned portion shall be the same as those in effect for the Award immediately prior to such assignment
and shall be set forth in such documents issued to the assignee as the Committee may deem appropriate. Any assignment shall not affect
the Participant’s obligations to satisfy applicable tax withholding as described herein. The Participant may also designate in
writing one or more persons as the beneficiary or beneficiaries of his or her outstanding Awards, and those Awards shall, except to the
extent that any lifetime transfer as provided herein, automatically be transferred to such beneficiary or beneficiaries upon the Participant’s
death while holding those Awards. Each such designation shall revoke all prior designations by the same Participant, shall be in a form
prescribed by the Corporation, and will be effective only when filed by the Participant in writing with the Corporation during the Participant’s
lifetime. In the absence of any such designation, benefits under an Award remaining unpaid at the Participant’s death shall be
paid to the Participant’s estate. A beneficiary or beneficiaries shall take the transferred Awards subject to all the terms and
conditions of the applicable Award Agreement, including (without limitation) the limited time period during which any Award may be exercised
following the Participant’s death.
Except as otherwise provided by the Committee
in the Award Agreement, the Participant (or his or her beneficiaries) holding an Award shall have no stockholder rights with respect
to the Shares subject to the Award until he or she has received and become a holder of record of the Shares underlying the Award or,
in the case of Restricted Stock, all restrictions have lapsed.
| (a) |
Conditions on Delivery
of Stock. The Corporation’s obligation to deliver Shares under the Plan shall, to the extent required by Federal, state,
local or foreign law, be subject to the satisfaction of all applicable Federal, state, local and foreign income and employment tax
withholding requirements (or, in the case of Restricted Stock, the making of arrangements satisfactory to the Corporation regarding
such payment). Whenever under the Plan payments are to be made in cash, such payments may be net of an amount sufficient to satisfy
such withholding requirements. |
| (b) |
Tender of Shares.
The Committee may, in its discretion, provide any or all Participants granted Non-Statutory Stock Options, SARs, Restricted Stock,
Unrestricted Stock, or RSUs settled in Stock under the Plan with the right to use Shares in satisfaction of all or part of the applicable
withholding taxes to which such Participants may become subject in connection with the exercise of their Options or SARs, the vesting
of their Restricted Stock, or the settlement of their Restricted Stock Units or other Awards in Stock. Such right may be provided
to any such Participant in either or both of the following formats: |
| |
(i) |
The election to have the
Corporation withhold, from the Shares otherwise issuable upon the exercise of the NSO or SAR, the vesting of the Restricted Stock,
or the settlement of Restricted Stock Units or other Awards in Stock, a portion of those Shares with an aggregate Fair Market Value
equal to the percentage of the applicable withholding taxes (not to exceed the minimum required by law) designated by the Participant. |
| |
(ii) |
The election to deliver
to the Corporation, at the time the NSO or SAR is exercised, the Restricted Stock vests, or the Restricted Stock Units or other Awards
are settled in Stock, one or more Shares previously acquired by such Participant (other than in connection with the Option or SAR
exercise, Restricted Stock vesting or Restricted Stock Units or other Awards in Stock settlement triggering the withholding taxes)
with an aggregate Fair Market Value equal to the percentage of the withholding taxes (not to exceed the minimum required by law)
designated by the Participant. |
ARTICLE 9
DEFINITIONS
The following definitions shall be in effect
under the Plan:
9.1 Award Agreement shall mean a written
document setting forth the terms and provisions applicable to an Award granted to a Participant under the Plan, and is a condition to
the grant of an Award hereunder.
9.2 Awards shall mean any award or benefit
granted to any Participant under the Plan, including, without limitation, the grant of Options, SARs, Restricted Stock, Unrestricted
Stock and Restricted Stock Units.
9.3 Board shall mean the Corporation’s
Board of Directors.
9.4 Cause shall mean the commission of
any act of fraud, embezzlement or dishonesty by the Participant, any act or omission by such person constituting a breach or default
under any written or oral agreement between such person and the Corporation (or any Related Corporation), any unauthorized use or disclosure
by such person of confidential information or trade secrets of the Corporation (or any Related Corporation), or any other intentional
act by such person adversely affecting the business or affairs of the Corporation (or any Related Corporation) in a material manner.
The foregoing definition shall not be deemed to be inclusive of all the acts or omissions which the Corporation (or any Related Corporation)
may consider as grounds for the dismissal or discharge of any Participant or other person in the Service of the Corporation (or any Related
Corporation).
9.5 Change of Control shall mean the first of the following
events to occur:
| |
(a) |
The acquisition by any
one person or more than one person acting as a group (within the meaning of Treasury Regulation §1.409A-3(i)(5)(v)(B)), other
than the Corporation, any Related Corporation, or any employee benefit plan (or related trust) sponsored or maintained by the Corporation
or any Related Corporation, (a “Person”) of any of stock of the Corporation that, together with stock held by such Person,
constitutes more than 50% of the total fair market value or total voting power of the stock of the Corporation. For purposes of this
Paragraph (a), the following acquisitions shall not constitute a Change of Control: (i) the acquisition of additional stock by a
Person who is considered to own more than 50% of the total fair market value or total voting power of the stock of the Corporation,
(ii) any acquisition in which the Corporation does not remain outstanding thereafter and (iii) any acquisition pursuant to a transaction
which complies with Paragraph (c) below. An increase in the percentage of stock owned by any one Person as a result of a transaction
in which the Corporation acquires its stock in exchange for property will be treated as an acquisition of stock for purposes of this
Paragraph; |
| |
(b) |
The replacement of individuals
who, as of the date hereof, constitute a majority of the Board, during any twelve (12) month period by directors whose appointment
or election is not endorsed by a majority of the Board before the date of the appointment or election, provided that, if the Corporation
is not the relevant corporation for which no other corporation is a majority stockholder for purposes of Treasury Regulation §1.409A-3(i)(5)(iv)(A)(2),
this Paragraph (b) shall be applied instead with respect to the members of the board of the directors of such relevant corporation
for which no other corporation is a majority stockholder; |
| |
(c) |
The acquisition by any
one person or more than one person acting as a group (within the meaning of Treasury Regulation §1.409A-3(i)(5)(vi)(D)), other
than the Corporation, a Related Corporation or any employee benefit plan (or related trust) sponsored or maintained by the Corporation
or any Related Corporation, during the 12-month period ending on the date of the most recent acquisition by such by such person or
persons, of ownership of stock of the Corporation possessing 30% or more of the total voting power of the stock of the Corporation.
For purposes of this Paragraph (c), the following acquisitions shall not constitute a Change of Control: (i) the acquisition of additional
control by a person or more than one person acting as a group who are considered to effectively control the Corporation within the
meaning of Treasury Regulation §1.409A-3(i)(5)(vi) and (ii) any acquisition pursuant to a transaction which complies with Paragraph
(a); or |
| |
(d) |
The acquisition by any
individual person or more than one person acting as a group (within the meaning of Treasury Regulation §1.409A-3(i)(5)(vii)(C)),
other than a transfer to a related person within the meaning of Treasury Regulation §1.409A-3(i)(5)(vii)(B), during the 12-month
period ending on the date of the most recent acquisition by such person or persons, of assets from the Corporation that have a total
gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Corporation immediately
prior to such acquisition(s). For purposes of this Paragraph (d), “gross fair market value” means the value of the assets
of the Corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with such
assets. |
The above definition of “Change of Control”
shall be interpreted by the Board, in good faith, to apply in a similar manner to transactions involving partnerships and partnership
interests, and to comply with Code §409A and official guidance issued thereunder from time to time.
9.6 Code shall mean the Internal Revenue
Code of 1986, as amended.
9.7 Committee shall mean the particular
entity, whether the Committee or the Board, which is authorized to administer the Plan, to the extent such entity is carrying out its
administrative functions under the Plan.
9.8 Corporation shall mean Future FinTech
Group Inc., a Florida corporation, and any corporate successor to all or substantially all of the assets or voting stock of Future FinTech
Group Inc. which shall by appropriate action adopt the Plan.
9.9 Disability shall mean, unless otherwise
provided in the Award Agreement or in an employment, change of control or similar agreement in effect between the Participant and the
Corporation or Related Corporation, the Participant is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period
of not less than 12 months; or, by reason of any medically determinable physical or mental impairment which can be expected to result
in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period
of not less than 3 months under an accident and health plan covering employees of the Corporation or a Related Corporation.
9.10 Effective Date shall mean the date the Plan is adopted
by the Board.
9.11 Eligible Persons shall mean persons eligible to participate
in the Plan, as described in Section 1.4.
9.12 Employee shall mean an employee of the Corporation (or
any Related Corporation).
9.13 Exercise Price shall mean the per Share exercise price
of an Option as determined under Article 2 of the Plan.
9.14 Fair Market Value per Share on the relevant
date shall mean, if the Shares are duly listed on a national securities exchange or on The Nasdaq Stock Market, the closing price
of the Stock on the relevant date, or, if there are no sales on such date, on the next preceding day on which there were sales, or if
the Shares are not so listed, the fair market value of the Shares for the relevant date, as determined by the Committee in good faith
and in compliance with Code §409A.
9.15 Incentive Stock Option or ISO shall
mean an Option that is intended to qualify as, and that satisfies the requires applicable to, an “incentive stock option”
described in Code § 422(b).
9.16 Non-Statutory Stock Option or NSO
shall mean an Option that is not intended to be, or does not qualify as, an Incentive Stock Option.
9.17 Option shall mean a right to acquire
Stock of the Corporation pursuant to a Non-Statutory Stock Option or Incentive Stock Option granted under Article 2 of the Plan.
9.18 Participant shall mean any Eligible
Person who receives an Award under the Plan, and includes those former Eligible Persons who have certain post-termination rights under
the terms of an Award granted under the Plan.
9.19 Reserved.
9.20 Period of Restriction shall mean
the period(s) during which the transfer of an Award or the Shares subject to an Award is limited in some way (based on the passage of
time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, at its discretion)
or the Shares are subject to a substantial risk of forfeiture, pursuant to the terms of this Plan or the applicable Award Agreement.
9.21 Plan shall mean the Future FinTech
Group Inc. 2024 Omnibus Equity Plan, as set forth in this document.
9.22 Related Corporation shall mean any
affiliate of the Corporation; provided, however, that with respect to any ISO and for purposes of the definition of 10% Stockholder,
“Related Corporation” shall mean any Corporation during any period in which it is a “parent corporation” (as
that term is defined in Code §424(e)) with respect to the Corporation or a “subsidiary corporation” (as that term is
defined in Code §424(f)) with respect to the Corporation.
9.23 Restricted Stock shall mean a grant
of Shares granted under Article 4 of the Plan that is subject to such conditions, restrictions and contingencies as the Committee determines
and sets forth in the applicable Award Agreement.
9.24 Restricted Stock Unit or RSUs shall
mean a right to receive Shares upon satisfaction of certain vesting requirements pursuant to Article 6 of the Plan.
9.25 Service shall mean the performance
of services for the Corporation (or any Related Corporation) by a person in the capacity of an Employee, a non-Employee member of the
board of directors, or a consultant or independent advisor, except to the extent otherwise specifically provided in the Award Agreement.
9.26 Shares or Stock shall mean Shares
of common stock of the Corporation, par value $0.001 per share.
9.27 Stock Appreciation Rights or SARs
shall mean a right to receive the appreciation in the Fair Market Value of Shares, as granted under Article 3 of the Plan.
9.28 10% Stockholder shall mean the owner
of stock (as determined under Code §424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes
of stock of the Corporation (or any Related Corporation).
ARTICLE 10
MISCELLANEOUS
| 10.1 |
EFFECTIVE DATE AND TERM
OF PLAN. |
| (a) |
Effective Date.
The Plan shall become effective immediately upon its adoption by the Board, subject to approval by the stockholders of the Corporation
at the first annual meeting of stockholders held following the adoption by the Board, or any special meeting of the stockholders
duly called. Options may be granted under the Option Grant Program at any time on or after the Effective Date. However, until the
stockholders approve the Plan, no Options or SARs granted under the Plan may be exercised, no Restricted or Unrestricted Stock shall
be issued under the Plan and no Award may be settled in Stock under the Plan. If stockholder approval is not obtained within twelve
(12) months after the Effective Date, then all Awards shall be null and void. |
| (b) |
Termination Date.
The Plan shall terminate upon the earliest to occur of (i) the tenth (10th) anniversary of the Plan’s effective date, or (ii)
the date on which all Shares available for issuance under the Plan shall have been issued as fully-vested Shares. Should the Plan
terminate on the tenth (10th) anniversary of the Effective Date, then all Awards outstanding at that time shall continue to have
force and effect in accordance with the provisions of the applicable Award Agreements. |
| (a) |
Amendment and Termination
By the Board. Subject to Paragraph (b) below, the Board shall have the power at any time to add to, amend, modify or repeal any
of the provisions of the Plan, to suspend the operation of the entire Plan or any of its provisions for any period or to terminate
the Plan in whole or in part. In the event of any such action, the Committee shall prepare written procedures which, when approved
by the Board, shall govern the administration of the Plan resulting from such addition, amendment, modification, repeal, suspension
or termination. The Committee may amend any Award Agreement that it previously has authorized under the Plan and the applicable Participant;
provided, however, that no Award Agreement may be amended to reprice or constructively reprice any Award. |
| (b) |
Restrictions on Amendment
and Termination. Notwithstanding the provisions of Paragraph (a) above, the following restrictions shall apply to the Board’s
authority under Paragraph (a) above: |
| |
(i) |
Prohibition Against
Adverse Effects on Outstanding Awards. No addition, amendment, modification, repeal, suspension or termination shall adversely
affect, in any way, the rights of the Participants who have outstanding Awards without the consent of such Participants; |
| |
(ii) |
Stockholder Approval
Required for Certain Modifications. No modification or amendment of the Plan may be made without the prior approval of the stockholders
of the Company if (i) such modification or amendment would cause the applicable portions of the Plan to fail to qualify as an ISO
plan pursuant to Code §422, (ii) such modification or amendment would materially increase the benefits accruing to participants
under the Plan, (iii) such modification or amendment would materially increase the number of securities which may be issued under
the Plan, or (iv) such modification or amendment would materially modify the requirements as to eligibility for participation in
the Plan. Clauses (ii), (iii) and (iv) of the preceding sentence shall be interpreted in accordance with the provisions of paragraph
(b)(2) of Rule 16b-3 of the 1934 Act. Stockholder approval shall be made by a majority of the votes cast at a duly held meeting at
which a quorum representing a majority of all outstanding voting stock is, either in person or by proxy, present and voting, or by
the written consent in lieu of a meeting of the holders of a majority of the outstanding voting stock or such greater number of shares
of voting stock as may be required by the Company’s articles or certificate of incorporation and bylaws and by applicable law;
provided, however, that for modifications described in clauses (ii), (iii) and (iv) above, such stockholder approval, whether by
vote or by written consent in lieu of a meeting, must be solicited substantially in accordance with the rules and regulations in
effect under Section 14(a) of the 1934 Act as required by paragraph (b)(2) of Rule 16b-3 of the 1934 Act. |
| 10.3 |
CONTINUING SECURITIES
LAW COMPLIANCE; LEGENDS. |
The granting of Awards and the issuance of Shares
under the Plan shall be subject to all applicable laws, and to such approvals by any governmental agencies or national securities exchanges
as may be required. If at any time on or after the Effective Date, the Committee, in its discretion, shall determine that the requirements
of any applicable federal or state securities laws should fail to be met, no Shares issuable under Awards and no Options or SARs shall
be exercisable until the Committee has determined that these requirements have again been met. The Committee may suspend the right to
exercise an Options or SAR at any time when it determines that allowing the exercise and issuance of Shares would violate any federal
or state securities or other laws, and may provide that any time periods to exercise the Option or SAR are extended during a period of
suspension. With respect to “Insiders,” transactions under this Plan are intended to comply with all applicable conditions
of Rule 16b-3 under the Securities Exchange Act of 1934. To the extent any provision of the Plan or action by the Committee fails to
so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. Each Award Agreement
and each certificate representing securities granted pursuant to the Plan (including securities issuable pursuant to the terms of derivative
securities) may bear such restrictive legend(s) as the Corporation deems necessary or advisable under applicable law, including Federal
and state securities laws. If any Award is made to a Participant who is subject to the Corporation’s policy regarding trading of
its Stock by its officers and directors and Shares are scheduled to be delivered under the Plan to the Participant on a day (the “original
distribution date”) that does not occur during a “window period” applicable to the Participant, as determined by the
Corporation in accordance with such policy, then the Corporation can choose not to deliver such Shares on such original distribution
date and instead to deliver such Shares on the first day of the next “window period” applicable to the Participant pursuant
to such policy, but in no event later than the March 15 following the close of the calendar year in which such Shares were no longer
subject to a substantial risk of forfeiture (within the meaning of Code §409A).
| 10.4 |
LIQUIDATION OF THE CORPORATION. |
In the event of the complete liquidation or dissolution
of the Corporation, any outstanding Awards granted under this Plan shall be deemed automatically canceled without any action on the part
of the Corporation and without regard to or limitation by any other provision of the Plan.
| 10.5 |
NO EMPLOYMENT/SERVICE
RIGHTS. |
Nothing in the Plan shall confer upon the Participant
any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of
the Corporation (or any Related Corporation employing or retaining such person) or of the Participant, which rights are hereby expressly
reserved by each, to terminate the Participant’s Service at any time for any reason, with or without Cause.
| 10.6 |
RULES OF CONSTRUCTION. |
For all purposes of this Plan, except as
otherwise expressly provided:
| |
(a) |
all accounting terms not
otherwise defined herein have the meanings ascribed thereto under U.S. generally accepted accounting principles; |
| |
|
|
| |
(b) |
all references in this
Plan to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections
and other subdivisions of the body of this Plan except to the extent identified as references to sections or subsections of the Code; |
| |
|
|
| |
(c) |
the words “herein,”
“hereof” and “hereunder” and other words of similar import refer to this Plan as a whole and not to any particular
Article, Section or other subdivision; |
| |
|
|
| |
(d) |
whenever the words “include,”
“includes” or “including” are used in this Plan, they shall be deemed to be followed by the words “without
limitation”; |
| |
|
|
| |
(e) |
whenever this Plan refers
to a number of days, such number shall refer to calendar days unless business days are expressly specified; |
| |
|
|
| |
(f) |
a reference to any legislation
or to any provision of any legislation shall include such legislation, as amended through the date hereof, and all subsequent amendments
or modification thereto or re-enactment thereof, any legislative provision substituted therefor and all regulations and statutory
instruments issued thereunder or pursuant thereto; and |
| |
|
|
| |
(g) |
except where otherwise
indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and
the singular shall include the plural. |
| 10.7 |
UNFUNDED STATUS OF PLAN.
|
The Plan is intended to constitute an “unfunded”
plan for incentive compensation. With respect to any payments not yet made to a Participant by the Corporation, nothing set forth herein
shall give any such Participant any rights that are greater than those of a general creditor of the Corporation. In its sole discretion,
the Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Stock
or a payment in lieu of or with respect to Awards hereunder, provided, however, that the existence of such trusts or other arrangements
is consistent with the unfunded status of the Plan.
| 10.8 |
AWARDS TO PARTICIPANTS
OUTSIDE THE UNITED STATES. |
The Committee may modify the terms of any Award
under the Plan made to or held by a Participant who is then resident or primarily employed outside the United States in any manner deemed
by the Committee to be necessary or appropriate in order that the Award shall conform to laws, regulations, and customs of the country
in which the Participant is then resident or primarily employed, or so that the value and other benefits of the Award to the Participant,
as affected by foreign tax laws and other restrictions applicable as a result of the Participant’s residence or employment abroad,
shall be comparable to the value of such an Award to a Participant who is resident or primarily employed in the United States. Such authorization
shall extend to and include establishing one or more separate sub-plans which include provisions not inconsistent with the Plan that
comply with statutory or regulatory requirements imposed by the foreign country or countries in which the Participant resides.
In the event any provision of the Plan shall
be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan
shall be construed and enforced as if the illegal or invalid provision had not been included.
To the extent not preempted by United States
Federal law, the Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Florida.
FUTURE FINTECH
GROUP INC.
PROXY FOR 2024
ANNUAL MEETING OF SHAREHOLDERS
Meeting Address:
Room 603, Floor 5, Block A, Dong Fang Mei Di Ya, No. 4 Guang Hua Road, Chaoyang District, Beijing, China
Meeting Date:
December 5, 2024 at 10:00 A.M., local time
THE BOARD RECOMMENDS
A VOTE FOR
THE PROPOSALS
AND NOMINEES.
| I. | Election
of Board of Directors: |
| 1） |
Fuyou Li |
☐ FOR |
☐ AGAINST |
☐ ABSTAIN |
| 2） |
Hu Li |
☐ FOR |
☐ AGAINST |
☐ ABSTAIN |
| 3） |
Ying Li |
☐ FOR |
☐ AGAINST |
☐ ABSTAIN |
| 4） |
Mingyong Hu |
☐ FOR |
☐ AGAINST |
☐ ABSTAIN |
| 5） |
Mingjie Zhao |
☐ FOR |
☐ AGAINST |
☐ ABSTAIN |
| II. | To
ratify the appointment of Fortune CPA, Inc. as our independent registered public accounting
firm for the fiscal year ending December 31, 2024. |
| |
☐ FOR |
☐ AGAINST |
☐ ABSTAIN |
III. To adopt and approve the Future
FinTech Group Inc. 2024 Omnibus Equity Plan
| |
☐ FOR |
☐ AGAINST |
☐ ABSTAIN |
| IV. |
To approve the compensation of the named executive officers as disclosed in the
Proxy Statement in a non-binding, advisory vote |
|
☐ FOR |
☐ AGAINST |
☐ ABSTAIN |
| V. |
To transact such other business as may properly come before the meeting or any adjournment thereof. |
| NOTE: | The
proxyholders are authorized to vote on such other business as may properly come before the
meeting or any adjournment thereof. |
This Proxy is solicited
on behalf of the management of Future FinTech Group Inc. This Proxy, when properly executed, will be voted in the manner directed herein
by the undersigned shareholder. If no direction is made, this Proxy will be voted FOR the proposals described above.
TO VOTE ONLINE: www.Transhare.com
click on Vote Your Proxy
Enter Your Control Number:
Votes submitted
electronically over the Internet must be received by 11:59 p.m., Eastern Time, on December 3, 2024.
TO VOTE BY EMAIL: Please email
your signed proxy card to Proxy@Transhare.com
TO VOTE BY FAX: Please fax this
proxy card to 1.727. 269.5616
TO VOTE BY MAIL: Please sign,
date and mail to
Proxy Team
Transhare Corporation
Bayside Center 1
17755 US Highway 19 N
Suite 140
Clearwater FL 33764
IMPORTANT:
Please date this Proxy and sign exactly as your name or names appear hereon. If shares are held jointly, both owners must sign. Executors,
administrators, trustees, guardians and others signing in a representative capacity should give their full titles.
| Signature of Shareholder |
|
| |
|
| |
|
| |
|
| Signature of Joint Shareholder |
|
| |
|
| |
|
| Dated: |
|
Future FinTech (NASDAQ:FTFT)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Future FinTech (NASDAQ:FTFT)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
