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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): July 8, 2024
WETOUCH TECHNOLOGY INC.
(Exact name of registrant as specified in its charter)
Nevada |
|
001-41957 |
|
20-4080330 |
(State or other jurisdiction of incorporation) |
|
(Commission File Number) |
|
(IRS Employer Identification No.) |
No.29, Third Main Avenue, Shigao Town, Renshou County,
Meishan,
Sichuan, China
620500
(Address of principal
executive offices)
Registrant’s telephone number, including area code: (86)
28-37390666
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Company under any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common Stock, $0.001 par value |
|
WETH |
|
The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If an emerging growth
company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Departure
of Chief Financial Officer
On
July 8, 2024, Mr. Yuhua Huang resigned as a Chief Financial Officer of Wetouch Technology Inc. (the “Company”). Mr. Huang’s
decision to resign was not the result of any disagreement with the Company, the Board of Directors (the “Board”), management,
or any matter relating to the Company’s operations, policies or practices.
Appointment
of Chief Financial Officer
On
July 8, 2024. the Board of Company appointed Xing Tang to serve as the Chief Financial Officer of the Company, effective July 8, 2024.
Xing
Tang, age 58, served as a Chief Financial Officer of Elong Power Holdings Limited from August 2013 to June 2024, responsible for
preparing Consolidated Financial Statements in US GAAP in compliance with SEC filings. Mrs. Tang served as Finance Director of China
XD Plastics Co., Ltd. from August 2010 to May 2023. From March 2010 to August 2010, she served as the Director of Audit Coordination
Department of Ashir Capital, Inc. Mrs. Tang obtained the Association of Chartered Certified Accountants certificate in June 1998.
Mrs. Tang received a bachelor’s degree in Arts from Sichuan University in 1988 and a bachelor’s degree in Law from
Foreign Affairs College in 1990. She received an MBA degree of Concentration in Accounting from Seton Hall University in 2003. She
has strong expertise in financial reporting in US GAAP and internal controls. The Board believes Mrs. Tang’s extensive
knowledge and background in the accounting and auditing field will make her a valuable addition to the Company.
On
July 8, 2024, the Company and Xing Tang entered into an executive officer agreement. The terms of the appointment of Xing Tang to serve
as the Company’s Chief Financial Officer are three years effective as of July 8, 2024. Xing Tang will receive upon execution of
the agreement a compensation of USD5,630 for each month of service. The foregoing summary description of the executive officer agreement
does not purport to be complete and is qualified in its entirety by the full text of the form of the executive officer agreement, which
is attached hereto as Exhibit 10.31, and incorporated herein by reference.
Xing
Tang has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K,
have no arrangement or understanding with any other person required to be disclosed pursuant to Item 401(a) of Regulation S-K. Xing Tang
has no family relationships required to be disclosed pursuant to Item 401(d) of Regulation S-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
WETOUCH TECHNOLOGY INC. |
|
|
Date: July 12, 2024 |
By: |
/s/ Zongyi Lian |
|
Name: |
Zongyi Lian |
|
Title: |
President and Chief Executive officer (Principal Executive Officer) |
2
Exhibit 10.31
EXECUTIVE OFFICER AGREEMENT
THIS EXECUTIVE OFFICER
AGREEMENT (this “Agreement”), dated as of July 8, 2024, is by and between WETOUCH TECHNOLOGY INC., a Nevada
corporation (the “Company”), and Xing Tang, an individual (the “Executive Officer”).
AGREEMENT
1. Appointment. The
Executive Officer was appointed as Chief Financial Officer on July 8, 2024. This Agreement serves to regulate the employment
relationship between the Company and the Executive Officer. The Company shall employ the Executive Officer and the Executive Officer
shall diligently and faithfully serve the Company chief financial officer pursuant to the terms and conditions of this Agreement and
subject to the amended and restated memorandum and articles of association of the Company, the Nasdaq Stock Market Rules (to the
extent applicable) and other applicable laws and regulations.
2. Term. Subject to
the terms and conditions of this Agreement, the initial term of the Agreement shall be three years, effective as of July 8, 2024. This
Agreement shall continue until the Executive Officer’s successor is duly elected or appointed and qualified or until the Executive
Officer’s earlier death, disqualification, resignation or removal from office, pursuant to the terms of this Agreement, the Company’s
then current articles of incorporation, as may be amended from time to time, or any applicable laws, rules, or regulations (the “Expiration
Date”). In the event that the Executive Officer’s successor has not been duly elected or appointed as of the Expiration
Date, the Executive Officer agrees to continue to serve hereunder until such successor has been duly elected or appointed and qualified.
3. Compensation. During
the term of this Agreement, the Executive Officer shall receive a monthly remuneration of USD5,630 which shall accrue on a day to day
basis payable in arrears on the last day of each calendar month provided that if the Appointment is terminated prior to the end of a calendar
month, the Executive Officer shall only be entitled to a proportionate part of such salary in respect of the period of service during
the relevant month up to the date of termination (the “Compensation”). The Compensation may be reviewed during the
term of this Agreement by the Compensation Committee. Any adjustment of the Compensation shall be recommended by the Compensation
Committee (when applicable) and approved by the Board duly convened pursuant to the then current Memorandum and Articles of Association
of the Company.
4. Duties. The Executive
Officer shall exercise all powers in good faith and in the best interests of the Company, including but not limited to, the following:
(a) devote a sufficient amount
of time and attention to the interests and affairs of the Company in the discharge of duties of his/her office as a chief financial officer
of the Company and, where relevant, as an officer of such other members of the Company and its subsidiaries (the “Group”)
as are necessary for the proper and efficient administration, supervision, and management of the strategic planning, corporate management
and business development of the Group;
(b) faithfully and diligently
perform such duties and exercise such powers as are consistent with his/her office in relation to the Company and/or the Group;
(c) in the discharge of such
duties and in the exercise of such powers observe and comply with all reasonable and lawful resolutions, instructions, regulations
and directions from time to time passed, made or given by the Board according to the best of his/her skills and ability;
(d) perform such services
for the Group and (without further remuneration unless otherwise agreed) accept such offices in the Group as the Board may from time to
time reasonably require provided the same are consistent with his/her office;
(e) at all times keep the
Board promptly and fully informed (in writing if so requested) in connection with the performance of such powers and duties and provide
such explanations as the Board may require in connection with the performance of such powers and duties and provide such explanations
as the Board may require in connection with his/her office in relation to the company and/or the Group;
(f) act in accordance with
his/her powers and obligations as a chief financial officer of the Company and use his/her best endeavors to comply with and to cause
the Company to comply with (a) this Agreement; (b) every rule or law applicable to any member of the Group, whether in the United States
or elsewhere; (c) the Nasdaq Stock Market Rules; (d) amended and restated memorandum and articles of association of the Company; (e) shareholders’
and board resolutions of the Company; (f) the Securities Act of 1933; and (g) all other relevant securities regulations, rules, instructions
and guidelines as issued by the relevant regulatory authorities from time to time, in relation to dealings in shares or other securities
of the Company or any other member of the Group, and in relation to insider information or unpublished inside information affecting the
shares, debentures or other securities of any member of the Group.
The Executive Officer shall
carry out his/her duties and exercise his/her powers jointly with any other executive officers, senior management or directors of the
Group as may from time to time be appointed by the Board. The Board may at any time require the Executive Officer to cease performing
any of his/her duties or exercising any of his/her power under this Agreement.
5. Conflicts of Interest/Applicable
Law. In the event that the Executive Officer has a direct or indirect financial or personal interest in a contract or transaction
to which the Company is a party, or the Executive Officer is contemplating entering into a transaction that involves use of corporate
assets or competition against the Company, the Executive Officer shall promptly disclose such potential conflict to the applicable Board
committee or the Board and proceed as directed by such committee or the Board, as applicable. The Executive Officer acknowledges the duty
of loyalty and the duty of care owed to the Company pursuant to applicable law and agrees to act in all cases in accordance with applicable
law.
6. Corporate Opportunities.
Whenever the Executive Officer becomes aware of a business opportunity related to the Company’s business, which one could reasonably
expect the Executive Officer to make available to the Company, the Executive Officer shall promptly disclose such opportunity to the applicable
Board committee or the Board and proceed as directed by such committee or the Board, as applicable.
7. Termination of the Agreement
(a) By the Company.
(i) For Cause.
The Company may terminate the Employment for cause, at any time, without notice or remuneration (unless notice or remuneration is specifically
required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), if:
(1) the Executive Officer
is convicted or pleads guilty to a felony or to an act of fraud, misappropriation or embezzlement;
(2) the Executive Officer
has been grossly negligent or acted dishonestly to the detriment of the Company;
(3) the Executive Officer
has engaged in actions amounting to willful misconduct or failed to perform his duties hereunder and such failure continues after the
Executive Officer is afforded a reasonable opportunity to cure such failure; or
(4) the Executive Officer
violates Section 8 of this Agreement.
Upon termination for cause,
the Executive Officer shall be entitled to the amount of base salary earned and not paid prior to termination. However, the Executive
Officer will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the Executive’s
right to all other benefits will terminate, except as required by any applicable law.
(ii) For death and disability.
The Company may also terminate the employment, at any time, without notice or remuneration (unless notice or remuneration is specifically
required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), if:
(1) the Executive Officer
has died, or
(2) the Executive Officer
has a disability which shall mean a physical or mental impairment which, as reasonably determined by the Board, renders the Executive
unable to perform the essential functions of his employment with the Company, with or without reasonable accommodation, for more than
120 days in any 12-month period, unless a longer period is required by applicable law, in which case that longer period would apply.
Upon termination for death
or disability, the Executive Officer shall be entitled to the amount of base salary earned and not paid prior to termination. However,
the Executive Officer will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination,
and the Executive’s right to all other benefits will terminate, except as required by any applicable law.
(iii) Without Cause.
The Company may terminate the employment without cause, at any time, upon one-month prior written notice. Upon termination without cause,
the Company shall provide the following severance payments and benefits to the Executive: (1) a lump sum cash payment equal to one
months of the Executive’s base salary as of the date of such termination; (2) a lump sum cash payment equal to a pro-rated
amount of his target annual bonus for the year immediately preceding the termination, if any; (3) immediate vesting of 100% of the then-unvested
portion of any outstanding equity awards held by the Executive.
Upon termination without,
the Executive Officer shall be entitled to the amount of base salary earned and not paid prior to termination.
(iv) Change of Control
Transaction. If the Company or its successor terminates the employment upon a merger, consolidation, or transfer or sale of all or substantially
all of the assets of the Company with or to any other individual(s) or entity (the “Change of Control Transaction”),
the Executive Officer shall be entitled to the following severance payments and benefits upon such termination: (1) a lump sum cash
payment equal to one months of the Executive Officer’s base salary at a rate equal to the greater of his/her annual salary
in effect immediate1y prior to the termination, or his/her then current annua1 salary as of the date of such termination; (2) a lump
sum cash payment equal to a pro-rated amount of his/her target annual bonus for the year immediately preceding the termination; and (3) immediate
vesting of 100% of the then-unvested portion of any outstanding equity awards held by the Executive.
(b) By the Executive. The
Executive Officer may terminate the employment at any time with a one-month prior written notice to the Company, if (1) there is a material
reduction in the Executive Officer’s authority, duties and responsibilities, or (2) there is a material reduction in the Executive
Officer’s annual salary. Upon the Executive Officer’s termination of the employment due to either of the above reasons, the
Company shall provide compensation to the Executive Officer equivalent to one months of the Executive Officer’s base salary that
he is entitled to immediately prior to such termination. In addition, the Executive may resign prior to the Expiration Date if such resignation
is approved by the board of director of the Company or an alternative arrangement with respect to the employment is agreed to by the Board.
(c) Notice of Termination.
Any termination of the Executive Officer’s employment under this Agreement shall be communicated by written notice of termination
from the terminating party to the other party. The notice of termination shall indicate the specific provision(s) of this Agreement relied
upon in effecting the termination.
8.
Confidentiality. The Executive Officer agrees and acknowledges that, by reason of the nature of the Executive Officer’s
duties on the Board, the Executive Officer will have or may have access to and become informed of proprietary, confidential and
secret information which is a competitive asset of the Company (the “Confidential Information”), including,
without limitation, any lists of customers or suppliers, distributors, financial statistics, research data or any other statistics
and plans or operation plans or other trade secrets of the Company and any of the foregoing which belong to any person or company
but to which the Executive Officer has had access by reason of the Executive Officer’s relationship with the Company. The term
“Confidential Information” shall not include information which: (i) is or becomes generally available to the public
other than as a result of a disclosure by the Executive Officer or the Executive Officer’s representatives; or (ii) is
required to be disclosed by the Executive Officer due to governmental regulatory or judicial process. The Executive Officer agrees
faithfully to keep in strict confidence, and not, either directly or indirectly, to make known, divulge, reveal, furnish, make
available or use (except for use in the regular course of employment duties) any such Confidential Information. The Executive
Officer acknowledges that all manuals, instruction books, price lists, information and records and other information and aids
relating to the Company’s business, and any and all other documents containing Confidential Information furnished to the
Executive Officer by the Company or otherwise acquired or developed by the Executive Officer, shall at all times be the property of
the Company. Upon termination of the Executive Officer’s services hereunder, the Executive Officer shall return to the Company
any such property or documents which are in the Executive Officer’s possession, custody or control, but this obligation of
confidentiality shall survive such termination until and unless any such Confidential Information shall have become, through no
fault of the Executive Officer, generally known to the public. The obligations of the Executive Officer under this subsection are in
addition to, and not in limitation or preemption of, all other obligations of confidentiality which the Executive Officer may have
to the Company under general legal or equitable principles.
9. Code of Business Conduct
and Ethics. The Executive Officer agrees to abide by and follow all such procedures set forth in the Company’s code of business
conduct and ethics, as may be in existence now or at any time during the term of this Agreement, and any other policy, code or document
governing the conduct of executive officers of the Company as may be in existence now or at any time during the term of this Agreement.
10. Expenses. Upon
submission of adequate documentation by the Executive Officer to the Company, the Executive Officer shall be reimbursed for all reasonable
expenses incurred in connection with the Executive Officer’s positions as a member of the Board and for services as a member of
each committee of the Board to which the Executive Officer may be appointed.
11. Indemnity. The
Company shall, to the maximum extent provided under applicable law, indemnify and hold the Executive Officer harmless from and against
any expenses, including reasonable attorneys’ fees, judgments, fines, settlements and other legally permissible amounts (“Losses”),
incurred in connection with any proceeding arising out of, or related to, Executive Officer’s performance of the employment under
this Agreement, other than any such Losses incurred as a result of the Executive Officer’s gross negligence or willful misconduct.
The Company shall advance to the Executive Officer any expenses, including reasonable attorneys’ fees and costs of settlement, incurred
in defending any such proceeding to the maximum extent permitted by applicable law. Such costs and expenses incurred by the Executive
Officer in defense of any such proceeding shall be paid by the Company in advance of the final disposition of such proceeding promptly
upon receipt by the Company of (a) written request for payment; (b) appropriate documentation evidencing the incurrence, amount and nature
of the costs and expenses for which payment is being sought; and (c) an undertaking adequate under applicable law made by the Executive
Officer or on Executive Officer’s behalf to repay the amounts so advanced if it shall ultimately be determined pursuant to any non-appealable
judgment or settlement that the Executive Officer is not entitled to be indemnified by the Company.
12. Withholding. The
Executive Officer agrees to cooperate with the Company to take all steps necessary or appropriate for the withholding of taxes by the
Company required under law or regulation in connection herewith, and the Company may act unilaterally in order to comply with such laws.
13. Binding Effect.
This Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns.
14. Recitals. The recitals
to this Agreement are true and correct and are incorporated herein, in their entirety, by this reference.
15. Validity. The invalidity
or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.
16. Headings and Captions.
The titles and captions of paragraphs and subparagraphs contained in this Agreement are provided for convenience of reference only, and
shall not be considered terms or conditions of this Agreement.
17. Neutral Construction.
Neither party hereto may rely on any drafts of this Agreement in any interpretation of the Agreement. Both parties to this Agreement have
reviewed this Agreement and have participated in its drafting and, accordingly, neither party shall attempt to invoke the normal rule
of construction to the effect that ambiguities are to be resolved against the drafting party in any interpretation of this Agreement.
18. Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which together will
constitute one and the same instrument.
19. Miscellaneous.
This Agreement shall be construed under the laws of the State of Nevada, without application to the principles of conflicts of laws. This
Agreement and the Indemnification Agreement constitute the entire understanding between the parties with respect to the Executive Officer’s
service and there are no prior or contemporaneous written or oral agreements, understandings, or representations, express or implied,
directly or indirectly related to this Agreement that are not set forth or referenced herein. This Agreement supersedes all negotiations,
preliminary agreements, and all prior and contemporaneous discussions and understandings of the parties hereto and/or their affiliates
with respect to the Executive Officer’s service. The Executive Officer acknowledges that he/she has not relied on any prior or contemporaneous
discussions or understanding in entering into this Agreement. The terms and provisions of this Agreement may be altered, amended or discharged
only by the signed written agreement of the parties hereto.
[Remainder of Page Intentionally Left Blank]
IN WITNESS WHEREOF, the parties hereto
have executed this Executive Officer Agreement as of the date first above written.
WETOUCH TECHNOLOGY INC. |
|
|
|
|
By: |
/s/ Zongyi Lian |
|
Name: |
Zongyi Lian |
|
Title: |
Chief Executive Officer |
|
EXECUTIVE OFFICER |
|
|
|
By: |
/s/ Xing Tang |
|
Name: |
Xing Tang |
|
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