Item
5.02
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Departure
of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
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On
December 20, 2019, the Board of Directors (the “Board”) of Fortune Valley Treasures, Inc. (the “Company”)
approved an increase in the size of the Board from one (1) director to two (2) directors, appointed Mr. Kaihong Lin to serve as
a director to fill the vacancy created as a result of the increase in the size of the Board, and appointed Mr. Yumin Lin to serve
as the Chairman of the Board.
On
December 20, 2019, Mr. Yumin Lin tendered his resignation as Chief Financial Officer and Treasurer to the Board, effective immediately.
Mr. Yumin Lin’s resignation was for personal reasons and was not due to any disagreement with the Company. Mr. Yumin Lin
will continue to serve as the Chairman, Chief Executive Officer, President and Secretary of the Company.
To
fill the vacancies created by Mr. Yumin Lin’s resignation, the Board appointed Mr. Kaihong Lin to serve as the Company’s
Chief Financial Officer and Treasurer effective December 20, 2019.
Kaihong
Lin, age 46, has served as the financial director of Qianhai DaXingHuaShang Investment (Shenzhen) Co., Ltd., a subsidiary of the
Company, since March 2019. Prior to that, he was the financial director of Guangdong Minche New Energy Automobile Co., Ltd., a
new energy automobile company, from June 2018 to March 2019. He served as financial director in Guangdong Duncheng Environmental
Protection Technology Co., Ltd., an environmental engineering company in China, from June 2017 to May 2018. From October 2015
to May 2017, Mr. Lin was the financial director and a member of the board of Guangzhou Jingcheng Inspection Technology Co., Ltd.,
a company specialized in testing and assessment across various industries, including environment, construction, electronics, food
safety and so on. From January 1997 to October 2015, he was the financial director of Guangdong Provincial Expressway Development
Co., Ltd. (SHE: 000429), a construction and maintenance company for highways and bridges. Mr. Lin received a bachelor’s
degree in human resources from Peking University, a bachelor’s degree in accounting from Jinan University, and a master’s
degree in software engineering with a concentration in financial informatics from Tianjin University.
On
December 20, 2019, the Company and Mr. Kaihong Lin entered into an employment agreement (the “Employment Agreement”)
setting forth the terms and conditions of Mr. Lin’s employment as Chief Financial Officer and Treasurer. Pursuant to the
Employment Agreement, Mr. Lin will serve as the Chief Financial Officer and Treasurer for a term of one year, subject to automatic
renewal for successive one-year terms, unless either party gives 60-day prior notice of non-renewal. Mr. Lin is entitled to an
annual base salary of $25,676 for his services and participation in all compensation and employee benefit plans. Should Mr. Lin
be terminated for cause, or by reason of death or disability, or resign without good reason (as such terms are defined in the
Employment Agreement), Mr. Lin shall be entitled to receive his base salary and benefits through the end of his employment and
such other compensation and benefits as may be provided in applicable plans and programs of the Company. In the case of termination
by death, Mr. Lin is entitled to receive the portion of stock option to the extent vested prior to the end of his employment.
Should Mr. Lin be terminated without cause (other than due to death or disability) or resign for good reason, he shall be entitled
to receive any accrued and unpaid base salary, benefits and the stock option to the extent vested through the end of his employment,
as well as continuation of his base salary for three months following of the end of his employment.
The
foregoing summary of the Employment Agreement does not purport to be complete and is qualified in its entirety by reference to
the Employment Agreement, a copy of which is filed herewith as Exhibit 10.1 and incorporated by reference herein in its
entirety.
There
are no family relationships between Mr. Lin and any director or executive officer of the Company. There are no transactions between
the Company and Mr. Lin that are subject to disclosure under Item 404(a) of Regulation S-K.