Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 55

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 55
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RC
subsidiary, to conduct the SAFE registration and other procedures with respect to the stock incentive plan on behalf of the participants.
In addition, the PRC agent is required to amend the SAFE registration with respect to the stock incentive plan if there is any material
change to the stock incentive plan, the PRC agent or other material changes. The PRC agent must, on behalf of the PRC residents who have
the right to exercise the employee share options, apply to SAFE or its local branches for an annual quota for the payment of foreign currencies
in connection with the PRC residents’ exercise of the employee share options. The foreign exchange proceeds received by the PRC
residents from the sale of shares under the stock incentive plans granted and dividends distributed by the overseas listed companies must
be remitted into the bank accounts in the PRC opened by the PRC agents before distribution to such PRC residents.

The Board of Directors of the Company approved
and adopted Jowell Global Ltd. 2021 Omnibus Equity Plan (the “ Equity Plan”) on August 2, 2021, which was approved at the stockholders’
meeting on September 10, 2021. The total aggregate ordinary shares of the Company authorized for issuance during the term of the Equity
Plan is limited to 4,000,000 shares (before the Share Consolidation effected on October 25, 2023). Our executive officers, director and
other employees who are PRC citizens or who have resided in the PRC for a continuous period of not less than one year and have received
stock awards from the Company have not completed their SAFE registration yet.

The Company issued 30,000 shares to the former
CEO Mr. Zhiwei Xu and 9,750 shares to Dan Zhao with price at $2.62 on January 1, 2023. The Company issued 9,750 shares to Dan Zhao with
price at $2.62 on April 1, 2023.

Regulations on Dividend Distribution

Under our current corporate structure, we may
rely on dividend payments from WFOE, which is a wholly foreign-owned enterprise incorporated in China, to fund any cash and financing
requirements we may have. The principal regulations governing distribution of dividends of foreign-invested enterprises include the newly
enacted Foreign-Investment Law, which came into effect on January 1, 2020, and its implementation rules. Under these laws and regulations,
wholly foreign-owned enterprises