Kelin Environmental Protection Equipment Inc(002499) measures for the administration of assessment of the implementation of stock option incentive plan in 2022
Kelin Environmental Protection Equipment Inc(002499)
Management measures for the assessment of the implementation of stock option incentive plan in 2022
Kelin Environmental Protection Equipment Inc(002499) (hereinafter referred to as “the company”) in order to further improve the corporate governance structure, establish and improve the company’s long-term incentive and restraint mechanism, attract and retain excellent talents, fully mobilize their enthusiasm and creativity, effectively improve the cohesion of the core team and the core competitiveness of the enterprise, and effectively combine the interests of shareholders, the company and the core team, Enable all parties to pay common attention to the long-term development of the company and ensure the realization of the company’s development strategy and business objectives. On the premise of fully protecting the interests of shareholders and in accordance with the principle of equal income and contribution, the company has formulated the Kelin Environmental Protection Equipment Inc(002499) 2022 stock option incentive plan (Draft) (hereinafter referred to as “stock option incentive plan” or “stock option incentive plan”).
In order to ensure the smooth implementation of the equity incentive plan of the company, the measures are hereby formulated in accordance with the company law of the people’s Republic of China, the securities law of the people’s Republic of China, the measures for the administration of equity incentive of listed companies and other relevant laws, administrative regulations, normative documents and the relevant provisions of the articles of association, and in combination with the actual situation of the company.
Article 1 assessment purpose
The purpose of formulating these measures is to strengthen the planning of the implementation of the company’s equity incentive plan, quantify the specific objectives set by the company’s equity incentive plan, promote the scientific, standardized and institutionalized assessment management of incentive objects, and ensure the realization of various performance indicators of the company’s equity incentive plan; At the same time, guide the incentive object to improve work performance, improve work ability, objectively and fairly evaluate the performance and contribution of employees, so as to provide objective and comprehensive evaluation basis for the implementation of this incentive plan.
Article 2 assessment principle
The assessment and evaluation must adhere to the principles of fairness, openness and fairness, and evaluate in strict accordance with the measures and the performance, ability and attitude of the assessment objects. The assessment and evaluation shall combine quantitative and qualitative assessment, so as to realize the close combination of equity incentive plan and the work performance and contribution of the incentive objects, so as to improve the overall performance of the company and maximize the interests of the company and all shareholders.
Kelin Environmental Protection Equipment Inc(002499) measures for the administration of assessment of the implementation of stock option incentive plan in 2022
Article 3 scope of assessment
These measures are applicable to all incentive objects determined in this equity incentive plan, including the core technical / business personnel of the company (including subsidiaries) and other personnel deemed necessary by the board of directors, excluding the independent directors, supervisors, shareholders or actual controllers holding more than 5% of shares alone or in total and their spouses, parents and children. All incentive objects must sign labor contracts or employment contracts with the company or subsidiaries within the assessment period of the incentive plan. Article 4 assessment organization and executive organization
(I) the remuneration and assessment committee of the board of directors (hereinafter referred to as the “Remuneration Committee”) is responsible for leading and reviewing the assessment of incentive objects.
(II) the company’s life resources department, finance department and other relevant departments are responsible for specific assessment and reporting to the Remuneration Committee.
(III) the company’s life resources department, finance department and other relevant departments are responsible for the collection and provision of relevant assessment data, and are responsible for the authenticity and reliability of the data.
(IV) the board of directors of the company is responsible for reviewing the assessment results.
Article 5 performance appraisal indicators and standards
Whether the stock options granted to the incentive object can be exercised will be jointly determined according to the assessment results of the company and the incentive object.
(I) performance assessment requirements at the company level:
The incentive plan will assess the company’s performance indicators by year in the fiscal year from 2022 to 2023, so as to meet the company’s performance assessment objectives as one of the exercise conditions of the incentive object in the current year. The exercise arrangement and performance evaluation objectives of the granted stock options are shown in the table below:
Performance assessment objectives during the exercise period
The first exercise period is based on the audited consolidated operating income of the company in 2021, and the growth rate of audited consolidated operating income in 2022 shall not be less than 20%
The second exercise period is based on the audited consolidated operating income of the company in 2021, and the growth rate of audited consolidated operating income in 2023 shall not be less than 40%
Note: the above “operating income” refers to the audited operating income of the listed company.
During the exercise period, the company shall handle the exercise matters for the incentive objects that meet the exercise conditions. If during each exercise period,
Kelin Environmental Protection Equipment Inc(002499) measures for the administration of assessment of the implementation of stock option incentive plan in 2022
If the current performance level of the company fails to meet the performance assessment target conditions, all the stock options of the incentive object corresponding to the exercisable right of the assessment year shall not be exercised, and the company shall cancel the current exercisable right share of the stock option of the incentive object.
(II) performance appraisal requirements at the individual level of incentive objects:
The individual level assessment of incentive objects shall be implemented according to the relevant internal performance assessment systems of the company. The individual assessment and evaluation results of incentive objects are divided into “qualified” and “unqualified”.
On the premise of the achievement of the company’s performance objectives, if the individual performance appraisal result of the incentive object in the previous year reaches “qualified”, the incentive object can exercise all the stock options in the corresponding appraisal year; If the individual performance appraisal result of the incentive object in the previous year is “unqualified”, all the stock options of the incentive object corresponding to the appraisal year shall not be exercised. If the incentive object fails to exercise the stock option, it shall be cancelled by the company.
Article 6 assessment period and times
(I) assessment period
The fiscal year prior to the exercise of each stock option of the incentive object.
(II) assessment times
The stock option incentive plan shall be assessed once a year.
Article 7 assessment procedure
The life resources department, finance department and other relevant departments of the company are responsible for the specific assessment work under the guidance of the Remuneration Committee of the board of directors, save the assessment results, form a performance assessment report on this basis and submit it to the Remuneration Committee of the board of directors. The board of directors of the company is responsible for reviewing the assessment results.
Article 8 management of assessment results
(I) feedback and application of assessment results
1. The appraisee has the right to know his own appraisal results, and the salary Committee shall notify the appraisee of the appraisal results within 5 working days after the appraisal.
2. If the examinee has any objection to his assessment results, he can communicate with the life resources department, finance department and other relevant departments for settlement. If the problem cannot be solved through communication, the assessed object can receive the assessment notice within 5 working days
Kelin Environmental Protection Equipment Inc(002499) measures for the administration of assessment of the implementation of stock option incentive plan in 2022
Appeal to the Remuneration Committee, which shall review and determine the final assessment result or grade within 10 working days.
3. The assessment results shall be used as the basis for the exercise of stock options.
(II) filing of assessment records
1. After the assessment, the company’s life resources department, finance department and other relevant departments shall keep all assessment records of performance assessment. The assessment results shall be kept as confidential information.
2. In order to ensure the effectiveness of the performance record, no alteration is allowed on the performance record. If it is to be modified or re recorded, it must be signed by the party concerned.
3. The retention period of performance appraisal records is 5 years. The Remuneration Committee of the board of directors of the company has the right to destroy the documents and records beyond the retention period.
Article 9 supplementary provisions
(I) the board of directors is responsible for formulating, interpreting and revising these measures. In case of any conflict between these measures and the laws, administrative regulations and departmental rules issued and implemented in the future, the laws, administrative regulations and departmental rules issued and implemented in the future shall prevail.
(II) these measures have been deliberated and approved by the general meeting of shareholders of the company and will be implemented after the equity incentive plan takes effect.
Kelin Environmental Protection Equipment Inc(002499) March 14, 2002
