Zhejiang KAIEN Special Materials Co., Ltd. Management System for Directors' and Senior Management's Remuneration
Chapter 1 General Provisions
Article 1 To further improve the remuneration management of directors and senior management of Zhejiang KAIEN Special Materials Co., Ltd. (hereinafter referred to as "the Company"), establish a scientific and effective incentive and restraint mechanism, effectively motivate the enthusiasm and creativity of directors and senior management, improve the company's operational and management efficiency, and promote the company's healthy, sustainable, and stable development, in accordance with the "Company Law of the People's Republic of China," the "Guiding Principles for Corporate Governance of Listed Companies," and other relevant laws, regulations, and normative documents, as well as the "Articles of Association of Zhejiang KAIEN Special Materials Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in combination with the company's actual situation, this system is hereby formulated.
Article 2 This system applies to the company's directors (including non-independent directors and independent directors), senior management personnel (including general manager, deputy general managers, financial controller, and board secretary), and production and operation managers.
Article 3 The remuneration management system for the company's directors and senior management personnel shall adhere to the following principles: (1) Principle of fairness, reflecting that the income level is in line with the company's scale and performance, and is also consistent with external remuneration levels; (2) Principle of equal responsibility, rights, and benefits, reflecting that remuneration is commensurate with the value of the position, and the level of responsibility undertaken; (3) Principle of long-term development, reflecting that remuneration is aligned with the company's goals for sustained and healthy development; (4) Principle of balancing incentives and restraints, reflecting that remuneration is linked to performance appraisal, rewards and punishments, and incentive mechanisms.