Chapter One General Principles
Article 1 Purpose
To further improve the compensation management system for directors and senior management of Shenzhen Tuori New Energy Technology Co., Ltd. (hereinafter referred to as "the Company"), this system aims to establish an incentive and restraint mechanism that aligns with modern enterprise development, effectively motivating the directors and senior management, enhancing the operational management efficiency of the Company, and is formulated in accordance with relevant national laws, regulations, and the Articles of Association of Shenzhen Tuori New Energy Technology Co., Ltd. (hereinafter referred to as "the Articles of Association").
Article 2 Scope of Application
This system applies to:
- All directors and senior management of the Company;
- Other personnel deemed applicable by the Board of Directors and its Compensation and Assessment Committee.
Article 3 Determination Principles
The determination of compensation for directors and senior management should balance the long-term development of the Company and the interests of shareholders to ensure the Company's sustainable and stable operation. At the same time, the compensation level must be closely linked to the Company's performance and individual work performance, in accordance with market value principles. The specific principles for determining the Company's compensation system are as follows:
- Performance-linked principle: Compensation is linked to the completion of performance assessment targets;
- Position-based principle: Compensation reflects the value of each position to the Company, embodying the unity of "responsibility, authority, and benefits";
- Fairness principle: Compensation levels consider internal and external fairness and are appropriate to the Company's development scale;
- Coordination principle: Compensation aligns with market development, matches the Company's operational performance, and coordinates with the Company's sustainable development;
- Incentive and restraint principle: Compensation distribution is linked to assessment, rewards and penalties, and the Company's incentive mechanism.
Chapter Two Management Institutions
Article 4
The Compensation and Assessment Committee of the Company's Board of Directors is a specialized institution responsible for determining the compensation plans for directors and senior management, managing compensation, assessment, and supervision.