Chapter 1 General Provisions
Article 1 To further improve the compensation management of directors and senior management of Ningbo Liyuan Environmental Energy Technology Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, fully mobilize the enthusiasm and creativity of directors and senior management, improve the company's operational and management level, and promote the healthy and sustainable development of the company, in accordance with the "Company Law of the People's Republic of China," the "Code of Corporate Governance for Listed Companies," and other relevant laws, regulations, normative documents, and the "Articles of Association of Ningbo Liyuan Environmental Energy Technology Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in combination with the actual situation of the company, this system is hereby formulated.
Article 2 This system applies to the directors and senior management of the Company. Among them, directors include independent directors and non-independent directors; senior management includes the general manager, deputy general managers, secretary of the board, and financial controller appointed by the board of directors.
Article 3 The determination of compensation for directors and senior management of the Company shall follow the following principles: (1) Principle of distribution according to work; (2) Principle of combining responsibility, rights, and benefits; (3) Principle of linking individual actual income with company benefits; (4) Principle of linking individual actual income with individual performance appraisal; (5) Principle of rewarding and punishing, with equal rewards and punishments, and emphasizing both incentives and restraints.