Chapter 1 General Provisions
Article 1 To further improve the remuneration management of the Board of Directors of Zhejiang Double Arrow Rubber Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, enable the Company's directors to better fulfill their duties of diligence and prudence, effectively mobilize the enthusiasm, initiative, and creativity of the Company's directors, improve the Company's operational and management level, promote the Company's healthy, sustained, and stable development, and ensure the achievement of the Company's development strategy goals, this System is formulated in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Guiding Principles for the Corporate Governance of Listed Companies," the "Shenzhen Stock Exchange Stock Listing Rules," and other laws, regulations, normative documents, and the "Articles of Association" of the Company, combined with the Company's actual situation.
Article 2 This System applies to all members of the Company's Board of Directors. Directors are classified according to their identity, method of selection, and nature of work: (1) Inside Directors: Directors elected by the Company's shareholders' meeting, employee representative assembly, or other forms of democratic election, who have signed a labor contract with the Company. (2) Independent Directors: Directors appointed by the Company in accordance with the "Guiding Principles for Independent Directors of Listed Companies," who do not hold any other positions in the Company besides director, and have no direct or indirect interest relationship with the Company or its major shareholders and actual controllers, or other relationships that may affect their independent and objective judgment. (3) Outside Directors: Directors elected by the Company's shareholders' meeting, who have not signed a labor contract with the Company, and who hold positions other than director in the Company, and are non-independent directors.