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Grandway Law Offices
Legal Opinion on the 2026 Stock Option Incentive Plan (Draft) of Guangdong L&S Medical Electronic Co., Ltd.
Grandway Legal Opinion [2026] No. AN149-1
7th & 8th Floor, News Plaza, 26 Jianguomennei Avenue, Dongcheng District, Beijing, 100005
Tel: 010-66090088/88004488 Fax: 010-66090016
Definitions
In this legal opinion, unless the context otherwise requires, the following terms or abbreviations have the following meanings:
| Term | Definition |
|---|---|
| L&S Medical / Company | Guangdong L&S Medical Electronic Co., Ltd. |
| Incentive Plan (Draft) | Guangdong L&S Medical Electronic Co., Ltd. 2026 Stock Option Incentive Plan (Draft) |
| This Incentive Plan | Guangdong L&S Medical Electronic Co., Ltd. 2026 Stock Option Incentive Plan |
| Stock Option | The right granted by the Company to incentive targets to purchase a certain number of Company shares at pre-determined conditions within a certain future period |
| Incentive Target | Employees of the Company (including branches and holding subsidiaries) who obtain stock options in accordance with this Incentive Plan |
| Grant Date | The date on which the Company grants stock options to incentive targets; the Grant Date must be a trading day |
| Exercise Price | The price at which incentive targets purchase the Company's listed shares, as determined when the Company grants the stock options |
| Validity Period | From the Grant Date of the stock options until the date when all stock options granted to the incentive targets are exercised or cancelled |
| Waiting Period | The time period between the Grant Date of the stock options and the date on which the stock options become exercisable |
| Exercise | The act of incentive targets exercising their stock options to purchase Company shares in accordance with the arrangements of this Incentive Plan |
| Exercise Date | The date on which incentive targets can begin to exercise; the Exercise Date must be a trading day |
| Exercise Conditions | The conditions that must be met for incentive targets to exercise stock options according to this Incentive Plan |
| Remuneration Committee | The Remuneration and Appraisal Committee of the Company's Board of Directors |
| Company Law | Company Law of the People's Republic of China |
| Securities Law | Securities Law of the People's Republic of China |
| Administrative Measures | Administrative Measures on Equity Incentives of Listed Companies |
| Listing Rules | Rules Governing the Listing of Securities on the ChiNext Market of the Shenzhen Stock Exchange |
| Self-Regulatory Guidelines | Shenzhen Stock Exchange ChiNext Market Listed Company Self-Regulatory Guidelines No. 1 — Business Handling |
| Articles of Association | Articles of Association of Guangdong L&S Medical Electronic Co., Ltd. |
| CSRC | China Securities Regulatory Commission |
| Stock Exchange | Shenzhen Stock Exchange |
| This Firm | Grandway Law Offices |
| Yuan | Renminbi Yuan |
To: Guangdong L&S Medical Electronic Co., Ltd. (hereinafter referred to as "L&S Medical" or the "Company")
In accordance with the Company Law, the Securities Law, the Administrative Measures, the Listing Rules, the Self-Regulatory Guidelines, and other relevant laws, regulations, rules, and normative documents, this firm has been engaged by L&S Medical to issue this legal opinion regarding the 2026 Stock Option Incentive Plan proposed by the Company.
To issue this legal opinion, our lawyers have verified the facts and legal documents related to the following aspects of this Incentive Plan: