ITEM 5.02
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Departure of Directors or Certain Officers; Election
of Directors; Appointment
of Certain Officers; Compensatory
Arrangements of Certain Officers.
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Effective
November 14, 2016, the board of directors (the Board) of Kandi Technologies
Group, Inc., a Delaware corporation (the Company or we) appointed Mr. Wang
Cheng (Henry) as the Companys new Chief Strategy Officer (CSO) and Mr. Mei
Bing as the Companys Chief Financial Officer (CFO).
Mr.
Wang, 43, who is resigning as CFO in order to assume the position of CSO, has 20
years of experience in operations, strategy, financial management, and mergers
and acquisitions. Going forward, he will be responsible for driving the
Companys corporate strategy and implementing investment decisions. Before
joining the Company as CFO on May 1, 2015, Mr. Wang had served as CFO for
Shanghai Always Marketing Service Co., LTD., one of the largest field marketing
service agencies in China, leading its procurement and finance departments since
May 2014. Prior to that, Mr. Wang worked for Renesola Ltd. (NYSE: SOL), an
international leading brand and technology provider of green energy products,
initially as Vice President of Finance since January 2010, ascending to CFO in
July 2011. Mr. Wang holds both certifications as Certified Public Accountants
(CPA) in China and Certified Internal Auditor (CIA). He earned a Masters degree
in Law from Renmin University of China and a Master's of Business Administration
from the Open University of Hong Kong.
Mr.
Mei, 51, who is being appointed as CFO of the Company, is a seasoned financial
executive with a distinguished career of more than 15 years as an executive in
both the U.S. and China. Before joining us, Mr. Mei served as CFO and board
secretary of Skystar Bio-Pharmaceutical Company, a publicly traded biotechnology
company based in China from 2011 through 2016. From 2015 through 2016, he also
served as an independent non-executive member of the board of directors and as
Chairman of the audit committee of PharmaMax Corporation, also based in China.
From 2006 through 2011, Mr. Mei served as CFO of Avineon, Inc., a multinational
technology company located in the U.S., where he managed the Companys global
financial operations in North America, Asia and Europe. Prior to his service
Avineon, Inc., he served as Controller of Arrowhead Global Solutions, Inc. (now
part of Harris Corporation), a U.S.-based global provider of satellite
communications to remote and harsh environments. Mr. Mei has also served as the
Controller of both PICS, Inc. and Thompson Hospitality Corporation, a member of
the Compass Group family of companies, located in the U.S. Mr. Mei received a
B.S. degree in Economics from Zhejiang University in Hangzhou, China and holds
an M.B.A. degree from The Fuqua School of Business at Duke University, where he
graduated with distinction as a Fuqua Scholar. Mr. Mei is a Certified Public
Accountant (CPA) in the State of Maryland, a Certified Management Accountant
(CMA), a Chartered Global Management Accountant (CGMA), and a Certified
Valuation Analyst (CVA).
The
compensation to Mr. Wang for CSO follows the same term pursuant to the
employment contract between the Company and Mr. Wang dated March 20, 2015. Under
that agreement, Mr. Wang shall receive an annual salary in the amount of
RMB1,200,000 (approximately $193,080) and an annual bonus in the amount of at
least RMB300,000 (approximately $48,271) at each year end based on the Company's
results of operations and his performance. The bonus can be in the form of
equity. The employment contract is effective from May 1, 2015 for three years
until April 30, 2018. A copy of the employment agreement was filed under Exhibit
10.16 to the annual report on Form 10-K for the fiscal year ended December 31,
2015 and is hereby incorporated by reference other than the title in the
employment contract.
The
Company and Mr. Mei entered into an employment agreement on November 14, 2016,
pursuant to which Mr. Mei shall receive an annual salary in the amount of
$180,000, an annual living allowance in the amount of $20,000, an aggregate of 10,000
shares of the Companys common stock in four equal quarterly installments of
2,500 shares under the Companys 2008 Omnibus Long-Term Incentive Plan or any
available plan in the future, and an equity incentive at each year end based on
the Company's results of operations and his performance. The employment
agreement is effective from November 14, 2016 for three years until November 13,
2019.
There
is no family relationship between Mr. Wang, Mr. Mei and any of our directors or
executive officers. Neither Mr. Wang nor Mr. Mei has a direct or indirect
material interest in any transaction or arrangement in which the Company is a
participant other than in connection with his employment as described in this
report.
Mr. Wang is currently a member of the Board and
will stand for reelection at the annual meeting of the shareholders to be held
on December 18, 2016 (the Annual Meeting). Mr. Mei has been nominated to be a
member of the Board, pending the election at the Annual Meeting.