| 07-05-2008
Wonder Auto Technology, Inc. ("Wonder Auto" or the "Company"), a leading manufacturer of automotive electrical and suspension parts in China, today announced that the board of directors of the Company has adopted the 2008 Equity Incentive Plan (the ''Plan'').
As part of the Plan, the Company's compensation committee has approved the grant of 542,000 stock options to certain of its key employees and directors which will vest over the next 3 years upon achievement of targeted annual pro forma net income of US$22 million for 2008, US$30.8 million for 2009 and US$43.15 million for 2010. One-third of the options will vest each year upon achievement of the respective targeted pro forma net income. As approved by the compensation committee, the targeted pro forma net income equals the after-tax net income as reported in the Company's Annual Report on Form 10-K plus two non-cash expenses, including the stock option expenses resulting from any grant of Award under the 2008 Plan and redemption accretion on convertible notes (if any). The options have an exercise price of US$9.00 per share and will terminate 15 months after the respective vesting date. Approximately 65 Wonder Auto personnel will receive these options with 42.8% of the options allocated for senior management and directors. The remaining options are allocated to a broad range of Wonder Auto's staff.
Subject to the approval by the Company's stockholders at any time within 12 months of this adoption, the Plan authorizes issuance of up to 3.5 million shares and has a term of 10 years unless it is terminated sooner by the board of directors of the Company.
Mr. Qinjie Zhao, Chief Executive Officer of Wonder Auto, commented, ''This incentive plan will inject great enthusiasm into the management team and key employees throughout the Wonder Auto organization to reach our goal of growing pro forma net income by 40% for another 3 consecutive years from 2008 to 2010.''
Editor: Ida Zhang from Chinabuses.com
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