Sino-Environment appoints Sam Chong Keen as Exec Director/CEO

Sino-Environment Technology Group Ltd announced Wednesday the appointment of Sam Chong Keen as Executive Director and Chief Executive Officer for two years.

Mr Sam first joined the Sino-Environment Board as a non-Executive Director on 5 January 2010. In the past four years, he had spent two years each restructuring Xpress Holdings Ltd from February 2006 to February 2008, and Jade Technologies Holdings Ltd from April 2008 to January 2010.

After that, he took on a non-executive position as Senior Advisor, President’s Office. He remains as a non-Executive Director on the Boards of both Xpress and Jade.

In line with his past appointments at Xpress and Jade, Mr Sam will be remunerated in equities, drawing a nominal cash salary of S$1 for each year of service. He will be allotted and issued 4 percent (or 14,122,174 new shares) of the enlarged total issued and paid-up share capital of approximately 354 million shares.

"This is a win-win solution: Sino-Environment needs a strong and experienced turnaround specialist to steer the Group out of troubled waters and back to the path of profitability. The fact that he is also willing to accept his unconventional remuneration in the form of equities at a time when we can least afford cash is a boon for the Group. The 4 percent remuneration shares is a small price to pay him to restore value to all shareholders and stakeholders," said Dr Charlie In, Chairman of Sino-Environment.

These remuneration shares will be allotted and issued in four tranches, with the first and second tranches each comprising 3,530,543 remuneration shares, and the third and fourth tranches each comprising 3,530,544 remuneration shares.

The first tranche will be allotted and issued within seven days after obtaining regulatory, shareholders’ and stakeholders’ approvals, and the subsequent two tranches will be allotted and issued at approximately six-monthly intervals, in August 2010 and February 2011.

The fourth and last tranche will be allotted and issued only when the following performance indicators are achieved:

-Successful implementation of any restructuring exercise with regard to the S$149 million convertible bonds due 2013;

-Sino-Environment returns to profitability, with the Group reporting audited net profits after tax for the two combined financial years under Mr Sam’s watch, ie 31 December 2010 (FY2010) and FY2011; and

-The resumption of the trading of Sino-Environment's shares on the SGX-ST for at least 20 consecutive trading days.

Sino-Environment has also provided a safeguard to Mr Sam that the total number of remuneration shares he is entitled to will not be diluted and fall below the agreed 4 percent of Sino-Environment's enlarged total issued and paid-up share capital.

In addition, should Sino-Environment fail to obtain the requisite approvals from the regulatory authorities, shareholders and other stakeholders within three months from the date of Mr Sam's appointment, the Group will compensate him S$100,000 in cash for each month of his service, up to a maximum of S$300,000, unless revised by its Board.

"Being challenge-oriented, I look forward to tackling the issues at Sino-Environment and to deliver results during and at the end of my two-year term. The odds appear to be stacked heavily against the Group but I am confident that the problems are not insurmountable and, over time, they can be resolved one at a time," said Mr Sam.