Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 16

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 6
Chunk 16
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2 Incentive Plan, subject to the approval of the Compensation Committee.

The following is a summary of the principal terms
of the 2022 Share Incentive Plan.

Administration

The 2022 Share Incentive Plan
is administered by the Compensation Committee of the board of directors. The 2022 Share Incentive Plan provides the Compensation Committee
with flexibility to design compensatory awards that are responsive to the company’s needs. Subject to the terms of the 2022 Share
Incentive Plan, the Compensation Committee has the discretion to determine the terms of each award.

Amount of Awards

The maximum number of Class
A Shares as to which awards may be granted under the 2022 Share Incentive Plan is 115,489 shares. The 2022 Share Incentive Plan provides
for an automatic share reserve increase feature, whereby the share reserve will be increased automatically on the first day of each
fiscal year beginning with the 2023 fiscal year, in an amount equal to the lesser of (i) a number equal to 5% of the aggregate number
of Class A Shares outstanding on the last day of the immediately preceding fiscal year and (ii) such smaller number of shares
as is determined by the compensation committee. The automatic share reserve feature and any provisions that are or would create a “formula”
plan for purposes of Nasdaq listing requirements will operate only until the ten-year anniversary of the earlier of the initial adoption
of the 2022 Share Incentive Plan by the Board or the approval of the 2022 Share Incentive Plan by our shareholders, and therefore no automatic
share reserve increase will be added after the increase on the first day of our 2032 fiscal year.

Types of Awards

Awards under the 2022 Share
Incentive Plan may be in the form of incentive stock options, non-statutory stock options or restricted stock awards. An option is the
right to purchase the Company’s Class A Shares at a price and on a schedule set by the Compensation Committee. The option price
will be no less than the fair market value of the shares on the option grant date.

Participants

Employees of the Company,
executive officers, non-employee directors and consultants may all be selected by the Compensation Committee to receive awards under the
2022 Share Incentive Plan. The benefits or amounts that may be received by or allocated to participants under the 2022 Share Incentive
Plan will be determined at the discretion of the