Top Education Group Ltd — Remuneration Information 2018

Oct 23, 2018

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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TOP EDUCATION GROUP LTD 澳洲成峰高教集團有限公司

(Registered in New South Wales, Australia with limited liability)

(Stock code: 1752)

ADOPTION OF SHARE AWARD SCHEME

The Board is pleased to announce that on 23 October 2018, the Company adopted the Scheme in which the Employees will be entitled to participate. The specific objectives of the Scheme are (i) to recognise the contributions by certain Employees and to provide them with incentives in order to retain them for the continual operation and development of the Company; and (ii) to attract suitable personnel for further development of the Company.

The Board is pleased to announce that on 23 October 2018, the Company adopted the Scheme in which the Employees will be entitled to participate. A summary of the Scheme Rules is as follows:

OBJECTIVES

The specific objectives of the Scheme are (i) to recognise the contributions by certain Employees and to provide them with incentives in order to retain them for the continual operation and development of the Company; and (ii) to attract suitable personnel for further development of the Company.

DURATION

Subject to any early termination as may be determined by the Board pursuant to the Scheme Rules, the Scheme shall be valid and effective for a term of 10 years commencing on the Adoption Date.

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ADMINISTRATION

The Scheme shall be subject to the administration of the Board, the Committee and the Trustee in accordance with the Scheme Rules and the Trust Deed. The decision of the Board with respect to any matter arising under the Scheme shall be final and binding. The Trustee shall hold the Trust Fund in accordance with the terms of the Trust Deed.

SCHEME LIMIT

The Board shall not make any further award of Awarded Shares which will result in the aggregate number of Shares awarded by the Board under the Scheme exceeding 1.5% of the total number of the issued Shares as at the Adoption Date, being 38,828,220 Shares.

The maximum aggregate number of Shares which may be awarded to any Selected Employee under the Scheme shall not exceed 0.5% of the total number of the issued Shares as at the Adoption Date, being 12,942,740 Shares.

OPERATION OF THE SCHEME

The Board or the Committee may from time to time cause to be paid a Contributed Amount to the Trust by way of settlement or otherwise contributed by the Company or such other person as directed by the Board or the Committee from time to time which shall constitute part of the Trust Fund, for the purchase of Shares and other purposes set out in the Scheme Rules and the Trust Deed.

Subject to the Scheme Rules, the Committee may from time to time instruct the Trustee to purchase Shares on the Stock Exchange (or from such other shareholder(s) of the Company as may be agreed by the Board, subject to compliance with the applicable laws and Listing Rules), and to hold them for the benefit of the Employees under the Trust on and subject to the terms and conditions of the Scheme and the Trust Deed.

AWARD OF THE AWARDED SHARES

Subject to the Scheme Rules, the Board may from time to time at its absolute discretion select any Employee for participation in the Scheme as a Selected Employee, and grant such number of Awarded Shares to any Selected Employee at no consideration and on and subject to such terms and conditions as it may in its absolute discretion determine.

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In determining the number of Awarded Shares to be granted to any Selected Employee, the Board shall take into consideration matters including, but without limitation to:

• (a) the present contribution and expected contribution of the relevant Selected Employee to the financial performance, development and/or regulatory compliance of the Company;

• (b) the general financial condition of the Company;

• (c) the Company’s overall business objectives and future development plan; and (d) any other matter which the Board considers relevant.

The Board is entitled to impose any conditions (including a period of continued service with the Company after the Award) as it deems appropriate in its absolute discretion with respect to the vesting of the Awarded Shares on the Selected Employee, and shall inform such Selected Employee the relevant conditions of the Award and the Awarded Shares.

Where any grant of Awarded Shares is proposed to be made to any Selected Employee who is a Director (including an independent non-executive Director), such grant must first be approved by all the members of the Remuneration Committee, or in the case where the grant is proposed to be made to any member of the Remuneration Committee, by all of the other members of the Remuneration Committee.

Where any grant of Awarded Shares is proposed to be made to any person who is a connected person of the Company within the meaning of the Listing Rules, the Company shall comply with such provisions of the Listing Rules as may be applicable unless otherwise exempted under the Listing Rules.

VESTING OF THE AWARDED SHARES

Subject to the terms and conditions of the Scheme and the fulfilment of all relevant vesting conditions (if any), the respective Awarded Shares shall vest in such Selected Employee in accordance with the vesting schedule (if any) and the Trustee shall cause the relevant number of Shares to be allocated to such Selected Employee on the Vesting Date.

VOTING RIGHTS

The Trustee shall not exercise the voting rights in respect of any Shares held by it under the Trust which have not been vested and allocated to the specific Selected Employee under the Scheme and the Trust Deed.

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TERMINATION

The Scheme shall terminate on the earlier of (i) the tenth anniversary date of the Adoption Date; and (ii) such date of early termination as determined by the Board by a resolution of the Board, provided that such termination shall not materially and adversely affect any subsisting rights of any Selected Employee under the Scheme.

OTHER INFORMATION

The Scheme does not constitute a share option scheme or an arrangement analogous to a share option scheme within the meaning of Chapter 17 of the Listing Rules.

DEFINITIONS

• “Adoption Date” 23 October 2018, being the date on which the Scheme is adopted by the Company

• “Award” an award of the Awarded Shares by the Board to a Selected Employee pursuant to the Scheme Rules

• “Awarded Share(s)” such number of rights awarded by the Board to a Selected Employee to acquire Shares held by the Trust subject to the Scheme Rules, where each Awarded Share represents the right to acquire one Share

• “Board” the board of Directors

• “Business Day” a day (other than Saturday, Sunday or a public holiday in Sydney, Australia and/or Hong Kong) on which the Stock Exchange is open for trading and on which banks are open for business in Sydney, Australia and Hong Kong

• “Committee” the share award committee of the Company, being a sub-committee of the Board delegated with the power and authority to administer the Scheme, comprising Director(s) and/or other officer(s) as may be appointed by the Board from time to time

• “Company” Top Education Group Ltd, a company registered in New South Wales, Australia with limited liability and the issued Shares of which are listed on the Main Board of the Stock Exchange

• “Contributed Amount” cash paid or made available to the Trust by way of settlement or otherwise contributed to the Trust by the Company or such other person as directed by the Board or the Committee from time to time

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“Council”

Top Education Institute Council

“Director(s)” director(s) of the Company

• “Employee” (a) any employee (including without limitation any executive Director) of the Company;

  • (b) any non-executive Director (including independent non-executive Directors);

  • (c) any member of the Council; and

  • (d) any consultant of the Company,

  • excluding any employee who is resident in a place where the award of Awarded Shares and/or the vesting of Awarded Shares pursuant to the terms of the Scheme is not permitted under the laws or regulations of such place or where in the view of the Board or the Committee or the Trustee (as the case may be), compliance with applicable laws or regulations in such place makes it necessary or expedient to exclude such employee

• “Hong Kong” the Hong Kong Special Administrative Region of the People’s Republic of China

• “Listing Rules” The Rules Governing the Listing of Securities on the Stock Exchange

• “Remuneration the remuneration committee of the Company Committee”

• “Scheme” the “Top Education Share Award Scheme” constituted by the Scheme Rules, in its present form or as amended from time to time in accordance with the provisions of the Scheme Rules

• “Scheme Rules” the rules relating to the Scheme as amended from time to time

• “Selected Employee(s)” Employee(s) selected by the Board for participation in the Scheme

• “Share(s)” ordinary shares in the capital of the Company

• “Stock Exchange” The Stock Exchange of Hong Kong Limited

• “Trust” the trust constituted by the Trust Deed

• “Trust Deed” a trust deed dated 23 October 2018 entered into between the Company and the Trustee (as restated, supplemented and amended from time to time)

“Trust Fund” the funds and properties held under the Trust and managed by the Trustee for the benefit of the Employees

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“Trustee”

Pacific Custodians Pty Ltd (ACN 009 682 866) (which is independent of and not connected with the Company) and any additional or replacement trustees, being the trustee or trustees for the time being of the trusts declared in the Trust Deed

“Vesting Date”

in respect of a Selected Employee, the date on which his entitlement to the Awarded Shares is vested in such Selected Employee in accordance with the Scheme Rules

By order of the board of Top Education Group Ltd Minshen Zhu Chairman of the Board

Hong Kong, 23 October 2018

As at the date of this announcement, the executive Directors are Dr. Minshen Zhu and Ms. Sumeng Cao, the non-executive Directors are Mr. Amen Kwai Ping Lee, Mr. Thomas Richard Seymour (Mr. Kai Zhang as his alternate) and Mr. Jing Li, and the independent non-executive Directors are Professor Weiping Wang, Professor Brian James Stoddart, Mr. Tianye Wang and Professor Steven Schwartz .

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